Fort Smith Board of Directors Regular Meeting - October 14, 2025

[Introductory paragraph summarizing the overall meeting.] The Fort Smith Board of Directors met on October 14, 2025, at 6:00 p.m. The meeting covered the 2026 proposed operating budget presentation, annexation of approximately 45 acres in the Highway 271/Texas Road area, multiple rezoning requests, a staff augmentation agreement, annual millage levies, emergency sewer repair contracts, street project completions, and a consent agenda. All votes were unanimous except the staff augmentation item (6-1). Public comment focused on support for selling city-owned excess properties.

Consent Calendar

• 13A: Resolution authorizing listing of three city-owned properties for sale (7700 Texas Road, $45,000; 4401 Massard Road, $2,000,000; 1400 Riverfront Drive, $70,000) with Ghan & Cooper Commercial Properties, LLC.
• 13B: Resolution authorizing application to Arkansas Division of Emergency Management for FY2026 Hazard Mitigation Grant for ACME Brick Stormwater Mitigation project ($400,000 total, $100,000 local match).
• 13C: Resolution authorizing application for Riverbank Stabilization project ($400,000 total, $100,000 local match).
• 13D: Resolution authorizing application for Mill Creek Bank Stabilization project ($400,000 total, $100,000 local match).
• 13E: Resolution authorizing acceptance of FEMA Assistance to Firefighters Grant ($691,636.36 federal, $69,163.64 local match) for 73 SCBA units and 150 face pieces.
• 13F: Resolution accepting completion and authorizing final payment of $345,050.00 to Entegrity Energy Partners, LLC for LED sports lighting retrofit at Kelley Ballfields.
• All consent items were approved unanimously (5-0, with Directors Rego and Settle absent for this vote).

Public Comments & Testimony

• Crystal Cadelli: Expressed support for the sale of unused city-owned properties (Item 13A), stating it would help address the $10 million deficit and that citizens cannot bear additional taxes or utility increases. She also criticized Director Rego's earlier comments about questioning city spending, urging more scrutiny of finances.
• No other public comments were made on any agenda item.

Discussion Items

• Item 1: 2026 Proposed Operating Budget Presentation – Chief Financial Officer Andy Richards presented the budget document, noting that capital outlay is now included. He expressed low confidence in achieving a balanced budget, citing inflation and health insurance costs. Director Christina Catsavis requested a balanced budget. Discussion included vacancy savings (estimated $3.8 million citywide, $440,000 in general fund) and a lobbyist contract ($150,000 per year) questioned by Director George Catsavis. The budget hearing is set for November 14, 2025.
• Items 2A-2F: Annexation and Rezoning of Highway 271/Texas Road Area – Deputy City Administrator Maggie Rice explained the annexation of a 45-acre enclave (20 parcels, 9 residential, 11 non-residential) under state law. A public hearing on August 19 had no opposition. The six related ordinances (2A: annexation; 2B-2F: master land use plan amendments and rezoning) were each approved unanimously (7-0) with suspension of rules. Conditions were applied to some rezoning (e.g., fencing, screening, no vehicular access from Texas Road).
• Item 3: Rezoning at 6001 Prairie Drive – Ordinance to amend land use from General Commercial to Office, Research, and Light Industrial and rezone from Commercial Heavy (C-5) to Industrial Light (I-1) for a 2.2-acre site. Approved 7-0, with emergency clause.
• Item 4: Rezoning at 6210-6234 Massard Road – Ordinance to rezone 2.99 acres from Commercial Moderate Special (C-3 SPL) to Planned Zoning District (PZD) to allow reduced lot standards. Approved 7-0, with emergency clause.
• Item 5: Rezoning at 6000, 6100, 6120 Prairie Drive – Ordinance to rezone 6.27 acres from C-5 to I-1 for a 35,252 sq. ft. wholesale trade establishment. Approved 7-0, with emergency clause.
• Item 6: Staff Augmentation Agreement with Burns & McDonnell – Tabled from September 16, revised to a 3-month term (not to exceed $155,121.80). Interim Deputy Director of Engineering for Streets and Drainage to be provided. Director George Catsavis voted no; others voted yes (6-1). The agreement requires a 5-day notice for termination.
• Items 7A-7D: Annual Millage Ordinances – City Clerk Sherri Gard presented the levies of 8 mills total (5 general, 1 library, 1 fire pension, 1 police pension) for 2025, collectible in 2026. No rate changes. Approved as a batch 7-0.
• Items 8 & 9: Emergency Sanitary Sewer Repairs – Deputy Director Jimmie Johnson explained a collapsed sewer line near Cherokee Circle and Leigh Avenue. Original trenchless repair by Vortex Services encountered issues; Vortex completed two point repairs for $130,000. Krapff-Reynolds Construction Company then replaced the line for $304,762. Both ordinances were approved.
• Items 10 & 11: 2023 Street Overlays Phase D – Interim Director Ben Marts requested a 49-day time extension (40 days weather, 9 days extra work) and final payment of $326,520.45 to Forsgren, Inc. Approved.
• Item 12: 2023 Street Overlays Phase A – Final payment of $480,443.05 to Forsgren, Inc. for work on Phoenix Avenue. Approved.
• Officials Forum: Mayor McGill announced the Mayor's Youth Advisory Council and a visit from the Finland ambassador. Director Martin requested an update from Fort Smith Animal Haven and gave an update on the Baker Tilly utilities risk assessment (survey response rate ~25%). Director George Catsavis asked about lobbyist return and water park slide bids. Director Good thanked NAACP youth attendees. Upcoming events noted: Caroline Cross Park ribbon cutting (Oct 17), next meeting Oct 21, study session Oct 28.

Key Outcomes

• Annexation approved: 45 acres in Highway 271/Texas Road area annexed into Ward 3 (Ordinance 2A, 7-0).
• Rezonings approved: All five companion ordinances (2B-2F) and items 3, 4, 5 were approved unanimously (7-0) with conditions where applicable.
• Staff augmentation contract approved: Three-month agreement with Burns & McDonnell for $155,121.80 (6-1).
• Millage rates maintained: 8 mills total for 2025 (7-0).
• Emergency sewer repairs approved: $130,000 to Vortex Services and $304,762 to Krapff-Reynolds Construction Company.
• Street project completions accepted: Phase D final payment $326,520.45 and Phase A final payment $480,443.05.
• Consent agenda approved: Including property listings, three hazard mitigation grant applications, AFG grant acceptance, and LED lighting final payment.
• Water park slide bids: Set to open on Friday, October 17, 2025.
• Next steps: Budget hearing scheduled for November 14, 2025; further discussion on Animal Haven and utility risk assessment to continue.