Highlights of the Fort Smith Board of Directors Meeting 3/3/26
At the Fort Smith Board of Directors meeting held 3-3-26 with Director Christina Catsavis absent, the Board voted unanimously to accept a modification agreement to the consent decree. Major changes in the modification include
an 11.5 year extension of the deadline to fulfill the consent decree requirements. The deadline would go from 1-1-27 to 6-30-38.
instead of requirements to fix specific numbers of sewer lines and manholes each year it would require a specific average over 3 years
required rate increases in years 2030 and beyond as necessary to comply (unless there are other funding sources to offset the need)
imposition of a shot clock on the EPA to submit a statement of position if they disagree with a dispute raised by the City
This issue was discussed at the 2-24-26 study session meeting.
Lavon Morton spoke in support of the modification. He expressed confidence in bond funding being able to cover the expenses needed to complete the requirements saying “The stage is set to carry this through all the way to the end.”
Crystal Cadelli spoke and said that there is “little choice” but to accept the agreement but expressed her concerns about the funding to finish all of the projects.
Director Martin asked if there is any language in the financial management plan section of the agreement that says that the City would have to raise rates after 2031. Acting City Administrator Dingman answered that there is not, that the only required rate increases included are the ones through 2030 that have already been approved by City ordinance.
Director Kemp expressed his support for the agreement and his hope that after the agreement puts Fort Smith back into durable compliance with the consent decree that the consent decree enforcement will be turned over to the State. He said that voters who voted for the sales tax for consent decree sewer work and bonds are “expecting” that the Board will approve the modification.
Director George Catsavis asked how long the City has been under the consent decree. Water Resources Director McAvoy answered 11 years and 2 months. Director George Catsavis asked how much money has already been spent on the consent decree in that time and what percentage of the requirements have been completed. McAvoy answered about $130 million has been spent and that 40% of manholes and 30% of line work has been completed. Dingman added that 100% of the required assessments and much of the capacity and maintenance projects have also been completed. Director George Catsavis asked what would happen if the projects are not done by the new deadline. The City’s consent decree attorney Paul Calamita answered that then the City would need to go back to the agencies for additional time but that at that point they would be negotiating from a position of being in compliance. He said that the modification agreement “gives us a very fair chance to be successful.” McAvoy added that the Capital Improvement Plan schedule for the projects was based on a plan to complete them in 10 years, so the agreement leaves some “extra breathing space.” Director George Catsavis expressed concerns about the potential $15 million-$25 million in stipulated penalties. Calamita said that he can “see no scenario” where those extremely high fines actually have to be paid. He said that with the “excellent efforts” made by Fort Smith including raising rates and passing the sales tax that the stipulated penalties will be “very modest” or (less likely) could even possibly "go away” entirely.
Director Settle called the agreement a “good modification.”
Mayor McGill said that the modification is “a long time coming” and “gonna put us in a great place.”
The Board voted unanimously in favor of a zoning change for 5300 Heather Ridge, the north end of the Treetops development, for High Pointe at Kelly Ridge, to allow for 2.98 acres in the interior of the property to be developed for mixed use multi-family residential and commercial including businesses such as a restaurant, salon, laundry cleaner, and fitness studio. The commercial area will be up to 18,000 square feet. The remaining 13.94 acres of the property would remain with the existing uses.
Developer Trevor Harris said that the development is focused on the Foreign Military Sales Program families with families from Finland moving in already and more on their way and discussions underway with more families from other countries involved in the program. He said that many of those families are one car households and that the development aims to be a “walkable community” and the commercial area is to provide walkable “convenience” for the families of the participants in the FMS program who keep the car while they are at work at the nearby base.
Director Martin expressed support for the plan and called it a “good opportunity for the City.”
Director Settle asked if the pool that had been discussed in previous zoning discussions about the development is still included in the plans. Engineer on the project, Jackson Goodwin, answered that it is. Director Settle asked if the deli/convenience store that is anticipated for the commercial use space is to offer wares/dishes from the FMS families’ home countries. Harris answered that it is, that the plan is for it to offer a bit of “home away from home.” He also said that the pool will only be for residents of the development, but that the commercial area will be available to everyone.
The Board voted unanimously without discussion for a zoning change for 7208 Mahogany that will allow the vacant church building to be used for a business that specializes in services for foreign exchange students.
The Board voted unanimously to repeal the contract with Royal Ridge for installation of the additional water slides at Parrot Island. Separate sets of bids will be taken, one for the foundation, structures, and mechanical systems, and one for the aquatics plumbing, pumps, and pool equipment. The repeal of the bid and bidding is in response to the lawsuit resulting from the no-bid contract being issued to Royal Ridge.
Crystal Cadelli spoke and expressed her desire for the City to focus on the consent decree and water infrastructure instead of the water park.
Chris Cadelli spoke against the water slides and in favor of the repeal of the contract.
There was no discussion from the Board on the issue.
The Board voted unanimously to apply for Community Project Funding federal funding through Congressman Womack for the replacement of water meters. The grant could be for up to $10 million and may require a 25% local contribution from the City.
Director Kemp voiced his support for applying for the grant.
The Board voted unanimously without discussion to contract with Colin Baenziger for up to $33,500 for the national recruitment of candidates for the vacant City Administrator position.
The Board voted unanimously without discussion to contract with SCS Engineers for professional air compliance services at the landfill for $127,600.
The Board voted unanimously without discussion to purchase the UMO fare collection and trip planning system for the Transit buses. The initial one-time cost will be $99,047.75 and the ongoing costs of the 3 year agreement with 2 optional renewals will be $50,000 per year with 3% annual increases. Features of the fare system that are not present in the current system include contactless payment through cards, cell phones, and printed paper QR code tickets, ability to purchase fares online, and the capability for built-in fare capping. The Transit will still continue to also accept cash fares. The UMO system can also be expanded to offer fare gift cards through retail stores in the future if desired. The trip planning app offers complete journey plans where passengers can input a destination and get full directions of where to get on what bus at what time and what bus to transfer onto when if a transfer is needed and walking directions to and from each stop and destination involved. The system will be implemented gradually over 6 months.
The Board voted unanimously without discussion to purchase multiple replacement police vehicles. The Criminal Investigations Unit will purchase 3 unmarked GMC Terrain Elevation SUVs for $85,200 from Everett GMC of Bryant, 2 unmarked Ford Maverick trucks for $58,286 from Randall Ford, and 2 marked Dodge Durango SUV K9 units for $197,806.38. The Patrol Special Operations Division will purchase 2 Dodge Durango SUVs and 2 Dodge Ram 2500 trucks for a total of $249,020.96 from Breeden Dodge.
During the Officials Forum section of the meeting, Dingman mentioned that the Fort Smith grant application for the Boring Company’s Tunnel Vision Challenge has made it through so far to be a Top 16 finalist for the grant.
