Meeting Summary
Announcements
- Oklahoma Water Resources Board (OWRB) Application Deadline: The application for financial assistance to refinance the Wes Watkins Reservoir debt must be filed by 📅 February 20th.
- Bond Pricing and Closing Dates: The OWRB will price their bonds in 📅 March, with the transaction expected to close in 📅 April. The City Commission will reconvene in late 📅 February or early 📅 March for final approval of the refinancing terms.
Key Decisions & Votes
Shawnee Municipal Authority: Refinancing Wes Watkins Reservoir Debt
The Shawnee Municipal Authority discussed and took action on refinancing the existing debt for the Wes Watkins Reservoir.
- Current Debt: Approximately $13.5 million remains on the debt, currently at an interest rate of 4.60%.
- Refinancing Opportunity: The city has an opportunity to refinance this debt through the Oklahoma Water Resources Board (OWRB) at significantly lower interest rates (estimated 2-2.5%).
- Potential Savings: Depending on the chosen payment structure, the refinancing could result in gross savings (net of transaction costs) ranging from $1.8 million to $2.2 million.
- Payment Options Discussed: Several scenarios were presented, including maintaining current payment levels to shorten the loan term, lowering payments, or front-loading payments to maximize interest savings and free up future capacity for capital improvements.
- Decision: The Authority ✅ Approved a resolution agreeing to file an application with the OWRB for financial assistance and to retain professional services for the refinancing. The specific payment option will be decided at a later meeting in late February or early March.
City Commission: Insurance Coverage for Non-Employees
The City Commission addressed the policy regarding insurance coverage for individuals other than full-time city employees and their dependents, specifically elected officials.
- Discussion Points:
- The legality of providing benefits (not compensation) to elected officials was affirmed by the City Attorney, citing previous opinions and state law.
- Concerns were raised about the potential for increased costs to the city's overall insurance plan due to adding more individuals, particularly older retirees, which could impact rates for all employees.
- The definition of "retired" for elected officials (state law suggests 8 years of service) and the implications for dependent coverage were also discussed.
- Motion to Form a Committee: A motion to appoint a five-member committee (three Commissioners, two staff) to research and make a recommendation on this issue ❌ Failed (2 Ayes, 5 Nays).
- Final Decision: A subsequent motion was made and ✅ Approved (6 Ayes, 1 Nay) stating that no commissioner or their family members should be allowed to be on the employees' group insurance program, now or in the future. This decision includes a provision to allow any currently enrolled individual (specifically mentioned was a commissioner's spouse) to transition off the plan through existing options like COBRA or the Affordable Care Act without immediate penalty.
City Commission: Appointment of Insurance Committee
Following the discussion on insurance coverage, the Commission attempted to appoint an insurance committee.
- Staff Nominations: Jill Smith (Finance) and Jennifer Dawson (HR/former work group chair) were nominated and agreed to serve.
- Commissioner Nominations: Mayor West Maynard, Commissioner Linda Agee, and Commissioner Keith Hall were nominated.
- Motion to Appoint Committee: A motion to appoint the committee with these individuals ❌ Failed (3 Ayes, 4 Nays).
- Second Motion: A second motion to appoint Commissioners Agee, Winterringer, and Mayor Maynard, along with Jill Smith and Jennifer Dawson, ❌ Failed due to lack of a second.
- Outcome: No insurance committee was appointed.
Agenda Summary Table
| Agenda Item | Description | Outcome |
|---|---|---|
| SMA Item 1: Resolution for OWRB Financial Assistance | Consider and take action on a resolution agreeing to file an application with the Oklahoma Water Resources Board for financial assistance to refinance certain indebtedness (Wes Watkins Reservoir debt), and approving Professional Services agreements. | ✅ Approved |
| City Commission Item 2: Insurance Coverage for Non-Employees | Discussion, consideration, and possible action to determine who, other than full-time city employees and their dependents, should be covered by the city's insurance plan, eligibility for life, vision, and dental plans, defining retirement for non-employees, and determining available retirement benefits. | ✅ Approved (Motion to exclude commissioners/families from employee insurance) |
| City Commission Item 1: Appoint Insurance Committee | Discussion and consideration of appointing an insurance committee consisting of three Commissioners and two staff members. | ❌ Denied (Motion to appoint specific members failed) |