December 7, 2011 City Commission Meeting

Announcements

• 📅 A special meeting of the Shawnee Municipal Authority has been scheduled for Thursday, December 8th at 7:30 AM to finalize the Sales Tax Revenue Notes.

Key Decisions & Votes

• Shawnee Municipal Authority (SMA) Sales Tax Revenue Notes: The Board approved a resolution for the SMA to issue Sales Tax Revenue Notes.
  • Series 2011 A (Tax-Exempt): $1,480,000 (reduced from the initial $1,885,000 proposal).
  • Series 2011 B (Taxable): $2,365,000 (increased from the initial $1,960,000 proposal, matching the higher alternative bid).
  • The total borrowing amount remains $3,845,000, with funds reallocated to prioritize Expo Center projects.
  • The purchaser for both obligations is JP Morgan Chase, which offered favorable rates (1.55% for tax-exempt, 2.45% for taxable).
  • An emergency clause for the resolution was also approved.
• Water/Sewer Master Plan Negotiation: Staff was approved to negotiate a contract with Smith Roberts Baldis & Co. for a comprehensive Water and Sewer Master Plan. This plan aims to evaluate all plants, hydraulic models of water and sewer lines, and lift stations to ensure cost-effective upgrades and replacements.
• MacArthur Street Decorative Lighting Proposal: A proposal from OG&E to install 26 decorative, 30-foot fluted teardrop lights on MacArthur Street (from Leo Street to Kickapoo) was approved. The upfront cost is $88,600 for materials and installation, with a monthly electricity charge of $600. Existing lights will be replaced, and all new lines will be underground.
• Half-Cent Sales Tax Ordinance (Ordinance 2463): An ordinance proposing a new one-half of one percent city excise (sales) tax for capital improvements was approved to be placed on the ballot for voter consideration. This tax, if approved by voters, would be for a 10-year term and is expected to fund approximately $2.5 million for the Expo Center and $19 million for a regional park.
• Special Election Ordinance (Ordinance 2464): An ordinance authorizing a special election on 📅 February 14, 2012, was approved. This election will include five propositions for voters:
  • The half-cent sales tax (Ordinance 2463).
  • Three propositions under Article 10, Section 27 of the Oklahoma Constitution:
    • Swimming pool facilities at Woodland Veterans Park.
    • $3 million for public safety communication systems.
    • $13 million for street improvements (including right-of-way, utility relocation, widening, sidewalks, curb/gutter, signalization, lighting, landscaping).
  • A fifth proposition under Article 10, Section 35 for general obligation limited tax bonds:
    • $1 million for sidewalks.
    • $1 million for neighborhood revitalization.
    • $5 million for economic development.
• Charter Amendment Ordinance (Ordinance 2465): An ordinance amending sections 4 and 6 of Article 3 of the City Charter, related to the terms of City Commissioners and the election of the Vice Mayor, was approved. This aims to align terms with election dates and set the time for Vice Mayor election.
• Special Election Resolution for Charter Amendments (Resolution 6417): A resolution calling for a special election to adopt the charter amendment ordinance was approved. This will be a separate ballot from the sales tax and bond propositions.
• Expo Parking Lot Improvement Bid Award: The bid from CCG LLC for the Expo Parking Lot Improvement (COSPW-11-04) was approved.
  • Base Bid: $1,399,900
  • Add Alternate (concrete replacement): $296,950
  • Total Award: $1,696,850 ✅. Staff recommended approval, citing good references for CCG LLC.

Financial Matters 💰

• The primary financial discussion revolved around the Sales Tax Revenue Notes for the Shawnee Municipal Authority, totaling $3,845,000. This includes a tax-exempt portion of $1,480,000 and a taxable portion of $2,365,000, both secured at favorable interest rates from JP Morgan Chase. The reallocation of funds aimed to fully fund critical Expo Center projects.
• The proposed half-cent sales tax (Ordinance 2463) and $26 million in general obligation bonds (Ordinance 2464) are significant financial proposals that will go before voters in February 2012. These are earmarked for capital improvements, including the Expo Center, a regional park, public safety communications, streets, sidewalks, neighborhood revitalization, and economic development.
• The OG&E lighting proposal for MacArthur Street involves an $88,600 upfront cost and a $600 monthly charge, to be funded from the 302 Street Fund.

Public Comments

• Tourism Advisory Council: A citizen expressed concern about potential changes to the Tourism Advisory Council, emphasizing the importance of input from hotel operators. The speaker highlighted the current system's effectiveness, consistent improvement, and demonstrable results, suggesting it is one of the few city functions that works well.
• Support for Ballot Proposals: Another citizen voiced strong support for the Mayor and Commissioners regarding the upcoming ballot proposals. The speaker praised the commission's openness, dialogue, and compromise, specifically noting increased street funding, removal of a new police station from immediate consideration, and commitment to youth and family park facilities. The speaker also acknowledged adjustments to pool plans to include a splash park.

Other Discussions & Administrative Reports

• Employee Recognition: The City Manager presented Oklahoma Municipal League certificates to eight employees with 25 or more years of service, totaling 200 years of combined service to the city.
• Business Licensing: The Commission discussed the possibility of implementing a general business licensing requirement to ensure sales tax collection and code compliance. Staff was directed to conduct further research and draft an ordinance for future consideration, with an emphasis on keeping fees minimal and an effective date around July 1, 2012, to allow for preparation.
• Economic Development & Tourism Committee: A three-member committee was formed to work with staff on examining economic development and tourism options. Commissioners Herrod, Sims, and Stevens volunteered to serve on this committee, which aims to quickly gather information and make recommendations to the full commission.
• Yield Study (Water): Staff reported that the yield study, conducted by CDM, is expected by 📅 December 15th. While the study indicates sufficient water supply until 2060, staff expressed concern that the contractor is not including a crucial drought management plan as part of the scope, which staff believes is essential.
• Economic Impact Study (Park): An economic impact study on the proposed park, being conducted by an OSU professor, is nearing completion.
• Commissioner Conflict of Interest: The City Attorney clarified that Article 16, Section 1 of the City Charter already prohibits commissioners from holding any other compensated public office or employment with the city during their term and for one year after.

Agenda Summary Table

| Agenda Item * Shawnee Municipal Authority (SMA) Recess: The Board of City Commissioners recessed to convene the Shawnee Municipal Authority. ✅ Approved

• SMA Sales Tax Revenue Notes (Series 2011 A & B): Resolution authorizing the SMA to issue Sales Tax Revenue Note Series 2011 A for $1,480,000 (tax-exempt) and Sales Tax Revenue Note Taxable Series 2011 B for $2,365,000 (taxable) to JP Morgan Chase. This included waiving competitive bidding and approving related agreements. ✅ Approved
• Reconvening Board of City Commissioners: The Board of City Commissioners reconvened. ✅ Approved
• Consent Agenda (City Commissioners): Approval of the consent agenda, with item 4f pulled for separate discussion. ✅ Approved (excluding 4f)
• Item 4f: Water/Sewer Master Plan Negotiation: Staff directed to negotiate a contract with Smith Roberts Baldis & Co. for a comprehensive Water and Sewer Master Plan. ✅ Approved
• OG&E Lighting Proposal for MacArthur Street: Proposal to install 26 decorative lights on MacArthur Street from Leo Street to Kickapoo for an upfront cost of $88,600 and a $600 monthly charge. ✅ Approved
• Business Licensing Discussion: Discussion on creating a general business licensing requirement. Staff was directed to conduct further research and draft an ordinance for future consideration, focusing on minimal fees and a July 1, 2012, effective date. ➡️ Deferred for further research and ordinance drafting
• Economic Development & Tourism Committee: Creation of a three-member commission committee (Commissioners Herrod, Sims, and Stevens) to work with staff on examining economic development and tourism options. ✅ Approved
• Ordinance 2463 (Half-Cent Sales Tax): Ordinance relating to the imposition of a one-half of one percent city excise (sales) tax for capital improvements, to be put to a public vote. ✅ Approved
• Ordinance 2464 (Special Election Call): Ordinance authorizing a special election on 📅 February 14, 2012, for the sales tax and bond propositions. ✅ Approved
• Ordinance 2465 (Charter Amendment): Ordinance amending sections 4 and 6 of Article 3 of the City Charter regarding commissioner terms and vice mayor election. ✅ Approved
• Resolution 6417 (Charter Election Call): Resolution calling for a special election to adopt the charter amendment ordinance. ✅ Approved
• Bids for Dean Weigant Park Playground Unit: Bids received for a new playground unit. ➡️ Deferred for staff review
• Bids for Truck-Mounted CCTV Inspection System: Bids received for a sewer camera system. ➡️ Deferred for staff review
• Bids for Expo Parking Lot Improvement (COSPW-11-04): Award of bid to CCG LLC for the base bid ($1,399,900) and add alternate ($296,950), totaling $1,696,850. ✅ Approved
• SMA Consent Agenda: Approval of the Shawnee Municipal Authority consent agenda. ✅ Approved
• Shawnee Airport Authority Consent Agenda: Approval of the Shawnee Airport Authority consent agenda. ✅ Approved

Financial Matters 💰

• Sales Tax Revenue Notes: The Shawnee Municipal Authority approved issuing $3,845,000 in Sales Tax Revenue Notes (Series 2011 A & B) from JP Morgan Chase. This includes $1,480,000 (tax-exempt) and $2,365,000 (taxable) to fund various projects, primarily at the Expo Center, and to refinance existing debt. The interest rates secured were 1.55% for the tax-exempt portion and 2.45% for the taxable portion.
• Proposed Half-Cent Sales Tax: Ordinance 2463 was approved to be placed on the 📅 February 14, 2012, ballot. This one-half of one percent sales tax, if approved by voters, would be for a 10-year term and is projected to generate approximately $2.5 million for the Expo Center and $19 million for a regional park.
• Proposed General Obligation Bonds: Ordinance 2464 was approved to place bond propositions totaling $26 million on the 📅 February 14, 2012, ballot. These bonds would fund:
  • $19 million for pool facilities at Woodland Veterans Park, public safety communication systems, and street improvements.
  • $7 million for economic and community development, including sidewalks, neighborhood redevelopment, and economic development programs.
• MacArthur Street Lighting: The $88,600 upfront cost for decorative lighting on MacArthur Street will be funded from the 302 Street Fund, with a $600 monthly electricity charge.
• Expo Parking Lot Improvement: The bid award for $1,696,850 to CCG LLC for the Expo Parking Lot Improvement will be funded through the recently approved Sales Tax Revenue Notes.

Public Comments

• A citizen expressed concerns regarding potential changes to the Tourism Advisory Council, urging the Commission to seek input from hotel operators. The speaker highlighted the council's consistent success and positive impact on hotel room nights and revenue, suggesting that the current system is effective and should not be altered without careful consideration.
• Another citizen spoke in strong support of the Mayor and Commissioners' efforts in developing the ballot proposals for the upcoming election. The speaker commended the Commission's openness, willingness to engage in dialogue, and ability to compromise, citing increased street funding and the removal of a new police station from immediate consideration as examples. The speaker particularly praised the commitment to funding a youth and family park facility and the inclusion of a splash park in pool plans.

Agenda Summary Table

| Agenda Item