Highlights of the Fort Smith Board of Directors 9/10/24
The Fort Smith Board of Directors study session meeting held 9/10/24 with Director Settle absent and Director Christina Catsavis and Director George Catsavis leaving about an hour and 45 minutes into the 3 hour and 15 minute meeting began with a presentation from Tim Brooks with the Arkansas Department of Transportation regarding their plans for upcoming road work on Rogers Avenue between Waldron and South 79th that includes raised medians
Brooks said that the number of crashes in the project area is more than twice the statewide average. There were 1100 there in the last 5 years with 9 of those being fatal. 500 were rear end collisions and 400 were angle collisions. He said that the area also has poor peak hour operations. So a plan has been devised that includes intersection improvements, added lanes between 58th and 74th, sidewalks along the entire street, and raised medians from Waldron to 68th. The plan is currently waiting for environmental impact clearance and then will have to acquire rights of way and is anticipated to start in September 2026.
Brooks said that the raised medians were the main concern expressed in the public meeting about the project. He said that they are safer than two-way left turn lanes. They result in approximately 25% fewer crashes. They are standard practice for all ARDOT projects that include 3 or more lanes traveling in one direction. He mentioned that in a similar street situation in Siloam Springs crashes dropped 20% in that area and fatal crashes dropped by 80% after a similar median was installed. He said that nationwide the majority of businesses report no change in activity after a median is added. He said that medians will “require some adjustment” but the “benefits are substantial.”
He said that most large trucks making deliveries to businesses on Rogers will not have to change their routes but that some will need to. He said that emergency vehicles that currently use the two-way left turn lane as a traveling lane will not be able to do that anymore but that the additional new lanes will offer new options for maneuvering and the improved congestion will help. He also said that reduced crashes will also result in less crashes obstructing EMS.
DIrector Martin asked who would own the sidewalks to be installed and where they would be. Jason Huie who is an engineer on the project said that they would be in the ARDOT right of way and would be down the entire stretch of the project and fill in gaps where sidewalks don’t currently connect.
Director Morton asked where the new lanes would be. Huie said that they would be built on the outside in both directions, adding a third lane to both sides in the raised median area. Director Morton called the planned U-turn area at signalized intersections “very efficient.” David Baker, an engineer on the project, mentioned that those would have a protected left turn green arrow.
Director Rego asked if there would be plantings in the median. Huie said that there would not, that they would be raised concrete and ARDOT won’t fund trees or “pretty stuff” but that the City could add those later if they wanted to pay for them. He said that Fayetteville chose to add trees to theirs at a later date.
Director Martin asked about how much additional space would be added to both sides. Baker answered that it would be about 20 ft on both sides (1 lane at 11 ft, 1.5 ft curb, 3 ft green space, 5 ft sidewalk). Director Martin asked about the impact of that 20 ft on businesses. Baker said that there is no need for any business relocations and that there will be negotiations for right of way acquisitions.
Director Martin asked about the feedback ARDOT has received. Huie said that it “hasn’t been the greatest”, but that they “don’t often get positive feedback.” He said that there has been a comparatively small amount of feedback received and said “I expected more.”
Director Martin asked about the phenomenon in which when a lane is added “cars are going there” and therefore it doesn’t give the impact in reduction of traffic that was hoped for. Huie confirmed that induced demand “is a concern that some folks have.” Brooks added that the plan is designed for 20 years in the future so that even if induced demand is a factor the results will still be better than the existing street. He said that induced demand happens because some drivers who previously avoided the congestion area don’t avoid it anymore it is improved, there is some “peak shifting” to beat traffic, and some brand new trips are added. He said that there is “some validity to the concept” but that it is “very difficult to predict.”
The Board discussed entering a partnership with Entegrity for solar projects that will generate 17 million KWH of energy annually and offer a net savings of $100,000 annually and a total net savings of $3.5 million over the life span of the equipment. The projects include 2 off-site solar farms that will generate a combined 8.63 MW of energy (that will benefit from 50% tax credits), a solar canopy that would cover two rows of parking at the Farmers Market and generate 300 KW of energy (that will benefit from 30% tax credits), and an off-site solar array for Nelson Hall Homes low-income housing that is to be fully funded by the federal Climate Pollution Reduction Grant. Under State law, the current net metering benefits that allow for a 1:1 rate structure and keep large scale solar economically appealing expire 9-30-24. In order to lock in the rate structure, an agreement must be in place before 9-30-24. Entegrity was the only company that applied to partner with the City on solar projects.
Citizen Services, Sustainability, and Fleet and Facilities Management Director Robertson spoke on the topic. He mentioned that in 2024 the cost of utilities for the city was $6.3 million and it is predicted to be $6.7 million in 2025. He said that utility cost is “always the same as we budgeted or more. It never goes down.”
Robertson explained that 2 different large off-site arrays are planned because all of the City facilities are on OG&E electricity except for the Lee Creek Water Treatment Plant and the landfill are on Arkansas Valley Electric Cooperative. So they need separate arrays for each power company.
The solar projects would generate a total of 9.8 megawatts total. They would make 68% of the City’s electrical consumption be coming from renewable sources. In tandem with the efficiency projects that are planned for City facilities, the total offset could reach from that 68% up to 80%. The two large off-site arrays would be financed up-front and would not have any up-front costs for the City. The arrays would be built, maintained, and operated by Entegrity. The City could opt to purchase the arrays outright in 6-7 years. The arrays would lock in the rates for the power generated by them and paid to Entegrity for 25 years. This would be a big difference from rates for electricity purchased from OG&E and AVECC that can and do increase significantly and that there is no locked in price. The OG&E array would be 35 acres and produce 11 million kwh/year. The AVECC array would be on 15 acres and produce 4 million kwh/year.
The farmers market canopy would cost $1,452,057 (with the tax credit making it so that the City investment eventually would only be more like $1 million) but would be paid up-front out of the general fund. It would be built by Entegrity, but the City would own the canopy outright. The canopy would also provide shade and power for the farmers market. Robertson mentioned that the farmers market applied recently for a grant for a canopy, but that grant was not awarded. The current plan is a smaller scale solar energy focused project with less of the aesthetic elements. The canopy would pay for itself in savings in year 10.
The Nelson Hall array would be 5 acres and generate 1.5 million kwh/yr. It would help lower utility bills for Nelson Hall residents.
Director Christina Catsavis and Director Morton mentioned that the savings on electricity could be used towards consent decree projects.
Director Martin asked about power in high demand times like during extreme cold. Parker Higgs with Entegrity explained that the power generated from these projects would not be directly powering any facilities, but rather putting power back into the grid that results in offset credits on the bills from OG&E and AVECC. So the facilities would still stay on exact same grid power from the exact same providers so weather or high demand impacts would not be any different with the solar.
Director Rego called the projects a “unique time-sensitive opportunity” to “assert control” over utility costs. He said “I’m very much in favor of this.”
Director Morton asked about the warranty on the panels. Higgs said that there is a 30 year warranty. Director Morton asked who would be liable in the event of hale storm damage to the panels and who would have to insure the panels. Higgs said that the City would be responsible for the farmers market canopy and the Nelson Hall array and Entegrity would be responsible for the 2 large arrays. He said that the panels are tested to withstand 1.25 inch hale and that they have had some hale breakage in Alma that they promptly repaired but that it takes a “catastrophic” hale event to have problems with hale. He added that because they are only paid for what the panels actually produce that it is in Entegrity’s “best interest to keep” the panels well-maintained and quickly repaired when needed.
Director Christina Catsavis asked about how the panels are disposed of at the end of their lifespan. Robertson answered that they are recycled. Director Christina Catsavis asked if the City is limited by State law on how much solar power they can produce at net metering. Robertson said that they are and that the projects are planned specifically to be the largest that they can be and that that State limitation is why they didn’t plan for them to be any larger.
Robertson mentioned that there are also plans in the works for future solar projects for the airport and on-site solar power to provide power directly to the second police precinct and the Cavanaugh senior citizens center.
The agreement with Entegrity will be added to next week’s meeting agenda for a vote.
The Board discussed options for financial plans to be included in the request for modification to the consent decree to be made to the State and the EPA that would result in an end date to fulfill the consent decree requirements of 2036 (giving the City 10 years longer than the current end date of 2026 that the City says it will be impossible to have the work finished by). The proposal would include plans for finances for the work that would honor the sewer rate freezes from 2023-2025 and maximum sewer rate increases of 3.5% from 2026-2030 that the voters approved when they approved the 5/8% sales tax to go to consent decree sewer projects. This issue was discussed at the 8-27-24 study session meeting and discussed and tabled at the 9-3-24 meeting.
The plan proposed by the DOJ would include 160% cumulative increases. The Board discussed other options that would result in the needed funding without the dramatic rate increases. One that would keep the rates after 2030 still increasing at only 3.5% per year and would rely heavily on issuing bonds and would propose to voters that the 1% sales tax for streets and drainage that is up for renewal next year be changed so that it would instead be for 3/4 of a percent to streets and drainage and 1/4 of a percent to consent decree work and propose to voters in 2031 that the 5/8 of a percent sales tax for the consent decree be renewed at 1% would still only generate $719.8 million. The anticipated cost of the remaining consent decree work that needs done is $608 million now and with inflation is expected to actually cost around $810 million. That plan would result in a 51% cumulative sewer rate increase over the lifespan of the rest of the consent decree.
Another option mentioned that would maintain 3.5% increases each year after 2030 that would propose to voters that the 1% streets and drainage tax be changed to 1/2 of a percent with the other half going instead to consent decree work and the 5/8 sales tax for consent decree sewer work be increased to a full percent would raise $809.9 million and cover the full project cost of the consent decree. With that option the total sales tax rate would be 9.87 percent. At the end of 12 years, plans that maintain a 3.5% annual increase after honoring the rate freeze covenant would result in a $21.00 increase per month over today’s rates for households that consume 5 CCF.
Geffken also presented a plan that he called “absolutely ridiculous” that would be purely pay-as-you-go (no bonds, no borrowing) and rely only on raising rates and keeping the existing taxes at their existing allocations. It would require a 1,592% rate increase and the cost of 1 CCF sewer volume would go from $8.45 to $142.95. The average household use of 5 CCF would have monthly bills of $704 for only the sewer portion of their utility bill. He only presented that option for informational purposes and to show the need to borrow money rather than to actually suggest that the Board seriously consider that option.
Administrator Geffken mentioned that the first part of a two part Military Infrastructure Resilience federal grant already in process that will study and show where money is needed to be able to make water and sewer improvements that would be needed to provide Ebbing Air Base adequately for 14 days even in an emergency situation. Following the study, the City could apply for the grant to make qualifying improvements. Other grant recipients received significant awards, some up to $300 million. But the grant anticipation cannot be included in the consent decree modification plan to be submitted. Director Morton said that he is “hopeful” about the grant. Director Good expressed hopefulness about the grant “with the urgency of the mission.”
Director Morton said that he doesn’t want to agree to the federal suggestions that include 18% and 19% rates after 2031. He voiced his support for shifting only 1/4 of the streets and drainage tax to consent decree work for 10 years. He expressed concerns about the roads deteriorating too much if the streets tax were reduced to a half percent and said he is “more confident in 3/4.” He mentioned that with the consent decree receiving 3/8 of a percent of the streets and drainage tax plus the other 5/8 percent for consent decree work that it would add up to a whole percent for consent decree work with no change to the overall sales tax rate.
Director Martin mentioned hearing feedback from the public that the Board is “not being aggressive enough” in addressing the consent decree. Though, he expressed concerns about the effects of reduced revenue for streets and drainage resulting in a need for a “no new roads” policy and drainage risks. He said that the $50 million in the streets fund already would have to last and that projects on the Capital Improvements Plan would not get done.
Director Morton mentioned that infrastructure grants for streets and drainage that only require a 50% local contribution might be pursued to help with a smaller streets and drainage fund. Geffken mentioned that a FEMA grant is being applied for for the retention ponds planned for the former ACME Brick property.
Director Good suggested that the Board remove the local bidder preference for consent decree projects to help provide an incentive for more bidders from a wider area to bid on projects.
Director Rego voiced his agreement with Director Good about removing local preference for consent decree bids. He also shared his view that the consent decree is unlikely to be strongly affected by any federal administration changes resulting from the November election because the consent decree has been in effect through 7 EPA administrators over the course of 3 different Presidential administrations already and still remains in place. He mentioned that expected growth will result in increased usage on the roads and expressed concerns that half a percent tax for streets might not be enough. He expressed his agreement with Director Morton.
The Board will vote next week on whether to authorize the City to negotiate with the EPA and DoJ with a financial plan committing to hitting revenue targets to cover the cost for the consent decree projects in the current Capital Improvement Plan through rate increases at 3.5% after 2030, sales taxes, grants, and borrowing. Geffken advocated for the wording focused on revenue targets rather than settling on one fixed plan because there are “so many variables” and the concentration on hitting revenue targets will allow for greater flexibility. If the Board approves for the City to negotiate for a consent decree modification at the next meeting, the proposed modification would go to the EPA and DoJ by 9-30-24 and then it would be another month or 2 to hear back from them, then that agreement once finalized would come to the Board for approval and then would go before Judge Holmes for final approval.
The Board was slated on the agenda to do their annual review of the Departmental Services Objectives and Key Performance Indicators but at the very beginning of the meeting it was decided to add that item to a future study session meeting instead due to the meeting already being anticipated to be lengthy from the other items on the agenda.
In the Citizens Forum section of the meeting, Andy Posterick spoke about hearing the F35 jets from the Foreign Military Sales project for the first time this week. He thanked the Board and Administration for making the project happen and said “I love that noise.”
Sue Brucker spoke and mentioned the Board’s lack of transparency and representing stake holders. She said Fort Smith is becoming an “endangered community” in regards to freedom and financial burden. She expressed concerns about the Move Fort Smith masterplan for active transportion and Comprehensive Action Plan for traffic safety improvements being potentially harmful.
Jo Elsken spoke and praised the new Carol Ann Cross park greenway. She also spoke about recent times when City employees followed the “letter of the law” but didn’t look at the “spirit of the law”. She mentioned someone who had a tree downed on their property because of a storm being given a citation while they were working on dealing with the tree and that “offended” them. She suggested that workers who come into contact with people be encouraged to “try to see each event as an individual” and be mindful of the “spirit of the ordinance.” Mayor McGill said that he wants all employees to be respectful and courteous. He said that those incidents are “probably rare” but “still call for conversations with the Department heads.” He said Administration will take care of that.
Dan Williams spoke and said that Geffken was hired primarily because of his experience in federal consent decrees. He asked if the proposed modification to the consent decree does not get approved if the Board will be considering hiring someone else for City Administrator. Director Morton said that if the modification is not approved it “will be fault of the federal government.” Geffken said that when he was hired in 2016 the City was under an “unaffordable, too short consent decree”. He mentioned that for the first 4 years there were extraordinary troubles with the federal government’s attorney for the consent decree. Geffken said “She was lying.” But after she was off the case, they have good attorneys to deal with now. Geffken said “They actually smiled.” Progress is now being made. The technical side of the consent decree requirements has already been resolved and now they are working on negotiating on the financial side. He said “Now we have great relationships with the DoJ and EPA.” Geffken said “It’s not that I haven’t done anything.” He said that it has been “8 years of slogging through the mud to get this done.” Director Rego said that he has seen Geffken in consent decree negotiations and “He does a very good job.” He added that the Administrator’s job is not just the consent decree and mentioned Geffken’s efforts in getting the Foreign Military Sales program to come here and his hiring of “wonderful department heads.” Director Good agreed that the job of Administrator is more than the consent decree. He expressed support for Geffken and said “I’ve listened to him fight for our city and our citizens.” He said that he would not be willing to replace Geffken based on the outcome of the proposed consent decree modification. He said that to blame that on Geffken alone would not be “fair or just.”
Van Buren resident Kim Ferguson spoke and suggested that the Board of Directors needs to have more community input sessions to give people a longer time to interact when the Board and the citizens are not all tired. She also expressed concerns about lots of decisions being made by Boards and Commissions that don’t come to the Board. Director Martin assured that “It all comes to us.” He said the Boards and Commissions are in place to get public input. He mentioned the open application process for Fort Smith citizens to be appointed to the Boards and Commissions and encouraged Fort Smith residents to apply to serve on Boards and Commissions. Director Good mentioned that all of the Boards and Commissions meetings are open to the public. He also mentioned that the Board holds public input meetings on many “hot topic” issues.
