Task force provides guidance for regional intermodal authority

Elected officials and business representatives from Crawford and Sebastian counties agreed Wednesday to create a regional intermodal authority — a decision that has taken more than 15 years and numerous attempts to reach.

The Western Arkansas Planning and Development District is shepherding a process to identify the viability of creating a formal organization that would develop, maintain and/or operate intermodal/port facilities. The goal is to create a structure and facilities “that would enhance regional freight management and advance the competitiveness of the region’s business,” according to WAPDD information. In other words, the group hopes to maximize the use of all forms of transportation — rail, barge, air, interstate — so as to reduce shipping costs and increase service options for regional business and industries. The regional task force studying the issue first met Feb. 18, and in late April hired Mat Pitsch to direct the effort. Efforts to create a regional freight system were first attempted in the early 1990s.

Pitsch, the former vice president-economic development at the Fort Smith Regional Chamber of Commerce and past faculty member at the University of Arkansas at Fort Smith, challenged the regional group gathered at Wednesday’s meeting in Van Buren to answer three critical questions:
• Does the region need a freight management system?
• If so, what organizational structure should be created to manage the system?
• Who should be on the governing board of the organizational structure?

“When we leave this meeting, I hope we travel down a road to doing things,” Pitsch said in his opening comments. “It’s important that this be an action-item type meeting.”

FREIGHT MANAGEMENT SYSTEM
To help reach an answer, Pitsch said a recent survey of 92 freight users — representing 95% of freight users — clearly indicated a need for a better regional freight system. Pitsch said a manufacturer employing more than 1,000 in the area that recently faced closure. Because the Fort Smith plant was able to reduce shipping costs by 28%, the plant remained open and its sister plant in another state was instead closed.

“Freight is becoming a very important entity,” Pitsch said, noting that a freight management system will “vastly improve” the chances to keep large employers in the area.

Sebastian County Judge David Hudson said there is no debate about the need for a regional freight system.

“I think everyone here would say ‘Yes,’” Hudson said. “Any time you hear of a large company that survived because of freight, then this is something we can’t ignore any longer.”

Pitsch said the task force must also agree that such a system will seek to solve freight issues “on a multi-modal level” and across all sectors of the region.

“This is more than just one thing or one thing on one side of the (Arkansas) river,” Pitsch said.

The task force then agreed that a freight management system is necessary.

ORGANIZATIONAL STRUCTURE
Pitsch, along with Rusty Myers and Ken O’Donnell with the WAPADD, recommended the task force accept a regional multi-modal transportation authority allowed under Act 690 of the 2001 Arkansas General Assembly.

The authority allows for greater flexibility in accepting local, state and federal tax monies and grant funds, O’Donnell explained. Also, the authority structure allows for greater regional representation. O’Donnell said a public facilities board would require “cumbersome” levels of agreements between counties and cities.

Hudson and Fort Smith City Administrator Dennis Kelly recommended a thorough legal review of any structure created so as to avoid conflicts with existing legal statutes. Kelly went so far as to push for a meeting between attorneys representing the cities and counties involved and John Verkamp, an attorney advising WAPADD on regional authority issues.

After a lengthy discussion on potential legal entanglements and organizational issues, the task force accepted the concept of forming as a regional multi-modal transportation authority as long as all potential legal issues are researched and resolved.

GOVERNING BOARD
The conflict of the meeting occurred after Pitsch suggested a nine-member authority board with five members approved by Fort Smith and Sebastian County, and four approved by Van Buren and Crawford County.

Specifically, board members positions would be placed as follows:
• City of Fort Smith: four positions, with at least two representing the private sector/Fort Smith Manufacturing Executives Association
• Sebastian County: one position
• City of Van Buren: three positions, with at least one representing the private sector/Fort Smith Manufacturing Executives Association
• Crawford County: one position

Russ Bragg, a vice president at Fort Smith-based OK Foods, said the structure appeared to be “an equitable mix.”

But Crawford County Judge John Hall said he was under the impression “both sides of the river” would have equal representation.

“You all knew (my feelings) when you drew this (draft of board structure) up. … We’re going to have equal representation on this,” Hall said.

Myers, Bragg and Larry Balch, plant manager of Georgia Pacific-Dixie Cup in Fort Smith, said the three business interests on the board will support what’s best for business and won’t wear political hats.

“We’re fighting for our (business) survival. We’re not fighting over county lines,” Bragg said.

However, Bragg was the first to suggest the board expand to 10 members, with Van Buren or Crawford County selecting a person for the position.

“That makes it even. So let’s do this,” Bragg said.

NEXT STEPS
The next step is that the city boards in Fort Smith and Van Buren and the quorum courts in Crawford and Sebastian counties must approve an ordinance allowing the administrative heads of their respective bodies to enter into negotiations to create the structure of a regional intermodal authority.

Pitsch, Myers and O’Donnell said they would soon forward a draft of legal language of such an ordinance to members of the task force in preparation for a meeting. The task force agreed to meet within 30 days to discuss the ordinance.

When and if a legal structure is approved by the task force, then the city boards and quorum courts are required to approve the structure of a regional intermodal authority.

“This is huge,” Pitsch said after the meeting adjourned. “You just had key folks from the region agree to three key decisions that will move this forward.”