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Home My WebLink About2020 03_OPWA_Sales tax revenue note_2020.04.21OWASSO PUBLIC WORKS AUTHORITY RESOLUTION NO. 2020-03 A RESOLUTION AUTHORIZING THE OWASSO PUBLIC WORKS AUTHORITY (THE "AUTHORITY ") TO ISSUE ITS SALES TAX REVENUE NOTE, SERIES 2020 (THE "NOTE ") IN THE AGGREGATE PRINCIPAL AMOUNT OF $12,000,000; WAIVING COMPETITIVE BIDDING AND AUTHORIZING THE NOTE TO BE SOLD ON A NEGOTIATED BASIS; RATIFYING AND CONFIRMING A SALES TAX AGREEMENT BY AND BETWEEN THE CITY AND THE AUTHORITY PERTAINING TO A YEAR -TO -YEAR PLEDGE OF CERTAIN SALES TAX REVENUE; APPROVING AND AUTHORIZING EXECUTION OF A SUPPLEMENTAL NOTE INDENTURE AUTHORIZING THE ISSUANCE AND SECURING THE PAYMENT OF THE NOTE; PROVIDING THAT THE ORGANIZATIONAL DOCUMENT CREATING THE AUTHORITY IS SUBJECT TO THE PROVISIONS OF THE NOTE INDENTURE; AUTHORIZING AND DIRECTING THE EXECUTION OF THE NOTE AND OTHER DOCUMENTS RELATING TO THE TRANSACTION; AND CONTAINING OTHER PROVISIONS RELATING THERETO NOW, THEREFORE, BE IT RESOLVED BY THE TRUSTEES OF THE OWASSO PUBLIC WORKS AUTHORITY: SECTION 1. INDEBTEDNESS AUTHORIZED. The Owasso Public Works Authority (the "Authority ") is authorized to incur an indebtedness by the issuance of its Sales Tax Revenue Note, Series 2020 for and on behalf of the City of Owasso, Oklahoma (the "City "), in the aggregate principal amount of $12,000,000.00 (the "Note ") for the purpose of (i) financing certain capital improvements benefiting the City, including land acquisition and certain street improvements, all along with related costs; and (ii) paying certain costs associated with the issuance of the Note. The Note shall bear interest at the rate of 2.15% per annum. The principal installments on the Note shall be paid as set forth on Exhibit "A" hereto. SECTION 2. COMPETITIVE BIDDING WAIVED. Competitive bidding on the sale of said Note is waived and the Note is authorized to be sold to BOK Financial Public Finance, Inc. (the "Purchaser "), at a price of par. SECTION 3. 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 4. SUPPLEMENTAL NOTE INDENTURE. The Series 2020 Supplemental Note Indenture by and between the Authority and BancFirst, as Trustee, as said Series 2020 Supplemental Note Indenture supplements and amends a Note Indenture dated as of December 1, 2004, as previously supplemented and amended, each by and between the Authority and the Trustee, as successor trustee bank to RCB Bank (collectively, the "Note Indenture "), authorizing the issuance of and securing the payment of the Note approved in Section 1 hereof, is hereby approved and the Chair or Vice Chair and Secretary or Assistant Secretary of the Authority are authorized and directed to execute and deliver some for and on behalf of the Authority. SECTION 5. ORGANIZATIONAL DOCUMENT SUBJECT TO THE NOTE INDENTURE. The organizational document creating the Authority is subject to the provisions of the Note Indenture referenced in Section 4 hereof. SECTION b. EXECUTION OF NECESSARY DOCUMENTS. The Chair or Vice -Chair and Secretary or Assistant Secretary of the Authority are hereby authorized and directed on behalf of the Authority to execute and deliver the Note to the Purchaser, upon receipt of the purchase price and are further authorized and directed to execute all necessary documentation and closing and delivery papers required by Bond Counsel; approve the disbursement of the proceeds of the Note, including any costs of issuance; to approve and make any changes to the documents approved by this Resolution, for and on behalf of the Authority, the execution and delivery of such documents being conclusive as to the approval of any changes contained therein by the Authority; and to execute, record and file any and all the necessary financing statements and security instruments, including but not limited to the documents approved hereby, and to consummate the transaction contemplated hereby. [Remainder of Page Intentionally Left Blank] 2 PASSED AND APPROVED THIS 21 ST DAY OF APRIL, 2020. \\ �� o? • .��: (SEALS a SEAL o ATTEST: °0111 >.pkCAHON11 eA'�� a nn M. Stevens, Authority Secretary THE 77RKS AUTHORITY Chris Kelley, Chair 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 Owasso Public Works Authority 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 Trustees 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 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. Chair - Chris Kelley via teleconference Vice Chair- Bill Bush via teleconference Trustee - Doug Bonebrake via teleconference Trustee - Lyndell Dunn via teleconference Trustee - Kelly Lewis via teleconference A quorum was declared present via teleconference ABSENT: None MOTION MADE BY: MOTION SECONDED BY: [Title 25, Ok. Stat. 307.1(C)(2)]. Trustee Doug Bonebrake Trustee Kelly Lewis YEA: Bonebrake, Dunn, Bush, Lewis, Kelley NAY: None WITNESS MY HAND THIS 21 ST DAY OF APRIL, 2020. C0 -'0 LP .Qt S Eq icw (SEAL 3 x L _ �O' :0= i r -b ° °i� ►�AHOMP ``�.. THE OWASSO PUBLIC WORKS AUTHORITY Qjdjtm 94 kw,�� r p6taJ ann M. Stevens, Sec ry of Authority 4 [Principal Payment Schedule] Date Principal Amount December 1, 2021 1 June 1, 2622 - December 1. M22 LOl.Gt11V G1 11 Lv4j June 1, 2024 December 1, 2025 1 June I, 2026 December 1. 2026 507,000 June 1, 2029 528,000 :ceniber 1, 2029 533,000 June 1, 2030 538,000 une June PASSED AND APPROVED THIS 21ST DAY OF APRIL, 2020. (SEAL) ATTEST: &IS Cb-r t4l 6cru� THE OWAS51Q/PUBLIC WORKS AUTHORITY Chris Kelley, Chair Jam: SE.... so' �L o °ems Ok'•.......•'�'' v 'ZI rr�'6[ PASSED AND APPROVED THIS 21ST DAY OF APRIL, 2020. THE OW NO PUBLIC WORKS AUTHORITY (SEAL) Chris Kelley, Chair ATTEST: �r's M11 L REAL People - REAL Character - REAL Communit, 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 ( -�W SUBJECT: Authorization of Sales Tax Revenue Note, Series 2020 DATE: April 17, 2020 BACKGROUND: APPROVED BY TRUSTEES APR 2 120 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 1 16th 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 1 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 $12,000,000. ATTACHMENTS: City Council Resolution 2020 -13 OPWA Resolution 2020 -03 CERTIFICATE OF AUTHORITY ACTION I, the undersigned, hereby certify that I am the duly and acting Secretary of The Owasso Public Works Authority. I further certify that the Trustees of The Owasso Public Works Authority held a Regular Meeting at 6:30 o'clock p.m. on April 21, 2020, after due notice was given in full compliance with the Oklahoma Open Meeting Act. I further certify that attached hereto is a full and complete copy of a Resolution that was passed and approved by said Trustees at said meeting as the some appears in the official records of my office and that said Resolution is currently in effect and has not been repealed or amended as of this date. I further certify that below is listed those Trustees present and absent at said meeting; those making and seconding the motion that said Resolution be passed and approved, and those voting for and against such motion: PRESENT: Chair- Chris Kelley via teleconference Vice Chair - Bill Bush via teleconference Trustee - Doug Bonebrake via teleconference Trustee - Lyndell Dunn via teleconference Trustee - Kelly Lewis via teleconference A quorum was declared present via teleconference ABSENT: None MOTION MADE BY: MOTION SECONDED BY: [Title 25, Ok. Stat. 307.1(C) (2)]. Trustee Doug Bonebrake Trustee Kelly Lewis YEA: Bonebrake, Dunn, Bush, Lewis, Kelley NAY: None WITNESS MY HAND THIS 215T DAY OF APRIL, 2020. •. is °r SEA (SEAL$ -:. I 01. • . O O�'••.••......r•'ryN THE OWASSO PUBLIC WORKS AUTHORITY flo'a'�w M Awa- �2 Ju ann M. Stevens, Secr4tary of Authority