Bonds that will pay for construction of the new Crawford County jail were issued Monday (Aug. 18), with rates coming in lower than expected saving the county about $50,000, according to County Judge John Hall.

Speaking shortly after the bonds were sold Monday afternoon, Hall said the county's ability to secure an A+ rating allowed interest rates to be lower than expected.

"The bond market fluctuates daily," he said. "We had a prospectus as far as anticipated rates as of last Friday and it came in (lower than expected). I think it was five basis points down from Friday to Monday. So the sale of the bonds was better, the cost of the bonds was better than what was anticipated.”

The total proceeds the county will receive from the bond sale is $21.91 million at a 2.23% true interest cost over the life of the bond.

Kevin Faught of Stephens Investments in Little Rock handled the bond issuance for Crawford County and said based on anticipated sales tax revenues from the half cent approved by voters in May for construction of the jail and a quarter cent approved for law enforcement operations, the bonds should be able to repaid in as little as eight years assuming revenues stay flat. Should revenues improve, he said the bonds could be repaid even faster.

The half cent sales tax for jail construction is to sunset in 10 years while the quarter cent for law enforcement, which can also be used for debt repayment while the jail is under construction, will be a permanent sales tax.

In an ordinance that included an emergency clause, approved by the Crawford County Quorum Court Monday, it is stated that U.S. Bank in North Little Rock will be the trustee of the bond proceeds which will be used to pay vendors involved with the jail project. In short, it means the money will never be directly touched by the Quorum Court or county judge.

Should the Quorum Court decide to begin using the quarter cent portion of the proceeds for law enforcement operations before construction of the jail is complete versus debt repayment, the trustee will remit those proceeds to the county. Faught said closing on the bonds will take place Sept. 24. Beginning the next day, Hall said the county could begin expending money for jail construction including purchase of land on U.S. Highway 64 just east of the Van Buren city limits.

Already, the county has been accruing expenses that will need to be reimbursed from the bonds issued Monday he said.

"As we speak, the architects are designing the facility to go on the property that we're looking at. We've done the topography across there, we've core drilled it. We know the soils and environmental impact. So we know that we don't have a deal breaker (regarding the property). We're moving forward on a daily basis to continue to get all of our ducks in a row. Once we get the money, then we can move quite quickly to move forward and folks can see the actual start of construction.”

Per Internal Revenue Service policies regarding municipal and county bonding for capital improvements, Hall said at least 5% of the bond money must be spent within the first six months it is available.

For that reason, he said groundbreaking and construction on the jail should take place sometime in October or November.

"The timeline is to break ground and then have 18 months to build it. All this money has to be spent within 30 months or three years. This has to be completed in a three year period. That's the rules of the game. From Sept. 25th, it has to be done in three years.”

But any movement on the jail could be slowed by action of the Quorum Court's budget committee Monday, which voted 4-9 against Hall's request to hire a deputy county administrator to oversee construction of the jail at an annual salary of more than $35,000.

Justice of the Peace Carrie Jernigan, along with Justice James Lane, questioned the hiring of the position which would come with full benefits, including retirement. Hall said it was necessary to have someone on the jail project full time and he and others currently on staff did not have the ability to devote themselves to the project on a full time basis.

In other business, the Quorum Court's budget committee tabled a motion to allocate an additional $60,000 for the Crawford County Election Commission. The commission had previously notified the court that it would run out of money before the November general election without additional funding.

Committee Chair Mary Jan Blount indicated the committee would request a breakdown of expenditures prior to a full review of the election commission's request. Election Commissioner Bill Taylor indicated that the commission could stay afloat through the September school board elections but indicated it would have to receive funding prior to November.

When the Quorum Court approved its budget for this year, a line item was added for anticipated revenues from state election reimbursements that essentially placed those funds in the general fund instead of appropriating them to the election commission, Taylor said.

No date was given for when the budget committee could review the election commission's request.

Wal-Mart Stores, a self-proclaimed low cost retailer, is investing in a new private label brand aimed at wooing bottom-dollar customers from ALDI and Dollar General.

Price First is a new opening price point product line that the retail giant has tested in selected markets since the fall of 2013. Products include pasta, peanut butter, baking mixes, mustard and other condiments totaling about 50 items including paper and other consumables. Wal-Mart is nationally debuting the new private-label product line in more than 2,500 stores over the next few months, according to Danit Marquardt, Wal-Mart corporate spokeswoman.

A sample of Price First products include a 40-count package of foam dinner plates for 97 cents, or 150 dinner napkins for 97 cents and a four pack of toilet paper is priced at 68 cents – all of which beat opening price points of other competitors.

This effort by Wal-Mart comes as no surprise given the retailer’s focus on having the lowest prices, a core mission of new CEO Doug McMillon.

“In an environment where customers have so many choices about where to shop and how to buy, and many of them are feeling pressure on their budgets, we have to be at our best,” McMillon said in the recent quarterly earnings call. “That’s why it’s so important for us to deliver a compelling customer proposition of low prices and quality service for every transaction.”

“Our Walmart U.S. business added approximately $1.9 billion in net sales and delivered a flat comp. I’m encouraged that we’re gaining traction on our goal to have a positive comp by year end, but I’m not satisfied,” McMillon added.

Wal-Mart continues to note a negative impact from the reduced SNAP (food stamp) benefits – estimated 0.7% reduction to comparable store sales – which has also meant less money in the wallets of core customers struggling to make ends meet.

Retail expert Jason Long, CEO of Shift Marketing Group, said Wal-Mart’s new lower tier price point looks to be part of its plan to win customers on tight budgets.

“It will be interesting to see how Wal-Mart promotes this brand and if it puts further price pressures on suppliers of Great Value and branded products,” Long said.

Long said the private label line should resonate with consumers seeking rock-bottom prices for things they need. For instance when a shopper just has $25 to spend on food and consumables for the week, they need the lowest opening price point, not necessarily the best value. That is often a a smaller size name brand item sold at Dollar General or a trusted private label at ALDI. The new Price List brand at Wal-Mart now provides another option.

Kantar Retail reported that in late 2013 that Dollar General beat Wal-Mart in a head-to-head basket challenge on opening price points. Kantar’s report found among the seven retailers surveyed that Dollar General had the least expensive basket thanks to lower opening price points in its edible and non-edible baskets. 

At a total cost of $23.81 the basket savings were 18% more at Dollar General than their closest competitor, Wal-Mart, with a $28.12 basket total. Shortly after, Wal-Mart began testing its Price First private label items. In that study, Aldi’s basket was $34.70.
A separate study by Market Force recently recognized Aldi as the nation’s low-price grocery leader for the fourth consecutive year.

Wal-Mart’s new private label launch also comes on the heels of Savings Catcher, the new lowest price ad matching app, rolled out nationally, which compares branded products, produce and limited general merchandise against the prices competitors in the immediate area. The retailer said the Savings Catcher is being widely used by its shopper base, but industry experts warn that this all-out attempt to match sales prices could lead to margin erosion. 

Kantar Retail released last week its 12th iteration of a pricing study between Wal-Mart and Target. The study assessed a basket of national brand items: 15 edible grocery, 11 non-edible grocery, and 13 health & beauty aids (HBA) items. Kantar reported that Wal-Mart’s overall branded basket was 1.2% less expensive than Target’s. The price gap between the retailers narrowed from 4% in January.

Target’s edible basket was 10.5% more expensive than Wal-Mart’s when temporary price cuts and rollbacks were factored in. For the HBA sub-basket Target’s price was 4.7% less expensive than Wal-Mart’s, which was the only sub-category in Target’s favor. HBA is one area where Target discounts more than Wal-Mart. 

However, Target’s Redcard holders would have paid 3.9% less than Wal-Mart shoppers for the total basket as Target continues to reward it most loyal shoppers.

The Kantar study took place in June prior to the national rollout of Savings Catcher. 
The narrowing price gap between Wal-Mart and Target is the lowest recorded since June 2012. 

“This slightly lessened stronghold on price leadership shows the difficulty in creating basket separation based on price, emphasizing the need for alternative methods to drive impression and value perception by shoppers. The smaller difference would also seem to reflect Wal-Mart’s general shift toward a more nuanced and customized approach to Everyday Low Price,” Kantar noted in the study.

Long said Target is testing many things to recover sales and the shrinking price gap against Wal-Mart is perhaps evidence that some of them may be working.

U.S. Sen. Jim Inhofe, R-Okla., said during a visit to Fort Smith Tuesday (Aug. 19) that while he is against higher taxes, the gasoline tax that funds the Highway Trust Fund should be re-worked as a "percentage" versus a "centage" tax in order to keep infrastructure projects moving forward across the nation.

Inhofe, a senior member of the Senate's Environment and Public Works (EPW) Committee, was in Fort Smith with U.S. Sen. John Boozman, R-Ark., to see the area's infrastructure needs and to meet with the Regional Intermodal Transportation Authority for a question and answer session Tuesday morning. The meeting was held at the Arkansas River Valley Nature Center at Chaffee Crossing.

The statement by Oklahoma's senior senator was in response to a question by RITA board member George Moschner, an executive vice president of risk management and compliance at Baldor Electric Co., about how to secure funding to complete the section of Interstate 49 between Alma and Chaffee Crossing. The section would include a bridge across the Arkansas River and is estimated to at least $350 million.

Inhofe first said locals must get the Arkansas Highway and Transportation Department to make completion of that section of I-49 its number one priority in order to get the attention of Washington.

"The second thing is you're going to see coming up between now and May a funding mechanism that is going to change the way we're looking at funding our roads and highways. And again, this is not an announcement on my part because I still am going to maintain opposition to any new tax increases. However, I don't see that. It's more of a user fee than a tax increase and it's going to have to affect that. So those are two things that are going to have to happen before (that stretch of I-49can be funded)."

The federal gas tax has not been raised by Congress since 1993 and stands at 18.4 cents per gallon, though diesel fuel is taxed at 24.4 cents per gallon. Boozman, Arkansas' junior senator who serves on the EPW Committee with Inhofe, echoed the Oklahoman's sentiments regarding re-tooling funding. The federal Highway Trust Fund recently came close to insolvency before a short-term funding bill extended funding until May 2015.

"The problem, as you know more than anybody, is the Highway Trust Fund is not solvent right now because cars get much better gas mileage than they used to,” Boozman said. “With the downturn in the economy (and) high fuel prices, people just aren't driving as much. That impacts the state, as well as the federal government. So as Jim alluded to, we're going to have to figure out how we can get a revenue stream in there to support that and there's going to be a lot of controversy about that, but in the end we're going to have to come together and actually get that done."

As the senators took questions from RITA board members, the conversation shifted to maintenance issues with the U.S. Army Corps of Engineers and the Arkansas River.

Fort Smith City Administrator Ray Gosack questioned what could be done to fix the funding backlog for maintenance along the river's navigation system since several locks are at increasing chance of failure.

Inhofe laid the blame at the feet of President Barack Obama.

"Of course you know there's an overall funding problem we've had with this administration and everything that is really worthwhile – the military, for example, has taken a huge unbelievable hit under (the) Obama administration – some of you in here probably don't believe me. … The money is all going to places that are all part of the environmentalist crazy activity that's taking place right now."

He pointed to Obama's unsuccessful attempts at passing cap and trade legislation and the Environmental Protection Agency's push to decrease pollution by energy producers.

"When you talk about getting more done with the Corps of Engineers or with roads and highways, you're not getting any help with this administration. The good news is … yeah, I'm going to say it — Republicans are going to take over the United States Senate this next time and you're going to see some changes in the perspective. … The Corps of Engineers, which is your question, is the typical example. That is doing constructive things to build America and this administration didn't want that."

Boozman said while maintenance of locks and other infrastructure along the river's navigation system is important, the first priority must be dealing with the three rivers — the Arkansas, Mississippi, and White Rivers — in eastern Arkansas which could breach and close the entire navigation system for an extended period.

Inhofe, who told the local audience he expects to take chairmanship of the EPW Committee should Republicans re-take the Senate in November, said his proposal for a transportation bill that would alter funding for the Highway Trust Fund would also allow for private-public partnerships to address local and national infrastructure needs.

Boozman added that the days of the federal government funding all infrastructure projects "are over," noting that partnerships will also need to be developed with local governments.

"You can't be short sighted. You do have to spend some money. it does have to come from someplace, but I would argue that if you're going to grow and become the state that we want to be, we're certainly going to work hard to get federal funding here but you're going to have to work really hard to get everybody in government — city, county, and state — to try to get as much money as we can into these projects."

Sebastian County Judge David Hudson asked what RITA and other local governments could do to ensure projects of significance in the Fort Smith region, namely the I-49 project between Alma and Chaffee Crossing, receive funding.

Without providing specifics, Inhofe said the answer would come before a vote is taken on a final transportation bill in May, which Boozman said could be a five-year bill that would provide funding for a variety of projects nationally.

The meeting Tuesday was organized by Matt Sagely of Washington, D.C.-based The Normandy Group. The organization to date has been paid $20,100 to organize meetings between RITA and leaders in Washington as the group lobbies for funding of transportation projects of regional significance.

Three broad reports note year-over-year tonnage and expenditure increases during July and the second quarter of 2014 in the U.S. freight industry, and suggest continued modest growth in the overall economy for the remainder of the year.

The American Trucking Associations’ Truck Tonnage Index was up 1.3% in July after a 0.8% decline in June, and was off just 0.6% from an all-time high in November 2013. For the first seven months of 2014, tonnage is up 2.9% compared to the same period in 2013, according to the ATA index.

The not-seasonally adjusted index, which represents the real change in tonnage hauled by the fleets, was up 0.8% compared to June.

Trucking serves as a barometer of the U.S. economy, representing 68.5% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, according to the ATA. Trucks hauled 9.4 billion tons of freight in 2012. Motor carriers collected $642.1 billion, or 80.7% of total revenue earned by all transport modes.

“After a surprising decrease in June, tonnage really snapped back in July. This gain fits more with the anecdotal reports we are hearing from motor carriers that freight volumes are good,” ATA Chief Economist Bob Costello said in the report.
 
Costello said tonnage is up 4.9% since hitting a recent low in January.
 
“The solid tonnage number in July fits with the strong factory output reading and a jump in housing starts for the same month. I continue to expect moderate, but good, tonnage growth for the rest of the year,” Costello wrote.

THE CASS REPORT
The Cass Freight Index for July showed shipments down 3.9% and freight spending down 3.9%. The declines were “consistent” with declines in previous summers, according to Cass report author Rosalyn Wilson, a supply chain expert and senior business analyst with Vienna, Va.-based Delcan Corp.

However, the July shipment volume was up 4.2% compared to July 2013.

Cass uses data from $22 billion in annual freight transactions processed by its information processing division to create the index. The data comes from a Cass client base of 350 large shippers.

“The softness in the freight transportation market in July should not be seen as part of a longer-term trend downward. Even prior to the recession, the summer months were slower before the season rise for the holidays,” Wilson noted in the report.

She also blamed part of the slowdown on retailers with high inventories “being cautious about the orders they are placing for new stock.”

Wilson is positive about the back half of 2014, saying a turnaround in China’s purchasing managers index for export orders and growth in the U.S. manufacturing sector will be good for the freight industry. Improving GDP numbers and household wealth are also good signs.

“The first estimate of second quarter GDP was a growth rate of 4.0 percent, a significant turnaround from the 2.1 percent contraction in the first quarter. Corporate profits are strong, while consumer sentiment and household wealth are rising, putting both groups in a position to spend more this year,” Wilson wrote.

TRUCKLOAD OUTLOOK, WALL STREET
The second quarter 2014 Stephens TL (truckload) Index was up 3.6% compared to the 2013 quarter. Brad Delco, a transportation industry analyst with Little Rock-based Stephens Inc. and author of the report, said the gain was the 17th consecutive quarterly year-over-year increase.

“The 2Q14 increase was the highest year-over-year increase in the index since 1Q12 driven by a number of factors, in our opinion, including driver shortages, slightly improving demand and regulatory driven supply constraints,” Delco and associate Ben Hearnsberger noted in the report.

The quarterly increase was also up 2.1% on a sequential basis, better than the historical average second quarter increase of 1.3%. Delco estimated a third quarter sequential increase of 0.8%.

Among the nine truckload operators included in the Stephens TL Index, the average weekly revenue per tractor during the second quarter was $3,344, up from $3,189 in the first quarter and well above the 2013 average of $3,170. The nine carriers include Lowell-based J.B. Hunt, Tontitown-based P.A.M. Transport, and Van Buren-based USA Truck Inc.

Wall Street is also bullish on the transportation sector. The Dow Jones Transportation Average closed Tuesday at 8,414.89, up more than 0.11%, but trading near the peak of the 52-week range. During the past 52 weeks, the index high was 8,577.16 and the low was 6,212.54. Tuesday’s close was up 35% over the 52-week low.

Wal-Mart Stores management has expressed no public interest in acquiring Family Dollar, which has takeover offers from Dollar Tree and Dollar General. The lack of interest by Wal-Mart doesn’t mean the retail giant will go unscathed by the results, according to retail experts.

The pending consolidation in the dollar store segment will leave one of the bidders out in the cold and their largest competitor — Wal-Mart Stores — watching from the sidelines.

“The imminent acquisition of Family Dollar by either Dollar Tree or Dollar General is by no means a non-event for Wal-Mart. Although these stores are called dollar stores, in many communities they have come to serve as convenient general stores for shoppers who don’t want to make a trip to town or would prefer not to traverse a supercenter for a couple of items,” said Carol Spieckerman, CEO of Newmarketbuilders.

She said Wal-Mart is laser focused on cementing its reputation for value but it has perhaps been even more obsessed with grabbing shoppers’ shorter fill-in trips — a market valued at $415 billion. Last fall, Wal-Mart reported that it had roughly 10% of this fill-in market  which accounts for 40% of the nation’s grocery spend.

The obsession by Wal-Mart is warranted. Spieckerman said a “mega dollar store could really spoil the fun in markets where Wal-Mart has not opened small format stores.”

Fierce Retail executive editor Laura Heller told The City Wire that Wal-Mart’s biggest competition isn’t from Amazon, but rather the dollar stores who are nipping away at Wal-Mart’s core customer.

Heller said at every turn Wal-Mart’s moves have been to woo shoppers from dollar stores, hence the opening of more smaller formats and the guaranteed low prices via Savings Catcher and other ad matches.

She said with 55% of Walmart U.S. sales being grocery items, dollar stores could hurt Wal-Mart more than Amazon or Target. She said Wal-Mart execs are closely watching the dollar store consolidation given their core customers greatly overlap. 

Spieckerman likes Wal-Mart’s game plan of building their own network of smaller stores, and said Dollar Tree, even it’s left out, is a bigger problem for Wal-Mart. Speickerman said Dollar Tree is a digitally-aware, multi-format chain with international presence. Those three attributes set it apart from Dollar General and make it the bigger threat.

“If the combined (dollar store) entity nailed localized price competitiveness in the markets where Wal-Mart has Express and/or Neighborhood Market locations, price will become the determiner. This is why Savings Catcher really is Wal-Mart’s ‘killer app’ at the end of the day,” Spieckerman said. “Dollar General’s digital coupon program is slick but I don’t see it as a match for Savings Catcher.”

She said Wal-Mart’s second line of defense is its site-to-store capabilities which are already making its small format locations more productive than several dollar stores and one reason why Walmart wasn’t tempted to join the bidding party for Family Dollar.

Wal-Mart said its Neighborhood Markets have the ability to generate up to 10 times the sales of a dollar store. The smaller Express stores generate 5 to 6 times the revenue per unit because of their site-to-store, pharmacy and fuel offerings.

At the first Fort Smith Library Board of Trustees meeting following the failed millage increase election on Aug. 12, the board and management of the library are expecting budget cuts for the 2015 fiscal year.

The library millage failed, 64.02% to 35.98%. If it had passed, it would have provided an additional two mils of funding, or $2.8 million, to the library beginning in fiscal year 2016.

Jennifer Goodson, executive director of the library, told trustees she was not prepared to recommend future action regarding the possibility of another vote on a millage increase.

"My recommendation to this group is that we take a little bit of time, process this result and how we feel about it and what we want to do next," she said. "I don't know that a week later is the time to start to make some decisions and figure out exactly what we want to do."

For Goodson, "my thoughts have been all over the map, really, for the last week and I'm not in a position where I can make a recommendation to you about exactly what we should do next."

Trustee Ben Shipley agreed with Goodson's statement, but added that it was time to reduce the library's need on dipping into reserves. For the 2014 fiscal year, board Chairman Robert Kelly said the amount of reserve funds tapped by the library to balance its budget totaled $100,000.

"But I do think the time has come in the next weeks or months that we will have to be very serious about continuing to go into the hole, reserves to maintain the same level of services. I mean, I think the people have spoken and we take that seriously and respect that. But I think we also as prudent board members have to not raid the reserves,” Kelly said.

The budget for the library totals about $2.7 million annually and comes from a single mil of property taxes, as well as 6% of the city's portion of the one cent county-wide sales tax.

"And I'm not saying that we need to make drastic cuts or anything, but I do say that I think we need to act prudently and we will," Shipley added.

Goodson said the cuts would be included in the 2015 budget as it is prepared in the coming months.

"As far as preparing for the 2015 budget, I'll be preparing that budget with the expectation that we'll draw little if any reserves in 2015. And that we'll begin to just make the adjustments that will be necessary for us to allow income and expenses to match."

As part of the upcoming budget cuts, Goodson said she would work with department heads "and get their recommendations as far as what they see as appropriate in those areas because it will need to be a team project in order to make that happen."

Asked what next steps the library could take regarding a future millage vote for a possible lower amount, Kelly would not provide an answer saying that it was too soon.

"I guess immediate action on part of the board to seek additional funding, my sense is to get through this year and get through the budget process as suggested and then see where we are with that. I guess I'm just saying I don't see any real rush to have any kind of a study session in regard to a millage or seeking additional funds at this point. Maybe after the first of the year."

The Fort Smith Board of Directors approved three items related to infrastructure improvements at the site of the planned Arkansas College of Osteopathic Medicine.

The two resolutions and one ordinance have the city applying for a grant through the U.S. Department of Commerce's Economic Development Administration's (EDA) 2008 Disaster Relief Program for water, sewer and road improvements in the area of the college at Chaffee Crossing.

The grant is for $1.5 million, but City Administrator Ray Gosack said the grant requires matching funds from the city. The city approved matching funds of $1.5 million in an appropriations ordinance, as well as a resolution that established a memorandum of understanding that states the Western Arkansas Planning and Development District would administer any awarded grant funds.

"Shortly after the development of the college was announced, the Western Arkansas Planning and Development District began working with the U.S. Economic Development Administration to identify the possibility of federal grant funding to assist with the development of the college," Gosack explained.

"And the (EDA) is excited about the benefits that the medical college will bring to western Arkansas and eastern Oklahoma. So they have identified the possibility of providing $1.5 million in federal funding to assist with the development of the medical college."

The addition of the college, to be built by the Degen Foundation using funds largely acquired through the sale of Sparks Health System to Health Management Associates, will completely change the economic and health landscape in the region, Gosack said as he explained the purpose for the grants.

"As you know, this medical college will be a game changer for our region. It will improve our region's healthcare immensely. It has economic development benefits from the creation of high paying jobs, which is one of the Board of Directors' interests,” Gosack said. “That's one of the interests of the Economic Development Administration. And it will also result in economic activity from the construction work. The Degen Foundation anticipates spending at least $70 million to develop this medical college campus. So it's a very important project for the future of not only Fort Smith, but western Arkansas and eastern Oklahoma."

The college expects its first class of students in the fall of 2016 should it receive accreditation.

In other business, the Board approved a resolution accepting bids for the purchase of fleet trucks and vehicles totaling $1.075 million.

Included in the fleet purchase is one CNG-based (compressed natural gas) truck and three hybrid vehicles.

In explaining the reason for only purchasing one CNG-based vehicle even though the Board has said it would like to incorporate even more into the city fleet, Gosack explained that it was somewhat cost prohibitive with no grant funding available to cover conversion kits or factory installed CNG equipment.

"We do a cost benefit analysis for a rate of return on making the investment in CNG vehicles. As you know, generally a CNG vehicle is about $9,000 more to purchase than a conventional fueled vehicle. So in order to get a return on that up front investment, the vehicle has to be driven a certain number of miles each year. And one vehicle we're recommending meets those thresholds, so it makes economic sense to purchase that vehicle as a CNG-fueled vehicle. The other vehicles do not have the mileage thresholds to warrant an increase in expense up front to fuel with CNG."

Gosack also notified the Board that a joint meeting of the Fort Smith Board of Directors and the Sebastian County Quorum Court was likely to be called in September to discuss the hiring of an outside management company to run the Ben Geren Aquatics Center.

According to Gosack, the city and county administrations were likely to recommend hiring an outside firm to handle marketing and day-to-day management for a fee that has yet to be determined.

Immigration, the federal budget and national defense were among the most discussed topics Wednesday (Aug. 20) at a town hall event held by U.S. Rep. Steve Womack, R-Rogers, at the Blue Lion (formerly Second Street Live) in downtown Fort Smith.

The topic of immigration saw a frank discussion between Humberto Marquez, who described himself as the child of immigrants who was brought the United States when he was young and does not know life outside of the United States, and Womack.

"I study international business. I hope to bring more business here in Arkansas, I want to create more jobs for Americans. So you're limiting our potential, the 3,800 young people who are living here in Arkansas (who could benefit from immigration reform), you are limiting the potential of them," Marquez said of Womack's vote against a program known as the Deferred Action for Childhood Arrivals (DACA).

According to the U.S. Citizenship and Immigration Services website, the program has been around since 2012.

"On June 15, 2012, the Secretary of Homeland Security announced that certain people who came to the United States as children and meet several guidelines may request consideration of deferred action for a period of two years, subject to renewal. They are also eligible for work authorization. Deferred action is a use of prosecutorial discretion to defer removal action against an individual for a certain period of time. Deferred action does not provide lawful status," the website reads.

Womack explained to Marquez that his vote against DACA was more about standing up to what he sees as an overreach of executive power by President Barack Obama.

"I want you to look at that vote from purely the perspective of the concept of do we have an imperial government? Is the president of the United States such the supreme leader that if he doesn't agree with the laws passed, duly passed by both chambers and signed into law by any president, that he has the single ability to change those laws to fit whatever objectives that he might have – political or otherwise. I want you to look at that vote not in terms of whether it's against you, but whether it's a vote to send a message to the president that he does not have the executive power to just basically ignore the laws of the land of the United States of America that for too long have been ignored by the administrations. And not just his, but previous administrations, both parties are affected here,” Womack said.

Womack continued by saying he believes the issues brought up by undocumented teens and college-aged students, also known as dreamers, should be addressed. But the issue of immigration reform can only be addressed once the border is secured.

As he spoke on the topic, Dr. Paul Beran, chancellor of the University of Arkansas at Fort Smith, spoke up and said based on his 45 years as a Texas resident, he did not believe the border would ever be secured. He said as long as individuals believe there would be economic opportunity in America, individuals would continue attempts to cross the border.

"These kids here, and the ones that fall into that category, we can argue about all day long. About President Obama, I don't disagree with the construct of your argument. I really don't disagree with that. But beyond how many angels can dance on the head of a pin kind of question, which I think that is essentially, what you're dealing with are people," Beran said, adding that he saw no reason Womack and Congress could not address the issue of what to do about dreamers and border security at the same time.

No one came out of the meeting with changed opinions, but as Beran told Womack after the meeting, "at least we're having the discussion."

When the topic of the budget was discussed, Womack said the only vote he regrets during his time in Congress was the vote that authorized the sequestration that forced massive budget cuts across all areas of government, including national defense.

"I voted for the Budget Control Act. Now, keep in mind, this is 2011. I'm (in my) second year in Congress. I'm still wet behind the ears, a little naive. Never in the wildest dreams did I think that the super committee (charged with finding budget cuts) would fail to get at least a substantial percentage of that $1.2 (trillion) in cuts. And I believed that in my heart and because I believed that in my heart, that rendered the sequestration piece of the law kind of moot, that it wouldn't be triggered. And if it did, it would be sort of inconsequential in size. But the super committee got nothing done. Zero. And that triggered sequestration and I had this great sinking feeling in my heart. I just voted for a bill… it's the one regret that I have," he said of the 2,700 votes that he has cast.

"(I regret it) not because I don't believe we need to pay our creditors and raise the debt ceiling, but because of the realization that the defense department was going to be the recipient of such drastic cuts in their budgets."

Two fire stations built and paid for using sales tax proceeds in Fort Smith and Van Buren came in at nearly the same price per square feet, with the Fort Smith fire chief noting the use of a construction manager for savings on the city's newest firehouse.

The city of Fort Smith most recently completed construction of station 11 at Chaffee Crossing on Feb. 24, 2014, at a cost of $3.18 million, according to figures provided by city Communications Manager Tracy Winchell and Fire Chief Mike Richards.

The costs included in the total are $2.733 million for construction, $177,023 for architecture and engineering work, as well as printing of plan documents and a state review of the project, and $3.941.15 in legal fees paid to the Daily and Woods Law Firm.

The facility is 12,560 square feet, which breaks the cost down to $253.17 per square foot. The total cost of the fire station is 3.7%, or $158,617, below original estimates, according to a memo Richards wrote to the Fort Smith Board of Directors in April following completion of construction.

"This savings was made possible by the decision to use the Construction management method of delivery," he wrote. "The Construction Management method of delivery allows value engineering and planning on the front end of the project thereby potentially saving the owner money at the end of the project. This method proved very successful and resulted in very few issues throughout the project.”

In all, the city paid a construction management fee of $179,500 to Beshears Construction. The company also served as the general contractor on the project.

While the final figures for Fort Smith's newest fire station came in 3.7% below estimates, the latest addition to the Van Buren Fire Department has come in slightly above budget but still on par with Fort Smith's price per square foot. According to Van Buren Mayor Bob Freeman, fire house number four, which was opened July 25, came in $132,624 over budget for a final total of $2.603 million. For the 10,310 square foot building, the price breaks down to $252.44 per square foot.

Van Buren did the same as its southern neighbor and hired a construction management firm to oversee the project and enlisted a three rounds of value engineering on the project. What hiked the price, the mayor said, was the decision made to have Crawford Construction install a new water line as part of the project.

"Where the fire station location was (on Northridge Drive), the water line wasn't extended down. So we went ahead and had Crawford Construction extend it instead of (contracting) it separately," Freeman explained.

While soil and environmental tests were completed before construction began, he said it also became apparent during construction of the new fire station that additional fill dirt was needed at the site since it would be housing heavy fire apparatus. An additional expense included fire hydrants at the urging of Fire Chief Jerry McAdoo, Freeman said.

While Van Buren and Fort Smith saw different financial results from the use of a construction manager for completion of the cities' respective fire stations, Freeman said Van Buren's overage is no different than running into unexpected costs in the construction of a home.

"Anybody who has ever built a house or done anything (like that) knows that once you get into it, you say, 'What we should have done is this,' and you make the change and move on. The base contract, as far as that was concerned, actually came in about $13,000 under what the base was and what the cost estimate was. These were just some changes we added to it while we were doing it.”

Final payment on the Van Buren fire house was to take place following approval of a resolution at Monday's (Aug. 18) city council meeting, but Freeman tabled the resolution due to a concern regarding condensation build up in the lighting at the new fire house.

"The chief told me Monday morning that we have some moisture condensation in some light fixtures. … We felt the condensation issue had to do with cold air from the ventilation system. So we have Crawford Construction look at it. Right now, it looks like a thermostat setting. But I decided to table it. As of yesterday, it was getting resolved.”

Both fire houses were built following the passage of sales taxes. Following the additions, Fort Smith now has 11 fire stations and Van Buren has four.

Heineken USA is among at least five adult beverage companies to hang a shingle near Wal-Mart’s corporate offices in Bentonville amid the retailer’s push to boost income and improve margins with more alcohol sales.

The White Plains, N.Y.-based adult beverage company will celebrate a grand opening on Sept. 15 at its first Northwest Arkansas office at 3201 Market Street, Suite 106, in Rogers. Local experts say others are soon to follow given Wal-Mart plans to double alcohol sales by 2016.

“We are excited to be expanding our presence in Northwest Arkansas to further align with Walmart & Sam’s Club strategies,” said Todd Pastor, a Heineken national account director serving Wal-Mart and Sam’s Club.

This move to Northwest Arkansas has been a gradual 18-month transition as the company built out its local sales team. Heineken USA said the need for an office made sense given its plans for future growth. The local team will primarily serve Wal-Mart and Sam’s Club.

“We were privileged to work with Heineken USA and Todd Pastor. A lot of thought, time, and creativity went into their space design, and we were excited to be a part of that. The Northwest Arkansas real estate market continues to improve. Leasing activity is up and there is more investor interest than we have seen in quite some time.” said Steve Fineberg, president of Steve Fineberg & Associates.

‘VENDORVILLE’
Cameron Smith, CEO of Cameron Smith & Associates, said his firm also worked with Heineken in preparation and staffing for this new office.

“According to our records about five new offices have opened here over the past year among those companies who play in the adult beverage space, creating roughly a dozen jobs,” Smith said.

Smith said Heineken’s move is part of the “Vendorville” attraction.

“We know for a fact that several other adult beverage companies are doing due diligence at this time and exploring the benefits of operating a sales office in Wal-Mart’s backyard. We expect more suppliers will follow,” he said. “Just as grapes planted close together are more productive, vendors in Bentonville’s Vendorville make each other better. Being gathered in Northwest Arkansas allows them to work with the best of the best.”

ANSWERING WAL-MART CALL
Wal-Mart’s campaign to be tops in beer sales began in 2012 when the retailer hosted a conference in Bentonville for the adult beverage industry. At the time Wal-Mart sought to double its alcohol sales by 2016 and grab a larger piece of the $46 billon U.S. beer market.

The retailer made a conscious effort to bring on more buyers for the adult beverage category and increase the amount of shelf space and promotional area for adult beverages in its stores.

It is also one of the categories that saw price investment by Wal-Mart as noted by former Walmart U.S. CEO Bill Simon during a speech given last fall at the Goldman Sachs investor conference.

“We continue to look for opportunities to invest in price. A great example for us is adult beverages. We have been continuing to move prices lower on that and seeing returns in the form of market-share gains in that category,” Simon noted.

ATTRACTING MILLENIALS
In November 2013, Latriece Watkins, divisional merchandising manger over alcoholic beverages, told The City Wire that the retailer’s efforts were helping to draw in more Millennial shoppers. She said the Millennials were also having an impact on the entire adult beverage industry.

“I grew up drinking Kool-aid as a kid and they like flavored coffee and craft beer,” she said.

Watkins said roughly two years ago beer makers were tired of losing share to wine and spirits with sweeter flavor profiles. She said this is when they began to innovate with more flavored beer such as hard lemonade and seasonal brews.

She said Wal-Mart has traditionally sold beer and wine in the back of the store, but Millennials see that as inconvenient, so they began making other choices for that product. When the retailer moved the adult beverages out front, Watkins said they noticed more beer and wine sales. 

“When they are in the store getting their other items, if they see the beer, they buy it,” Watkins added.

In Wal-Mart’s recent earnings call new Walmart U.S. CEO Greg Foran said improved adult beverage sales were part of the reason sales and traffic comparables were up 5.6% and 4.1%, respectively, in the quarter at its smaller Neighborhood Market formats.

Other adult beverage companies that have already set up shop in Northwest Arkansas include Anheuser-Busch, Constellation Brands, MillerCoors and Pabst Brewing Co.

For realtors and mortgage loan officers fearing the impacts of Van Buren's loss of eligibility for the Rural Development Loan program, it appears the city and others across Arkansas have been given a one year extension before any changes occur.

The news came from U.S. Sen. Mark Pryor, D-Ark., who released a letter from Department of Agriculture Secretary Tom Vilsack granting Van Buren, Russellville, Cabot, Paragould and Searcy an extension for the program.

According to a press release from Pryor's office, "USDA Secretary Tom Vilsack agreed to provide a one-year delay on 'rural in character' designations pertaining to a rural housing program that enables low-income Arkansas the opportunity to become homeowners."

News first came in late July that Van Buren would lose eligibility for the loan program, which allows individuals meeting requirements to be able to purchase a home for no money down.

Vickie Davis, an agent with Sagely & Edwards Realtors in Fort Smith, told The City Wire that eligibility requirements state that a community with no more than 35,000 residents must not be considered part contiguous part of a metropolitan statistical area. If the Arkansas River did not divide the two cities, Van Buren would be a contiguous neighbor of Fort Smith and is included in the MSA.

A meeting held July 31 at the USDA's office on Brooken Hill in Fort Smith featuring USDA State Director Lawrence McCullough, confirmed the loss of the loans for the community of 23,000.

Pryor criticized the USDA decision to eliminate Van Buren and the other Arkansas communities.

"USDA was out of bounds in denying these communities access to rural housing programs. Suspending its actions is the right thing to do. It allows Arkansas households to continue to benefit from this successful housing program and provides time for stakeholders to be part of the decision-making process,” said Pryor. “I appreciate Secretary Vilsack’s willingness to ensure the ‘rural in character’ designations are done right.”

Vilsack, in a letter to Pryor, said "work on determinations and any designations that would make a place ineligible solely based on 'rural in character' criteria" would be delayed until Sept. 30, 2015, ensuring another year of eligibility for the five communities in question.

"As you (Pryor) noted, USDA's rural housing programs provide many very low- and low-income rural Americans the opportunity to become successful homeowners. Therefore, "rural in character" designations have a direct impact on the lives of individuals, well-being of households, and housing options in communities across the country. I welcome this opportunity to review decision-making processes related to 'rural in character' determinations," Vilsack wrote to Pryor.

He said factors included in determinations "typically include population, density, and other data, some of which is subjective, as well as feedback from the public and stakeholders."

During the one year suspension, Vilsack said he would direct the Rural Housing Service (RHS) to "review and modify its determination procedures." Vilsack said situations like the Van Buren meeting would be addressed during this year-long suspension.

"RHS will also evaluate and standardize its communications processes to ensure there is appropriate opportunity for public comment and consideration before final designations are issued," he wrote.

Following is the full text of Vilsack's letter to Pryor:

"Thank you for your letter of August 5, 2014, concerning "rural in character" designations and the impact these designations can have on communities' eligibility for benefits under Department of Agriculture (USDA) Rural Housing Service (RHS) Section 502 Single Family Housing direct and guaranteed loan programs. In response to your concerns and others recently voiced, through September 30, 2015, I am suspending work on determinations and any designations that would make a place ineligible solely based on "rural in character" criteria.
 
"As you noted, USDA's rural housing programs provide many very low- and low-income rural Americans the opportunity to become successful homeowners. Therefore, "rural in character" designations have a direct impact on the lives of individuals, well-being of households, and housing options in communities across the country. I welcome this opportunity to review decision-making processes related to "rural in character" determinations.
 
"Factors considered in making "rural in character" determinations typically include population, density, and other data, some of which is subjective, as well as feedback from the public and stakeholders. Final "rural in character" designations are made at the discretion of State Offices, which have ready access to local information and residents, as well as knowledge of community characteristics. To ensure the reasonableness of these designations, the RHS program handbook (HB-1-3550 Paragraph 5.3C) directs State Offices to notify the public of any designation changes proposed.
 
"As stated above, through September 30, 2015, I am suspending work on determinations and any designations that would make a place ineligible solely based on "rural in character" criteria. During this suspension, RHS will review and modify its determination procedures. RHS will also evaluate and standardize its communications processes to ensure there is appropriate opportunity for public comment and consideration before final designations are issued. Absent further legislative changes, all other eligibility updates resulting from the newly enacted "rural area" definition in the 2014 Farm Bill will proceed for fiscal year 2015; on October 1, 2014, RHS will update the program area eligibility maps with only those changes unrelated to "rural in character" ineligibility determinations.

"Thank you again for sharing your concerns on this matter and for helping to make USDA's housing programs a success."

Texas-based Plains All American announced Thursday that it plans to build a 440-mile, 20-inch crude oil pipeline across Arkansas, running from the company’s terminal in Cushing, Okla., to the Valero Corp.’s 195,000 barrels per day refinery in Memphis.

Plains said it will invest nearly $900 million in the so-called Diamond Project, which will provide capacity of up to 200,000 barrels of domestic sweet crude per day. The pipeline, which will also give the Texas midstream operator access to Valero Energy Partner’s pipeline system in the Memphis area, is expected to be completed in late 2016.

Since acquiring the Memphis refinery from Tulsa-based Mapco in 2005, refinery giant Valero said it has invested more than $245 million to upgrade the facility. The refinery primarily processes low-sulfur content, light, sweet crude oil that produces regular and premium gasoline, diesel, jet fuel and petrochemicals.

With a direct connection to Plains’ Cushing in central Oklahoma, Valero gains access to the nation’s largest crude oil storing facility. Cushing is one of the world’s largest trading hubs for West Texas Intermediate, the highly sought-after light sweet crude that serves as the benchmark for oil pricing on the New York Mercantile Exchange.

Plains said the Diamond Pipeline project is strengthened by a long-term shipping pact it has with Valero and a related contract for storage and terminal services at the company’s Cushing facility. Valero also holds an option until January 2016 to become a partner in the Diamond Pipeline and purchase a 50% stake in the project.

Construction of the pipeline will also enhance the refinery’s long-term ability to produce gasoline, diesel and jet fuel for the greater Memphis and eastern Arkansas area, Plains officials said.

Plains announces this deal at a time when Wall Street is closely watching pipeline companies and other midstream operators that transport or are involved in the transportation, storage, and wholesale marketing of crude or refined petroleum products. The increased production of crude oil and natural gas from U.S. shale plays, including Marcellus, Eagle Ford, Bakken, Woodford and Fayetteville development in Arkansas, has put huge pressure on U.S. pipeline and midstream operators to keep up with capacity.

For instance, the U.S. Energy Information Administration forecasted last week that U.S. total crude oil production will averaged an estimated 8.5 million barrels per day (bbl/d) in 2014 and 9.3 million bbl/d in 2015. The 2015 forecast represents the highest annual average level of oil production since 1972. Natural gas plant liquids production is expected to increase from an average of 2.6 million bbl/d in 2013 to 3.1 million bbl/d in 2015.

The increased domestic production of crude oil and natural gas from U.S. shale plays has also contributed to a significant decline in U.S. dependence on imported oil from places like Saudi Arabia, Iraq and Venezuela.

The total share of U.S. petroleum and other liquids consumption met by net imports fell from 60% in 2005 to an average of 33% in 2013, the EIA said. The Department of Energy statistical arm said it expects the net import share to decline to 22% in 2015, which would be the lowest level since 1970.

In addition, Kinder Morgan announced a recent $70 billion tax-friendly deal to bring all of its energy assets under one corporate umbrella. Like Plains, Kinder Morgan is a public traded, master limited partnership that owns and manages midstream energy infrastructure across the U.S.

Kinder Morgan said its deal will “be a valuable acquisition currency and have a significantly lower hurdle for accretive investments in new energy infrastructure.”

“In the opportunity-rich environment of today’s energy infrastructure sector, we believe this transaction gives us the ability to grow KMI for years to come,” company chairman and CEO Richard Kinder said.

Like rival Kinder Morgan, Plains also owns an extensive network of pipeline storage and gathering assets in key crude oil and natural gas producing shale plays, transportation corridors and major market hubs in the U.S. and Canada.

Once its deal is completed at the end of the year, Kinder Morgan-owned subsidiaries will have a stake in or operate nearly 80,000 miles of pipelines and 180 terminals across the U.S.

Plains said it moves over 3.5 million barrels per day of crude oil and natural gas products on its pipelines.

Both pipeline giants are based in Houston.

Mercy Fort Smith officially opened its newest $5.3 million clinic on Cliff Drive Thursday (Aug. 21) and with it, took the next step forward in its efforts to expand the use of technology in medicine, but may not be enough to close the gap on a doctor shortage.

Matt Keep, chief operations officer of Mercy Fort Smith, said the new Cliff Drive clinic was essentially "plug and play ready."

"The rooms were built to be big enough to accommodate that type of setup and all the cabling and wiring is there for it. So we can go live on that when that becomes developed and available. We won't have to do any retrofitting or anything like that down the road. It's ready to go now."

Having rooms ready for telemedicine will bring new specialties to Fort Smith patients through the cooperative efforts of Mercy Health System hospitals across Arkansas, Missouri, and Oklahoma using Mercy's new Virtual Care Center under construction near St. Louis.

The care center, expected to be complete in 2015, brings doctors of all backgrounds into Fort Smith and other communities to treat a variety of ailments, Mercy Primary Care Medical Director Dr. Sean Baker said.

"They can use the data, they can work in conjunction with other physicians in that location to get the data they need to help make a diagnosis for that patient. Sometimes that patient may have to travel outside of the community for service (such as surgery), but when they get back to this community, they can revisit with that doctor after that service. So virtual care allows us to bring things to Fort Smith that Fort Smith probably never have access to otherwise. They can do it right here in this clinic," Baker explained.

As for how telemedicine works, Baker said essentially doctors use technology to see what is happening with a patient's body in real time.

"We have the ability to listen to hearts from a distance and digitally record that sound. We have the ability to send information electronically, like ultrasounds. Even looking in someone's ears can be done remotely. It's very neat how that technology works. It doesn't take away the need for that person to person contact, but with consultation and working as a team, we can achieve those needs with virtual medicine."

Baker and Keep were frank when discussing the doctor shortage Fort Smith has experienced, with Keep going so far as to say that even with the addition of a clinic on Dallas Street last year, the new Cliff Drive clinic officially opened for business Thursday and a clinic under construction at Waldron and Free Ferry Roads, it would not be enough to alleviate the region's doctor shortage.

"The best way to get access even to our specialists or those virtual specialists is by having a robust primary care base. You're going to have to do that. And we don't right now in our region. It's not just Fort Smith but all around us, as well. We're making a dent now, but you look back at the past maybe 10 years we probably had more doctors retiring or leaving than were actually coming in," Keep said.

"I think what we're doing now is we're probably adding more than we're losing now. So I guess we've got positive momentum. Is it enough to close the gap? Probably not. That's probably why virtual care and these other things are going to have to come into play. But we're certainly making a dent in it."

Even though the healthcare system in the region is underserved due to shortages, it is becoming more efficient thanks to technology, Baker said.

The primary way it is able to be more efficient is thanks to the use of electronic medical records, which centralizes a patient's records for the entire Mercy system in a single cloud-based system that updates immediately as procedures are completed, medications are prescribed or action is needed for a patient.

"Before we had this, you would have to wait on faxes or phone calls and sometimes that wouldn't happen that day. Sometimes it might not happen for a couple of days before you got the information and knew someone had been seen somewhere else. Sometimes it wasn't until you saw them in followup,” Baker said.

The improved technologies and efficiencies have allowed Mercy to improve its patient capacity to higher and higher levels, as well.

At the Dallas Street clinic, for example, Keep said it was seeing about 1,500 patients per month when it opened last year. Today, it sees 3,000 patients per month. The hospital itself is also seeing record patient load necessitating the need for technology to improve care and efficiency that will be on full display for patients using the clinic and its 24 exam rooms on Cliff Drive. And he said that would continue with investment in additional clinics and technology.

The Cliff Drive location is equipped for between eight and 10 providers and houses three family medicine providers, as well as an internal medicine specialist.

The planned Arkansas Colleges of Health Education presented the first renderings of the layout of its proposed $60 million college of osteopathic medicine at a meeting of the Fort Chaffee Redevelopment Authority on Thursday (Aug. 21).

Kyle Parker, ACHE president and CEO, presented the plans as an update to the FCRA, which donated the school's 200 acres in what is now known as Chaffee Crossing, across the street from the proposed site of a third Fort Smith high school near Chad Colley Boulevard.

The update was the first glimpse inside preliminary plans for the planned osteopathic school, which has increased from a plan for 60,000 square feet to 100,000 square feet which would house a planned physicians assistant program that could take on its first group of students in 2018, only two years after the planned opening of the osteopathic college.

On the first floor, Parker noted that students would have access to two 200-seat auditoriums, as well as group study areas.

"These are set out for the students to go in. A lot of (teaching) is done in group sessions in medical school. That's where they will do a lot of breakouts, the students themselves," he said.

The first floor will also contain "a library that won't have a book in it," Parker said.

"Everything is totally electronic. There will be access to over 60,000 electronic books and periodicals in here and these are some study areas," he said.

All instructional areas on the first floor, Parker said, would be recorded for reference by students of the osteopathic school, adding a touch of technology that is becoming more and more common in academic settings.

"Everything is recorded, both audio and visual. Everything is recorded and can be brought up on iPads or iPhones, accessible anywhere in the world. All of that can be reviewed in the student study group areas when they are preparing themselves for examinations."

The first floor will also house a cafeteria area, as well as academic and administrative offices and support areas, such as loading areas for cadavers. The second floor will house cooling units where cadavers are stored, as well as the secured lab where only instructors and students will have access due to HIPPA restrictions, which Parker said do not end until an individual has been buried.

"There's 21 tables in here where the donors are dissected, worked on," Parker explained as he described what cadavers would be used for in the learning process.

Instructor offices outline a large portion of the second floor, which also includes an "simulation lab." According to Parker, the four room is the home of life-like mannequins that cost about $90,000 each and allow students to get first-hand experience in administering drugs, setting broken bones and dealing with medical emergencies.

"We'll have five of those - a man, a woman, an infant, a toddler and a woman that has a baby. These are the top of the line because of the gift we got from a family. These will bleed, they'll have heart attacks, they'll break bones, you can actually inject them."

The software to run the mannequins, he said, runs $600,000.

Additional space on the second floor will include exam rooms where students will be examined on their ability to diagnose and treat patients, who will actually be actors from the community hired by the school.

The third floor will house the planned physicians assistant program tentatively scheduled to take its first students in 2018, as well as 7,000 square feet for research and additional space for administrative offices.

Parker presented not only an update on the building of the campus, which he said would be built by two local construction management firms working together (he has declined to name the firms at this time), but also a timeline for construction.

He said bulldozers should start working on the site Sept. 15, which would get the site pad ready for construction in January 2015.

A planned completion date of April 2016 is scheduled, with a move in scheduled for July 2016. Classes for the proposed osteopathic school are tentatively scheduled to begin in Aug. 2016.

The cost of the building parker discussed Thursday is between $21 million and $23 million, which he said ACHE would use cash to pay for. He also said cash reserves had been set aside to meet accrediting agency requirements.

Around the time construction begins in January, Parker said the school would be prepared to announce its deans. He said many were already hired, though announcements could not be made until the individuals had fulfilled their current contracts at other medical schools.

Once work begins and the school eventually opens, Parker said the impact will be felt with an economic impact of $75 million to $100 million per year.

Final artist renderings could be released within the next seven to 10 days, Parker said, adding that the exterior "skin" of the building was still being designed.

A tax reform issue and a stronger infrastructure bill await Congress when it returns from its summer recess early next month, U.S. Sen. John Boozman, R-Ark., told the state’s mayors Thursday (Aug. 21).

Boozman spoke to about 50 mayors during the Arkansas Municipal League Executive Committee meeting at the Hilton Garden Inn in Jonesboro.

The tax issue is the so-called Marketplace Fairness Act, which would help cities and counties collect sales taxes from online purchases, officials said at the meeting. Boozman said the issue is multi-faceted.

“The issue is critical to cities, but also to small business,” Boozman said.

Boozman noted that the average sales tax in Arkansas is nine percent, with the compliance time for businesses dealing with the tax even more frustrating. He said that a test vote in the Senate earlier this year on the bill during a so-called “Vote-a-Rama’ session was successful.

The bill would likely be brought up in a lame-duck session of Congress, after the November general election, Boozman said. The bill would also likely be tied to a continuation of a ban on Internet taxes that is working its way through the House.

Boozman took a question from Little Rock Mayor Mark Stodola, about the Internet tax bill’s future in the House. The bill would likely be subject to strategy and compromise as legislators look at the bill, Boozman said. After the presentation, Boozman sat down with Talk Business and Politics to discuss the issue.

He said technology has changed a lot of the dynamic in everyday life, even in commerce.

“Both (Marketplace Fairness and the Internet tax ban) are important. If you would have asked me 10 years ago, I would have said no because the Internet was in its infancy,” Boozman said. “But the trend is great. But as it has developed, we have had a whole generation raised on the Internet. There must be a cost comparison and competition, but it also must be fair.”

Earlier this week, opponents of the Marketplace Fairness Act — the National Taxpayers Union and R Street Consultants — released poll results from Arkansans on the issue.
The polling firm, Mercury Polling, surveyed 400 likely Arkansas voters on June 1-2, 2014, and found that only 28% supported a measure to make online retailers collect sales taxes on Internet purchases, while 59% opposed.

The U.S. House version of the bill has been pushed by U.S. Rep. Steve Womack, R-Rogers. Womack said in a June 2013 interview with The City Wire that his bill is not a new tax.

"If this bill passes, it has no affect on people whatsoever until a state takes action," he said. "It doesn't raise any revenue, it doesn't raise a red penny. It just empowers the states to collect the taxes that are due that have been legally implemented."

Officials with Sparks Health System announced Thursday (Aug. 21) a push to hire 50 nurses before Halloween as part of an effort to expand surgical and critical care services and better manage overall growth in demand.

Shelly Cordum, the chief nursing officer for Sparks in Fort Smith and Summit Medical Center in Van Buren, said Sparks plans to soon add 32 beds for medical and surgical patients and at least 10 beds for critical care. Franklin, Tenn.-based Community Health Systems is the parent company of Sparks and Summit.

Positions open for nurses include Licensed Practical Nurses (LPN), Registered Nurses (RN) and unit assistants. Part of the effort to recruit new nurses and retain existing nurses is a tuition reimbursement package up to $5,000 for those pursuing a nursing career and up to $2,500 for those seeking a college degree in other fields.

“We’re very blessed right now that we are expanding and we have some very good programs” that help nurses grow their careers, Cordum said in an interview with The City Wire. “We really want to offer this to people so they can have true career growth with us.”

Pay for LPNs with several decades of service can total around $70,000, not including pay for certain types of shift work and other benefits. For nurses with two years or more experience and certain qualifications, the pay can total more than $50,000 a year. A unit assistant could start at around $20,000 a year.

Cordum said the regional health system has 824 registered nurses, 139 LPNs and 144 unit assistants. She said the more than 1,100 nurses are busy keeping pace with a system that saw more than 6,700 people cycle through the emergency room in July, and the growing number of people accessing healthcare now that insurance is available to more residents.

“We do team nursing at Sparks because it takes a team to take care of people nowadays because they are sicker than they have ever been,” Cordum said, adding that people who previously did not have health care coverage are entering medical systems and they are often “really, really sick.”

Cordum said the hospital system, like most systems around the country, must do more to attract and retain quality employees. Part of that for Sparks is offering flexible work schedules allowing nurses to work over the weekend and be free most of the week.

“You have to be creative on that work-life balance,” Cordum said.

Younger generations also have a different concept of work. Younger nurses who can travel may work a year or two at one hospital and then travel to a hospital in another city and repeat that for several years.

“The younger generation, they do like to travel. ... They don’t pick an employer and stay with them for 20 or 30 years,” she explained.

Cordum, who moved to the Fort Smith area in September 2012 and has been in the medical field since 1982, said nurse turnover at the hospital system ranges between 5% and 8% a year, which she said is “very average” in the nursing field.

The medical field has been a growth sector in the Fort Smith region, although in recent years employment has been inconsistent. In Education & Health Services, employment was 16,300 during June, down from 16,500 in May and below the 17,000 during June 2013. Annual average monthly employment in the sector has steadily grown since 2005 when it reached 14,000. In 2012 the average was 17,000, but fell slightly to 16,800 in 2013. Employment in the sector reached a record 17,300 in October 2012.

The Sebastian County Election Commission took action Friday (Aug. 22) to be in compliance with state election laws following an attorney general's opinion that stated the commission erred in a previous vote to close specific polling locations.

The opinion by Attorney General Dustin McDaniel, D-Ark., stated that without a unanimous vote of the commission, a polling location could not be closed.

Previous votes by the commission to close polling sites at WestArk Church of Christ, Haven Heights Baptist Church, New Providence Church, Sacred Heart Church, the Barling Senior Center and a polling site in Bloomer were not unanimous.

While McDaniel's opinion stated that elections, including the primary, were still valid, the commission took steps to right the wrong Friday.

A vote was first taken to re-open all the sites, with each then being voted on individually.

The sites closed by a unanimous vote were WestArk Church of Christ, Haven Heights Baptist Church and the Barling Senior Center. The other sites were left open.

Election Commissioner David Damron was the sole no vote on closing Bloomer and New Providence, with Election Commission Chairman Lee Webb and Election Commissioner Rita Howard Watkins voting to close the sites.

The only polling site up for a vote to draw protest was the site in Bloomer, where local residents and Rep. Charlotte Douglas, R-Alma, whose district includes Bloomer, spoke to the commission in an effort to save the site.

"This one from Bloomer Baptist Church to Union Baptist Church is a little over 9.1 miles, but it takes a little over 17 minutes to make that 9.1 miles because of the winding, curvy road which isn't in very good shape," said resident Bill Warren.

Webb said the decision to close the Bloomer site and consolidate at Union Baptist Church was partly due to the budget handed to the commission by the Sebastian County Quorum Court.

But resident Jeff Stubblefield said the sites should be chosen based on servicing citizens and not based on money.

"Polling sites are for the people. We're not in the money making business at a polling site. All of us want to be able to vote in the most least-restrictive (way)," he said.

Webb said there were also issues with compliance at Bloomer Baptist Church regarding compliance with the Americans With Disabilities Act.

As a solution, Douglas said an alternate polling site had been found less than a mile away at Bloomer Free Will Baptist Church. A representative from the church was at the meeting to speak on the issue and Webb said consideration of the church as an alternate would have to be discussed at a future meeting.

In other business, the commission certified the Fort Smith Public Library's millage election with a final vote count of 1,544 voting to increase the millage from one mils to three and 2,744 voting against the increase.

The commission oversaw the drawing of ballot positions for the November general election following adjournment of its meeting.

Arkansas Democrats honored the two terms of Gov. Mike Beebe Saturday evening (Aug. 23) while rallying its base with less than three months until the Nov. 4 general election.

First Lady Ginger Beebe, who introduced her husband, said if it was not for term limits, the governor likely would have never made the journey from the Arkansas Senate to the attorney general's office to his first opposed election in 2006 against former Republican U.S. Rep. Asa Hutchinson, who is challenging Democrat Mike Ross in this year's race.

The first lady said while Beebe will never again serve in elected office, he was not leaving behind his passions, giving a glimpse into his retirement.

"Mike thinks the next chapter of his life is going to be filled with playing golf everyday, spending time with family. But I, as the wife, know better," she said. "While he'll never be elected to an office again, he also will never quit fighting for Arkansas."

She said the fight will include working for improved quality of life "and how we see ourselves."

Former President Bill Clinton, who spoke by video, said Beebe's time in office was led with a "steady hand."

"During the last eight years, I've watched with real pride as Gov. Beebe has guided our state through some pretty difficult terrain," he said. "But regardless of what our national economy or the courts or the federal courts placed before Arkansas, Mike always remained a steady hand, guiding us through and making sure that Arkansas would emerge stronger on the other side."

DEMOCRATIC IDEALS
Beebe himself spoke of his upbringing as the child of a single mother and becoming a lawyer and legislator and how the opportunities he was given were possible due to what he said were Democratic policies enacted at the state and federal levels.

He said his own story was the story of many Arkansans and many in the Statehouse Convention Center in Little Rock Saturday for the annual Jefferson-Jackson Dinner, the Democratic Party of Arkansas' largest fundraiser of the year.

"Half the people in this room could probably tell the same story. You came from backgrounds that were less advantaged, that had obstacles, that had to overcome certain things to get where you are, significant economic depression – probably in your personal lives, certainly in your household. Many of you from single parent families, many of you from folks that weren't educated and yet you grabbed your part of the American dream."

Reflecting on his decades of public service, the governor said his life "wouldn't be worth anything" if he turned his back on Democratic ideals after achieving success in the private sector.

Discussing his almost eight years as governor, Beebe said much of the success he has claimed could be owed to experienced and energetic staff, both young and old, who "created synergy."

ELECTION PUSH
Throughout the evening, most of the candidates and speakers reflected on Beebe's time in office, noting that the best way to honor his legacy was to elect Democrats in November.

Ross, who officially received the Democratic Party nomination for governor at Saturday morning's Democratic State Convention, said Beebe has laid the ground work and he was prepared to build upon that.

"I know that we can build upon the foundation that Gov. Beebe has laid and we can do better," he said.

The former Prescott congressman repeated many of the themes from his stump speech delivered around the state, touting raising the state's minimum wage, protecting the Private Option – the state's expansion of Medicaid – and working with the General Assembly in a bi-partisan fashion.

Democratic U.S. Sen. Mark Pryor, who is facing a tough re-election fight from Republican U.S. Rep. Tom Cotton, reflected on his relationship with Beebe.

"I've known Mike as a lawyer in Searcy, I've known him as a state senator, I've known him as attorney general and now as governor. And he has been excellent in all the things he's done," Pryor said, reminding the crowd of Beebe's highest in the nation approval rating of any sitting governor.

"One of the reasons he has that is because of the fact that he's sensible, he constructive, he's smart and he's decisive. He's exactly the kind of leader Arkansas wants."

Beebe said for all the praise heaped on him Saturday, it was hard for him to narrow a single accomplishment from reducing taxes on groceries to seeing that the Private Option not only passed the General Assembly, but funding was renewed in 2014.

But he said Arkansans should not look back on his time in office and neglect the future.

"It's about tomorrow. We should always honor our heritage," he said, noting former U.S. Sens. Dale Bumpers, David Pryor and Clinton.

"All those people led the way and should be honored and revered and respected, but we should not spend too much time looking back. We should spend more time looking forward."

IMMIGRATION PROTEST
And while the evening was meant to honor Beebe, it started with protests outside the Statehouse Convention Center with a small group of protestors championing passage of the DREAM Act, which would provide a path to a legal status for undocumented children and students.

Humberto Marquez, who spoke during a town hall event featuring Republican U.S. Rep. Steve Womack earlier in the week in Fort Smith, said the protests outside the Democratic fundraiser Saturday evening were meant to affect change in local policies regarding undocumented immigrants.

"Right now undocumented students are paying out of state tuition, which for us is very unjust. These are students who are graduating from Arkansas high schools and they are on top of their class. And they are getting treated unfairly by paying out of state tuition and sometimes, international fees," Marquez said.

In response, former FEMA Director James Lee Witt said in a press conference before the dinner that he was in favor of comprehensive immigration reform.

"I think we need an immigration policy in this country. If we continue to postpone that, it will continue to hurt our economy. … I think Sen. John McCain had a great bill that should be looked at and moved forward. I think we need a pathway to citizenship, but also I think we need to protect our borders at the same time as we move forward with this."

In a statement, Ross stopped short of calling for in-state tuition for undocumented students in Arkansas, though he said college overall should be more affordable.

"We should do everything we can to make college more affordable for any Arkansas student who studies, works hard and graduates from an Arkansas high school, and, as governor, I'll work in a bipartisan way to make college more affordable for more Arkansas families."

Republican gubernatorial nominee Asa Hutchinson announced the formation of a “Teachers for Asa” coalition, which identified that one of its efforts would be to find a long-term fix to the public school employees health insurance problem.

“As a product of Arkansas public schools, I understand firsthand the critical role education plays in developing our young people,” Hutchinson said in a Saturday (Aug. 23) press conference on the state capitol steps. “In fact, all four of my children finished their high school education in the Fort Smith public school system, and Susan, my wife of 41 years, has spent a good deal of time in Arkansas public schools as a substitute teacher.”

“Teachers for Asa” is a coalition of teachers, administrators and others who are “invested in the education of our children and who believe that Asa Hutchinson is the best choice, not just for Arkansas, but also for Arkansas’s teachers,” a press statement said.

The coalition will advise Hutchinson on issues of importance to teachers, his campaign said. Those issues included:
• Voicing issues important to teachers;
• Providing input on specific policy concerns;
• Sharing Hutchinson’s plans for education with other teachers and administrators;
• Working to register teachers to vote; and
• Mobilizing supporters to vote.

“Our teachers will help us reach these goals. We are competing for jobs in the global marketplace and these jobs will flow to states best equipped with the skilled workforce and educational system that matches the critical technological training of the modern workplace. Arkansas has the opportunity to be one of these states,” Hutchinson said.

Hutchinson has touted a plan to expand and provide more emphasis on computer science and coding courses in Arkansas schools. State lawmakers have twice met in a special session in the past year to make changes to a funding shortfall in the public school employees insurance trust fund.

Teachers Kayla Davidson of Jonesboro and Cindy Allen of Fort Smith have been appointed honorary co-chairs for “Teachers for Asa.”

“As a teacher, I know the struggles and opportunities facing educators in this state,” said Davidson. “Arkansas teachers need a leader who will work with us to ensure that teachers health insurance is protected and that we have a voice at the state capitol.”

“The number of hours and the amount of work many teachers put into their students often goes unnoticed, but the challenges they face every day are very real,” added Allen. “Asa Hutchinson is exactly the kind of leader teachers need in Little Rock. He will fight for us and fight for the future of our health care. I am certain his vision for education, especially his plan to put computer science in every Arkansas high school, and the state as a whole is what we need to grow our economy and create jobs.”

Mike Ross has staked part of his candidacy on being the “education governor.” He has touted a plan to expand pre-K access across the state and earlier received the endorsement of the largest teachers’ union in the state, the Arkansas Education Association.

The Democratic Party of Arkansas, which is holding its convention in Little Rock this weekend, responded to Hutchinson’s announcement on Saturday.

“Congressman Hutchinson still hasn’t apologized to Arkansas teachers when he insulted them after seeking their endorsement and not getting it – and he still owes them an apology today,” DPA spokesman Patrick Burgwinkle said.

His comments referenced a statement from a Hutchinson spokesman earlier this year after Ross received the AEA endorsement. At the time, Hutchinson’s press secretary referred to the teachers’ union as a “left-leaning organization” and said its endorsement for Ross was a case of the AEA and its national affiliate, the National Education Association (NEA), putting “their liberal ideals ahead of our kids.” Hutchinson stood by the characterization when asked about it.

Hutchinson also said he wasn’t seeking the AEA endorsement, but merely accepting an invitation to talk to the teachers’ group when he interviewed with them. He said he would accept invitations from other groups he’s not aligned with to discuss policy issues related to the Governor’s race.

“If they invite me to meet with them, then I’m happy to do so,” he said. “I believe in meeting with political adversaries because you learn from them. They’re part of the political operations in Arkansas, so absolutely I’ll meet with them. I just didn’t expect their [AEA] endorsement.”

“Teachers endorsed Mike Ross because he’s running to be the ‘education governor’ and because Congressman Hutchinson has called increasing access to pre-k the ‘wrong direction’ for Arkansas, voted to cut college aid when he was in Congress and even proposed watering down academic standards in Arkansas. Arkansans know they can’t trust Congressman Hutchinson to improve education in order to create good-paying jobs of the future,” the DPA’s Burgwinkle said.

Tyson Foods could lose around $500 million in government contracts if found guilty in and ongoing criminal probe by the Environmental Protection Agency over the recent release of toxic chemicals at a plant in Monett, Mo.

Since 2000 the U.S. government has awarded Tyson Foods more than $4.7 billion in contract business, but guilty findings in the Monett investigation could end all or some of that lucrative business arrangement.

Tyson Foods doesn’t have a sterling eco-friendly record, and the number of incidents in recent years in Missouri raise concerns among environmental circles. The meat giant’s latest mistake sent Aliment tainted wastewater into the city’s wastewater plant which released high levels of ammonia into Monett’s water system. The ammonia killed an estimated 100,000 fish in a four-mile stretch, according to lawsuits filed in the case. 

“We’re cooperating with the Environmental Protection Agency in its investigation, as we have with state and local agencies regarding this incident. Unfortunate events like this bring increased awareness to the environmental risks we manage. Following this incident, we've worked with all of our feed mills on procedures designed to ensure this does not happen again,” said Worth Sparkman, a corporate spokesman for Tyson Foods.

Tyson said the Aliment, an additive used in chicken feed, was hauled to the Monett site from its feed mill in Aurora and inadvertently mixed in Tyson’s pretreated wastewater system. The state’s report notes that Tyson did not immediately notify the city’s wastewater plant of possible contamination, but instead tried to clean up the accident once the mistake was realized.

Scott Edwards, a litigator for the Food & Water Justice arm of Food and Water Watch, said Tyson and other poultry plants and wastewater mishaps are nothing new. He said the criminal probe this time is more serious in nature. 

“They (Tyson) will find a scapegoat to blame, pay the fines and move on. I will be shocked it they actually lose their government contracts given their influential lobby,” Edwards said.

He said the EPA could send a strong signal by pulling contracts if Tyson is found criminally responsible. The threat is real as noted in Tyson Foods‘ Aug. 7 10-Q filing with the federal Securities and Exchange Commission. The filing notes a civil lawsuit filed by the Missouri Attorney General’s office.

“That lawsuit alleges six violations stemming from the incident and seeks penalties against us, compensation for damage to the stream, and reimbursement for the State of Missouri’s costs in investigating the matter,” according to Tyson.

Edwards said the civil suit is likely to result in a hefty fine, with some promised safeguard to prevent future incidents. But, the problems will likely continue to resurface in other facilities because the Band-aids applied don’t usually stick.

It is the EPA action that could be a big financial hit.

“The U.S. Environmental Protection Agency has also indicated to us that it has begun a criminal investigation into the incident. If we become subject to criminal charges, we may be subject to a fine and other relief, as well as government contract suspension and debarment. We are cooperating with the Environmental Protection Agency but cannot predict the outcome of its investigation at this time,” Tyson noted in the filing.

As if that is not enough, actions against Tyson could come from other sources.

“It is also possible that other regulatory agencies may commence investigations and allege additional violations. Finally, we may be subject to claims from the city of Monett for causing it to violate various municipal regulations and for damages to the city’s treatment system,” Tyson noted.

Edwards said proving criminal intent is harder to do than having Tyson plead to negligence. 

The EPA said its criminal enforcement division has a 90% conviction rate and is responsible for pouring through documents, computer records and collecting samples in order to bring those responsible to justice.

PREVIOUS SETTLEMENTS
Tyson is no stranger to environmental issues. The nation’s largest meat company  operates more than 60 processing and slaughter facilities across the U.S. In Missouri Tyson operates five facilities and employs some 4,700 workers. Two of those Missouri plants have recorded prior accidents in which Tyson settled.

• April 2013
The EPA and the U.S. Department of Justice announced a $3.95 million settlement with Tyson Foods from accidental chemical releases of anhydrous ammonia at facilities in Missouri, Kansas, Iowa, and Nebraska. Between 2006 and 2010 there were eight separate incidents involving anhydrous ammonia. Tyson agreed to purchase $300,000 worth of emergency response equipment for first responders in communities with significant environmental justice concerns in which Tyson operates facilities.

• November 2012
Tyson discovered a fish kill during an inspection of tributary to Muddy Creek, resulting from chlorine toxicity from its poultry processing plant in Sedalia, Mo. Between 200 and 300 fish were killed from the toxic wastewater leak. Tyson cleaned the site by adding 26,000 gallons of potable water back into the stream. The state charged Tyson $3,367 for extra man hours overseeing the work.

• June 2003
Tyson plead guilty to 20 felony counts and settled with the EPA and the Department of Justice for $7.5 million for violations of the Clean Water Act. Tyson admitted to having illegally discharged untreated wastewater from its poultry processing plant near Sedalia. Mo. into a tributary of the Lamine River.  

Under two pleadings, Tyson agreed to pay $5.5 million in penalty to the federal government, $1 million in penalty to the state, and $1 million to the Missouri Natural Resources Protection Fund to help remedy the harm caused by the illegal discharges. 

In addition, Tyson has agreed to hire an outside consultant to perform an environmental audit and then to implement an enhanced environmental management program based upon the audit’s findings to assure that the Sedalia facility will remain in compliance with all applicable environmental laws and regulations.

Between 1996 and 2001, Tyson repeatedly discharged untreated or inadequately treated wastewater from its Sedalia plant in violation of its permit. The Missouri Department of Natural Resources cited the plant several times and the State of Missouri filed two lawsuits against Tyson in an effort to stop its illegal discharges. Tyson continued to discharge untreated wastewater through its storm drains, in spite of the company’s assurances that the discharges would stop and even after numerous warnings, administrative orders, two state court injunctions, and the execution of a federal search warrant at the Sedalia facility, according to the settlement records.

PATTERN OF MISHAPS
Tyson acknowledged a September 2013 settlement of $305,000 with the Department of Justice over a North Carolina facility that dumped about 210,000 gallons of rendered chicken byproducts into Hunting Creek, a tributary of the South Yadkin River in 2010.
The North Carolina state environmental agency fined Tyson $8,375 for the incident. 

Between July 28 and Aug.12, 2011, Arkansas Department of Environment Quality notes that it inspected Tyson’s wastewater collection system near at its Clarksville, Ark., plant. The AEDQ report notes that raw wastewater had entered an unnamed tributary of Potlicker Creek causing pollution and violating Arkansas’ Water and Air Pollution Control Act. 

AEDQ notes that Tyson addressed the problem by pumping out 1.031 million gallons of water from Potlicker Creek and spreading about 1,250 pounds of lime over the land areas to help with the odor. Tyson said then it was minimizing the risk of future breaks from happening again with plans to reinforce pipes in the system.