Council - Special Meeting

very common and it wouldn't hurt to have a town hall or two and kind of get the community's input and put that out there and see what response you that's not as well known around here that every city in the Tulsa metro has a has a sales has a property tax for roads for bridges for storm water there's not one in the Tulsa metro doesn't have it could we could we do the adorum for some projects that we're normally going to pay out of our general fund and and then put that money toward roads. Sure. The only condition on the advalorum is that we have to buy something. We have to uh we have to own something. Whereas like for example with sales tax,

I'm paid out of sales tax. That's fine. You could not pay me out of ador. But we could say take something like sixth street and say we want to share six street and it's not a percentage like this school bond was a mill this is a flat the way this is where school this is where abalor and sales tax are are different with sales tax you say we want a sales tax for 2%. Let's just pick that at random and we want that to last 10 years. When it comes to adalorum you start with a number we want $10 million.

Okay. how long we want that to go and how many mills do we need to get there. So it's it's it's dollar amount driven, not rate or duration driven. Whereas sales tax is 2%. There we are. Whatever that generates, that's what it generates. So be thinking about that. That's something we need to address. But um good information. I want to move on to the uh bond debt since we have a special guest here. So move back on to item number one. Come on up. Good evening.

Well, I am glad that uh you had the conversations you've had in the last five minutes because I have material to address a lot of what you just talked about. Uh you talked about general obligation bonds. Um you talked about sales tax. So I have material I have a lot of comparison data between other communities and what they actually levy for sales tax. Uh give you an idea when you look at the aggregate sales tax with the county, state, and the local entities. We do this with every community we represent. Uh we lay out and kind of show you where you fall. doesn't necessarily drive what one community does versus the other because every community is different. Some communities have electric systems that are large revenue producers. So that helps out cities dramatically uh as far as uh aiding them in meeting operational needs and so forth. Uh give you a little bit of information about our firm. We're registered as a municipal advisor under the Securities and Exchange Commission. And what does a financial advisor do? That's what we are. We essentially work with you in your acquisition of funding of projects as you've just addressed, streets, water, sewer, uh every type of infrastructure that a city has anything to do with. We represent multiple entities, cities and school districts, counties, uh, water districts, so forth. Uh, but our main focus are cities. U, we represent about 120 cities in Oklahoma. Um, we're u we're in a different city every night. A lot of the cities you mentioned was actually in Bsby last night. Uh, but you were addressing general obligation bonds. There are

about 32 cities in Oklahoma that issue general obligation bonds. Obviously, school districts, that's their main source of of funding infrastructure. So, that's a common uh use and and most school districts in Oklahoma have a general obligation bond cycle where they go out almost every year so they can keep their mill levy, that abil tax level uh from one year to the next. so they can market or sell that we're not raising taxes. We're continuing to address infrastructure. So, I have a lot of material. I don't want to kill you tonight with material, but I want to just put stuff in in your hands tonight. Kind of address I'm glad that you you addressed sales tax questions on general obligation bonds. Uh I just want to be of the most value for you guys tonight. And so, uh, but I'd like to just dubtail into what you were talking about since it's fresh on your mind and pass out a couple of handouts here. That, uh, first item has to do with you were talking about sales tax.

So, pass around. This is a lot of information in front of you where we try to compare whoever we're speaking with, but to compare you with other cities that are in somewhat of a similar demographic, kind of same situation. Sometimes it's just uh where you're located. Um, and so how do you compare? Because some cities, it's paramount that they don't have a increase in their sales tax that puts them higher than their neighboring communities. Uh there's always been concern that you're going to lose business, people are going to sharp shop elsewhere. U but the fortunate thing with Mallister, you're you're a hub. So if you were a community 10 miles out of Mallister and they were looking at raising their sales tax, they'd probably have a greater concern that their their constituents would come to Mallister and shop if they could save 1% off their sales tax or more. Uh but what we try to look at is some of our communities understandably are purely focused on what the total rate is. And I've shown you what the local existing this is as of today what the local existing sales tax levy is for the following communities. Not all the communities but we felt these uh more in line are more in line with Mallister. But you get to see where the local rate is. Uh anywhere from uh 4% all the way up to 5%. 10 years ago, everyone said there's no way we're going

to go to 4%. No one will ever go to four. Well, a decade later, everyone's at four almost. And it's five is not such a odd amount to go to because as you've heard this before, Oklahoma is the only state in the union that does not have abalor tax, property tax for you to operate off of. And so you fund your general fund primarily off of sales tax. And what a lot of OK Oklahoma communities have to do is they have to look at even dipping into utility revenues to help fund everything you have to that's under general fund as far as public safety and so forth. But I wanted to provide this to you. was brought up on the agenda item prior to to this one to kind of show where you fall and then look at where you fall from a local rate to a total rate. And you guys had mentioned potentially going to I was a little more conservative. If you see the bottom of the chart, I showed you had increased to 4% um back in 21 when we increased the sales tax total rate by a quarter% to pay for a substantial portion of the debt that's on your waterline project. And so, uh at that time we were 38 to half a percent. I basically showed you tonight on this chart. Uh, but you guys can do your own adding on. If you were looking at adding a penny to your four, you would see where you're at. But once again, you don't look at if you have significant infrastructure needs, then you have to look at how do you

address those and how do you address those quick enough before you see the kind of inflation we saw during co let's, you know, let's pray that we don't have another uh pandemic that has that kind of adjustment to the cost of materials and so forth because that was a significant cost to everyone. on it across the board. And so, uh, while we're having this conversation, because we're talking about infrastructure, what's our estimate if we fix storm, sewer, sewer, water, road per mile, just just a ballpark. Three million. It's about 3 million a mile for every day.

So, if we if we do everything right, it's 3 million a mile. And just by these calculations, uh, adding another quarter, we already have 1.5. That's almost 1.2. two, you really don't gate. I mean, what 177 lane miles? Most cities of your size in the state have infrastructure needs of between a hundred to probably $300 million worth of needs. And that that's not putting up a all of the quality of life type projects. That's that's sewer, water, streets. And you find that a lot of those cities have the same type of debt that we do. I know debt is is one of our things that just puts a strangle hold on us.

Well, the one thing I I also have a couple debt handouts that and I'm going to kind of dubtail into that based on what you guys had said in regards to uh sales tax and what's falling off and and what we have. And uh I don't have I have information on this. Uh, I tell you what, I'm going to pass it up real quick here. And I can do this real quick. I don't want you getting up every time I All right. Okay. I apologize. It'll seem that I'm coming from every direction. I didn't really know what we would talk about tonight, so I didn't have any organized. I had an agenda to pass out, but since you jumped into it, I thought we just going to hit the key.

There's going to be information I'm going to leave with you tonight. uh we because this is kind of the front end of what I see as you needing material for you to make the most educated informed decision going forward. Uh what I wanted to show you is what I just passed out. If you look at the bottom there's a pie chart and this is a breakout of your sales tax that John had mentioned earlier that kind of shows what falls off what it's earmarked for. And what's key is you have a lot of infrastructure and if you were to raise your sales tax by 10%. That's what it would take for you to address a lot of your infrastructure needs. The port problem is you can only do so much pay as you go and then you're basically looking at inflation. So, how do we keep up with inflation? If we say we have a quarter of a of a billion dollars worth of needs in 10 years, that could be 350 million. And so, you have to decide your prioritization. And then you have to decide where are we and what is inflation going to average annually against what we can fund now. And that's where you get into talking about the bad word which is debt. Because what debt is for governmental entities as same as Fortune 500 companies is what do you put into place that from a what can you live with? Because this is what you fight as a governing body. If you're told today that your wastewater treatment plant needs to have x millions of dollars, something needs to be done. uh if you're under consent order, you got to move on this quickly. That makes things a little quicker when

you have CO. It's a sad thing, but that's what gets things moving along. If you were told you needed to do something with a wastewater plant 10 years ago and here we are 10 years later and you haven't done anything with the plant, you might feel as a citizen, I guess you didn't need to do anything with your wastewater plant 10 years ago. The problem is eventually you get cos or consent orders and then you're stuck with whatever pricing is at that time. I'm not saying you can advance fund and go out and borrow money and fix all your problems. I'm just saying that nobody knows no one could have projected a pandemic and the kind of we had a 100% increase in the cost of major infrastructure projects from 2020 to 2025 on wastewater plants on water plants and so forth. You had those types of increases. I I don't have anything in front of me tonight as to what wastewater. I know at one time five years ago we were talking 2025 million.

So 43 for just to bring ours into compliance compliance one of the two.

And so uh we get into how do you address 43 million? have to address if you've addressed water. You are 70 65 70% through your water project on line replacement on the project that was funded back in guys. I'm throwing a lot at you and I'm going to continue at future meetings hopefully to try to help you out the best way I can. But you're you're four years into that project. You're getting close to getting done within a year or so of finishing that project. You're very fortunate. And you did get federal funding on top of a low interest rate loan at a 1.9% for 30 years. I'm looking for someone a lot younger than me. I don't think we'll ever see that kind of interest rate again. We were in a period of time for a decade, but let's hope, but where you could borrow money longterm. That program was a 1.9%. It was a drinking water SRF program through OWRB, the Oklahoma Water Resources Board. That was one of the lowest rates for a 30-year term you're ever gonna that we saw. And you hit it just right to do that. And you had also federal funds today. That would be double that rate. It'd be closer to 3.8. And so what does that mean? It means you did 30 million and change. You could only do maybe 16 or 17 million and change for the same debt payment. And so that depresses everyone. And so depression means you don't do anything. It just hope it goes away and hope it goes away or it it it it's a problem for the next person that comes in after me. Whether you're a mayor or you're a city manager, you just let's hopefully I just get to here. And so, but I I wanted to show this chart

because you have all this sales tax, but you have tax falling off. And I'm not saying you have the tax that falls off November 30th of 2031. That penny has actually funded and will fund all your debt from because that was brought up. I apologize that it's but I I want everything in front of you. It's like this way might be easier. You don't have to yell at me if you're short, sir. That should be good. Good. All right. There's so much to say tonight, so bear with me. I I want to keep organized.

We still have 35 minutes. So, pardon me. We still have 35 minutes. Oh, yeah. I can I'll I'll speed up my conversation here. But to me, this is what I want of anything. thing I want everyone to understand tonight is uh we were engaged by the city in about 2011. We had a we received a phone call from Steve Harrison. I don't know if you guys know Steve

that said that the city was basically broke. They didn't know if they can meet payroll. We got a call. We came down. Um so there was certain debt that was done for us. Whether it's good or bad, it it is what it is. And one of the things that was out there was a 2002, which is the first column of what I just passed out, revenue bonds that was done prior to us. And um what were they used for? Those bonds actually refunded other bonds that did all types of projects in the '9s. Like a refund.

Like a refunding. Yeah. So it refunded, but as you see, 2002 bonds, that means 2002 is the year they were issued. Some of these refies they were from 99. Is that the oldest? Uh we did we 99 actually refunded some bonds but there were a lot of bonds that just kept rolling over kept rolling and rolling. Yeah. And but but just to give you perspective 2002 you see when they matures in 34. So those 30 two-year bonds. So these are theoretically funded projects that are already outdated again. Yeah. So that's the one thing that you have to you have to look at is

that's that's incredible because some some of the some of this debt is 23 to 30 years old. And I know a lot of people in our community get kind of agitated with why aren't you doing it doing things? Well, we're dealing with debt that's 30 years old. We're dealing with debt that's older than I am. Well, it's okay. True. That that nobody in this room had anything to do with and our hands are tied. That's good. It's quite crazy.

Well, I'm going to try to explain. Okay, just big picture. Here's here's the intended plan. Okay. You say 2002 bonds. Those bonds are out. They're called capital appreciation bonds. And basically what happened was they issued those bonds in 2002. they it's just that anybody's so we weren't involved but it doesn't help the situation that we weren't involved in explaining to this to you now those four years you said why is there just those are out there on the 2002 why are they out there

well the 2002 bonds had maturities prior to that we refunded those in 2015 everything we could refund or refinance you the 15th column. We we actually um you know when we first were engaged back in 11 or 12, we looked at the 2002 and when we were looking at the offering document, those bonds in 31 through 34 were non-allable. You could not prepay those. They're at 5.9%. You're stuck with that forever

until those final four years. And so just like you would sit and kind of add up your car loan and your mortgage and you're lining everything up and you know when the car you pay off this car, you're going to have a little bit of money here. Well, we couldn't we couldn't do anything with that. So it's it's been sitting out there other than you said, "What what do you mean not do anything?" Well, we're you're going to pay it off, but you have a 1 cent sales tax, the one that expires in November 30th of 2031. We put this template together over five years ago that basically said that bond along with subsequent notes that were done for street projects in 12, 13, and 14. 15 was actually refunding of the 2002 bonds that we could refund or refinance uh in those early years all the way up to 2030. 31s through 34 were non-calable. So in looking at all of this, there was a one penny sales tax that was earmarked to pay on the debt. But when that was done in 2002, your sales tax that you collect off one penny is a lot more today than it was in 2002. And I even have a sheet on all your sales tax for the last 20 years, but it's it grew dramatically. But the sales tax was earmarked solely to pay that debt. We would have loved for you guys to be able to pay all that off, but we couldn't. So all the sales tax was doing in 200 all the way up until 2012 was going into a pot and it was earmarked by the voters to only be used to pay that 2002 debt. And there was a 99 debt. It was for paying that debt.

Well, we couldn't use it to call those bonds in and so there were street needs. So, we were approached, how do we address streets? So, we had that sales tax repurposed to be able to not only just do those bonds for that that that fees, the 2002 bonds, but also to do street bonds or street financings.

And what year was that? Uh we had that in 200 uh 13 March 12th to 13 there was an uh well that's when that approved the election but I even had the ordinance where the election was called called because all that was happening was that sales tax was being put into a pot and you couldn't do anything with it and they said we got streets that are falling apart and we have this just keep building up and so we took out all of those 2002 bonds that we could, but you still had $17 million worth of bonds that we couldn't touch. Now, some might even say, "Well, why don't you just pay those off with another financing?" Well, you paying 5.9 and you do another financing, you add another 4%, you're paying 10% on debt. You don't you just can't get out of that. And so what we put together was what you have in front of me, which is a template, is taking what your sales tax penny generates. Now, if you were to set that aside and use it for all this debt you see from 2002, 12, 13, 14, and 15. Would that be enough to cover that debt? Because you see, you look at 12, 13, and 14, that debt's falling off in pieces. You also have reserve funds under the 12, 13, and 14 bonds where you're going to apply money that's sitting at your trustee bank that you can use to make your last year's payment. And so what you're seeing here are the net payments of each one of those bonds. What's critical to you guys, there's a lot being thrown at you tonight, is you have to be have foresight to look out the next 5, 10, 15, 20 years to see it seems like a lot, but you're paying a lot off in the years to come. That

doesn't help you in the next two or three or four years. But you have to look at let's say you do a one penny sales tax or you do some other type of revenue increase mechanism. You have to look at what does everything cost now? What do we have to address that is like a consent order and you have to decide okay do we just wait? Do we wrap around this debt knowing it's falling off? You have to find the happy median between advanced funding what you need to against whatever inflation costs you. You have to judge interest. If you were to do, for instance, you were to do a wastewater treatment plant, $42 million, you could borrow from OWRB, who you borrowed from back in 2000, and through their clean water SRF program, 30-year financing. If that's the life of the improvements to the plant, you could do that. It's a federally subsidized program. Today's rate is 3.22%. It's tied to whatever the money it's it's the market and there's a software we use, but that's today's rate. It would be a 322 on a 30-year loan. If you went out and did a 30-year bond, revenue bond that you issued yourself, it'd probably be closer to five. This is a federally subsidized program that the feds funnel money capitalization grants every year to the Oklahoma Water Resources Board and it's one of the top five rated bond pro their SRF program and their FAP programs are top five in the country in the program. It's a very successful state agency program for funding. You can get you could address 42 million

but even at 3.22% 22% that you're looking at a substantial hit that we you know you can't pay as you go on that project. So you have to advance fund it. So what we have to look at is how does everything work against this debt against how are you going to fund that? Because as mentioned before and this is where I'm going to be he's jumping all over the place again. You have 42 million in sewer, but you have you have cos that you have to address. You have streets. Well, we got we have to address streets. We have storm water. We have you're going to get into a prioritization and then you're dealing with inflation. What's it going to cost now versus 10 years from now? So, what we're going to look at is one, your existing debt. How's it covered? Because the question has been thrown out there a dozen times. You have all you have the sales tax that expires November 30th, 31. You got debt going out to 34. How in the world are you going to cover that debt past 31? Because you're going to reserve it. And this is what I talked to Sherry about five, four or five years ago. That sales tax goes into a pot and that pays all of this debt to the left. And then when that debt starts falling off, you just start accumulating that in reserves. If your sales tax stays at what you collect now until 2000 November 31, you don't have any growth, then you'll have about a million7 left if you and you can pay all the debt from the 12 through the 150 note off. But that's what you have to do. That has to be set aside. But you're seeing a penny drop off. You're at 4% levy now. in six years and two months or one one and a half months, you're gonna drop a penny that that

penny brings the number that everybody talked about before. So, what we have to look at is first how is our existing debt being covered? I've shown you here how this debt is covered. You have a 2000 if we have our 2021 drinking water. I mentioned this earlier. We raised the quarter percent sales tax that generates about 1.1 million or so. The debt payments are going to be about 1.3. Our intent was at the time and we I even have it here also. We went to the voters and said, "You can either have your rates go up X or you can pass a quarter cent sales tax and your rate increase uh is you you actually you had no rate increase at that time."

There was no rate increase, but you were going to kick in about $200,000 out of your water revenues. You felt at that time you had enough to cover that 200,000. Sales tax was passed. It's permanent. It covers this 30-year loan with OWRB. And so you almost have to compartmentalize everything. All this debt's covered by the sales tax. Nobody can touch that sales tax. Any new governing body members, new managers that come in, do not touch that one penny. It takes care of all your existing debt. It doesn't make the total amount of debt you have outstanding look any better, but you do have a plan to pay that off. And so that one penny that falls off November of 2031 can't be used for anything else. And so that's just if anybody had any ideas we can use some of that penny for something else that's that's off the table.

Can I read R call back just to make sure we're all on the same page? Yeah. And I really like this color chart

that you have here because it kind of shows the u by 2027 that 2012 note is fully paid. Those funds that were paying 2012 rolls into the pot and starts paying down the 2013 and the um 2014 and the 2015 kind of adding on there. So when we get to the 2031, are you saying that we had been putting enough money in the pot the whole time we're not actually having to save up in 31 and 32 and 34 because all that money has been set aside, right? Until Yeah. Yeah. So

because we can't pay them early, so we have to but the because we've had larger revenue increases and the question would be asked, we know I've gone on and on about the 2002, you can't pay those off at all. You say, "Well, what about the other deals? Can we pay those off?" Those were non-allable, but those are at three three and a quarter 3 and a half%. I have the the amortizations on those also that pass out take with you because I know I'm talking through my time here. Uh you can't beat the rates that you have on any of those other loans uh today. Um don't pay them off and then take a higher percent. Yeah. So,

but to say that we the conversation that we keep hearing kind of internally is our bonds don't pay off till 2034. While that's a true statement, that penny the money will be there. The penny will be freed up in 31. Correct. So, we don't have that huge looming at us that we thought that correct the balloon the balloons. We're about three years sooner than than we thought. We will have the cash. Apologize for the exaggeration or the extension on that. This has come up a dozen times and it's like every six months it's hey how in the world are we going to pay all this debt when our tax falls off? This is now does that penny when we're done paying this? Do we back to the voters or I don't understand the question.

When we're done paying off this bond debt 2031 does that penny fall off? It falls off and half and then we'll we'll have to go back to the you have if you want an extension of that penny for something else you'll have to ask the building for it. So that might lead to this 10 and a or the 10.9 or whatever we're thinking might only be for three to four years. Well, let's talk let's talk about this real quick and kind of in this just to put a something for you to think about is we're six years out, six years, one month out.

And so you're looking at where you're at on your local levy right now. And so if you're adding to your existing four pennies, uh, then you're going to the voters and saying, you know, whatever the case is, you're going from four to four and a half or five. But you also, and cities do this all the time, we're a little early, but they've done this, is you go to the voters next year and say, "Let's make that tax that falls off at 31 permanent." You say, "Yeah, but we we don't get any benefit until 31." you have so many capital needs that you're going to have to look at a window of 20 to 30 years on those assets that have that kind of life and to fit in. And you say, "Well, we're not going to ask that sales tax be made permanent till we get right up to the edge." And that's fine, but what you're always going to battle is the cost of money versus the cost of of the projects. And if you're annual interest rate, if it's a subsidized program is at three and the annual inflation's at four or five, yeah, that's what usually. Of course, we had a 25 to 30% a year inflation on this type of work for from 2021 to 2023 24. It was a huge jump in material cost. So, as you think about your sales tax, just throwing it out there, it's all up for you guys to ponder is um and we this happens uh we we did this in Collinsville. We've done this in Chicochet. We've done this in other cities where they had a sales tax was either going to fall off, but they they addressed it now.

Um, but listen to you talk before I even stood up here. You understand you have a lot of needs and there aren't quick easy fixes to anything. And a lot of time it might I don't know if I call it a fix but if you if you want to avoid raising a partic like a utility service rate to to accomplish for example at $40 million uh I even have a handout. I didn't know if you go up to 40, but on the wastewater plant, you might say, uh, let's let's let's let gentlemen that sit here on council for quite some time here on the edge said, why don't we let water pay for water, sewer pay for sewer,

and sanitation pay for sanitation? Why can't it be that way? So, that makes all the sense in the world. If you were to raise sewer rates on average per month per customer, assuming you have about 7,000 customers, just round numbers for you guys looking at tonight, and you were to go through the board's drink their clean water SRF program at three today, 3.22%. The average bill would have to go up on 40 million, not 42, $24 a month per customer. And that that covers a 30-year loan. Unfortunat you don't and there cities that have a lot more customers and those have a lot less. Say, John, you talked about all this, but when it comes down 24, let's talk sales tax. And so, let's keep that from going to $24 per customer per month. And let's use sales tax and then we'll figure streets out later, and we'll figure this out later. What happens is those projects keep getting moved around but understanding as you sit there, oh my god, how are we going to afford that? Now, that's an average cost per customer. We do rate models and so forth. You might not necessarily put that on the backs of residential customers, but you might put it on the volumetric charge and everything else. Those are all the things that you have to talk about. But everything that we do is to try to find you the lowest interest rate program, give you the most options or just give you the options that you have available to you as a municipality in Oklahoma as how you can address this. Um, I think I'm getting close to the end of my talking time. Got

about 15 minutes, but along I feel like we're on the same page about things because that that's where I look at it is if we do a penny increase and we look at extending this within a couple years. I mean, if we had that money today, we'd be looking at $9 million almost. Yeah. And imagine what we could do with an additional 9 million a year. I mean, it's almost unfathomable.

I I will talk Gio real quick because as a city in Oklahoma, this is what you look like look at when you're looking at how do you fund. you would hope that you would fund through whatever bonds or state federal programs like the water boards program for water and sewer and storm water. That's kind of here. That's how you would fund it, how you would finance it. And then you'd fund it. You well, we should be charging for what it costs to provide water and sewer, but everything gets more expensive. Then you have general obligation bonds. And the question was asked on general obligation bonds. This I'm not going over with you tonight because you're going to see this and you're going to want to read it and spend a lot of time reading it. But I want to hit some key points. Uh because schools do this. This is how schools survive. [Music] When did you say we enacted the 1% sales tax? What year was that that we started the 1%? Um

well it was well in 2013 we just changed the purpose. Okay. So having one we just changed the purpose because it was was already in place. We wanted to be able the council wanted to use that for streets. So we we changed the purpose to streets. So we've never had it fall off.

Yeah. Always had it. Um yeah, reality is sales taxes never fall off. They may fall off for a period. They come back because the cost of doing business in a government doesn't just fall off. It continues and so you have to do it address that but it doesn't make it any easier. Okay. There's a lot of information here but I you see there are two two areas that are shaded in orange. Is that orange? I'm kind of kind of blind. But if you wanted to do a general obligation bond, I gave you a $10 million example. Uh general obligation bonds are publicly offered securities. So you have to uh it's a little more involved than a water resources board loan or a bank loan. Uh you go out and you put together offering documents. You have a you have bond lawyer. uh uh you have our firm as financial advisor, then you have a rating uh agency that rates the bonds, and you have all these other different involved parties when you issue go bonds. But the key thing, if you did a $10 million issue, you get about 9.77 million out of that 10 after you pay cost of doing the transaction. So if you say what is 9.77, how much does that hit our property owners? And that's what's in this orange box to the right. If you take example home values forever, we used to have a 100,000 and okay

um that made it more palatable, but it became more ridiculous after a point. And then we went to 150. I kept 150. That's almost I don't know what the average price in Mallister is, but let's say it's probably closer to maybe 250 just average. You can see your first year the way abalone tax geo bonds work and the way the the state statutes work on living for abalor tax for paying back geo bonds is you pay a level amount of principal every year and then the interest goes down as you pay the debt down. Not like like your car loan where your payment's the same every month because your principal ends up going as you pay down that more of your car payment goes to principal and less to interest. It's not that same way with the way state law is set up for geo bonds. So your levies a lot more that first year than it is year five 10 15 or 20 depending how long you go out. Do do you see a mix of where we may do like 10 million in this and this is what adalorum goes up and say we add a dollar to the water bill. Do you see kind of a mix or does somebody typically go we're just going to go get 43 million with bonds

here? I see everything we we have been asked to for bringing everything to the table. Um, here's the one thing that um, Oklahoma uh, used to build. I wasn't around when I speak of this, but prior to the 1950s, cities grew in their development of housing and so forth. You had to have you only had a general obligation bond to do projects to go out and build infrastructure and build out. and there were elections failing all over the place uh that citizens I don't care I don't want we've got a hundred houses here depending on the community and so they came up with the idea of public trust because public trusts are not guided by the constitution as to death limitation so you can go out and so you you create a trust go bonds work well but they work best when you get them on the books Because once you get them on the books, it's an avenue. You may say, "All right, we're going to use geo bonds for streets or for public safety facilities or whatever." Did I do that?

Um, so you if you look at having an equitable allocation of burden, uh, you look at there only 32 I think cities that have geo bonds. um in the state and about 20 of those are major issuers that issue every year and we represent about 15 of those and uh but you had cities that forever Oklahoma City forever didn't have general obligation bonds and they finally said we cannot keep up with streets. Oh wait, there's a 2.8 billion or whatever election today for Oklahoma City to address its needs. They f they realized that being at zero and you had other cities that were at a 10 mil or a 15 mil that they had to get in there and they just kept the mill levy about the same between 15 and 18 mills but they were able to just keep an ongoing um source to address this. I'm a financial advisor. I help put you guys in debt. I help you with this. Don't think I don't understand about how all of this is ownorous on a citizen. I do. I understand how well we've never had geo bonds. That's only for schools. That's fine. But you have you funded in other areas and eventually you end up raising things that don't make sense. You raise now sales tax can be used for whatever you want and sales tax is very palatable. A lot of communities choose sales tax over geo bonds and over utility rate increases because they said people from outside. But what you have to think about is this is no matter how much of your sales tax comes from outside people that come in and shop. You have to think individually is how much sales tax do you pay in your household here in

Macallister? How much do you pay sales tax on? You pay it on electric. You pay it on all your retail purchases. Uh you pay it on any kind of services that are taxable. You have to decide, yeah, I probably spend, I don't know, $2,000 a month that it's taxable. And if you raise it by one penny, that's $20 a month you pay. And that's what we always show is sales tax costs me $20, but this costs me less. The thing with GL bonds, you're at 151 million net assessed valuation based on your most recent valuation by Pittsburgh County.

We're we're at 5 bill. So any any final thoughts or quick questions really appreciate you coming in. That was a lot of information to digest. We'll definitely have you back. I will leave the material with uh with your staff and be glad to talk to you anytime you need and we will officially adjourn this meeting in Thank you. We'll take a short break Where's your performance.

All right, Cory, will you call the RO? Councelor Gilmore here. Woodley here. Stone here. Roden here. Boright here. Mayor here. And we have a quorum. Um I don't see anybody here to do our pledge invitation. Council G will do that for us. Please stand for the pledge, please.

Attention. Salute. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Now for invocation. Father, we honor you for this night, God. We honor you for this city. We thank you for everybody represented in this room tonight, God. God, we ask you that all the business be done decently in order to bring you glory and make this city upon the hill as you've called it to do so. We thank you for this day and the people in this room in Jesus name. Amen. Amen.

We move on to recognitions and awards. I have a proclamation tonight. Glasses on. Whereas dyslexia is the most common learning difference affecting as many as one in five individuals and is characterized by difficulties with accurate and fluent word recognition, spelling, and decoding. Whereas early identification and evidence-based interventions are critical to ensuring that children with dyslexia read their full potential reach their full potential in school and in life. Whereas educators, parents, and advocates in Mallister and across the state work diligently to provide the tools, resources, and encouragement needed for students with dyslexia to succeed. Whereas raising awareness of dyslexia helps reduce stigma, increases understanding, and promotes greater support for the academic and personal growth of all students. Whereas October is designated as dyslexia awareness month, providing an opportunity for communities to recogni recognize the strengths of individuals with dyslexia celebrate their achievements and commit to creative creating inclusive environments that foster learning for every child. Now therefore, I, Justin F, mayor of city of Mallister, do hereby proclaim the month of October as the dyslexia awareness month in the city of Mallister and encourage all citizens to learn more about dyslexia and support the students, families, and educators who make the difference every day. All right, I think I have some people who want to take a picture. You'll make me stand up here by myself or

Come on, baby.

All right. Awesome. Here. You want to hold it in front of me here? Squeeze on in. Squeeze in. Small. Three. One, two, three. One more. One, two, three. Don't go anywhere. Paper. Let's get one.

Get one of yall. All right. Excellent. Y'all can fight over who gets to keep that. Thank you all for coming out. I also want to recognize our finance department. And uh tell me the tell me the exact name of the um certificate of achievement of financial reporting.

Certificate of achievement of financial reporting. Again, this is 11 years straight. We were afraid we weren't going to get it and and we made it. And to me that just speaks immensely to u to your department and everybody there cara u and the transparency in our community and and what we do and we really appreciate how hard you work on that and we we don't want to do the numbers. We just learned that. Yeah. Yeah. We just we just have an hour on why we need you.

All right. We'll move on to citizens comments on non-aggenda items. Residents may address the council regarding an item that is not listed on the agenda. Residents must provide their name, address, and ward. Council requests that comments be limited to five minutes. What sheet did we have? Mr. Donathan, do you have anything specific or non-aggenda? No.

Mayor, thank I I don't put my name down. I thought I might uh think of something, but uh I just I'll just say briefly that I'm I'm proud of the mayor and the city council and everyone seems to be uh kind of getting on the same sheet of music and the city's got a lot of problems and you're working together and I'd like for you to keep that keep that up and and keep things going. I know in a positive manner. Uh, Mallister's got to come back and and get better. And I think you're doing a good job. All you councilmen and everybody involved, work together and we'll be great. Thank Thank you. Thank you.

Is there anybody that wasn't signed up? All right. If not, we'll move on to the consent consent agenda. All matters listed on the consent agenda are considered to be routine by city council and be enacted by one motion. There will not be separate discussion of these items. If discussion is desired, that item item will be removed from the consent agenda and will be considered separately. Does anybody need anything removed? Not I'll take a motion. Councelor Gilmore, second. Woodley for Would you call the RO? Councelor Gilmore, yes. Woodley, yes. Stone, yes. Roden, here. Wright, yes. Mayor,

yes. The motion carries. Uh, move on to public hearing. All person interested in the ordinance listed on the schedule of business shall have an opportunity to be heard in accordance with article 2 section 212B of the city charter. Uh tonight we have two um we have one on the budget and then we have one on an R3 was that C C2 to R3. I'll take a motion to go into a public hearing. Motion. Councelor Gilmore. Second. Councelor Stone. Cory Co. Councelor Gilmore. Yes. Stone. Yes. Woodley. Yes. Roden. Yes. Boight. Yes. Mayor.

Yes. The motion carries. Not a public hearing. Would anybody like to speak on the budget? Would anybody like to speak on the C2 to R3? Seeing no. I'll take a motion to close public hearing. Motion. Councelor Gilmore. Second. Councelor Bo. Corel Gilmore. Yes. Vote right? Yes. Stone. Yes. Rhden. Yes. Woodley. Yes. Mayor. Yes. The motion carries and now move on to schedule business. Item number one, discussion and update to the city council on keeper beautiful. Mr. Bill.

Good evening. David Deal, East Herford Lane. I'd like to introduce Lacy Fields, who is our executive director starting as of today. Congratulations. Hello, guys. Tabitha, our vice president. You have to introduce yourself.

Tabitha Howell, Krebs America. We're here tonight to briefly speak to you about a new initiative that keep street beautiful is starting. Over the past couple of months, I guess I should be over here, correct? Over the past couple of months, we have became aware that there is a shortage of community service volunteer hours for those who have been ordered by courts to serve community service. And we found that uh we can help those people connect them with projects. Keep muckle has been doing projects for years. We do one small project every month and that's just not cutting into the backlog. And we believe that uh working with the court systems, county court system, drug court and others, we can help create uh help remove that backlog and work toward beautifification of city of Ballistister and keeping with keeper beautiful objective while helping the people who need to do community service get their hours in. I'll turn it over to you now to talk about projects that you may have.

Okay. Okay. Hi. Good evening. Um I do have a couple of handouts. I only have three. I'm going to pass those around for anyone that might be interested. What that is, um David and I, Ken was kind enough to welcome us to meet with him uh a couple of weeks back. This document was prepared ahead of that meeting. Um just kind of outlining the type of projects that we um are hoping to complete, hoping to partner um folks with um just to give you an idea. Of course, we are putting our own projects together, but we are also open to anything that you see that we can help with. Um reach out to Lacy and we'll get it plugged into our project bank, so to speak, and uh hopefully get that to completion sooner rather than later. And it's not limited to just those who are court ordered to serve uh community service. We have already been contacted by students in the school and other organizations who are looking for volunteer hire to put on their resume.

It's excellent. Very exciting. We have lots of projects. I know you generate a lot of big My head made a list. Do y'all have any questions or comments? No. On that. Appreciate you put the program together. That's great. Definitely a good need and and uh it takes many hands to do the work we need in the community and this will really help out. We've been busy. We're excited. So, thank you. Yeah. And welcome to the team.

Thank you so much. I'm coming into such a fun new project. So, It's a great organization and we'll try not to overwhelm you in the first two weeks. Great. Thank you. Thank you.

All right. Move on to item number two. Discussion of possible action on an ordinance amending ordinance number 2845 which established a budget for fiscal year 2025 2026 repealing all conflicting ordinances providing for suitability clause and declaring an emergency. Good evening, Mayor and Council. Tonight, I've got um six different um budget amendments um that just kind of give you a little bit of the update. Um closing out the year for 2425, you know, ended July, excuse me, June 30th. Um uh we are required to keep those books open till September the 30th. um in order to accommodate any um invoices or any kind of um um remittance that we would need to make, you know, to meet those meet those requirements by law. Um, so even though that we're already in October, um, these budget amendments are for 25 and 26 because of closing out that that previous fiscal year, we uh, even though we're currently working in the new year, we have to wait for adjustments to be made. And um, so that's why we're bringing these to you now. So the first one um, is with our landfill. Um I know that you guys have already kind of talked about this particular project, but um we were allocating funds um here from fund balance. Um this was to cover the expense um on the the dozer that we had um had purchased um not too long ago for um $147,000. Um exhibit number two is with airport. Here we're just um allocating um 18,000 from fund balance, increasing those uh increasing those revenues, increasing

the expenditures to cover additional costs for the new terminal um that we um are soon to open. Um then uh exhibit number three is the airport grant. Um that this is for the not the terminal but for the taxi way. um that you has already been brought to your um brought to council for approval. Um this is a huge huge project um that will uh totally do a rehab of our taxi way. So increasing um the revenue that's coming in with that grant um and then the expenditures for the contract that you uh have previously approved there. Exhibit number four is with tourism. Um again this is um this one actually is appropriating funds from the uh the Mullen Park project that we um have been working on for the last year or so. So this is allocating funds to finish out that project. Um get that taken care of. And then we also have um space that we've had to where tourism and economic development are moving out to the terminal um and there's um at least associated with that for that space. Number five is storm water. Um here we are just simply reallocating uh funds from one capital outlay line item to cover other expenditures that um that contracts prior to the budget being approved um have have increased on. Um number five, excuse me, sorry that's number five. Number six is

infrastructure. Here we have um using fund balance and um supplementing appropriations to continue the projects that we had from the previous year and um the new projects being identified which is also part of your packet tonight. Any questions, discussion? Motion to approve council. Second council vote right? Yes. Vote right? Yes. Gilmore. Yes. Woodley. Yes. Stone. Yes, mayor.

Yes. And the motion carries. This has an emergency. Take a motion to approve the emergency. Motion. Councelor Gilmore. Second. Councelor Stone. Cor. Councelor Gilmore. Yes. Stone. Yes. Boight. Yes. Woodley. Yes. Rhden. Yes. Mayor, yes. The motion carries.

Uh item number three. Thank you. Uh discussion of possible action to authorize the mayor to sign the work order in the amount of $17,000 for infrastructure solutions group LLC per proceed with the engineering services for water treatment plant clear well overflow relocation mayor council it's a pleasure to be here tonight um this work order is actually a continuation of a project set out at the water plant um the discharge permit at the water plant from the backwash water the new permit that's added some chlorine requirements in there that there's no chlorine can be discharged out of those ponds out there. Um, we did an engineering report, did a study that DEQ approved and what we discovered the source of the chlorine was on those old concrete clear wells out there is that when they would periodically overflow and or be drained, that water went to the backwash ponds. That's chlorinated water that we're sending to town. So, um, in order to comply with the consent order that came about to this to eliminate the chlorine out of that discharge, we came up with the idea of relocating that overflow so it does not go to the pond, goes to a different direction. Um, and so what this work order is is for the design to get the DEQ permit um, and then roll into construction. And we've right now we've estimated the project right at 150,000 total but all you're proven tonight is just for the engineering design to get started.

Any questions? Motion question. So So the problem is the chlorinated water is getting into overflow ponds or what you have back there and I'll kind of basically explain you've got a backwash pond back there. So when you backwash the filters, that water goes back into a pond where solids will settle out and then the water's discharged. Okay? The water that's discharged is monitored, measured, and you have to take samples from it to comply with discharge limits.

That water that leaves those ponds has a limit for no residual chlorine detected in it. So the only water that's getting into that pond that has chlorine is coming from the clear well. The water that's being backwashed through the filters doesn't have chlorine in it. Okay. So So this water being diverted someplace else. Yes. Are we going to have problems with the EPA saying, "Hey, we can't be giving chlorinated water out." It's just like any tank in your system. All over the system. If there's ever an overflow, a tank in town, they're monitoring it. this past year. So, for the first six months of the year,

we've averaged maybe one overflow a month and it was for like less than an hour. Okay. Um, so the only other change is the drains of the clear well, which did go back to the ponds, that won't be going that direction anymore. But again, draining of the ponds is for routine maintenance, cleanings, and things like that is very intermittent. So, that water's no different than a fire hydrant in town. Okay. All right. Thank you. Any further discussion? Motion to approve. Motion. Councelor Boight. Second. Councelor Gilmore. Corwro. Councelor Boight. Yes. Gilmore. Yes. Woodley. Yes. Stone. Yes. Roden. Yes.

Mayor, yes. The motion carries. Item number four, discussion, possible action authorizing the mayor to sign a change order number four for the water treatment plant high service pumps project for utility maintenance contractors LLC with no cost modification. Hey, I like that. It's a no cost. Yes,

there is contingency funds in the project that's paid for, but at the ultimately it's a wash. Uh what this adds in is it was identified we focused mainly on the pumps, the electrical for the pumps. We're nearing the end of all of that, so we shouldn't have any major surprises. And the the piping that those pumps pump into, it's a large 30-inch diameter pipe that's got a lot of rust, a lot of corrosion, and what this will do is clean that up, paint it, so it'll extend the life of the um concrete header. So, we're painting it, but then we're using contingency money to pay for it, so it's a net zero. And there still is some contingency money left in the project as well.

How's all that coming as far as when we can switch over to those pumps or have we switched over to one and Well, you know what the schedule is? Who who How's everybody doing tonight? Good.

We are looking at approximately somewhere within the next two weeks, uh, we're going to be doing a shutdown on our, uh, generator as well. They're going to be wiring in the ATS, the automatic switch. Um, they are pulling wiring now as we speak. Uh, and they're getting ready to finish pulling the three-phase. And as soon as they get that done, within the next two weeks, we'll be switching over to the two pumps that are that will be connected. And then we're going to begin work on the other two pumps. So, we should we're looking at completion hopefully within the next three months. How many pumps do you typically run at a time? One. We'll run one,

but we have one running and we have one for backup and then we have two for maintenance purposes so that we can rotate. So, we'll have four pumps set up ready to go. Yep. Yep. What's our estimated savings with electricity off top of your head? Just for fun. I had the figure, but I don't have it in front of me right now. But, I mean, back whenever we first discussed this, we had brought out the figures, but I'd have to find them. I don't want to tell you wrong. It's hefty though. So yeah, it'll be a good cost savings all the way across the board for everybody. So yeah, that's excellent. Easier on the system. Yeah, great project. Any further discussion, questions? Motion to approve. Motion counselor boat right second. Councelor Gilmore. Councelor Boight. Yes.

Gilmore. Yes. Woodley. Yes. Stone. Yes. Roden. Yes. Mayor,

yes. The motion carries. On item number five, discussion of possible action authorize the acceptance of the Environmental Protection Agency's Community Grant in amount of 5 million for the DWSRF EPA project number 19A B Street water system improvements. This agenda item is to accept the money. So this is a good thing to have. This something staff has been working on for several years since it got awarded to the city. A lot of red tape got to go through environmental checking and clearances. Um what this project is is the one of the main transmission lines backbone of of the city. Um if you recall, we've got new water line up to electric um in Hickory right in that area. And there's an old 16inch water line that goes up B Street all the way across town all the way over to the Simino water tower. um when it has breaks, it has leakages, you know, it causes major shutdowns. This will replace that line from Electric Avenue on B all the way across town, across railroad tracks, across highways, um up to the Simol Tower, and then it also has a little leg that crosses another railroad over to Main Street. So you've got a good solid backbone of a 16inch water mane uh to transfer water all over town. So total project cost about five and a half million. We've got 5 million from the EPA and then our DWSRF funds are covering the balance of it.

That's phenomenal. How long is that? You would have to ask that. I don't know the mile. It's like 15,000 ft I think. So roughly three miles. 12,000 miles. 12,000. Okay. 12,000. That's a lot of water line. And how long will this project take?

Construction will probably take better part of a year. Um we've already time consuming parts of getting the railroad permits. We've already got that done. The plans are already completed. Um staff has reviewed them. We're getting ready to send them off to DEQ for permitting. This is one of the check the box accept the money. So then we can get in line and go to construction go to bids which will come back to the council for a war of bids. St. So does the uh does the water line go right down the middle of the street or is it off to one side? It currently goes right down the middle of the street most of the way. So we get a new street out of this.

Well, we're going to try and put the water line on one side or the other to try and avoid in the future when you ever have to work on the street. We don't want to borrow it under the streets. We're moving it on the outside. Everywhere we can. Some places we can, but try. Well, as long as it doesn't look like South M. I was going to say the original you just leave it in place and just it'll be abandoned in place, cut out in in places where it needs to be. But really,

that way we're not disturbing the street. We're not disturbing the street except for minimal on tieins. But the new line will be on the side of the road similar to what we did down Hickory. Remember down Hickory, it's on the side of the road and along Ashland, we've got it on the side of the road. Um just get it out of the road. You know, back when there were only dirt roads, nobody thought about it. You know, it's 80 80 years ago. Is that all? We got our money out of it. Any further discussion? Motion to approve. Motion councelor vote right second. Councelor Ro. Councelor Boight. Yes. Roden, yes. Gilmore, yes. Woodley, yes. Stone, yes.

Mayor, yes. The motion carries. On to item number six, discussion of possible action. On ordinance amending the general zoning ordinance accompanying Mat There was general zoning ordinance number 1843 by change of classification of zoning district lot 17 18 19 20 21 22 23 24 25 and the west 30 ft of lot 26 block 10 Connelly edition Pittsburgh County state of Oklahoma from C2 the R3 multif family dwelling district time that legal description perfectly. to be able to hand this out.

Yeah, that actually wasn't planned though. I guess when the agenda packet was amended, the color maps were emitted from it. So, just for consistency and transparency, I've included those or I've handed those to you. Um, and that was what was in agenda packet. So, this resoning um is 2.9 acre property located the corner of North 11 Street and Electric Avenue. This one uh went to planning commission on September 16th and they voted unanimously 7 to recommend the approval of this reszoning application and staff just recommends this. Um, it seems to be a good transition from the commercial and the multitude of different, you know, zoning districts in that area. There's already R3 to the north, here's R2 to the south, and it seems like a good fit for that area. Uh, the applicant plans to include 30 units of uh, apartments. Um he already has another development over in Krebs that has done really well and he plans to include the same type of apartments on this property. So staff does recommend uh the approval of this application.

Quick question for you. Um there request this this big C2 right here. Yes, that's correct. The on the back there was something pointing to the R1 over here. That is because that property was actually reszoned uh January 14th of 2020 and somehow it was dropped off of our maps whenever those other maps were done. So I had included it in the packet. So this is part of No, that is a prior zoning and that is a map with the prior zoning and it is Yeah. Okay. I it it was zoned to C2. So that that map is C2 and it was done in January 14th of 2020.

Okay. Are these singlestory apartments? Yes, sir. Go ahead. Just like the ones that are behind it. Similar to probably similar. Um, this builder and property owner, he has some on electric that's over in Krebs, you know, when you go past Easy Mart in that area, but they are single level and I think he said that they were going to be quads. So, it's basically going to be the same thing that's over there. Very moved this way. Yes, sir. Any other discussion? Motion to approve. Motion. Councelor Moight. Second. Councelor Woodley.

Would you call the RO? Councelor Bo? Yes. Woodley? Yes. Gilmore? Yes. Stone? Yes. Roden? Yes. Mayor?

Yes. And the motion carries. Item number seven, discussion possible action to grant the public's work department permission to move forward on an overlay project estimated to cost 525,000. Uh the following streets were indicated problems in IMS program. South F Street from Delaware to the dead end. Southeast street from Chickasaw to Cherokee. Southwest street from Cherokee to Delaware. East Morris from Maine to second. East court from Maine to second. East Park from Maine to second. North Third from Morris to Court, East Park from 7th to the Dead End Cherokee from Third Street to 6th Street and Second from the Railroad to the canal. That's quite a lot of street projects.

Good evening, council. Yes, we're we're trying to move ahead here. Uh that one is from Second Street. It's from the railroad to the canal. Um we're based on all of our data on IMS study that you guys uh move forward on. So we're utilizing that as our main reason picked these particular streets. Uh number of factors went into our decision making. Number one, the IMS report. They're all very poor conrict construction and surface of them. Number two is the m amount of maintenance that the street department's having to go over pole digging. I mean they're just relentless of them. So these are some ones were the worst. Also, it was mentioned while ago about utilities, not in the road. We appreciate utilities in the in the ditch for sure. So, uh these are ones that uh there's one in particular that we have new utilities in it, new gas, new water uh and it's ready for overlay. We shouldn't have to mess with it for many years. But, uh that that is our main way we've came up with a decision. Also, you might be looking they're kind of clustered. There's in first ward I think we got second street in Cherokee. Then we moved over in the third ward which the wards make any difference. I just kind of making it easier for you to to see where they're at. But there's a few streets over there. And then we moved up off of Main Street. The reason we did that, we can actually get more uh street product, more asphalt on the ground if you would uh by moving uh the systems and and commercialized activities. If you pick up a new street, you have to move your your trucks, your lay down machine, all your mach machinery, all that stuff has to be moved every time you go to a different area. So this actually it uh it makes it more feasible for us to pick a location, do what we can, move it to

their location, get what we can, and the so we're going to have two moves. The contractor if if we're able to move forward, we'll unload. They'll have two moves after that. So we'll actually get more asphalt on the ground rather than have to pay them for moving a lot of stuff. So it makes sense. We're we'd like to do this overlay at least a couple times a year, but you know, we know how the budget is, but we got to start somewhere and so we're want to move forward on this and we got a little bit downtown. We got some neighborhoods, so we're trying to trying to do the best we can with what we have. How many feet or blocks? It's almost 20 blocks. Almost 20 blocks. Yeah.

Yeah. So, we're we're we're moving. Of course, it's estimated. It's not a concrete price with it. We have to do with contractors. We have to do the bid. They had to bid the price of rock, price of oil at the time. So we're say ballpark probably 525 to get this around 4,400 tons. That's excellent. And all overlays. Yes. Any questions? Where do where does Mallister get its asphalt from?

Actually, there's two asphalt plants here. There's one Apex south of Mallister by the turnpike if you're going towards Savannah and then J O which is located uh in Hartshorn go Harts horn down Lake Road like you go De Liy it's right there before you get Deli on the left or side of the road. Last time I asked that question I was told multiple places. So thank you for a direct answer. Any questions? Motion to approve. Motion councelor Boat. Councelor Stone Cory call the roight. Yes. Stone. Yes. Woodley. Yes. Roden. Yes. Gilmore. Yes. Mayor,

yes. And the motion carries. Item number eight, discussion of possible action to approve the county detention service agreement between the city of Mac and Per County Criminal Justice Center. Mr. Hurt.

Good evening. Uh what we brought tonight is a uh obviously a contract to work with the uh sheriff's office to house detainees for the police department. We've had this for 20 years. Uh the last copy that I have signed was 2013 by Kevin Priddle and Joel Karns. I met with the sheriff a few weeks ago. We wanted to update it. They've done a study, a cost analysis, and it cost them roughly $5510 a day per detainee in their in their jail system. Our price has been $44, like I say, for a couple of decades at least. The last, like I said, the last time we we signed it was in 13. It automatically rolls over every year. Uh the sheriff didn't want to ask for $5510. We're we work really well together. He said if we spent the difference with him at $50 and he thought that was fair and since we haven't had changed he asked if I'd bring that before the council some things have changed in in in the city too to where possibly in the future we may be able to build on some of this and we needed to get it set in a contract of a flat price. The old contract was $44 per day per detainee for up to 10 detainees. anything over 10 detainees, they would charge us $70 a day. As long as I've been here, we've never had more than 10 people in the county jail at one time. So, it's a moot point to even have that in there. So, this contract, that one paragraph was removed from the old contract. The only changes is the price from 44 to 55 or to 50. And take the one paragraph out about having 10 beds and the sheriff would have to notify me once we got to eight so we would slow down or whatever. But we we don't put that many people in jail at one time. Two or three typically. So that was didn't need to be there. So we we took it out to make it cleaner.

Excellent. Any questions? I make a motion we approve. Chris, you have a motion. How long does a detainy usually stay in?

Three days is what the was what the contract's for. We'll we'll keep them there for 72 hours. at the end of 72. The way they bill us is we don't ever get 72 hours, but the most we can keep them there 72 hours on on one of these. Now, if they're in there on county charges, it's separate. There if they're on a city charge or on city warrant, we will not keep them there longer than 3 days. If they can't post a bond within 3 days, our judge will over them and then they'll get another court date to go see the judge again and start all over. But we we won't keep anybody longer than three days, three billable days. Okay. Any other questions? And that's in the contract too. Council Roden make a motion to approve. Is there a second? Second. Councelor Boight. Gorge. Council Rhoden. Yes. Boight. Yes. Stone.

Yes. Gilmore. Yes. Woodley. Yes. Mayor. Yes. And the motion carries. Item number nine, discussion of possible action authorizing the mayor Justin F to approve and sign the project agreement with Jackson Mechanical Inc. for chill replacement of the Pearl Albert building in the amount of $149,779. Mr. Hill,

good evening, Mayor Council. We have a problem with the cooling system and at the federal building and our with our budget. The sensible way to go out is this way to put a new chiller in. We've been fighting it all summer. We fought it last summer. one chiller I can't tell you how old it but the one that we was using I think was put in in the 40s that that's the only date I could find so it's been there for a really long time and there's no fixing them no bandaid them it's gone just on that free building huh

just on that free building yes you know as well as I do there's nothing free in life nothing but uh I really need y'all's help or I'm liable to end up in the county jail. It's like, will this fix the courtroom commenting? Yes. Yes. It'll all tie back in. It'll be a chiller system. It But the chiller will be out on the outside. It will not be in the basement any longer. It will be out on the outside and it's a 60tonon unit.

Any other questions, discussion? Motion to approve. Motion councelor Woodley second. Councelor Gilmore color. Councelor Woodley. Yes. Gilmore here. Roden. Yes. Spottight. Yes. Stone. Yes. Mayor. Yes. And the motion carries. Thank you. On the new business, any matter that's not known or which could not have been reasonably foreseen prior to the time of posting the agenda in accordance with section 3119, title 25, Oklahoma statutes. Do we have any new business? We do have new business. We can take that to the end.

Oh, okay. We do have new business, but they'll bump that to the end. Then we'll move on to stack reports. Have any staff reports? No, no staff report. Interim city manager report.

Just a couple points. Um, I think everybody's aware that the uh American Lion has announced that they will be moving into the industrial park. We have the contract that was sent. Um we are going to put it on the next agenda for council's approval uh to sign. That will be their commitment to us and our commitment back to them. Um as you know, we kicked off the month of October with a sober October event at that took place over the courthouse. Very successful um program. And I think the governor has recognized Miss Ward's efforts as well. So that was that's good on our city. Got some good good uh spotlight for that. Uh airport terminal open house is currently scheduled for the public on the 25th of October. We're actually having an official uh ribbon cutting ceremony on the 24th on the Friday. Um we have some out of town guests coming in for that. There'll be some speech making and uh we'll be showing off our new facility. Kudos to Billy and Eric. They've worked really hard to get get it open and ready. I think as of today they're operating out of there. Is that right? Did I understand that right? Okay, good. So, they're now actually operating out of the new terminal.

And uh the last is the Chuckaw language signs. We're making progress with those. Good p publicity on that. So, thank you. All right. Remarks and inquiry by the city council. Councelor Gilmore Woodley Stone. American Lion is holding like an open house or a town. What is that date? Sorry. That uh they will be doing a town hall at 6 PM at Kimichi Tech on the 6th of November. Yes. So if anyone has questions, please feel free to come. Yes. Excellent. Anything else?

Um, I'm going to go back to the special meeting we had on October the 6th and citizens of Macau are having trouble getting on the sewer line. You know, um, we we approved that $108,000 for Stonewall and railroad tracks over there. And I asked, is this going to get Mallister Monument Place sewer to their place? I was told yes. Uh, and apparently that was inaccurate that was told to me in this council cuz uh, Ken called me or texted me the next day before noon and said that ain't they can't hook them up to it and stuff. So the biggest emergency to me that we have Macers that business down there getting their sewer hooked up, not the railroad tracks down there. So anyway, I called Core and I said, "Put on the agenda that we uh um uh resend that vote and we should probably do that too because we were told something that wasn't true in this to me and this whole council." And anyway, immediately they get down there and start working on that for nearly two days down there. And then I pulled it off of the agenda and Kim talked about that and the work stopped and he explained to me about manhole stuff that I really don't understand. But anyway, the the sewer is on the east side of the street. The the business is on the west side of the street. They've got to go under it and that's at the citizens expense to go and cut the highway to get hooked up to the sewer.

It's within the 300 ft of that manhole. So yes. Okay. All right. Well, John, would you on the next agenda, would you change that, however that is, and make no citizen have to pay any more to get hooked on to the city and the sewer in the city of Mac. That isn't right that one person would have to pay. Probably cost several thousand dollar to cut across the street like that. That's the same way it is over in my ha over in my across at my my front of my house. So would you put that on there and we'll put it to the vote that no citizen has to pay anymore to get hooked up to a to a sewer. Thank you. Are there manholes on both sides of the road there?

No. Manholes on the east side of the road. Um what we had uh talked about doing was the city would take the obligation to too much. Okay. Too much. Okay. Gotcha. Anything else council? Uh no vote. Right. I want to thank the Tommy Hills crew or whoever they had come fix some streets where they had been sinking in all over town and uh they've done a good good job over in my ward and I appreciate them taking care of that. Thank you.

Move on to mayor's comments. Uh had a couple of uh nice parades. We had the homecoming parade and indigenous people's parade. Uh and that turned out to be a really nice event out at Chattic Park. Uh then we had the football team and the band and cheer and palm and peppers all come out uh down to the band stand and had a really nice event downtown. Um uh the away game's coming up, but if you made the game uh Friday night 55 to zero, so the the Bucks did pretty good. So come out and join us at the at the next one um at our band contest. Uh so this was an invitational. I think you had anything from 3 or 4 A to 6A. In the 5A category, uh the Mallister band came in first. Um what do you call that? It's the I went blank. It's not It's not like semifinals, but qualifying uh came in first. They had the best color guard, best music, and best visual on that. And then turned around and went to finals and uh pulled second. Wow.

on that. So,

really, really good year. And if you haven't seen the show, come out and see the show. It was absolutely phenomenal. Uh, it is a great show. Um, talked a little bit about the uh American um line announcement. Um, really want to give Ken and Billy, you know, a big shout out on this. I know for the the general population um and it's one of my frustrations is is government does not move fast enough. I'm always just trying to to get across the line. It seems like it takes forever, but we we have literally been having this conversation since September of last year. I mean, that that's how long some of these deals take and and and we're just now to the first agreement of of moving forward. So please understand how much we work in the background for these projects and it just takes time. I mean there there are so many conversations and vetting and seeing what utilities and space and studies and everything we have to to bring those together. But that that has been a long project and and every I' I've toured their facility uh talked with their CEO quite often and I think it's going to be a really great company to come in. Um I know we're going to have the uh town hall to visit about a little bit more. The number one concern that seems to come up uh is any kind of water contamination and just wanted to reiterate that that is a closed loop system, which just means that they're they're not flushing any um toxic material out to our water system. It's it's all taken care of right there. So, I think that is it on that. So with that, uh, we'll convene as Mallister Airport Authority. Uh, need a motion to approve minutes from the September 23rd, 2025 regular

meeting Airport Author Authority. Confirm action taken on city council agenda item C and adjourn. Motion. Councelor Gilmore. Second. Councelor vote right. Court. Councelor Gilmore. Yes. Vote right. Yes. Rhoden. Yes. Woodley. Yes. Stone. Yes. Mayor.

Yes. And the motion carries. I'll take a motion to convene as the Mallister Public Works Authority. Motion to include approval of the minutes from September 23rd, 2025 regular meeting of the Mallister Public Works Authority. Confirm action take on city council agenda. Consent agenda item C M regular agenda item three. Item four and item five. been adjourned. Motion councelor boatright second. Councelor Rod. Councelor Boight. Yes. Rhoden. Yes. Gilmore. Yes. Woodley. Yes. Stone. Yes. Mayor.

Yes. And the motion carries. I'll take a motion to convene as Mallister Economic Development Authority Trust. Motion to include approval of minutes from September 23rd, 2025 regular meeting of the Mallister Economic Development Authority. Uh confirm action taken on city council agenda item C and adjourn. Councelor Gilmore. Second councelor Ro. Councelor Gilmore. Yes. Roden. Yes. Woodsley. Yes. Stone. Yes. Boight. Yes. Mayor. Yes. The motion carries. Now we want to circle back to new business.

Yes sir. Staff will request an executive session as authorized by 25307B4 discuss receive confidential communication with city attorney receing the pending case of Bedford versus the city of Mallister in the United States District Court for the Eastern District of Oklahoma and take appropriate action in open session. Okay. Take a motion to go into executive session. Motion councelor vote right. Second councelor Stone Cage. Councelor vote right. Yes. Stone. Yes. Gilmore. Yeah. Yes. Matt Rooden. Yes. Mayor. Yes. The motion carries. for now.

58. Reiterate a motion, please. Honorable mayor, members of the council, the council did convene an executive session as authorized for 25 West 37B for receive confidential communication with the city attorney regarding the pending case of Bedford versus City Mallister pending in the United States District Court for the Eastern District of Oklahoma. No boards were taken or polls cast. However, at this time, I do believe an appropriate motion would be to authorize the city attorney to settle the case as discussed in executive session. Do we have a motion? Motion. Councelor Bo rightight. Second, councelor Woodley. Cage color. Councelor Boight. Yes. Woodley, yes. Gilmore, yes. Stone, yes. Rhoden, yes. Mayor,

yes. The motion carries. We'd like to remind you to help us control the pet population. Have your pets fade or neutered. And we are ajourned.