Highlights of the Fort Smith Board of Directors Meeting 11/19/24

At the Fort Smith Board of Directors meeting held 11-19-24 with Director Christina Catsavis attending remotely, the Board voted unanimously to remove the 4th tier residential rate from the new water rates and also set the irrigation rate at the same as the 3rd tier residential rate of $5.26 per CCF. This issue was discussed at the 11-12-24 study session meeting. The change will go into effect December 1st and start to appear on bills in January.

Andy Posterick spoke and asked about with the cost of pipes affecting the cost of delivery of water if other types of rate structures that capture the cost of the pipe rather than different types of use might be considered. Director Morton said it is “just the system we have.” He mentioned that low-income households benefit from the tiered system and that Van Buren and Greenwood have flat rates that are higher than our highest priced tier. Director Martin also expressed his interest in “exploring” “better ways of billing.”

Jo Elsken spoke and suggested the City do more education and “gentle nudging” for customers to be more conservative in their water use. She also suggested that the City encourage heat and drought resistant plantings to help reduce water use.

There was no discussion from the Board on the water rate issue.

The Board, at the request of Administration, voted to table the issue regarding whether to lease the County’s half of the Parrot Island Water Park for $1 per year resulting in the City of Fort Smith having sole control of and responsibility for the park instead of sharing control jointly and splitting financial responsibility equally with the County. This issue was discussed and tabled at the 9-3-24 meeting. This time it was tabled indefinitely. It was not added to a future agenda, but could be added when/if the Board or Administration desires to add it. Director Christina Catsavis and Director George Catsavis voted against tabling the issue. All others voted in favor of tabling.

The Board voted without further discussion to allow the convention center to offer off-site catering to their clients. This issue was tabled at the 11-4-24 meeting to allow for a change to the wording of the agreement with OVG that manages the convention center to specify that outside catering must be only in support of events booked at the convention center. All but Director Martin and Director Christina Catsavis voted in favor of allowing the catering.

The Board voted in favor of a resolution formally approving the actions taken by City Administration related to Climate Pollution Reduction Grants and confirming the allocations for the federal grant money awarded. Those actions include agreements and collaborations with other regional cities and organizations and a letter of intent aligning the City’s efforts with regional greenhouse gas reduction goals. The grants awarded included $440,000 for planning for projects which has already been approved by the board and  $14.5 million for sustainability projects including the alleyway rehabilitation project , workforce development, solar power for Nelson Hall Homes, and electric vehicle charging infrastructure that will be up for a vote by the Board on whether to accept that grant money at the 12-3-24 meeting.

Steven Kurtz spoke in support of the grants calling them a “tremendous opportunity.” He mentioned the lack of charging stations during the influx of visitors during the recent eclipse as evidence of the merit of having electric vehicle chargers. He mentioned the solar energy for Nelson Hall reducing challenges for low-income residents and the workforce development programs helping train people for good paying jobs.

Chris McRay spoke in support of the grants saying that they would “enhance quality of life.” He voiced being proud of the government overseeing proper use of tax funds.

Herbert McGill spoke in support of the grants saying they “would bring appreciation to property” in the areas helped by the grant funded projects. He praised the projects as investments in the North side of town and expressed his view that it is important for kids to see investment in the North side.

Robin McCray spoke in support of the grants and called them the “direction the city needs to go in.”

Joey McCutcheon spoke in opposition to the grants. He mentioned that Administrator Geffken applied for them without approval from the Board. He expressed concerns about the Energy and Environment Innovation Plan (EEI) committing to electric vehicles for both the government fleet and private vehicles and requiring chargers at work places. He expressed concerns about the collaboration with other cities and organizations including the agreement to report on progress, expenditures, and purchases to Metroplan making Fort Smith “subservient” to Little Rock and Northwest Arkansas.

Krystal Cadelli spoke in opposition to the grants. She mentioned the long term burden of the cost of maintenance of EV charging stations and solar panels. She suggested sewage be the focus of the City’s environmental efforts.

Chris Cadelli spoke in opposition to the grants. He voiced support for prioritizing the consent decree and sewage for environmental efforts. He expressed concerns about the cost of transitioning the City vehicle fleet to EV.

Tara McDaniel spoke in favor of the grants calling the grant projects “transformative improvements.” She mentioned the alleyway rehabilitation being good for the economy and the solar for Nelson Hall freeing up more of those residents’ money to put back into the economy. She said that the push toward EV is not forcing anyone to give up their conventional fuel vehicles. She said that EV chargers would be good for visitors to plug in on road trips. She praised the workforce development project as ensuring that Fort Smith “isn’t left behind” for industries of the future.

Carrie Salie spoke in opposition to the grants. She called the plans “Marxist US plans” and said that the plans are from the United Nations and are happening nationwide. She mentioned that there is “no climate crisis” and “no energy transition”.

Daniel Williams spoke in opposition to the grants. He expressed concerns that they would “create economic burden” and expressed concerns about increased utility costs and about economic disparity for people who cannot afford new tech. He suggested that the Board get rid of Administrator Geffken.

Valeria Kis spoke in opposition to the grants calling them a “wasteful plan.” She expressed concern that “government money dries out easily leaving a mess behind.”

Brian Westney spoke in opposition to the resolution. He expressed concerns about Geffken’s actions being illegal overreach. He said that the resolution would “interfere with ongoing litigation” and is to “shield” Geffken’s “misconduct.”

Molly Echeveria spoke in opposition to the grants. She mentioned that there are only 110 fully electric vehicles currently in Sebastian County showing that there is not a need for EV charging infrastructure. She expressed concerns about the federal grants threatening local autonomy.

Jo Elsken spoke in support of the grants. She mentioned the positive results Batesville, AR has had with their solar programs. She said “Grants can help this city.” She mentioned that the federal grants are tax money coming back into our community. She praised the workforce programs saying “Advanced energy jobs pay better.”

Terri Hargrove spoke in support of the grants. She said the solar project for Nelson Hall lowering residents’ utility costs helps “some of our most vulnerable citizens.” She praised projects that increase options for pedestrian safety, mentioning that there have been more than 3 recent car-pedestrian accidents, one of which resulting in the death of a child.

James Giltz spoke in support of the grants. He said that the maintenance for the EV chargers would be “trivial”, with the main cost of the chargers being the installation that would be covered by the grants. He expressed support for the Nelson Hall solar project. He praised the Board and City staff for working on the grants while also working on the consent decree.

Mr. Donnelson spoke and expressed concerns about the mention of ACORN that was involved in criminal activity and stopped in 2010 in the grant paperwork. He also voiced interest in seeing the signed memorandum of agreement.

Rick Murphy spoke in support of the grants. He called federal dollars “our dollars.” He mention that Grants and Government Relations Manager Hoover was hired from Senator Cotton’s office because of his “expertise in writing grants to get money.”

Director Rego mentioned that the wording in the EEI about the goal of 100% electrification of vehicles says “can” and that ““can” does not mean “must” or “should”. He mentioned a list of different dates on which the Board received communications including emails as far back as 2023 regarding Geffken’s and City staff including Hoover and Director of Sustainability and Citizen Service Robertson’s work on the grants, including email asking the Board for input before submitting an application, an article in the NWA Democrat Gazette about the regional coalition application for the grant, and the presentation the Board heard about the EEI at a study session meeting. Director Rego said “I just object wholeheartedly” to the idea that the Board was “not informed” or things were “kept from us.” He said that he did not see feedback from the Directors in response to any of those communications about the grants that indicated that they were something they felt the City should not do.

Director Morton and Robertson pointed out that the grants include administration funding for overhead for administration of the grants and a full time position solely to work on administration of the grants. Director Morton and Robertson also reminded that there is no local match required for the grants.

Director Morton, in response to an email he received, sought clarification that nothing in the grants would allow appliances to be involuntarily turned off. Robertson assured that there was no such thing included in the grants. Director Morton also sought clarification that there is nothing in the grants requiring anyone to drive an electric vehicle. Robertson assured that there is not.

Director Morton asked Fort Smith Housing Authority Director Minnick about Nelson Hall Homes. Minnick explained that they are 280 apartment units that are a former federal housing project built in 1968 that is now owned entirely by the Fort Smith Housing Authority instead of the federal government. It is a non-profit. There are no owners or share holders other than the Housing Authority. To live in Nelson Hall, applicants must meet low-income guidelines and be elderly and/or disabled. Residents’ average electric bills there currently are $50 per month. With the estimated savings from the solar project, that could drop 70% or more resulting in bills of $15 per month or less.

Director Morton asked about the City’s track record in complying with the requirements for grants and properly administering grants as determined by independent auditors. Finance Director Richardson said that in the 20 years he can recall there was only ever one minor audit finding and it was a long time ago.

Director George Catsavis asked City Attorney Rowe about the lawsuit against Geffken and the City regarding the grants. Rowe voiced his opinion that the Administrator has the authority to apply for the grants and that the Board can approve them (including the resolution up for a vote that would approve them after the fact) and the Board has to accept and approve spending the funds. Director George Catsavis said “I’m really torn on this.”

Director Martin said that even with the meeting where the EEI was discussed he “never got the plan.” He said that “to move forward, we have to move forward in a protocol.” He voiced his view that legislatures should have the power and as the Board “nothing can be done without our approval.” Of the EEI, he said “I don’t feel comfortable moving forward without that plan being approved.”

Director Morton mentioned that the resolution is just saying “that we asked for the money.” There is still going to be a vote on whether to accept the funds. Then all of the contracts have to come before the Board before the money can be spent. He said that there are “plenty of opportunities to reject” the funds. He said that there is an “opportunity to do something in a manner we’re satisfied with.” He said it is “hard for me to find anything negative on this.”

Director Settle asked why private vehicles are referenced in the plan and expressed that he doesn’t see the need to include that language in the plan. Robertson explained that for the grant, applicants are required to send a priority action plan, pick 3 measures that fit the grant and provide their rationale for their choice and a plan for the projects. The language in the grant synopsis was chosen from the EPA language. Robertson reiterated that language was used that says things including “can help drive adoption” and “can instigate” rather than anything firmly requiring anything regarding private vehicles.

The Board passed the resolution with all but Director Martin, Director George Catsavis, and Director Settle voting in favor.

The Board voted unanimously to contract with Hawkins-Weir for $143,890 for design engineering services for 5,280 ft of water line and a pressure reducing station along Racetrack Road. The area where the project will be is a part of the recently annexed area of the City.

Director Settle asked why there is a pressure reducing station proposed for this far south. Utilities Director McAvoy explained how the double check valve system allows flow from a second plane if the flow drops. He said that the looped system with the pressure reducing station is much more economical than a pump station and that it is the second system like that this year.

Director George Catsavis asked if Altes, a property owner in the area is ok with the plan and if Altes were to build more buildings if they would have additional pressure. McAvoy said that the project is good for Altes and provides additional fire protection capability for his property. McAvoy also assured that if the casino were to expand that there would still be plenty of pressure.

The Board voted unanimously without further discussion to contract with Forsgren for $8,231,278 for a consent decree sewer project including 12,476 ft of pipe repairs and replacements, 73 clean outs, and repairs or replacements of 82 manholes. This issue was discussed at the 11-6-24 meeting, but the lowest bidder Royal Ridge Construction withdrew their bid, leaving Forsgren as the second lowest bidder. The project will be funded through the sales tax for consent decree projects.

The Board voted unanimously to renew the lease with the State of Arkansas until 2-28-2030 for a portion of the parking lot at 801 Rogers Avenue. Through this lease agreement the City allows the State to use 51 spaces on the top level of the City’s parking garage next to the lot in exchange for the City being able to use spots on the State owned parking lot for public parking.

Director Morton requested that the Finance Department record the fair market value of what is being swapped for what so that the records could reflect that the revenue not being received from the parking garage spaces is saving the City money over renting the surface parking lot.

The Board voted unanimously to re-apply for two Rebuilding American Infrastructure with Sustainability and Equity (RAISE) federal grants from the Department of Transportation. The grants are one for the Bass Reeves Legacy Loop Greenway for $24,987,098 and one for the planning and pre-construction stages of the Butterfield Overland Trail Pedestrian Bridge for $2,724,600. The City applied for both grants in 2024 but was not awarded them. If awarded, the grants will come with no cost share required from the City because Fort Smith is considered “rural” and the proposed projects are also within areas designated as Areas of Persistent Poverty.

Jessie Watson spoke in support of the grants. She said that “Fort Smith existed before cars and it will exist after cars.”

Andy Posterick spoke in support of the grant for the Bass Reeves Legacy Loop. He said that much of the Greenway is being built on infrustructure that already exists and the City already pays to maintain. He questioned the grant for the Butterfield Bridge and the grant for another bridge that is being applied for that is planned to go over the river. He said it is a “hard question” whether those would pay for themselves or not and said that he would “like to see the math.”

Jo Elsken spoke in support of the grants as an investment in tourism with grant money. She said that the projects will attract tourists and their money.

Terri Hargrove spoke in support of the grants. She mentioned them bringing tax money back to our community and called the projects an “asset to our community.”

James Giltz spoke in support of the grants. He said that a lot of the paving to be done on the Loop is on infrastructure that has “fallen somewhat behind” and that with the huge cost of maintaining infrastructure using grants is an “excellent economic decision.”

Rick Murphy spoke in support of the grants and encouraged the Board to trust their hired employees to represent the City.

Director Morton mentioned that the grants were previously “highly recommended”
last time they were submitted. Hoover said that the Butterfield Bridge did not score high, but the Loop did. The loop was one of the highest rated applications overall and named a “project of merit” last time.

Director Rego mentioned his experience as a fundraiser in his professional job and that in that job it is seen as “wise” to reapply for a grant when there is a window to do so. Mentioning the high grant amount and that there is zero local match, he expressed his view that it is “very wise to support this.”

Director Settle mentioned that Senator Cotton, Senator Boozman, and Representative Womack helped on the grants application last time. He also mentioned that he sees a lot of people walking on Midland Avenue and suggested that the City talk to ARDOT about potentially attaching a pedestrian bridge to the existing Midland bridge instead of building a separate new bridge. He mentioned the pedestrian bridge attached to the Broadway Bridge in Little Rock as an example.

The Board voted to apply for $18,550,000 in federal grant funds from the Environmental Protection Agency through the Environmental Justice and Community Change Grants program. The community based partner organization required for the grants will be Arkansas Advanced Energy Foundation. If awarded, the grants will not require any local cost sharing. The grants will be used for projects including $600,000 for replacement of trees downtown, $4 million for Phase 2 of the Maybranch Greenway, $6 million for improvements to Rogers Avenue downtown, $3 million for clean energy infrastructure, and $4.5 million for replacement of lead water pipes.

Director Martin encouraged Hoover to look for grants for sewer projects. Hoover said that unfortunately there are not a lot of grants for sewer for large municipalities. Most of the opportunities available are for small rural towns. Director Settle suggested that because Fort Smith provides sewer to some smaller and rural cities that that could potentially be used to qualify for some sewer grants. Hoover said that it is being explored that because Fort Smith provides sewer to Arkoma and in doing so crosses state boundaries that there might possibly be some funds available through Oklahoma or the Bureau of Indian Affairs. Director Good asked about grants to help with the consent decree. McAvoy said that they have been looking since 2019, but “We really don’t qualify.” He mentioned that almost all of them would require the City to be below the poverty line. He mentioned that in addition to the EPA recently requiring lead pipes be replaced, they may also require galvanized metal pipe to be replaced. Director Settle praised the project replacing lead pipes.

Jo Elsken spoke and praised Hoover.

Terri Hargrove spoke in support of the grants calling them a “great opportunity.”

James Gilz spoke in support of the grants. He said that the lead pipes are not only an EPA legal issue but also a public health issue. He called being able to protect people from lead pipes in an “easy low-cost way” via grant funding a “huge benefit.”

Rick Murphy spoke in support of the grants. He said that citizens benefit from the grants and that the Board should trust the City staff.

The Board voted in favor of the grants with all but Director Martin voting in favor of the grants.

The Board voted unanimously without further discussion to purchase playgrounds from ACS Playground Adventures for Hillcrest Park for $252,218.76 and for Woodlawn Park for $269,995.83.

The Board voted unanimously without further discussion to issue a two year non-residential waste collection permit to In & Out Roll Off. The permit will include a 5% franchise fee.

During the Officials Forum section of the meeting, Director George Catsavis expressed concerns about Hope Campus. He said that it is always full. He mentioned there being 61 police calls to the campus in 30 days. Director Martin agreed that both the police and EMS calls there “are a lot.” Discussion of the Hope Campus will be added to a future study session agenda.

Deputy Administrator Dingman mentioned that opening night of the Creekmore Holiday Express miniature train will be Monday 12-2-24. Guests that night will be given cocoa and candy canes and there will be an opportunity to take pictures with The Grinch. The first 250 guests will also receive a commemorative ornament.

During the Executive Session, Marc Lux was appointed to and Deana Infield was reappointed to the Audit Advisory Committee.