HomeMy WebLinkAbout2007 07_OPWA_Issuance of Debt_Garnett Rd Regional Detention Facility_2007.08.21OWASSO PUBLIC WORKS AUTHORITY
RESOLUTION NUMBER 2007-07
A RESOLUTION OF THE OWASSO PUBLIC WORKS
AUTHORITY AUTHORIZING THE ISSUANCE,
EXECUTION AND DELIVERY OF THE OWASSO PUBLIC
WORKS AUTHORITY REVENUE ANTICIPATION NOTE
IN AN AMOUNT NOT TO EXCEED THREE MILLION,
FIVE HUNDRED THOUSAND DOLLARS ($3,500,000.00),
TO THE CITY OF OWASSO, OKLAHOMA, APPROVING
THE AGREEMENT, FORM REVENUE ANTICIPATION
NOTE AND OTHER DOCUMENTS AND AGREEMENTS
AS MAY BE NECESSARY OR REQUIRED;
AUTHORIZING THE TRANSFER OF PROCEEDS OF THE
NOTE TO THE STORMWATER MANAGEMENT FUND
OF THE CITY OF OWASSO; AND CONTAINING OTHER
PROVISIONS RELATING THERETO
WHEREAS, the Owasso Public Works Authority was created by a Declaration of Trust,
dated as of January 10, 1973, (collectively the "Trust Indenture") for the use and benefit of the
City of Owasso, Oklahoma (the "City") under authority of and pursuant to the provisions of Title
60 O.S. 1981, Section 176 to 180.3 inclusive as amended and supplemented and other applicable
statutes of the State of Oklahoma; and,
WHEREAS, the Authority has determined that it would be most advantageous at this
time for the Authority to provide funds for the financing of Garnett Road Regional Detention
Facilities Project for the construction located in the City; and
WHEREAS, there has been presented to this meeting a form of Agreement and Revenue
Anticipation Note, dated as of the 21St day of August, 2007, by and between the Authority and
the City of Owasso, Oklahoma (the "Note").
NOW, THEREFORE, BE IT RESOLVED BY THE TRUSTEES OF THE
OWASSO PUBLIC WORKS AUTHORITY THAT, TO-WIT:
SECTION ONE. The Agreement and form of the Note presented to this meeting be,
and hereby is, approved, and the Chairman or Vice-Chairman of the Trustees and the Secretary
or any Assistant Secretary of Trustees of the Authority be, and hereby are, authorized, directed,
and empowered to execute and deliver in the name of the Authority, the Agreement and the Note
in said form and containing the terms and provisions contained in said Note, the execution
thereof by such officers being conclusive evidence of such approval, and to execute and deliver
in the name of and on behalf of the Authority all documents, closing papers, certificates and such
other documents as are necessary to accomplish the issuance of the Revenue Anticipation Note.
SECTION TWO. The signatures of the officers of the Authority appearing on the
Agreement and the Note and other documents and agreements, closing papers and certificates
executed and delivered pursuant to this resolution shall be conclusive evidence of their approval
thereof and of their authority to execute and deliver such agreements and documents on behalf of
the Authority.
SECTION THREE. The Chairman or Vice-Chairman of the Trustees and the Secretary
or any Assistant Secretary of the Trustees of the Authority be, and they hereby are, authorized
and empowered for and on behalf of the Authority to execute and deliver such further
agreements and documents and to take such action as such officer or officers may deem
necessary or desirable in order to carry out and perform the Note and any contracts, documents,
or instruments executed and delivered in connection with the issuance of the Note, and to effect
the purposes thereof and to consummate the transactions contemplated thereby.
SECTION FOUR. The Treasurer of the Authority is authorized to transfer the
proceeds of the Note to the Stormwater Management Fund of the City of Owasso on an as
needed basis to provide funds for the Garnett Road Regional Detention Facilities Project of the
City.
PASSED AND APPROVED this 21St day of August, 2007.
~~~~~~~C 1wOR ~~~~
. S' ~i~
.. • G'
. O: :.+-
Q SEAL o_
3 ~; • ~~,
ATTE~ D ~~ .........••'• • ~~~
.~ '~~~~~ ~ri~eM`°t `
OWASSO PUBLIC WORKS AUTHORITY
By:
Stephen Ca audella, Chairman
Sherry Bisl~p, Secretary
APPROVED AS TO FORM:
Juli ombar i, uthority Attorney
MEMORANDUM
TO: HONORABLE CHAIR AND TRUSTEES
OWASSO PUBLIC WORKS AUTHORITY
FROM: SHERRY BISHOP
ADMINISTRATIVE SERVICES DIRECTOR
SUBJECT: OPWA RESOLUTION N0.2007-07
PROJECT FINANCING -REVENUE ANTICIPATION NOTE
DATE: August 17, 2007
BACKGROUND:
The City of Owasso continually explores alternatives in order to achieve the most cost effective
strategy for financing capital projects. The issuance of and investment in a Revenue Anticipation
Note (RAN) has been one of the successful methods used to finance capital projects.
The City of Owasso utilizes a "pooled" cash system for the receipt, disbursement and investment of
funds. The Consolidated Cash Fund includes all cash for the city and the trust authorities (except
OEDA). The total in the Consolidated Cash Fund varies throughout the year depending on cash
flows and major expenditures. The current cash balance is approximately five million dollars. One
investment option available to the City's Consolidated Cash Fund is a RAN issued by a trust
authority of the City. ARAN offers advantages for both the Authority and the City. The Authority
may borrow funds through a fairly simple process and the City acquires a secure investment at a
determined interest rate.
Actions necessary in order to accomplish this financing method are:
1. Council approval of a Resolution authorizing the investment in a RAN of the OPWA,
2. OPWA Trustee approval of a Resolution authorizing the borrowing and issuance of a RAN,
3. OPWA Trustee approval of the transfer of the proceeds of the RAN from the OPWA to the
Stormwater Management Fund of the City,
4. Future fiscal year budgets include the transfer of funds from the Stormwater Management
Fund to the OPWA for debt service on the RAN.
City of Owasso Resolution No. 2007-10 authorizes the city treasurer to invest city funds in a
Revenue Anticipation Note issued by the Owasso Public Works Authority and approves the
indebtedness of the OPWA. The Revenue Anticipation Note is structured to allow the OPWA to
draw funds as needed for the Garnett Road Regional Detention Facilities project for an amount not
to exceed $3,500,000.
The RAN will pay 4.0% interest to the city on the balance of the funds drawn against the note. The
RAN matures September 1, 2017. The OPWA may prepay the note as funds become available.
Funding is expected from three sources: the Stormwater Management utility fees, a mandatory fee
in lieu of detention on undeveloped property in the project drainage basin (to be established by
ordinance), and a fee for off-site detention by owners of the Owasso Market.
OPWA Resolution No. 2007-07 authorizes the issuance of the Revenue Anticipation Note by the
OPWA and authorizes the execution of all necessary documents. The resolution also authorizes the
transfers of the proceeds drawn on the note to the Stormwater Management Fund of the City to pay
for the construction of the Garnett Road Regional Detention Facilities project.
RECOMMENDATION:
Staff recommends OPWA Trustee approval of Resolution No. 2007-07 authorizing the issuance of a
Revenue Anticipation Note; authorizing the execution of documents; and authorizing the transfer of
proceeds of the note to the Stormwater Management Fund of the City.
ATTACHMENTS:
OPWA Resolution No. 2007-7
Revenue Anticipation Note
Loan Agreement