Chamber proposes lodging tax

The Heart of Oklahoma Chamber of Commerce found a receptive audience for a proposed 5 percent hotel/motel tax on Monday evening.

Allen Eubanks, a past chamber president, told the Purcell City Council revenue from the tax would fund Purcell’s economic development needs.

He laid out the chamber’s plan, which calls for the council to put the issue to the voters.

As proposed, the council is to establish a 6-member trust authority to oversee the tax proceeds. Administrative costs would be capped at 10 percent.

The tax would be paid directly to the city, Eubanks explained, and would not pass through the hands of the Oklahoma Tax Commission.

The 5 percent rate is in line with what other cities charge, he said.

Pauls Valley’s lodging tax is 5 percent and Oklahoma City’s is 5.5 percent. In Norman, the tax is 4 percent.

Eubanks stressed that this is not a tax on Purcell residents. In fact, the city’s residents will be exempt from paying the tax should they stay the night in any lodging in Purcell.

The council didn’t set an election date, but directed city attorney Ted Haxel to draft a resolution calling for an election.

The council also approved a resolution based on Oklahoma Department of Transportation recommendations that set new speed limits on Grant Street (State Highway 74) from the intersection at Green Avenue to the city limits.

Traveling west from the intersection, the speed limit will be 40 mph for 0.51 mile, dropping to 30 mph for the next 0.2 miles. The decreased speed will be only in effect from 7 to 8 a.m. and 3 to 4 p.m. on school days.

Otherwise, the speed limit will be 50 mph on the stretch 0.51 to 0.83 miles from the intersection. The speed limit will increase to 60 mph from that point to the city limits.

City manager Dale Bunn  updated the council on several topics during the meeting, sharing that five city workers have tested positive for COVID-19. They include one each from the electric, water, fire, police and street departments.

In Newcastle, the virus has sidelined the city manager, city clerk, city treasurer and code clerk.

Bunn reported the storm sewer work at the site of the new hospital is complete and rough grading of the site is underway.

Attempts to level the new basketball courts by the Multi-Purpose Building weren’t successful and the bonding company for the contractor and sub contractors is “dragging its feet,” Bunn said.

A 24-hour test on the city’s new water well at the Lexington Wildlife Management Area showed the well produced 150 gallons per minute, nearly double what an initial test indicated.

The council also:

• approved the $50,962 purchase of a 2020 Ford F550 extended cab pickup for the fire department;

• appointed Carolyn Cummings to the Purcell Senior Citizen Board; and

• approved a $132,581.60 budget amendment for Purcell Municipal Hospital.

During the Purcell Public Works Authority meeting, trustees had little to offer Carla Hooper who has a water leak between the meter and her home.

The water line crosses three properties, Hooper said, adding her plumber “won’t go on someone else’s property.”

Because of that it isn’t known where on the line the leak is located.

“Is it possible to get an easement from the neighbors?” mayor Ted Cox asked.

But Hooper said she didn’t believe the neighbors would agree to that.

Bunn said one possible solution would be to lay a 2-inch line along the road easement.

But a contractor’s cost estimate for that would be $4,600, with another $1,000 to move the meter.

“It’s a significant expense for the customer,” he added.

There was brief discussion of waiving the cost to move the meter

“The only option to you is to not follow policy,” Haxel told the trustees.

“You have our sympathy,” Cox told Hooper. “That’s all we can do.”

Hospital CEO Kem Scully told the trustees that the company which insured the hospital refused to renew the policy, citing structural issues with the building.

The hospital acquired insurance from a different company, but at a hefty 24.5 percent premium increase. The annual premium was $88,400 with the previous company and is $110,065 through the new company.

Jackie Wadley of Wadley EMS told the trustees he now has nine full time paramedics on staff, together with four part time paramedics.

Two others are testing this month, he said, and seven more will graduate from paramedic school in November and March.