Fort Smith Board of Directors Regular Meeting – August 19, 2025

The Fort Smith Board of Directors met on August 19, 2025, at 6:00 p.m. at the Blue Lion, 101 North 2nd Street, to consider a variety of items including economic development incentives, support for the Fort Smith National Historic Site, annexation, cemetery acquisition, water meter audit, and multiple utility easement approvals. The meeting also included public comments, a consent agenda, and an executive session for appointments and performance evaluation.

Consent Calendar

• Resolution 12A: Accepted a public trail easement and approved carryover of $150,000 in FY2024 Parks CIP funds for reimbursement to Arkansas Colleges of Health Education for construction of the ACHE Roberts Connection Trail. (Director Rego abstained as an ACHE employee.)
• Resolution 12B: Authorized Change Order No. 3 with Dale Crampton Company – time only, adding 90 weather-delay days to roof repair contract (revised substantial completion November 28, 2025). No cost change.
• Resolution 12C: Authorized acquisition of water and sewer line easements for Highway 45 Utility Relocation, Project 19-12-C1, totaling $2,700.00.
• Resolution 12D: Authorized acquisition of temporary right-of-entry easements for survey and exploration for Lake Fort Smith Water Transmission Line Phase 5, Project 19-03, totaling $600.00.
• Resolution 12E: Authorized a two-year non-residential solid waste collection permit and agreement with Marck Recycling & Waste Services of NW Arkansas LLC.
• Resolution 12F: Authorized a two-year non-residential solid waste collection permit and agreement renewal with Lakeshore Recycling Systems, LLC d/b/a LRS South, LLC.
• Resolution 12G: Authorized an agreement with Western Arkansas Planning and Development District to provide E911 services for River Valley Communications Center at $75,000 annually beginning January 2026.
• Resolution 12H: Authorized an agreement with Beshears Construction, Inc. to provide construction management services for the River Valley Communications Center project. All consent items passed unanimously except 12A (6-0-1).

Public Comments & Testimony

• Several residents spoke in favor of the resolution supporting the Fort Smith National Historic Site, emphasizing its historical significance and urging continued federal funding and operation under the National Park Service.
• Multiple residents expressed opposition to the AMERESCO water meter audit agreement (Item 6), citing concerns about conflict of interest, cost ($125,000 audit, potential $48 million project), lack of transparency, privacy issues, and the need to prioritize fixing water leaks over meter replacement.
• During the cemetery discussion, citizens urged the city to act quickly but also suggested exploring community partnerships and volunteer efforts before city ownership. One speaker noted that $85,907 in liens had already accrued from code enforcement abatement.
• At the annexation public hearing, no public comments were made.

Discussion Items

• Tax Back Resolution (Project Synergy / Train USA, Inc.): The beneficiary was revealed as Train USA, Inc. They plan to invest $5.56 million in equipment to expand production at 9900 Air Circle, adding 63 new jobs at an average wage of $25.00/hour to their existing workforce of 272. The resolution was approved 7-0.
• Resolution Supporting Fort Smith National Historic Site: Chris Hoover, Grants & Government Relations Manager, presented the resolution opposing proposed federal budget cuts to the National Park Service. The resolution supports continued federal operation and increased funding. Acting Superintendent Darren Huggins thanked the board, noting support from the Inter-Tribal Council of the Five Civilized Tribes (Resolution 25-11 passed unanimously July 11, 2025). Passed 7-0.
• Owens Corning Lease Assignment: A technical resolution consenting to the assignment of the lease agreement from Owens Corning Composite Materials, LLC to a new subsidiary as part of a corporate reorganization. Plant leader Christina Stage was present. Passed 7-0.
• Public Hearing – Annexation (Hwy 271 & Texas Road): Staff summarized the 45-acre enclave (20 parcels: 9 residential, 11 non-residential). A public input session was held June 23, 2025, attended by ~10 property owners. Benefits include city services, lower fire ISO rating (1 vs. 4), and reduced water rates. Impacts include an 8-mill property tax increase and 9.5% sales tax. No public comments at the hearing. The public hearing was closed; the item will proceed to a future ordinance.
• Cemetery Acquisition Resolution: Staff presented three options: (1) continue code enforcement (resulting in liens), (2) lease (constitutionally problematic), (3) city acquisition with forgiveness of ~$86,000 in liens. Estimated startup costs $961,550 and annual ongoing costs $1,249,413. Fort Smith Cemeteries, Inc. representative Ed Ralston answered questions about a $600,000 bank loan and perpetual care trust. Board debated financial impacts and alternatives. Director Kemp moved to table the item for further study; motion passed 7-0.
• AMERESCO Water Meter Audit (Item 6): Phase 1 of a project development agreement for an Investment Grade Audit (IGA) on water meters, cost $125,000. Staff explained the process and that Phase 2 would require board approval. Public comments raised concerns about conflict of interest, cost, and prioritizing leak repairs. No motion was made; the item died for lack of a motion.
• E-Builder Software Renewal (Item 7): Three-year renewal for project management software used by Water Utilities for Consent Decree compliance and operations. Cost $285,286.79. Director Martin inquired about documentation of weather days on a separate item. Approved 6-0.
• Consent Decree Easement Acquisitions (Items 8-10): Items 8 (temporary construction easements for Sub-Basin P005, $1,200), 9 (sewer easements for Sub-Basin S007, $1,185), and 10 (sewer easements for Basin 10 & 14 Capacity Improvements Phase 2, $1,787) were each approved unanimously (6-0).
• Item 11 (Emergency Sewer Repair): Withdrawn from consideration.

Key Outcomes

• Tax Back Resolution (Train USA): Approved 7-0.
• Fort Smith National Historic Site Resolution: Approved 7-0.
• Owens Corning Lease Assignment: Approved 7-0.
• Cemetery Acquisition Resolution: Tabled by motion (7-0) for further study in future study sessions. Staff directed to obtain private mowing costs and explore alternatives.
• AMERESCO Water Meter Audit: Died for lack of motion.
• E-Builder Software Renewal: Approved 6-0.
• Consent Decree Easements (Items 8-10): All approved unanimously (6-0).
• Consent Agenda (Items 12A-H): Adopted; Item A passed 6-0-1 (Rego abstaining), all others 7-0.
• Appointments: Mayor appointed Dr. Daniel Fudge to the Historic District Commission (term to July 31, 2028). Madeline Marquette was reappointed to the Parks and Recreation Commission (term to August 31, 2030). Board accepted appointments unanimously.
• Executive Session: Performance evaluation of Acting City Administrator Jeff Dingman conducted.
• City Administrator Search: Motion passed (5-1) to direct HR to post the City Administrator position opening from September 2, 2025, for 45 days. Director Kemp will serve as board liaison.
• Other: Director Martin raised interest in completing a utility risk assessment with Baker Tilly for $25,000 (over and above existing contract), pending board consensus. Discussion on water conservation measures and a leak at Glenn Flora & Jenny Lind was noted.