Danny Baker

The primary discussion centered on a resolution approving an agreement and order of modification to the existing consent decree, which was previously reviewed in a study session. The modification seeks to extend the compliance timeline by an additional 11.5 years (until June 30, 2038) and provides increased technical flexibility to prioritize capital projects, including wastewater system improvements funded by up to $385 million in sales and use tax bonds. City Attorney Paul Calamita presented the modification, noting that it resets the program, allows the city to move back into compliance immediately upon entry by the Judge, and addresses challenges like unexpected costs and force majeure events experienced previously. Board members discussed the implications for sewer rates post-2030, the status of construction completions (approximately 40% of manhole work and 30% of line work based on 2024 figures), and the negotiability of the stipulated penalty fine. Public comments were offered both in favor of the modification, citing improved financial terms compared to prior proposals, and in opposition, citing the financial burden on residents from past and projected rate increases and potential spending issues.

The meeting focused on several items of business, including a review of a proposed Consent Decree modification and a discussion regarding the reinstatement of mosquito fogging operations. The Board also reviewed the City of Fort Smith Fiscal Performance Policies, requesting additional data without inflation regarding reserve fund spending. Discussions included audit provisions for third-party service provider contracts, where the Board concurred that audits should be performed, and a review of Water Conservation Measures, suggesting a focus on incentivizing compliance. The draft non-retail (wholesale) surplus user water agreement was discussed, with recommendations to include cost share language and enforcement mechanisms. The session concluded with a review of the preliminary agenda for the subsequent regular meeting, and individual director reports concerning crosswalk safety signs, replacement of a tattered flag, scheduling of security lighting discussions, and placement of an item concerning City Administrator search services on the next regular meeting agenda.

The Board of Directors meeting addressed several items of business, including the approval of an ordinance establishing accountability and disclosure standards for third-party intermediaries in City transactions. Other ordinances approved involved amending the 2026 Operating Budget to appropriate unobligated General Funds for spay/neuter services and for 2025 encumbrances and carryovers. Several resolutions were passed concerning the acceptance of project completion and final payment for SSA Remedial Measures and Capacity Improvements projects, as well as authorizations for acquiring sewer utility easements. The Consent Agenda included approvals for the renewal of City automobile and property insurance, acceptance of bids for the 2024 Street Overlays/Reconstruction, Phase B, and acceptance of final payment for the Transmission Line Casing project at Gun Club Road Interchange. Additionally, approvals were granted for a Change Order related to I-540 and Highway 255 Utility Relocation and the acceptance of bids for the purchase of vehicles and equipment for the Public Works Department. The meeting also featured a presentation by the Girl Scouts Diamonds of Arkansas, Oklahoma, and Texas.

The key discussions and actions during this meeting included the placement of two ordinances on the agenda: one establishing accountability and disclosure standards for third-party intermediaries in City transactions, and another amending the 2026 Operating Budget to appropriate $150,000 for spay and neuter services. The Board also addressed budget amendments for 2025 encumbrances and carryovers totaling significant amounts across various funds. Several engineering utility projects were presented for final acceptance and payment, including the SSA Remedial Measures projects with Brothers Construction, Inc. (Project No. 23-19-C1 Open Cut) and Humbard Contracting, Inc. (Project No. 23-19-C3 CIPP). Further consent agenda items involved resolutions for renewing city automobile and property insurance, accepting bids for street overlays/reconstruction, accepting final payment for the Transmission Line Casing at Gun Club Road Interchange, approving a change order for utility relocation, and accepting bids for Public Works vehicles and equipment.

This document details the funding strategies employed by the City of Fort Smith to meet its Consent Decree obligations. It outlines various financial mechanisms, including a mix of utility revenue, bond financing, dedicated sales taxes (approved in 2022 and renewed in 2025), excess sales and use tax funds, and federal ARPA funding. Additionally, the plan incorporates annual sewer rate increases from 2025 through 2030 to address operational and maintenance costs, inflation, aging infrastructure, and system expansion required for pipe replacement and capacity improvements.