Legal services contracts on Fort Smith board agenda

Continuation of two legal services contracts are part of the Fort Smith Board of Directors regular meeting Tuesday (Dec. 2), with one contract to continue working with a law firm that has handled the city’s legal work since 1968.

Fort Smith-based Daily & Woods, founded in 1912, has handled part of the city’s legal services since 1968, and Acting City Administrator Jeff Dingman is recommending the board approve a 2026 contract with the firm. As has been the case for many years, no other law firm submitted qualifications in the city’s annual call for submissions.

“The Daily & Woods firm has provided legal services to the city since 1968 and has been the designated city attorney since 1973,” Dingman noted in a memo to the board. “The proposed contract with Daily & Woods for legal services in 2026 and information about the attorneys at the firm is attached. The hourly rate schedule is the same as 2025 rates, with the hourly attorney rate at $200 per hour and the hourly paralegal rate at $70 per hour.”

The city has paid Daily & Woods $2.257 million in legal fees between 2020 and November 2025. The annual payment to the firm for legal services averages $377,292 between 2020 and 2024. The firm has been paid $370,879 in the first 11 months of 2025.

The per hour rate charged by Daily & Woods in the proposed 2026 contract is $200 for attorneys and $70 for paralegals, the same rates charged in 2025. The hourly rates are up from $160 and $54, respectively, in 2020.

Legal fees paid to other law firms between 2020 and November 2025 total $738,052, with a majority of that paid to Richmond, Va.-based AquaLaw to support efforts to comply with a federal consent decree — mandated by the U.S. Department of Justice and the federal Environmental Protection Agency — requiring improvements to the city’s sewer system.

The board on Tuesday will also consider renewal of a contract with AquaLaw for 2026. Lance McAvoy, director of water resources for the city, is recommending approval of the contract which has an initial limit of $100,000. That limit could be increased during 2026 with approval from the board.

“AquaLaw’s practice is focused on Federal Wastewater Consent Decrees, and as such, have been instrumental in handling matters with both DOJ and EPA,” McAvoy noted in a memo. “The need for specialized legal assistance still exists as we proceed with finalizing the modification to the current consent decree, dispute any possible stipulated penalties, and work towards resolution of any outstanding dispute items.”

In response to questions from Talk Business & Politics about the city continuing with an outside legal firm or bringing legal work in-house, Director Christina Catsavis said she doubts an in-house attorney would save money.

“Based on what I have seen, the city has never saved money by building new internal departments,” she said. “We routinely underestimate long term expenses and the workload required to manage them. Bringing legal services in house would require salaries, benefits, support staff, ongoing training, and associated downstream costs.”

She also opposes any study to determine how best to provide legal services to the city, saying that such studies “are costly and rarely produce any actual savings.” She sees a benefit from having an attorney who is outside the politics of city hall.

“I also believe strongly in keeping separation between our attorney and the day to day political environment inside City Hall,” Catsavis said. “Independence is critical. Our legal counsel must be able to give honest, unpressured advice, and that requires some distance. Without it, you run the risk of influence, blurred lines, and the possibility of corruption.”

No other directors responded to the questions from Talk Business & Politics.

Link here for the board agenda.