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Record of Proceedings

Fort Smith Board of Directors Regular Meeting - July 22, 2025

Meeting Portal — Tuesday, July 22, 2025
BodyFort Smith, Arkansas
SessionMeeting Portal
DateTuesday, July 22, 2025
StatusFILED
Video Record
0:00 / 2:14:27

Original source
Transcript — VerbatimClick a timed line to jump · ⧉ to share it
0:32

Good evening and welcome to the force of Mississippi Board of Directors meeting this July 22nd of 2025.

0:40

Keep in mind these meetings are being recorded for the purpose of those who cannot attend with us in person.

0:47

This time we're going to ask uh Director Kemp to lead the invocation and Director Regal, if you don't mind, lead us in the pledge.

0:59

Would you pray with me?

1:01

Heavenly Father, we come to you tonight thanking you for every good and perfect gift comes from above.

1:07

We acknowledge that.

1:09

We pray that Lord you would help us to never take our blessings for granted, and that we would steward those well in the care for those in our community.

1:18

Lord, open up our eyes for the opportunity, keep our spirits settled upon strength and peace and confidence.

1:27

Thank you for the good things you've given us.

1:28

Give us wisdom and guidance as we deliberate over great opportunities for the city of Fort Smith.

1:34

We thank you for the blessings of it all in Jesus' name.

1:37

Amen.

1:38

Amen.

1:39

I pledge allegiance to the flag of the United States of America and to the Republic for which it stands one nation under God, indivisible with liberty and justice for all.

1:57

Thank you very much.

2:03

Here.

2:04

Good.

2:04

Here.

2:05

Kim?

2:05

Here.

2:06

George Gitzavis.

2:07

Here.

2:07

Christina Get Savis here.

2:09

Settled.

2:10

Here.

2:10

Martin.

2:10

Here.

2:11

Okay.

2:12

Thank you.

2:13

Uh this time I'll ask if there's a any member of the board of directors that may have an item of business not already on the agenda.

2:21

Okay.

2:21

Thank you.

2:22

Seeing none.

2:23

This time we'll entertain a motion to approve the minutes of the July 8th, 2025 regular meeting.

2:28

So moved.

2:28

And the July 15th, 2025 special meeting.

2:32

As revised.

2:33

As revised.

2:36

Okay.

2:37

Thank you, Madam Clerk.

2:38

Okay, and we did get a second.

2:40

Okay.

2:41

Okay.

2:42

If I may, who seconded?

2:45

George is actually.

2:47

Okay.

2:47

All in favor?

2:49

Aye.

2:50

Okay.

2:50

Thank you.

2:52

This time we will go to the first item on the agenda.

2:57

The the first item uh this evening is an intent resolution to authorize the offering of sales and use tax bonds to finance sewer and consent decree projects.

3:07

On May the 13th, the city's voters authorized the issuance of up to $385 million in sales tax bonds to finance consent decree and wastewater projects, along with the reallocation of the local sales taxes to finance the bonds.

3:20

The city intends to issue the first 100 million dollars in bonds with this first series, and the bonds will fund construction of up to eight capital projects that we intend to have under contract by the end of the calendar year, plus potentially design of three additional projects.

3:35

Tonight's resolution starts the process.

3:37

It denotes the amount of bonds to be issued as well as identifies the underwriting team, the financial advisor, and the bond council that will be involved in the project.

3:46

An ordinance authorizing the issuance of the bonds will be brought to the board for approval in September, and the funds are scheduled to be available in late October.

3:55

Lauren Lowe and Marcy Lewis from the City's Financial Advisor PFM are here this evening to answer any questions the board may have, as is Chef Russell, the City's bond council.

4:05

Okay.

4:05

Thank you very much.

Discussion Breakdown — Share of Meeting
Procedural███████████████████████████████31%
Water And Wastewater Management████████████████████20%
Financial Oversight███████████11%
Engineering And Infrastructure███████7%
Technology and Innovation███████7%
Environmental Protection██████6%
Parks and Recreation█████5%
Economic Development████4%
Procurement███3%
Summary of Proceedings

Fort Smith Board of Directors Regular Meeting - July 22, 2025

The Fort Smith Board of Directors met on July 22, 2025, at the Blue Lion in Fort Smith, Arkansas. The board approved a $100 million sales tax bond issuance for sewer improvements, adopted the Energy & Environment Innovation Comprehensive Action Plan (CAP), established a new pay schedule for city engineers, and authorized several engineering service agreements. The consent agenda included six items, with one item (AMERESCO audit) tabled to the August meeting. The board also held an executive session for appointments and a candidate interview.

Consent Calendar

  • 6A: Resolution formally adopting Grant Policies and Procedures for the City of Fort Smith.
  • 6B: Resolution authorizing application to the Arkansas Community Assistance Grant Program for Creekmore Park Tennis Courts ($893,600 grant, $223,400 local match).
  • 6C: Resolution authorizing settlement of litigation Asentha Saul v. City of Fort Smith for $9,500.
  • 6D: Resolution authorizing Agreement to Initiate land exchange with U.S. Forest Service (458.51 non-federal acres for 358.1 federal acres around Lake Fort Smith).
  • 6F: Resolution accepting bid for I-540/Highway 255 utility relocation ($370,325.75 to Goodwin & Goodwin, Inc.; 100% reimbursable by ARDoT). All consent items were approved 7-0, with Item 6E removed for separate discussion.

Public Comments & Testimony

  • Levon Morton (citizen) urged the board to prioritize low interest rates and adequate debt service coverage (1.25x) for the bond issuance, and supported the underwriting team recommendation.
  • Dr. Rick Murphy (Citizens Climate League) expressed strong support for the Energy & Environment Innovation CAP, calling it a comprehensive vision for a clean and green Fort Smith, and urged adoption.
  • Joe Elskin (citizen) supported the CAP as an aspirational plan that demonstrates care for the environment and workforce development, and emphasized it does not obligate spending.

Discussion Items

  • Item 1 – Sales and Use Tax Bonds (Resolution): The board authorized the first series of up to $100 million in sales tax bonds to finance sewer improvements and consent decree projects. PFM Financial Advisors presented the plan, noting a projected all-in interest rate of approximately 4.9–5% and a mid-September pricing date. The underwriting team includes Stephens Inc., Crews & Associates, and Raymond James. Directors discussed the debt service coverage ratio, potential for future refinancing, and credit rating expectations (likely A+ to AA-). Approved 7-0.
  • Item 2 – Energy & Environment Innovation Comprehensive Action Plan (Resolution): The plan, required by a Climate Pollution Reduction Grant (CPRG) agreement with the Arkansas Department of Energy & Environment, outlines optional GHG reduction strategies across transportation, energy, waste, and land use. Public input included two meetings and 363 survey responses. Director Neal Martin expressed concerns about scope (materials recovery facility, solar infrastructure, building code updates) and potential costs to residents. Directors Lee Kemp and Andre' Good noted the plan does not mandate expenditures or code changes, and aligns with current federal administration priorities. Approved 4-2-1 (Directors Martin and Settle opposed; Director George Catsavis abstained).
  • Item 3 – Engineer Pay Ordinance: The ordinance establishes a separate pay schedule (Grades E01–E06) for licensed professional engineers in the city's engineering departments and other city employees holding a PE license. Effective July 21, 2025, the schedule ranges from $75,000 to $180,000 annually. Funds are already budgeted for 2025. Approved 7-0.
  • Item 4 – Engineering Services for 2025 Streets/Bridges/Drainage Program (Resolution): Authorized three agreements totaling $1,228,710 for design of street overlay/reconstruction projects (approx. 9 miles) that also include consent decree sewer work (approx. 6.3 miles). Firms: Hawkins-Weir ($291,250), Brixey Engineering ($402,000), Mickle Griffin ($535,460). Design funding from sales tax; sewer portion from 5/8% sales tax. Approved 7-0.
  • Item 6E – AMERESCO Investment Grade Audit (Tabled): This item would authorize a $125,000 Phase I audit of water meters (including 400 large meters and statistical sampling of small meters) to evaluate revenue loss and potential for an AMI system. Directors raised concerns about cost, precedent, and whether the city could do this internally. Director Kevin Settle moved to table to the August meeting to allow a one-page summary clarifying scope and costs. Motion passed 4-3 (Directors Christina Catsavis, Settle, Martin, George Catsavis in favor; Directors Rego, Good, Kemp opposed).

Key Outcomes

  • Approved: Sale of up to $100 million in sales and use tax bonds (7-0).
  • Approved: Energy & Environment Innovation Comprehensive Action Plan (4-2-1).
  • Approved: Engineer pay ordinance (7-0).
  • Approved: Engineering services for street/sewer projects (7-0).
  • Approved: Consent agenda items A, B, C, D, F (7-0).
  • Tabled: AMERESCO investment grade audit to the second meeting in August (4-3).
  • Executive Session: Conducted without action on the internal audit candidate (Jason Mitchell) and the Historic District Commission appointment. The board appointed Pete Hanham to the Property Owners Appeal Board (term expires July 14, 2029). No action reported on the Port Authority appointment.
  • Directors' Requests: Director Neal Martin requested study sessions on the water line construction progress and on current street projects/pending reallocation of funds. Director Christina Catsavis requested a FOIA policy and expressed concerns about procurement practices (vowing to vote no on contracts with only one bid unless emergency). Director Jarred Rego requested a study session on the entertainment fund and OVG contract renewal. Director Andre' Good asked for updates on Cliff Drive overgrowth enforcement (12 properties posted) and the Sixth/Wheeler intersection design (still under review). The board announced a mid-year budget review and strategic planning discussion for the following week.

Officials Forum

  • The 184th Attack Squadron was recognized as the best RPA squadron in the U.S. Air Force.
  • A celebration parade for NBA champions Jalen Williams and Isaiah Joe (Oklahoma City Thunder) will be held Thursday, July 24.
  • Creekmore Park pool reopened with a successful tournament; Parrot Island Water Park celebrated its one-millionth visitor on July 19.

Meeting Transcript

Good evening and welcome to the force of Mississippi Board of Directors meeting this July 22nd of 2025. Keep in mind these meetings are being recorded for the purpose of those who cannot attend with us in person. This time we're going to ask uh Director Kemp to lead the invocation and Director Regal, if you don't mind, lead us in the pledge. Would you pray with me? Heavenly Father, we come to you tonight thanking you for every good and perfect gift comes from above. We acknowledge that. We pray that Lord you would help us to never take our blessings for granted, and that we would steward those well in the care for those in our community. Lord, open up our eyes for the opportunity, keep our spirits settled upon strength and peace and confidence. Thank you for the good things you've given us. Give us wisdom and guidance as we deliberate over great opportunities for the city of Fort Smith. We thank you for the blessings of it all in Jesus' name. Amen. Amen. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands one nation under God, indivisible with liberty and justice for all. Thank you very much. Here. Good. Here. Kim? Here. George Gitzavis. Here. Christina Get Savis here. Settled. Here. Martin. Here. Okay. Thank you. Uh this time I'll ask if there's a any member of the board of directors that may have an item of business not already on the agenda. Okay. Thank you. Seeing none. This time we'll entertain a motion to approve the minutes of the July 8th, 2025 regular meeting. So moved. And the July 15th, 2025 special meeting. As revised. As revised. Okay. Thank you, Madam Clerk. Okay, and we did get a second. Okay. Okay. If I may, who seconded? George is actually. Okay. All in favor? Aye. Okay. Thank you.

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