May 6, 2014 City Commission Meeting

City Council Meeting Summary - May 5, 2014

📅 Announcements

• Community Action Month: Mayor West Maynard proclaimed May 📅 2014 as Community Action Month, recognizing the Central Oklahoma Community Action Agency's 50-year history of promoting self-sufficiency and assisting families in six counties, including Pottawatomie and Seminole. Gloria Wallace, a board member, accepted the proclamation.

Presentations & Recognitions

• Employee of the Month: Jimmy Long from the Parks Department was recognized as Employee of the Month for his 7 years of dedicated service, including 2 years as a supervisor.

Public Comments

• Tree Safety Hazard: Johnny and Katherine Reed of 1014 Overland Court raised concerns about a half-dead tree at 1015 Overland Court. They reported it is overhanging the street, posing a safety hazard to neighborhood children, and noted a previous tree falling caused damage to a neighbor's property. City staff was directed to investigate the matter and follow up with the residents.

Key Decisions & Votes

• Approval of Agenda: The meeting agenda was ✅ Approved.
• Approval of Consent Agenda: The consent agenda was ✅ Approved. A question was raised regarding a tort claim denial for drainage issues at 30 East Snider, which the city's insurance company determined was not the city's fault.
• Oklahoma Baptist University Authority Bond Resolution: The City Council considered and ✅ Approved a resolution authorizing the sale of up to $6 million in Oklahoma Baptist University Authority Bond Anticipation Revenue Notes, Series 2014. These funds are for the construction of Stabos Hall, a new 31,000 sq ft College of Nursing building on the OBU campus, located at the corner of Kickapoo and MacArthur. The resolution also approves up to $6 million in permanent financing to retire the note and waives competitive bidding. OBU noted significant construction investments totaling $32 million over three years.
• City Contribution to Employee Health Coverage: The Council discussed and ✅ Approved the staff's recommendation to increase the city's contribution to employee health coverage for fiscal year 2014-2015. The motion specifically funds 65% of the overall increase for non-union employees and directs staff to negotiate with labor unions for their members. This decision addresses a 27% increase in health insurance costs due to a 116% claims history, aiming to support employees given current starting pay rates.
• Woodland Park Pool Improvements Contract Award: The Council considered bids for the Woodland Park Pool improvements and ✅ Approved awarding the contract to Bronco Enterprises for a total of $3,670,000. This includes the base bid and add alternates one, two, and three (both slides and ornamental fencing). The decision involved waiving an informality (missing affidavits) for Bronco Enterprises, as the previous low bidder was deemed unqualified by the pool engineer. Funding for the project comes from a city loan, an Aydelotte Foundation challenge grant, and private donations. Approximately $530,000 remains for future parking and driveway improvements.

Financial Matters

• Budget Presentation for Fiscal Year 2014-2015: City staff presented the proposed budget for the upcoming fiscal year.
  • General Fund Revenues: Projected at $21,751,006, with over 74% coming from taxes (sales, use, alcohol, cigarette, franchise fees). Sales tax growth is conservatively budgeted at 3%, though current trends show over 5%. Key revenue sources include remaining Cops Grant funds ($123,000 for about one more year) and Safer Grant funds (for firefighters, with one year remaining). The Shawnee Municipal Authority (SMA) will repay $250,000 of its debt to the General Fund this year, with $375,000 remaining for next year.
  • Staffing Needs: The Police Chief indicated an optimal staffing level of 69-70 officers (currently 59, including grant-funded positions). The Fire Chief stated an ideal addition of two firefighters per shift (currently 48 online, 5 staff).
  • General Fund Expenses: The budget includes 2.5% merit raises and a 1.5% cost-of-living adjustment (COLA) for employees. Workers' compensation is budgeted at $650,000, a significant reduction from $1.3-1.5 million five years ago. Changes to the pension system saved the General Fund $447,000 this year. Three potential new positions (Grant Writer, Purchasing, Public Information Officer) were put on hold but may be revisited mid-year if revenues are strong.
  • Animal Welfare: The budget allocates $8,000 to transition from gas chamber euthanasia to lethal injection, including startup costs, drug expenses, and staff training. Euthanasia numbers have decreased by 200 over the last three years.
  • Parks & Right-of-Way Maintenance: $175,000 is budgeted for a crew leader and six workers from a non-profit employing ex-offenders, providing an all-inclusive service to enhance city beautification and maintenance.
  • Capital Fund (Third Penny): The third penny sales tax is allocated to Streets (43.75%), Police and Fire (6.25%), Economic Development and General Fund Capital (38.75%), and SMA (11.25%). Total debt service from this fund is over $1.6 million. Available funds for projects, including rollovers, total $2.3 million, with proposed projects totaling $2.1 million. Key projects include IT upgrades, wayfinding (rollover), replacing Fire Engine 3 (a 1980 model), and some Emergency Management equipment. The Municipal Auditorium's heat and air system requires an estimated $600,000; $250,000 is rolled over from this year, and $175,000 is budgeted for next year, with a goal to complete the project in FY 2015-2016.
  • SMA Revenues & Expenses: Water sales are down due to the loss of customers from the Citizen Potawatomi Nation (CPN) and the City of Tecumseh. Revenues are currently strong at 75% of the year's budget, with expenses at 61%.
  • SMA Debt Service & Transfers: Debt service totals $2.8 million, including a $500,000 payment for the West Watkins refinance, which is projected to save $1.8 million in interest. SMA transfers include $1.1 million to the General Fund for administration fees, $250,000 for loan repayment to the General Fund, $150,000 to the Capital Fund, $600,000 to Streets for the Kickapoo waterline portion, and $350,000 for downtown streetscape projects.
  • SMA Capital Expenses: Planned expenses include $1 million each for water line and sewer line distribution repair (part of the master plan), cleaning the sludge pond, a skid steer with attachments, and a new boat dock and pavilion at the lake.
  • Final Observations: The City Manager emphasized the need for dedicated funding for economic development (currently $150,000 in fund balance, but millions more are needed to compete). He also stressed the importance of retaining SMA customers to avoid rate increases and the need to grow the General Fund's cash balance (currently $4 million, or 4 months of reserves) to a target of six months. The city also has $190 million in capital projects identified over a 20-year period that need prioritization and funding strategies.
  • Outcome: The budget was Presented. A public hearing is scheduled for June 2nd, and work sessions will be scheduled for commissioners to review the budget further.

Detailed Sections

Drought Management Plan Presentation

• Utility Master Plan Volume 1: The Shawnee Municipal Authority received a presentation on Volume 1 of the Utility Master Plan, focusing on Water Supply and Treatment Capital Improvements. This is the first of four volumes, with subsequent volumes on Sewer Treatment, Sewer Collection, and Water Distribution to be presented at future meetings.
• Drought Management Plan Review: The presentation highlighted discrepancies in lake level measurements used for drought management.
  • Discrepancy: A 2-foot difference was found between USGS (U.S. Geological Survey) electronic readings and physical painted markings on lake towers. This is due to a shift in vertical datums (from NGBD 1929 to NAB D88), with USGS readings being 2 feet higher.
  • Recommendations:
    • Consistency: Eliminate painted markings on towers and rely on USGS electronic gauges and website data for consistent lake level reporting.
    • Revised Triggers: Adjust all drought management plan trigger levels by 2 feet to align with the current NAB D88 datum.
    • Voluntary Conservation (Level 1): Introduce voluntary odd/even watering restrictions, clarify water plant capacity (6.5 million gallons per day), and define measurement for average weekly production.
    • Watering Methods: Recommend handheld watering with a shut-off nozzle to prevent continuous water flow.
    • Peak Demand Management (Level 2): Restrict watering hours on even days to help manage peak water demand.
    • Commercial Restrictions: Clarify commercial water reduction targets and apply residential outdoor water use restrictions to commercial customers. Implement Best Management Practices (BMPs) for commercial users, such as limiting car wash water usage (40 gallons/vehicle, then 20 gallons/vehicle in severe drought), serving water in restaurants only upon request, and adjusting linen changes in lodging for multi-night guests.
    • Severe Drought (Level 4): Restrict water use to indoor household purposes only.
    • Public Awareness: Suggest creating a simple graphic (e.g., a drinking water glass or gas gauge) on the city website to visually represent lake levels and encourage conservation.
• Outcome: The presentation was Presented. Executive summaries for each volume of the Utility Master Plan will be provided to commissioners.

Agenda Summary Table