The Ponca City Board of Commissioners met in regular session on May 23, 2022. Mayor Homer Nicholson called the meeting order, which was followed by the pledge of allegiance. Commissioners Bodick, Chapman, Scott, and Taylor were present.
Consent Agenda
Under the Consent Agenda, the City Commission approved the minutes of the Ponca City Board of Commissioners regular session held May 9, 2022 and work session held May 16, 2022; a resolution appropriating money for the payment of claims against the City of Ponca City; a resolution of the Board of Commissioners of the City of Ponca City amending the operating budget of various funds for Fiscal Year 2021-22; a resolution designating certain City employees as purchasing officers with authority to make purchases against City and municipal trust appropriations (Annual Fiscal Year 2021-22); a resolution designating certain City employees as purchasing officers with authority to make purchases against City and municipal trust appropriations; an award of the audit of financial statements for Fiscal Year 2021-22 (Year Ending June 30, 2022) to BT & Co., P.A. Certified Public Accountants, of Topeka, Kansas; and an advertisement of bids to obtain unit prices for items of work performed for sidewalk maintenance during the period July 1, 2022 through December 31, 2022.
City Manager’s Report
Under the City Manager’s Report, City Manager Craig Stephenson announced that the City of Ponca City will observe Memorial Day on Monday, May 30, 2022: the Ponca City Landfill will be closed on Monday, May 30, and will reopen on Tuesday, May 31; the Ponca City Library will be closed on Saturday, May 28 and will reopen on Tuesday, May 31; the Ponca City Senior Center will be closed on Saturday, May 28 and will reopen on Tuesday, May 31; Marland’s Grand Home will be closed on Sunday, May 29 and will reopen on Tuesday, May 31; the Marland Mansion and Estate will be closed on Sunday, May 29 and will reopen on Tuesday, May 31; the Ponca City RecPlex will be closed on Monday, May 30, and will reopen on Tuesday, May 31; Lew Wentz Golf Course will be open on Monday, May 30; and Residential Refuse will not be picked up on Monday, May 30, and will resume on Tuesday, May 31. As there will be no residential trash collection on Monday, May 30, Stephenson reminded the public to please only put trash out on the scheduled day of collection. Trash left out overnight or for several days is susceptible to scatter from animals and/or weather which can result in a City code violation.
Stephenson reported that AMBUC and Wentz Pools will open on Monday, May 30 and he reminded the public of several upcoming events, including Cruzin Grand, June 3; Lake Ponca Car Show, June 4; L.A. Cann Gardens Herb Fest, June 4; 101 Wild West Rodeo, June 9-11; and Rodeo Parade, June 11.
Stephenson announced that the start date for the Union Street bridge re-decking project is June 6. Union Street will be closed during the entire 90-day project. Highland Avenue will be closed during the removal of the deck, and then opened to at least one lane in each direction for the remainder of the project. Detour routes will be set up for both streets.
New Business
Stormwater Ordinance
Under New Business, the City Commission approved an ordinance amending the City Code, Title 9, Chapter 8C, Section 8, Stormwater utility service charge rates, repealing ordinances in conflict; providing for severability and declaring an effective date. The rates, fees, and charges made by all City Departments are required to be reviewed each year. Due to the increased costs of required mandates, materials, labor, fuel, and other operating expenses, staff recommended a $0.25 per month increase for Stormwater utility rates and charges and the updated ordinance reflected this change.
Water Ordinance
The City Commission approved an ordinance amending the City Code, Title 9, Chapter 8A, Section 6 in regard to Water fee charges to provide for costs recovery in all aspects of Water collection, treatment, distribution, capital expenses associated therewith and recovery of costs of support services furnished by various City departments, repealing ordinances in conflict; providing for severability and establishing an effective date. By charter, the Board of Commission reviews all utility rates each April. The Mayor and Commissioners discussed water rates with the Environmental Services staff during the budget hearing meetings held on April 18 and 19, 2022. At that time, it was agreed upon that a 5% charge increase be implemented on all residential, rural and commercial customers. This rate adjustment is necessary in order to help the City’s Water Production and Water Distribution Division recover some of the increased costs associated with routine operation and infrastructure improvement projects.
Solid Waste and Landfill Ordinance
The City Commission approved an ordinance amending the City Code, Title 6, Chapter 3, Section 10 to provide for costs recovery in certain Solid Waste collection and Landfill rates, repealing ordinances in conflict, providing for severability and establishing an effective date. The Environmental Services staff discussed service rates with the Mayor, City Commissioners, and City Management at the budget hearings held on April 18 and 19, 2022. At that time, it was agreed upon that a 5% rate increase be implemented on all residential and commercial solid waste services. This rate adjustment is necessary in order to help the City’s Solid Waste Division recover various costs associated with refuse collection and disposal, which include personnel, operation and maintenance, capital improvement projects, permitting fees, funding to City Landfill’s closure and post-closure care accounts, providing for the Equipment Depreciation Schedule, and supporting the City’s Recycling Center.
Mobile Food Vendors Ordinance
The City Commission approved an ordinance amending Title 5, Chapter 10 of the City Code of Ponca City, entitled Mobile Food Vendors; providing for definitions; requiring an annual license; establishing licensing requirements; providing for location and operational rules and regulations; permitting mobile food vendors to operate on public lands and rights of way; and providing for repealer and severability. The business of providing mobile delivery of ready-made food has expanded significantly in past years and the presence of mobile food vendors has become quite common at special events and parades, but also in the parking lots of many commercial retail centers around Ponca City. Mobile food vendors sometimes enjoy an advantage over brick and mortar establishments, because they are not required to provide customer parking and sanitary facilities at locations where they set up business. There is also the matter of sales tax remittance. While some vendors are certainly charging and remitting sales tax, without oversight, there is a reasonable assumption to conclude that many are not remitting sales tax. The same would hold true for food safety and code compliance. Recent Code changes at the State and National level now require proper ventilation and even a suppression system when food is being fried or if grease vapors are being created by cooking appliances.
At the Work Session held on May 16, 2022, this matter was discussed at length and staff was directed to prepare an ordinance that would address City Commission concerns. Currently, Mobile Food Vendors are defined and regulated in Title 5, Chapter 4 under the term Outdoor Seller. Although the application and background checks for outdoor sellers, peddlers and solicitors are quite extensive, the unique nature and operations of a typical Mobile Food Vendor require that they be defined and regulated on their own merits and without the need for background checks. The approved ordinance was drafted for the purpose of creating a fair and equitable set of guidelines that will permit the continued utilization of these popular alternatives to standard dining practices, while at the same time implementing a reasonable level of oversight to insure operations are conducted in a safe manner, nearby retail establishments are respected, and sales tax is remitted on the sale of food items. The annual license required for all Mobile Food Vendors to operate within the City will be $100.00. Each vendor will be required to submit a copy of a license from a county health department in Oklahoma confirming compliance with the State’s food service establishment regulations. Each vendor will also be required to verify that he/she is registered with the Oklahoma Tax Commission for the payment of sales tax, or submit other proof that sales tax has been or is being paid on the merchandise sold or to be sold. And, liability insurance will be required when a vendor is permitted to operate on City-owned property, including parks, with the City named as an additional insured on the insurance policy.
Fiscal Year 2022-23 Budget
The City Commission approved a resolution of the Board of Commissioners of the City of Ponca City approving the operating budgets of the various City funds for Fiscal Year 2022-23. The Fiscal Year 2022-23 Annual Budget is required by State Statute to be adopted by the governing body, by resolution, no later than seven days prior to the beginning of the new fiscal year that begins on July 1, 2022. The resolution, summary budget, and budget book are the product of the past six-month’s work to provide a financial and work plan for the coming year. The budget was prepared through a process of multiple meetings with the City Commission, City management and staff. The proposed budget is balanced, and in legal form. The budget book is 260 pages and is available for residents to review at Ponca City Library, City Clerk’s Office and the City’s website www.poncacityok.gov.
The total proposed budget for 2022-23 is $125,153,952, which represents a 10.35% increase from this current year’s budget. The General Fund represents $28,786,838 of the total expenditures and is budgeted at an increase of 9.27% from the current year budget. The last few years have been extremely busy for City staff as they have worked diligently on COVID-19 issues, the 2020 ice storm, as well as the 2021 polar vortex and subsequent snow storm. The Federal government, in an effort to keep the economy moving forward, has continued to release additional funds to communities via the states. As program dollars remain available, City staff has continued to be a prime candidate for these additional funds due to past success. While funding has been secured, the real work is the ongoing administration of those funds to ensure compliance with the associated regulatory requirements, as this piece of the business will continue for another 24-36 months while these funds are spent. Stephenson stated, “Through all this the employees of the City have worked continuously, conscientiously, with pride and without complaint making sure all services were provided to the community; water, electric, sanitary sewer, solid waste, police, fire, ambulance, streets, parks, library, etc. They are to be commended for their dedication and commitment to providing high quality service to the share owners of the City. They are a tremendously dedicated workforce who cares deeply for their community. As a community and organization, we have been extremely resilient over Ponca City’s history, weathered many economic storms and natural disasters, and have become stronger during the recovery and subsequent future.”
Included in the Fiscal Year 2022-23 budget is $15,656,580 in capital improvements. This is a 32% increase in capital expenditures over the current year. This is a robust capital improvement program for next year and reflects the Commission’s desire to be prudent in managing the City’s assets. Making consistent improvements and repairs to the infrastructure, ensures residents that the City Commission is being fiducially responsible. Sales tax revenues are budgeted at a 3% increase over the current year, while Water and Solid waste utility rates are budgeted at a 5% increase, and Stormwater utility rates are budgeted at a $0.25 increase. There is a 0% rate adjustment for Wastewater, Ponca City Energy, and Ponca City Broadband. In essence, prior to last year’s 1% across-the-board increase, there have not been any rate increases, except for Solid Waste, since Fiscal Year 2017-2018. The City Commission continues to make small and prudent increases in utilities to ensure the ability to deliver quality services to the public and continue to meet the needs of the community into the future.
Non-Utility Rates, Fees, and Charges Resolution
The City Commission approved a resolution setting non-utility rates, fees, and charges for the City of Ponca City and the Ponca City Utility Authority. The City operates many business units that provide diverse services to our community. When the re-codification of the City Code project began in 2000, staff set many goals tied to the project. One of these major goals was the standardization for City rates, fees, and charges. After much research and discussion, staff proposed returning to a method of setting all utility rates by ordinance, as they are major financial operations and represent critical services. Regarding all other rates, fees, and charges, staff set a goal to standardize the way these are set, including a comprehensive review annually. Addressing all other rates, fees, and charges on one Omnibus Resolution creates one place where they can be reviewed by the City Commission, management, and the public alike. This is the eighth comprehensive update of the omnibus resolution of all non-utility rates and fee. The resolution includes individual rate changes that were previously approved by resolution and new proposals.
(PCUA) PONCA CITY UTILITY AUTHORITY
PCUA Consent Agenda
Under the PCUA Consent Agenda, the PCUA Trustees approved the minutes of the Ponca City Utility Authority regular session held May 9, 2022; a resolution appropriating money for the payment of claims against the Ponca City Utility Authority of Ponca City, Oklahoma; a resolution of the Ponca City Utility Authority, Ponca City, Oklahoma amending the operating budget of various PCUA funds for Fiscal Year 2021-22; a resolution setting non-utility rates, fees, and charges for the City of Ponca City and the Ponca City Utility Authority; an annual pledge and guarantee document which is part of a participation agreement with ALFA (Association For Landfill Financial Assurance); and an acknowledgement receipt of the Oklahoma Department of Environmental Quality Construction Permit WL000036220114 for the construction of 289 linear feet of 6-inch PVC potable waterline, 216 linear feet of 12-inch steel casing and all appurtenances to serve the Cannon Honda waterline extension, Kay County, Oklahoma.
New Business
Fiscal Year 2022-23 Budget
The PCUA Trustees also approved a resolution of the Board of Trustees of the Ponca City Utility Authority approving the operating budgets of Water, Ponca City Energy, Ponca City Broadband, Solid Waste, Landfill Closure, Solid Waste Depreciation Reserve, Utility Billing, Wastewater, Stormwater, and Technology Services funds for Fiscal Year 2022-23. The Fiscal Year 2022-23 Annual Budget for the PCUA is in resolution and book form. The budget is a product of the past six month’s work to provide a financial and work plan for the coming year. The budget was prepared through a process of multiple meetings with the City Commission, City management, and staff. The proposed budget is balanced, and in legal form. The budget book is 260 pages and is available for residents to review at Ponca City Library, City Clerk’s Office and the City’s website www.poncacityok.gov.