Fort Smith Board to consider sanitation charges, capital project plan

Proposed rate changes in some sanitation services and a proposed ordinance to create a process to review large capital projects are two items the Fort Smith Board of Directors will consider at Tuesday’s (Nov. 18) regular meeting.

Director Christina Catsavis on Oct. 29 proposed the board approve a plan she believes will prevent the rushing of board approval of new capital projects over $500,000. The ordinance would not apply to capital improvement plans already reviewed and approved during study sessions and at board meetings.

Catsavis’ motivation for the suggested ordinance was the controversial move by the city to buy water slides for Parrot Island Waterpark. The slides initially were expected to cost the city $2.1 million for acquisition and installation but are now estimated to cost more than $6.3 million. The city has spent an estimated $3.55 million on the slides and installation prep work, and it remains unclear what the city will do with the slides.

Following are key provisions of Catsavis’ proposed ordinance.
• Study session requirement
Any capital project estimated at $500,000 or more, or one that significantly impacts debt or recurring operational costs, must first be presented at a public study session before it can be placed on a voting agenda.

• Mandatory waiting period
There must be at least a seven calendar-day gap between the date of the study session presentation and any formal vote to approve the project.

• Required presentation materials
Staff must provide scope, cost estimates, funding sources, operational impacts, and alternatives considered.

• Limited emergency exception
Only for true emergencies threatening public health or safety, certified by the city administrator and approved by two-thirds of the board.

• Accountability and oversight
The internal auditor will conduct an annual compliance review and report findings to the Audit Advisory Committee and the board.

SANITATION SERVICE CHARGES
Duane McDonald, director of city of Fort Smith solid waste services, is proposing rate increases for some users of the city’s landfill that could generate more than $3.7 million in new revenue annually. McDonald is not seeking a rate increase for residential users, according to his memo to Acting City Administrator Jeff Dingman.

According to McDonald the department revenue “funds all operations from combined service revenues, as well as sinking fund savings for future capital equipment needs and landfill construction/closure requirements, plus related City Policy, Administration, Management and Neighborhood Services functions.”

McDonald said the need for rate increases comes from a recent study by Tustin, Calif.-based Sloan Vazquez McAfee, which was presented during a board study session in September.

“This report demonstrated that the rates which were last changed in 2020 are inadequate to cover the increasing cost of providing services driven by a greater than 25% increase in the Consumer Price Index as well as increased level of service and increased non-departmental requirements,” McDonald noted.

Following are some of the proposed rate changes.
• The rate for commercial trash disposal would increase from $36 a ton to $50 a ton, plus applicable fees and sales tax, with a half-ton minimum.

• The asbestos disposal rate would increase from $100 a cubic yard to $120 a cubic yard, and waste requiring special handling would see a new rate of $60 per ton.

• The rate for waste brought in by a pick-up truck would rise from $20 per vehicle to $25.

• The plan would add a $15 charge to return to pick up residential trash or recycling that was not set out for collection on the scheduled day.

• The industrial roll-off container haul charge would rise from $160 to $200, and commercial waste cart fees would rise from $20.96 to $25.85.

The proposed rate plan also would annually index rates for landfill disposal and commercial and industrial services to the federal Consumer Price Index (CPI), which measures price changes in goods and services. New rates, based on the CPI, would go into effect each Jan. 1, and would rise no more than 5%.

“The attached rate option table shows that the proposed adjustments would generate an estimated $3,753,100 in additional revenue for solid waste services, and it is understood that a portion of this revenue may be used to supplement appropriate general fund operations,” McDonald noted in his memo.

Link here to see the full board agenda.