Capital reserve account approved for City of Alva
March 25, 2022
After tabling the Kimley-Horn agreement to develop master plans for Alva’s two parks, the city council discussed opening a separate checking account for the Capital Reserve Fund. Back in 2017 the city council approved such an ordinance with a goal of stockpiling some funds that could be used for larger capital improvement projects. If any funds were designated for this purpose in the past, they ended up being absorbed in the regular city budgets.
City Business Manager Angelica Brady said the city has a small portion of money in savings that could be moved into this account. The city has been setting aside five percent of sales and use tax collected each month to pay off loans made to the general fund account. The planned repayments to the other city budgets are being made with a small balance left over. Brady said this totals $87,750, and this is the amount that would be deposited in the new account.
By setting up a new interest-bearing checking account, the city will be able to monitor the account more easily. Brady said she intends to have this capital reserve ordinance and the city’s stabilization ordinance sent to the ordinance committee for review and updating.
Councilmember Randy Stelling made a motion to open the checking account, seconded by Greg Bowman. Councilmember Taylor Dowling asked what bank would be chosen for the new account. Brady said it would be BancCentral National since that’s where the city’s other accounts are located, and it will be easier to make transfers in and out of the account. Councilmembers voted to approve the setting up the new account with Daniel Winters abstaining since he is employed by BancCentral.
Big OG&E Bill
Last year when OG&E was installing new LED street lighting, they suspended that part of their billing to the City of Alva. From August 2021 to January 2022, the city was not charged. Around the same time, the city office has a new accounts payable clerk who didn’t notice the situation.
When it was discovered, OG&E started sending larger than usual bills to catch up. If the bills are larger than the city manager’s $25,000 spending limit, they have to be brought to the city council for approval.
Monday night, the council approved a payment not to exceed $63,044.86 which includes the regular monthly bill plus a payment on the old lighting bill. Councilmembers voted unanimously to approve paying the bill.
Bull Battle Payment
The city manager’s spending limit also meant she was unable to sign a check from tourism tax funds for an amount not to exceed $33,831.00. Councilmember Connor Martin said the Tourism Tax Committee considered the request from Western Sports Committee for Bull Battle VI. They did not grant the full amount requested, but agreed to fund the two-day event up to $33,831.
Martin said because the event is a full two days, it brings in people to hotels and motels. He said the number of people attending is larger than those attracted for the Big Cruise and Car Show.
After approval by the Tourism Tax Committee, normally the city manager can sign the checks from that fund when receipts have been received. Because this is above her limit, a council vote is required. Winters made a motion to authorize Brady to make the payment, seconded by Martin. The motion carried 7-1 with Troy Brooks voting no.
City council members approved the consent agenda which included minutes of the regular meeting Feb. 22 and the special meeting March 4 as well as claims of $155,426.78 and payroll expenses of $184,901.84.
There were no members of the public present to speak to the council.
A long executive session was held to discuss contract negotiations with the firefighters’ union and communications with the city attorney concerning a pending investigation, claim or action.
No action was taken by the council when they returned to open session.
Alva Utility Authority
Following the council meeting, the Alva Utility Authority (AUA) consisting of the same members, approved the consent agenda including minutes, claims of $148,939.38 and payroll expenses of $49,523.03.
The AUA trustees also voted to approve change order No. 3 on the water well project. A manual transfer switch for the project has been on backorder since work began. Everything is complete except for this switch which is not necessary for the well to operate. The switch allows the well to be operated in the event of an electrical outage. By approving the change order, the project can be declared completed which will allow the $55,000 REAP grant to be closed out and reduce the total by $800.
Brady said when the switch finally arrives the city will pay for it and pay Hoffman and Ewbank, the contractors, to install it.
Alva Economic Development Authority
The Alva Economic Development Authority met after the AUA. Trustees approved the consent agenda including minutes, claims of $6,896.27 and payroll expenses of $13,863.13.