HomeMy WebLinkAbout2006 03_OPWA_Expend Funds_Wastewater System Improvements_Reimbursement_2006.03.21RESOLUTION NO. 2006-03
A RESOLUTION DECLARING THE INTENT OF THE OWASSO PUBLIC
WORKS AUTHORITY (THE "AUTHORITY ") TO EXPEND CERTAIN
FUNDS IN CONNECTION WITH WASTEWATER SYSTEM
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 Authority is considering the design and construction of certain wastewater
improvements as more specifically set out below (collectively, the "Project "); and
WHEREAS, it is the Authority's intent to eventually fund the cost of the Project through the
issuance of 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 debt incurred by the Authority, as required by Section 1.103 -18 of the Treasury
Regulations promulgated pursuant to Sections 103 and 141 -150 of the Internal Revenue Code of
1986, as amended.
-T'!�OW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE
OWASSO . WORKS AUTHORITY:
Section 1. Project Description. The Project to be designed and constructed by the
Authority shall generally include improvements necessary to upgrade the wastewater collection
and treatment system, including engineering studies to determine the need for wastewater
collection line repair and replacement, engineering and design of capacity increase for the
wastewater treatment plant, improvements to the ICI 117 East Avenue lift station, and other
related engineering design and construction.
Section 2. Cost of Project. The Authority intends to initially fund certain costs of the
Project from the Authority's funds. 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 one or more series in an aggregate amount not to exceed
approximately $7,500,000.
Section 3. Declaration of Official Intent. This Resolution constitutes a declaration of
official intent as is required pursuant to Section 1.103 -18 of the Treasury Regulations promulgated
pursuant to Sections 103 and 141 -150 of the Internal Revenue Code of 1986, as amended.
APPROVED THIS 21ST DAY OF MARCH, 2006.
Sherry Bishbp, Secretary
APPROVED AS TO FORM:
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Julie Lombardi, Authority Attorney
THE OWASSO PUBLIC WORKS AUTHORITY
Craig ThoeeY1�hairman
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CERTIFICATE OF
AUTHORITY ACTION
I, the undersigned, hereby certify that I am the duly qualified and Secretary of The Owasso
Public Works Authority.
I further certify that the Board of Trustees of The Owasso Public Works Authority held a
Regular Meeting at 6:30 o'clock p.m. on March 21, 2006, 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 Board of Trustees at said meeting as same 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 board members 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: Thoendel, Cataudella, Kimball, Colgan, Guevara
ABSENT: None
MOTION MADE BY: Kimball
MOTION SECONDED BY: Cataudella
AYE: Thoendel, Cataudella, Kimball, Colgan, Guevara
NAY: None
WITNESS MY HAND THIS 21sT DAY OF MARCH, 2006.
Sherry Bish��; Sccretai°y ,
ell,
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TO: HONORABLE CHAIR AND TRUSTEES
OWASSO PUBLIC WORKS AUTHORITY
BISHOP FROM: SHERRY
FINANCE DIRECTOR
RESOLUTION 2006-03
REIMBURSEMENT RESOLUTION
DATE: March 16, 2006
The Wastewater Master Plan of 2005 recommended various improvements to Owasso's wastewater
system and funding for those projects is expected to be provided by the Oklahoma Water Resources
Board (OWRB). The OWRB provides low interest long -term financing for water and wastewater
projects. For the past fourteen years, all of Owasso's debt for water and wastewater projects has
been with the OWRB. A loan application has not yet been prepared and would require approval by
the OPWA Trustees.
At the March 21St meeting, staff will be requesting OPWA Trustee approval of an engineering
services agreement as the first step in preparing for other wastewater system improvements. In order
to proceed and to utilize the future loan proceeds from the OWRB for this contract, the OPWA must
approve a "reimbursement resolution."
Funding from the OWRB is tax - exempt financing and therefore subject to IRS regulations
concerning tax - exempt debt. The tax code restricts the use of the proceeds of tax - exempt debt when
paying for aast expenditures. In order for the OPWA to be reimbursed for engineering (or any other
costs) expended for the project before the loan closing, then the OPWA must declare its official
intent to do so. That declaration must specify the project and estimated amounts of financing.
The attached Resolution No. 2006 -03 was prepared by our Bond Counsel, meets the requirements of
the tax code and declares official intent of the OPWA to expend its own funds for wastewater system
improvements and its intent to be reimbursed with the proceeds of tax - exempt debt issued by the
OPWA.
0117, #MV
Staff recommends OPWA Trustee approval of Resolution No. 2006 -03, a resolution declaring the
intent of the OPWA to expend certain funds in coiulection with wastewater system improvements, with
said expenditures to be reimbursed from the proceeds of debt to be incurred by the OPWA.
ATTACHMENT:
OPWA Resolution No. 2006 -03