MarketPlace Grill has closed its Fort Smith location, leaving more than 50 people without a job as the company works to actively expand its presence in central Arkansas.

According to Managing Partner Dave Godwin of Restaurant Management Group, the company has worked on an expansion in the central Arkansas market and said the closure of the Fort Smith location was a business decision as a part of the expansion efforts.

"The Fort Smith market has been good to us, but we had an opportunity in Little Rock," he said. "Everything lined up for us that it was in the best interest of the company for us to make the move. I can't really point to one specific thing necessarily. I'm not sure what to tell you there but that as a company, we're trying to grow and we had the opportunity to open in Little Rock to open the store. Things lined up in such a way that as a business, it was in our best interest to make the move."

Godwin noted that the closure of the Fort Smith location, open since 1995 at 8302 Phoenix Ave., had nothing to do with declining sales or patronage, declining to cite sales figures for the Fort Smith restaurant.

He said total employees at the Fort Smith location was "probably in the neighborhood of 50 or 60." Asked whether severance packages or employment at other MarketPlace locations were offered to Fort Smith employees, he said, "It's really kind of a mixed bag. Kind of all of the above." Godwin did not go into specifics regarding offers made to employees.

MarketPlace's new Little Rock location is 11600 Pleasant Ridge Road, with an opening planned for the early fall, Godwin said. He said the company was looking to add another two locations in addition to the new Little Rock locale.

The company still owns and operates MarketPlace Grills in Conway and Springdale, as well as a MarketPlace express at the Northwest Arkansas Mall in Fayetteville. Godwin said the company was also looking to re-open Burger Life, a concept restaurant that had originally replaced MarketPlace at its former location on Joyce Boulevard in Fayetteville. He said lease negotiations were ongoing on a new location in Fayetteville.

The now-vacant building that had housed MarketPlace's Fort Smith location has been put up for sale by its owner Benefit Bank. In a statement, Benefit Bank President Joe Edwards said the company had decided against pursuing further leasing of the 8,216 square foot building.

"The property will not be leased again but is listed with Mr. Bob Cooper of R.H. Gahn & Cooper Commercial Properties for sale as a development property," he said, adding that the bank "appreciates the relationship with MarketPlace over the years and wishes them the best as they move to the Little Rock market."

Cooper said the property is listed for a purchase price of $1.475 million, which includes the building and 1.4 acres. Traffic counts along Phoenix Avenue in front of the restaurant total 18,000 vehicles per day, while Massard Road sees a 26,000 vehicles per day pass the restaurant.

Wal-Mart store manager Sherry Curtis-Swenson is putting the finishing touches on worker schedules, overseeing the store stocking and making sure the region’s newest Walmart Supercenter in Springdale runs without a hitch when the doors swing open Aug. 13.

This is not Curtis-Swenson’s first time around the block when it comes to overseeing a new store opening. In 2005 she opened the Walmart Supercenter in Jane, Mo., which was her first time as a store manager. She was recently transferred to the new Springdale store after applying for the position several months ago.

“I love opening a store from the ground floor. You get to handpick your store personnel, build your own team of managers and literally have your hands in every aspect of store operations. It’s a wild rush of excitement but a very rewarding experience,” Curtis-Swenson told The City Wire in a recent interview.

STORE STAFFING
At roughly 189,000 square feet, the big box supercenter will employ more 300 workers, including 70 people who transferred from other area stores – like her personnel manager who first hired Curtis-Swenson 21 years ago as an hourly cashier.

She said the 70 transferring workers opened up positions in other area stores, some supervisory.

“We have about 40 supervisor positions, mostly hourly with around 15 salary. ... We skewed a little higher on managers because I wanted to make sure there was adequate operational experience which makes for smooth openings and efficient day-to-day business,” she said.

The employees with limited experience trained in area stores over the past two months to get them ready for opening day.

“I like to see the new hires train in a store because that is real hands-on experience,” Curtis-Swenson said.

STOCKING THE STORE
To date, Curtis-Swenson said the store received between 40 and 50 truckloads of merchandise which is still being set up in the supercenter.

“It takes about 5.5 weeks to set up a store before opening. Aside from Coca Cola and Pepsi, who bring in and set up their own displays, my associates will stock the vast majority of the store. Wal-Mart builds all the modular displays as we stock them from unloading the trucks to stacking up the shelves,” Curtis-Swenson said.

She said her young apparel team has limited merchandising experience and relied heavily on Jeannette Harris from the home office to help set up that department. But typically, store workers roll-in the merchandise from the back room and set up the displays on their own.

WHAT’S NEW?
The new supercenter is Springdale is the retail giant’s latest model and at 189,000 square feet, there is a smaller back room and not as much floor space in the rear section of the store or vendor space at the front of the store.

The Springdale store does have a Razorback Souvenir Shop configured in the center of the large supercenter format. It’s a shop within store concept that Curtis-Swenson is proud to have as part of the store.

There is vendor space for a Regal Nails and a hair salon and some restaurant – yet-to-be named – in the front of the store. The fuel center located on the east side of the store parking lot will include a 1,450 square-foot walk-in mini-convenience store. 

“I am excited about the mini-convenience store. It will stock drinks, milk, bread and those convenience items people often need to pick up without a full grocery purchase. It’s not a big as the Walmart to Go in Bentonville, but it will have adequate convenience items,” Curtis-Swenson said.

Arvest Bank and McDonald’s, which usually lease space in Wal-Mart supercenters in the area, have opted to build stand alone facilities adjacent to the Walmart fueling station.

STORE PROFITS
While the retail giant continues to push smaller and alternative pick-up formats for its growing online business, the supercenter remains the cash cow and the vast majority of its 4,200 U.S. stores.

Insiders estimate the average supercenter rings up annual sales of $125 million. From that store managers can earn between $125,000 and $250,000 per year in salary. Each store also receives annual bonus pay based on performance goals, which is shared among eligible workers.

Wal-Mart said in the last year alone it promoted more than 190,000 people at Walmart U.S. and Sam’s Club and paid more than $500 million in bonuses to hourly workers.

Curtis-Swenson is excited about the profit prospects of the new store in Springdale, but she knows firsthand what it takes to run this large business day-in and day-out. 

“Serving the people’s needs and promoting my team are best part of this challenging job,” she said.

In discussions about a two mil increase in property taxes to benefit the Fort Smith Public Library, much attention has been paid to the impact a tax increase could have on homeowners. But property tax records indicate that businesses operating in Fort Smith could be on the hook for a large portion of the estimated $2.8 million raised through the tax increase.

Early voting on the library tax begins Tuesday (Aug. 5) and continues weekdays through Monday (Aug. 11) in room G-8 of the Sebastian County Courthouse in Fort Smith.

Voters casting ballots in the special election on Aug. 12 will vote in one of four polling sites:
• Ward 1: Creekmore Park;
• Ward 2: Windsor Drive Library;
• Ward 3: Southside Senior Center; and
• Ward 4: East Side Baptist Church.

BUSINESS IMPACT
Property tax figures and projections based on assessed property values were provided to The City Wire by the Sebastian County Assessor's office. They indicate that the top 22 line items would make up 12% of the increase in taxes if the millage rate supporting the library increases from one mil to two mils.

It should be noted that the line items may not include all parcels or business personal property owned by the companies listed in the report. For example, Baldor Electric Company confirmed that property tax information listed in the report included only one parcel from its 2013 tax bill while excluding other parcels owned by the company.

The top company listed in the report is Fort Smith HMA LLC, with a value of $17.841 million. At the current one mil rate, HMA's property tax benefitting the library would only stand at $17,841. If the millage increase passes Aug. 12, the company's tax obligation for increases to $53,523, a difference of $35,682.

Nearly tied for the same increase is Gerber Products Company, which would see its taxes on an assessed value of $16.79 million increase from $16,790 per year to $50,370, an increase of $33,580.

Third on the list are seven properties owned by Wal-Mart, including the Sam's Club location on Rogers Avenue. The total combined assessed value of the properties stands at $14.213 million with a tax obligation on one mil of $14,213. If the millage for the library passes, the total Wal-Mart would owe in taxes increases to $42,640, a difference of $28,427.

For just the three businesses listed as having the largest tax obligation, the increase combined would equal $97,689. The figure for the three is 3.48% of the $2.8 million library Executive Director Jennifer Goodson has said would be raised annually by tripling the millage rate. Just the 22 line item payments provided by the Assessor’s office would account for 12% – $336,170 – of the total, an indication of how much of the property tax bill is paid by business operations with property and certain fixed assets in Fort Smith. Businesses on the list also include Gerber, O.K. Foods, Golden Living, Sparks Health System, Mercy-Fort Smith, Mars Petcare and ArcBest Corp.

‘A UNIVERSAL THING’
Asked before a town hall event Monday evening (Aug. 4) touting the library's proposed tax increase for reaction to the impact a millage increase could have on businesses, Goodson said she "was not equipped to comment on that." Asked whether the library's board of trustees had considered the impact a tax increase could have on businesses in addition to residences, Goodson said, "We knew that the business community would be impacted."

"We're just talking about the future of the community. That's what our focus is. And so if a business and/or individuals believe that this plan is something that is good for the future of Fort Smith, then they make that decision. We don't make a distinction about business perspective versus individuals, people who have a lot of money or people who have a little money. The library is a universal thing in our community, so we've been targeting a variety of folks not a particular segment in everything we've done."

In presentations to the public, Goodson has said the tax impact on a $100,000 home would amount to about $5 per month, or $60 per year, in total taxes paid to the benefit of the library. Goodson confirmed Monday that the taxes would also go up on personal property, such as cars and boats. Information from the Assessor’s office indicates the average tax bill in Fort Smith will rise $72.86 if the millage increase is approved.

NOT A SHARED VISION
Goodson's remarks regarding the fiscal impact a tax increase would have on the city's biggest taxpayers came before a town hall meeting of about 25 individuals which saw most residents who chose to speak voicing opposition to the millage increase. Resident Jay Wiechert was among those who spoke out against the increase.

"We have one mil. You're wanting three mils. That's greed. Shame on you. Shame on you. How can you go from one mil to three mils and keep a straight face?"

Goodson referred to her presentation of nearly an hour Monday night, interviews and information available online as proof that the library board had a plan for the money should voters approve the tax hike.

"And if that is not your vision for the library and its impact in the community, then I certainly respect that. But it is the vision of the board, staff and a number of our stakeholders,” Goodson explained.

HISTORICAL COSTS
Fort Smith resident Jerry Fleming also spoke and had presented town hall attendees calculations, which showed the library had increased its receipt of tax proceeds by 6,397.22% since 1958. The library's one mil property tax rate was passed in 1957. Fowler's chart — formed using data provided to him by the library and presented to attendees Monday — shows the library collected $36,000 from one mil in property taxes in 1958. The total is estimated to be $1.413 million from the one mil in 2014.

The total increase in operating budget included 6% provided to the library from the city's 1% of the county sales tax proceeds. The distribution to the library began in 1995 with $596,000 and is expected to increase to an estimated total of $926,000 this year.

The total from both taxes are estimated to ring in at $2.339 million this year, or 64 times more revenue generated in 2014 than 1958, according to Fowler.

Goodson responded by noting that inflation had increased from the 1950s to present day, noting the rise in the price of an automobile which she said was priced at $2,700 in the 1950s. She also said the library provides more services than in 1958 and has four branches, versus one when the current millage rate was approved by voters. Goodson's response did not persuade Fowler, who said he was not opposed to all proposals included in the library's plan but said the proposed increase was simply too much.

"If you multiply that (the quoted price of a car in 1958) times 64, a car today would be $172,800. A house, $20,000 times 64 is $1.28 million. Bacon, 39 cents a pound in 1958 times 64, we'd be paying $25 for bacon. The only thing that got a 64 times increase that I can find is the library. Now I really don't think that's material. I've said that all along. I just wish you'd stop that being your major theme and that is your major theme."

Resident Don Dickey said the proposed spending plan Goodson and the trustee board have formed for the first year the tax revenues are available (2016) does not address future ongoing budgets, noting that as a business owner he must present business projects and budgets with projections for five years out before he can get a loan from a bank.

Goodson called the proposed budget "a flexible document, not a rulebook. We've got a good first year, but we need to see what we learn and what we experience between now and 2017."

Fowler compared Goodson's response to that of former House Speaker Nancy Pelosi, who famously said of the Affordable Care Act in 2010 before it was voted on in the House: "(W)e have to pass the bill so that you can find out what is in it, away from the fog of the controversy."

Consumers across Arkansas see favorable spending conditions in the short-term but when asked about future economic conditions the survey respondents expect leaner times for business conditions and personal finances beyond a year from now. 

Arkansas consumers are also more cautious than those surveyed in Oklahoma and Missouri. These results are part of the Consumer Sentiment Index first released in July by Arvest Bank. The second installment of the survey data was released Tuesday (Aug. 5). 

The survey of 1,200 consumer households conducted by the Universities of Arkansas, Missouri and Oklahoma found that a majority in the three-state region expect their personal financial situations to improve or remain the same within the next year. They are less optimistic about future business conditions.

Arkansas respondents ranked the lowest among the three states with regard to buying conditions, but 42% said now is a better time for spending than later. That compared to 46% of respondents in Missouri and 49% of those surveyed in Oklahoma.

About one in three respondents in the total survey said now is a bad time for spending, Arkansas had the highest percentage in this category at 37%.

When asked to assess the buying conditions in the next six months the respondents were somewhat optimistic, though Arkansas ranked slightly less so than the other two states. The Current Conditions Index based on that question found the regional rating at 78.7. Arkansas has a reading of 74.7, below Missouri (77.6) and Oklahoma (82.2).

In the three-state region, 51% of consumers expect their personal financial situation to remain the same over the next 12 months, while 27% expect it to be better over the same period. Only 22% expect their personal financial situation to be worse than it is currently. 

By comparison, 28% of consumers in Arkansas expect their personal financial situation to improve and 52% expect it to be the same. 

In Missouri, only 19% of consumers expect their situation to improve and 53% expect it to remain the same. 

In Oklahoma, 34% of consumers expect their situation to improve and 48% expect it to remain the same.

When looking at expectations of business conditions, only 29% of consumers in the region expect business conditions to be favorable in the next year. That includes 30% of consumers in Missouri, 32% in Oklahoma and 22% in Arkansas. 

This trend continued when looking at expectations over the next five years, with 37% percent of the regions’ consumers expecting positive business conditions. That includes 36% in Missouri, 41% in Oklahoma and 33% in Arkansas. 

This is also reflected in the regions’ expectations of widespread unemployment over the next five years, with 56% expecting widespread unemployment. That includes 57% in Missouri, 53% in Oklahoma and 61% in Arkansas.

Arkansas has seen the nation’s steepest reduction in its percentage of uninsured residents, noted a Gallup report released Tuesday (Aug. 5).

The report, based on telephone interviews with 88,678 respondents nationwide, found that the uninsured rate in Arkansas dropped from 22.5% in 2013 to 12.4% in 2014.

Almost half of Arkansans who were not insured in 2013 are now insured, according to the survey. Respondents in the telephone poll were asked, “Do you have health insurance coverage?”

Arkansas’ insured rate in 2013 ranked it next to last nationally, just ahead of Texas. Now it is 22nd along with New Hampshire. Delaware has the lowest at 3.3%. Texas is still last at 24%.

After Arkansas, the next biggest drop is in Kentucky, whose uninsured rate has fallen 8.5% from 20.4% to 11.9%. The top 10 states all expanded Medicaid coverage as part of the Affordable Care Act, also known as Obamacare. The rest of the top 10, in order, are Delaware, Washington, Colorado, West Virginia, Oregon, California, New Mexico and Connecticut.

Nationally, the uninsured rate has declined from 17.3% in 2013 to 13.4% in the second quarter of 2014. It was 14.8% in 2008.

In a phone interview, Gov. Mike Beebe said, “The overwhelming reason for the change is the Private Option.”

The Private Option is the program passed in 2013 that uses Medicaid dollars under Obamacare to buy private insurance for lower-income Arkansans. As of June 30, 176,691 Arkansans have been insured because of the private option. Of that number, 19,508 were assigned to traditional Medicaid because they were judged to be medically frail.

The program must be funded by a three-fourths vote of the state Legislature every year. Earlier this year, it passed with no votes to spare in the Senate and only after significant legislative wrangling.

Beebe said the drop in the uninsured is another point in the Private Option’s favor as legislators again will consider its survival starting in January. Without those federal dollars, he said, the Legislature would not have been able to enact the tax cuts it has enacted, and hospitals would have have lost more money providing uncompensated care.

“There are lots of reasons, some budgetary, some humanitarian, some political, but there are a lot of reasons why it would be very, very difficult to undo the Private Option,” he said.

Sen. David Sanders, R-Little Rock, one of the Private Option’s legislative architects, said the decrease in uninsured Arkansans is a success, but is only one of the program’s points of emphasis.

“I think the Private Option will rise and fall on the strength of the policy,” he said. Later, he said, “Essentially the question is, you know, does the policy work? So it’s one thing to cover; it’s another thing to do it in the most successful manner and achieve the goals that we set out.”

The values of building permits in Fort Smith, Greenwood and Van Buren were a combined $20.975 million in July, up nearly $6.46 million from July 2013 when the combined cities issued $14.515 million in permits.

The increase in values represents a 44.51% increase compared to July 2013.

Building permit values for the first seven months of the year are up 10.23% over the same period last year, with $117.96 million in permits issued this year versus $107.017 million issued from January to July of last year. When compared to the first seven months of 2012, this year's year to date total is an increase of 55.98% over that year's $75.627 million total.

FORT SMITH
Last month, the city of Fort Smith issued a total of 185 permits with a total value of $19.539 million. Compared to July 2013, the city's permit values increased 41.38% from a total of $13.82 million last year.

When compared with permit values from July 2012 of $6.996 million, Fort Smith's building permits are up 179.23%.

Pushing Fort Smith's total values higher for the month was a $9.764 million building permit issued for the Ben Geren Aquatics Center at 7300 South Zero Street. The project, jointly funded by the city of Fort Smith and Sebastian County, is expected to be complete and open to the public by Memorial Day 2015.

The aquatics center project accounted for 65.69% of the city's $14.862 million in commercial building projects permitted during the month of July.

The city also issued 123 residential building permits valued at $4.216 million, with 12 new construction projects accounting for $3.098 million of the total, or 73.47%.

GREENWOOD
Seven building permits were issued in the city of Greenwood last month with a total value of $876,725. The figure for July represents a 249.29% increase from July 2013's total of $251,000 on five permits.

Of the permits issued, four were residential permits valued at $837,385, or 95.51% of the total permits issued.

VAN BUREN
Van Buren saw 40 permits issued with a total valuation of $559,100, an increase of 25.95% over July 2013's total of $443,920 on 28 permits.

A commercial addition valued at $330,000 at 1300 Scott Street accounted for 59.02% of Van Buren's July building permits.

2013 RECAP
Combined values in the three cities during 2013 were $203.037 million, compared to $157.32 million during 2012. The 2013 value is above the $201.079 million in 2011.

Fort Smith closed 2013 with the largest share of valuations, logging $177.687 million (a one-year increase of about 30.24% from $136.428 million in 2012), while Van Buren was the next largest with $17.067 million (a one-year increase of 38.96% from $12.282 million in 2012). Greenwood posted an additional $8.283 million, the only city to show a decrease from the previous year's total of $8.609 million (a decrease of 3.79%).

The gains in the Fort Smith market were largely from industrial construction projects at Chaffee Crossing, the construction of Mercy's new orthopedic hospital along Phoenix Avenue and various municipal construction projects across the city.

Whirlpool has proposed additionally monitoring and testing of water and soil samples at sites near its now-shuttered manufacturing facility in south Fort Smith following detection of trichloroethylene (TCE) in the area.

According to a supplemental work plan submitted to the Arkansas Department of Environmental Quality on Monday (Aug. 4), the company's environmental consultants told ADEQ that the additional test and samples were necessary near the northeast corner of its closed factory after "three of the five new groundwater monitoring wells installed at the northeast corner in late June" detected the TCE.

The new sites were installed on July 8 and Principal Michael Ellis of ENVIRON, Whirlpool's consultants, told ADEQ that no TCE was detected in soil samples at the time of installation.

"Significantly lower” levels of TCE were measured in groundwater at the northeast corner than at other locations, including the facility's northwest corner and Whirlpool's property boundaries, Ellis said.

"In order to determine if remediation activities are warranted, further investigation is required to verify whether TCE detected in the groundwater has migrated under Jenny Lind Road and if so, whether this groundwater has also migrated under the undeveloped property owned by the Boys & Girls Club that will soon be separated from the club by the upcoming Ingersoll Avenue Road expansion," he wrote.

Ellis proposed soil probes to collect soil and groundwater samples in the areas beyond Whirlpool's property lines.

"Based on the results of this first phase of testing, permanent groundwater monitoring wells would be installed, if appropriate," he added. "If remediation activities are warranted, plans will be prepared for ADEQ review and approval to aggressively and swiftly address this contamination as appropriate based on the data from this investigation. … Based on existing data and the easterly groundwater flow direction in this area, there is currently no indication of impacts to other properties adjacent to the northeast corner of the Whirlpool property - other than those where we are proposing to conduct this additional investigation."

Additionally testing will also be conducted at the Whirlpool site, Ellis said, "out (of) an abundance of caution" in order to determine whether there could be any additional TCE migrating from the company's property.

"Once these plans are finalized, we will submit additional work plans to ADEQ for any necessary approvals before commencing these activities," he wrote.

The additional testing will start this week "following the completion of access agreements with the two property owners (City of Ft. Smith and Boys & Girls Club) where the proposed sampling will take place," Ellis said, with initial probes taking one week to complete.

In a statement, Whirlpool Vice President Jeff Noel said the company was committed to being a "responsible corporate citizen of Fort Smith and to managing this issue in an open and responsible matter."

"Sampling data from the new wells near the northeast corner of the Whirlpool manufacturing facility detected no soil contamination, and there remains no health risk to residents. Because of the interest in the ongoing remediation work from Fort Smith residents and City Directors, we are accelerating the supplemental investigation to define the impact of the TCE detected in the groundwater in some of the new wells in the northeast corner of our property, and we plan to complete the sampling, validation and analysis by early September.

"If additional remediation activities are necessary, plans will be prepared for ADEQ’s review and approval to aggressively and swiftly address this contamination as appropriate based on the data from this investigation. While we are still in the process of gathering the facts, Whirlpool is sharing this information now because of our commitment to transparency."

Retail giant Wal-Mart Stores has plenty of publicity-generating irons in the fire from onshoring manufacturing jobs, hiring veterans and sustainability pushes. But one initiative that often goes underreported is the retailer’s economic empowerment of women program — an effort announced in 2011 by then-CEO Mike Duke.

In 2011, Wal-Mart pledged to source $20 billion from women-owned businesses for its U.S. segment by the end of 2016.

MiKaela Wardlaw Lemmon, senior director for women economic empowerment at Wal-Mart, told The City Wire that the retailer remains focused on leveraging its size and scale to empower women across its global supply chain. Lemmon said over the past two years the retailer has developed a comprehensive women-owned business sourcing strategy and sets annual goals with respect to the $20 billion in purchasing power.

“We met the annual goals in the first two years and our spending since then is $400 million ahead of our goal. We are actively working toward growing our women-owned supplier base,” Lemmon said.

Wal-Mart has roughly 1,000 suppliers who made their way on to the retailer’s shelves through the women-owned business initiative.

Women-owned businesses contribute over $1.3 trillion dollars to the U.S. economy and women are responsible for over 80% of the consumer decisions globally.

MEET MAGGIE
Maggie Cook, founder of Maggie’s Salsa, said working with Wal-Mart through the empowering women’s initiative is a great opportunity for her to grow the small business she founded after immigrating to the U.S.

“Women-owned businesses have so much to offer and research shows that women shoppers often gravitate toward the products from woman-owned businesses,” Cook told The City Wire.

Cook, whose full name is Maria Magdalena De La Cruz Cook-Garcia, was born in a Mexican orphanage. Her parents cared for 200 children through the years, legally adopted 60 children and had eight biological children of their own.

By chance she caught the eye of college basketball scouts when her family visited the U.S. on a fundraising mission for their charity organization. Cook dreamed of playing basketball for the Mexican National Team, but that did not happen. Her luck changed when she joined a pick-up game while her family was visiting in West Virginia. The University of Charleston’s (West Virginia) basketball coach saw her play and offered a scholarship.

Cook graduated with a degree in interior design and in 2004 she started Maggie’s Salsa after winning a local salsa contest by unanimous vote. She got the company off the ground with $800 in seed money from a friend and made her first store sale using 6 tomatoes. In 2007, Whole Foods placed an order that required 60,000 tomatoes and she has never looked back.

Dan Irwin, a category director for product at Walmart U.S., said when he tasted Maggie’s Salsa he knew quality and freshness was important and that it would be a great product for Wal-Mart. 

Cook employs 18 people in her small company and outsources the production and distribution to another salsa manufacturer who follows her ingredient requirements.

“Our sales are growing with Wal-Mart and Sam’s as we are in the mid-Atlantic region there. In addition we are in Whole Foods and Kroger,” Cook said.

WOMAN-OWNED 
In July, Wal-Mart was the first retailer to announce its commitment to the Women's Business Enterprise National Council (WBENC) efforts to bring forth a new logo label identifying goods as produced by women-owned businesses.

“At Wal-Mart we are committed to empowering women and impacting women-owned businesses from around the world — and so are our customers. We recently conducted a survey that found 90% of female customers in the U.S. would go out of their way to purchase products from women, believing they would offer higher quality,” Lemmon said.

Wal-Mart’s role in the process was to collaborate on the logo design and conduct the supporting research. The retailer said consumers will begin seeing the new logo on its shelves in September. 

Cook said she plans to use the new woman-owned business labels that will help more consumers know the Maggie’s Salsa is a woman-owned enterprise.

GIRL POWER
Wal-Mart said the majority of its 245 million customers per week are women, and women control more than $20 trillion of annual consumer spending globally. With nearly 1 billion women estimated to enter the global economy during the coming decade, 

Wal-Mart said it’s taking the lead in sourcing from and providing access to markets for those women because it promotes economic growth and better lives for their families.

In 2012, Wal-Mart estimated 224 million women were starting or running businesses in 67 countries around the world. Many of these women are planning for significant business growth; however, substantial barriers challenge female entrepreneurs who hope to grow their businesses. For example, although 29% of U.S. businesses are women-owned, enterprises owned by men are more than three times as likely to reach $1 million in annual revenue. 

“We work to address barriers and help women-owned businesses and our merchants work more effectively together,” Wal-Mart said.

PROGRAM TOOLS
Lemmon also notes that a key to the program success has been the Women-Owned Business Advisory Council (WOBAC) made up of internal advisors, industry leaders, merchants and suppliers. Through conversations with industry leaders, our merchants and suppliers, the retailer identified challenges facing woman-owned businesses and, along with supplier diversity and supplier administration, they implemented a variety of tools and resources to address them.

Wal-Mart developed scorecards to ensure their merchants and other leaders have more visibility into the woman-owned suppliers they work with and how each area of the business is tracking against its target. 

In 2013, Wal-Mart conducted two types of supplier summits. The first allowed teams to discuss strategic business growth opportunities with women suppliers. The second focused on finding new suppliers. Wal-Mart and Sam’s Club held 10 summits last year to help grow existing or identify new suppliers, Lemmon said.

Wal-Mart launched the Supplier Academy in November 2013, which is a set of online educational modules designed to prepare “merchant-ready” suppliers and buyers to work with them. 

Modules such as “Keys to a Successful Buyer Presentation” and “Working with Small and Diverse Suppliers” are aimed at developing strong working relationships and set both sides up for success, the retailer notes.

The Fort Smith Board of Directors passed an ordinance at its Tuesday (Aug. 5) meeting that would restrict the location of temporary signs in rights of ways, a decision the Fort Smith Board of Realtors said could impact its business.

The ordinance limits the placement of temporary signs, such as yard sale or for sale signs to 10 feet back from the street if no sidewalk is present or on the opposite side of the sidewalk from the street if a paved sidewalk is present. The Board had previously expressed concerns about signs advertising credit repair and rent to own properties cluttering public right of ways.

A July 22 study session of the Board of Directors directed City Attorney Jerry Canfield and Development Services Director Wally Bailey to research whether the Board could pass an ordinance that would limit the sign restrictions to just certain corridors without restricting neighborhoods. Bailey said an ordinance could be drafted to that standard if the Board directed.

The Board did not direct city staff to change the ordinance, but instead continued discussion on the current ordinance. Bailey told the Board that the ordinance up for a vote Tuesday would allow for weekend posting of signs in right of ways for special events, such as open houses and yard sales as long as the individual posting the sign had permission from the landowner.

Robin Mulac, president of the Fort Smith Board of Realtors, said the organization had concerns about the ordinance before its passage Tuesday. In her remarks, she told the Board of Directors it could negatively impact Realtors and clients.

"We are big proponents of single family home ownership and one of the most basic rights of home ownership is the right to sell. And we're a little apprehensive about anything that might limit that, telling us where we can put signs in people's yards. That's a little bit of a concern that's on our minds."

She said with the setback of 10 feet from the road, some homeowners may decide to move the sign legally placed by the realtor and may then be in violation of the ordinance. She said landscapers and others doing work on properties may also remove the signs and may return the sign to an improper location according to the new ordinance.

Mulac said the Board of Realtors was also concerned about how limiting sign placement could negatively impact not only new home sales, but also the various businesses associated with home purchases who could be negatively impacted by even a small drop in home sales.

City Director Pam Weber, who is a Realtor, said the she thought the ordinance was about beautification of the city and would not negatively impact the ability of realtors to sell homes in the area.

"We need to do something to get rid of the visual clutter in our town and make our town look better," she said.

Weber added that "the better we look, the better we'll do economically." The ordinance passed Monday, she said, was an effort to further beautification efforts and improve the local economy, as well.

The measure was approved by a 6-1 vote, with Director Kevin Settle opposed.

In other business, the Board passed a rezoning of 11701 Custer Boulevard, 7201 Fort Chaffee Boulevard and 12201 Roberts Boulevard in Chaffee Crossing from not zoned to a planned zoning district. The area includes the new River Valley Sports Complex, which is now under construction as the U.S. Army Reserve has commenced dirt work at the site.

Another rezoning was approved at 8801 Wells Lake Road, from not zoned to light commercial. The location will house a second Red Rooster Bistro location at Chaffee Crossing.

The Board also passed state-mandated updates to construction codes and passed approved a resolution to authorize Mayor Sandy Sanders to execute an additional 10-year franchise agreement with Newroads Telecom for a non-exclusive wholesale fiber optics network.

Arkansas Senate Republicans on Tuesday elected by acclamation Sen. JIm Hendren, R-Gravette, as Senate majority leader and Sen. Jimmy Hickey, R-Texarkana, as majority whip.

The 22-member caucus met last week to determine the process, gave members a week to select nominees, and when the nominations closed Monday night, elected the two senators electronically.

Hendren said Tuesday he and Hickey will start preparing for the upcoming session immediately. Unlike two years ago, Senate Republicans will enter the session confident of a majority. Sen. Jonathan Dismang, R-Beebe, has already been elected the incoming president pro tempore. Top issues will include tort and regulatory reform, economic competitiveness, the state lottery, and expanding broadband access for public schools.

“I have found that it is almost impossible to do a thorough job of developing complicated legislation in the midst of a session. It has to be done in advance,” Hendren said.

Hendren will lead a caucus deeply divided over the so-called Private Option, the state program that uses Medicaid dollars through the Affordable Care Act to buy private insurance for lower-income Arkansans. Hendren has been an opponent of the program, Hickey a supporter.

The Gallup organization released a poll Tuesday that found that Arkansas has seen the largest reduction in uninsured residents in the country. The rate dropped from 22.5% in 2013 to 12.4% in 2014. As of June 30, 176,691 Arkansans have been insured through the Private Option. Of that number, 19,508 were assigned to traditional Medicaid because they were judged to be medically frail.

Hendren said the news did not change his opinion that the program is financially unsustainable. However, he said opponents must consider the large number of Arkansans who now have health insurance because of it.

“We have this program, and I’m one who believes you’ve got to be fair with people,” he said. “So anything that’s done, we have to take into account the fact that we’ve got a lot of people in Arkansas who are playing by the rules and who are working hard, and to just yank that away from them without any consideration is not something that I think is the right thing to do. So we’re going to have to look at how we can find some middle ground, or find some sort of process that gets us to a program that’s more sustainable.”

Senate Republicans will try to craft a compromise or at least just take a vote and get past it, Hendren said. He said his goal will be to “not let that define us as a caucus.”

“We’re not going to let those differences and those different groups that we come from prevent us from being effective as a caucus,” he said. “We’re just not going to let that happen.”

A sales tax increase rejected by Missouri voters has pushed that state’s highway officials back to square one in terms of finding money to complete the portion of Interstate 49 that would connect to the Bella Vista Bypass at the Arkansas-Missouri border.

The about five-mile stretch is the remaining portion between Kansas City and the I-49-I-40 interchange near Alma without secure funding.

Missouri voters rejected an increase in the state’s sale tax to pay for highways, roads and bridges. The proposed amendment was defeated 59% to 41%, according to the Missouri Secretary of State’s office. The constitutional amendment would have been a three-quarters of one percent increase to the state’s 4.225% sales tax and would have included banned tolling on state highways and prevented an increase in the state’s tax on gasoline and other motor fuels.

Had the Missouri tax passed, the state projected $4.8 billion in revenue over 10 years that would have covered 800 road projects which were identified by state transportation officials. Missouri followed the lead of Arkansas who passed a half-cent sales tax last year to pay for its part of the bypass with a $150 million price tag.

Arkansas completed its portion of the 19-mile Bella Vista Bypass and stopped just south of the state line, waiting for Missouri to come up $50.4 million needed to complete five miles of the highway to connect Bentonville to Pineville, Mo.

Arkansas officials remain hopeful that Missouri will find the money to complete its portion of the road, but until then the full benefit of Arkansas’ $150 million investment cannot be realized.

Randy Ort, a spokesman for the Arkansas Highway & Transportation Department, said the section will be built, but now the question is, “When?”

“It certainly throws uncertainty into the timing of it. Had the initiative passed, we would have anxiously awaited an announcement from Missouri on the timing. Now that the initiative has failed, we anxiously await an announcement from Missouri on the timing,” Ort said.

Becky Baltz, district engineer for the southwest region of the Missouri Department of Transportation, said the five-mile segment is in limbo until other revenue can be found.

“Without the additional funding we’re not going to be able to complete that project,” Baltz told The City Wire.

Baltz said the section could be built within two years if funding were available.

The Northwest Arkansas Council, one of the leading advocates for completion of I-49 through the Arkansas-Missouri border, issued this statement about Missouri voter rejection of the highway funding plan: “We appreciate that Missouri lawmakers put the sales tax issue to a vote this week. Our organization has communicated with Missouri about the Bella Vista Bypass many times, even as recently as this summer, and we know Arkansas and Missouri are committed to finishing the bypass.

“The bypass has a huge long-term economic importance in both of our states and that’s why we definitely need to work together to get the bypass off our states’ to-do lists.”

Two decades long Alma residents have filed to be the city's next mayor following news that long-time Mayor John Ballentine would not seek re-election. The candidates, retired businessman Keith Greene and former Rep. Ed Thicksten, have both filed to appear on the November ballot.

Both men have said jobs and the completion of Interstate 49 through Alma would be their focus if elected mayor of the city of 5,400.

"For many years, Crawford and Sebastian Counties were considered part of Northwest Arkansas when it was convenient, " Greene said in a statement. "When (I-49) was completed that ended any dispute. It placed Alma in a most unique situation. It ascertained that growth would come. Few cities of Alma's size enjoy that benefit. As the next Mayor, my challenge will be to harness that growth and prepare the city to handle the demands as needed."

Thicksten, who served in the Arkansas House of Representatives from 1975 to 1999, also spoke of the interstate's importance to the community and said his past experience with funding the construction would put him in position to advocate for completion of the next stretch of the interstate from Alma to Barling, where a section of what will eventually be I-49 is scheduled to open in the fall.

"When I was in the legislature, I was one of the chief sponsors of the (legislation that guaranteed) the state paid its share of what was then I-540 and what is now I-49. I have a long history with the highway. In fact, I was involved in the legislation in the House to name it after (former U.S. Rep.) John Paul Hammerschmidt," he said. "I am in charge of the Build the Bridge Coalition. And I am very involved in the work to get the remaining 12, 13 miles of what we have in Alma to bring it on south to connect to the section to be dedicated later this fall in Barling."

Greene and Thicksten agree that completion of the road will bring job growth to the city and both have said the Alma Public Schools were a factor in individuals deciding to settle in the community, with Thicksten going so far as to call it the "best school system in Arkansas."

Thicksten said the city must have more than a good school system to continue growing and that is where a combination of public and private partnerships, along with state and federal grants, could allow the city to possibly develop an industrial or technology park to fuel further growth and attract more families.

"We need to do more as a city. We can have great education, but if we don't have jobs and businesses to come to, we haven't done our job," Thicksten said. "Alma is one of the few cities our size that doesn't have an industrial park. We also don't have a business or technology park. Those are obvious things we can do in a relatively short amount of time."

He said using a combination of grants, state and federal funding and private investment would allow the city to develop a technology park for a small investment. And he said developing a technology or other business-type section of the city could spur additional private investment.

"If they see the opportunity to make some money, they'll be on board," he said of businesses who could make the decision to locate in Alma.

Greene's mayoral announcement said he would continue the work of Ballentine, who he said has set Alma on a "positive course."

"As mayor, I will work to continue the positive course set by the current administration to keep Alma a great place to live. As Mayor of Alma, my focus each day will be to promote the growth and prosperity of our city with the assets we now have and the possibilities to come and make Alma a marketable city."

He continued: "I cannot claim to have held any former political office, but I can claim to have over 40 years of seeking opportunities and solving problems successfully."

Thicksten said if elected, he would create a committee of 21 diverse residents to make suggestions to the mayor and city council on policies to improve the future of the community in a transparent way. He added that he looked forward to the next 88 days of campaigning.

"I'm excited about it. Instead of it being work, I consider it a great pleasure to campaign. I enjoy listening to (the voters) and meeting them."

Municipal elections will appear on the Nov. 4 general election ballot in Crawford County.

General Mills is pushing its sustainability goals by insisting that the companies it uses in its products and packaging take steps to shrink their carbon footprint and reduce water usage.

The company is one of Wal-Mart’s largest suppliers, and pushing sustainability goals down the chain is a page from Wal-Mart’s own sustainability initiative.

The packaged-food giant recently spelled out changes in its corporate policy geared at being better for environment and better for the bottom line profits. 

In a blog post dated July 28, the company noted that weather conditions such as drought, floods and excessive heat can decrease output of the crops that make up its core cereal brands and other food products. It also says changing weather patterns can affect delivery of products to customers.

John Church, supply chain executive at General Mills, pledged to buy its 10 most frequently used ingredients from sustainable sources by 2020. Those ingredients comprise 50% of the company’s total purchases.

Church said the new policy continues with companywide efforts to reduce greenhouse gas emissions (GHG) in its operations and in agriculture. General Mills has had specific GHG in place since 2005, but is barely scratching the surface given that the majority of GHG and water use linked to its carbon footprint comes from its supply chain and agriculture production of raw materials.

Environmental groups like Oxfam and the Environmental Defense Fund applauded the move as they have called for big brands to use their clout in creating more awareness around sustainable agriculture. In April, General Mills CEO Ken Powell joined Wal-Mart CEO Doug McMillon in announcing a commitment to accelerate innovation in sustainable agriculture through an initiative with industry trade group Field-to-Market. 

Jerry Lynch, chief sustainability officer at General Mills, said Field-to-Market, Wal-Mart and General Mills recently convened in Idaho with farmers to kick off the new challenge aimed at reducing greenhouse gas emissions through nitrogen fertilizer optimization. The technologies selected through this program will help farmers make sure that every pound of nitrogen they apply is used by their crop in the most effective manner in order to garner the greatest yield at the lowest cost and with the minimal impact on the environment.

Lynch outlined three examples being used by farmer in the program.
• Fieldprint Calculator
This device provided by FTM allows farmers to track information related to their specific farm. They are able to compare how they are doing compared to average results in their area. The farmers may then identify opportunities to improve their results and increase productivity in future years while having a positive impact on land use, conservation, soil carbon, irrigation water use, water quality, energy use and greenhouse gas emissions.

• Fertigation
This technology allows the application of nitrogen at the same time irrigation water is applied. This approach helps prevent the loss of nitrogen into the air that occurs when fertilizer is applied to the top of the soil by placing the nitrogen right at the roots of the plants, where it is needed.

• Aerial imagery analysis
This technology is helping farmers target specific parts of their fields that require herbicide or fertilization treatment, avoiding the cost and potential environmental damage of spraying an entire field.

Lynch said General Mills will release the results of the new practices this winter and it will continue to build upon the toolkit of technologies in the coming months.

“Accelerating innovation in sustainable agriculture will continue to be a priority for Wal-Mart and General Mills given the promise it holds for farm communities and the long-term value it provides to society, the environment and business,” Lynch said.

Digital coupons are becoming somewhat of a necessary evil for retailers, according to Carol Spieckerman, CEO of NewMarketBuilders. But not all retailers are on the same page .

Dollar General, one of the weakest in digital prowess among value retailers, recently announced a partnership with Coupons.com that will make digital coupons available in its 11,300 stores.

“The DG Digital Coupon program provides our customers with an easy-to-use and convenient platform to use digital coupons toward our everyday low prices, helping them get the products they need at prices they want,” said Todd Vasos, Dollar General’s chief operating officer.

He said the service is aimed at shoppers who are using digital and online technology to save money which is part of Dollar General’s everyday commitment. To use the DG Digital Coupon Program, customers sign up online or in stores using a numeric identification number, which is typically their telephone number. After signing up, customers select the most relevant coupons to be added to their profile and the discounts are applied at checkout to customers’ eligible purchases, including leading national brands and Dollar General’s store brand products.

“As more retailers offer the option, shoppers have come to expect them. I like what Dollar General is doing with its DG digital coupons. The program is truly shopper centric because it allows customers to choose which coupons they want to use online then have the savings automatically applied at checkout. Beyond the convenience factor, it is a paperless transaction which gives Dollar General sustainability points,” Spieckerman said.

While Wal-Mart is miles ahead of Dollar General with numerous digital innovations including e-receipts, their digital coupon policy is somewhat old school.

“Walmart’s insistence on paper-based coupons is inconsistent with its sustainability push but it does encourage shoppers to opt for its Savings Catcher program instead,” Spieckerman explained. “Savings Catcher is great for Wal-Mart because it keeps shoppers spending in the Walmart ecosystem as they redeem gift cards. It may sound convenient for shoppers to load coupons onto their smart phones but not every shopper will be comfortable handing their phone over to a store associate. Paperless and automatic is the way to go.”

Wal-Mart has made manufacturers coupons available on its website for several years, according Ravi Jariwala, spokesman for Wamart.com. He said the site allows consumers to surf for the coupons they want, click the box to clip, and the savings are tallied onsite. The consumer must print out the coupons, which can then be redeemed at their local stores.

Jariwala said during 2013 Scan & Go tests there was a digital coupon function that automatically deducted the coupon from the purchase. Scan & Go is no longer being tested, but Jariwala said Savings Catcher and e-receipts came out of the learnings from the Scan & Go tests. 

He said when a shopper signs up for e-receipts they automatically get the benefits of Savings Catcher, which was rolled out nationally this week and expanded to include produce and select general merchandise.

GROWING MOBILE
Just how pervasive is mobile shopping? Shop.com reports 156 million Americans own smartphones. Goldman Sachs projects that U.S. retail sales directly on smartphones will more than double from $70 billion this year to $173 billion by 2018. Similarly, tablet sales will more than triple from $130 billion this year to $453 billion in 2018.

Among U.S. smartphone users, approximately half have consulted their phones to find store information such as location and hours. Half as many again tap their smartphone when they’re browsing or looking for a product or service. And while 37% of 18-to-34-year-olds have purchased a product on their smartphone, so have 29% of smartphone users 35-54 and 14% of those over 55, according to Shop.org.

This summer, 54% of back-to-school shoppers cited coupons as the leading factor that influenced them to shop at a particular store. 

About half of U.S. Internet users will have redeemed a digital coupon by the end of this year. Roughly half (48%) of those are mobile coupon users, up from 39% last year, and more growth is ahead, according to Prosper Insights and Analytics.

WHAT’S NEXT?
Retailers are strategically using digital coupons to achieve a variety of goals beyond the immediate sale. For example, Ace Hardware recently concluded a test in Northern California that encouraged in-store shoppers to text them for a coupon. 

Ace reported that the test increased average basket size in the store and grew the company’s opt-in text-messaging list. Prosper Insights notes that coupons can be a key element in campaigns to re-engage customers, avoid abandonment on the checkout page and rescue abandoned online carts.

“The budgeting aspect of Wal-Mart’s Scan & Go was one of the most popular traits singled out by our mobile users. When they scanned an item into their phone and e-cart it kept a tally of their total purchase. Consumers liked that aspect,” Jariwala said.

Gibu Thomas, senior vice president of mobile at Walmart.com, said during the June shareholders week that e-receipts hold much promise as a platform upon which applications may be built. In the future, he predicts through e-receipts, shopping lists will be generated based on previous shopping trips and then emailed or texted to the consumer as they enter the store. Those lists could also attach manufacturer coupons for more savings potential.

Discount grocer ALDI – a small box, no frills, private label grocery format – was recognized as the nation’s low-price grocery leader for the fourth year by consumer research firm Market Force.

The Market Force survey for 2014 asked shoppers to rank the top grocery offering low prices. The participants ranked ALDI ahead of Costco, Wal-Mart and Trader Joe’s. They also named ALDI one of the top three favored grocery store chains in America.

"It's no surprise that ALDI continues to be recognized as the low-price grocery leader," said Jason Hart, ALDI president. "However, these latest survey findings prove that a growing number of consumers are choosing to shop at ALDI for more than just low prices."

ALDI also maintained a top five ranking in the categories of good private label brands, accurate pricing and sustainable policies. ALDI also ranked in the top five for courteous staff, fast checkout. But the small box grocer didn’t make the top for five for the one-stop shopping category, which went to Wal-Mart, Costco, H-E-B, ShopRite and Meijer.

Hart said ALDI continues to increase its branded product also adding more better-for-you options like gluten-free and organic choices. ALDI announced in December plans to grow its U.S. footprint by 650 stores over the next five years.

While price matters, consumers also expect well-stocked stores that can anticipate their needs in an inviting atmosphere. Publix takes the top spot in this category, followed by Trader Joe’s. Wal-Mart and ALDI did not make the top five ranking in this survey. (See detailed ranking info at the end of this story.)

When it comes to product quality, Costco took the top spot in beef, trumping Publix and H-E-B. Publix took top grade in produce quality, with H-E-B coming in a close second. Wal-Mart nor ALDI ranked in the top five for the two quality categories, despite a major marketing push by Wal-Mart on beef and fresh produce.

“Competition is fierce and growing in the grocery sector with regional players going national and national players moving toward neighborhood market concepts. It’s only getting more difficult to attract and keep customers, and being adequate is no longer good enough,” said Janet Eden-Harris, chief marketing officer for Market Force. “We’ve found that delighted customers are three times more likely to recommend a grocery store than those who had just an OK experience. This tells us that chains that truly wow their customers on their first visit can establish brand advocates who go on to recommend the grocer to friends and family.”

Wal-Mart’s sustainability score was not among the top five according to the survey. Trader Joe’s, Publix, ALDI, Costco and H-E-B were the top choices by the survey respondents.
When all the category scores were tallied by Market Force, Trader Joe’s took the No. 1 spot as the favorite grocery store chain with a score of 85%. Wal-Mart ranked No. 11 with a score 32%, despite being the most shopped grocer in the nation.

Arkansas now has eight public compressed natural gas fueling stations with the opening Thursday (Aug. 7) of Fort Smith's second compressed natural gas fueling station at 4315 Savannah Road. The Fort Smith stations are owned by Arkansas Oklahoma Gas Corp.

Two public CNG stations are under construction in Springdale, and one is planned for West Memphis. The first CNG station in Fort Smith opened in April 2011 and was the first public facility in Arkansas.

The new Fort Smith fueling station houses one pump that can be used by two vehicles at one time, with a second pump scheduled for installation before year's end, according to Fred Kirkwood, senior vice president of customer development at Arkansas Oklahoma Gas (AOG).

"(This station) has three times the capacity of our existing station (just off Rogers Avenue)," he said, adding that plumbing and electric are already in place for the additional pump.

‘PURE SAVINGS’
AOG President Mike Callan said the opening of the new fueling station is an investment – roughly $1 million – in what the company believes is the future of American fuel.

"We really believe at AOG that this is the wave of the future. As you can see from the sign, we're selling compressed natural gas for $1.63 per gasoline gallon equivalent," he said.

Compressed natural gas is a cleaner burning fuel than gasoline or diesel and is inexpensive enough, that AOG has invested in conversion of many vehicles in its fleet to run on the fuel, he said.

"What we do is we amortize, we look at our fuel savings," he said. "We're going to save around $1.50 to $2 per gallon on our fuel, so the more gallon equivalent of CNG that we burn, we're calculating that savings into covering the cost of the vehicle conversion and then everything after that is just pure savings on our operating cost each month."

When AOG was originally doing their own conversions, he said conversion kits would cost about $8,500 per vehicle. Now the company is able to purchase vehicles directly from Ford, General Motors and Ram with CNG already pre-installed at the factory.

Barry Rowton, owner of Falcon CNG — a Fort Smith-based CNG conversion business — has said the factory conversions typically run between $9,000 and $10,000, but added his company could convert a half-ton pickup truck with a 16.5 gallon CNG tank for about $6,800 "when it's fully said and done and out the door."

Using the factory installs, Callan said AOG is able to recoup the nearly $10,000 investments in a short amount of time.

"It is different for each vehicle. It is very dependent on how many miles that vehicle drives. Most of our vehicles, we're looking at at an amortization of less than three years. We're able to pay for the conversion and then everything after that is pure operations cost savings," he said, adding that a typical vehicle stays in AOG's fleet for a minimum of 175,000 miles.

GOVERNMENT FLEET CONVERSION
One of the largest purchasers of fleet vehicles on an annual basis are local governments. The Springdale Water and Sewer Commission announced July 16 it would buy two CNG trucks. With the purchase of two compressed natural gas vehicles, Springdale Water Utilities will become the first public entity in Northwest Arkansas to use CNG. The two vehicles are a pilot program to determine whether cost savings can be accomplished by converting more of the utility's more than 70 vehicle to reliance on the alternative fuel.

In the most recent budget year, the Fort Smith Board of Directors set a priority to incorporate more CNG conversions into the city's fleet to realize the cost savings touted by Rowton, Callan and others at the Thursday grand opening of the CNG station.

But according to Deputy City Administrator Jeff Dingman, the costs outweighed any fuel savings and do not justify the expenditure for vehicles with CNG conversion kits, though he said many of the city's bids this year for new vehicles have also included price quotes for conversions.

"I think it would be, just because there's a Board directive to try to be more proactive, if the margin gets close enough then I think we'd go for it. But I don't know what close enough means, really, whether it's $500 or $2,000. I think if it got in that ballpark, we'd certainly try to make it happen. But when we're talking about vehicles, I mean, a lot of times when you pencil out the fuel costs with the conversion on a vehicle… how long do you keep a vehicle for its intended purpose? Is 10 years too much? Will it take 10 years for it to break even? Does it come within $1,000 or $2,000 of breaking even? Are you even going to keep that vehicle for 10 years or do they rotate out every seven years?"

Dingman said the city has yet to purchase a new CNG vehicle this year beyond some transit vehicles and other vehicles that were converted using grant monies to test whether it would be a benefit for the city. Vice Mayor Kevin Settle said even though no vehicles were purchased with CNG this year, it would not change the desire of the Board to see additional CNG vehicles added to the city fleet.

"The costs will come down and the technology will get better," he said. "We'll see those prohibitive costs come down. This is not a one year action, it is a long-term action through the years. Other cities are doing this in transit. That is one of the major areas. And I think the Board has said it is a long-term goal, not just a one or two year goal."

‘STAGGERING’ SAVINGS
Dean Pendergrass, commercial fleet sales manager at Breeden Dodge Chrysler Jeep Ram in Fort Smith — who has been involved in some of the city's bids for new vehicles this year, including CNG conversions — said many businesses see the fuel costs reduce by about 60% per year once CNG vehicles are introduced into fleets. So he said while the up front costs may be higher to the city, it makes sense to go ahead and purchase a conversion in the long run.

"For this year, they are trying to go green, but at the end of the day costs is kind of prohibitive. But the fuel savings (are) there. But it's the initial cost that really kind of scares people, but they do eventually recoup that out, especially on a municipal level because they do drive a lot of miles. So they would recoup it, but it's just getting your administration to recognize that initial cost upfront is there, but you're going to recoup it later in the life of the vehicle."

Rowton of Falcon CNG said more and more companies are seeing the benefits.

"We have some companies here in town that drive very high miles and get very low miles to the gallon, they're saving thousands per month per truck. It's staggering the kind of money (saved)."

And it is because of those savings that AOG has decided to invest in the second fueling station and Rowton is expanding his business, as well, which just opened earlier this year.

"It's been going great. Fixing to have to bring on some more staff to keep up with it. I'm just not able to keep up."

Arvest Bank, which turned over $551,764 to the Benton County Court in the interpleader case of H. Dennis Smiley, has reportedly settled with 18 of the 20 banks holding claims against the money. While the cost of that settlement may never be known, the claims and legal costs exceed $3 million, according to court filings.

Smiley was forced to retire as president of Arvest Bank-Benton County in March when possible loan fraud was discovered. Smiley reportedly borrowed an estimated $4.5 million from more than a dozen Arkansas banks dating back to 2009, according to Uniform Commercial Code filings with Arkansas Security of State.

Arvest, Smiley’s former employer, filed the interpleader case in April asking the court to decide how the proceeds would be split from Smiley’s retirement fund after his termination. The funds were pledged as collateral among at least 20 banks staking claims far exceeding the retirement funds.

Last week 18 of the banks involved in the interpleading signed over their interests to Arvest Bank, who then asked the court to dismiss their claims as of July 30. Following is the list of banks settling their claims against Arvest.
Bank of Oklahoma
The Bank of Fayetteville
Bank of the Ozarks
Benefit Bank
Chambers Bank
Centennial Bank
Delta Trust & Bank
First Bank, Hampton
First Federal Bank, now Bear State Financial
First National Bank of Fort Smith
Integrity First Bank
First Security Bank
First State Bank of Lonoke
First National Bank of NWA
First State Bank of Russellville
First Western Bank of Booneville
Legacy National Bank
Summit Bank in Arkadelphia

Signature Bank and First State Bank of DeQueen did not settle with Arvest and will have their day in court on Sept. 18. Benton County Circuit Judge John Scott has ordered a pretrial and status conference. Scott filed that notice with the court Thursday, (Aug. 7). He said on Sept. 18, he will schedule future hearings and or a trial in this matter. He told The City Wire he wanted to conduct status hearings in all of the Smiley cases on Sept. 18. At that hearing Scott said he will decide all pending motions and set all other matters for trial if needed.

Jason Kincy, spokesman for Arvest, said the bank did ask the court to dismiss the claims of the 18 banks mentioned in the filing. He said the bank has no comment on the settlement or any of the actions that led to the dismissal, or any of the pending litigation. Kincy also re-affirmed that no other Arvest employee has been implicated in the Smiley situation, despite their names being mentioned in several of the court filings. 

“We don’t expect there to be any other personnel changes related to this case, all of those associates named in the filings remain employed by Arvest,” Kincy said.

A number of the banks settling their claims told the court that Arvest knew or should have known about the multiple usage of collateral pledged by Smiley, a bank officer. There have been no public records of the settlements made, and there likely won’t be, according to the court.

Cases that remain open for hearing on Sept. 18 include:
• Arvest interpleder versus H.Dennis Smiley, Signature Bank and First State Bank of DeQueen;
• Delta Trust Bank versus HDH Holdings, a business entity of Smiley;
• First Security Bank foreclosure on Smiley’s home at 56 Champions Boulevard in Rogers Pinnacle Country Club;
• Simmons First National versus Henry Dennis Smiley, Design for the Home;
• First Federal Bank versus HDH Holdings, H. Dennis Smiley Jr.; and
• First State Bank versus Henry D. Smiley Jr.

The city of Fort Smith has invested $201.2 million since 1993 on wet weather sewer improvements and another $150 million or more could be poured into improvements before the city atones for violations of the federal Clean Water Act – bringing the grand total for compliance with the law to $351.2 million.

Deputy City Administrator Jeff Dingman said the city has been under an administrative order from the U.S. Department of Justicen (DOJ) since the early 1990s directing the city to make improvements to comply with the Clean Water Act. He said the city may be placed under a DOJ consent decree that would require even more system work.

"The city has been under the administrative order (since) 1989, I think. But it's really been the last eight years or so that we've had these current ongoing negotiations on this consent decree action," he said.

DIRECTIVES V. CONTRACT
Steve Parke, director of utilities at the city, explained the differences between an administrative order and a consent decree as being a directive versus a contract.

"The consent decree is a pending action. And essentially what a consent decree does is it takes things in more of a contract format. (For example), the parties agree in the future that on schedules and stipulated penalty payments if you don't meet schedules, those types of things. It's an enforcement matter," Parke said. "So an administrative order is kind of a directive. You will go out and and do these things and do your best to get them done. A consent decree will come about if the agency either felt you weren't making appropriate progress or adequate progress. I guess if they thought your improvements were not sized properly. Those types of things."

Parke has said publicly as recently as December 2013 that city wastewater runoff date back to the 1970s. In the same article on The City Wire, Dingman explained that some of the problems leading to the administrative order included drainage into the Arkansas River.

"In the past, there have been areas of town where untreated water has gone into the streams and the river in violation of the Clean Water Act. That's the whole deal. We've (had) untreated water going to streams and rivers in violation and we have to prevent those."

Dingman recently told The City Wire that drainage into the river is no longer the primary problem.

"The current system, the deficiencies are based on age of pipe and that sort of thing. And we still can't guarantee that we're not going to have overflows. We still have recurring (problems) like a particular manhole in an area, (we) still know of several of them that will overflow if we receive a certain storm event, a certain amount of rainfall within a certain amount of time. So, those are becoming more and more infrequent as we address capacity issues in the lines."

But he said until all overflows stop, the city is still looking at violations of the Clean Water Act.

"The Clean Water Act says, 'Thou shall not overflow,' and you know, if we know of areas in town that have recurring overflows — infrequent or not, then we are not in compliance. So we're not going to be in compliance until we can address those," Dingman said.

CONSTRUCTION AND CONTRACTORS
Projects completed or under construction using the $201.2 million spent since 1993 include equalization tanks on Grand Avenue, as well as improvements to the Massard Wastewater Treatment Plant, the construction of two overflow storage tanks at Jenny Lind Road and Zero Street, construction of the Mill Creek Pump Station, as well as equalization tanks under construction on Navy Road near the Port of Fort Smith and the Arkansas River.

A variety of companies have been awarded construction contracts associated with $95.004 million in improvements just since 2008 to July of this year, Parke said, with Neosho, Mo.-based Branco Enterprises taking in the most at $46.434 million. Fort Smith-based Forsgren was awarded contracts totaling $16.076 million during the same period and Topeka, Kan.-based BRB Contractors was awarded contracts totaling $12.93 million. Contracts awarded to the three companies total $75.439 million, or 79.41% of contracts awarded during the last five and a half years.

Dingman said further capital and infrastructure improvements will be needed once a consent decree is filed by the Justice Department, details of which he said are still confidential at the direction of the DOJ, he said. While he said the DOJ will not allow disclosure of working documents — Dingman said Justice Department officials collect all notes and paperwork from any negotiation participants at the end of each in-person meeting — the consent decree will have specific benchmarks the city must meet in its efforts to comply with the decree.

According to Dingman, the city will comply with the decree in two areas: capital improvements and ongoing operations and maintenance.

THE LIMITED PIE
The capital improvements are why the cost for complying with the consent decree could meet the $201.2 million total already spent to this point. As for how long the city will have to comply with the order, he said it is under negotiation and it is ultimately at the discretion of the Justice Department.

"I mean, as far as getting the capital projects done, it's all going to depend on what the final decree says we're required to do. I mean, if we are able to put more capital investment in and less (operations and maintenance)… the pie is only so big, right? The more of that pie we can use initially for investing in capital needs, the more quickly we can get in compliance with our system," Dingman said.

"But the other piece of the pie has to be.. the pie is all how much we can afford, right? So if we're using a big chunk of it to address the capital needs and the infrastructure, then we have less of the pie to use towards ongoing maintenance. But as soon as we can get as much of it as possible, as much the collection system as possible in compliance, then that pie that's available for operations and maintenance gets bigger, you know? So I don't know, it's all a balancing act at this point."

Since the pie is only so big, the city will have to increase sewer rates to cover costs associated with complying with the consent decree, Dingman said. But it depends on how much time the DOJ gives the city to comply with the consent decree how much rates could go up and how quickly. It also would impact how much debt the city could possibly incur in the short term to comply with the order.

"And the right answer will depend on the timeframe. The timing of it is the variable that's going to impact the rest of it. And so can we afford the debt we need to incur to correct all the problems? Well, the answer if we have 20 years to do it is yes. If we have five years to do it it, no. So that's the variable that's going to possibly drive the whole thing,” Dingman explained.

He also said the DOJ is considering the city’s “arguments on affordability” for water and sewer bills in “a particular area.” He also pointed to specific maintenance issues as being a big factor in how much the city can afford.

"If we're required to inspect 50% of the system every two years, so we cover 100% of it every two year cycle, that's going to be unaffordable to our city. We can't get anywhere close to that. We're going to have to have a smaller percentage over a larger amount of time. Those are all points that are still being negotiated."

POSSIBILITY OF FINES
Dingman said the city has not had to pay fines for violation of the Clean Water Act, but he said those would be spelled out in the consent decree, as well, possibly adding additional cost if the city cannot comply during the prescribed timeframe.

City Administrator Ray Gosack has not shied away from the rate increases, noting in a July memo to the Board of Directors that sewer rates "will likely be necessary in order to begin implementation of the consent decree requirements for wet weather sanitary sewer system improvements."

Neither Dingman or Gosack have publicly said what the rate increases could be, only that the increases would be phased in versus a quick rise. Asked whether it would be more cost effective for the city to pay fines in the short term in order to buy more time to comply with the consent decree, Dingman said it was a scenario that has so far not been discussed among city staff.

"No, just because we're negotiating in good faith to try to get a consent decree that's acceptable. I guess at some point, you may have to look at that, but presumably we'll get to a consent decree that … I mean, that's the whole point of these negotiations is to try to get as many of these points agreed upon before the consent decree is lodged by the Department of Justice."

With negations ongoing between the city and the Justice Department, it is unclear when a consent decree could be handed down and the timeframe for getting out from under it. But Dingman and Parke confirmed a conference call was scheduled to take place Wednesday (Aug. 6) regarding the consent decree with an in-person meeting scheduled for later this month in Fort Smith. Gosack said July 22 that the city expected to begin spending on any compliance measures associated with the consent decree as early as next year.

A recent Pew Research study said Republicans nationwide have a clear electoral engagement advantage going into the November mid-term elections, but enthusiasm among likely Republican voters is lower than in years past. But two Arkansas political science professors said local politicos and operatives should not put too much stock in the survey.

The survey showed nearly even totals for self-identified Republicans and Democrats, but noted that Republicans are more enthusiastic about supporting their party's candidate in the fall by a margin of 45% to 37% Democrats.

Even with the advantage for Republicans in the poll, compared to 2010's difference of 55% to 42%, Republican enthusiasm nationwide is lower. Part of that has to do with the balance in power in Congress, with the number of Republicans wanting to defeat their incumbent member of Congress at 44% in 2010, versus only 38% in 2014, after four years of a Republican-controlled House.

The only numbers to not change in the poll for Republicans is the unfavorable view of President Barack Obama, with 51% of Republicans describing their vote in the midterms as a vote against Obama versus 52% in 2010.

Dr. Hal Bass, a political science professor at Ouachita Baptist University in Arkadelphia, said while the dislike of Obama may be drive voter turnout in certain areas of the nation, he said the survey from Pew should not be taken as representative of Arkansas.

"Enthusiasm is about a sense of perceived threat," he said. "In a sense, this is sort of counter intuitive. The distrust and disrespect of Obama in Arkansas is in a sense taken for granted. It doesn't drive folks to the polls because everyone feels that way."

He said the enthusiasm gap highlighted in the Pew study was more about a lack of focus within the Republican Party.

"I also think the enthusiasm gap suffers for Republicans for an absence of a real agenda aside from disliking President Obama. It's easy to say what they're against, but it's hard to see what they're for. It's easy to be enthusiastic about a good agenda versus just blocking what somebody else is trying to do."

Dr. Jay Barth, a political science professor at Hendrix College in Conway, said much the same.

"I think because Arkansas has been a state where the president has been unpopular for a long time, this is not a new dynamic," he said. "The president's unpopularity could be aiding some of the numbers nationally, but I don't know that it is strong here (in moving voters). It's been the norm the last two cycles. We'd need to see some Arkansas data on enthusiasm and I imagine some of the campaigns or the parties have done polling on the issue."

According to Barth, the bigger issue in Arkansas is going to be the unhappiness with Congress.

"I think that there's just so much negativity towards Congress as an institution that it's having an impact on individual members of Congress. But I don't know, we only have two members of the House running for re-election of the four," he said, mentioning U.S. Reps. Steve Womack, R-Rogers, and Rick Crawford, R-Jonesboro.

Bass said that even before the Pew study was released, Republicans had the advantage in many races across the state.

"I do think the broad partisan tide favors the Republicans," Bass said. "Arkansas is a conservative state. That benefits the Republicans. And opposition to Obama on top of that helps."

But the two elections still up in the air are the races for U.S. Senate where incumbent Democrat Mark Pryor is facing off against U.S. Rep. Tom Cotton, R-Dardanelle, and the governors race between Republican Asa Hutchinson and Democrat Mike Ross. Recent polls have Cotton and Pryor within the margin of error, while Hutchinson is up by about five points.

The issue is voter turnout and Barth said it is essential for Democrats to be organized if they are to overcome the Republican momentum built during the last two election cycles.

"That could be an impact here," he said. "The Democrats are anticipating and working to build large turnout. They feel like they need a large turnout to succeed. If that can't happen or folks are just so angered at their own party (and the President) and don't vote, that could be disadvantageous to Democrats here."

With the election in its final three months, Barth said the debates would also play a large part in voter turnout and turnout of the two marquee races in the state.

"I think there's tremendous things that could happen race by race and the debates are crucial. The gubernatorial and senate races are close. … I don't think anyone would say this is a done deal. In big races, debates are important. … If one is right on target and another falters, that could change the dynamics as we saw nationally in 2012 with the Presidential race."

The other factors to drive voter turnout could be ballot issues on the statewide legalization of alcohol sales and increasing the minimum wage, but Bass said the races will largely depend on the candidates themselves versus any statewide or national issues on the ballot.

"The races essentially are going to turn on the candidate appeal of the Democrats versus the partisan ideological appeal of the Republicans. If one candidate looms large, it works well for the Democrats. If ideology looms, it works well for the Republicans. That's why you have elections to see which one prevails."

For the second time in a week, Northwest Arkansas’ manufacturing sector was handed a slap in the face as jobs are being moved elsewhere amid corporate consolidations. APEX Tool, formerly Danaher Tool, employs roughly 250 workers whose jobs will be moving to South Carolina in 2015.

"APEX Tool Group has made the difficult decision to close our manufacturing facilities in Dallas, Texas and Springdale, Ark., by the end of 2015, and to consolidate production of our Made in the USA brands to an existing facility we own in Sumter, S.C.,” the APEX Tool Group noted in a statement. “We plan to add 150 to 200 jobs in Sumter to handle this additional capacity, and our associates in Dallas and Springdale whose jobs are impacted will have the first opportunity to apply for these positions. All three of these facilities are operating substantially below capacity so we need to consolidate these manufacturing operations in order to be competitive and serve our customers efficiently.”
 
APEX confirmed the local layoffs will begin in 2015 and the local plant employment is 250. 

“We were informed today of the corporate decision. ... We have known for some time that plant consolidation was part of the company’s long range plans. We were the beneficiary of this strategy in 2009 when we were able to assist our local plant in securing consolidated tool lines from New York at the time APEX Tool Group was formed by Danaher Tool Group and another tool firm,” said Perry Webb, Springdale Chamber of Commerce president.

Webb said the plant has been part of Springdale’s economy for more than 45 years and it was hard to hear the official word. 

“While this is a setback, it is our understanding that there will be no immediate layoffs. That gives us time to mitigate the impact of this announcement through continued job creation in Springdale,” he added.

APEX closed a plant in Gastonia, N.C., in June of 2013 after production of Craftsman tools was shifted to the Texas plant and to China. A year later the Texas plant is set to close as well. The consolidations have come under the ownership of Bain Capital, who purchased Danaher and Cooper Tools early last year.

“I am disappointed to hear of the corporate decision to move Springdale’s plant to another state and am saddened for the employees and their families who are impacted. APEX Tool Group, and Danaher Tool before it, have been excellent corporate citizens for many years. Layoffs are never good news but we are confident our strong local economy will continue to create quality jobs that can address the demand created by this announcement,” said Springdale Mayor Doug Sprouse.

The APEX Tool news comes on the heels of the Superior Industries decision announced July 30 to shutter its plant in Rogers, which will result in the loss of 500 local jobs.

There were 26,300 manufacturing jobs in Northwest Arkansas as of June, the Superior and APEX Tool closures will mean a 2.85% decrease in the overall sector, according to Kathy Deck, director for the Center for Economic Research at the University of Arkansas. While the news is not surprising, Deck said swallowing the losses is not easy, even for a growing economy like Northwest Arkansas.