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Fort Smith board adopts ordinance requiring disclosure from third‑party intermediaries after Parrot Island dispute
Summary
The Fort Smith Board of Directors adopted an ordinance creating disclosure and accountability requirements for third‑party intermediaries involved in city transactions, citing gaps exposed by recent dealings over Parrot Island water‑park slides. The board also approved an emergency clause to make the rule effective going forward.
The Fort Smith Board of Directors voted to adopt an ordinance on Feb. 17 that requires third‑party intermediaries who influence city purchasing or pricing but are not under city contract to disclose financial interests and certify the accuracy of pricing information.
City leaders said the measure grew out of concerns raised during the board’s review of Parrot Island Waterpark slide procurement, where directors and members of the public questioned whether intermediaries had financial incentives that were disclosed to the city. The proposer told the board the ordinance is intended to "address a gap in accountability" and standardize practices across city business rather than to punish vendors.
City Attorney Colby Rowe told the board the ordinance targets an intermediary that is not contractually bound to the city and explained that enforcement would likely be a civil matter if a certification proved false. "If the third party gets it wrong, ... it obligates them to operate in good faith," he said during the discussion, adding that proving intentional misconduct would depend on the evidence that could be developed in litigation.
Residents who spoke during public comment urged adoption, linking the measure to problems they described in the Parrot Island slide procurement. Kim Fodge, a resident who addressed the board, said due diligence was not performed during the slide purchase and urged directors to approve safeguards so the city does not repeat prior mistakes. Other commenters warned against perceived backroom deals and called for transparency.
After discussion about scope, enforceability and whether the rule would capture consultants or brokers, the board adopted the ordinance by recorded vote; minutes show the motion passed with six votes in favor and one opposed. The board then passed the emergency clause by the same margin so the ordinance applies to future transactions rather than retroactively.
The ordinance’s text, as presented, requires intermediaries who provided pricing or negotiated on the city’s behalf but are not under contract to certify that material facts were not omitted and to disclose any financial interest. Staff said the rule is narrow by design and does not replace standard contractual protections for parties already under a city contract.
Next steps noted by staff and councilmembers included publishing the ordinance language in the city code and working with procurement and legal staff to implement the certification process and identify where the requirement applies in current procurement workflows.
