Fort Smith Board talks conduct rules, budget issues

The Fort Smith Board of Directors hit on three different items at the body's noon study session – the city's capital improvement program, the work already in-progress on the 2014 budget and the city's code of business conduct.

The business code of conduct was discussed due to a question that arose with the resignation this month of now-former Parks Commission Chairman Bobby Aldridge and his interest in performing work for the city through his full-time employer, Frontier Engineering, where he is president.

"The concern was that a conflict of interest would occur," said Fort Smith Internal Auditor Mitzi Kimbrough in a memo to the Board, later adding that the city's Code of Business Conduct was restrictive and banned any financial transaction between a municipal representative and the city of Fort Smith.

In research for possibly changing the city's code, Kimbrough and her staff found that several entities across Arkansas, Oklahoma and Texas "did not prohibit citizens serving on boards and commissions from holding contracts with the associated organization." That said, the citizens in questions were not allowed to vote on the approval or recommendations of contracts that would approve their own business.

In discussions researching the issue, Kimbrough reported that the city's staff had "determined that many citizens or professionals that hold positions on boards and commissions do have financial transactions with the city, which is against the current policy."

In order to make the code less restrictive but still within the letter of the law, the city's internal auditing team recommended to the Board to change the code to "prohibit transactions between a municipal representative and the city only where that transaction is under the final and ultimate purview of the commission/committee, but not otherwise."

City Director Mike Lorenz said even with the change, if approved at the Board's Oct. 15 regular meeting, actions taken by the city and its leaders may be viewed in a different light.

"It doesn't matter what reality is, it matters what public perception is."

CAPITAL IMPROVEMENT
Addressing the city's capital improvement program, the Board was presented with a proposed five year plan for various projects to improve street, bridge and drainage using sales tax funds instead of bond funding.

Director of Engineering Stan Snodgrass presented 18 priorities that he said were necessities for the city.

"The proposed program includes a combination of neighborhood street improvements, major street projects, local and basin wide drainage improvements and traffic signal improvements."

For next year's budget, Snodgrass said he expected the program to cost about $36 million. The total for the entire five year program is projected to cost $126 million.

"The five year plan supports the Board's goals of neighborhood vitality, riverfront development, jobs creation and beautification."

In a memo to the Board, Snodgrass detailed several of the projects:
• Intersection and Signal Improvements: This project includes replacement of the traffic signals at the intersections of Towson Avenue/Fresno Street and Midland Avenue/North 32nd Street. Also included with this item is the proposed construction of a new traffic signal at the intersection of Zero Street with Ben Geren Park which will serve the traffic associated with the new water park.
• Spradling Avenue Extension at Riverfront Drive: This project includes the new construction of Spradling Avenue eastward from Riverfront Drive approximately 1700 feet. This street will serve the proposed sports fields on the City's 51 acre tract. Plans are basically complete and the construction will be scheduled to coincide with the construction of the sports fields in late 2014.
•  May Branch Drainage Project: This project is to reduce flooding along May Branch from the Arkansas River to Park Avenue. It consists of constructing a drainage channel to replace the existing deteriorated and hydraulically inadequate concrete pipe. The project is currently being designed by the Corps of Engineers. The City continues to lobby for federal funding to assist with the project as the total cost is in excess of $30 million.

The plan also includes an evaluation of priorities set by the Board at its recent retreat, which include an extension of Spradling Avenue westward to Riverfront Drive, incorporation of bike lanes to transportation planning, roadway enhancements for Riverfront Drive, creating gateway entrances to neighborhoods and adding trees to various parkways. The cost for the evaluation of these projects totals $65,000.

In other business, Director of Finance Kara Bushkuhl briefly addressed the Board, saying that her staff was "far from a balanced budget" as they continue to work on a 2014 budget. She told the Board that a draft of the budget should be ready in early November and would be presented to them at meetings on Tuesday, Nov. 12; Thursday, Nov. 14; and Monday, Nov. 18.

Bushkuhl said after the meeting that being so early in the budgeting process, it would be premature to discuss any specifics regarding a proposed 2014 budget.