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HomeMy WebLinkAbout2020 13_Indebtedness OPWA Sales Tax Revenue Note_2020.04.21CERTIFICATE OF CITY COUNCIL ACTION I, the undersigned, hereby certify that I am the duly qualified and acting City Clerk of the City of Owasso, Oklahoma. further certify that the City Council of the City of Owasso, Oklahoma, held a Regular Meeting at 6:30 o'clock P.M., on April 21, 2020, 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 City Council 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the some appears in the official records of my office and that said Resolution is currently in effect and has not been repealed or amended as of this dote. I further certify that below is listed those Council 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. Mayor- Chris Kelley via teleconference Councilor- Doug Bonebroke via teleconference Councilor- Lyndell Dunn via teleconference Councilor- Kelly Lewis via teleconference A quorum was declared present via teleconference [Title 25, Ok. Stat. 307.1(C) (2)]. ABSENT. Vice Mayor- Bill Bush MOTION MADE BY: MOTION SECONDED BY: Trustee Lyndell Dunn Trustee Kelly Lewis YEA: Bonebrake, Dunn, Lewis, Kelley NAY: None OF O OFFCIAL y � N O (SOEAL 7 r a Q rtAFIOOP� WITNESS MY HAND THIS 21ST DAY OF APRIL, 2020. CITY OF OWASSO, OKLAHOMA t�Yuliann M. Steven ity Clerk CITY OF OWASSO, OKLAHOMA RESOLUTION NO. 2020-13 A RESOLUTION APPROVING THE INCURRENCE OF INDEBTEDNESS BY THE OWASSO PUBLIC WORKS AUTHORITY (THE "AUTHORITY ") ISSUING ITS SALES TAX REVENUE NOTE, SERIES 2020 (THE "NOTE "); PROVIDING THAT THE ORGANIZATIONAL DOCUMENT CREATING THE AUTHORITY IS SUBJECT TO THE PROVISIONS OF THE NOTE INDENTURE, AUTHORIZING THE ISSUANCE OF SAID NOTE; WAIVING COMPETITIVE BIDDING WITH RESPECT TO THE SALE OF SAID NOTE AND APPROVING THE PROCEEDINGS OF THE AUTHORITY PERTAINING TO THE SALE OF SAID NOTE; RATIFYING AND CONFIRMING A SALES TAX AGREEMENT BY AND BETWEEN THE CITY OF OWASSO, OKLAHOMA (THE "CITY ") AND THE AUTHORITY PERTAINING TO THE YEAR -TO -YEAR PLEDGE OF CERTAIN SALES TAX REVENUES; AND CONTAINING OTHER PROVISIONS RELATING THERETO NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA: SECTION 1. INDEBTEDNESS AUTHORIZED. The Owasso Public Works Authority (the "Authority ") is hereby authorized to incur an indebtedness by the issuance of its Sales Tax Revenue Note, Series 2020 in the amount of $12,000,000, according to the terms and conditions of a Note Indenture dated as of December 1, 2004, as previously supplemented and amended, and as further supplemented and amended by a Series 2020 Supplemental Note Indenture, all by and between the Authority and BancFirst, as successor Trustee to RCB Bank (collectively, the "Note Indenture "), provided that said Note shall never constitute a debt of the City of Owasso, Oklahoma (the "City "). SECTION 2. ORGANIZATIONAL DOCUMENT SUBJECT TO NOTE INDENTURE. The organizational document creating the Authority, is hereby made subject to the terms of the Note Indenture authorizing the issuance and securing the payment of the Note as more fully described in Section 1 hereof. SECTION 3. WAIVING COMPETITIVE BIDDING; APPROVAL OF SALE PROCEEDINGS. The waiving of competitive bidding for the sale of the Note and the sale of said Note by the Authority to BOK Financial Public Finance, Inc., at a price of par, is hereby approved. SECTION 4. SALES TAX AGREEMENT. The Sales Tax Agreement dated as of December 1, 2004, between the City and the Authority (the "Sales Tax Agreement "), which Sales Tax Agreement pertains to a year -to -year pledge of certain sales tax revenue as security for the Note, is hereby ratified and confirmed. SECTION S. AUTHORIZING EXECUTION. 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 on behalf of the City any and all certifications and documentation necessary or attendant to the delivery of the Note, as directed by Bond Counsel. [Remainder of Page Intentionally Left Blank] PASSEQ. .�D APPROVED THIS 21ST DAY OF APRIL, 2020. CITY OF OWASSO, OKLAHOMA OV'ric" F- z Chris Kelley, Mayor A E TTE ?KC1 (14b6" w r6 n M. Stevens, C4y Clerk PA REAL Paege • RFAL LMra <mr • REAL LammuNry TO: The Honorable Mayor and City Council The Honorable Chair and Trustees Owasso Public Works Authority FROM: Linda Jones, Finance Director APPROVED BY COUNCIL APR 21 2020 C�W SUBJECT: Authorization of Sales Tax Revenue Note, Series 2020 DATE: April 17, 2020 BACKGROUND: APPROVED BY TRUSTEES APR 2 12020 (-YOV 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 reviewed "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 June 18, 2019, Council approved Resolution 2019 -13, which identified approximately $98 million in capital improvement projects, of which, approximately $78 million require third -penny sales tax funding. The third -penny sales tax generates approximately $9 million per year, of which, approximately $4 million is currently committed annually for existing debt service. Currently, approximately $28 million remains to be funded from future years' collections. As has been discussed with Council on multiple occasions, authorized Capital Improvement Projects (CIP) will require approximately six years of sales tax revenues to fund. At the October 2017 work session, staff outlined the need for future financing of capital projects to enable the City to advance the progress of approved CIP projects without delay. On March 17, 2020, the Owasso Public Works Authority (OPWA) approved execution of professional services agreements for financial advisor and bond counsel services related to the issuance of debt to be repaid over a 12 -year period for the purposes of funding third -penny capital projects. SALES TAX REVENUE NOTE, SERIES 2020: The proposed $12 million Series 2020 Sales Tax Revenue Note would include approximately $1.5 million for reimbursement of the 11301 North Mingo Road and 10000 East 116 +h Street North land purchase related costs, as well as funds for various street projects including the Garnett Road widening from East 106th Street North to East l 16th Street North, and the intersection of East 106th Street North and North 145th East Avenue. The Note would be repaid from the third -penny sales tax over a twelve -year period. City Council Resolution 2020 -13 authorizes the OPWA to issue its Sales Tax Revenue Note, Series 2020. OPWA Resolution 2020 -03 authorizes the issuance of a $12,000,000 Sales Tax Revenue Note, Series 2020. As a public trust of the City, the OPWA cannot incur debt without the approval of the City Council. Both resolutions approve waiver of competitive bidding and authorizes the note to be sold on a negotiated basis. Both resolutions also ratify and confirm 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 including a pledge of certain sales tax revenues. CITY COUNCIL RECOMMENDATION: Staff recommends approval of Resolution 2020 -13, authorizing the issuance of debt in the aggregate principal amount of $12,000,000 by the Owasso Public Works Authority. OPWA RECOMMENDATION: Staff recommends approval of Resolution 2020 -03, authorizing the issuance of a Series 2020 Sales Tax Revenue Note in the aggregate principal amount of $12,000,000. Staff further recommends amendment of the Owasso Public Works Authority budget to increase appropriations for both revenues and expenditures by $12,000,000. ATTACHMENTS: City Council Resolution 2020 -13 OPWA Resolution 2020 -03 CITY OF OWASSO, OKLAHOMA RESOLUTION NO. 2020-13 A RESOLUTION APPROVING THE INCURRENCE OF INDEBTEDNESS BY THE OWASSO PUBLIC WORKS AUTHORITY (THE "AUTHORITY ") ISSUING ITS SALES TAX REVENUE NOTE, SERIES 2020 (THE "NOTE "); PROVIDING THAT THE ORGANIZATIONAL DOCUMENT CREATING THE AUTHORITY IS SUBJECT TO THE PROVISIONS OF THE NOTE INDENTURE, AUTHORIZING THE ISSUANCE OF SAID NOTE; WAIVING COMPETITIVE BIDDING WITH RESPECT TO THE SALE OF SAID NOTE AND APPROVING THE PROCEEDINGS OF THE AUTHORITY PERTAINING TO THE SALE OF SAID NOTE; RATIFYING AND CONFIRMING A SALES TAX AGREEMENT BY AND BETWEEN THE CITY OF OWASSO, OKLAHOMA (THE "CITY ") AND THE AUTHORITY PERTAINING TO THE YEAR -TO -YEAR PLEDGE OF CERTAIN SALES TAX REVENUES; AND CONTAINING OTHER PROVISIONS RELATING THERETO NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA: SECTION 1. INDEBTEDNESS AUTHORIZED. The Owasso Public Works Authority (the "Authority ") is hereby authorized to incur an indebtedness by the issuance of its Sales Tax Revenue Note, Series 2020 in the amount of $12,000,000, according to the terms and conditions of a Note Indenture dated as of December 1, 2004, as previously supplemented and amended, and as further supplemented and amended by a Series 2020 Supplemental Note Indenture, all by and between the Authority and BancFirst, as successor Trustee to RCB Bank (collectively, the "Note Indenture "), provided that said Note shall never constitute a debt of the City of Owasso, Oklahoma (the "City "). SECTION 2. ORGANIZATIONAL DOCUMENT SUBJECT TO NOTE INDENTURE. The organizational document creating the Authority, is hereby made subject to the terms of the Note Indenture authorizing the issuance and securing the payment of the Note as more fully described in Section 1 hereof. SECTION 3. WAIVING COMPETITIVE BIDDING; APPROVAL OF SALE PROCEEDINGS. The waiving of competitive bidding for the sale of the Note and the sale of said Note by the Authority to BOK Financial Public Finance, Inc., at a price of par, is hereby approved. SECTION 4. SALES TAX AGREEMENT. The Sales Tax Agreement dated as of December 1, 2004, between the City and the Authority (the "Sales Tax Agreement "), which Sales Tax Agreement pertains to a year -to -year pledge of certain sales tax revenue as security for the Note, is hereby ratified and confirmed. SECTION 5. AUTHORIZING EXECUTION. 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 on behalf of the City any and all certifications and documentation necessary or attendant to the delivery of the Note, as directed by Bond Counsel. [Remainder of Page Intentionally Left Blank] PASSEQAND APPROVED THIS 21ST DAY OF APRIL, 2020. OF,� (SEAL) tF ATE OK VUl IInnnn r6n M. Stevens, CAy Clerk CITY OF OWASSO, OKLAHOMA ( A� Chris Kelley, Mayor CERTIFICATE OF CITY COUNCIL ACTION I, the undersigned, hereby certify that I am the duly qualified and acting City Clerk of the City of Owasso, Oklahoma. I further certify that the City Council of the City of Owasso, Oklahoma, held a Regular Meeting at 6:30 o'clock P.M., on April 21, 2020, 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 City Council at said meeting as the 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 Council 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. Mayor- Chris Kelley via teleconference Councilor- Doug Bonebrake via teleconference Councilor- Lyndell Dunn via teleconference Councilor- Kelly Lewis via teleconference A quorum was declared present via teleconference [Title 25, Ok. Stat. 307.1(C)(2)]. ABSENT. Vice Mayor- Bill Bush MOTION MADE BY: MOTION SECONDED BY: Trustee Lyndell Dunn Trustee Kelly Lewis YEA: Bonebrake, Dunn, Lewis, Kelley NAY: None s �G��V O� Oy /9S� N (SEAL WITNESS MY HAND THIS 21ST DAY OF APRIL, 2020. CITY OF OWASSO, OKLAHOMA uliann M. Steven , ity Clerk PASSED AND APPROVED THIS 21ST DAY OF APRIL, 2020. (SEAL) ATTEST: &r s ems, -r4i �epub CITY OF OWASSO, OKLAHOMA Chris Kelley, Mayor Cler-I� -- •'• 2 • �./ fI f Z SEAL ' Q w