Highlights of the Fort Smith Board of Directors Study Session 8/24/21
Most of the 8-24-21 Fort Smith Board or Directors study session meeting was devoted to the update on the Consent Decree. In 2015, when the decree was originally issued the total cost was estimated at 200 million dollars over 12 years. The cost at a current estimate is about 650 million dollars. From 2000 to now, we’ve spent $302,112,797.74 (mostly between 2008 and 2015)on sewer projects to avoid and/or comply with the decree.
Originally it was estimated that 25% of the sewers would need repairs to comply, but it turns out that it’s really over 32%. Inflation is also a problem in that the original estimate was calculated with 2% inflation and we’re currently up to 5%. Pandemic related issues and shortages are causing delays and cost increases. The PVC shortage in particular is holding up at least one project. The PVC shortage is being documented as a force majeure for consideration for a possible extension on the decree.
Director Settle expressed frustration with the federal government. He feels that our community is doing what we can and would like for the authorities from the federal government to come her physically and meet with us locally and see what we’re doing and point out what we’re doing wrong. Director Morton expressed that he feels we need to convince the State of Arkansas first before we’ll be successful at convincing the federal government. Director Good expressed that he does not want to raise sewer rates and many other Directors seemed to agree with that sentiment that skyrocketing rates significantly wasn’t a feasible solution. Morton expressed an interest in getting as much of the repair work done as we can as fast as we can (as soon as the pandemic isn’t such a hindrance) to help soften the impact of costs rising over time. Director Catsavis questioned Aqualaw’s performance and Utilities Director McAvoy and City Administrator Geffken defended the value of their contributions.
McAvoy expressed that we are hoping for the DOJ and EPA to right-size the consent decree and/or give us a longer time frame to deal with it, but we are simultaneously also planning for that not to happen.
There was also an update on the FEMA money for water and sewer repair from the flood damage. 10 projects have received funding and one large one left ($600,000) should receive funding any day now. Pump Station #10 repair had been denied, but upon appeal was approved. The pandemic has pushed back some projects that require on-site visits from FEMA field agents. Compared with other municipalities dealing with this same flood funding from FEMA, we’re right in line. It can be conservatively estimated that we’re highly likely to eventually receive 7 million of the 10-14 million total we’ve requested.
There was very little discussion of the departmental service objectives collected by the Finance Department as a part of the 2022 budget planning. All of the outcomes on the 2021 objectives and planned objectives for 2022 were presented thoroughly by all of the departments in the agenda packet. So there was little interest in in-person discussion at the meeting. One item that was discussed,though, was that Transit ridership numbers are coming back. Following a significant pandemic related dip, down to around half of the previous figures, they are currently back up to about 70% of the Pre-Covid numbers and steadily increasing and projected to continue to rise.
A goal was set to by the first of next year have a new official name for the facility at 101 North 2nd where city meetings are now being held (most recently named the Blue Lion). The Directors will be thinking on it and listening to input from the public on suggestions. Some of the potential names mentioned at the meeting were City of Fort Smith Center, Board of Directors Center, Fort Smith Town Hall, and Fort Smith Town Hall Center.
