HomeMy WebLinkAbout2019 15_Debt Issuance OWRB_2019.07.16CITY OF OWASSO, OKLAHOMA
RESOLUTION NO. 2019-15
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 THE AUTHORITY'S SERIES 2019
PROMISSORY NOTE TO OKLAHOMA WATER RESOURCES BOARD; RATIFYING AND
CONFIRMING A LEASE AGREEMENT, AUTHORIZING DOCUMENTS PERTAINING TO A
YEAR -TO -YEAR PLEDGE OF CERTAIN SALES TAX REVENUE; AND CONTAINING OTHER
PROVISIONS RELATED THERETO
WHEREAS, The Owasso Public Works Authority (the "Authority ") did, by its Resolution adopted
on July 16, 2019, authorize the issuance, sale and delivery of its Series 2019 Promissory Note to
Oklahoma Water Resources Board, in order to finance the costs of certain improvements to the
Authority's sanitary sewer system (the "Project "); and
WHEREAS, the City Council of the City of Owasso, Oklahoma (the "City ") 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 Authority's Series 2019
Promissory Note to Oklahoma Water Resources Board in the principal amount of not to exceed
$26,750,000.00 (the "2019 Note "), all as approved by said Authority on July 16, 2019, 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 2019 Note, and all other aspects of the transaction be and are
hereby authorized, approved and ratified.
SECTION 3. LEASE AGREEMENT. The Lease dated July 31, 1973, as amended by an Amendment to
Lease dated as of July 1, 1996, between the City and the Authority (collectively, the "Lease
Agreement "), whereby the City leases its water, sanitary sewer, garbage and trash collection
systems and the Bailey Ranch Golf Club to the Authority, is hereby ratified and confirmed and the
term of said Lease, as amended, shall extend until the 2019 Note is paid.
SECTION 4. SALES TAX PLEDGE. That the Mayor or Vice Mayor and City Clerk or Deputy City Clerk
be and are hereby authorized to execute and deliver any and all documentation on behalf of the
City pertaining to a year -to -year pledge of certain sales tax revenue levied by the City.
SECTION 5. NECESSARY ACTION. The Mayor or Vice Mayor and City Clerk or Deputy City Clerk of
the City representing the City at the closing of the above - referenced note issue are hereby
authorized 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 2019 Note
and all other aspects of the transaction.
Resolution 2019 -15
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(SEAL)
PASSED AND APPROVED THIS 16TH DAY OF July, 2019.
CITY OF OWASSO, OKLAHOMA
-ro,�Chris Kelley, Mayor
r no,�r4, O
tevens, City Clerk
APPR VIED AS TO FORM:
Juli ombardi, City Attomey
Resolution 2019 -15
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TO: The Honorable Mayor and City Council
The Honorable Chair and Trustees
Owasso Public Works Authority
FROM: Linda Jones, Finance Director
APPROVED BY COUNCIL
JUL 16 2019
SUBJECT: Resolutions - Oklahoma Water Resources Board (OWRB) Promissory Note, Series
2019
DATE: July 12, 2019
BACKGROUND:
On Tuesday, March 19, the Owasso Public Works Authority (OPWA) Trustees approved bond
council and financial advisor professional service agreements needed to file an application with
the Oklahoma Water Resources Board (OWRB) for financing certain OPWA water and
wastewater system improvements.
OWRB SERIES 2019 PROMISSORY NOTE:
The proposed Promissory Note would finance the following water and stormwater projects:
• Upgrade of the Wastewater Treatment Plant
• Upgrade of Coffee Creek sewer lift station
• Upgrade Smith Farm gravity sewer line
• Upgrade Ranch Creek sewer interceptor, 96th to 116th
As a public trust of the City, the OPWA cannot incur debt without the approval of the City
Council. City Resolution 2019 -15 authorizes the OPWA to issue its Promissory Note, Series 2019.
The resolution also ratifies and confirms existing agreements between the City and the OPWA
and provides various other requirements of the financing.
OPWA Resolution 2019 -04, authorizes the issuance of Promissory Note, Series 2019 up to
$26,750,000. The resolution also ratifies and confirms existing agreements between the City and
the OPWA, provides various other requirements of the financing and authorizes the execution of
all documents related to the transaction.
CITY COUNCIL RECOMMENDATION:
Staff recommends approval of Resolution 2019 -15, 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 the Authority's Series 2019 Promissory Note to
Oklahoma Water Resources Board; ratifying and confirming a Lease Agreement; authorizing
documents pertaining to a year -to -year pledge of certain sales tax revenue; and containing
other provisions related thereto.
OPWA RECOMMENDATION:
Staff recommends OPWA Trustee approval of OPWA Resolution 2019 -04, a Resolution of The
Owasso Public Works Authority (the "Borrower ") authorizing a loan from the Oklahoma Water
Resources Board in the total aggregate principal amount of not to exceed $26,750,000;
approving the issuance of a Series 2019 Promissory Note to Oklahoma Water Resources Board in
the total aggregate principal amount of not to exceed $26,750,000, secured by a pledge of
revenues and authorizing its execution; designating a Local Trustee; approving and authorizing
the execution of a Trust Agreement; approving and authorizing the execution of a Loan
Agreement; approving and authorizing the execution of a Security Agreement; ratifying and
confirming a Lease Agreement; approving and authorizing a Note Purchase Agreement;
authorizing documents pertaining to a year -to -year pledge of certain sales tax revenue;
approving various covenants; approving and authorizing payment of fees and expenses; and
containing other provisions relating thereto.
ATTACHMENTS:
City Council Resolution 2019 -15
OPWA Resolution 2019 -04