HomeMy WebLinkAbout2013 22_Ranch Creek_2013.12.03CITY OF OWASSO, OKLAHOMA
RESOLUTION NO. 2013-22
A RESOLUTION OF THE CITY OF OWASSO, OKLAHOMA (THE "CITY") APPROVING
ACTION TAKEN BY THE OWASSO PUBLIC WORKS AUTHORITY (THE "AUTHORITY")
AUTHORIZING ISSUANCE, SALE AND DELIVERY OF ITS SERIES 2013 CLEAN WATER SRF
PROMISSORY NOTE TO OKLAHOMA WATER RESOURCES BOARD; RATIFYING AND
CONFIRMING A LEASE WHEREBY THE CITY LEASED TO THE AUTHORITY ITS WATER,
SANITARY SEWER, AND GARBAGE AND TRASH COLLECTION SYSTEMS AND THE BAILEY
RANCH GOLF CLUB; RATIFYING AND CONFIRMING A SUBORDINATE LIEN SALES TAX
AGREEMENT; AND CONTAINING OTHER PROVISIONS RELATED THERETO.
WHEREAS, The Owasso Public Works Authority (the "Authority") did, by its Resolution
adopted December 3, 2013, authorize the issuance, sale and delivery of its Series 2013 Clean Water
SRF Promissory Note to Oklahoma Water Resources Board; and
WHEREAS, the City Council hereby determines that the actions taken by the Authority
should be authorized and approved; and
WHEREAS, the City hereby determines that such other action necessary or attendant to
accomplishment of the referenced financing should be considered by the City Council of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OWASSO,
OKLAHOMA:
Section 1. Issuance of Note. That the issuance, sale and delivery of The Owasso Public
Works Authority, Tulsa County, Oklahoma, Series 2013 Clean Water SRF Promissory Note to
Oklahoma Water Resources Board in a principal amount of $3,425,000.00 (the "2013 Note"), all as
approved by said Authority on December 3, 2013, be and hereby is authorized, approved and
ratified.
Section 2. Approval. That all actions heretofore taken by the Authority in connection with
the issuance, sale and delivery of the 2013 Note and all other aspects of the transaction be and
are hereby authorized, approved and ratified.
Section 3. Lease. The Lease dated July 31, 1973, as amended by the Amendment to Lease
dated as of July 1, 1996, both by and between the City and the Authority (the "Lease"), whereby
the City leased to the Borrower its water, sanitary sewer, and garbage and trash collection systems
and the Bailey Ranch Golf Club is hereby ratified and confirmed and the term of said Lease shall
extend until the 2013 Note is paid.
Section 4. Subordinate Lien Sales Tax Agreement. The Subordinate Lien Sales Tax
Agreement, dated September 1, 2007, by and between the Authority and the City and pertaining
to the year-to-year pledge of the certain sales tax revenue derived from the levy of a two percent
(2%) sales tax is hereby ratified and confirmed.
Section 5. Necessary Action. That the Mayor or Vice Mayor and City Clerk or Deputy City
Clerk be and hereby are authorized and empowered to execute and deliver for and on behalf of
the City any and all other documents or instruments reasonably necessary to accomplish the
issuance, sale and delivery of the 2013 Note and all other aspects of the transaction.
(Remainder of Page Left Blank Intentionally)
PASSED AND APPROVED THIS 3RD DAY OF DECEMBER, 2013.
CITY OF OWASSO, OKLAHOMA
By /
D o rake, Mayor
City Clerk
7
The City Wit ouf Limits.
TO: The Honorable Mayor and City Council
FROM: Linda Jones
Finance Director
AI'Pj{o VP
.bBYC0UXC1L
DEC 4 3 2013
SUBJECT: Ranch Creek Sanitary Sewer Interceptor Improvements
Construction Contract - OWRB Loan, Resolution No. 2013-22
DATE: November 27, 2013
BACKGROUND:
The OPWA Trustees approved the Ranch Creek Sewer Interceptor Improvement project
agreement for engineering services on May 15, 2012. On April 16, 2013, the Trustees authorized a
loan application with the Oklahoma Water Resources Board (OWRB) for financing the project.
The OWRB operates the State Revolving Fund (SRF) loan program and the Financial Assistance
Program (FAP). These programs provide low interest financing for eligible water, wastewater and
stormwater projects. The OPWA application has been approved by the OWRB for financing of
this project.
The OWRB staff has completed the final review of project bids and other documentation. A final
budget amount of $3,425,000 and an interest rate of 2.28% for the 12-year loan have been
approved by the OWRB. All documents relating to this financing have been prepared by Allan
Brooks who serves as bond counsel for the City and the OPWA, and those documents have
been reviewed by City Attorney, Julie Lombardi.
Financing for this project requires action by both the City Council and the OPWA Trustees. The
loan must be approved by the OPWA Trustees and any indebtedness incurred by the OPWA
requires City Council approval.
PROPOSED ACTION:
City Resolution No. 2013-22 approves action taken by the OPWA authorizing issuance of the
Series 2013B note in the amount of $3,425,000 to the OWRB for purposes of the Ranch Creek
Sewer Interceptor Improvement project. The resolution also ratifies and confirms existing
agreements between the City and the OPWA and authorizes execution of documents.
RECOMMENDATION:
Staff recommends Council approval of Resolution No. 2013-22 approving action taken by the
Owasso Public Works Authority authorizing issuance, sale and delivery of its Series 2013 Clean
Water SRF Promissory Note to Oklahoma Water Resources Board not to exceed $3,425,000;
ratifying and confirming a lease whereby the City leased to the Authority its water, sanitary
sewer, and garbage and trash collection systems and The Bailey Ranch Golf Club; ratifying and
confirming a subordinate lien sales tax agreement; and containing other provisions related
thereto.
ATTACHMENT:
Resolution No. 2013-22