HomeMy WebLinkAbout2018 04_OPWA_CIP_Funding_Professional_Services_2018.04.17OWASSO PUBLIC WORKS AUTHORITY
OWASSO, OKLAHOMA
RESOLUTION 2018 -04
A RESOLUTION OF THE OWASSO PUBLIC WORKS AUTHORITY (THE "AUTHORITY ")
AUTHORIZING THE EXECUTION OF PROFESSIONAL SERVICES AGREEMENTS PERTAINING
TO THE FINANCING OF CAPITAL IMPROVEMENTS BENEFITTING THE CITY OF OWASSO,
OKLAHOMA; AUTHORIZING THE AUTHORITY'S FINANCIAL ADVISOR TO DISTRIBUTE BID
PACKAGES TO PROSPECTIVE FINANCIAL INSTITUTIONS IN CONNECTION WITH THE
REFERENCED FINANCING; AND CONTAINING OTHER PROVISIONS RELATING THERETO
WHEREAS, The Owasso Public Works Authority (the "Authority ") has under consideration the
issuance of its Sales Tax Revenue Note, Series 2018 in the approximate principal amount of
$9,800,000 (the "Note ") for the purpose of (i) financing certain capital improvements as
contemplated by Ordinance No. 763 of the City, along with related costs (collectively, the
"Project "), and (ii) paying costs associated with the issuance of the Note; and
WHEREAS, it is deemed desirable for the Authority to give preliminary authorization for the
issuance of the Note.
NOW, THEREFORE, BE IT RESOLVED BY THE TRUSTEES OF THE OWASSO PUBLIC WORKS
AUTHORITY:
SECTION 1. PROFESSIONAL SERVICES AGREEMENTS. The Authority is authorized to enter into
professional services agreements with Municipal Finance Services, Inc., as Financial Advisor, and
The Public Finance Law Group PLLC, as Bond Counsel, in connection with the proposed financing
of the Project. The Chairman or Vice Chairman and Secretary or Assistant Secretary of the Authority
are authorized to execute and deliver said professional services agreements on behalf of the
Authority and take all such other action in connection therewith.
SECTION 2. PRELIMINARY AUTHORIZATION. The Authority authorizes Municipal Finance
Services, Inc., as the Authority's Financial Advisor, to distribute bid packages to financial institutions
in connection with the proposed sale of the Note.
PASSED AND APPROVED this 17th day of April, 2018
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APP VED as to form and legality this 171h day of April, 2018.
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Juli r ombardi, Authority Attorney
FROM: Linda Jones, Finance Director
SUBJECT: Capital Improvement Project Funding
Resolution 2018 -04
DATE: April 13, 2018
BACKGROUND:
In October of 2003, Owasso citizens voted to approve changes to the third -penny sales tax
ordinance. According to Ordinance 763, the purpose of the third -penny sales tax is "to provide
revenues to finance or fund capital projects and related costs, to include debt service on
obligations issued to finance said capital projects." The ordinance includes the requirement that
"said capital projects" are to be "review by the Capital Improvements Committee, approved by
the City Council by resolution, with oversight given by the Citizens' Watchdog Committee
established by the City Council."
On September 5, 2017, Council approved Resolution 2017 -15 which identified approximately $98
million in capital improvement projects, of which, $78 million require third -penny sales tax
funding. Currently, approximately $42 million remains to be funded from future years' collections.
The third -penny sales tax generates approximately $8 million per year, of which, approximately
$3 million is currently committed annually for existing debt service.
As discussed at the April 10, 2018 Council /Authority enable approved capital projects to
progress without unnecessary delay, staff recommends issuance of $9.8 million in bank - qualified
debt to be repaid over a 10 -year period.
SALES TAX REVENUE NOTE, SERIES 2018:
The proposed Sales Tax Revenue Note would include approximately $3 million for the Police
Headquarters Renovation Project and $6.8 million for street projects. The Note would be repaid
from the third -penny sales tax over a ten -year period.
PROFESSIONAL SERVICES AGREEMENTS:
Resolution 2018 -04 authorizes execution of professional services agreements for bond counsel
and financial advisory services related to preparation and distribution of bid packets and for
closing documents related to issuance of the $9.8 million financing. Fees for professional services
would be paid from proceeds of the loan and are contingent upon issuance of the debt.
The resolution specifically authorizes Municipal Finance Services, Inc., as the Authority's Financial
Advisor, to distribute bid packages to financial institutions in connection with the proposed sale
of the Note and should be considered preliminary authorization by the OPWA.
Bids would be provided to Council /Authority at the May 2018 work session. Approval of final
documents on the proposed debt would require action by City Council and OPWA on May 15,
2018.
RECOMMENDATION:
Staff recommends approval of Resolution 2018 -04, authorizing the execution of professional
services agreements pertaining to the financing of capital improvements benefitting the City of
Owasso, Oklahoma; authorizing the Authority's financial advisor to distribute bid packages to
prospective financial institutions in connection with the referenced financing; and containing
other provisions relating thereto.
ATTACHMENTS:
Resolution 2018 -04
Professional service agreement for bond counsel
Professional service agreement for financial advisor