Highlights of the Fort Smith Board of Directors Meeting 10/24/23

At the Fort Smith Board of Directors meeting held 10-24-23, the Board voted unanimously to increase the amount of Industrial Development Revenue Bonds that Owens Corning is allowed to issue for the expansion of their Planters Road facility from the $115 million authorized in October 2022 to up to $240 million.

The Board voted unanimously to deny the appeal of the Planning Commission’s approval of a zoning change for 6101 Kinkead and uphold the Planning commission’s decision to allow for the building of an activity center for the River of Live Pentecostal Church of God. The issue was discussed at the 10/17/23 study session.

The Board voted on zoning changes for 9916 and 10018 Highway 271 South to be developed for a truck repair shop. The issue was discussed at the 10-17-23 study session. The property is about a half mile outside of the city limits and one building out of the six planned for the project has already been constructed without first obtaining a permit. The permits necessary to occupy the buildings will be approved if the property owner meets conditions including running an 8 inch water line and install fire hydrants as required by the Fire Code, erecting an 8 ft fence, and planting trees along Highway 271. The property’s owner, Denny Altes, had filed an appeal to the Planning Commission’s original denial of his request for zoning changes and the requirements that would be needed to get the permits. Altes met with Planning last week and Planning and Altes came to an agreement regarding the requirements. Altes spoke with a contractor and expects the water line project will not be able to be started for about 6 months and and will cost him $200,000-$250,000 but he intends to move forward with the project and doing everything necessary to obtain the proper permits. The Board voted in favor of the zoning change including the requirements such as the water line and fencing with only Director Rego voting in opposition.

The Board voted unanimously to expand the area near the airport where there is a moratorium placed on new residential construction and to extend the moratorium to remain in effect until December 2025. The moratorium would not prohibit commercial or industrial construction in the area. It would not prohibit residential construction if it complies with sound attenuation standards. It would not prohibit demolition of existing structures, rebuilding structures destroyed by fire or storms, building decks or fencing, or additions to single family homes that don’t exceed 25% of the square footage of the house.

The extended and expanded moratorium was requested in response to a request by the Air Force that would facilitate added planes for the planned Foreign Military Sales program. The higher number of planes leads to an expanded area of noise contours. The expansion of that program would add additional economic impact.

Director Catsavis mentioned that with the old F-16 mission years ago there was a rule that required the afterburners not be used after leaving the airport property and inquired if something similar would be happening related to the new plane missions. Retired Colonel Ator who is helping the City with the Foreign Military Sales program said the expansion of the runway has made it so that the after burners after take off won’t be as needed now.

Rocky Walker representing the Greater Fort Smith Association of Home Builders spoke in opposition to the moratorium. He said they “understand it, but it hurts some of our members”. He said that residential developments take time and homes will be in demand by people coming here for the F-35 project.

A Fort Smith resident who owns a property in the Oak Hollow subdivision where a house burned down that wants to build a new house on the lot spoke about his concerns about the moratorium. It has prevented him from getting a building permit to build on his lot. He said that the has lived in the neighborhood for 4 years and is not bothered by the sound and that his neighbors say they are not bothered by the sound. Planning Director Rice assured that the resident will be able to get a permit so long as they meet the sound standards for the noise contour on their property.

John Alford spoke saying that 2 home builders have called him about it and expressed concerns. He said that people have already invested in the expectation that they would be able to get building permits. Their loans will have higher interest rates when they go to renew and that problem increases with longer waits. He mentioned one developer Mr. Cabaniss that was already in the process of seeking permits before the moratorium went into effect. Alford asked the Board for a time frame for when people will have the informational guidance they need to make investments.

Jackson Goodwin spoke about developers feeling “blindsided” by the moratorium and extension and that they should have had more time to know what standards they have to design to to meet the Sound Transmission Class (STC) standards.

Mayor McGill said that the City “Knew we’d have to be nimble and have to be flexible” and that the growth from the F-35 project is “gonna be simply great”.

Bobby Aldridge who lives in the extended moratorium area and has clients living there spoke in opposition to the moratorium. He said that developers need guidance on the STC ratings and how to meet the requirements. He also asked why it is so important to prevent new houses from being built that don’t offer the noise protection but it is okay for people to live in the existing homes without that level of protection. He asked if existing homeowners would be receiving any assistance to help them comply with the STC standards.

Administrator Geffken said that Planning and Building Services are working on guidance information on the standards and requirements to present the public. He said that there will be grants totaling about $100 million per year coming in related to the F-35 project, part of which can be used to help residents with the impacts related to the sound. Building Director Jimmy Deer said his department and Planning will meet with builders to go over what is necessary to meet the standards. He said that builders in the 65 decibel or below areas will generally already nearly meet the standards and only need very small things to meet them. But he said they “will be working diligently with” builders in the areas above 70 decibels where it is more demanding to meet the standards. Director Morton asked when building codes and requirements for each sound contour area that are understandable by homeowners as well as contractors will be published on the City website. Geffken responded that it would be available in 60 days or less. Mayor McGill said “Our staff understands the urgency of these things.”

Director Rego asked for an estimate of what it might cost to accommodate the noise reduction standards. Deer said that it varies for each project with some costing very little extra but may cost $5000-$10,000 more per home in areas with the highest decibel rating.

Director Settle reminded that they originally committed to the moratorium to get the F-35 mission and we got it. He expressed support for doing it again to get more jets and a new mission. He said that we are “about to see the boom we’ve all wanted” and praised the moratorium as an opportunity to “set the ground work for the future for the next 50 years.”

Director Martin said of the moratorium “Do I love it? Probably not” yet he recognized its importance and called it “key to our future.”

The Board voted unanimously (except for Director George Catsavis who did not vote as he was not present at the table when the votes were called) to raise the limit under which staff can make purchases without first obtaining quotes from $1000 to $2000 and whether or not to raise the amount over which the competitive bidding process must be used from $35,000 to $50,000. These changes are being enacted in response to inflation and the rising cost of goods and services.

The Board voted unanimously to contract with Steve Beam Construction for $113,193.72 to construct a patio and picnic area featuring tables and cornhole boards in Creekmore Park where the non-ADA compliant sandbox is currently located. Director Martin was happy to hear that while it is not included in this particular project or in this particular area of the park that a basketball court is still planned for Creekmore in the future.

The Board discussed contracting with TKE Elevator Construction for the modernization of the existing elevator in the downtown parking garage for $200,000. The current elevator is out of service so the building is not in compliance with ADA rules and it is hard to find replacement repair parts for because it is obsolete.

Director Morton called the expense a “massive amount of money” and suggested that the City solicit bids to try find a lower price. Director Martin agreed with Director Morton. Director Settle criticized the general spending for maintenance on the parking garage that is not a strong revenue source. He suggested instead that the parking garage be demolished and left a regular flat parking lot. Geffken added that there are other repairs to the garage that will be needed in 2024. Director Morton called parking garages a “bottomless pit of money”. Director Rego reminded that he has previously been on record questioning the City being in the parking garage business. He expressed support for the elevator repair to make it ADA compliant but said it would be the “last amount of money I’m gonna support for ongoing maintenance for this structure.” Director Settle motioned to table the issue and seek bids for the elevator work. The Board voted unanimously (except for Director Christina Catsavis who did not vote because she was not present at the table when the votes were called) to table the issue.

The Board voted unanimously to purchase a cybersecurity insurance policy from Cowbell. The policy will save the City $35,000 versus last year’s policy and the deductible will be significantly lower. The policy offers $2 million in coverage as the primary cybersecurity insurance policy and the coverage included with the property insurance coverage through Arkansas Municipal League offers an additional $2 million in secondary coverage. Geffken said “We’ll have the resources even if we needed to rebuild our entire network.”

The Board voted unanimously to contract with Royal Ridge Construction for $576,178 for improvements to Tilles Park including asphalt paving the existing walking trail, adding ADA accessible ramps at trail access points from the parking lot, replacing the existing basketball court, and new disc golf tee pads.

Director Settle suggested getting a price quote for a second basketball court,too, since it might be a savings to have a second one installed while they are already working on the site and demand for the existing court is high. Parks Director Deuster said “We will work on that.”

Director Catsavis expressed concern about funding for parks projects and asked whether there is enough reserve in the parks fund for an emergency. Deuster said that the funds for the project comes from the sales tax that is designated only for parks capital improvements. Geffken said that there is a larger than normal reserve currently built up because during the pandemic it was difficult to get projects done.

The Board voted unanimously to contract with Landscape Structures for $481,341.30 for the construction of a train themed toddler play area at Creekmore Park.

Director Morton, speaking about the parks system in general not necessarily Creekmore, suggested that fast growing, low maintenance, disease resistant trees be planted on the west side of parks to help provide natural shade.

The Board voted unanimously to purchase server hardware for the ProPhoenix CAD/RMS dispatch system from Summit Partners for $184,330.08.

During the Officials Forum section of the meeting, Director George Catsavis requested that a discussion with legal counsel regarding the City’s rights in relation to the issues with the Fort Chaffee Redevelopment Authority be added to a future study session agenda. Geffken suggested that first Director George Catsavis should meet with City Attorney Canfield one on one and get answers to his questions and then a study session could be scheduled to answer questions and have discussions if needed because the agendas are “a little backed up through the end of the year.”

Director George Catsavis asked if it is possible to permanently rezone a property forever. Canfield responded that the Board cannot bind future boards and that another Board could someday change things.

Director George Catsavis asked with the growth in that area if there is enough water and sewer infrastructure to provide water and sewer service to Chaffee Crossing for the next 5 years. Utilities Director McAvoy said that there is not. The 48 inch transmission line from Lake Fort Smith project that is set to hopefully be finished at the end of 2026 or beginning of 2027 “is key” to providing service to Chaffee Crossing. The Utilities department has been working on plans for the future and it is likely that water conservation measures may be needed during the summer months. Director George Catsavis asked about the possibility to need to place a moratorium on new water and sewer taps for Chaffee Crossing. Director Morton said “We cannot have a moratorium on building at Chaffee". He called it the “responsibility of this administration and utilities to never have to have a moratorium.” He said that conservation measures like even and odd lawn watering schedules in summer would be reasonable. Mayor McGill said “What we’re experiencing is simply growth pains.”

Director Morton and Director Christina Catsavis inquired about when the results from the water rate study will be available. McAvoy said that they are expected to be ready shortly after the draft meeting scheduled for the 8th or 9th of November.

During the Executive Session portion of the meeting, Keith Lau was reappointed to the Central Business Improvement District board and Mike Locknar was reappointed to the Mechanical Board of Adjustments and Appeals. Director Morton was chosen to be the City’s delegate to the Nation League of Cities meeting in Atlanta in November.