City commissioners approve over $375,000 in expenditures

Sallisaw City Commissioners approved Monday spending more than $375,000 to purchase a van for the senior nutrition program, construct a restroom facility at the sports complex walking trail along with purchasing electric materials for the project, and to contract engineering services for the Drake/Lennington water loop.

The commissioners approved a purchase order issued to Creative Bus Sales of Indianapolis in the amount of $186,389 for the purchase of a Lone Star Promaster 3500.

The city was awarded a reimbursement grant from the Oklahoma Department of Transportation’s (ODOT) Section 5310 Enhanced Mobility of Seniors and Individuals with Disabilities allowing the city to purchase a Lone Star Promaster van. The van will be utilized by the senior nutrition program to allow seniors and persons with disabilities access to meals and services.

The current van being used by the senior nutrition program is a 2007 Ford Starcraft, and was purchased through the same grant program. The van is in disrepair and has been removed from the 5310 program.

ODOT will reimburse the city $144,160 of the purchase price. The city is responsible for the remaining $42,229.

City Manager Keith Skelton told the commissioners delivery of the van is expected to be nine to 12 months.

The commissioners also approved two purchase orders associated with the construction of a 17 ft. x 9 ft. 10 in. restroom facility at the Sallisaw Sports Complex walking trail.

Approved was a purchase order issued to MGS Construction Services of Sallisaw in the amount of $23,756 for the construction of the facility, as well as approval of a purchase order issued to Anixter of Oklahoma City in an amount not to exceed $47,000 for the purchase of electric materials for the restroom project. Construction of this line will also allow the city to install electric service along the area of the future soccer field development on the west side of Steve Davis Parkway. When construction is complete, provisions are in place for the facility to be secured at night, and the city parks department will be in charge of cleaning and maintenance at the site.

The commissioners also approved a contract for engineering services between the city and Neel, Harvell and Associates, P.C., consulting engineers for the Drake Road/ Lennington Road water loop in the amount of $118,500.

The contract allows Neel, Harvell and Associates to begin engineering work on the project, which expands the water line size from U.S. 59 South, west on Drake Road to Shiloh Road/ Mockingbird Lane, then north to Lennington Road. The project completes a much-needed loop to improve water pressure and volume in the area, and allows the city to prepare for future development along Drake Road. Estimated cost of the project, including engineering fees, is $1,278,493.

For this project, the city has been awarded a $626,461 grant through the Oklahoma Water Resources Board. The city will match this grant award by using $652,032 from its recently received American Rescue Plan Act funding.

Other business

The commissioners also:

• Approved City Manager Keith Skelton’s request to temporarily increase spending limits in an amount not to exceed $50,000. Spending limits for the city manager had previously been capped at $25,000.

“Due to national supply chain issues, staff continues to have difficulties acquiring materials for daily operating tasks. Materials such as transformers, electrical distribution materials, piping, bolts, etc., are becoming difficult to obtain,” Skelton told the commissioners. “To try and alleviate some issues, we need to purchase additional quantities of materials needed to maintain our utility systems. The most concerning are items needed to maintain the electric system and install new services.”

Per Section 2-242(e) of the Sallisaw Code, Skelton requested an increase to the city manager’s spending authority to an amount not to exceed $50,000 for the time period from Feb. 13 to the end of the current fiscal year (July 31). This allows an increase in the inventory of materials needed to maintain utility systems and/or connect new services, and includes, but is not limited to electric distribution materials, water and sewer line materials.

Skelton said the temporary increase was something that was authorized in 2022, but had been allowed to expire.

• Approved declaring surplus for purpose of donation to another government entity a SAFRAN Morpho fingerprint system, which has recently been replaced by a newer model. The fingerprint system, although obsolete, is still operational and can be used for taking prints and printing cards. The system was previously used by the Sallisaw Police Department, and will be donated to the Muldrow Police Department.

• Conducted a public hearing to determine if properties located at 304 S. Main Street and 306 S. Dogwood Street are public nuisances.

Structures on the properties were damaged in a fire and are a total loss — 304 S. Main Street on Dec. 11, 2022, and 306 S. Dogwood Street on Nov. 16, 2022. The structures are unsecured, and there are safety concerns due to the lack of structural integrity. The Building Development Department believes the structures are beyond repair and should be removed.

The commissioners concurred with the Building Development Department for the Main Street property, and staff was directed to abate the nuisances. For the Dogwood Street property, however, heirs to the property appeared before the commissioners and explained that abatement efforts had been underway and that they would like to continue such efforts. The commissioners granted a 30-day extension for abatement to continue, and will review the heirs’ progress at the commission’s March 13 meeting.

• Approved a plat presentation of Lee Creek Estates by INSU, Inc., which was approved by the Sallisaw Planning Commission at its Feb. 7 meeting. The proposed subdivision is located on South Buddy Spencer Avenue, and the intent is to construct more than 30 single-family dwellings and 16 duplexes.

Additionally, the commissioners approved a request by INSU, Inc., to rezone the property on South Buddy Spencer Avenue from agricultural (A-1) to residential (R-2) with an emergency clause. The planning commission had previously approved the request. Dirtwork on the property has already begun, which is allowed prior to rezoning.

The commissioners also received updates on current and future projects, received an update on the financial status of the city and activities of the finance department, received an update on economic development and grant activities, and received administrative reports.

Among the items included in the updates on current and future projects, Building Development Director Keith Miller reported that the Big Lots project is back on track, and that construction is expected to begin in May.

In addition, the city pool will not open this summer, but is expected to be ready for 2024.

Administrative report

For the city manager’s report, Skelton told commissioners: • Staff recently met with the city’s health insurance consultant regarding the upcoming renewal. The claims and numbers for the previous year look favorable to the city, and at this time, no significant increases in premiums are expected.

• Staff recently reviewed the 65% plans for the new swimming pool. Staff made comments and submitted them to the architect. The city is currently on track to bid the project near the end of March, with the bid opening by the end of April.

• Staff continues to research ways to provide the required CDL training for new employees.

• Staff is currently reviewing DiamondNet rates and package offerings. The city hopes to bring this to the commissioners for review within the next few months.

• The city has been awarded an Oklahoma Water Resource Board grant in the amount of $626,461 for the Drake Road, Shiloh Road/ Mockingbird Lane, Lennington Road water loop.

• When City Hall closed due to recent winter weather, the tree trimming bid must be re-bid at a later date. The City Clerk is currently working on new dates for this project.

• Skelton has re-organized the telecommunications and information services departments. Clint Smith, who is in the process of moving his office to City Hall, has been named IT manager and will assume responsibility for both departments. For DiamondNet, Doug Martin will assume daily supervision responsibilities of telecommunications as the senior network technician. This move will also free up Robin Haggard from overseeing information services. Over time, it is expected that Haggard will also turn over a lot of the back-office operations of DiamondNet to Smith as well. Overall, this will allow for better coordination and long-range planning of the city’s IT functions.

• Skelton also announced that Haggard has been promoted to assistant city manager in addition to her role as director of finance.

• The Power Cost Adjustment passed on to the city by the Grand River Dam Authority continues to be a concern of city staff. The GRDA customer group continues to visit with GRDA on this matter.

Sallisaw Municipal Authority

Immediately following the city commissioners’ meeting, the board for the Sallisaw Municipal Authority convened.

• The board acknowledged a notice of assignment between Sequoyah Renewables LLC and Sallisaw Energy LLC.

Per the executed lease and landfill gas rights agreement between the Sallisaw Municipal Authority and Sequoyah Renewables, LLC, Sequoyah is permitted to assign rights and obligations to an affiliate. Recently, Sequoyah Renewables partnered with the Williams Companies, Inc., for the Sallisaw methane project. With this partnership, Sequoyah and Williams have formed a new entity, Sallisaw Energy, LLC, to operate the Sallisaw methane project. Sallisaw Energy, LLC will be wholly owned by Sequoyah and Williams.

• The board approved a resolution entering into an interlocal cooperative agreement between SMA and the Tahlequah Public Works Authority (TPWA) establishing the Oklahoma Municipal Utility Services Association (OMUSA).

Recognizing the value and need for municipal utilities across Oklahoma to share ideas, train municipal professionals and aid each other in times of need, the board of directors of the Municipal Electric Systems of Oklahoma (MESO) established the OMUSA. Membership in the new organization is open to cities, towns, municipal trusts and tribal utilities. When adopted, the OMUSA will be formed as an Interlocal Cooperation Agency (ICA), established under the Interlocal Cooperation Act. To establish the OMUSA under the ICA, there must be at least two entities to approve the forming of the organization. In discussion with the MESO board of directors, the general manager of the Sallisaw Municipal Authority (also the city manager) has volunteered to be one of the forming agencies. The other agency that will form the ICA is the TPWA.

The current OMUSA is set up as a public trust, similar to how the city of Sallisaw and the Sallisaw Municipal Authority are set up. The current OMUSA trust is limited in that it doesn’t provide for new members to join and serve on the board, especially if named members cease to continue participation. If OMUSA cannot conduct business in the future, it places the future of MESO in jeopardy. Thus, the reason for moving to an interlocal governmental type organization with stipulations on how to replace member cities and board members.

As a public power community, Sallisaw will greatly benefit from the new organization. The SMA general manager will serve on the original board for a term ending in June 2026. At that time, they will either be re-elected or replaced by a vote of the OMUSA membership. The other original members of the OMUSA board will serve staggering terms. The Sallisaw city manager will also continue to serve on the MESO board of directors during the same time period.

The SMA general manager and the city attorney have participated in the creation of the ICA document, and have reviewed the final draft of the document as presented. Both approve the document as presented.

• The board also received an update on the GRDA power cost adjustment (PCA). Skelton reported that the GRDA’s PCA rate trends in conjunction with the natural gas index. The cost of natural gas continues to be a main factor in the GRDA PCA costs passed on to GRDA customers. The excess cost of the PCA, not included in the city base rates, is calculated and passed on to customers as the cost of power base adjustment (CPBA) charge.

March’s PCA is expected to be $0.03736 per kWh, which is down slightly from February ($0.03822) and January ($0.03806).