Highlights of the Fort Smith Board of Directors Meeting 12/21/21
At the Fort Smith Board of Directors special meeting called for at the special study session the evening of 12-20-21 and held 12-21-21, the Board voted unanimously to repeal the ordinances that were passed at the 11-16-21 meeting that would have put renewal of two sales taxes, one for a quarter percent going to Fire and Parks and one for 3/4 of a percent going to Police and consent decree required sewer work, to a vote by the public scheduled for 2-08-22. This repeal was the first step needed to postpone and reschedule the election. In January or February, the Board will have another vote to reschedule the election (the main potential election time talked about so far is for May) and to vote on any changes to the ordinances that will be voted on by the public (the main potential change that has been discussed so far is shortening the length of the tax for consent decree sewer work to only 10 years rather than the 20 year term that was specified in the ordinance that was approved 11-16-21). The Board expressed a desire to postpone the election to allow for more time for the public to become well-informed on the issue. Director Settle mentioned specifically that he would like for there to be ward meetings in each ward between now and the election to discuss the sales tax issues. Director Morton mentioned the need for the city to provide financial information pertinent to the taxes.
Director Good asked for clarification about whether or not the new version of the ordinance could be written so that the portion of the tax going to the consent decree work would automatically sunset early as soon as the consent decree work was finished. Administrator Geffken responded that sort of wording could potentially be included. Directors Morton, Martin, and Dawson chimed in with their agreement that the wording needs to be there to stop as soon the consent decree is finished.
Director Settle inquired about the cost of the postponed election. Administrator Geffken replied that city will get the bill from the Sebastian County and he will share that information when he gets that bill.
The Board voted on whether to approve the one year $95,000 consulting contract with First Western for insurance management. Director Settle motioned to amend the ordinance to prohibit First Western from being able to bid on providing insurance coverage while they are under contract to provide insurance consulting services. Phillip Merry with First Western clarified in response to the question from Director Morton that First Western only serves as a broker and does not write or sell any insurance coverage policies themselves. That proposed amendment failed to be seconded so it died without being voted on.
Director Settle spoke out against approving the contract. He expressed his opinion that the coverage the city already purchases through the Arkansas Municipal League is good coverage at a good price. He challenged the idea that paying an outside broker to hunt for a better deal was going to be beneficial. Referencing the cost the city currently pays for vehicle insurance through AML, he asked rhetorically “Can anyone beat $100 a car?” in the private market. He mentioned that we have been getting more out of the AML policies than we have been paying in. He pointed out that there are other services that we continue to buy from the same source year after year based on a level of trust and advocated that we do the same with AML insurance. Director Dawson spoke out in disagreement with Director Settle’s position on the issue. She asked “Why would you be against someone looking to see if there is better?”. She mentioned that during the 2019 flood the city could have gotten more money if we’d had an insurance broker. She asked “What’s the harm?” in having someone look as a liaison.
The contract was approved with all but Settle voting to approve.
