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.