The price for Smith seems fair, but I think the Kings should not go for him. They better extend Arvidsson for less than that. Arvy is still a few years younger, hopefully now fully healthy and familiar with the Kings and his line mates.
Smith simply might be too expensive

Reilly Smith is too expensive for Los Angeles; the Kings can spend less money re-signing Viktor Arvidsson for three or four seasons than one season of Reilly Smith, and if you retain on him, it would make more sense to re-sign Blake Lizotte for three or four seasons. Smith just isn't a fit with Los Angeles.

Maybe a team like Utah or The Avs would work. Utah wants names and the Avs need cheap but sold depth.

Caps have no need/interest.

But your mom does!