Highlights of the Fort Smith Board of Directors Meeting 12/6/22
The Fort Smith Board of Directors study session meeting held 12-6-22 with Director Dawson absent began with a discussion about issues with AT&T installation of fiberoptic internet in the city rights of way. The issue was brought up at recent meeting in response to complaints from citizens who experienced property damage from the installation that has not been taken care of satisfactorily by the installation contractor.
Mr. Dedmon with AT&T addressed the Board. He said that some of the subcontractors hired to do the installations failed to meet AT&T’s expectations and “are no longer with us”. He also said that a Fort Smith based manager has been added to address problems.
DIrector Morton said that when the fiber started being installed in Fianna Hills first problems were “immediately addressed” and the contractors fixed the problems but as time has gone on that level of service dropped.
Director Catsavis said that the complaints he has received have dominantly been “more of a public relations issue than an actual construction issue” and criticized the “lack of communications” between the contractors and the public.
Dedmon responded that to improve communication they have been/will be leaving door hangers and posting signs in neighborhoods where they are working that feature a phone number to call with issues. He also said that stronger emphasis is being placed on “placing fiber and restoring as we go” to quickly restore properties impacted by the installation.
Director Martin agreed that he has received some comments about communication but has also received a lot of comments with frustration about things on properties not being properly restored. He asked Dedmon what changes are being made to improve the level of work.
Ben Fox, AT&T’s Construction Manager for Arkansas, said that they are re-emphasizing door hangers and signs and that there had been a supply chain issue that was contributing the restoration problem but that that has improved now. He agreed with Dedmon that they are emphasizing cleaning up immediately as work is performed.
Director Settle said that when he was campaigning that when he met residents with water leaks that “90% of the time” they said AT&T had been working in the area and that AT&T digging was responsible for broken water and sewer lines. He asked what was being done to prevent water and sewer line breakage.
Dedmon said that the subpar contractors no longer work for them. Fox said that they are using a scope to find utilities that are not marked and call the utility companies if they can’t find them.
Fort Smith resident Mary Lee Taylor expressed frustration that in her subdivision with an easement that goes behind the houses AT&T refused to use that easement and instead insisted on digging in the fronts of people’s properties damaging lawns and flower beds. She also mentioned that at her property on Rogers that has the Ashley Furniture building AT&T put their equipment and supplies in areas on the east side of the property that weren’t in the easement. They eventually fixed the problem and paid damages. Then on the west side of the property AT&T dug a big hole and messed up the sprinkler system. When confronted about the situation the contractor wanted to pick a fist fight with her husband and the police had to come. The person responsible was reached and said that they would make it right but have not done so yet. She called the situation “just horrible”. She said that she was never notified of anything that would be coming to their property and did not receive door knockers in advance in either neighborhood. She also mentioned a friend in Fianna Hills whose yard was torn up that had to work hard to contact someone to get the process going to rectify the situation.
Dedmon apologized for the distress and said “sorry again for all the mistakes”.
The Board discussed renewal of the contract for $130,000 for 2023 (or alternatively a 2 year contract with both years each being at the same $130,000 annual cost) with First Western for insurance and risk management advisory services including insurance claim reporting responsibilities. The city began entering a contract to receive this service in 2022 with that initial contract being with First Western and the duties being performed by Phillip Merry.
Finance Director Ali Bahsoon praised the work of First Western’s Phillip Merry and Denise Engle saying that it “has resulted in better coverage and cost reduction in our insurance policies” and that they have “worked tirelessly” as negotiators. He said their “service has been impeccable”. Despite the increase to $130,000 over the $95,000 for 2022 Bahsoon recommended renewing the contract. The savings that First Western services has brought about on the workers compensation cost has exceeded the cost of the First Western contract price increase by $10,000.
Director Morton spoke on the need of a city of Fort Smith’s size for the level of expertise from outside insurance brokers that you cannot get in-house. Of the contract with First Western, he said “I’m in favor of this”.
Director Settle suggested that instead the City should look into if it might be more cost efficient to create a Department of Risk Management and hire highly skilled professionals to perform the duties in-house.
Director Rego pointed out that never before in his time on the Board has he heard of a contract partnership with an outside entity described as “truly impeccable”.
Director Morton spoke about how the contract was initiated last year with the “expectation that the relationship would yield cost savings” and asked to see a rundown of the cost savings that have been made. Administrator Geffken said that a rundown would be included in the agenda packet for when the renewal will be voted on at the December 13th meeting.
The Board discussed how to utilize the funds left over from the sales tax that was enacted to pay for the 2012 and 2014 water bonds. The tax produced enough revenue to pay the bonds off early in July-September of 2022, but by State law the tax has to continue being collected until December 31, 2022. The sales tax was renewed recently with 16.67% to go to the Police Department and 83.33% to go to consent decree required sewer repairs. That renewal does not go into effect until January 1, 2023. So there is an excess that is estimated to total at least $14.5 million from the collection of the old tax from October through December.
Director Martin said that he recognizes that the money could be utilized for some one time needs but his recommendation was that since the money was collected for a specific reason that it needs to be used for that specific reason. He supported the money being used for sewer and water projects.
Director Settle called the excess an “opportunity to fix an issue we have in the city”. He suggested $10 million could go to sewer projects and $5 million could be used to fix the Creekmore Park bath house. He called the bath house “old” and “decrepit” and said that fixing it “would make the lives of every citizen young and old better in our community”.
Director Catsavis supported using the money for sewer projects.
Director Morton suggested that the first $10 million be used for consent decree sewer work and that they wait until the rest of the money has all been collected to decide what to do with the remainder. He agreed the bath house needs to be fixed but criticized the $5 million estimate for the planned project saying that there has got to be a way to do it for less.
Director Good said that he liked Settle’s comments on the bath house and that he’d love to see more funding for addressing the flooding on the Northside, but that the solution to the flooding is too expensive for this anticipated amount of funds. He instead recommended that the money be used for consent decree sewer work.
Administrator Geffken brought up that while money is definitely needed for consent decree work, there is a non-consent decree related water department need for multiple water tanks to be repainted inside and out at the cost of about a half million dollars each. Utilities Director McAvoy added that steel tanks are exposed to weather outside and water inside and if not properly maintained can rust and eventually fail leading to reduced water pressure. It is recommended the tanks be painted every ten years and none of Fort Smith’s have been.
Director Martin expressed his view that a water project would be in line with the original intent of the tax and said that “we need to stay in the spirit of the sales tax when it was passed”. He also mentioned that there are lots of valid water project needs including a trickle filter.
Director Morton inquired about the possibility of a low interest loan from the State’s revolving fund to cover water projects. McAvoy answered that the City is unable to qualify to borrow because of insufficient revenue to pay back the loans. Director Morton said that “made the case for “ a “small water rate increase”. He said he doesn’t “want to make it hard on citizens on a fixed income, but we do have to look into that.”
Geffken added that he has received a revised plan for the Creekmore bath house that would come in closer to 3 million. He said that $10 million could be spent on water and/or sewer and still ”hold some money to one side for Creekmore”. He said that with the improvements to Creekmore including the wider walking path and the new playground that “the only thing that’s left is the bath house”. He said that he would present the Board with a list of potential projects no later than early January.
The Board discussed salary increases for the Mayor and Board of Directors. The proposed increase would raise the Board of Directors annual salary from $1000 to $7800 and their annual car allowance from $4800 to $7200 for a total overall raise in compensation of $9,200 (from the current total of $5,800 per year to $15,000 per year). The current rates are significantly lower than those of other comparable Arkansas cities. The proposed increase for the Mayor’s salary is from the current $10,000 per year to $30,000 per year.
Director Catsavis said “I’m done discussing this” and it is a “fair deal and I’m tired of discussing it”. Director Rego reminded that the only business that they have to handle on a time line per State law is setting the Mayor’s salary before his term begins January 1. He pointed out the proposed dramatic increase from the current $5800 per year a Director currently earns if they attend all the meetings. He criticized enacting with “very little public input or participation” the “first salary adjustment since before people walked on the moon”. He suggested that the Mayor’s raise be considered right away but that for the Directors proposals be considered in January to be put in place in March or April at the same time the City staff raises are set to go into effect.
Director Morton said “if we every year put discussion on public raises out for discussion there would be a lot of discussion and a lot of dissent”. He also called going up to $15,000 a “pretty big step”. He expressed support for the raises because he “wants anybody who has another job to be able to be a City Director.” and said the Board members “shouldn’t all be retired or executive level jobs” and it “ought to be open to more people than that”.
Director Good reminded that not all of the Directors are retired or executives, that he is still very much hourly. He said “I have never ever petitioned for any of this pay increase”. He did, though, speak on the workloads that Directors take on saying “If it goes on in the city, we’re expected to be there”. He mentioned things like attending community events, attending Boards and Commissions meetings, and meeting with individual citizens. He said it is “not a one meeting a week job, period. “. But he firmly stated he is “not fighting for this raise”.
Director Rego said that “I don’t think we don’t work hard or haven’t earned” raises. He said that the Directors “work harder and directly impact more lives” than the State Representatives in Little Rock and that he would advocate for something in line with that pay. But he said that there is no rush and they “don’t want to do something rushed, but want to do something right.” He called moving forward quickly on the increases “the total wrong way to proceed”.
Director Morton suggested having an outside study to help compare other city’s pay rates and find recommendations for a fair pay rate.
Director Good said the “Mayor’s raise needs to be done first and foremost”. Of the other raises he said “We have to consider timing. Do we put this off and have another issue that needs financing come up and have to face off against another issue?”. He asked “What more information do we need?”.
Director Settle pointed out that the Arkansas Municipal League does a study on all the salaries already. He argued that we do not need to pay for another study. He also added that the City Directors for most cities in Arkansas have only one meeting per month.
Director Martin said “I do look at the optics of this” and of voting themselves a raise said it “just feels weird”. Director Morton responded “Don’t think of yourself, think of who will succeed you.”. Director Martin mentioned seeing a large number of people that work two jobs to make ends meet and that the raise might make it possible for people who work another job to also be on the Board of Directors. Director Morton agreed.
The salary increase and car allowance increase for the Board of Directors and the increase in the Mayor’s salary will up for a vote at the December 13th meeting.
