Fort Smith Board of Directors Study Session & Special Meeting - August 12, 2025

The Fort Smith Board of Directors held a study session and special meeting on August 12, 2025, at 6:00 p.m. at the Blue Lion. The study session covered three main topics: the potential sale of city-owned properties, a proposed 360-degree review process for department heads, and a fleet leasing program for the police department. Public comments addressed park renovations, downtown revitalization, water meter concerns, and water resource management. Following the study session, the board convened a special meeting to appoint a Director of Internal Audit.

Public Comments & Testimony

• Charlie Hartsfield expressed frustration about the removal of playground equipment at a neighborhood park (renovation at 20-square-block area, $400,000 allocated) without new equipment installed for three months. He also questioned delays in water park slide installation, noting $4 million spent with slides not yet up. The Acting City Administrator responded that the park renovation is expected to be completed this fall and that the water park design is nearing completion, with bidding to follow. A board member noted that approximately $1.6–$1.7 million of the water park funds remain unspent and are drawing interest.
• Andy Posterick advocated for preserving traditional development patterns in Fort Smith, particularly the historic grid in the northern half of the city. He shared a resident's recollection of downtown decline and proposed a radical idea: adjusting property tax rates by lowering taxes on structures and raising taxes on land value (a "single tax" concept). He referenced a historical Fort Smith newspaper article claiming Vancouver, B.C.'s population doubled in three years after such a change. He suggested starting at the business owner level before approaching the board.
• Crystal Cadelli raised concerns about the adoption of AMI water meters, citing potential issues with poor data quality from weather debris, calibration problems, communication failures, and a failed implementation in Toronto that cost millions. She argued it would be more cost-effective to replace existing plastic-housing meters with non-plastic options (estimated under $10 million citywide) and preserve meter reader jobs. She recommended allocating the $30+ million saved to replace aging water lines and upgrade stormwater systems, noting that some properties in non-floodplain areas flood due to outdated infrastructure.
• Joe Elskin expressed concern about falling aquifer levels, referencing an article in Talk Business & Politics. He urged the board to consider comprehensive water resource management given Fort Smith's growth, industrial needs, and agricultural demands (poultry nearly $8 billion, rice half of U.S. supply). He specifically hoped the city would not sell large amounts of water to the proposed Franklin prison, calling it an "unfounded concern" but urging caution.

Discussion Items

1. City-owned properties considered for sale

• Acting City Administrator Jeff Dingman presented 18 properties identified from the June 10 study session as having no current city use. The properties were categorized:
  • 5 "most likely to sell" (including the former Bost building at 1801 S 74th St, suggested for nominal conveyance to Methodist Village for daycare)
  • 4 "most valuable to adjacent property owners"
  • 9 acquired through flood residence buyout, with deed restrictions prohibiting new structures
• Board members discussed specific properties:
  • Director Settle suggested the Texas Road property be offered to the school district for parking; he also supported deeding the 1801 S 74th St property back to Methodist Village.
  • Director Christina Catsavis objected to deeding remnant parcels to adjacent landowners, citing past practice of requiring bids (e.g., a Garrison parcel sold for $150,000). She noted the Edinburgh Drive flood buyout properties may not be in a floodplain but were purchased due to an undersized drainage ditch.
  • Director Kemp supported selling to reduce city maintenance costs and replenish the general fund, but questioned the process for deeding back to Methodist Village—whether they would have to bid or receive it for nominal fee. Dingman clarified the board would decide.
  • Director Martin emphasized getting fair market value for high-value properties like 4401 Mazard Road (current appraisal ~$9,000) and returning funds to the general fund.
  • Director George Catsavis asked about property appraisals and whether to involve a real estate agent if the codified process yields no suitable bids.
  • Director Rego sought clarity on the process: the city would get appraisals, publish notice, notify adjacent owners, and invite bids. The board could accept or reject bids.
  • Director Christina Catsavis noted the 4401 Mazard Road appraisal may be low and requested an updated appraisal. She also clarified her earlier comments were limited to remnant parcels, not Methodist Village.
  • Several directors supported retaining the historic structure at 800 North Ninth Street or selling with restrictions to allow development.

2. 360-degree review of city departments

• Dingman explained that a comprehensive 360-degree review tool for entire departments was not found; instead, he proposed multi-rater assessments for department heads (similar to ICMA's Credentialed Manager program), costing $250–$400 each.
• Director Kemp presented an alternative: a free Google Forms-based 360 review for department heads, with ratings (1–5) on core behaviors, open-ended feedback, and self-assessment. He proposed distributing surveys to subordinates, peers, the city administrator, and possibly board members, with results shared publicly or privately. The target window would be June, after annual written evaluations in Q1.
• Director Martin expressed openness to receiving such feedback.
• No formal decision was made; the discussion was for concept exploration.

3. Fleet leasing program for Fort Smith Police Department

• Chief Danny Baker presented the need: current fleet average age is 7.6 years; 33 vehicles over 10 years; 4 vehicles have yearly maintenance costs exceeding their value; two vehicles cost over $25,000 each in maintenance; 8 patrol vehicles have over 120,000 miles (idle time equivalent ~400,000 miles); one vehicle is 28 years old. Last year, the city spent nearly $600,000 to replace 8 vehicles.
• Proposed program: Enterprise Fleet Management open-end lease. Year 1: replace 60 vehicles (out of ~149 total) at a capital outlay of ~$976,000 (lease payments $751,000 plus aftermarket down payment). Maintenance costs would drop from $280/vehicle to ~$60/vehicle monthly. Fuel costs would decrease due to newer, more efficient vehicles. Estimated 10-year net savings of $1.8 million, or average $24,000/year.
• Enterprise representative John Holland noted that the city retains equity at lease end, there are no mileage or wear-and-tear penalties, and vehicles are sold through Enterprise's network (averaging 15–20% above Black Book value). The program would allow a five-year replacement cycle instead of the current 10+ year cycle.
• Chief Baker emphasized that this would enable a take-home vehicle program for officers, improving morale and retention. He cited losing an officer to a smaller agency that guaranteed a take-home vehicle. The cost would be absorbed within the existing police department budget without additional general fund impact, using funds currently budgeted for vehicle purchases.
• Board questions addressed insurance (covered same as owned vehicles, vetted with AML), vehicle type (gas, not electric; analysis to determine best models), potential downsides (never owning vehicles, but equity returned), and risk of price fluctuations (lease payments fixed for term but future vehicles reflect then-current prices).
• Director Kemp noted predictable costs as a key advantage. Chief Baker requested board approval as soon as possible so orders could be placed for January 1, 2026 implementation.

4. Preliminary agenda for August 19, 2025 regular meeting

• Briefly reviewed; no questions raised.

Key Outcomes

• Study Session: No formal votes were taken on the three discussion items; they were for board consideration. Staff will proceed with appraisals and the codified sale process for city-owned properties as directed. The 360 review concept and fleet leasing program will be brought back for formal board action at a later regular meeting.
• Special Meeting (Executive Session): The board approved the appointment of Amanda Strange as Director of Internal Audit, pending finalization of an employment agreement and confirmation at the September 2, 2025 regular meeting (motion by Kemp, seconded; unanimous 5-0 vote).
• Next Scheduled Meeting: Strategic workshop on August 22, 2025, at 8:30 a.m. at Regions Bank Building, 524 Garrison, 7th floor.