Meeting Summary
The Shawnee Municipal Authority considered a resolution to approve a $65.6 million Clean Water SRF loan for critical wastewater treatment plant upgrades. The proposal involved consolidating operations to the North plant at a bid cost of $103.6 million, to be funded by a graduated utility fee or a potential half-cent sales tax. The motion to approve the loan and associated funding mechanism failed, leaving the city without an immediate plan for the urgent upgrades.
Key Decisions & Votes
Clean Water SRF Loan for Wastewater Treatment Plant Upgrades
1:20:00A resolution to approve a $65.6 million Clean Water SRF loan from the Oklahoma Water Resources Board to fund the $103.6 million Option 2 (consolidating wastewater treatment to the North plant) was denied. This decision means the city will lose the current bid and favorable interest rates, and must re-evaluate its approach to critical wastewater infrastructure upgrades.
Financial Matters
Clean Water SRF Loan from OWRB
Loan sought to cover a portion of the wastewater treatment plant upgrade project.
Wastewater Treatment Plant Upgrade - Option 2 Bid
The current bid received for the Option 2 project, which involves consolidating wastewater treatment to the North plant.
Proposed Graduated Utility Improvement Fee
A proposed fee increase for utility accounts, starting at $6 and increasing over four years, intended to generate revenue for debt service.
Proposed Half-Cent Sales Tax
A potential alternative funding mechanism that could replace the utility fee increase if approved by voters in a future election.
Principal Forgiveness from OWRB
A grant from OWRB available if the loan was approved at the August meeting.
Engineering and Design Costs for Option 2
Costs incurred for the engineering and design of Option 2, which would be 'burned' if the project is abandoned.
Coming Up
Tabled
- Re-evaluation of wastewater treatment plant upgrade options and funding strategies
Deadlines
- Oklahoma Water Resources Board meeting on August 16th (missed)
- 60-day bid validity for Option 2 (expired due to no action)
- 75-day deadline to file for November 8th sales tax election (if pursued)
Watch For
- Potential future sales tax election for wastewater funding
- Further increases in project costs and interest rates due to delays and market conditions
- Escalated enforcement action and civil fines from ODEQ regarding current plant failures
Agenda Summary
Item 1 (Shawnee Municipal Authority): Consider and take action with respect to a resolution of the Shawnee Municipal Authority approving and authorizing a Clean Water SRF loan from the Oklahoma Water Resources Board in the total aggregate principal amount of $65,635,000.
Presentation and extensive discussion on two options for wastewater treatment plant upgrades, project costs, financial options (utility fee vs. sales tax), and the urgency of securing a loan.
Item 2 (Shawnee Municipal Authority): Confirm action taken by City Commission on agenda item number two with respect to an ordinance amending portions of the Shawnee Municipal Code Chapter 26 Utilities by adding and adopting a utility improvement fee.
Ordinance to add a utility improvement fee.
Item 3 (Shawnee Municipal Authority): Confirm action taken by City Commission on agenda item number three with respect to resolution updating the city fee schedule by setting the monthly rate of the utility improvement fee.
Resolution to update the city fee schedule for the utility improvement fee.
Item 4 (Shawnee Municipal Authority): Adjournment.
Adjournment of the Shawnee Municipal Authority meeting.
Item 1 (City Commission): Consider and take action with respect to a resolution of the Board of Commissioners the City of Shawnee, Oklahoma, the City approving action taken by Shawnee Municipal Authority.
Resolution to approve action taken by the Shawnee Municipal Authority regarding the SRF loan.
Item 2 (City Commission): Consideration of an ordinance amending portions of the Shawnee Municipal Code Chapter 26 Utilities by adding and adopting a utility improvement fee.
Ordinance to add a utility improvement fee.
Item 3 (City Commission): Consideration of a resolution updating the city fee schedule by setting the monthly rate of the utility improvement fee.
Resolution to update the city fee schedule for the utility improvement fee.
Item 4 (City Commission): Adjournment.
Adjournment of the City Commission meeting.