Highlights of the Fort Smith Board of Directors Meeting 8/6/24
At the Fort Smith Board of Directors meeting held 8-6-24, the Board voted unanimously to approve a zoning change to allow for a 199 ft tall cellular communications tower to be built at 8202 Veterans Ave. Director Morton noted that there is already a tower there. Deputy Administrator Rice said that the old tower would be removed and replaced with one the same height in a straight mono-pole style that would be able to handle more platforms for more carriers.
It was on the agenda for the Board to vote on leasing the county’s half-ownership of Parrot Island water park for one dollar per year, resulting in the City having sole control over and financial responsibility for the park including operations, upkeep, and expansion instead of the current arrangement where control of and responsibility for the park is shared equally and jointly with the County.
The Board was also slated to vote on purchasing a set of 5 water slides for the park at a total price of $4.2 million. In that original proposal, the City would make a down payment of $1,260,000, then pay the next 30% when the slides are delivered, and then pay the final 40% when the installation is completed. The purchase of the water slides was initially approved by the Board at the 7-9-24 meeting with the plan at that time being for the County to pay the other half of the price of the slides, but the County did not approve spending for what would have been their half of the purchase price. Following their decision to not fund the purchase of the water slides, the County proposed leasing their half of the park to the City.
Fort Smith resident Melissa Woodall (the author of this summary) spoke in opposition to the lease saying that the main issue of contention between the County and the City has been the plans for expansion, so the “only freedom” to be gained from taking on the doubled financial responsibility would be the “opportunity to spend even more money on it.” She mentioned that a lease would result in greater spending for a facility that the City would still not fully own.
Fort Smith resident Tara McDaniel spoke in opposition to the lease and the purchase of the water slides. She mentioned that there are other projects that the money could go to. She expressed concern that the water park is not affordable for many people. She said that it would cost a total of over $90 for her own family to visit the park and called that a “luxury expense”. She questioned the park’s ability to recover the $4.2 million investment and the questioned the costs of upkeep from the expanded park.
Fort Smith resident Denise Wharton Johnson spoke in opposition to the lease and slide purchase. She said she is “disheartened” by spending for a park that is only open 4 months a year. She expressed that the money could be spent elsewhere, suggesting improvements to MLK Park including bringing back the swimming pool, juke box, and snack bar that were once at that location.
Fort Smith resident Jo Elsken spoke in opposition to the lease and slide purchase saying “expansion is not necessary right now.” She said that a “good deal is still spending money.” She suggested that the money could be better spent on projects elsewhere in the city, Project Concern, or for the EPA fines.
Fort Smith resident Rick Murphy spoke against the lease and slide purchase. He suggested that the City and County meet jointly and discuss the issue together instead. He called the spending on the slides in such close proximity to when water rates were raised “distasteful timing.” He questioned whether Parrot Island enhances the city’s attractiveness.
Director Good mentioned having listened to the County meeting on the issue and said that there was a “political mindset” from the County at the meeting.
He said that there are lots of amenities that “tax dollars pay for that people just don’t want to take part of.” but that for attending the water park “opportunity is there if they so choose.” He expressed the view that the City is like a business and the water park is an investment . He said “Return on investment is not always financial.” He said the park has an ROI in entertainment and growth. He said that it is “very much used.” He said that the youth and business people he talked to recently support it and they said “it’s a no-brainer.” Of the suggestion that the money could be used to fund the water department to avoid water rate increases, he said that the “rate should pay for service anyway” and said spending $4 million on the water department expenses would only be a “drop in the bucket” and that any impact from that investment would be gone in the very first year and things would be right back to where they are currently.
Director Rego mentioned that 70% of the customers at the water park come from outside of Fort Smith. He said that those people coming in from out of town may be spending money other places in town while they’re here besides just inside the park. He said of other projects, the City “can do and are doing lots of things.” He said that there is budget available to purchase the slides that “does not have a negative impact” on other projects.
Director Settle mentioned listening to the County meetings and said the the County’s “priorities have changed” and that they “want to get out of the water park business”. He said without the lease the water park “will never get an expansion again.” He praised the water park for giving teens and kids something to do. He said that kids would say yes to buying the slides. He praised the savings opportunity that the discounted slides offer. He expressed support for the expansion as a part of making Fort Smith a “destination city.”
Director George Catsavis noted that no one representing the County was present at the meeting to answer questions from the Board. He called it “strange” that the County was not there to answer questions regarding the lease. He also asked “Why not just give us their half if they want out so bad?” He expressed opposition to the lease and called it “plain insanity” and a “bad idea”. He said “We have other issues that money would pay for.”
Director Martin said the original 2012 agreement with the County for joint operation of the park mentions repeatedly doing things in a “cooperative and collaborative fashion” and now the County has asked to “not collaborate”. He mentioned that the general fund surplus is projected to be $29 million at the end of the year. He noted that the general fund has a 42% reserve balance. Director Settle said that in his experience the general fund balance usually also ends up higher than estimated at the end of the year.
Director Morton said that before considering the lease he wants approval from the County for the latest version of the lease and wants information on the financial details of Parrot Island and how much deferred maintenance there would be to do in 2025-2026. He mentioned that all the money Parrot Island makes has been being put right into the maintenance fund for the park and that the City and County still have to add funds on top of that. He mentioned the original agreement with the County is for 20 years, so the County is obligated to pay their half of the maintenance regardless of whether they want to or not until 2032 unless they lease their half to the City. He said that he voted for the allocation for $2.1 million for the slide purchase in anticipation that the County would pay the other half of the purchase price, but that he did not support spending much more than that on the slide purchase. He expressed that while the general fund has room for the $2.1 million, there is demand on the general fund for other unplanned expenses. He said the “military is gonna ask us to do things we’re not aware of yet” in relation to the Foreign Military Sales F-35 project. He said “4.2 million is too much.” He said that with the 70% of park customers coming from outside of Fort Smith coming dominantly from reasonably nearby areas like Northwest Arkansas and Little Rock, that those visitors probably drive back home at night after their visit and spend very little in Fort Smith, resulting in Fort Smith only getting the little bit of sales tax from food purchases inside Parrot Island.
Director Christina Catsavis said “I understand the County rethinking their role” but “that’s why we have contracts.” She suggested that the County give the facility to the City outright. She expressed opposition to leasing that would mean paying for all of the maintenance and still only owning half the park. Of the slide purchase, she said she was “against it at 2.1 and am against it at 4.2.”
Director Good addressed the suggestion that the money should be spent on amenities at MLK Park. He mentioned being very involved in public meetings regarding that park. He acknowledged that what amenities the park ended up with “may not be exactly what we asked for.” but noted that at the meetings people said “if not a pool, a splash pad and skate park.” He said “Plans change and so do politics.” and “There is a history behind all of this.” He said waiting 5-10 years to invest in the slides would more than double the cost.
Director Rego asked if the current agreement with the County precludes the City purchasing the slides at 100% their own expense (no financial input from the County). City Attorney Rowe answered “I doubt that’s precluded.” Director Rego said that he is “not all that amenable to releasing the County from their legal obligation.” He mentioned that the county is also planning on visiting several other agreements with the City including a 2009 one involving the jail, one from 1985, and a 1979 one regarding the County/City Health Center.
Director Rego suggested tabling the lease issue and using the $2.1 million already appropriated for the slides to make the down payment to secure the slides and then the City could finish the purchase in the future.
Director Settle agreed with Director Rego on making the down payment and then budgeting for the rest on the 2025 budget. He said that the expansion would give Fort Smith the tallest slide, the most slides, and make it the largest water park in Arkansas.
Director Morton agreed with Rego on the tabling but wanted to stipulate that the payment be held by a third party and made refundable. He said that the “manufacturer is in a bit of a tough spot” so the City might be able to negotiate a better deal. Of the lease, he said “The lease makes sense to look at carefully and see if we can negotiate.”
Director Christina Catsavis expressed concern that if the deposit were made that there would be a mindset that the Board would have to approve the rest of the spending to not lose the deposit that was already made. She said emphatically “I will not do it.” She said that she will not be “doing business with a gun to my head.” She said the “whole things’s a bad deal” and that the County should “let us have it.”
Fort Smith resident Melissa Woodall (the author of this summary) spoke in opposition to the slide purchase. She mentioned there being other priorities that the money could be spent on that would be more in line with the priorities of most residents. She expressed concern about spending tax payer money on a park that many residents cannot afford to attend frequently calling the purchase “the poor subsidizing a literal playground for the rich.” She acknowledged the heavy discount on the slides being tempting, but encouraged the Board to prioritize more pressing needs.
Fort Smith resident Rick Murphy spoke encouraging the Board to engage in a “collaborative discussion” with the County saying “Let’s talk to each other.”
For Smith resident Terri Hargrove spoke in opposition to the slide purchase. She expressed concern about the lack of affordability of admission to the park. She expressed a preference for using that money for other things including suggestions such as solar panels and feeding school children.
Fort Smith resident James Gill spoke in opposition to the slide purchase. He expressed concern about spending money at the park that is not generating enough revenue. He called it a “cost sink.” He said that people are struggling. He suggested that other problems could be fixed with the money including work on sewer issues.
Fort Smith resident Joey McCutcheon spoke in opposition to the slide purchase. He called it a “matter of timing” and “a little tone deaf” to spend on water slides so soon after enacting a water rate increase and when the City is having to settle with the federal government for sewer overflows.
Director Martin expressed concern that the Board would be “tied to it” if they used the previously allocated $2.1 million on the deposit, with having to allocate more money in the future to finish the purchase. He said “I don’t know if authorizing any dollars is the right thing to do.
Director Christina Catsavis said of the previous vote to approve the $2.1 million “I’m glad I voted against it because I feel like this whole Board’s been conned.”
Director Morton said “I like the amenity. At the same time, we’re constrained financially.”
Director Good mentioned that non-profits get a discounted admission rate at the waterpark of $13 each instead of $25. He also said that schools get a discounted admission rate of $5 each for their field days.
Director Christina Catsavis mentioned that when she asked about getting the water towers power washed or painted that she was told that the City cannot afford that and now there seems to be money to spend on the slides that is a much higher expense than the water tower maintenance would be.
Director Settle called the slide purchase a “25-30 year investment” with his future grandchildren being able to enjoy the slides someday. Telling a story from his own childhood, he spoke about season passes to a water park being an affordable alternative to a vacation for families on tight budgets.
Director Rego motioned to table both the lease issue and the slide purchase issue and to direct the Administration to make a good faith deposit from the $2.1 million allocation to purchase the slides. That motion was defeated with all but Director Settle, Director Rego, and Director Good voting against the tabling both issues and making the deposit. Then the Board voted on a solo measure to table the lease issue. Tabling the lease was approved with all but Director Christina Catsavis voting in favor of tabling. Then the Board voted on tabling the slide purchase issue until two more meetings later to allow for negotiations on price (without making any deposit). Tabling the slide purchase was approved with all but Director Christina Catsavis voting in favor of tabling.
The Board voted to accept a legal settlement with the federal government for a total of $590,000 for penalties resulting from 481 sanitary sewer overflows (SSOs)that occurred between July 1, 2021 and December 31, 2023.
Fort Smith resident Joey McCutcheon spoke and mentioned that in the letter from the government regarding the overflows that it was said that there are other violations. He inquired about how much those might cost.
Director Morton asked for amounts on those additional violation costs. Utilities Director McAvoy did not have the numbers on hand for those but said that they were from missed consent decree deadlines resulting from covid, the 2019 flood, and supply chain issues.
Director Morton mentioned that many of the SSOs were caused by grease. McAvoy agreed that they were residential and caused by people pouring grease down the sinks in their home kitchens. He said that his department deals with these with targeted cleaning and also standard cleaning but “could clean every week” and still couldn’t keep up entirely. He also said that the department works to educate people about the importance of not putting grease down the drain. Director Morton asked if we are “never gonna get away from this problem.” McAvoy said “I don’t have the equipment, manpower, or program.” Director Christina Catsavis asked if it would cost more than $4.2 million to have the equipment, manpower, and program to deal with that problem. McAvoy confirmed that it would take more than that. Director Settle said of residential grease issues, that you “can educate but nothing is gonna stop it.”
Director Christina Catsavis expressed frustration that the consent decree terms have not been amended. McAvoy said “I feel your frustration.”
Director Martin noted that there are a lot of other causes of SSOs besides grease and asked if the utilities department has fixed these. McAvoy said on dry weather SSOs that they have cleaned the pipes and removed the debris. On the wet weather ones, they’ve recently addressed 22 of those. Martin noted the high frequency of SSOs. McAvoy said that in July there were 3, one wet and 2 dry, and that one of those was from a smoke test that caused a small amount of clean toilet water to splash out of a toilet (but even tiny events must be reported as SSOs if they are reported to the City). Director Martin asked about the many SSOs that were hundreds of gallons. McAvoy said that they were wet weather ones. Many were a result of abnormal rainfall and some were because the Sunnymead EQ basin was down in 2022 and could not divert excess water flow. Director Martin said that the SSO situation reminds him of the 30-40 years of “lack of attention” paid to sewer problems by prior Boards. He said “I don’t see us getting out.” McAvoy said “We’re working towards it.”
Director Settle expressed frustration with how the consent decree defines SSOs in a way that includes very small issues. He mentioned that the Chevron Doctrine being overturned recently by the Supreme Court may affect the consent decree. He said of the money for the settlement, it is “unfortunate we can’t spend on the consent decree work instead of sending it to bureaucrats.” McAvoy also expressed agreement that the stipulated penalties are “counter productive” and expressed a desire to be able to invest the money in sewer work “instead of sending it to Washington, DC.”
The payment of the settlement was approved with all but Director Settle voting in favor.
The Board voted unanimously to contract with Denali Water Solutions for $252,735.69 for the removal and disposal of sludge in the Southwest Lagoon at the Lee Creek water treatment facility. The treatment operations create sludge that is stored in four on-site lagoons and the Southwest Lagoon is currently full.
Director Morton mentioned recent news that Denali is no longer allowed to distribute waste in Missouri. He asked where the sludge will go. McAvoy said that where the sludge goes is up to Denali but that they do have to provide proper disposal of it.
Director Martin asked about the smell of the procedure, mentioning the very bad smells in the air in Fort Smith that were caused a few years ago by lagoon cleaning in Crawford County. McAvoy said that the offensive lagoon was not a backwash lagoon, it was a lagoon that had food manufacturer waste in it. The lagoon at Lee Creek will have no smell and the sediment contained in it is mostly dirt.
The Board voted unanimously with no further discussion in favor of applying for a $250,000 grant from the Arkansas Department of Parks, Heritage and Tourism to be used for constructing pickleball courts at John Bell Jr. Park.
