HomeMy WebLinkAbout2006 08_OPWA_Approve 96 Revenue Bond Refunding _2006.11.21
OW ASSO PUBLIC WORKS AUTHORITY
OW ASSO, OKLAHOMA
RESOLUTION NO. 2006-08
The Authority is authorized to incur an
indebtedness by the issuance of its Utility System and Sales Revenue Note, Series 2006, for
and on behalf of the City of Oklahoma (the "City"), in an aggregate principal amount
$3,865,000.00 (the "Note") for the purpose of (i) currently refunding the Authority's $5,340,000.00
1 July 1, 1 1
SECURITY AGREEMENT. The Authority hereby ratifies and confirms the
Security Agreement dated as of December I, 1997, between the City and the Authority (the
"Security Agreement"), which Security Agreement pertains to a year-to-year pledge of celiain Sales
Tax revenue as security for the Note.
SECTION 4. INDENTURE. The General Bond Indenture, as previously supplemented and
amended and as further supplemented and amended by a Series 2006 Supplemental Note Indenture,
all by and between the Authority and The Bank of New York Trust Company, N.A., as successor to
J.P. Morgan Trust Company, N.A., as Trustee (collectively referred to herein as the "Indenture"),
authorizing the issuance of and securing the payment of the Note approved in Section 1 hereof, is
hereby approved and the Chairman or Vice-Chairman and Secretary or Assistant Secretary of the
Authority are authorized and directed to execute and deliver same for and on behalf of the
Authority.
SECTION 5. ORGANIZATIONAL DOCUMENT SUBJECT TO THE INDENTURE.
The organizational document creating the Authority is subject to the provisions of the Indenture
referenced in Section 4 hereof.
SECTION 6. LEASE AGREEMENT. The Lease dated July 31, 1973, as amended by
Amendment to Lease dated as of July 1, 1996, both by and between the City and the Authority,
whereby the City leases unto the Authority its then existing and thereafter acquired water, sanitary
sewer, garbage and trash collection systems and the Bailey Ranch Golf Club (the "Lease
Agreement"), is hereby ratified and confirmed.
is hereby designated Escrow
of
anticipates total
bonds) issued by the Authority or
$9,000,000 ($ I 0,000,000 being
Internal
extent the
or
to execute to N.A.,
price and are further authorized and directed to execute all necessary documentation
and closing and delivery papers required by Bond Counsel, including professional services
agreements; approve the disbursement of the proceeds of the Note, including any costs of issuance;
approve the disbursement of any remaining proceeds of the Series 1996 Bonds for the purposes as
2
provided therein; to approve and make any changes to the documents approved by this Resolution,
for and on behalf of the Authority, the execution and delivery of such documents being conclusive
as to the approval of any changes contained therein by the Authority; and to execute, record and file
any and all the necessary financing statements and security instruments, including but not limited to
the documents approved hereby, and to consummate the transaction contemplated hereby.
PASSED AND APPROVED THIS 2 I ST DA Y OF NOVEMBER, 2006.
THE OW ASSO PUBLIC WORKS AUTHORITY
(SEAL)
Cataudella
Title: Chairman
3
EXHIBIT "A"
[Principal Payment Schedule]
Maturity Date
Principal Amount
July 1,2007
July 1, 2008
July 1,2009
July 1,2010
July 1,2011
July 1,2012
July 1,2013
July 1,2014
July 1,2015
July 1, 2016
July 1,2017
$ 310,000.00
300,000.00
310,000.00
320,000.00
335,000.00
345,000.00
360,000.00
375,000.00
390,000.00
400,000.00
420,000.00
A-I
MEMORANDUM
TO:
HONORABLE CHAIR AND TRUSTEES
OW ASSO PUBLIC WORKS AUTHORITY
FROM:
SHERRY BISHOP
FINANCE DIRECTOR
SUBJECT:
RESOLUTION NO, 2006-08
1996 REVENUE BOND REFUNDING
DATE:
November 17, 2006
BACKGROUND:
The OPW A has outstanding revenue bond debt of $3,830,000 issued in 1996 for the Bailey Ranch
Golf Club. As of July I, 2006, that debt is callable and could be refinanced at a lower interest rate.
In 1992, the Owasso Public Golf Authority issued revenue bonds to finance the construction of the
Bailey Ranch Golf Club. The 1992 Revenue Bonds were secured only by the revenues of the golf
course with no pledge of revenue from the City of Owasso. In 1996, the was reorganized and
the city management took responsibility for operation of the golf course. that same time, the
OPW A issued revenue bonds and "purchased" the golf course from the OPGA. The 1996 Revenue
Bonds are secured by the utility revenues, the golf revenues and two cents of the
of s tax.
The outstanding 1996 bear interest rates ranging from 5.55% to 6.15% with final
maturity of July 1,2017. As of July 1,2006 the bonds became callable at a 2% premium. The final
maturity of the new debt would remain at July 1, 20 I 7. The estimated interest rate for new debt is
3.95%, providing a gross saving of approximately $600,000.
interest rate and final pricing of the debt will be available the meeting on
Allan Financial , are
IS
2006,.08
and all
1, 2 and 9 will be completed after the rate bids are
at the meeting on Tuesday.
transaction. The blanks in
The final document will
Staff recommends OPW A Trustee approval of Resolution No. 2006-08 authorizing the 2006
Revenue Note and containing other related provisions.
A TT ACHMENTS:
Resolution No. 2006-08