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HomeMy WebLinkAbout2018 06_OPWA_Coffee_Creek_Lift_Station_Improvements_2018.05.15OWASSO PUBLIC WORKS AUTHORITY OWASSO, OKLAHOMA RESOLUTION 2018 -06 A RESOLUTION DECLARING THE INTENT OF THE OWASSO PUBLIC WORKS AUTHORITY (THE "AUTHORITY ") TO EXPEND CERTAIN FUNDS IN CONNECTION WITH LAND ACQUISITION FOR COFFEE CREEK LIFT STATION IMPROVEMENTS WITH SAID EXPENDITURES TO BE REIMBURSED FROM THE PROCEEDS OF DEBT TO BE INCURRED BY THE AUTHORITY; AND CONTAINING OTHER PROVISIONS RELATING THERETO WHEREAS, The Owasso Public Works Authority (the "Authority ") is undertaking certain utility system improvements serving the City of Owasso, Oklahoma (the "City "), as more specifically set out below (the "Project "); and WHEREAS, it is the Authority's intent to eventually fund the cost of the Project through the issuance of tax - exempt debt obligations; and WHEREAS, the Authority desires to initially fund certain costs pertaining to the Project out of the Authority's cash reserves; and WHEREAS, the Authority further desires to declare its official intent to reimburse itself with the proceeds of tax- exempt debt incurred by the Authority, as required by Section 1.150 -2 of the Treasury Regulations promulgated pursuant to Sections 103 and 141 -150 of the Internal Revenue Code of 1986, as amended. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE OWASSO PUBLIC WORKS AUTHORITY: SECTION 1. The Project. The Project to be designed and constructed by or on behalf of the Authority shall generally include land acquisition, planning, design, engineering and implementation costs associated with the development and construction of a new Coffee Creek lift station serving the wastewater treatment system of the City. SECTION 2. Preliminary Use of Authority Funds. The Authority intends to initially fund certain capital costs relating to land acquisition in connection the Project from the Authority's funds in the estimated amount of $150,000. The Authority reasonably expects to reimburse any amounts expended with the proceeds of debt to be incurred by the Authority. The Authority anticipates issuing debt for the Project in an aggregate amount not to exceed approximately $4,000,000. SECTION 3. Official Intent. This Resolution constitutes a declaration of official intent as is required pursuant to Section 1.150 -2 of the Treasury Regulations promulgated pursuant to Sections 103 and 141 -150 of the Internal Revenue Code of 1986, as amended. SECTION 4. Severabilitv. If any section, subsection, sentence, clause, phrase or portion of this resolution is, for any reason, held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision, and such holding shall not affect the validity of the remaining portions of this resolution. PASSED AND A*ris 5TH day of May 2018. UB ORKS AUTHORITY Chair ATTE�F: , (�IU w ETf ; l� rayacrz -f ............. s , (S E A L) Z %'Gi _ S.SEAL.�° a APP OVED as Atp,, ;, p ii`ty this 154h day of May, 2018. its W. Lombardi, Authority Attorney Resolution 2018 -06 Page 2 of 3 CERTIFICATE OF AUTHORITY ACTION I, the undersigned, hereby certify that I am the duly and acting Secretary of The Owasso Public Works Authority. I further certify that the Trustees of the Authority held a Regular Meeting at 6:30 o'clock p.m. on May 15, 2018, after due notice was given in full compliance with the Oklahoma Open Meeting Act. I further certify that attached hereto is a full and complete copy of a Resolution that was passed and approved by said Trustees at said meeting as the some appears in the official records of my office and that said Resolution is currently in effect and has not been repealed or amended as of this date. I further certify that below is listed those Trustees present and absent at said meeting; those making and seconding the motion that said Resolution be passed and approved, and those voting for and against such motion: PRESENT: Chris Kelley, Bill Bush, Doug Bonebrake, Lyndell Dunn, Kelly Lewis ABSENT: None MOTION MADE BY: Lyndell Dunn MOTION SECONDED BY: Doug Bonebrake AYE: Chris Kelley, Bill Bush, Doug Bonebrake, Lyndell Dunn, Kelly Lewis NAY: None WITNESS MY HAND THIS 15TH DAY OF MAY, 2018. C 1WO .�� (SEAL) O SEAL i O ;: O ,r T 11,'OOkJAHOA�P �wl�• Resolution 2018 -06 Page 3 of 3 THE OWASSO PUBLIC WORKS AUTHORITY Christopher Garrett, Deputy Secretary of Authority OnEAL¢ople • REAL Character •REAL CammuNry TO: The Honorable Chair and Trustees Owasso Public Works Authority FROM: Linda Jones, Finance Director SUBJECT: Coffee Creek Lift Station Project Resolution 2018 -06 DATE: May 11, 2018 BACKGROUND: APPROVED BY TRUSTEES MAY 15 2018 On March 13, staff presented information during the worksession on the need to increase the capacity of the Coffee Creek Lift Station. Funding for the replacement of the Coffee Creek Lift Station will need to come from loan proceeds. In order to acquire land for the Coffee Creek Lift Station prior to securing loan proceeds, a resolution is needed declaring the intent of the Owasso Public Works Authority (OPWA) to have expenditures related to the Coffee Creek Lift Station be reimbursed with future OPWA loan proceeds. RECOMMENDATION: Staff recommends approval of Resolution 2018 -06, declaring the intent of the Owasso Public Works Authority to expend certain funds in connection with land acquisition for certain Coffee Creek Lift Station improvements with said expenditures to be reimbursed from the proceeds of debt to be incurred by the Authority; and containing other provisions relating thereto. ATTACHMENTS: OPWA Resolution 2018 -06 Memorandum dated March 9, 2018 C21.4.a -REALC acmr -REAC Gmmuniry TO: The Honorable Chair and Trustees Owasso Public Works Authority FROM: Roger Stevens Public Works Director SUBJECT: Coffee Creek Lift Station and Force Main Improvements Land Purchase DATE: March 9, 2018 BACKGROUND The Coffee Creek lift station and force main were constructed just south of E 106 St N on the west side of N 145 E Ave in 2002. Per the October 2016 Wastewater Master Plan, the lift station pumps, wet well, generator, and the 8" force main are in need of replacement and upgrades by 2020. The lift station is currently operating at approximately 90% of its rated capacity and provides service to the Lake Valley and Coffee Creek subdivisions, as well as several commercial developments along the east side of US HWY 169. Additional development in this area is anticipated to occur over the next 5 to 15 years, at which time, the projected sanitary sewer flow will exceed the capacity of the lift station and force main. In November 2017, Public Works began discussions with Kellogg Engineering concerning the needed improvements to the lift station and force main in order to accommodate current and future sanitary sewer flows within the basin. The estimated cost of improvements is $3.9 million. Due to inadequate space and wet lands adjacent to the existing site (see Attachment), one option would be to relocate a new lift station on the east side of N 145 Ave. The estimated potential savings would be $381,225 compared to the cost of improvements at the current location. PROPOSED LAND PURCHASE: With possible cost savings in mind, Terra Acquisition was hired to assist with contacting the property owner and discussing the possibility of purchasing the land. In February 2018, the property owner (Smith Family) agreed to a purchase amount of $125,000 for 4.39 acres or 65 cents per square foot. FUNDING: Funding is not included in FY 2017 -2018 OPWA budget for the purchase of land; therefore, a supplemental appropriation would be necessary to fund the purchase. It is also important to mention, staff anticipates including the land purchase as part of the assessment fee once construction of the lift station is complete. PROPOSED ACTION: Unless Trustees express concern, staff intends to recommend approval of the land purchase agreement between the OPWA and Smith Family in the amount of $125,000 and approval of a supplemental appropriation in the OPWA fund. ATTACHMENT: Location Map d r U) 'O d N O Q O IL c 0 as Y U) V/ J Y N d L U d 47 0 v 0 N O M O C O r N Cr Q J IRE W v m