Fort Smith Board of Directors Study Session - February 24, 2026

The Fort Smith Board of Directors held a study session on February 24, 2026, to discuss several key issues including a proposed consent decree modification, reinstatement of mosquito fogging, fiscal performance policies, audit provisions for third-party contracts, water conservation enforcement, and a standardized wholesale water agreement. The board also made motions to place items on future agendas and directed staff to investigate various matters.

Discussion Items

Consent Decree Modification

• The board reviewed a proposed modification to the federal consent decree on wastewater. Special counsel Paul Calamita (Aqua Law) explained the modification would extend the compliance deadline by 11.5 years (to 2038) and improve the dispute resolution process by adding a "shot clock" for federal agencies. The modification also removes the previous requirement that sewer rates reach 2.5% of median household income before seeking an extension.
• Director Christina Katsavos expressed concerns about new language stating the city's failure to provide adequate funding is not a defense for noncompliance, and about the 3.5% annual rate increase baseline not being a cap. She questioned whether the city was getting the best deal given a changing regulatory climate.
• Director Neil Martin asked about stipulated penalties; Mr. Calamita noted the city has paid penalties for a subset of overflows but no penalties for being late, and the modification allows a clearer path to challenge penalties before Judge Holmes.
• Directors Rigo, Camp, and Good expressed support, citing the need for additional time and improved flexibility. Director Camp emphasized the importance of the new dispute resolution mechanism.
• Director Katsavos also raised questions about potential changes to the Clean Water Act and the Waters of the United States rule, and about the possibility of congressional directed spending affecting the timeline.
• The board moved to place the consent decree modification on the next regular meeting agenda for a vote. The motion was seconded and carried.

Mosquito Fogging Operations

• The board discussed reinstating the city's mosquito fogging program, discontinued in 2025 due to budget cuts. Director Rigo noted strong public support for the program, citing 372 requests for spraying versus 36 requests to stop since 2019.
• Director Good expressed support for bringing back the program, noting that the department could maintain a balanced budget. Director Settle suggested a later start time (10 p.m.) and a published schedule to allow residents to prepare.
• Director Neil Martin opposed the program due to lack of data on effectiveness and potential harm to non-target insects. He noted that mosquito-borne illness data is limited and that the program was cut without data on its benefits.
• Matt Meeker, Director of Public Works, noted that the city has leftover chemicals and can reinstate the program without additional budget impact. He also discussed challenges with opt-out requests and driver compliance.
• The board voted to place the mosquito fogging item on the March 17 voting meeting agenda for consideration. The motion was seconded and carried.

Fiscal Performance Policies

• Chief Financial Officer Andy Richards presented historical fund balance data for the general fund, street maintenance fund, water and sewer fund, and solid waste fund, adjusted for inflation. He showed trends from 2010 to 2025.
• Director Settle proposed adding an upper cap to the city's reserve policies, arguing that excessive fund balances mean taxpayers are overpaying. He suggested a rolling two-year threshold above 50-60% should trigger spending or tax cuts. He also proposed rebates or rate reductions for water/sewer funds.
• Directors Rigo and Camp supported the idea of adding a ceiling. The board directed staff to bring back options for amending the fiscal policies to include upper limits.

Audit Provisions for Third-Party Contracts

• Director Settle requested that the city conduct audits of the convention center operator, similar to the recent audit of the water park. He noted the city provides $750,000 annually to the convention center and that the contract includes audit provisions.
• City Attorney Jeff Dingman confirmed the contract requires annual certified audits but will verify what has been received. The board directed staff to investigate the cost and scope of an agreed-upon procedures audit for the convention center and to bring it back for consideration.

Water Conservation Measures

• Director Neil Martin raised concerns about enforcement of the city's water conservation ordinance, noting that no citations have ever been issued under Section 25-142 despite widespread violations during last summer's conservation period.
• Lance McAvoy, Director of Water Resources, explained that the ordinance requires a court citation, and no city department has the capacity to enforce it. He noted that the biggest water users during peak demand were irrigation systems, not car washes.
• Director Settle proposed using technology to throttle water meters for outside wholesale customers and for repeat violators, rather than relying on fines. Director Rigo emphasized communication and community engagement as a first step.
• The board discussed potential incentives and flow restriction devices. No formal action was taken, but staff was asked to research enforcement options used by other cities.

Standardized Wholesale Water Agreement

• Staff presented a draft standardized non-retail wholesale surplus water agreement to replace multiple expired contracts with outside water customers. The seven current agreements range from 1959 to 2019, and none have been updated.
• Director Camp expressed frustration that seven agreements had expired without action, calling it unacceptable. He supported the standardization.
• Director Settle asked about capital cost sharing for shared infrastructure (e.g., treatment plants, transmission lines). Mr. McAvoy confirmed the agreement includes provisions for restricting usage during high demand and a tiered surcharge for high unaccounted-for water. The board discussed adding language to require sharing of capital costs for system upgrades.
• The board generally supported the draft but asked for further refinement to include capital cost sharing and flow restriction provisions.

Key Outcomes

• Consent Decree Modification: Board voted to place the modification on the next regular meeting agenda for a final vote.
• Mosquito Fogging: Board voted to place reinstatement on the March 17 voting meeting agenda.
• Fiscal Policies: Staff directed to bring back options for adding an upper cap to reserve fund policies.
• Audit Provisions: Staff directed to investigate audit of the convention center operator and report back.
• Water Conservation: No formal action; staff to research enforcement options.
• Wholesale Water Agreement: Staff to revise the draft to include capital cost sharing and flow restriction provisions before final adoption.
• City Administrator Recruitment: Director Martin made a motion to place a contract with Colin Benzinger for national recruitment on the consent agenda for the next regular meeting. The motion was seconded.
• Other: Director Rigo requested pricing for solar-paneled flashing crosswalk signs on B Street and a replacement flag at Sister Park. Staff to follow up.