Meeting Recap: November 18, 2013

Note: Items of discussion in this recap includes a link indexed to that portion of the City Council meeting replay. Click on bold headers that are linked to view that portion of the video.

(STILLWATER, OKLA. / Posted Nov. 20, 2013) - The Stillwater City Council met for its regular meeting Monday, Nov. 18, 2013. (View the meeting agenda here)

NOTE: Councilors Gina Noble and Cody Scott were not present at the meeting.

Pledge of Allegiance
a. Presented by Stillwater Middle School student Caroline Henry.

Proclamations & Presentations
a. NOC/OSU Gateway Program Day-November 18, 2013 

View photos

Consent Docket
a. Approval of minutes: Regular meeting, Nov. 4, 2013.
b. 2014 schedule of regular meetings.
c. General utility easements and utility and drainage easement from West Oak Properties, LLC for property located at 615 S. Country Club Road (CC-13-100).
d. Warranty deed and water line easement for property addressed as 3314 S. Perkins Road.
e. Authorize city manager to execute release of lien for property described as Lot 29, Lot 25, Lot 23 and Lot 19 in the Hunter's Ridge Addition.

Councilor Joe Weaver asked to remove item 'B' from the Consent Docket for additional information. 

Council approved Consent Docket excluding item 'B' 3-0.

Items Removed From Consent Docket
Councilor Weaver requested Consent Docket item 'B' be moved to the Dec. 2 Council meeting to give the item adequate review and to compare it with his other schedules.

Council moved to table Consent Docket item 'B' to the Dec. 2 meeting 3-0.

Public Hearings

a. Receive public comments regarding a proposed text amendment to the Chapter 23, Land Development Code to amend Article VIII, Parking and Loading Standards (Continued from November 4, 2013) (CC-13-99)

City Manager Dan Galloway noted that Public Hearing item 'A' and General Orders items 'B' and 'C' are components in implementing the parking study plan. Galloway requested the Council table the listed items subject to call and suggested a public session for a presentation  to the Council on the entire parking study.

City Attorney John Dorman said the Council could table the item(s) subject to call by issuing new notice on the Public Hearings item.

Councilor Weaver said he would like to hear a comprehensive review of the whole plan and he hopes the presentation on the plan will be shown soon. 

Council moved to table Public Hearings item 'A' subject to call 3-0.

General Orders
a. Financial reports (CC-13-101)

City Chief Financial Officer Marcy Lamb presented the first quarter financial results for the current fiscal year to the Council.

b. Consider amendment to Chapter 29 Motor Vehicles and Traffic to clarify that parking in a bicycle lane, on a sidewalk or in any other designated travel area is prohibited and to identify the areas where transit buses and taxicabs may load/unload and exemption of City service vehicles from parking/loading/unloading requirements (CC-13-98)

City Manager Galloway requested again that Council remove General Orders item 'B' from the agenda and that the item will be placed back on an agenda at a later meeting in relation with Public Hearings item 'A.'

c. Consider amendment to Chapter 29 Motor Vehicles and Traffic to increase the fines for parking violations within the City of Stillwater (CC-13-102)

City Manager Galloway requested again that Council remove General Orders item 'C' from the agenda and that the item will be placed back on an agenda at a later meeting in relation with Public Hearings item 'A.'

d. Authorize City Attorney to prepare a fifty-year land lease for 3.87 acres located at 999 W. Twelfth Ave. to the Stillwater Medical Center to be used for hospital related purposes and authorize the mayor to sign and execute the lease.

City Manager Galloway said the City has been approached by Stillwater Medical Center about the use of the land which is located south of property the hospital acquired on Twelfth Avenue. Galloway said the land would be used to help the hospital build a warm water therapy pool facility. The lease is not a monetary arrangement. Galloway recommended the Council authorize the City Attorney to prepare a lease for the City's property for hospital use for the next fifty years. Galloway said he thinks it is a good use of the property and that the City has no planned use for the land. 

Council approved General Orders item 'D' 3-0.

Ordinances
First Reading
None

Second Reading
a. Ordinance No. 3243: On ordinance rezoning a tract of land located at 1400 North Boomer Road from CG, Commercial General District, and RTM, Residential Two-Family and Multi-Family District, to RMI-PUD, Residential Multi-Family Intermediate Planned Unit Development.

Council approved 3-0.

Reports from Officers and Boards

Mayor John Bartley - Welcomed representatives from Stillwater Leadership Class XXII. The mayor also wished everyone a happy Thanksgiving.

Upcoming Meetings - Mayor Bartley requested speed on preparing the presentation for the parking study plan.

City Council is adjourned; SUA is called to order.

Consent Docket
a. Approval of minutes: Regular Meeting, Nov. 4, 2013.
b. 2014 schedule of regular meetings.
c. Water purchase agreement with 3314 S. Perkins Road LLC, referred to as the South Gate Mobile Home Park (SUA-13-40).

Trustee Weaver requested approval of Consent Docket excluding item 'B.'

Trustees approved Consent Docket excluding item 'B' 3-0.
  
SUA is adjourned; SEDA is called to order.

Consent Docket 
a. 2014 Schedule of Meetings
b. Regular Meeting Minutes: Sept. 16, 2013

Councilor Weaver requested approval of Consent Docket excluding item 'A.'

Council approved Consent Docket item 'B' 3-0.

General Orders
a. 2013-14 Economic Development contract renewal between the Stillwater Economic Development Authority and Stillwater Chamber of Commerce.

City Manager Galloway said that since July 1, the Chamber of Commerce has been required to provide the same services outlined in the 2012-13 contract. Galloway said he worked with Chamber CEO Lisa Navrkal on the new contract and they decided to leave it as is for the remainder of the year. Galloway recommended the Council approve the renewal the contract for 2013-14.

Councilor Weaver expressed his appreciation to Navrkal and the Chamber for the great work they have done for Stillwater.

Council approved City Manager's recommendation 3-0.

SEDA is adjourned. 

END

Recap by Meagan Kascsak, Marketing and Public Relations.

*****

Next City Council meeting is Dec. 2, 2013, beginning at 5:30 p.m. This meeting will be televised.  Click here for agendas. 

Watch the City Council Meetings:  Videos of Stillwater City Council meetings are made available on the City of Stillwater's YouTube.com channel within five days of the meeting. You can watch the meetings live on City of Stillwater Television (Suddenlink channel 23 and AT&T U-verse channel 99).

Visit the City of Stillwater's Economic Development webpage.

Meeting Recap: November 4, 2013

Note: Items of discussion in this recap includes a link indexed to that portion of the City Council meeting replay. Click on bold headers that are linked to view that portion of the video.

(STILLWATER, OKLA. / Posted Nov. 7, 2013) - The Stillwater City Council met for its regular meeting Monday, Nov. 4, 2013. (View the meeting agenda here

NOTE: Councilor Cody Scott was not present at the meeting.

Pledge of Allegiance
a. Presented by Stillwater Middle School student Reece Glasson.

View photos

Consent Docket
a. Approval of minutes: Regular meeting, Oct. 21, 2013
b. Lease purchase agreements for water and sanitary sewer line improvements constructed to serve the 1500 Block of South Ransom Drive (CC-13-99)
c. Right-of-way agreement to place balconies, roofs and support structures in the east side of the right-of-way at 709 and 711 S. Main St. (CC-13-98)
d. Bid recommendation for the Pavement Management Project 14TR01-C Mill and Overlay of City Streets (CC-13-100)

Vice Mayor Chuck Hopkins asked to remove item 'C' from the Consent Docket for additional information. 

Council approved Consent Docket excluding item 'C' 4-0.

Items Removed From Consent Docket
Development Services Director Paula Dennison explained the reasoning of Consent Docket item 'C' in depth to the Council. Dennison said anytime there is private use of a public way, it comes to the City Council for approval. Dennison said this particular request is for the overhanging of New Orleans-styled balconies that will be supported by posts from the installed on the sidewalk. 

Council approved Consent Docket item 'C' 4-0.

Public Hearings

a. Receive public comments regarding a proposed text amendment to the Chapter 23, Land Development Code to amend Article VIII, Parking and Loading Standards (See memo to postpone)

Dennison requested the public hearing for the item be postponed for the next City Council meeting on Nov. 18, 2013.

Council moved to postpone Public Hearing 'A' to Nov. 18 4-0.

b. Receive public comments regarding a proposed text amendment to Chapter 23, Land Development Code to Commercial Use by Right Contents of Application-Site Plan; Preliminary Plat Requirements; and Drainage Studies and Plans Requirements (CC-13--96)

Dennison said Public Hearings items 'B' and 'C' were requested by the development community and that staff has evaluated and review the request. Dennison said when the Land Development Code was adopted in 2008, there was a requirement for the designer to look outside of the property within a certain distance to see what systems the development proposal will be connecting to when developing an individual piece of property. This requirement was found in the Commercial Use by Rights, Preliminary Plat and Drainage Studies and Plans sections. The request was to reduce the distance of the requirement. 

Planning Commission recommended the Council approve the proposed text amendment as presented 6-0. 

Council approved Planning Commission recommendation 4-0.

c. Receive public comments regarding a proposed text amendment to the Land Development Code, Chapter 23, Section 23-358, Sanitary Sewer Collection System (CC-13-97)

Dennison said the amendment proposes allowing another alternative to sewage disposal within the City of Stillwater. At present, the City sanitary sewer is the requirement and septic tanks are permitted under certain conditions such as inability to connect to the sanitary sewer. The proposed text amendment allows the utilization of closed package systems on individual lots which will encourage redevelopment. Subdivisions of land will still be required to connect to the sanitary sewer if the connection point is withing 300 feet and if it can gravity from the subdivision to the existing main. Dennison noted the minimum lot size for closed package systems with public water is 22,000 square feet (one-half of an acre) and without public water is 32,000 square feet (three-fourths of an acre). Dennison said the proposal increases the minimum lot size for septic tanks to five acres. 

Mayor John Bartley asked for clarification on the term "package system." Dennison said it is similar to a septic system. The discharge of water will be through drip irrigation or spray mechanism which sprays the water after it has been treated in the underground closed package system.

Planning Commission recommended the Council approve the proposed text amendment as presented 6-0.

Council approved Planning Commission recommendation 4-0.

Resolutions
a. Resolution CC-2013-19: A resolution approving the assignment and transfer of the franchise previously granted to Oklahoma Natural Gas Company and the distribution system installed, operated and maintained thereunder.

City Manager Dan Galloway said the Oklahoma Natural Gas Company (ONG) was a division of ONEOK when the franchise was granted. All of the operations conducted under ONG will now be conducted as One Gas Inc. ONG has asked that this franchise be assigned to One Gas Inc. Galloway said nothing will change in the service and is only a change in company ownership and requested approval of the resolution. 

Council approved 4-0.


b. Resolution CC-2013-20: A resolution correcting a scrivener's error in Resolution No. CC-2013-15 authorizing the calling and holding of an election in the City of Stillwater, Oklahoma.

City Attorney John Dorman said the error was a typo in the resolution. The original resolution read "southeast" when referring to the purposes when it was meant to read "southwest." Dorman said the error was corrected in the notices and has no affect on the election whatsoever. 

Council approved 4-0.

c. Resolution CC-2013-21: A resolution confirming acceptance of small community air service development program grant, docket number DOT-SOT-2013-0120, from the United States Department of Transportation and authorizing the mayor or vice mayor of the City of Stillwater, Oklahoma, to sign all certifications and other necessary documents relating to said grant.

City Manager Galloway said the grant will be held for up to two years. Should the City come into an agreement for commercial air traffic, the grant can be applied to the cost for modifications and preparations to the airport for that service. Galloway recommended the Council accept the federal grant.

Council approved 4-0.

Ordinances
First Reading
a. Ordinance No. 3243: On ordinance rezoning a tract of land located at 1400 North Boomer Road from CG, Commercial General District, and RTM, Residential Two-Family and Multi-Family District, to RMI-PUD, Residential Multi-Family Intermediate Planned Unit Development.

Council approved 4-0.

Second Reading
a. Ordinance No. 3241: An ordinance rezoning a tract of land located at 424 E. Thomas Ave. from IL, Light Industrial District, to CG, Commercial General District.

Council approved 4-0.

b. Ordinance No. 3242: An ordinance closing a 40-foot portion of the right-of-way of Boomer Road at property addressed as 1400 N. Boomer Road.

Council approved 4-0.

Reports from Officers and Boards

City Manager Galloway - Said he appreciated City Attorney Dorman's correction in the proposition resolution and reassured anyone who may have been confused that there is nothing in the proposed bond issue that would construct anything on the east side of Boomer Lake.

Mayor John Bartley - Reminded viewers that Vice Mayor Hopkins would be on KSPI 780 AM at 8:15 a.m. Tuesday, Nov. 5, and Councilor Joe Weaver would be on the station Tuesday, Nov. 12. Mayor Bartley noted he would be on Triple Play Radio Wednesday, Nov. 6.

City Council is adjourned; SUA is called to order.

Consent Docket
a. Approval of minutes: Regular Meeting, Oct. 21, 2013
b. Lease purchase agreements for water and sanitary sewer line improvements constructed to serve the 1500 Block of South Ransom Drive (SUA-13-38)
c. Professional services agreement with Myers Engineering for construction inspection for the West College Sewer Replacement Project (SUA-13-39)

Trustees approved Consent Docket 4-0.

Request for Executive Session
a. Request for an Executive Session pursuant to 25 O.S. 307 (B)(3) for the purpose of confidential communication regarding the purchase or appraisal of real property.

Trustees approved request 4-0. 

Executive Session
a. Confidential communication regarding the purchase or appraisal of real property.

Return from Executive Session
a. Possible action regarding the purchase or appraisal of real property.

No action was taken.
  
SUA adjourned. 

END

Recap by Meagan Kascsak, Marketing and Public Relations.

*****

Next City Council meeting is Nov. 18, 2013, beginning at 5:30 p.m. This meeting will be televised.  Click here for agendas. 

Watch the City Council Meetings:  Videos of Stillwater City Council meetings are made available on the City of Stillwater's YouTube.com channel within five days of the meeting. You can watch the meetings live on City of Stillwater Television (Suddenlink channel 23 and AT&T U-verse channel 99).

Visit the City of Stillwater's Economic Development webpage.

Meeting Recap: October 21, 2013

Note: Items of discussion in this recap includes a link indexed to that portion of the City Council meeting replay. Click on bold headers that are linked to view that portion of the video.

(STILLWATER, OKLA. / Posted Oct. 22, 2013) - The Stillwater City Council met for its regular meeting Monday, Oct. 21, 2013. (View the meeting agenda here)



NOTE: Councilor Cody Scott was not present at the start of the meeting.

Pledge of Allegiance
a. Presented by Skyline Elementary School students Avery Snethen and Teegin Crosthwait.

View photos

Consent Docket
a. Approval of minutes: Regular meeting, Oct. 7, 2013
b. Sheerar Museum quarterly report
c. Budget amendment appropriating donated funds for Parks & Recreation
d. Budget amendment appropriating accumulated Parks & Recreation Arts Festival funds for use in future arts and heritage events
e. Consider application for disability retirement for Raymond Petties

Council approved Consent Docket 4-0.

Public Hearings

a. Receive public comments regarding a request from Progress Builders for a map amendment for a preliminary planned unit development at 1400 N. Boomer Road (Postponed from Sept. 5, 2013, Sept. 16, 2013 and Oct. 7, 2013) (CC-13-93)

Paula Dennison, Development Services, presented the map amendment request to the Council. Dennison said one of the reasons the proposal was for a planned unit development (PUD) designation was because the property is adjacent to residential neighborhoods and the designation would help build a guaranteed comfort level to the adjacent single-family residences. The request is also asking for height differences in excess of what is allowed in the underlying zoning. Dennison also said the developers have chosen to build a parking garage on site to help keep the parking spaces out of the floodway. 

Staff findings show the PUD appears to be consistent with the Comprehensive Plan, the development intensity is less than allowed in the RMI district, floodway and flood hazard areas are located on the property, a preliminary drainage study has been submitted, reviewed and accepted by staff and a traffic impact analysis is required to be submitted before development.

Councilor Joe Weaver asked if Dennison knew how tall the Stillwater High School football stadium was. The stadium sits across the street from the planned development. Dennison said she did not know what the height was off the top of her head but that the parking garage on the new Hester Street apartments was 72 feet. 

Vice Mayor Chuck Hopkins asked if it was only the development's elevator shafts that required the height variance. Dennison said the PUD would cover any type of height difference variance there may be on the development and that the plan will act as a guarantee of what will be built on the property.

Mayor John Bartley asked if the only violation of the underlying zoning standard that is being requested is the height. Dennison confirmed the mayor's understanding.

Kelly Harris (Keystone Engineering), Larry Brown (CStar Real Estate) and Brett Callahan (Progress Builders) spoke in favor of the request. Jean Barrett spoke in opposition toward the request.

Dennison said the Planning Commission did recommend the Council approve the request with additional changes which were reflected in the reports sent to Council and made by the applicants. 

Dennison then began to address the questions presented by Ms. Barrett. First, Dennison informed the Council that Moore Street would be restricted to emergency access only. On the drainage concern, Dennison said the storage of stormwater is going to be detained in underground pipes and then released directly into the creek. Dennison said Ms. Harris and the developer have already been in contact with Development Services and utility staff about where the best sewer line connection point and sewer basin is for the particular development. Dennison said this conversation is still in preliminary investigation at this time.

Councilor Weaver asked if Dennison remembered how many units comprised the current development on the property in discussion. Dennison deferred the question to Ms. Harris who informed the councilor that the existing apartments have 68 units and 110 beds.

Mayor Bartley asked for confimation that all other requirements under RMI were met for the request and that the only difference is the height. Dennison confirmed the mayor's inquiry.

Mayor Bartley then asked what the proper motion would be to ensure the three requirements outlined by Planning Commission are a part of any action approved by City Council. City Attorney John Dorman said the motion would be to approve the PUD with the additional requirements imposed by the Planning Commission.

NOTE: Councilor Scott arrived and was present for the rest of the Council meeting.

Council approved Planning Commission recommendation with additional changes 5-0.

Ordinances

a. (first reading)
i) Ordinance No. 3241: An ordinance rezoning a tract of land located at 424 E. Thomas Ave. from IL, Light Industrial District, to CG, Commercial General District.

Council approved 5-0.

ii) Ordinance No. 3242: An ordinance closing a 40-foot portion of the right-of-way of Boomer Road at property addressed as 1400 N. Boomer Road.

Council approved 5-0.

b. (second reading)

NONE

Reports from Officers and Boards
Mayor Bartley - Welcomed Boy Scouts Troop No.802 to the Council meeting.

Appointments
a. Rural Water Advisory Board

Mayor Bartley nominated Rowley Jobes and Robert Sitton for reappointment. Councilor Weaver seconded the motion.

Council approved nominations 5-0.
 
b. Business Improvement District #1 Advisory Board

Mayor Bartley nominated Susie Presley, Kyle Gibbs, Katrina Jarvis and Jim McCollum for reappointment. Vice Mayor Hopkins seconded the motion.

Council approved nominations 5-0.

Mayor Bartley nominated Joyce Meyer to fill the empty seat No. 8 on the Business Improvement District #1 Advisory Board. Councilor Weaver seconded the motion.

Council approved nomination 5-0.

City Council is adjourned; SUA is called to order.

Consent Docket
a. Approval of minutes: Regular Meeting, Oct. 7, 2013
b. Bid recommendation for purchase of influent screening equipment at the wastewater treatement plant (SUA-13-38)
c. Amendment to the Professional Services Agreement with Guernsey for miscellaneous improvements at three water storage tank sites (SUA-13-37)

Trustees approved 5-0.

SUA adjourned. 

END

Recap by Meagan Kascsak, Marketing and Public Relations.

*****

Next City Council meeting is Nov. 4, 2013, beginning at 5:30 p.m. This meeting will be televised.  Click here for agendas. 

Watch the City Council Meetings:  Videos of Stillwater City Council meetings are made available on the City of Stillwater's YouTube.com channel within five days of the meeting. You can watch the meetings live on City of Stillwater Television (Suddenlink channel 23 and AT&T U-verse channel 99).

Visit the City of Stillwater's Economic Development webpage.

Meeting Recap: October 7, 2013

Note: Items of discussion in this recap includes a link indexed to that portion of the City Council meeting replay. Click on bold headers that are linked to view that portion of the video.

(STILLWATER, OKLA. / Posted Oct. 9, 2013) - The Stillwater City Council met for its regular meeting Monday, Oct. 7, 2013. (View the meeting agenda here)

Pledge of Allegiance
a. Presented by Skyline Elementary School students Mackenzie Martin (Parents: Ashleigh and Jesse Martin) and Hayden Hebbert (Parents: Rachel and Delton Hebbert).

Proclamations & Presentations
a. Fire Prevention Week

b. 27th Annual Public Power Week (View Photos)

(View Proclamation/Pledge Photos)

Consent Docket
a. Approval of minutes: Regular meeting, Sept. 16, 2013; Special Meeting, Sept. 23, 2013
b. Bid recommendation and budget amendment for the Public Library roofing project (CC-13-92)
c. Bid recommendation for the Pavement Management System Project 14TR01-B Thin Surface Overlays (CC-13-80)
d. Accept the 2013 Small Cities Set-Aside Program contract #15655 CDBG 13 and authorize the Mayor to sign the contract documents (CC-13-85)
e. Accept the FEMA Safe Room Shelter Grant and establish accounts for revenue and expenditures (CC-13-86)
f. Accept pedestrian easement at 2505 N. Perkins Road (CC-13-81)
g. Lease assignment from Hanger 1 Flight Center, LLC to Lynrho, LLC dba Hangar 1 Flight Center of Stillwater at Stillwater Regional Airport (CC-13-89)
h. Lease extension for Lynrho, LLC dba Hangar 1 Flight Center of Stillwater at Stillwater Regional Airport (CC-13-90)
i. Supplemental Agreement No. 3 with TTK Construction relating to final closeout of the South Parallel Taxiway Project at Stillwater Regional Airport (CC-13-91)
j. Sole source purchase of a 2014 Gradall Hydraulic Excavator, Model XL 3100 IV, 4X4 from Kirby Smith Machinery Inc. for a total price of $324,915 (CC-13-84)
k. Right-of-way agreement with Red Fork Energy granting a 30 foot right-of-way/easement at Lake McMurtry (CC-13-87)
l. Purchase agreement: land and easement for construction of a booster pump station to be located at 3314 S. Perkins Road

Council approved Consent Docket 5-0.

Public Hearings

a. Receive public comments regarding a request from Progress Builders for a map amendment for a preliminary planned unit development at 1400 N. Boomer Road (Postponed from Sept. 5, 2013 and Sept. 16, 2013) (See memo to postpone to Oct. 21, 2013)

Council moved to approve postponement 5-0.

b. Receive public comments regarding a request to close a portion of the right-of-way at 1400 N. Boomer Road (CC-13-82)

Patty Evans, Development Services, presented the plans for the request to close a portion of the right-of-way. Evans said the closure of 40 feet is necessary for a new proposed multi-family development and will align the right-of-way with the rest of the right-of-way along Boomer Road. Evans said the applicant does propose to add a private access easement to Domino's Pizza to maintain the business's driveway access. The applicant has also indicated it will relocate an Oklahoma Natural Gas (ONG) gas line.

Kelly Harris, Keystone Engineering, spoke on behalf of the developers in favor of the closure.

Staff recommended the Council approve the request to close the 40 feet of right-of-way at the stated address.

Council approved staff recommendation 5-0.

c. Receive public comments regarding a request for a Map Amendment to rezone property addressed as 424 E. Thomas Ave. from IL (Light Industrial) to CG (General Commercial) (CC-13-83)

Evans presented the proposed Map Amendment to the Council. Evans said the amendment to General Commercial was to allow healthcare uses on the property and that the Comprehensive Plan does support commercial uses for the property.  

Planning Commission recommended the Council approve the request as presented.

Council approved Planning Commission recommendation 5-0.

Resolutions
a. Resolution CC-2013-18: A resolution adopting an amendment to the trust indenture pursuant to which the authority was created by establishing an additional exception to a limitation on the amount of indebtedness the authority can incur.

City Attorney John Dorman asked the Council to address Resolutions item 'a' after it convened from the Stillwater Utilities Authority meeting.  

Ordinances

a. (first reading)
NONE

b. (second reading)

i) Ordinance No. 3240: An ordinance authorizing the sale of a certain parcel of property located at 4220 N. Perkins Road; providing for citizen initiated referendum of said sale in accordance with section 4-2 of the city charter.

City Attorney Dorman asked the Council to address Ordinance No. 3240 at its regular meeting on Oct. 21 to allow staff time to finish negotiating a few fine points to the agreement. 

Reports from Officers and Boards
City Attorney Dorman - Request for an Executive Session pursuant to 25 O.S. 307 (B)(4) for the purpose of confidential communication with the City Attorney regarding pending litigation, Thomas Wise v. City of Stillwater; Case Number CJ-2013-460; District Court of Payne County. It is the opinion of the City Attorney that public disclosure of this matter will seriously impair the ability of the City Council to prosecute/defend this pending litigation or proceeding in the public interest.

Councilor Joe Weaver - Asked if it was possible to move Stillwater Economic Development Authority meetings to a Monday schedule to reduce cancellation of meetings. 

City Manager Dan Galloway said they have already taken steps to change the meetings to Mondays. Galloway said they will continue to cancel the scheduled SEDA meetings on Tuesdays and move them to Monday nights for the rest of the year and that the City will resolve the issue formally when it adopts its 2014 meeting schedule. Galloway said they do not anticipate any more Tuesday afternoon meetings.

Mayor John Bartley - Reminded viewers that Vice Mayor Chuck Hopkins would be on KSPI Radio (780 AM) at 8:15 a.m. on Oct. 8 and that Councilor Weaver would be on the radio Oct. 15. Mayor Bartley also encouraged residents to be informed about the election initiative on Nov. 12, 2013.

Councilor Weaver - Asked where the Council was on the vehicle report.

City Manager Galloway said the Operations Group has continued to work on the report and that the inventory is completed. Galloway said they were going to include it at a special session but they have not had one open for it yet. Galloway said they felt they needed to place it with another item at a special session and they did not feel it was justified to have its own special meeting. Galloway said it would probably be added to a special meeting in the next 30 days.

City Council is recessed; SUA is called to order.

Consent Docket
a. Approval of minutes: Regular Meeting, Sept. 16, 2013
b. Purchase agreement: land and easement for construction of a booster pump station to be located at 3314 S. Perkins Road
c. Amendment to the professional services agreement for the Western Road Water Line Connection project #12WC05 (SUA-13-36)

Trustees approved 5-0.

General Orders
a. Rural Water Advisory Board semi-annual report

Trustees moved to accept the semi-annual report 5-0.


Resolutions
a. Resolution No. SUA-2013-5: A resolution adopting an amendment to the trust indenture pursuant to which the authority was created by establishing an additional exception to a limitation on the amount of indebtedness the authority can incur.

City Attorney Dorman briefed the Trustees on the background of the resolution. Dorman said the Trustees have directed staff in previous meetings to start preparing the SUA to issue bonds for the Southwest Water project and possibly a new power plant. Meanwhile, staff, Council and financial consultants have reviewed the trust indenture and bond documents to see if the SUA can issue such bonds. This review has determined that Article Five, Section 30 of the bond indenture contains language that requires the SUA to wait for an election that would otherwise not be required by state statute before bonds can be issued for either of the two projects. Dorman said this is a limitation that previous SUA Trustees have placed on themselves and their successors and that the consensus by those who have reviewed the indenture is that the limitation would unduly limit the ability of the SUA to participate in today's financial markets and the low threshold.

Dorman said there are three exceptions to the revision and that in the past Trustees have been able to issue bonds and notes under them. The exceptions do not apply to the above mentioned projects, however. Dorman said tonight's recommendation would create a fourth exception in Article Five which would permit the Trustees to issue bonds and notes whenever there is a super majority (four) of Trustees' votes and four members of the Council agree that such would be necessary. Dorman said the Trustees are recommended to pass the request to the trust indenture and that the amendment will require a unanimous vote of the Trustees per Article Seven of the trust indenture.

Councilor Gina Noble asked Dorman why the three exceptions do not apply to the case.

Dorman said the three exceptions are for refunding existing bonds, raising funds for project completion and the issuance of bonds and notes when they are necessary to protect the financial and physical integrity of the system when there is existing debt. Neither one of the instances apply to these requirements.

Councilor Noble reaffirmed that the vote would allow the SUA to borrow money an excess of 10 percent of the revenue the SUA receives in a year.

Dorman confirmed Councilor Noble's inquiry and restated that under the conditions of Article Five Section 30 the SUA would also have to hold an election.

Councilor Weaver asked if the 10 percent is the amount of the debt payment or the amount of the debt. 

Dorman said it was the amount of the debt issued for that year.

City Manager Galloway said with the amount the SUA can borrow now is not enough to fund the replacement of a water treatment plant or a sewer plant or the implementation of the Southwest Water project. Galloway compared it to a household making $50,000 a year and only being able to take a loan for 10 percent of that amount. Galloway said in the family would not be able to buy a good used car with that funding. Galloway said the super majority vote needed by the Trustees ensures that the trust authority does give it serious consideration.

Galloway noted that the SUA makes a profit of about $70 million a year selling utilities, meaning the authority can only take out a loan for about $7 million at this time. Galloway said to complete projects of more than $20 million such as the Southwest Water project would require at least four votes from the Trustees to grant the exemption in Article Five should the resolution pass.

Galloway confirmed with Dorman that the proposed exception mirrors state statute on trust authorities. Dorman agreed and noted that there is no state law that a trust authority has to go to a vote of the people, but the four-fifths majority is what is required in the trust act right now.

Councilor Noble asked if the SUA knows how much it needs to borrow for the noted projects. Dorman said the projects driving the discussion right now are the Southwest Water project which is about $40 million and the building of a power plant as a result of the Grand River Dam Authority (GRDA) agreement which is about $70 million. 

Mayor Bartley noted that the only project the SUA has pushed is the Southwest Water project, which exceeds in cost of funding what the SUA is allowed to borrow. Dorman confirmed.

Galloway noted that there have been some significant changes since Article Five originated. Galloway said there was not a policy or rate setting to create funded depreciation at the time the trust was written. He stated that today the SUA is fully funding depreciation in water and sewer and that there is a capital improvement fund for debt payments. Galloway also said the SUA did not have the opportunity to have a contract with GRDA in the 1970s that would make the entire debt payment service if it did bill a generated plan. Regardless of those changes, the SUA cannot fund such projects with the restrictions still put in place. Galloway said that with these revenue sources, there would be no need for an election because the people would not have increased rates. 

Dorman also made a point that when the trust indenture was done more than 30 years ago, the City Council also approved a 50-year lease agreement that financed the SUA line. He reminded Council that it recently amended the lease agreement to accommodate the GRDA contract and some other long-term agreements. Dorman said the restriction in place now is unique to Stillwater and that the proposed resolution is something that has to be done and looked at in a more modern framework than it was in 1979. 


Galloway said the vote would not authorize any debt that night, but allows the SUA the opportunity to in the future when planning projects.


Councilor Noble asked who would pay the money back should an accident occur and the City default on the loan, particularly in the case of the citizens. Dorman said it would not go back to the citizens and that the debt is secured by the assets of the SUA and at no point would be a debt of the City of Stillwater. Dorman stated that there is no way Trust debt can be imputed to the City or its citizens in the form of taxes or anything else.


Councilor Weaver reaffirmed with Dorman that by passing the resolution, it will put the Trustees in the position to issue up to $40 million worth of debt without going to a vote of appeal and that in the present structure anything that is more than the 10 percent limitation would require a vote. Dorman confirmed the councilor's question.


Mayor Bartley asked Don Kaiser about his history with and knowledge of the trust agreement. Kaiser has served as bond council on the City of Stillwater's issuance of General Obligation (GO) and revenue debt for more than 30 years. 


Kaiser agreed with Dorman that the provision is unique to the City and that he has never seen it in another indenture. Kaiser said the provision is restrictive to developing new projects. He said he thinks the trust authority was more concerned about gaining public approval of the developing Kaw pipeline project when the provision was included in the bond indenture in 1979 than with funding new projects in the future.


Councilor Noble asked if there was a reason the Trustees had to vote that night. Dorman said yes because the SUA was in the process of having ratings assigned to the power plant that week and one of the questions that came up in the presentation to the grading company was on the status of the provision. Dorman said they need to resolve it so they can give the grading company an answer.


Councilor Noble asked if they knew public opinion on the proposed resolution. Dorman said he was not contacted about the resolution but that that was not indicative of what the public opinion might be. 


Councilor Weaver addressed Mayor Bartley in agreement that the 10 percent total amount of debt in one year the SUA could take on is extremely low and that there are other measurements they it could use. Weaver said he wished this conversation could have been brought up a year ago when it would have been salient with the water issues happening then. Weaver said having the vote that night put the Trustees in an awkward situation and he would have liked to have looked at what other utility authorities had in their trust indentures. Weaver said he could not believe that they have to throw out any type of measurement to judge what a reasonable and fair amount of debt is and just lay it on the backs of whoever the Council is at that given moment in time. He stressed that this is a big decision for now and for the future and he doesn't want to make it just because they are pressed up on a deadline for a particular bond issue. He said this is something they should be thinking about over any debt and any time.


Mayor Bartley said he was frustrated by the issue and that they have been in a position "under the gun." He said it was not a fair position to be put in. Mayor Bartley suggested  they take action that night and plan on readdressing the issue. He said the trust indenture can be amended and if there is a better measurement tool to be using, then they need to be using it. 


Councilor Weaver said he does not think that it is a bad idea to let the people decide on allowing the SUA to take on $40 million in debt. He said that the SUA may have authority to make such a decision on $7 to $10 million in debt, but that the resolution was not an emergency at the moment. 


Councilor Noble said they represent the public and that she would have liked to have any public input available. Noble said they probably have not heard from the public because they resolution was put on the agenda within the week.

Councilor Cody Scott said he struggled with the decision as Councilor Noble. Scott said he does not know why it was not brought up sooner but he supports the measure on two premises. The first because it can be amended and the second because it is the job of the Trust to make a decision because the people willed it that way. Scott said he does not like the idea of taking the people out of the discussion but he does not necessarily think that happened because they were appointed by the people to make these decisions. Scott also said he is more comfortable with a super majority vote than with a vote removing the 10 percent limitation verbiage. He said the current verbiage is not practical.

Councilor Scott motioned to vote for approval of the resolution.

Vice Mayor Chuck Hopkins said the only thing they are voting on is a change in trust indenture and not to commit money to anything.

Vice Mayor Hopkins seconded the motion.

Councilor Noble restated that they were not voting about the debt being retired. Mayor Bartley confirmed her inquiry.

Trustees vote 3-2, rejecting the resolution with Trustees Weaver and Noble voting 'No.'

SUA adjourned; City Council reconvened.

Executive Session
City Attorney Dorman removed his request for executive session. 

City Council adjourned. 

END

Recap by Meagan Kascsak, Marketing and Public Relations.

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Next City Council meeting is Oct. 21, 2013, beginning at 5:30 p.m. This meeting will be televised.  Click here for agendas. 

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