Fort Smith Board of Directors Regular Meeting & Special Study Session

September 16, 2025

The Fort Smith Board of Directors held a regular meeting and a special study session on September 16, 2025. The regular meeting included votes on amendments to the convention center management agreement, several consent decree easement acquisitions, a partial payment for sewer remediation, and the consent agenda. A special study session followed to review the 2026 preliminary budget for the Water Utilities Department.

Consent Calendar

• Items 7B, 7C, 7E, 7F, 7G were approved together by a vote of 7-0, except for 7B (audit contract) which passed 6-1 (Director George Catsavis opposed).
• Item 7A (loaned personnel agreement with Burns & McDonnell) was pulled for separate discussion and later tabled.
• Item 7D (Creekmore Park Pool final payment) was pulled and approved separately by a vote of 7-0.

Public Comments & Testimony

• Kim Fodge spoke on Item 1B (off-site catering), opposing the city competing with private businesses. She argued that local businesses cannot compete with a subsidized city entity and requested reciprocity for on-site catering.
• Joey McCutcheon spoke on multiple items: He criticized Director Andre’ Good for walking out during a moment of silence, echoed Fodge’s concerns about 1B, and questioned the city’s handling of employee transitions and the need for an engineering expert for consent decree projects.

Discussion Items

• Item 1A – Second Amendment to OVG Management Agreement (Term & Parking): Approved 5-2 (Directors Christina Catsavis and Neal Martin opposed). The amendment extends the agreement term to December 31, 2028, with a city option for a two-year renewal, and adds parking advisory services at no cost to the city. Director Martin questioned the term extension and parking revenue transparency; Director Christina Catsavis expressed concern about unfunded action items from the parking study.
• Item 1B – Third Amendment to OVG Management Agreement (Off-Site Catering): No motion was made; the item died for lack of a second. Director Kemp and citizens voiced concerns about unfair competition with private businesses given the city’s subsidy.
• Item 7A – Loaned Personnel Agreement with Burns & McDonnell: Tabled to a future study session by a vote of 7-0. The agreement would provide an interim engineering director for six months at a cost not to exceed $317,493. Director Martin expressed concern about the cost; former Director Lavon Morton suggested hiring a firm with large-city consent decree experience.
• Special Study Session – 2026 Preliminary Water Utilities Budget: Staff presented a draft budget with $80.5 million in expenses and $71.1 million in revenue, resulting in a projected $9.4 million deficit. Key drivers include $5.8 million in capital equipment (e.g., a $3M hydroelectric generator, $1M vac truck) and a 4% decline in water consumption. Directors discussed the need for cuts, the impact of rate increases on usage, and requested further breakdowns of personnel and capital.

Key Outcomes

• Item 1A passed 5-2.
• Item 1B died without a motion.
• Items 2, 3, 4, 5, 6 (consent decree easements and partial payment) all approved unanimously (7-0).
• Consent agenda items 7B, 7C, 7E, 7F, 7G approved as a block (7-0 except 7B 6-1).
• Item 7D approved 7-0.
• Item 7A tabled to a future study session.
• Appointments to Central Business Improvement District: Trent Goins, Bill Hanna, and Eric Hartness approved.
• Special study session concluded with no votes; staff will provide additional information on capital and personnel for future budget discussions.