On this March the third year 2026.

As always, thank you for being here.

And these meetings are being uh televised live for the benefit of our residents who cannot be with us in person.

Director Neil Martin, since you're standing, why don't you leave us an invocation and uh direct settled in the pledge?

Pray with me, Father.

We are so delighted to be here tonight.

Thank you for the opportunity to do the business of the government of Fort Smith.

Father, I pray that you watch over us tonight.

Lord, guide us as we make decisions that affect our great city.

Lord, I pray that you would impart wisdom on us, that we would be in the right frame of mind to make the make decisions that uh draw us forward.

So, Father, I pray that you be with all those that are here tonight that will be speaking, give them wisdom as well.

Lord, I pray that uh all that we do we are unified, we are together.

And Lord, I pray that you would just watch over all of our actions and all of our words.

Lord, I pray that it's pleasing to you.

And Lord, we ask all these things in your precious and holy name.

Amen.

I'm glad that we have the United States.

Thank you very much.

Madam Clerk, please call the roll.

Directors Rego here.

Good.

Camp.

Here.

George Kitzavis?

Here.

Christina Kitzavis.

Settled.

Here.

Martin.

Here.

Okay.

Thank you very much.

This time I'll ask if there's any presentation for our board member or director on any item of business not already on the agenda.

Okay.

Seeing none.

We'll ask for the approval of the minutes from February 17th.

So moved.

Second.

Thank you.

All in favor?

Aye.

Thank you very much.

As in housekeeping, a reminder, a motion is second to adopt each of the following items must be offered before director's comments are made.

And public comments on items must be must pertain to the pre presented item.

Thank you.

This time we're going to go to the first item on the agenda.

Thank you, Mayor.

The first item tonight is a resolution approving and authorizing execution of an agreement and order of modification to consent decree.

This item was reviewed at the February 24th study session and moved forward for consideration this evening.

The agreement and order is a negotiated agreement to modify the consent decree that recognizes the city's effort to facilitate a financial plan to fund the capital projects required to comply with the consent decree along with the city's specific actions in 2025 to incrementally adjust sewer rates through 2030 and secure voter approval to reallocate existing local sales taxes and issue up to 385 million dollars of sales and use tax bonds to fund wastewater system improvements.

Following that approval, the City the City issued the first 100 million dollars of those bonds and has already authorized more than 50 million in construction contracts for remediation projects.

As a direct result of these efforts, the Department of Justice and the EPA have agreed to this modification order that provides the city with an additional 11 and a half years through June 30th, 2038 to achieve compliance, among other modifications that facilitate fair application of the consent decree to the city.

The city's attorney Paul Calamita is with us this evening.

And at this point, I'd like to turn it this item to Mr.

Calamita for further comments and respond to questions from the board.

Paul, thanks for being here this evening.

You're recognized.

Nope.

Okay, there we go.

So sorry, it looked like I was mute.

Uh good evening, Mr.

Mayor.

It is um uh member members of the board.

Uh it's a privilege to be with you tonight.

Uh it's a historic uh moment for the city and particularly the utilities department, all the people who have worked so hard over the years to uh to make uh your your essential water and sewer services uh uh efficient and uh uh affordable and reliable uh for the city.

We uh before you tonight you have a uh proposed modification to your consent decree.

Uh it would almost double the time period that you would have to implement the controls from twelve years.

We would add another 11 and a half years to that.

It would give you additional uh technical flexibility to prioritize the work that'll deliver priority benefits uh to the citizens in terms of uh more reliable service, reducing uh sanitary sewer overflows uh at the earliest excuse me at the earliest stage possible.

Uh it also will give you most importantly uh a fresh start, a complete reset uh of the program uh as soon as this uh modification is entered by Judge Folks, you will uh be right back into compliance, hopefully durable compliance for many, many years uh because I know that's that's the way the city operates.

You want to have world-class water and sewer uh services to to uh support the citizens you have in future growth uh that's on the horizon for you folks.

And so that'll that will get you back to full compliance.

Hopefully, never to look back and completely change the relationship with the Federal and State agencies.

Um I see absolutely no downside.

I see only upside to the city um authorizing your administrator, Mr.

Dingman to execute the uh consent decree modification before you.

Once that is done, the document will then go through the state's process for the Attorney General to approve uh and the State ADEQ to sign as well, and then it will be turned over to EPA, and then lastly to uh U.S.

Department of Justice.

Both EPA and U.S.

DOJ have both their Region 6 office and their headquarters that has to review and sign.

Uh I believe those uh Bolson leadership in the agencies have been briefed at appropriate levels.

I anticipate no substantive problems, but sometimes particularly the Department of Justice, uh, it can take uh a period of time.

I'm hoping that won't be the case, that it will be a matter of weeks rather than months.

But um and I don't expect again any substantive changes through that process.

Uh we're dealing with experienced case teams at both EPA and DOJ.

So I strongly recommend that you authorize Administrator Dingman to sign the modification.

Happy to answer any questions there may be.

Okay.

Thank you for being with us this evening.

Um Madam Clerk, are there any citizens' comments?

Uh yes, we do have two.

The first being Lavon Morton.

Lavon, you recognize.

Thank you on Leon Morton.

Uh, check your microphone, would you please?

What?

Now we're on your microphone.

You're ready.

Go ahead.

I'm on.

Okay.

Uh Lavon Morton, uh, I live in Fort Smith.

I want to speak in favor of this modification.

I actually went back and reviewed the version that the city submitted, the counterproposal in 2024, and compared it with all the provisions that are in what we received uh in the modification.

The original version from the government, not what we submitted.

We m we marked this out, had a 19 percent rate increase in 2031 and a 19 percent rate increase in 32, and it went down to uh to 15 percent and then 11 percent in 2036.

So uh the current version only says that our obligation is to obtain additional financing as needed beginning in twenty thirty-one from whatever source is available.

That can be debt or grants or uh revenues from the system.

There's no obligation to raise rates past 2030.

Um as we raise uh uh funds from some other source.

And I will say that there's been some question raised about whether there was enough money uh to continue all the way to the estimated $600 million.

The financial plan that the city developed, and I worked on this in 2024, contemplated that in 2031, we would call some 2018 bonds and reissue a much larger bond issue over it will be will be payable over 30 years, and I would point out that we have bonds that will be fully matured and paid off in 2032 and 2035, and that would only leave uh the uh sales tax bonds and these revenue bonds that we hope to issue in 2031, uh so there would be plenty of debt capacity.

So the stage is set to carry this all the way through to the end and generate 600 million or whatever it takes to finish the consent decree.

So I am in favor of this uh proposal.

Thank you.

Thank you, Levon.

Next we have Crystal Cadelli.

Good evening.

Um, it's clear that this board and the administration has not maintained focus on this consent decree.

As a result, we have weakened our position and strained our relationship with the EPA and the DOJ.

Today we have no leverage.

We are left with little choice but to accept this new agreement.

This financial reality is serious.

The proposed sales tax reallocation will not cover the total cost of the remaining work.

Even if we assume no additional inflation, added penalties, and no increased bond interest, we are still facing at least a $300 million shortfall.

As Mr.

Morton states that we have bonds that are going to mature and we're going to call, we we need a plan.

We need to see that.

We need to know the reality of the funds that are going to be available.

You know, the people of the city have faced a 17 and a half percent sewer rate increase over the last five over the next five years.

Um that comes on the hills of a very significant water rate increase.

The our residents have asked to carry a heavy burden, and this board just keeps asking for more.

Last week, Mr.

Saddle said we had a savings problem.

I don't see it.

We have a spending problem.

We spend our funds on necessities.

Um, and we're gonna have to be serious about change.

We are gonna have to look at potentially reallocating the parks tax or raise additional sewer tax, and we need to be honest.

We need to be honest about that with ourselves, with the residents, with the administration.

Okay.

Thank you.

That's all.

Thank you.

Madam Clerk, are there any others?

No, that's it.

Okay, thank you.

At this time, we'll entertain a motion to adopt the resolution.

So second, thank you.

This time we will have any comments from the board.

Director Neil Martin, you're recognized.

So I want to ask um administrator Dingman the question I asked him privately yesterday in front of everybody.

So we we had to put together a financial management plan to move forward with this.

Um if we sign this, we have to uh officially put forward a financial management plan.

Is there anything in there?

Just given what um Mr.

Morton said about funding it how we see fit and and rates.

Um I'm talking about rates.

Is there anything in our financial management plan that says we have to raise rates?

Is there anything we're submitting to the EPA and the DOJ that says we have to raise or we will raise water rate or sewer rates by any certain percentage after 2031?

No, sir.

Nothing.

No, sir.

The only thing we're obligated to do is the essentially raise sewer rates through 2030, which we've already done by ordinance.

Which that was a part of our negotiating strategy to get to this point, which the reallocation of the sales tax was part of the negotiating strategy to to get to this point.

Yes.

Um those are the things that we put forth that to show we had a um we were serious about tackling our our issue.

Um that's the one question I had.

Um and uh I'll yield the rest of my time to uh we'll go director George the Savage.

Okay.

Thank you, Mayor.

Uh thank you, uh Mr.

Calamina.

Thank you for being here tonight remote, uh logging in and speaking to this matter, and I really appreciate you and the hard work you and others have put forth to do this.

Uh what I like about this is the goal of durable compliance.

Uh I am hopeful that after doing this for a year or two, that the EPA and DOJ will be willing to turn this back as the Trump administration has talked about to states to handle this so that we could have even communications with uh Arkansas, the state government versus communicating up to a more bureaucratic structure.

I definitely love the more time that we're getting here.

I like the shot clock that has been created that the government has to uh different differing timelines depending on what's needing to be disputed and the the priority benefits for the work to be completed here.

Um the rates have been voted on.

I mean, we we got a copy of the sewer changes in bills from 2026 that we're projecting all the way to 2038.

Um 5 CCF user at $50.07, and 2030 is paying $57.49s.

I mean, we're just staying with inflation at that point.

Um, you know, things are gonna cost more.

Uh continue to take my family out to eat, and I'm so surprised that fast food is no longer cheap.

And uh things are going to go up.

But as we look at this as it stands, the voters have passed this with the adjustment of the sales use tax.

I think they are expecting that we would take this and understand that uh we are not in a favorable position.

I don't think anyone's excited about all this, but it's it's work that needs to be completed.

It's upgrades that need to be made, and so I'm happy to vote for this.

Thank you, Mayor.

Okay, director George Gassavits.

Hey, Paul, hang on just a second, okay.

Lance telling me I've got a concern.

How long have we been under the I don't know if we've been under the consent decree?

Um roughly 11 years and two months.

And how much have we actually spent on the consent decree?

I don't have that number in front of me.

Um I'm sorry, I just didn't come prepared with that number.

Um 130.

Yeah, it's gonna be around the 130.

But that didn't include the 200 million that happened from 2000.

Right.

That was when we weren't officially under a consent decree.

Correct.

So a lot of that went into the assessment and some went into construction.

We're now in the pretty much pure construction.

What percentage of the consent decree have we completed in 11 years?

Um we are sitting at construction wise um, I believe, and this is 24 numbers because we're still working on the 25.

I think it was about 40 percent of the manholes and about 30 percent of the line work.

I I actually have that on the website as a and that's and that's in terms of actual construction too.

But there's other parts of the consent decree that we are I mean, we've we've completed 100 percent of the assessment for the city's sewer system.

We've we've completed uh much of the capacity maintenance and operations improvements that we needed to do.

So there, I mean, aside from the actual construction that's still left to do, there's a considerable construction that's left to do.

That represents the 600 million dollars that we've identified in our CIP, but they're but we have made significant strides to compliance.

See, my concern is Paul Listen if we if we're not gonna in 11 and a half years, if we're not done, then what happens?

Would you go back to the negotiating table?

Yeah, and I'm I'm hoping go ahead, Paul.

Paul, go ahead.

You will go ahead then.

I I was gonna say absolutely.

Uh uh, by the way, uh I don't think we're not in a great negotiating position.

The city has paddled as fast as it possibly could paddle.

It just ran into unexpected costs, COVID floods, there were a number of force majeure events.

Uh so I think we've been in a strong uh negotiating position, which is why we've almost doubled the amount of time uh and plus gotten additional flexibility.

They wouldn't have given it that to us if they had to drag us along.

But if if we're not able for whatever reason to complete the work in the 11 and a half years, we would go back to the agencies and and make our case that we needed additional time.

Hopefully, this time from a position of compliance rather than non-compliance, the error here was the original 12 years was agreed to without really understanding what the body of work was.

Right.

And so, you know, we set ourselves up to fail.

This modification gives us a very fair chance to be successful.

Okay.

Um, I mean, we have to vote for it.

I mean, I don't see you know I just I want to just be 11 years from now, I just want to be sure that we're that you know people can afford to even have water and serve.

So, to that point, one thing uh I'll point out is up until Paul and Jeff can correct me if I'm wrong, up until this last document from EPA that we received, all the plans that were put forth were based on a hopeful 10-year because at that time EPA and DOJ was only talking eight, and we were asking for anything we could get.

And he said, Would you settle for 10?

They said, let us consider that.

And the next thing you know, they're coming back with our talks with the state and with them and their technical team of 11 and a half years.

So the financial plan, the CIP that was presented to them was originally based on an 11-year or in a 10-year plan.

So we're actually getting some extra breathing space with 11 and a half years.

Okay.

And this con Paul, this contract's bonding, even in a under a new administration, two years, three years.

Yeah, this is both a civil contract with the state and the federal government, but it's also Judge Falk's will enter it, so it is an order of the court, and he will expect you to comply with what you have agreed to.

Right.

Conversely, he will want to give the state and federal government the benefit of their bargain.

So however, if we get into force majeure circumstances, the consent decree allows us to raise those, and I expect the agencies would be reasonable under any administration.

Is that not negotiable?

That is absolutely negotiable.

I see no scenario where we are paying uh $15 million $15 million in fines.

I think the agencies recognize that you have paddled as fast as you can to implement this project.

You raised rates massively at the outset.

You have done sales and use tax, and my expectation is that if there is a penalty, that it will reflect your excellent efforts, uh, particularly now front loading most of the program, which is one of the major uh requirements of the agencies.

I would hope and expect that they would be very modest.

And quite frankly, there's some hope that the stipulator penalty will go away, but you can't count on that.

Okay, thank you, Paul.

Thanks, Lance.

Okay.

Director uh good.

I think you're nation in the queue.

Thank you, Mayor.

Um, a couple of comments.

Um first of all, thank you, Mr.

Kalameda for being with us again this evening.

Um I want to speak real quick about uh the relationships like I did last week.

Um it was mentioned that our relationships with uh DOJ and the EPA are strained.

Uh they are better.

It was a question I asked Mr.

Calamita last week, and they are better because of the efforts put forth by the board staff, uh what our citizens have agreed to do to work towards getting a resolution to be in a compliance with our consent decree.

Uh so thank you.

I want to thank our congressional delegation uh that's been a part of it, Jay Richardson, State Representative Jay Richard Richardson was in the um meeting last week in attendance, so we'll thank him for his participation in this as well.

Um, and I also want to say this when I said it last week.

Um the city is in our current position due to the tireless work of staff, our congressional congressional delegation, uh Mr.

Calamita, his team, uh our city administration, this board, our citizens.

But I really want to give uh recognition to Mr.

Lance McAvoy for his work.

Uh it's been proven invaluable.

And the e email that we've gotten from Mr.

Calamita, he spoke to that several times.

So, Lance, your work and your knowledge of this whole situation has been proven invaluable.

So thank you so much for what you've done.

Thank you, Director Good.

Director Settle.

Thank you, Mayor.

Uh, to the citizens that uh voted on the sales tax, allow us to do what we're doing.

Thank you very much to the to the staff to the board.

Thank you for doing what you're doing.

Just remember, this started in 1982 with an administrative order.

I was as I said before, I was elementary school.

And today we're taking care, finally taking care of the problem again and and resolving it.

Uh Paul's smiling because it's taken that long.

Uh, this started in 2015.

Uh I didn't vote for it, but I'm going to vote for this tonight because it's a good modification.

The three and a half percent was something that I sit here with the napkin next to Neil and we worked out, and the voters said, hey, we'll pass the sales tax and only raise rates 3.5 percent.

The the the worst case is what director more former director morton talked about, which is 20 percent, 17 percent some of those rates that were there.

And so the DOJ has seen what we've done, the voters have approved it.

We've we bonded money, we've got three and a half percent for the next four years, and then after that it's up to the board and and how to fund that.

And I think as we process the next four years into that, we'll come up with good decisions together with the public's input and come up with what's best for the future.

But everything says this is a good agreement, we should vote on it together.

Um, and then it gives us leverage.

Uh, it's what Paul says.

It does allow us future leverage if Force Missouri happens.

You know, who would ever thought we'd have a flood and a COVID back to back cause of what we did?

Um so Paul and the team, thank you very much, Director Morton.

Thank you very much for doing what you did on the board.

Uh, and thanks to this board for everything you're doing.

But ultimately to the citizens to saying, hey, we're gonna take care of our sewer problems, let's get it resolved because I think we're gonna be ahead of some curves.

Let's get it resolved because I think we're gonna be ahead of some curves.

Other cities are starting to see uh that are starting to see growing pains that we're already starting to take it ahead of the curve for a curve for.

So thank you very much to the team.

Thank you.

Thank you.

Um there any more comments from the board.

Okay.

Um I'll make a comment.

This has been a long time coming.

And we began to move uh the ball toward the goalposts when we began to practice good leadership with EPA and Justice Department.

We began to have meaningful conversations rather than being combative.

We decided to listen to one another, communicate with one another, and then uh come together to find out what would be the best solution that would be meaningful for all people involved.

And now we're at that point, we're gonna get a chance to cooperate to make sure that things are gonna be done the way we've said, and it's but again, it's been a long time coming.

And on behalf of all of us up here, we thank the citizens of Fort Smith for trusting us with with the bond issues.

Uh we thank all of those who put their heart and soul into communicating and drafting the information that's necessary uh to put us at this point again.

And this is going to put us in a great place to get this from over our head.

So again, this board is committed to protecting this community and and its public safety and safeguarding the our waterways and committed to doing all those things.

So uh we'll continue to work in good faith and with our federal partners to ensure progress, accountability, and long-term environmental stewardship.

We will get this work done uh for the citizens, not only enforce mid, but for all of those who count on us for safe, clean water.

Okay.

Thank you.

Are there any other comments?

Madam Clerk, if you would please call the roll.

Directors Rico.

Yes.

Good?

Yes.

Kemp?

Yes.

George Get Savis.

Yes.

Settled?

Yes.

Martin.

Yes.

It's approved.

Six in favor and zero opposed.

Thank you very much.

Let's go to the second item.

Thank you, Paul.

Thank you, Paul.

So the second item tonight is an ordinance rezoning property at 5300 Heather Ridge Street to Plan Zoning District.

Deputy City Administrator Maggie Rice will address this item.

Yes, thank you.

On February 10th, the planning commission held a public hearing to consider the subject master land use plan amendment and rezoning applications.

The property containing almost 17 acres is located south of Gary Street, west of Heather Ridge Street, and located on Horizon Line Drive.

The proposed master land use amendment to mixed use residential and zoning to a planned zoning district allows for a PZD containing two character areas known as character area A, which is approximately three acres, and character area B, which is approximately 14 acres.

Character Area A allows for mixed use residential and commercial development located interior to the site and includes uses such as a restaurant, salon, laundry cleaner, drop-off station, fitness studio, professional offices, and other uses listed within the land use chart.

Character Area B has the same land uses as the existing PZD.

A neighborhood meeting was held on January 29th.

There were severing seven neighboring property owners in attendance.

Neighbors expressed concerns about increased traffic, land use, noise, and potential tenants.

At the planning commission meeting, Jackson Goodwin was present to represent these applications.

Mr.

Darrell Cunningham, Mr.

Ted Johnson, Mr.

Wayne Gosnell, Mr.

David Bourne, and Mr.

Hank Gilleski were present with concerns regarding increased traffic, noise from the gas well, density, future zone changes, and placement of stop signs.

The planning commission voted eight in favor with zero opposed to recommend the master land use plan map and zoning map be amended.

Okay, thank you.

Madam Clerk, are there any citizens' comments on this item?

We do have two individuals that are indicate that we will share the five-minute presentation.

Uh the first being Jackson Goodwin.

Mr.

Goodwin, you're recognized.

Good evening, board.

You guys may remember this when it came back several years ago, the original PCD, and then last year it came back, and it just wasn't very specified back then.

That was a different engineering firm at the time that took that through.

But uh all we're requesting this time is just to add no more than 18,000 square foot of commercial space.

And what this is, you know, Mark is Mark Rouse the developer, is trying to make a mixed-use development, very walkable communities doing sidewalks on both sides of the street.

He's trying to get some of the foreign military sales people moving in here.

He's already had some people from Finland move in to the duplexes that were part of phase one.

And you know, he just wants it to be a walkable community, have convenience stores, some light commercial uses that they can walk and go enjoy rather than having to drive up the hill to go get these types of things.

And we've pretty clearly laid out what we want this time around.

I think that was the biggest problem the last time this came through, is it just wasn't very well defined.

And I think Trevor might have a few additional things he wants to say.

Good evening.

Trevor Harris.

Um I represent the developer.

Um like Jackson was kind of saying, um, the whole purpose of this development, um, we're kind of basing it on the foreign military sales program.

Um so, like Jackson said, we have moved in our first four Finland families with another roughly 30 families coming from Finland May 1st and June 1st.

Um we are in talks with as well as Finland, also Singapore and Germany, um, and then also have a meeting with Switzerland in the coming months.

Um like Jackson was saying, we're trying the reason for the mixed-use building is more and more or less for to give these residents some kind of convenience.

Um just with the four finished families that have moved in, they come with one car.

There's anywhere from three to five people in that family.

So they share the car, husband takes the car to the base, wife and kids are left there during the day.

So if they are able to have a coffee shop, a nail salon, a hair salon, a convenience store, not as in a gas station, but go get a loaf of bread or a gallon of milk.

It'll one cut down on traffic back up to Rogers Avenue, um, as well as just give that them the convenience to be able to just go right down the street and pick things up.

Um as far as target tenants for the mixed-use building, we're thinking a smaller cafe, um, a coffee shop, maybe a yoga studio, workout studio, um, business offices, um, so on and so forth.

Um, but like Jackson said, we're just trying to create a walkable community.

We have sidewalks, both sides of the road, sidewalks throughout the development.

Everything's walkable within that community.

Um, like I said, we're just trying to target the foreign pilots that are coming in to the Fort Smith City of Fort Smith.

I know the city backs the whole program very well, and we're just trying to help out in what what we can do.

Okay.

Okay, thank you very much.

Well was that it, Madam Clerk.

That's it.

Okay.

Thank you.

Just time we'll entertain a motion to adopt the ordinance with suspicion of the rules.

So move suspension of the rule.

Second, thank you.

Uh Madam Clerk, please read the ordinance.

In ordinance amending the master land use plan map, rezoning identified property and amending the zoning map, and this is for property located at 5300 Heather Ridge Street.

Okay.

Comment from the board, Director Neil Martin and Director Settle.

Uh, Mr.

Goodwin, could would you mind or is there a way that we could get some of the pictures over here?

I know you guys brought those.

I think that'd be important for us.

Um so I went back and watched our meeting uh last year's or almost about a year ago, and it was coming to us because it was appeal from the planning commission.

Planning commission voted 3-3, so it voted down.

Um and this time, as you notice, the planning commission was unanimous in in their approval.

Um there were there were questions about traffic, there's questions about a gas well.

I talked to Mr.

Goodwin today.

And um, I think them, other engineering firms, the city of Fort Smith have all started to come together to resolve that gas well, the noise associated with that gas well.

So uh, you know, I think that's important for uh for us to know.

So I think a lot of things changed from last year to this year.

I think this is a good development.

Um, seeing what's happening here.

Uh I've driven through there, it's it's it's a neat place, and especially with something close to our close to the base for these pilots to be able to easily get back and forth, and also have something for the families that that are our home uh when the pilot or the the you know the person with for for Finland or whoever is on base, I think is is really good.

So I think this is a a good development.

Uh great infill in in a in a in the central part of town, close to the hangout, the hangouts already there, the hangouts growing, uh the fitness uh fitness place right over there.

So I think this is a good opportunity for the city, and it continues to show growth.

Um when we talked about it last year, there wasn't this many duplexes and townhomes there.

It just continues to grow every time I drive by Phoenix Avenue.

I can look over the highway and I see more of those things pop up.

So this development, I think just adds some uh character to it and uh is a good opportunity for us.

So I'm gonna be voting in favor for this.

Thank you, Mayor.

Uh Jackson, is there still plans to put a pool in this area?

Uh that was I remember that talk about last year.

Is that still in the fate of potential phases of the Yes?

The 3D rendering should show that pool area.

Okay.

And then the last question is uh you said you said something about a uh a Delhi convenience store of bodega.

Are you going to be kind of putting uh items in there that would be tailored towards the communities that were bringing here like F Finland and uh Singapore, you're gonna have some items that tailored to their cuisines and their uh home?

That's a really good question.

That's something I mean developer might have to answer on that.

He shook his head.

Yes, like I said.

Yes, it is our initial thought to get something from their ethnicity.

Good.

Um so that they are able to experience essentially home away from home.

Okay.

And the pool, the pool and that mixed use building is not just available to the people, the pool, yes, and the mixed use building would be available to everybody, everyone in the survey.

Okay.

Thank you very much.

Appreciate it.

Any other questions from the board?

Madam Clerk, please call the roll.

Directors good.

Yes.

Kemp?

Yes.

George Kitsavis.

Settled.

Yes.

Martin?

Yes.

Riga.

Yes.

It's approved.

Six in favor and zero opposed.

Just town would entertain a motion to adopt the emergency clause.

Second.

Thank you.

Please call the roll.

Directors Kemp?

Yes.

George Kit Savis?

Yes.

Settled.

Yes.

Martin.

Yes.

Rego?

Yes.

Good.

Yes.

It's approved.

Six in favor and zero opposed.

Item number three.

Item three is an ordinance rezoning property at 7208 Mahogany Avenue.

Ms.

Rice.

Yes, on February 10th, the planning commission held a public hearing to consider zoning 0.66 acres located on the west side of Mahogany Avenue, south of Tuscany Street.

The proposed zoning to transitional allows the existing structure to be utilized as a consulting services business that specializes in international student documentation services for foreign exchange students.

A neighborhood meeting was held on January 29th.

There were no neighboring property owners in attendance.

At the Planning Commission meeting, Mr.

Jeremy Davies was present to represent the application.

There were none present to speak in favor or opposition.

The planning commission voted eight in favor and zero opposed to recommend the zoning map be amended.

Okay.

Thank you.

Madam Clerk, are there any citizens' comments?

We have Mr.

Jeremy Davies to answer questions.

Okay.

Thank you for being here, Mr.

Davies.

This time we'll entertain a motion to adopt the ordinance with suspension of the rule.

So moved.

Second.

Thank you.

Madam Clerk, please read the ordinance.

An ordinance zoning identified property and amending the zoning map, and this is for property located at 7208 Mahogany Avenue.

Thank you.

Are there any comments from the board?

Seeing none, please call the roll.

Directors George Git Savis.

Yes.

Settled?

Yes.

Martin?

Yes.

Rego?

Yes.

Good.

Yes.

Kemp.

Yes.

It's approved.

Six in favor and zero opposed.

Entertain a motion to adopt the emergency clause.

Second.

Thank you.

Please call the roll.

Director Settled.

Yes.

Martin.

Yes.

Yes.

Rego?

Yes.

Good.

Yes.

Kemp?

Yes.

George Gittsavis.

Motion passes six in favor and zero opposed.

Item number four.

Item four is an ordinance repealing ordinance number five-26 and terminating the contracts with Royal Ridge construction as authorized by that ordinance.

During the officials forum at the February 17th regular meeting, the board directed staff to place this ordinance rescinding ordinance number 5-2-6 on this evening's agenda and simultaneously directed staff to proceed with reissuing the request for bids on the construction project for the water slides at Parrot Island Water Park.

That process is underway and bids are scheduled to be open on March the 5th.

Royal Ridge is in agreement with this ordinance and approval authorizes the mayor to sign the attached memorandum terminating.

I'm sorry, the attached memorandum terminating this previously awarded contract.

With that introduction, I'll stand for questions from the board.

Thank you.

Are there any citizens' comments, Madam Clark?

Yes, we have two individuals, the first being Crystal Cadelli.

Good evening again.

Sorry.

You know, this is yet another embarrassing situation for the city.

And I just want to say since I was mentioned, Mr.

Good, have you had any conversations with the EPA about the consent decree?

Yes, I have.

At the time that I sat in on the conversation with administration.

Okay.

Because I had conversations with the director of the EPA over the water division.

I had conversations with the governor's office policy advisor.

I had conversations with the Arkansas Department of Ag section manager.

And they were not happy with the city of Fort Smith.

They were not happy with how we were focusing on the consent decree.

And the the real reason why we got a new agreement I believe is the shift in political power.

And if that shifts again and we don't have this completed in the timeline then we're going to be in another really bad situation.

And I am hoping that we truly do what we should and focus on taking care of our infrastructure and making it affordable for our citizens.

Thank you.

Next we have Chris Cadelli.

Good evening.

Yeah this this uh boondoggle that came to life from the original four to three vote to approve a water slide addition that we didn't need and clearly can't afford continues to grow from one bad decision on top of another first those responsible for protecting the city fell for a fire sale of sorts involving a multi-million dollar purchase those responsible for performing due diligence point of order I'm going to ask that we keep our conversations and comments on the item which has to do with the contract being terminated with Royal Ridge.

Yeah that's that's what I'm talking about.

Those responsible for performing due diligence instead succumb to a pressure to pressure temptation and emotion resulting in a multi-million dollar purchase based on incomplete information lies and exaggerated estimates to no one's surprise the open bidding process brought to light a construction estimate significantly higher than the number sold to the board and budgeted so no contract was awarded so as not to be outdone by the initial blunders director Kemp begins working directly with the contractor to come up with an installation cost low enough to entice the board to award a no bid contract so we had a normal bid process with no contract awarded then a non-competitive bid process with the contract awarded and now correctly being repealed under threat of litigation as a concerned citizen it begs the question as to how the same folks who so badly performed on this project can be trusted to handle the billions of dollars that's going to be required to handle our water and sewer infrastructure projects that we'll in the coming years.

Okay thank you thank you that's all okay thank you okay at this time we entertain a motion to adopt the ordinance so moved second thank you board comments seeing none please call the role directors Martin Yes.

Rico?

Yes good yes Kemp yes George Good Savis settled yes it's approved six in favor and zero opposed thank you very much we'll go to item number five item five is an ordinance authorizing the appropriation of insurance proceeds for various city departments and amending the 2026 operating budget chief financial officer Andy Richards will address this item Mr.

Richards item five we're asking the board to appropriate funds that were received through insurance proceeds we've had a list of various claims from various departments that we bundled together and and brought to the board for appropriation some of these funds the proceeds were actually received and recognized in the 2025 so they're part of actual fund balance at the beginning of the year so we're asking the board to appropriate a part of the fund balance and then also budget adjustment for insurance proceeds that we received after year in that will offset the uh the appropriation for making the repairs to the various buildings and vehicles okay thank you very much are there any citizens' comments madam clerk none indicating we need a motion to adopt the ordinance thank you any comments from the board please call the roll directors Rego yes good yes Kemp yes George Good Savis settled yes Martin yes approved six in favor and zero opposed we've arrived at the consent of

Okay.

Thank you very much.

Oh, then citizens' comments, Madam Clerk.

None indicating.

We need a motion to adopt the ordinance.

So moved to second.

Thank you.

Any comments from the board?

Please call the roll.

Directors Rego.

Yes.

Good.

Yes.

Kemp.

Yes.

George Get Savis.

Settled.

Yes.

Martin.

Yes.

It's approved.

Six in favor and zero opposed.

We've arrived at the consent agenda.

Mr.

Demon.

Thank you.

There are 10 items on tonight's consent agenda, including a resolution authorizing application to FY 2027 community project funding program.

A resolution authorizing an agreement for city administrator recruitment services.

A resolution authorizing an agreement for air service compliance services at the landfill, a resolution approving purchase of a fair collection and trip planning system for the transit department.

A resolution approving agreement with Fort Smith EMS for emergency medical dispatch services for the River Valley Communications Center.

A resolution approving purchase of emergency mass notification software for the River Valley Community Communications Center, and then three separate resolutions approving a purchase of total of seven vehicles for the police department as outlined in the police department's 2026 CIP for equipment replacement utilizing police sales tax funds.

Okay.

Thank you very much for that.

Madam Clerk, are there any residents signed up to speak on any of these items?

Yes, item 6A.

We have two uh residents, the first being Crystal Cadelli.

Which item?

I'm sorry, 6A.

6A, okay, thank you.

You're recognized.

I wish you could call someone else first.

I am very encouraged to hear about uh the opportunity to secure funding from congressional entities for our water meters.

I think that this, if we can secure this, this is going to make a huge difference for our residents.

Um of course, updating uh the meters that are important because accurate meters um have accurate readings which cause accurate bills.

And um I think that that's gonna help our citizens to feel secure that the water bills that they're receiving are in fact correct.

Um, you know, I would like to see more of this.

I would like to see more um grant opportunities.

I know Mr.

Hoover was hired specifically to you know to pursue grants.

Um I know the infrastructure grants are very hard to secure, they're very complicated, they're very usually you know, um complex and um you know that they usually don't give as much funding as what we would need to complete a project.

However, parks and beautification grants are um out there um from private and public entities.

Um I would like to see us shift some of our funds from parts uh to the consent decree and um go after these parks and beautification grants to help compensate the shift.

Um I think that we should have a tracker on how many grants we've applied for, how many we've won.

I think transparency is important that we know that our money is being used wisely to have someone in this role.

Uh thank you very much.

Thank you.

And last we have Chris Cadelli.

Thanks again.

Uh yeah, I definitely support this resolution.

It was really exciting to see this.

I hope it's successful.

Uh I just, you know, in the meantime, I would just ask that you uh customers that don't have functioning water meters that they get the same consideration that Parrot Island got and that they get a 40 dollar a month bill until they get a working meter.

Thank you.

Okay, that's all.

Thank you very much.

This time um was there any other item on on the consent agenda that we pull just the one?

Okay, thank you.

Just time entertain a motion to adopt a consent agenda to include acknowledgement uh of a revised agenda regarding number six B.

So moved.

Second.

Okay.

Any board comments on any of the item?

Director Kemp.

Mayor, I'd like to make a comments on A and B and then add some questions on F.

Okay.

You may proceed.

Thank you, Mayor.

Regarding consent agenda A, I definitely want to thank Congressman Womack and his office, our congressional leaders, for continuing to support the River Valley, and I am hopeful of a positive reception of this application.

Is there a timeline of how that is issued out in fiscal 27?

It is all dependent on how urgent Congress wants to work.

So with any funds that are fit in for appropriations and earmarks, those let me I'll just walk through the process really quick.

First of all, a community like ours uh submits an application to either their representative or um their Senate member and then or one of the two Senate members, and then uh that goes into the uh the preparations process and the subcommittee process, and then it has to get through that, and then that has to get passed uh in in that uh relative chamber, so whether it be the Senate Preparations Committee, then it has to go to the Senate uh floor, and then it once that gets passed, it has to go over to the House and goes through the same process.

Um, but it's really not set in stone until uh both chambers pass it, pass the bill, and then it's signed by the president.

Okay.

Thank you for your um comments or really even just a question for my colleagues for B.

I just wanted to make sure uh I know as a liaison and working with Eric with HR, this is kind of where we arrived, and as you've been able to review the information, did you all have any questions for me?

And then if seeing none, uh on F.

Um, I was just gonna ask Mr.

Milam if he could come for a moment, and a couple questions in regards to item F.

Yes, sir.

Thank you, sir.

Uh one to put your mind at ease, I plan to support this.

I just had some questions because I thought this was included in the consolidated services.

Uh why why are we not doing EMS?

That's it's it's coming.

This is an eventual process that is going to take some time to get to after the first of the year when the we really we realized there wasn't a funding available for the new center.

I had to make some adjustments.

And some of the adjustments uh involve the EMS portion of it.

I would like to get to that point, and I am working to that point to where we get to where we're uh dispatching EMD.

Uh but for right now, I don't have the staff or the space and with which to do that.

So at least on a temporary basis while we're deciding what to do with that in the next year or two, I'm going to be uh have to continue doing what we're doing already, which was transferred to Fort Smith EMS.

So the plan so far is and and if you could elaborate just a little bit more, and how can we get to a place where we need to be for this to take place?

Right now I'm working on the legislative requirements.

Uh I think we sent something earlier to you all uh that the first week of July.

The first week of July, we are going to fully consolidate, which will bring in Sebastian County into the Fort Smith Center.

That is where we're we're putting it uh for the last half of the year, right?

And that has been the main goal because this is something that the legislators required us to do.

Once we get past that, we'll spend the remainder of the year in order looking uh towards policies, procedures, how is this going to look at look like as a unified center, and then as uh we move forward where we're gonna be.

Uh the main uh the most important thing uh that I would say after July is to look to replace the radios.

Okay.

The radios that we have um we found out this week have an expiration date, and I'm moving.

I actually will have something probably in April for you all.

Uh we've got to move three radios from Sebastian County to Fort Smith uh in order to support the Sebastian County portion of it, and then once we get past that, we need to do look towards the radios first, and then we will look forward a uh facility.

Yeah, one of the things I was gonna say is as the new guy come coming into this, this was something that I needed to learn about to get in front of.

Um I would like to make a motion where we can take a deeper look into the future actions and steps needed for our consolidated 911 services.

Um if we could take a study session to when he timing is right within him and administration to come and really give us the data and the catch up of what we need to do and be proactive in this.

So I'd like to make a motion to have that on a future study session.

I'll second that.

Thank you.

Thank you for your time, Mr.

Malaman.

One other question I had for Mr.

Hoover, if he could.

And since he's coming just for the sake of time, because I'd love the idea of how fast we've gone.

Uh since there's a resolution for seeking congressional spending for water meters, and I have now learned that when we talk about this and first responders, we think police and fire, and what I have not fully realized is 911 and how critical that piece is to communicating to our men and women who are going to be responding out there on the field.

What else is out there?

And can we pursue funding for our 911 services through congressional earmarks?

Is that anything that we should be looking towards as well?

So yes and no.

Um so I will first off say that I think one of the most important things uh when having relationships with our congressional members is um getting and being former congressional staff and putting my congressional staffer hat on, um, it's getting the eyes and the ears of their staff on the things that are priorities for the communities.

Um, I realize just because you have a conversation with a congressional member does not necessarily guarantee that we put in a request that they're going to carry that request forward.

Um we actually submitted a request to Senator Bozeman uh for FY for FY26 year mark for the PD, um, and that did not get um carried forward by by Senator Bozeman.

However, um our request for uh waterline or neighbor basically water infrastructure improvements did get through uh for Congressman Womack.

So not to cut you off for just a second though, but so like when I think of Senator Bozeman and his passion for rural areas, and I think of our 911 services taking care of rural areas and sending out you know responders to farmers and things of that nature.

Would would it be appeasing to him to hear and carry a motion for radio communications?

I I believe so.

Um let me also say that um you may have a project that you want to you know put in a request for, but you have to realize that it has to fall into a certain category within the appropriations committee and within a particular program in order to fund it.

Now I know that from and I I'm a nerd when it comes to this stuff.

I I've looked at the appropriations numbers, uh, you know, um, and there have been um entities within Arkansas that have gotten money for uh uh technology equipment upgrades.

Um I know Joan the City of Jonesboro was one.

I believe they did get money for um a real real-time crime got a center.

Um, and I believe North Thunder Rock did as well.

So I would say that that could be aneligible cost.

Um we would just need to work with the congressional staff, um, talk through them to make sure that it's also a request that the Senator that the Senator, whoever we are gonna put that request into, um, would want to carry it forward.

Thank you.

I think I think these are things that I look forward to a study session, or we can talk more about it, giving our administration more time to think about it.

Thank you, Mayor.

Director Neil Moore.

Yeah, I uh just just with uh just with our relations with the staffers, I think that's vitally important.

What's important to know is we have a Fort Smithian in Senator Cotton's office.

Um Womack is here regularly.

Bozeman is a Fort Smith guy.

Yeah.

So I mean, I think that we we have good uh interactions with all of those folks, and so I think that's really good.

I I texted our our uh Senator uh Cotton's rep sitting on this day as tonight.

So I think that's really good.

Um the one thing I I will make mention of is in the last three years from a federal standpoint, the City of Fort Smith has received over 550 million dollars.

Now, a majority of that's going to the foreign military sales mission, but there's money going to the airport, there's 15 million dollars going to water projects, uh 82 million is going to our portion of I-49, and then the point of Fort Smith has gotten a little over 8 million dollars.

So having these relationships, have having you uh interface with with those folks and us making the requests, I think is vitally important.

But yes, not only is having the relationship with the the congressman and the senators, but having the relationship with those staffers is vital.

Yeah, I and I think it really begins from the the bottom up.

Um you know the the city administration can you know have their conversations with uh the congressional members and I know the mayor uh has all of them on speed doll but uh it really uh having having done that job uh it comes down to the local field staff, but um also it's it's relationships with the the the legislative staff as well.

So and and in particular for uh Congressman Woolmack, um uh Chris Vader, he's a the local field representative here, but then also Kyle Weaver, uh he is the project director for the Congressman based up in Northwest Arkansas, but then also the legislative director, which is Grace Vandergrift.

Um so having continual relationship with them and and letting them know what's going on in Fort Smith that informs them, and I know that they pass them up to their bosses and and really that's how things get done.

Yep.

How much was that again, Neil?

500 and well I just said 551 million nine hundred thousand.

Thank you very much.

Okay, any other comments from the board.

Okay, seeing none.

Just saying at this time we entertain a motion to adopt a consent agenda.

Some of it second.

Okay.

If there are no further comments, please call the role.

Director's good.

Yes, Kim?

Yes.

Kit Savis.

Yeah, yes, yes, yes.

Settled, yes, Martin.

Yes, Riga?

Yes, it's approved, six in favor and zero opposed.

Okay, thank you very much.

Uh we've reached the official forum.

Again, I would like to thank all the board members and and our staff, Lance and his team for getting us across the finish line with this consent decree uh that's been around for a long, long time.

Thank you all so very much.

Um I had a great meeting with uh with the United States Air Force Education and Training Command and uh in Phoenix at Luke Air Base.

And uh we were talking about how many jets we would have on the ground in Fort Smith.

But when they took me to the base in Phoenix, they've got a hundred and thirty-one F-35s on the ground, and they're flying all day long.

Of course, they're flying over the desert, which makes a big difference.

But uh they are looking forward to coming to Fort Smith.

Uh they've heard a lot about us, and we've made a great name for ourselves.

So coming up soon, we're gonna have some very, very high powered individuals from the United States Air Force visiting us, and I'm looking forward to again telling our story and letting them know why they should be here.

Um with that, I had a great visit with the second graders from Howard Elementary School.

Uh they came down City Hall and had fun.

Uh this time we'll go start with you want me to start on the other end.

You can start with me.

I'll make it quick.

Okay, directing the more.

We have 13 F-35s here right now, but more to come, so that's very good.

Amen.

Uh I'll be quick.

Uh everybody should know that the Great American Conference uh Division II basketball tournament will be held at Northside High School this year.

Uh it starts uh I think Wednesday.

Uh and the boys and girls uh the ladies and the men's uh teams will be coming here.

It's a great opportunity for the city for the host uh teams for Oklahoma and Arkansas and compete for their conference tournament on our way to Division II championship.

Thank you.

Thank you.

Unfortunately, the UFIS is not in that conference or in the MIAA but this is a great opportunity.

Arkansas Tech Center, Arkansas Marcello, uh, and it's a great Oklahoma school.

So please go out and support the teams here.

They're here spending money and staying in hotels here in the city.

So if you like good basketball, they play good basketball sitting at conference.

Uh Director Josh Cassandra's.

Yeah, uh Mayor.

Um I need well, I want to make a motion.

First, I want to say something.

Um I saw on the internet or whatever that Springdale, Arkansas, is going to freeze water and suit rights for people 65 and over.

Did y'all see that?

You said I'd like to discuss this at a study session.

Do y'all have any any problem with that or you know, Director Silly, you said study session said you know, savings, saving money.

To me, if you're saving money, then that money should go back to the people in a form of a utility credit or some kind of rebate.

I agree with that.

You see what I'm saying?

That's I said that last week.

Yeah.

I think he was saying he was saying maybe personal property tax cut.

I was or a property tax cut.

A lot of states are doing that.

I was saying a rebate.

I'd be good with rebate.

Okay, but I can be good with either one.

We're just calling it for a study session.

Did you get a second?

Yeah, I want to make the motion and take this to a study session discussed.

Okay.

Thank you.

Did you have any other oh no, sir?

Okay, Director Kemp.

Nothing for me, Mayor.

Thank you.

Director Good.

Thank you, Mayor.

Yeah, a couple of comments.

Um, first, let me say that uh I don't I want to give thanks to uh a couple of people.

Uh Joshua Robertson and Chris Hoover.

Uh I had an event that I was supposed to speak at uh to present at, and I wasn't able to because of my job.

Um wasn't able to last minute.

I asked Chris and Josh to present for me, and I heard they both did a wonderful job.

I want to appreciate them always being able to step up and cover.

And on that note, I wanted to thank all of our staff, so many of our staff do events or even create events outside of their work hours and work days, even on the weekends.

So you guys are a crucial part of our organization and a great part of our community.

So thank you all.

Um part of being the community, I wanted to give a shout out to UA Ford Smith.

Uh our student athletes' grade point average for the fall semester for all well, 150 or so athletes was a 3.3.

That's amazing.

So if you can't get out and support our student athletes, uh, I see several of you here.

Mr.

Herschel, I see you on a regular basis, but thank you guys.

Director Rego.

Thank you, Mayor.

Uh, I'd just like to make a motion to have uh local resident Andy Posterick, uh, who I think many of us know and have met, um, present a potential revenue generating plan.

Uh idea he's working on at a study session to us sometime in April.

I'll second that.

I also brought that up before.

Thank you.

Okay.

What's it related to?

Uh I mean, I'll I I think there's just ideas that he has observed in other communities about how to potentially generate more revenue towards our infrastructure needs in the city.

Is it okay?

Okay.

Yeah, particularly water, uh traffic, uh streets.

Okay, cool.

Thank you.

Yes, I do.

Okay.

Um Mr.

Dingman, you're recognized.

Uh thank you, Mayor.

First, uh this evening I'd like to point out that as of March the first, uh I've promoted Josh Bufenck to be our director of communications.

And as our new director of communications, Josh asked me to relate to you all that uh we received notice today or yesterday that out of four hundred and eighty-seven applications worldwide to the boring company for the tunnel project, we have been named one of the top 16 finalists for that project.

So I don't know what the timing is uh in terms of when that gets official or when we can find out if we win or not, but that's a that's a pretty good status so far.

So standing, Josh.

Uh and the last thing for this evening, uh just point out that next week's study session will happen here in the main room of the building.

So that's it.

Oh, here in this room?

Yes, sir.

About time.

Thank you.

Thank you.

If if there's nothing else to come before the board, motion to adjourn at 708.

Thank you.

All in favor?

Aye.

All right, I'm not sure if you're not going to be able to do that.