Fort Smith Board of Directors Study Session - June 23, 2026
Fort Smith Board of Directors Study Session
This study session covered four major items: review of the CDBG/HOME five-year consolidated plan, discussion of proposed legislation for hospital service closure notification, replacement of the ProPhoenix CAD RMS system due to a security breach, and a financial assistance agreement with the Fort Smith Housing Authority for Bailey Hill redevelopment. Additionally, the board scheduled a strategic workshop and a regular meeting agenda.
Public Comments & Testimony
- No public comments were made during the study session.
Discussion Items
1. Review of Draft CDBG and HOME Five-Year Consolidated Plan (2026-2030)
- Candace presented the draft consolidated plan, annual action plan, and citizen participation plan required by HUD. The review and comment period ended June 17, 2026, and the plan is to be submitted to HUD by July 10, 2026. Director Kemp asked about the waiting list for owner-occupied rehab assistance; Candace stated there is typically a two-month waiting period, not a long waiting list. Director Kemp also asked about nonprofit groups like World Changers; Candace responded that World Changers completed their work this week and no other groups have expressed interest.
2. Discussion Regarding Proposed Legislation on Community Notification of Hospital Services
- Director Settle introduced the topic, prompted by Baptist Health's reduction of services (labor and delivery, cancer treatment) in Fort Smith. He proposed a 180-day notification period before closing or significantly reducing critical care services, citing similar legislation in California (120 days) and Maine (90 days). Representative Jay Richardson attended and discussed potential pushback (e.g., single-doctor departments leaving). Directors discussed the WARN Act (60 days, 50+ employees) as insufficient. Director Kemp suggested addressing insurance reimbursement rates as an upstream issue. Representative Richardson agreed to work on drafting legislation. Director Good noted the distinction between private businesses and hospitals with tax-exempt status, supporting the need for notification.
3. Discussion on ProPhoenix CAD RMS Mobile Replacement Solutions
- Dr. Wes Milam explained that in February 2026, a breach by ProPhoenix violated the city's contract and FBI CJIS security policy. The city terminated the agreement and is seeking a refund of approximately $1.2 million. The 911 board will be asked to allocate funds from reserves ($2.3 million available) to contract with Central Square for a replacement system at a one-time cost of $380,000, which includes service/maintenance for four years and is less expensive than the ProPhoenix contract. Implementation timeline is 6–18 months, but may be shorter due to recent experience. Attorney Colby Rowe noted ProPhoenix has not responded to the breach notice; litigation could take years. The board expressed confidence in recovering funds. Director Christinica Cassavis asked about the timeline for a lawsuit; Rowe stated it's uncertain. Director Neil Martin confirmed the city's strong position on breach.
4. Discussion of Agreement with Fort Smith Housing Authority for Bailey Hill Redevelopment
- The city donated the former Bailey Hill reservoir property to the Housing Authority in 2012. The Housing Authority now requests $1 million from the street tax fund for infrastructure (streets and drainage). Mitch Minnick presented details: 34 homes will be built (24 for families at or below 80% area median income, 10 for up to 120% AMI). Phase I (demolition) cost $780,000, funded by the Housing Authority ($436,000) and CDBG ($343,000). Phase II (infrastructure) will use the requested $1 million plus $139,000 CDBG and $341,000 Housing Authority funds. Homes will be sold at market rate with subsidies to buyers; homes will go on tax rolls. Director Neil Martin questioned the cost, the lack of similar assistance to other developers, and requested a breakdown of costs for South S Street versus new streets. Director Kemp supported the project but asked for clawback provisions to protect the city's investment. Director Settle suggested a deed restriction. The board decided to table the item to the regular meeting on August 18, 2026, to allow time for the Housing Authority to provide additional details and answer questions.
Key Outcomes
- Item 2 (CDBG Plan): Motion to place on the July 7 regular meeting agenda was made and seconded; no vote recorded but consensus to move forward.
- Item 1 (Hospital Notification): No formal action taken; Representative Richardson will work on drafting legislation and return to the board.
- Item 3 (CAD RMS Replacement): Motion to place on the July 7 regular meeting agenda (board approval of Central Square contract) was made and seconded. Dr. Milam will request 911 board approval for fund allocation.
- Item 4 (Bailey Hill): Motion to schedule for regular meeting on August 18, 2026, was made and seconded. The Housing Authority will provide cost breakdowns, feasibility of clawback provisions, and other requested information before that meeting.
- Strategic Workshop: Rescheduled to Friday, June 26, 2026, at 9:15 a.m. at Regions Bank Building (7th floor) to accommodate all board members.
- Next Meeting: No study session on June 30; next regular meeting is July 7, 2026.
Meeting Transcript
And so, and so, and we have to come. Um, and so, and so, and so, and so, and so, and so, um, and so, and so, and so, and so, um, and so, um, and so We have a lot of good evening and welcome to this evening's study session for the Fort Smith Billard of Directors. Uh, the mayor is absent tonight, as is our vice mayor, so the remaining board members need to uh determine someone to uh chair this evening's meeting. But uh nominate Kevin Settle. Okay. Any other nominations? All in favor of Kevin. Good afternoon or good evening, everybody. Welcome to the night study session. Uh we will uh do a little pivot tonight. We're waiting on some people for item number one, so we'll go to item number two review of the draft community uh block development block grant and home investment partnership for five-year consolidated plan twenty twenty-six twenty twenty thirty. Jeff. Thank you. As discussed, I'm looking for Candace. There she comes. All right. This item is review of the draft community development block grant and home investment partnership fund, the five-year consolidated plan for twenty twenty-six to twenty thirty, the program year twenty twenty-six action plan and the citizen participation plan is required by U.S. Department of Housing and Urban Development for participating in these programs. Good evening. This year marks the end of our or the beginning of our 2026 through 2020 2030 draft five-year plan. The review and comment ended on June 17th, and pending your approval that will be submitted to HUD on July 10th. This plan completed the preparation of the consolidated plan, the 2026 Annual Action Plan, and the citizen participation plan as required by HUD. And I'm happy to answer any questions regarding the plan. Thank you very much, Candice. To the board, any questions? Uh Director Kemp. Thank you. Um Ms. Kabucci, thank you for being here. How many eligible residents are currently waiting for owner-occupied rehab assistance? Do we have like a list that's still like in in waiting process? We don't really have a waiting list. Normally there's maybe a two-month waiting period, and that's just for uh housing assistance board approval and just to get bids out. So no, we we don't have a long waiting list. Is there still uh nonprofit groups looking to come in and help the process? I know like world changers has come forward before. Is there still talk of you the groups like that coming to utilize and help support? Uh actually this week completed the end of world changers work that they did within the city, and uh we haven't heard of any other groups that are interested, but we're still working on that. So okay, thank you. Any other director will have a comment? All right, seeing none, that was pretty easy. Uh we need two uh two directors to make a motion second to put this on the uh July 7th meeting. So moved. I'll say it. Director Kemp and Director Good. Thank you very much, Candace. Appreciate your time and effort. Thanks for the team. Alright, uh, we will go back to item number one, a discussion uh regarding proposal legislation regarding community notification of hospital services, and I'd like to ask uh representative Jay Richardson who is here to please join us up at the uh desk up here and we can talk through it. And thank you for being here, Jay.
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