JANUARY 9, 2017 MINUTES

DAVIS CITY COUNCIL AND DAVIS MUNICIPAL AUTHORITY
MONDAY, JANUARY 9, 2017 7:00 P.M.
CHAMBER OF COMMERCE
 100 EAST MAIN
DAVIS OK 73030


1.    Call to order Davis City Council by Ed Parks.

2.    Roll Call: Mayor Ed Parks, here, Vice-Mayor Josh Oakley, here, Councilman Stan Jones, here, Councilman Darryl McCurtain, here, Councilman Brett Knight, here.

3.    Prayer led by Stan Jones.

4.    Pledge of allegiance led by Ed Parks.

5.    Consideration and possible action to approve Consent Agenda including minutes of prior meetings and claims. McCurtain made motion to approve Consent Agenda claims. (Brett Knight advised that the prior minutes were not in the packet, so they will be approved in the February Meeting). Second by Knight. Vote: Jones, yes, McCurtain, yes, Knight, yes, Oakley, yes, Parks, yes.
 
6.    Consideration and possible action to approve items removed from Consent Agenda. Knight stated that he didn’t feel comfortable voting right now. He doesn’t think anyone in here would like for them to take the time to read it all now, we will just move it to the next meeting.  

7.    Consideration and possible action to adjourn to possibly sell lot 5 at the City’s Industrial Park to Carlos Vinson for Construction Company. Jones made motion to approve the sell of lot 5 at the City’s Industrial Park to Carlos Vinson for Construction Company in the amount of $3,500.00 per acre, in which this is for 2 acres. Second by McCurtain. Vote: Jones, yes, McCurtain, yes, Knight, yes, Oakley, yes, Parks, yes. Tom stated that Carlos is one of our local contractors and he wants to build a construction shop. It’s across the fence to where he lives. He talked to Roger Pulley with the Commerce Department and he said prices for land in the Industrial Parks are jumping but thought a fair price would be about $5,000.00 an acre and Carlos wants two acres. Carlos stated that if the board thought that was a fair price, he would be ok with that. If the price was right, he could go home and get cash, if not, he will have to go to the bank. McCurtain asked how soon it would be to begin construction. Carlos stated depends on the price and that he was looking at about $15,000.00 just to get functional. It would be just storage for now but would like to eventually start doing modular homes and tiny homes.    

8.    Presentation of FY 2014-2015 Audit by Chris Angel of Angel, Johnston, Blasingame, P.C. Chris Angel stated that Reba’s office did the draft report and he did the audit opinion on the financial report. His findings on the General Funds is that the expenditures exceed total appropriations by $250,918 due to the lack of proper procedures and controls for monitoring the City’s expenditures in relations to their approved budget appropriations allowed non-compliance with Oklahoma Statues. The City should closely monitor each budget on a monthly basis and not approve any expenditure exceeding appropriation until addition amendments have been made and approved. The City Council can authorize the City Manager to approve all transfers of appropriations between budgeted categories with approval by Council. For the fiscal year under audit the City was not able to locate the monthly utility reports. In addition, the City was unable to locate certain receipts and there is a large stack of receipts not filed. The City was in transition with personnel, changing of locations for records and changing of accounting software in the middle of the fiscal year. The current personnel were unable to print the monthly utility reports for the period under audit from the new software. As the City cannot document all its activity during the 2014-15 fiscal year there is an increased potential for unlocated errors or fraud. We recommend establishing retention procedures and establishing a clear understanding as to the importance of proper record retention. 

 
In our expenditure testing of purchase orders, we noted of the forty selections for testing, four purchase orders with attached invoices could not be located, two of the 36 did not have original invoices attached, and fourteen were not signed as goods or services being received and fourteen of the purchase orders were dated after the invoice. Lacks of consistency exist in following procedures to properly implement state purchasing laws. There is an increase likelihood budgets could be exceeded and improper purchases could be made. There was no monthly reconciliation of utility receivables. This is required to make sure all activities in customers’ accounts are properly recorded. Lack of established procedures to reconcile utility billings and receivables on a timely basis. Improper adjustments to customers’ accounts could occur and not be identified. We need to establish procedures to ensure all cash receipts are recorded and that all adjustments are appropriate. Rheba stated on reconciliation should be done on a monthly reconciliation. We are doing that now. Just as a background on the 2014-15 year, we were still in the software, Sequoyah and had different employees, January we started the new software and in March we started the new utility billing so this was the transitional year. We’re hoping to improve for the 2015-16 year.    

9.    Consideration and possible action to approve Resolution for City Election. McCurtain made motion to approve Resolution for City Election. Second by Oakley. Vote: Jones, yes, McCurtain, yes, Knight, yes, Oakley, yes, Parks, yes. Tom stated that we have a City Election coming up in April. It will be for Ward 1 and Ward 2, Darryl and Stan’s seats. We have to get it posted with County and the newspaper 15 days prior to filing period, February 6-8.    

10.    Public Safety Report by Danny Cooper. The Report is in the packets. They also have an annual report for the last three years. 

11.    Chamber Report by Alie. First Chamber Meeting of the year is this Thursday at noon with Lindsey Lamar Owens with Small Business Development Center. She will speak on social media as a tool for your business. The public is welcome. Meals are $8.00/person. January 19 Lindsey is scheduling one-on-one sessions at the extension office in Sulphur to answer questions and assist with social media marketing plan, which is free. Contact Chamber to schedule. February 2 we will have a Google Workshop with Lindsey to make sure your information on Google is correct. That afternoon the ones that had set up with the one-on-one will meet with Lindsey will receive their free social media marketing plan. That evening is the Murray County joint Chamber Banquet.    

12.     MCIA Report by Melissa Pratt. She has nothing new to report.  

13.    City Manager Report by Tom Graham. Tom stated that were still getting paper work together with Vision Bank on the loan for Methodist Church. Working with the development group concerning possibility of lighting Highway 7 from Interstate into the City limit. They are supposed to be getting me a price on this but haven’t got it yet. We are also working with ODOT for traffic light on Highway 7 and Hanover. With development company coming in, were trying to prove we have enough traffic coming through there so they are doing a study. We don’t have any new information with the FEMA project yet. We’ve had 2 meetings that we had to cancel but we are meeting tomorrow at 1:00 so hopefully we will have something then.   

14.     No Appearances and petition from the audience. (Limit of three minutes for each) 

15.    No New Business.

 16.  Adjourn. Motion made by Knight to adjourn. Second by Oakley. Vote: Jones, yes, McCurtain, yes, Knight, yes, Oakley, yes, Parks, yes.


 

DAVIS MUNICIPAL AUTHORITY MEETING

 MONDAY, JANUARY 9, 2017

1.  Call to order Davis Municipal Authority by Ed Parks.

2.  Roll Call: Chairman Ed Parks, here, Vice-Chairman Josh Oakley, here, Trustee Stan Jones, here, Trustee Darryl McCurtain, here, Trustee Brett Knight, here.

3.  Consideration and possible action to approve Consent Agenda including minutes of prior meetings and claims. Knight made motion to approve claim only. Second by McCurtain. Vote: Jones, yes, McCurtain, yes, Knight, yes, Oakley, yes, Parks, yes. McCurtain said that he was questionable on the Johnson Construction claim. It was in reference to the FEMA project, he bid on it and he understood that he thought it was for the purchase of materials already bought not for equipment rentals in the amount of $20,780.00. Tom stated that the Council agreed to pay for his prior request but understanding it was only for material already bought. When the  invoice came in, it was for equipment rental. George Johnson was not at the meeting so they couldn’t get any answers. Darryl asked if we could pull that one and hold until next Council Meeting so that they could get some answers from George. Knight made motion to include pulling that Vendor 00052 to Johnson Construction in the amount of $20,780.00 but approve the rest. Second by McCurtain. Vote: Jones, yes, McCurtain, yes, Knight, yes, Oakley, yes, Parks, yes. 

4.  Consideration and possible action to approve items removed from Consent Agenda. McCurtain made motion to pull Johnson Construction claim until the next meeting so that they could talk to George. Second by Knight. Vote: Jones, yes, McCurtain, yes, Knight, yes, Oakley, yes, Parks, yes.

5.  Consideration and possible action on new 12” water line for Davis High School. McCurtain made motion to approve new 12” water line for Davis High School. Second by Knight. Vote: Jones, yes, McCurtain, yes, Knight, yes, Oakley, yes, Parks, yes. Tom stated that the school needs a new water line. The lines in that area are not big enough to handle a 2 story building with a sprinkler system. After talking with the engineer, we will have to run this line a little over 1,000 feet and will require a DEQpermit. Superintendant, Todd Garrison said that we need the water line. We will be willing to pay a high fee to tap into that line which will benefit the residents in that area as well as us. We can pay a fee for the services being used. The bond issue will not allow the school to spend that money on something that doesn’t belong to them. The water line belongs to the City and the easements around the school do as well. Tom stated that this will be a onetime fee. We are going to tap off that 12” with an 8” and run it down 5th street to the school and tie a fire hydrant into this for more fire suppression about a half a block away from the school. This line will be tied into 2 different 4” lines that will back feed these in that area and will give residents better pressure. The material to do this job is a little over $22,000.00 and I’m opposing that we do this. We already have a fire hydrant so we won’t have to buy that. It will require 3 of our employees to be dedicated to this job for 2 or 3 weeks, depending on weather. So that will make us shorthanded but in the long run, it will benefit the residents and the school, and will have another fire hydrant, which is always a better benefit. We can’t do a dedicated line to them because they don’t own the land so if we did that were still out the money, but then we can’t use it for anything. We do have the funds available. They are willing to share the cost but we don’t quite know what that will be yet because we don’t have everything figured in but the City is going to flip the labor.  

6.  Consideration and possible action to on approving lease contract at Cross Bar Ranch. Oakley made motion to approve revised lease contract at Cross Bar Ranch. Second by Knight. Vote: Jones, no, McCurtain, yes, Knight, yes, Oakley, yes, Parks, no. Tom stated that Council has a new contract in front of them with changes to the amount of money. The changes in money instead of $15,000 for the first 2 years and $25,000 after that, it will be a straight 25 % and will also be 2% of the gross except for special event gate ticket sales and that will be 5% of the net. That is the changes we came up with. Justin Ramsey stated they are going to make some really good things happen. It has huge amount of potential. It will be a $34,000 gain from last year. We want to make Davis grow. We have tried everything that we could possible do to work with Council and give them anything they asked for. We’re trying to keep the money on the front end low to us so that we can put money into the park. And that money averages about $100,000 a year for first 5 years. Marilyn Risner-Burke spoke of how the City took a chance on a man in the late 60’s to develop what is now Turner Falls Park. She urged the Councilmen to take a chance on the group because she saw what happened when the City took a leap of faith the first time around. She reminded the council that “chance” is what gave us Turner Falls. A lady from Sulphur also spoke in regards to raising her kids in Davis and taking them out to the Ranch and riding. There had been time that they didn’t pay because there wasn’t anyone there and we didn’t want to put cash in night drop. A gentleman from Sulphur also spoke in favor to this passing. We feel like what’s good for Davis is also good for Sulphur. It will benefit them as well. It is Murray County. We have a great asset at Cross Bar and it could be even better by passing this contract. Something like this is hard to come by. My family does go out there from time to time. It is difficult to find your way around out there right now. To the Council, I think this is definitely in the best interest of the people.      

7.  Turner Falls Report by Billy Standifer. Attendance in the park is better than last year, even at the Ranch. They have been working on the electrical for the Trading Post that you had approved.    

8.  Public Works Director Report by Bert Curtis. We have finished the drainage on Hanover. They had a major sewer problem south of town that they have been working on.  

 9.  No Appearances and petitions from the audience. (Limit of three minutes for each.) N/A
 
10. No New Business: Darryl stated that the money that shows that we are losing at Cross Bar Ranch, it’s not audited figures nor calculator figures but from Jan to Dec 31 this past year profited $30,000 plus. He just wanted to let everyone know that.  

11. Adjourn. Oakley made motion to adjourn. Second by Knight. Vote: Jones, yes, McCurtain, yes, Knight, yes, Oakley, yes, Parks, yes.