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HomeMy WebLinkAbout2019.07.09_Worksession AgendaThis meeting Is a work session for Council /Trustee discussion only. There Is no opportunity for public comments at work session. PUBLIC NOTICE OF THE JOINT MEETING OF THE OWASSO CITY COUNCIL / OWASSO PUBLIC WORKS AUTHORITY / OWASSO PUBLIC GOLF AUTHORITY Council Chambers, Old Central Building 109 North Birch, Owasso, OK 74055 Regular Meeting Tuesday, July 09, 2019 - 6:00 pm 1. Call to Order Mayor /Chair Chris Kelley ✓04 ° vkt C/tyC /er �s ?419 n 2. Discussion relating to Owasso Public Works Authority capital project financing through the Oklahoma Water Resources Board Linda Jones Ben Oglesby with Municipal Finance Services, Inc. 3. Discussion relating to Community Development Items Brian Dempster A. Proposed amendment to the Owasso Zoning Code, Chapter 10: Overlay Districts, Section 10.4, Uses in the US -169 Overlay District B. Request for Annexation (OA 19 -03) and rezoning (OZ 19 -03) of approximately 2.5 acres located at 11707 East 106th Street North 4. Discussion relating to proposed amendments to the Owasso Code of Ordinances Julie Lombardi Scott Chambless A. Part 3, Alcoholic Beverages, Section 3-114 Consuming Spirits in Public; Intoxication B. Part 10, Offenses and Crimes, Sections 10 -201 Petit Larceny Prohibited; 10 -401 Public Intoxication and Drinking Prohibited; 10 -402 Marijuana Prohibited 5. Discussion relating to City Manager items Warren Lehr A. Proposed professional services agreement - 5K Heart Healthy Trail and Funtastic Island renovations and splash pad B. Monthly sales tax report C. City Manager report 6. City Councilor/Trustee comments and inquiries 7. Adjournment Notice of Public Meeting filed in the office of the City Clerk on December 14, 2018, and the Agenda posted at City Hall, 200 South Main Street, 6:00 pm on Friday, July 5, 019. f ,' +'2 Hann M. Stevens, Cit Jerk The City of Owasso encourages citizen participation. To request an accommodation due to a disability, contact the City Clerk at least 48 hours prior to the scheduled meeting by phone 918- 376 -1502 or by email to istevens@citvofowasso.com RFAL People • RE REAL Community TO: The Honorable Chair and Trustees Owasso Public Works Authority FROM: Linda Jones, Finance Director SUBJECT: Owasso Public Works Authority (OPWA) Project Funding DATE: July 5, 2019 BACKGROUND: On March 12, 2019, Trustees discussed the following planned OPWA major capital improvements: • Upgrade of the Wastewater Treatment Plant • Upgrade of Coffee Creek sewer lift station • Upgrade Smith Farm gravity sewer line • Upgrade waterline at East 76th Street North and US -169 • Upgrade Ranch Creek sewer interceptor, East 96th Street North to East 116th Street North On March 19, 2019, Trustees approved contracts with Public Finance Law Group, PLLC, and Municipal Finance Services, Inc., as Authority's Bond Counsel and Financial Advisor, respectively, to assist the Authority with financing the above projects through the Oklahoma Water Resources Board. Recently, the engineering estimate for the upgrade of the Wastewater Treatment Plant was increased due to rising costs of labor and materials. In light of the increased cost estimate, the Oklahoma Water Resources Board (OWRB) was provided with 'a revised maximum loan amount of $28,170,000, for which they authorized a commitment of funds on June 18, 2019. Subsequent to the OWRB commitment of funds, staff met to discuss options for trimming the scope of the financing. As a result of these meetings, staff recommends removal of the 76th and US -169 waterline from the financing proposal. Recent communications from the Oklahoma Department of Transportation indicated that the 76th Street water line replacement project is no long deemed necessary for the 76th and US -169 improvement project to proceed. Additionally, staff recommends minor reductions to the scope of the Wastewater Treatment Plant project. The combination of these changes in scope will lower the overall project costs to be financed to $26.1 million. Ben Oglesby will present revised financing estimates at the July Worksession ATTACHMENT: OWRB Letter of Binding Commitment JULIE CUNNINGHAM EXECUTIVE DIRECTOR . June 20, 2019 STATE OF OKLAHOMA WATER RESOURCES BOARD www.cwrb.ok.gov LETTER OF BINDING COMMITMENT Mr. Chris Kelley, Chair Owasso Public Works Authority P O Box 180 Owasso, OK 74055 KEVIN STITf GOVERNOR -- Re: Notice of Approval and Commitment of Funds FAP -19- 0004 -L, Owasso Public Works Authority, Tulsa County Dear Mr. Kelley: We are pleased to formally notify you that on June 18, 2019 the Oklahoma Water Resources Board (OWRB) approved Owasso Public Works Authority (the "Authority ") request I'm a loan. With this approval, and upon the Authority's written acceptance of this "Letter of Binding Commitment, limitations, requirements, and points of understanding set out below, the Board has committed funds to be made available to the Authority for purposes detailed on the enclosed Board Order. The terms and conditions set forth in the Promissory Note, Loan Agreement, and other loan documents shall be mutually agreed to and approved by the Authority and OWRB or their authorized agents as appropriate before said documents are executed and binding upon respective parties. The Promissory Note, Series 2019, shall be sufficient to provide funds of $697.96650 estimated fees and $27,600,000.00 estimated project cost. The Promissory Note, Series 2019. shall not exceed the aggregate principal amount of $23,170,000.00. In acceptance of this "Letter of Binding Commitment," the Authority acknowledges that it must agree to the following terms before the loan funds will be advanced: A copy of the project's construction plans and specifications needs to be provided for our review and comments. 2. A copy of the construction permit, when issued by the Department of Environmental Quality. should be furnished. 3. After project bid opening, the engineer should submit a complete tabulation of all bids .with a revised project budget to the Authority. The Authority should then submit copies - 3800 N. CLASSEN BOULEVARD . OKLAHOMA CITY, OKLAHOMA 73116 TELEPHONE (405) 530 -88800 00 . FAX (405) 530 -8900 Stephen B. Allen . Jennifer Castillo . Charles Darby . Bob Drake F. Ford Drummond . Suzanne L.indess . Robe,t L. Melton . Matt Muller . Robert Stallings Owasso Public Works Authority FAP -19- 0004 -L Page 2 of 5 of the bid tabulation, project budget, engineer's recommendation and the Authority's recommendation to the OWRB. After the contracts are awarded, the Authority must provide one set of signed contract documents with the required insurance and bonds to the OWRB for approval. 4. a. The Authority's bond counsel, Mr. Allan Brooks, will need to prepare drafts of the necessary loan documents, including the Loan Agreement, Promissory Note. Trust Agreement, Mortgage, Financing Statements, Arbitrage and Use of Proceeds Certificate, Applicant Questionnaire. and Opinion of Bond Counsel. Mr. Brooks will seek the assistance of the Authority's local counsel in furnishing easement descriptions, if applicable, property title opinion, and the local counsel's le -al opinion concerning this loan. These trust be submitted for our staff's review and approval before we will order the money to close the loan. b. The OWRB must receive, within 15 days after closing, file- stamped copies of each Financing Statement (separate and apart fi-om the copies that will be bound in the transcript we will receive later). 5. 'fhe Authority has chosen to fulfill the Local Reserve Fund Requirement by meeting and maintaining a Super Debt Coverage Requirement. If the Authority at a later time fails to maintain the Super Debt Coverage Requirement then the Authority must within 90 days of written notification by the OWRB either 1) provide written proof of official action taken by the Authority to increase utility rates in an amount sufficient to meet the Super Debt Coverage Requirement, 2) provide written proof that the Authority currently meets the Minimum Rating Requirement, 3) provide a certificate of insurance from a Qualified Bond Insurer evidencing- that the Authority meets the Surety Requirement, or 4) provide written proof to the OWRB that the Authority has made an initial deposit into the Local Reserve Account in the amount of 1/24t' of the Cash Reserve Requirement and will continue to make monthly deposits in a like manner for a period of not more than 24 months until the Cash Reserve Requirement is fully funded. 6. A local trustee bank shall be selected by the borrower and approved by the OWRB. for a bank to qualify to serve as a local trustee, it must: (a) have a trust department; (b) have at least $100,000,000.00 in assets; (c) have capital, surplus and undivided profits of at least $10,000,000.00; and (d) have previously acted or currently be acting as trustee on similar municipal bond issues. The role of the trustee includes but is not limited to, disbursing loan funds upon requisitions by the borrower, collecting monthly payments from the borrower and making semi - annual loan payments to the OWRB's trustee bank. 7. The Authority is required to obtain and furnish proof of the following insurance and bonds prior to loan closing and throughout the term of the loan upon policy expiration dates: a. The treasurer or other official entrusted with handling the funds for the Authority will be covered by a Position Fidelity bond. The amount of the bond must be at least equal to the maximum amount of money that the Authority may have on hand at any one time. The bond shall also have a power- of-attorney attached. Owasso Public Works Authority FAP -19- 0004 -L Page 3 of 5 b. The Authority must carry extended insurance coverage on the utility system sufficient to cover all mortgage indebtedness with standard mortgage clause in favor of the mortgagee or mortgagees as their interests may appear. C. The Authority must carry liability insurance. d. Worker's compensation insurance must be carried on the person or persons operating the utility system. The policy must be in effect at loan closing or start of construction, whichever occurs first. 8. The Authority shall employ a licensed operator to operate the utility system as required by the Department of Environmental Quality. A copy of the operator's license(s) should be submitted. 9. The Authority must complete and submit to OWRB the "Insurance Certification" form to verify that sufficient insurance coverage is carried on the Authority's system and personnel. This form will be sent to the Authority upon project completion and must be returned to OWRB within 30 days of receipt. Owasso Public Works Authority FAP -19- 0004 -L Page 4 of 5 As stated in the attached OWRB Order. upon applicant's acceptance of this "Letter of Binding Commitment," the funds will be reserved for the Authority for one year, until .June 17. 3020. Accordingly, the Authority must accept this letter of commitment as soon as possible in order to proceed in a timely fashion with loan closing. Please return one original executed copy of the acceptance, page 5. Should you have any questions regarding this notification and letter of' commitment, please feel free to contact Joe Freeman at (405) 530 -8800. OKLAHOMA WATER RESOURCES BOARD oe�F'reeman, Chief Inancial Assistance Division ATTEST: �U�! (Signature) (SEAL, Enclosures OWRB Board Order �P - - Date CM 19- - - - - -- Date Owasso Public Works Authority FAP -19- 0004 -L Page 5 of 5 ACCEPTANCE: On behalf of the Owasso Public Works Authority, 1, the undersigned, being duly authorized to take such action, do hereby accept and agree to the terms and conditions of this "Letter of' Binding Commitment." The applicant understands that the State's purpose for this "Letter of Binding Commitment" is to inform the applicant that the loan has been approved and that the funds for the loan will be reserved for a limited time upon applicant's acceptance of the terms of the "Letter of Binding Commitment." This "Letter of Binding Commitment' also acts as the written loan commitment from the borrower that is required under the Internal Revenue Code section 149(f)(4). Following applicant's acceptance of the "Letter of Binding Commitment," the parties will proceed to close the loan in a timely manner consistent with the proposed bond closing date. Owasso Public Works Authority (Signature) Date Chris Kelley, Chair (Signature) Date Secretary /Treasurer A7T EFST: (Signature) Date (SEAL) BEFORE THE OKLAHOMA WATER RESOURCES BOARD STATE OF OKLAHOMA IN THE MATTER OF LOAN APPLICATION ) NO. FAP -19- 0004 -L IN THE NAME OF ) OWASSO PUBLIC WORKS AUTHORITY ) TULSA COUNTY, OKLAHOMA ) ORDER APPROVING LOAN APPLICATION This matter came on for consideration before the Oklahoma Water Resources Board (the "Board ") on the 18th day of June, 2019. WHEREAS, Owasso Public Works Authority (the "Applicant') has made its Application for Funding No. FAP -19- 0004 -L (the "Loan Application ") to the Board for a loan from the proceeds of the Board's State Loan Program Revenue Bonds issued pursuant to the 2016 General Bond Resolution dated as of November 1, 2016, as supplemented and amended (the "Bond Resolution "), and authorized by Title 82 Oklahoma Statutes 2011, Sections 1085.31 et seq, as amended; and WHEREAS, the Applicant intends to use the loan to provide for acquisition, development, and utilization of storage and control facilities for water and sewage systems for the use and benefit of the public and for the conservation and distribution of water for beneficial purposes in or from reservoirs or other storage facilities and/or refinancing indebtedness originally incurred for such purposes; and WHEREAS, the Board has completed its review of the Loan Application and related information, and finds that the Loan Application should be approved according to the terms and conditions set forth below. NOW, THEREFORE, LET IT BE RESOLVED AND ORDERED BY THE OKLAHOMA WATER RESOURCES BOARD: Application for Funding No. FAP -19- 0004 -L in the name of the Owasso Public Works Authority be and the same is hereby approved. Subject to and contingent upon the Board's receipt of sufficient funds, a loan shall be made to the Applicant for the following purpose and subject to the following terms and conditions: Puroose The loan proceeds, along with other funds of the Applicant, if any, will be used to (i) make wastewater treatment plant improvements, construct a lift station, water lines, and gravity sewer lines, and all related appurtenances (the "Project "), (ii) satisfy the Local Reserve Requirement, if necessary and (iii) pay related costs of issuance, all as more specifically set forth in the Application. Terms and Conditions I. A loan shall be made out of proceeds of the Board's State Loan Program Revenue Bonds to the Applicant to provide funds for the Project described in the Loan Application in an aggregate principal amount not to exceed $28,170,000.00. The Applicant shall pay interest on the loan at a fixed or variable rate to be established periodically by the Board. Principal and interest payments shall be made on a semi - annual basis or as otherwise provided for under the Bond Resolution. The term of the loan shall be no longer than thirty -one (3 1) years. ORDER APPROVING LOAN APPLICATION Owasso Public Works Authority FAP -19- 0004 -L 2. The loan shall be secured with a lien on the revenues of the Applicant's water, sewer, and sanitation systems, the Bailey Ranch Golf Club, and a 2 cent sales tax and may include a mortgage on the Applicant's water and sewer systems and other real property. 3. The funds shall be reserved for the Applicant for a period of one (1) year from the date of this Order. In the event the loan is not closed on or before such date, the Board reserves the right to (i) approve, at the Applicant's request, a reasonable extension of time to close the loan, or (ii) de- obligate all or a portion of the loan funds in order to be used by the Board to make other loans, as the Board determines shall permit the best use of the funds. Funds shall be provided to the Applicant from proceeds of the Board's State Loan Program Revenue Bonds in accordance with the requirements of the Bond Resolution. 4. The Board's Staff is authorized to determine what additional conditions or requirements shall be necessary in order to assure the soundness of the loan and compliance with applicable financial, legal, and Bond Resolution requirements. The Board's Staff is further authorized to approve future modifications or additions to the project purposes and uses of funds approved herein, provided such modifications or additions will not materially and adversely affect the loan. 5. The loan shall be subject in all respects to the provisions of the Applicant's promissory note(s), loan agreement(s), and other loan documents which shall be executed by proper officials of the Applicant and a Board Member at or prior to loan closing as appropriate. 6. Additional loans may be made at such times, for such projects of the Applicant, at such repayment periods and interest rates, and upon such other terms and conditions as may be agreed to and approved by the Board and the Applicant. So ordered this 18th day of June, 2019, in regular and open meeting of the Oklahoma Water Resources Board. OKLAHO ATER RESOURCES BOARD Stephen B. All , Vice Chairman ATTEST: i RobO,;�;,Stallings, Jr., Secretary Y Y • i i '. * i sd REAL People•RFAL Cpanchn RCe, Communxy TO: The Honorable Mayor and City Council FROM: Karl Fritschen RLA, AICP Planning Manager SUBJECT: Proposed Zoning Code Amendment to the US -169 Overlay District DATE: July 5, 2019 BACKGROUND: In 2012, the City Council approved the US -169 Overlay District under Ordinance 1004, which established a special set of regulations governing development along this corridor from East 86th Street North to East 126th Street North. During the April work session, staff presented a proposed amendment to the Owasso Zoning Code, Chapter 10, by adding a new subsection Section 10.4.7 Separation Requirement in the US -169 Overlay District. The goal of the US -169 Overlay District is to ensure that this highly visible and important corridor is developed in a consistent and attractive manner. The Overlay District was also established to protect the investment of the Tulsa Technology Center campus. To accomplish these goals, the Overlay District prohibits or restricts certain land uses by requiring the approval of a Specific Use Permit (SUP) by City Council in order to locate within the Overlay District. Certain uses that require large areas of land for sales inventory (i.e. auto sales, camper sales, boat sales, etc.) can create a negative impact along the corridor if they are located adjacent to each other. The visual effect that results from these types of land uses being grouped together along highway frontage is contradictory to the original intent of the US -169 Overlay District. The current language in the Zoning Code does not stipulate where or how these types of uses could locate, resulting in a large stretch of land in the Overlay District that is primarily vehicle inventory. The existing language also does not specify if other types of vehicle sales, such as boat or RV sales, are included in the restrictions placed on auto sales. The gaps in the current Overlay District language create a potential issue countering the purpose of the US -169 Overlay (shown below): 10.2 Purpose of the US -169 Overlay District. The purpose of the US -169 Overlay District is to: a. Encourage sustainable development that will become a long term asset to Owasso; b. Protect an area that represents a significant opportunity for business and corporate investment, which is important to the long term economic health of Owasso; c. Establish uses and regulations that promote the development of this area as a corridor that promotes an environment of business, learning, and growth; d. Protect the area around Tulsa Technology Center from uses that may have a detrimental impact on the facility and the City's ability to attract quality development; e. Establish regulations that protect the investment of existing and new businesses and corporations from unattractive, non - compatible uses; f. Ensure the area is visually pleasing, sustainable, and developed in a coordinated fashion; g. Ensure a high quality of development that will ultimately generate an economically- enhanced and pedestrian - friendly area for Owasso; and h. Follow the principals of the Quality of Life Initiative. PROPOSED AMENDMENT TO THE ZONING CODE: Staff proposes the following amendment to Chapter 10, Section 10.4 of the Owasso Zoning Code by adding a new subsection 10.4.7 Separation Requirement, to read as follows: 10.4.7 Separation Requirement. In order to protect the integrity and purpose of the US -169 Overlay as described in Section 10.2 the uses listed below, taken from Table 10.2, shall have the additional requirement that they be separated by a distance of 2,640 linear feet. The distance shall be measured from property line to property line. In the event the measurement bisects a parcel, then the greater amount of area that is inside or outside of this distance shall be used to determine the applicability of this section. Additionally, the following uses shall not be located on any parcel of land that abuts the Tulsa Technology Center Campus property. • Aircraft Sales • Auto Sales • Boat and Recreational Vehicle Sales • Camper Sales • Construction Equipment Sales • Motorcycle Sales • Truck Rental (as a single use) • Agricultural Implements Sales Additionally this Section shall apply to any uses identified in Section 53241 of the North American Industry Classification System (NAICS), titled "Construction, Transportation, Mining, and Forestry Machinery and Equipment Rental and Leasing" or uses that operate in a similar manner. PUBLIC HEARINGS: On July 8, the Planning Commission will hold a public hearing on the proposed amendment. Staff anticipates placing an item on the July 16, 2019, City Council agenda for the second public hearing. ATTACHMENT: US 169 Boundary Map US -169 Overlay Boundary 116th A sd REAL PeoM", e • EA Charecror •REAL Community TO: The Honorable Mayor and City Council FROM: Morgan M. Pemberton City Planner SUBJECT: Annexation (OA 19 -03) & Rezoning (OZ 19 -03) DATE: July 5, 2019 BACKGROUND: The City of Owasso received a request for the annexation and rezoning for a property located at 11707 East 106th Street North. The property is approximately 2.5 acres in size and is currently zoned Agriculture (AG) in Tulsa County. The applicant is requesting that the Owasso zoning category of Residential Single - Family High Density (RS -3) be applied to the property upon annexation. SURROUNDING ZONING: Direction Zoning Use Land Use Plan Jurisdiction AG (Agriculture) PUD 17 -01 & RS -3 (Residential Single - Family High Density) Land Use Master Plan Transitional North RNX (Residential Neighborhood Undeveloped Transitional City of Washington County Rural Water District #3 Applicable Paybacks /Fees Meadowcrest Sewer Relief Area - $867.00 per acre Ranch Creek Sewer Service Assessment Area - $610.33 per acre Storm Siren Fee - $50.00 per acre Owasso wasso AG (Agriculture) / South RE (Residential Single Family Residential Transitional Tulsa County Estate) PUD 17 -01 & East RNX (Residential Neighborhood Undeveloped Transitional City of Mixed) Owasso West AG (Agriculture) Residential Transitional I Tulsa County SUBJECT PROPERTY /PROJECT DATA: Property Size 2.5 acres +/- Current Jurisdiction Tulsa County Current Zoning AG (Agriculture) Proposed Zoning RS -3 (Residential Single - Family High Density) Land Use Master Plan Transitional Within PUD? No Within Overlay District? No Water Provider Washington County Rural Water District #3 Applicable Paybacks /Fees Meadowcrest Sewer Relief Area - $867.00 per acre Ranch Creek Sewer Service Assessment Area - $610.33 per acre Storm Siren Fee - $50.00 per acre ANALYSIS: Typically, property annexed into the Owasso City limits is assigned an AG zoning designation or is annexed with the existing County zoning. However, an applicant can request a rezoning of the property if the requested zoning conforms to the GrOwasso 2030 Land Use Master Plan and proper legal notice is provided. In this case, the applicant is requesting that the property be assigned a designation of RS -3 upon annexation. Proper legal notice was completed by City staff for the annexation and rezoning. The subject property is identified for transitional land uses in the GrOwasso 2030 Land Use Master Plan. Typically transitional land uses consist of office and multi - family residential developments. However, the Land Use Master Plan is a flexible policy document that allows for less intense land uses to be proposed for areas designated for a higher intensity land use. In this case, the applicant is proposing a less intense land use of single - family housing instead of a typical transitional land use. While the intersection of 106th and Garnett is expected to see significant commercial and medical facility development in the future, most of the adjacent property is currently residential in nature. Considering this, staff has determined that the request for RS -3 zoning at this location would be appropriate. The City of Owasso would provide sanitary sewer, Fire, Police, and EMS services to the subject property at such time as it is developed. Water service would be provided by Washington County Rural Water District #3. Any future development on the subject property shall adhere to all subdivision, zoning, and engineering requirements of the City of Owasso. PLANNING COMMISSION: The Planning Commission will review this item at their meeting on July 8, 2019. ATTACHMENTS: Aerial Map Zoning Map GrOwasso 2030 Land Use Master Plan Map Aerial Photo OA 19-03 OZ 19-03 N Garnett Rd E 1006th St N Subject property Zoning Map OA 19 -03 /OZ 19 -03 N Garnett Rd E 106th St n Subject PROPERTY Land Use Master Plan Map OA 19 -03 /OZ 19 -03 E 106TH St N I SUBJECT PROPERTY