Highlights of the Fort Smith Board of Directors Meeting 2/4/25

At the Fort Smith Board of Directors meeting held 2-4-25 and led by Vice Mayor Rego in the absence of Mayor McGill, the public hearing required by State law to be held regarding sewer rate increases was held. The proposed increases to the sewer rates (only sewer, not water) are an annual increase of 3.5% every year through 2030. In 2025, the sewer base charge would increase from $4.50 to $4.66 per month. The charge for 1 CCF of sewer volume would increase from $8.45 to $8.75 in 2025, to $9.05 in 2026, and so on at a rate of 3.5% per year through 2030.The rate increases if approved would begin June 1, 2025 and on January 1 of each following year through 2030. The 3.5% increase would be in keeping with the maximum increase cap promised when the sales tax for consent decree sewer work was approved by voters.

A presentation was made by the City staff regarding the rates. They explained that the rate increases are needed to comply with the consent decree. The cost of consent decree projects that still need funded is estimated (at 2024 prices, without accounting for future inflation) to be $644,774,000. The increases are part of a financial plan presented to the federal government for how the City plans to comply with the consent decree. Another part of that plan is to put it to a public vote on a ballot to renew the Streets and Drainage sales tax, but with instead of the full one percent tax going to Streets and Drainage, the tax being 5/8 going to Streets and Drainage and 3/8 going to consent decree sewer work. This renewal paired with the existing 5/8 cent sales tax for consent decree sewer work would result in a total of an entire one percent of sales tax going to sewer work without an increase in sales taxes.

In 2025, sanitary sewer overflows released 5,438,798 gallons of untreated water (including overflows that ended up in the river as well as ones that did not). The overflow volume was down from its highest year, 2015’s 22,344,948 gallons.

Kim Fodge, Chris Cadelli, Joey McCutcheon, Danny McLemore, Dan Williams, Carl Nevin, and Gwendolyn Lovelace spoke in opposition to the sewer increase. Krystal Cadelli expressed support for the sewer rate increases but paired with a roll back of the recent water rate increases instead. Jo Elsken and Steven Kurtz spoke in support of the sewer rate increases. Beth Riggle complained about property damage done to her property during recent sewer repairs.

Director George Catsavis said “We’re not prioritizing our spending.” He said of the rate increases, “I’m not doing this.” He asked how much revenue would be brought in by the increases. Finance Director Richards answered that the 2025 revenue is estimated to be $629,000 and the 2026 revenue is estimated to be $1.5 million. Director George Catsavis mentioned that the $4.2 million recently spent on additional waterslides for Parrot Island could have deferred the need for rate increases for 4 years.

Director Christina Catsavis said “We need to re-prioritize spending and certainly cut back.” She also mentioned that the federal government wants the City to impose 19% annual sewer rate increases. She said that she was not prepared to vote on the rate increases at this meeting and motioned for the issue to be tabled to the next regular Board meeting.

The Board voted to table the issue to be voted on at the next regular Board meeting with all but Director Good voting in favor of tabling.

The Board was slated to vote on the appeal of the zoning changes for 5300 Heather Ridge that would allow for the 43 acre property to be developed into the Treetops of Fort Smith with a 5.78 acre mixed-use section in the interior of the property and the rest to be developed with residential (a mix of single family houses and multi-family dwellings). apartment units. A traffic impact study that was conducted indicated that the intersection at South 58th and Boston would likely need to be upgraded to a 3-way stop in the future to accommodate the added traffic from the development.

The vote at the Planning Commission meeting regarding the property was tied. That sort of zoning change is required to have a majority vote of the Planning Commission, 5 members, vote in favor of the change, regardless of how many members are in attendance at the meeting. 3 members of the Commission were absent at that meeting. 3 voted in favor and 3 voted against the zoning change.

This issue was discussed at the 1-28-25 meeting.

The developer for the property, Mark Rouse, spoke and talked about the commercial space providing walkable amenities to the neighborhood. He said that the kind of business to be located in the commercial part of the mixed use building would be small businesses like a flower shop, a bakery, or a snack shop, and that it would not be used for a big box store or a grocery store.

David Bourne, representing multiple property owners who live near the proposed development, spoke in opposition to the zoning change. He expressed concerns about the way the project has grown since it was originally approved. He mentioned the 40 decibel increase in noise at his home as a result of baffles being built around a gas well to reduce noise in the newly constructed development directing sound instead towards his house. He expressed concerns about traffic on South 58th, especially with inexperienced drivers driving to Southside High School. He expressed concerns about dirt from the construction going into waterways.

Ben Beland spoke in opposition to the change because of traffic concerns on South 58th. He said a 3-way stop suggested by the traffic study “just can’t work.”

Wayne Gosnell spoke in opposition to the change because of traffic concerns.

Darrell Cunningham spoke in opposition to the change because the commercial uses “change the character of the community.”

Hank Galske spoke in opposition to the change. He mentioned the “cookie cutter cracker boxes” appearance of the residential units and expressed concern that the commercial units would make that even worse. He expressed concerns about the increased traffic. He suggested the area being requested for commercial use be used for a greenspace instead.

Andy Posterick spoke and encouraged the Board to research and consider the financial sustainability of the development including the amount of pipe needed for water and sewer for the development versus how much water and sewer revenue the development would bring in.

Jo Elsken asked if the clear cutting was already done for the development and encouraged saving trees. Rouse answered that it was not clearcut and that an effort would be made to keep as many trees as they can. She expressed concerns about the commercial uses bringing trash. She said “I love the walkability idea.” but also said of the zoning change “It needs to be looked at closer.”

A representative for Traffic Engineering Consultants that conducted the traffic study said that they did account for students driving to Southside when they did the analysis.

David Bourne expressed disapproval of the number of trees cut for the development so far.

The zoning change appeal issue died for lack of a motion. The change was not voted on and was not approved.

The Board voted without discussion in favor of a zoning change for 3215 Old Greenwood Road that will allow for an additional land use, Barbershop/Hair Salon/Nail Salon, at the existing 3 unit multi-tenant building. The vote was unanimous with the exception that Director Christina Catsavis did not vote on the issue because she was not present in her seat to vote on that issue. She was present and did vote on all of the other issues voted on at the meeting.

The Board voted unanimously without discussion in favor of a zoning change for 4019 Towson that will allow for existing buildings to be utilized for a machine, welding, or sheet metal shop.

The Board voted unanimously in favor of a zoning change for 12400 Glass Plant Road that will allow for the undeveloped property to be developed into Bloom Lake Estates and Park, a private gated subdivision including 9 lots for single family homes, a community recreation center, a clubhouse, a private park, walking trails, and an animal park. The animal park will be for axis and spotted deer, alpacas, and emus and would have a total of 8 animals maximum.

Director Martin asked if the water and sewer lines needed for the development would be paid for by the developer. Deputy City Administrator Rice answered that the water lines would be paid for by the developer and that since the property is in the Extraterritorial Jurisdiction rather than inside the city limits that it would not be connected to the sewer system via sewer lines but would have septic tanks at the expense of the developer.

The Board voted unanimously without discussion in favor of a zoning change for 7909 and 8001 Veterans Avenue that will allow for the construction of 6 mini-storage buildings for 59 units of non-climatized storage, conversion of an existing warehouse into contractor shops, and conversion of an existing building into an office building.

The Board was slated to vote on a zoning change for 4401 Savannah that would allow for an existing metal shop building to be remodeled into a 437 unit climatized mini-storage facility.

Director Settle mentioned that the property is next to the airport and asked if it had been vetted regarding security for the airport. Deputy Administrator Rice answered that the property is not within the Military Compatibility area that has extra requirements. Director Settle voiced concern that a “foreign adversary” could rent a unit for “spy equipment” and be within clear “line of sign of the end of the runway.” He motioned to table the issue until it could be vetted in regards to security for the F-35 mission.

The Board voted to table the issue until it can be vetted for airport military security with only Director George Catsavis and Director Rego voting against tabling.

The Board was slated to vote on whether to approve the charter for the Utility Advisory Committee. The Board voted to create the Committee at the 12-3-24 meeting (after having voted to not create the Committee at the 10-8-24 meeting). The charter was discussed and tabled at the 1-7-25 meeting and a revised version of the charter was discussed at the 1-14-25 study session meeting.

There was no discussion on the issue and the issue died for a lack of a motion. The charter was not voted on and not tabled to be added to a future meeting.

The Board voted unanimously without discussion to purchase 2 water line valves for $140,800 from Consolidated Pipe and Supply. One valve will be installed near the Massard and Dallas intersection and will fix the oldest leak on the list of leaks to be fixed. It has been on the list since 2022. The other valve will be installed on Euper Lane just east of I-540.

The Board voted in favor of contracting with RDG Planning and Design for up to $422,000 for the first phase of the creation of a masterplan for the former Acme Brick property purchased by the City to be redeveloped into detention ponds to reduce flooding and a park. The masterplan will include designing 3 different plan options for the property’s future that would include both the stormwater mitigation ponds and the parks amenities and offer options that included both dry ponds (that only fill up when storms fill them) and wet ponds (that remain lake-like year round) and identify possible property that could be sold off and will include the financial plan and cost models for each of the 3 plans including both up-front and maintenance costs. The Board voted against the contract at the 10-8-24 meeting, but the issue was discussed again at the 1-14-25 study session meeting . The contract voted on at the 2-4-25 meeting is for a less expensive contract than was voted down on 10-8-24 ($422,000 versus the previous $698,000) as it is a less comprehensive plan, only an initial phase out of 3 phases.

Krystal Cadelli spoke in opposition to the contract. She expressed concerns about the expense of the parks amenities. She suggested building the stormwater retention ponds only and selling off the remaining land for private development.

Shay Brown spoke in favor of the contract. He said that without a plan money would be wasted and there would be poor land use.

Dr. Charlie Hartsfield spoke and expressed concerns about the cost of the planning and the expense of the project. He suggested that the quarry side of the property could “almost take care of itself” as a dry pond for stormwater.

Joey McCutcheon spoke in opposition to the contract. He expressed concerns about the cost of spending for parks. He suggested that the property be developed with the flood ponds only.

Chris Cadelli spoke in opposition to the contract. He suggested parks spending be focused on existing parks instead of a new one. He expressed concerns about the cost of the planning and the project.

Jo Elsken spoke in support of the contract He said that it would probably be 10-15 years before any money was spent on the parks part of the plan. She said that a “masterplan is essential” to “prevent piecemeal work.”

Director Martin asked about the funding percentages for the contract. Parks Director Deuster said that price of the contract was already included in this year’s budget that has already been approved, with 61% of the cost coming from Parks and 39% coming through Engineering from the Streets and Drainage sales tax.

Director Settle mentioned that originally in discussions leading up to the purchase of the property there were private groups that expressed an interest in partnering with the City on the funding for the biking park amenities. He said that the private group needs to be funding the masterplan.

Director Kemp voiced his concerns about dry ponds including mosquitos. He said that a masterplan would help identify which parts of the property could be sold to possibly “get the whole thing paid for.”

Director George Catsavis mentioned that a flatbed and a dump truck are out of commission at the Parks Department. Deuster said that replacements have been requested the past two years but were not approved as part of the budget. Director George Catsavis said that the request not being funded for 2 years means “there’s no money.”

Director Christina Catsavis mentioned that originally in discussions leading up to the purchase of the property that there was talk of the Walton Foundation partnering with the City to cover the cost of the parks amenities if the City showed them a presentation to request a grant. She said that she wants to break off the frontage along Old Greenwood Road and sell that to make money back and that a masterplan is needed to get that done.

Director Rego said that in seeking partnerships with private organizations those organizations will want to see a “real plan from a real entity” first. He said that since the budget money was already approved for the masterplanning, if the contract is voted down, he wants to see a vote immediately on reappropriation of that money instead of it just sitting around.

Director Good said that he doesn’t want to piecemeal the project. He said we “need a major plan” and a “commitment” regarding flood mitigation.

Director Martin said “We are moving forward on the detention ponds.” He expressed concerns that with it likely being 10 years before anything is done on the parks amenities that the masterplan might be outdated by then and another masterplan would have to be done.

Director Martin asked if anyone had been communicating with any entities regarding private partnership. Director George Catsavis said that Jimmy Taylor Realtors wants to buy and develop the frontage parts of the property. Director Martin clarified that he meant communication about partnership on the parks amenities. Interim City Administrator Dingman said that no, there had not been any communications recently expressing interest in partnering on the parks amenities. He said that the masterplan would create a plan that could be used to “entice” private partnerships. Director Christina Catsavis mentioned the Waltons having expressed interest if the City makes a proposal and requests a “big ask” for the project. Dingman said that the discussion with the Waltons was an “informal discussion.”

Director Kemp said that “we’re gonna get kicked” by costs if the City decides to go back in later and make the ponds wet and expressed that if part of the plan involves selling some of the property for housing that those buyers will want wet ponds rather than dry.

Director Christina Catsavis said that while she feels like the City spends too much on planning and studies and consultants generally, she is support of this one.

The Board voted to contract with RDG for the masterplanning with only Director Martin, Director George Catsavis, and Director Settle voting against the contract.

The Board voted unanimously without discussion to purchase two replacement ACX64 CNG-powered front loading garbage trucks for commercial garbage collection from Autocar for a total of $970,953.20.