Highlights of the Fort Smith Board of Directors Meeting 11/18/25

At the Fort Smith Board of Directors held 11-18-25, the Board voted unanimously in favor of a new ordinance that would require new capital projects estimated at $100,000 or more that were not already a part of a Capital Improvement Plan approved by the Board

• to be discussed at a study session meeting before being added to a voting meeting agenda

• there must be 7 days between the study session meeting discussing the issue and the issue being put to a vote

• staff must provide to the Board scope, cost estimates, funding sources, operational impacts, and alternatives considered

• The Internal Auditor will conduct annual compliance reviews.

• Exceptions can be made for true emergencies

This issue was discussed at the 10-28-25 meeting.

Kim Fodge spoke in favor of the ordinance and suggested that the threshold be lowered from the proposed $500,000 to $250,000.

Krystal Cadelli spoke in favor of the ordinance and suggested that requiring construction management firms to go through the bidding process instead of the professional services process also be included in the ordinance.

At the 10-18-25 meeting and on the agenda for the 11-18-25 meeting, the proposed ordinance pertained to new projects not in the approved budget or CIP estimated at $500,000 or more, but the Board voted unanimously to amend the proposed ordinance to decrease the threshold to $100,000. Director Martin suggested that the proposed ordinance be amended to remove the requirement that 2/3 of the Board of Directors approve any exceptions for emergencies. He expressed concerns about having to wait to address emergencies until the Board convenes so that they can approve the exception. The Board voted unanimously in favor of that change, allowing the City Administrator to establish emergency exceptions so immediate action can be taken. Then the Board voted unanimously in favor of the ordinance with the lower threshold and without the 2/3 Board approval for emergencies.

The Board voted unanimously in favor of changes to business licenses for businesses outside of the city limits that want to do business in Fort Smith. The fee for the required business license will be raised from the current $100 to $500. The changes also eliminate the current practice of waiving of the first year’s fee. The changes are projected to raise an additional $137,900 in revenue for the general fund.

Jo Elsken spoke in opposition to the changes and expressed her concerns that it would make Fort Smith look “not business friendly” and would make businesses feel unwelcome.

Deputy City Administrator Rice clarified that the changes only apply to businesses with no brick and mortar physical presence in Fort Smith. Of the 328 licenses issued currently to businesses outside of the City, 131 are out-of-state. The license holders are primarily contractors and that the licenses are usually connected to building permits. She mentioned out-of-town roofers coming in to work after hail storms being many of the permits. She mentioned that the out-of-town businesses are not paying property taxes in Fort Smith. Acting City Administrator Dingman said that the increased fees for out-of-town licenses incentivizes having a brick and mortar presence in the city and helps local businesses compete against out-of-town firms. He said “Homegrown businesses deserve somewhat of an advantage.”

The Board voted to increase prices for some solid waste services. A recent study showed that the revenues being brought in by the Solid Waste Department fall short of the costs of providing solid waste services.

There will be no change to Fort Smith residential waste pickup services. The rate of $15.89 per household per month will remain the same. A $15 charge will be instituted for garbage trucks to return to a household requesting pickup of their bins the day after their scheduled collection day because the bins were not set out in time, were not accessible, or had trash in the recycling or yard waste bins. If the request to return to pick up bins is made later than the day after the scheduled collection day, the charge will be $25.

The gate rate at the landfill will be increased from the current $36 per ton to $50 per ton. The rate for asbestos disposal will increase to $120/cubic yard. The rate for waste at the landfill that needs special handling will increase to $60/ton. The rate for pull-off service will increase to $50 per vehicle. The currently offered discounted rate that allows for Fort Smith residents to dispose of 2 cubic yards (one level pickup truck load) at the landfill for a flat rate of $10 will be offered every day instead of only one Saturday per month.

The price for Fort Smith residents to purchase compost will stay the same ($10/cubic yard). The price for non-residents and commercial customers to purchase compost will increase to $40/cubic yard.

Commercial and industrial rates will see an annual increase starting in 2027 that either matches the US Bureau of Labor and Statistics Consumer Price Index for trash for the most recent 12 months or an increase of 5%, whichever is less. So the maximum annual increase will always be no more than 5%.

The changes will result in an estimated $3,753,100 in additional revenue.

Rocky Walker with the Greater Fort Smith Association of Homebuilders spoke in opposition to the increase in landfill gate rates. He expressed concerns about the 40% increase in tonnage cost being too high and suggested increases of only 20-25% instead. He voiced concerns about the higher cost of waste disposal for builders increasing the cost of housing. He said that for a 2000 square ft house, the increased landfill cost would result in a $2000 price increase for the home. He said that for every $1000 a house’s price increases, 8 people drop out of being able to buy it.

Kim Fodge spoke in opposition to the commercial rate increases and voiced concerns about increased costs for dumpster service for homeowners associations and small businesses.

Director Martin mentioned that companies like Waste Management and CARDS that collect trash in areas outside of Fort Smith and bring it to the Fort Smith landfill are currently able to bring that trash to the landfill for costs that are cheaper than the costs of operating the landfill. He expressed concerns that because of that places outside of the city are “getting a better deal” and that Fort Smith doesn’t need “to be incentivizing not to live in Fort Smith.” He also asked about whether it is predicted that there may be some drop in usage when rates are raised as has been seen with water rate increases. Solid Waste Director McDonald said that the regional average landfill gate rate is $53, so even at the $50 rate Fort Smith would still be slightly lower and would remain competitive.

Director Rego asked where customers might go if they were dissatisfied with the higher rate and mentioned that Sallisaw and Tontitown were probably the closest alternative landfills. He mentioned that the costs of transporting the garbage farther to those locations would probably offset any savings from rates. McDonald mentioned that for some customers the Sallisaw landfill would only be about 15-20 minutes extra drive but the customer service there is not as easy in and out. He also mentioned that the rate at Tontitown is over $73.

Director George Catsavis suggested that Solid Waste could negotiate with the local builders. He said that there should have been more notice given to the builders regarding the proposed increase so that the builders would have had more time “to mount some kind of defense.”

Director Kemp asked if it would be possible for Solid Waste to offer some sort of adjustment for local builders. McDonald said that that is “an option if the Board desires it” and that the prices listed in the ordinance are maximums and that there is the ability to negotiate. Director Kemp voiced his desire to balance the budget and his support for increased rates as a part of bringing in more revenue to achieve that objective. He suggested, though, perhaps only a 25% increase for housing builders saying that he is “sensitive to the housing market.”

Dingman mentioned that the cost to provide landfill service is $47/ton and that the increase in landfill gate fees would be subsidizing the losses on providing Fort Smith residential service so to keep the residential rates static would require a landfill rate increase. He also said of keeping residential rates the same, that once you buy a house, it “has to remain sustainable as well.”

Director Kemp asked how many houses are currently being built. Walker said that it is the “worst market since ‘08” but that there are about 60-80 new houses on the market in Fort Smith but that they have been on the market for a while. He expressed hope that the growth anticipated from the F-35 mission will improve the market for homes.

Director Martin asked about the percentage of landfill gate ratepayers that are local homebuilders versus that are waste companies hauling trash in from elsewhere. McDonald did not have the data to compare, but did answered that CARDS is the landfill’s biggest customer, accounting for about 1/3 of the landfill’s total business and that Waste Management and MSG Roll Offs are the second and third largest customers.

The Board voted in favor of the changes with all of the Directors voting in favor except for Director George Catsavis and Director Christina Catsavis who both abstained from voting.

The Board voted unanimously without discussion to contract with Western Millwright for construction on the Alleyway Rehabilitation project to improve just over 2 miles of alleyways with lighting, fencing, and permeable pavement to turn them into safer more inviting pedestrian/bicycle paths for $2,189,410 and McClelland Consulting Engineers for construction administration and engineering services on the project for $177,653. The bid from Western Millwright is significantly less than the original engineering estimate of $4,304,199. The project is fully funded through a federal Climate Pollution Reduction Grant.

The Board voted unanimously without discussion to renew NSC Containers’ non-residential solid waste permit. The permit will be for 2 years with a 5% franchise fee.

The Board voted to accept the full price offer to purchase a City owned and unused property at 7700 Texas Road. The offer is for $45,000. The buyer, Willow Properties LLC. intends to build duplexes on the lot.

Director Settle asked with the property being located across from Cavanaugh Elementary School if the school had been contacted to offer to give them the property to use for parking. Rice said that the school had not been contacted. Director Settle said that the school needs parking.

Director Kemp asked how the City is getting the word out to the community about City owned properties that are for sale. Rice said that the property was listed by Ghan & Cooper and that there were multiple offers received for the Texas Road property.

The Board voted in favor of the sale with all but Director Settle voting in favor.

During the Executive Session section of the meeting, Michelle Dodroe was reappointed to the Building Board of Adjustments and Appeals.