Highlights of the Fort Smith Board of Directors Meeting 1/7/25

At the Fort Smith Board of Directors meeting held 1/7/25, the Board voted unanimously in favor of a resolution officially expressing opposition to an interim storage site for spent nuclear fuel being located in Fort Smith. The City has not been approached concerning the potential for a facility or involved in discussions about a facility but the resolution is in response to a presentation made to the public in December by Arkansas Nuclear Voice regarding the idea.

Patrick McGuire spoke in favor of the resolution. He mentioned that a nuclear waste storage facility built in Yucca Mountain in the 1960 experienced leaking containers that lead to contamination of the water table and a “nuclear wasteland” for 10 miles around the site. He also expressed concerns about traffic accidents and terrorist attacks posing a threat while the nuclear materials are being transported to the site.

Director Rego expressed his support for the resolution. He also expressed disappointment in the media’s coverage of the issue and not offering the Board opportunity to express that they are not interested in a nuclear waste site being located here to “balance the story.”

Director Martin agreed with Director Rego and also expressed his disappointment that the Board was also not contacted by Arkansas Nuclear Voice.

The Board discussed whether to extend the waiving of parking fees (that ended January 3rd) to February 4th to allow the Board an additional month for discussion and seeking input to evaluate what to do about the meters, potential including doing away with the paid meter parking permanently. The City staff says that the parking has been no more or less congested without the paid parking than it was with the paid parking. The meters bring in about $5000 per month that is used largely to offset the cost of the meters and parking enforcement.

Director George Catsavis said that everyone he has talked to has been “thrilled to death” with no longer having to pay to park. He said it is “time to do something.”

Director Settle questioned what would happen if a business wanted a meter put in front of their business to stop people from parking there. Director George Catsavis suggested that they might be able to put up a sign that says that parking is for that business only. Director Settle wondered if that is something that could be done.

Director Christina Catsavis expressed support for getting rid of the meters.

Director Martin said that the Police Department study conducted in March was “pretty conclusive” but that he would like the same type of study conducted again now.

Director Kemp said that there is “no reason to keep talking about it” and advocated for removing the meters now. He suggested that there might be some other modernized approach or way to craft an ordinance to allow for support of the businesses that want the meters only rather than widespread downtown metering. He said that “parking is plenty and available” downtown currently.

Director Rego expressed support for getting rid of the meters and said the Board “don’t need to dawdle around about it.”

Director Settle motioned for an amendment to the issue that would instead of waiving parking until February 4, 2025 would waive it until August 1, 2025. The Board voted unanimously in favor of the amendment. Then the Board voted unanimously in favor of the ordinance as amended, so parking meters will remain waived until August 1, 2025.

The Board was slated on the agenda to vote on whether to approve the financing terms from Arvest Bank and First National Bank for the $4 million purchase of the City office building at 623 Garrison. Under the financing plans, The City would finance the purchase over 20 years by issuing revenue bonds with obligating a portion of the franchise fees the City collects as collateral. With this bond sale, no mortgage would be required. The interest would be 5.54%. The cost of the service on the debt would be $340,178.12 annually.

Instead the discussion immediately changed to a discussion regarding purchasing the building outright in cash from the General Fund. There was no discussion regarding the financing plan. Purchasing in cash would save a total of $2.8 million in interest over the 20 years.

Kim Fodge spoke in support of the outright purchase. She expressed support for saving the interest money.

Dan Williams spoke in support of the outright purchase.

Director Martin expressed a desire to have an environmental study done before purchasing the building including factors like asbestos. Interim Administrator Dingman said that while a full environmental study is not being conducted, the kind of study that Director Martin has in mind is being conducted as a part of the due-diligence being done before the purchase. Dingman also said that with the due-diligence and the cash purchase a February closing could be anticipated.

Director Good asked if there is enough in the General Fund for the cash purchase. Finance Director Richards answered that there is.

Director Kemp asked “If we say “yes” to this, what are we saying “no” to? in expressing his concern about the impact of the purchase on the budget. He also called the building “antiquated” and voiced concerns about it needing renovations especially to the first floor to present the kind of image that the City wants to present. He suggested putting the monthly savings on no longer paying rent into a fund for renovation. He also expressed concerns about mold in the building. Director Christina Catsavis mentioned that the current owner of the property has already agreed to cover the cost of the mold remediation.

Director Christina Catsavis also clarified that the Board already agreed to the purchase of the building, that at this point they are only deciding how to finance or pay for the purchase. She also said that the 6th floor of the building is nice and doesn’t need renovations.

The Board voted unanimously to purchase the building outright in cash from the General Fund after the 30 day due-diligence period followed by Board approval.

The Board voted unanimously in favor of a zoning change for the empty lot at 1400 South U that would allow for U-Haul (that is adjacent to the property already) to build a 3-story 102,686 square ft climate controlled mini-storage facility and U-Box facility.

Phillip Lewis with U-Haul spoke to describe the facility and called it a “nice facility.”

Brett Hogan with U-Haul spoke and mentioned the previous investments U-Haul has made in that neighborhood, including both the facility at 2205 Towson purchased in 1977 and the expansion they made by buying the adjacent former bowling alley property. He said the expansion is “gonna help the community.”

Director Good thanked U-Haul for their investments in the community.

Director Settle mentioned seeing a facility that the planned facility will be like in St. Louis and called it a “great facility”.

The Board voted unanimously on appropriation from the general fund to move landscaping of downtown that has previously been contracted out to an outside company to being done in-house by the Parks Department. The landscaping will cost a total of $175,290 but $44,000 would be paid by the CBID, for a total of only $131,290 coming from the City. Parks Director Deuster said that moving the landscaping in-house will both expand services and mitigate downtime at a cost savings. The bids received from outside vendors for a more modest set of services were all over $200,000.

Director Christina Catsavis and Dingman clarified that the CBID contributions come from the extra property taxes levied on themselves by property owners within the CBID and collected by the County.

Director Martin asked if the City ever power washes the sidewalks downtown. Deuster said that they do not, but this with this change that they would be adding that. Director Martin said he is “very much looking forward to seeing what your crew can do downtown.”

Director Kemp asked if the contribution from the CBID could be expected to be recurring in the future. Deuster said that it would be recurring provided that the Parks Department meets their expectations.

The Board voted unanimously to contract with Hawkins-Weir for $224,440 for design services for consent decree sewer work including repair or replacement of 24 manholes and 23 pipe line segments.

The Board was slated on the agenda to vote on whether to approve the charter establishing the Water Utility Advisory Committee. The 7 member citizen committee would meet at least monthly to research, review, investigate, and discuss issues pertaining to water and sewer operations and capital projects and would make recommendations to the Board of Directors.

Kim Fodge spoke and reminded of her opposition to the creation of the committee and voiced her opposition to the wording in the charter that would allow for the City Administrator to make the nominations of the members and the Board to make the appointments. She suggested instead that the Board make the decisions without the nominations from the City Administrator. Director Rego asked if that was the same language used for all of the Boards and Commissions (noting that typically the Board doesn’t do any nominating, just appointing from the applications that come to them from the public through the Administrator). Dingman said that it was not just identical to the others and expressed his view that making it identical and using the same application process as the other Boards and Commissions is a “good idea.” Director Martin voiced his agreement with Fodge.

Director Martin mentioned that the Water Utility Advisory Committee under the wording in the proposed charter would be the only Board or Commission that would have insight into the operational and capital projects without oversight of the Board. He said the Board “should have authority to direct them in certain areas” rather than the Committee having “free rein.” He expressed concerns about “scope creep.” He said the Board should direct the Committee where to go and “put guard rails around it.” Director Martin proposed an amendment to the charter that would word it so that operations and capital projects would be researched by the Committee as identified by the Board first.

Director Settle motioned that the issue be tabled and discussed at the next study session and brought back for a vote at the February 4, 2025 meeting.

Director Christina Catsavis suggested that the charter might be able to be amended on and voted on as amended now.

Director Rego suggested that if the Board is to direct the Committee that the Board should vote first on what things the Committee should be directed to do.

Director Kemp expressed concerns about the committee making more work for Utilities Director McAvoy. He suggested that the duties of the Committee might instead be done by the existing Audit Committee. He also suggested that an additional Utilities employee could be hired and could do those duties instead. Director Rego reminded that the Committee was already created at the December 3, 2024 meeting and that the decision now is only regarding how it should operate.

Director Rego expressed support for tabling and discussion of the issue at the study session saying “A pause probably is wise.”

The Board voted unanimously to table the issue to be discussed at next week’s study session meeting and to be voted on at the 2-4-25 meeting.