Highlights of the Fort Smith Board of Directors Meeting 3/4/25

At the Fort Smith Board of Directors meeting held 3-4-25, the Board voted against annexation and zoning changes for 16.42 acres at 11100 Old Highway 71 to allow it to be developed into the Knox Landing mixed use development including single family residences, duplexes, rowhouses, townhouses, zero lot line dwellings, and commercial uses.

John Alford spoke in support of the changes on behalf of the developer.

Bobby Fletcher spoke in opposition to the changes. He expressed a preference for a development that “blends and complements the existing neighborhood.” He suggested light commercial development instead of higher density residential.

Harold Davis with the Riley Farms Property Owners Association spoke in opposition to the changes. He expressed concerns about traffic problems and said that the traffic study that was done was not “valid”. He also expressed concerns about drainage issues.

Elizabeth Allison, President of the Riley Farms Property Owners Association, spoke in opposition to the changes. She said that there are already 1121 rentals within 2.5 miles of Riley Farms so more rentals are not needed in the area.

Edward Ward spoke in opposition to the changes. He said the development would be “disastrous for Riley Farms.”

Director Settle voiced his desire for this and all PZD applications to come with a development plan so that people can see the proposed development better. He said “The unknown is where the fear is.” Director Settle asked about the planned 4 lane road extension from Rye Hill Road to Chad Colley. Engineering Director Snodgrass said that it is already included in the 2005 master streets plan. But it has not been included in the 5 year Capital Improvement Plan. Director Settle asked about the cost. Snodgrass said that it would be “millions of dollars.” Director Settle asked if the road were not built if it would change the developer’s mind about the plan for the development and make it more like Riley Farm. Alford said that he didn’t know as the road has always been on the master street plan.

Director Rego asked if the traffic study was done contemplating the situation as it currently is or with the future road. Deputy Administrator Rice answered that it was done as it currently exists without the road extension. She also confirmed that the traffic predicted would be at around half of the allowable limit.

Director Kemp asked about the duration of the traffic study. Rice said that it was conducted from noon on Wednesday November 6th through the 11 o’clock hour on November 7th.

Director Martin asked how you get into the interior property. Rice said that the developer will have to make their own roads. Director Martin asked about the size of the single family homes. Rice reminded that municipalities in Arkansas are not allowed to regulate the size of single family homes and duplexes. Alford said that they would be about 1500 square feet. Director Martin asked about a previous plan for the development having been denied by the Planning Commission. Alford and Rice clarified that the previous plan was for the development to be 100% duplexes, 37 duplexes, but the currently plan that was approved by the Planning Commission includes single family homes on the North and East sides and some commercial use. Director Martin mentioned that there are currently duplexes, apartments, and condos in Riley Farms.

Director Rego mentioned that the developer is currently allowed to put in duplexes on the property. Rice confirmed that they are. Director Rego mentioned that the reason for the developer’s request for annexation is to allow them to become sewer customers. He expressed his view that with the revenue needed in the sewer department, the City is “not in a strong position” to turn down new customers. Director Christina Catsavis asked if the development is currently allowed to used Fort Smith water. Rice confirmed that they can tie onto Fort Smith water but not to sewer. To tie onto the sewer, they would need to be annexed.

Director George Catsavis asked if any hydraulic modeling had been done regarding water pressure to the proposed development. Rice answered that no hydraulic modeling had been done but that the property would have access to a 14 inch water line and an 8 inch sewer line so it would be able to provide normal pressure. Director George Catsavis asked about the cost to run sewer to the development. Rice said that the developer would be responsible for all of the cost.

Director Kemp agreed with Director Settle that he did not like not having a development plan to look at. He also voiced his opposition to the plan asking “What else could go in that would still be a sewer customer?” and saying “I don’t think this makes logical sense to put right in front of Riley Farms.”

Director Martin asked about the cost to a developer to include a development plan with their PZD application. Rice said that it would be “very costly” and that the PZD was implemented to allow developers an option “without undue financial risk.” Director Martin mentioned past “controversial” PZD applications that after approval the hotly contested developments never actually happened. He asked about the timeline for the development. Alford said the timeline would be “very quick.”

The Board voted against the annexation and zoning change with only Director Good and Director Rego voting in favor of the annexation and the change.

The Board voted unanimously in favor of zoning changes for 801 South Zero to allow an existing building to be used for an electrical equipment, appliance, and components manufacturing business.

The Board voted unanimously in favor of City employee pay rates including a 3.5% pay increase for all non-uniformed employees and a 5% pay increase for uniformed police and fire employees.

Director Christina Catsavis praised City employees and sparked by the discussion of City employees spoke about a recent Facebook post about a City employee sleeping in their work vehicle. She looked into the situation and tracked the vehicle and found that it was at the location for a time-span “quite a bit shorter” than expected. She found that the employee has cancer and is currently going through chemotherapy. He was ill and “taking a break, getting his bearings.” She encouraged everyone to come together as a community and get behind him while he is sick and having to work through treatments.

Director Martin said of the pay rates, he does not “have a problem moving forward with this.” He did want to consider how the rates factor in with the operational cost for the water and sewer employees in relation to the debt service ratio for being able to fulfill the bond covenants to prevent an increase in water or sewer rates. Director Settle said that the reallocation of funds to be discussed in two weeks that would fund the City Administrator, Board of Directors, Mayor, City Attorney, and Sustainability Department solely out of the general fund would result in $1.3 million being available in the water and sewer fund.

The Board voted on whether to reappropriate a total of $3,466,052 in carryovers and encumbrances from the 2024 budget to the 2025 budget. These carryovers and carryforwards result from projects and purchases that were budgeted for on the 2024 budget but were not finished or delivered in 2024.

Kim Fodge spoke in support of “fiscally sound budget cuts.”

Crystal Cadelli spoke in support of “tightening of the belts” and suggested that if a carry over was not tied to an existing contract that it needs to be denied.

Director Rego proposed a 25% reduction in the carryover for Make My Move. Public Relations Manager Buchfink gave an update on the program. He said that so far 6 people have moved here through the program, 5 of those with monetary incentives. $12,500 have been spent so far with $12,500 outstanding (because half of the incentive is paid up front and half is paid after the participant has lived here for a year), and that including participants still in process who have been accepted or have moved here already or who are waiting on the carryover budget vote there is a total of $17,500 outstanding. He said that the majority of participants have been renters and the program was originally budgeted for if everyone were to buy homes, so it has spent less than anticipated. He said that not as many have moved as were anticipated. He expressed an interest in waiting to see how the program performs until it’s been through the summer when the most people move.

Director Christina Catsavis suggested that the Make My Move program be closed out after paying for the outstanding contracts.

Director Kemp said that while the City is “not getting the return we hoped” the ROI on the Make My Move program so far has a positive economic impact. He expressed support for only funding the Make My Move contracts that have already been committed to.

Director George Catsavis asked about putting the money that was allocated for the carryovers into an investment account instead. Finance Director Richards said that most of the carryovers are for things that are already under contract and that they are “things that need to get done.” Director George Catsavis said “I don’t agree with this.”

Director Rego asked about the carryover for the access road from 28th Street to the Transit Headquarters building. Transit Director Savage answered that the biggest reason the road was not built in 2024 as budgeted was challenges in making an agreement with A&M Railroad, but that they are “very close on an agreement” now. He explained that the road is for safety because as it is now to get to the Transit building requires passing through Spartan Logistics where semi-trucks and trailers are maneuvering. He called it “very risky” and said “I’m surprised we haven’t had an accident yet.” Spartan Logistics would also like to be able to provide greater security for their facility by being able to close and/or lock the gate. Savage said that $1.3 million of the price for the project is for drainage that ADEQ asked to be done. The drainage problem is bad enough that part of the area cannot be mowed and that a sinkhole formed that sucked in a lawn mower. Director Christina Catsavis asked about federal reimbursement for the Transit carryover projects. Savage answered that the CNG slow fill that would allow for greater efficiency by allowing buses to be fueled overnight would be reimbursed at 90% and the access road would be reimbursed at 80%. The total City cost after reimbursement for both projects combined would be $517,000. Director Rego asked how quick the federal government is to reimburse. Savage answered that they are “very timely.”

Director Martin asked what of the carryovers except Make My Move are not under contract. Richards said that the big ticket items are all under contract. Director Kemp asked if the solar canopy for the farmer’s market could be reconsidered. Richards said that it is under contract, so it would be a legal question. Director Christina Catsavis reminded that they would get the money back from the solar savings in 10 years and that the solar canopy had “already been voted on and passed.”

Director Kemp mentioned that the wall repair at Oak Cemetery has not been contracted yet (it is up for a vote later on the agenda). Parks Director Deuster said that it has to be repaired or it will collapse. Director Kemp asked if the work could be done in-house. Deuster spoke of the complexity of the project and said that it would be replaced with a concrete wall instead of stone. Director Kemp asked if Streets could do it. Streets Director Meeker said “We could probably do it.” but mentioned that the funding would need to come out of the Parks budget not the Streets budget and that the project would take Streets workers away from being able to work on Streets projects. Director Kemp asked if there was a non-profit that might be able to help with the project. Deuster said that it would require a performance and payment bond and that the problem was “much more involved” than the wall repair performed in 2020.

Director Settle voiced his view that the Board needs to have a planning meeting for goals in April or May.

Director Christina Catsavis mentioned that some of the carryovers including the one for repairs to the senior center involve insurance funds so they need to be approved to prevent losing that insurance money. She said that if the City starts reneging on contracts that no one will want to contract with the City again.

The Board voted unanimously to separate the Make My Move carryover from the rest of the carryovers to be voted on. The Board voted to approve carrying over the carryovers from the 2024 budget into the 2025 budget except for the Make My Move carryover with all but Director George Catsavis and Director Martin voting in favor of approval.

The Board then voted unanimously to eliminate funding for Make My Move except for the current contractual obligations.

The Board discussed adding an additional $211,000 to the engineering contract with Halff for the Massard Road widening project to cover the additional cost for the engineering associated with a pedestrian bridge that will be an overpass over Massard connecting to the existing multi-use trail.

Director Martin expressed his view that with the reallocation of a portion of the sales tax from Streets to consent decree sewer work that will be up for a vote in May that the Board will need to go back and look at the Streets Capital Improvement Plan to identify the most important projects. He suggested that the project may need to be pushed back until that vote is made. Director Christina Catsavis agreed.

Acting City Administrator Dingman reminded that the engineering on the project is already underway and that this additional funding is just for the engineering on the pedestrian bridge and few other additions like designing around a water line and a stop light. He said that the engineering will produce a design that could be built at any time in the future but would not have to be built right away. Snodgrass said that the engineering on the project is already 60-90% planned. He reminded that it is “not a construction contract.” He also said that “I-49 to tie into I-40 is coming” and that the project is needed because “the growth is gonna increase drastically.” He mentioned 500 platted lots and 140 dwellings that have not begun construction yet in that area.

Director Rego agreed that “growth is coming in that area.” He suggested that the issue be tabled until after the sales tax vote so that the Board could have a stronger sense of the Streets fund situation. He suggested tabling till the 2nd meeting in May.

Director Kemp asked how long it would take to execute the engineering once approved. Snodgrass answered 6-9 months, and then the next step would be obtaining some rights of way and easements and some utility relocation.

The Board voted unanimously to table the issue until the 2nd meeting in May.

The Board voted unanimously without discussion to purchase replacement equipment for the Streets Department, a 2 ton dump truck with snowplow from Carco for $249,249.42, a road grader from Riggs Cat for $203,377.26, a skid steer from Riggs Cat for $92,644.18, a 4x4 tractor with a rear swing flail mower from P&K equipment for $78,769.58, and a concrete truck from Carco for $197,584.46.

The Board voted unanimously without discussion to contract with Beshears Construction for $653,369.66 for parking lot improvements at Creekmore Park that include repaving, restriping, and 18 new spaces as well as better accomodation for vans and buses at the pool.

The Board voted unanimously to contract with Steve Beam Construction for $74,849.50 for repair of the stone retaining wall at Oak Cemetery.

Molly Echavarria spoke in support of the repair and mentioned other conditions at Oak Cemetery that she felt were in need of repair including other walls, a missing section of the gate, and drainage issues.

The Board voted without discussion to serve as the required government sponsor for the application to be made by Methodist Village Senior Living for an Arkansas Transportation Alternatives Program grant to build a paved path from the Methodist Village facility to Carol Ann Cross park. The 20% local funding required for the grant would be paid by Methodist Village (not at a cost to the City). Methodist Village applied for this grant last year, but was not awarded it, so they are reapplying.

The Board voted to contract with CSM Waterworks for installation of 5 new water slides at Parrot Island Water Park. The slides were already purchased. The installation will be in two phases, the first 4 slides at a cost of $419,500, and then the fifth slide at a cost of $90,000. The total cost for installation of all of the slides will be $509,500. The first four slides are anticipated to be open for use during the 2025 Parrot Island operating season. The final slide will not be installed until after the 2025 season ends.

Director Christina Catsavis asked why the installation contract was not being done through the standard competitive bidding process. Dingman said that the company assembles water slides nationwide. Director Christina Catsavis asked if they were the only company that does. Dingman said that they have done the previous installations at Parrot Island and that they are the company that White Water that manufactured the slides typically contracts with.

Director Christina Catsavis asked if the price to install the slides was included in the original $4.2 million already approved. Dingman clarified that it was included in that, that the purchase of the slides themselves and also the installation was included in that figure.

Chris Cadelli spoke in opposition to the original purchase of the slides. He said that they were purchased without County approval and that it it is sign of the “overall health” of the City/County partnership on the water park. He said of the slides, the “City should have passed on this.”

Dan Williams spoke and suggested that the City solicit bids for cheaper installers.

Krystal Cadelli spoke and said that the money for the slides should come from the Parks budget instead of the general fund.

Director Kemp said that if the City leaves the slides uninstalled on the County’s property that it will reflect badly on the City. He said that millions have already been spent on the slides so they should assemble them now. He said “We’re obligated to finish the job.”

Director George Catsavis asked about the patent infringement case that White Water is involved in. Drew Peterson, manager of Parrot Island, answered that one of the slides is involved in the patent infringement case, so rather than install it, White Water will be replacing it with an upgraded model that would normally cost $200,000 more. So the other 4 slides that were delivered will be installed and the patent infringing slide will not be and the City will receive a more expensive slide in its place for no additional cost. The City will have no liability related to or involvement in the legal case.

Director Christina Catsavis reminded that she voted against the purchase of the slides from the beginning. She said that if they don’t install the slides they might be able to instead sell them to another City and put that money back into the general fund.

Peterson said of CSM, “They do great work.” He said that in order to have the slides installed in a timely manner, especially to have them open in the 2025 season, there are very few companies that could do the installation. He said that two other companies were approached and were not interested in bidding on the project.

The Board voted in favor of contracting with CSM for the installation with Director George Catsavis, Director Christina Catsavis, and Director Martin voting against it.

The Board voted unanimously without discussion to renew CARDS’s non-residential solid waste collection contract. The contract will be for 2 years and include a 5% franchise fee.

The Board voted unanimously without discussion to purchase a new mid-mount ladder fire truck to replace ladder truck #4 that serves the southwestern part of the city. The truck will cost $2,320,647 from Siddons-Martin Emergency Group.

At the beginning of the meeting Director Christina Catsavis had placed an item on the agenda to do away with the Make My Move program. She said “I think this program’s a failure” and “We should cut our losses and move on.”

Because the Board already discussed the program during the discussion of the carryovers and had already voted to eliminate the program except for funding the existing contractual obligations, the issue was withdrawn.

By ending the program, Director Catsavis said that they were “saving over $200,000” tonight.