Agenda Highlights 2/14/23
The Fort Smith Board of Directors study session meeting to be held on February 14, 2023 will begin with an update on trails including the results of the recent online survey of local residents conducted by Laneshift regarding bicycling and walking. Mobility Coordinator Micheal Mings, Roger Holroyd, Deano Traywick, and Nancy Raney will participate in the discussion.
The Board will hear a presentation comparing options for the City’s auto and property insurance coverage. The presentation will be made by a representative from First Western who has been contracted to consult on insurance matters.
Then the Board will have two discussions that are rescheduled from the 1-31-23 meeting agenda due to that meeting being canceled for inclement weather. The first is a discussion regarding a potential water rate study. Arkansas Act 605 requires that a rate study be submitted to the Arkansas Natural Resources Commission by June 30, 2026 and it will be mandatory that the rate increases recommended by that study are imposed within a year of the study being submitted if the increases will be less than 50% and within 2 years if the increases will be over 50%.
The City is allowed to do a rate study of its own volition at any point in time before June 30, 2026 and does not need to submit it to the state before the deadline. So if a study were conducted sooner, the City could use the results for its own purposes (including determining rate increases) without needing to submit it to the State early or being forced to enact the mandatory rate increase the State would require at that time. A study could be used to provide better information to make plans and find solutions. Aside from impending Act 605 related concerns, it is generally recommended that rate studies be conducted every 5 years to account for things like growth and inflation.
Then the Board will review the current water and sewer fees and discuss possible changes to the fees. Many of the proposed changes to be discussed are increased and additional fees. Some of the notable proposed changes include increasing the account activation fee from $30 to $50, increasing the reconnection fee from $30 to $75, instituting an $8 fee for customers who have paper bills mailed to them instead of only receiving emailed bills, increasing the deposit required for hydrant meters used for construction from $150 to $5000, instituting a $100 fee for missing or broken locks on meters that have been disconnected for non-payment, dramatic increases in fees for water tap installation for new construction, instituting a $1500 fee for meter tap closure, instituting a $50 fee for meter inspection if a customer asks for an inspection and it turns out there is nothing wrong with the meter, instituting a $100 meter testing fee if the customer requests a meter test and it turns out the meter is not reading improperly, increased sewer tap fees for new construction, instituting fees to close a sewer tap, instituting fees pertaining to Fat Oil and Grease generators and haulers, starting imposing fees on other utility contractors who damage City water and sewer lines while digging to install their utilities, and ending the winter averaging (charging the actual sewer usage all year, so customers that want to water their lawns might want an irrigation meter and irrigation account).
