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HomeMy WebLinkAbout2007.09.11_City Council Agenda_SpecialPUBLIC NOTICE OF THE MEETING OF THE OWASSO CITY COUNCIL TYPE OF MEETING DATE TIME PLACE Special September 11, 2007 6:00 p.m. Old Central Building 109 N. Birch Notice and agenda filed in the office of the City Clerk and posted on the City Hall bulletin board at 5:00 PM on Friday, September 7, 2007. 1 y Juliann M. Stevens, Dep ty City Clerk AGENDA 1. Call to Order Mayor Stephen Cataudella 2. Discussion of Community Development Items Mr. Wiles Attachment # 2 A. Requests for Annexation (1) B. Requests for Rezoning (1) 3. Discussion relating to Fire Department Items Mr. Clark Attachment #3 A. Grant Application (SAFER) B. Proposed purchase of an Ambulance 4. Discussion relating to Parks Department Items Mr. Warren Attachment #4 A. Bids received for the construction of a ball field B. Bids received for the installation of ball field lights SAAgendas \Council Work Session\2007 \0911 doe Owasso City Council September 11, 2007 Page 2 5. Discussion relating to City Manager Items Mr. Ray Attachment # 5 A. Appointments to various Boards and Commissions (memo attached) B. Pelivan Transit Pilot Program, a proposed demand response transportation service (memo to be provided at the meeting) C. Proposed Lease Agreement between the City of Owasso and Kourtis Realty (memo attached) D. Proposed Ordinance relating to the N. Garnett Road Regional Detention Facility (memo attached) E. City Manager Report 6. Report from City Councilors. 7. General discussion of the annual evaluation process for the City Manager position. 8. Consideration and appropriate action relating to a request for an executive session for the purpose of discussing personnel matters relating to the office of the City Manager, such executive session provided for in O.S. 25, Section 307(B)(1). Mayor Cataudella 9. Adjournment. SAAgendaACouncil Work Session\2007 \091 Ldoc MEMORANDUM TO: THE HONORABLE MAYOR AND COUNCIL CITY OF OWASSO FROM: CHIP MCCULLEY CITY PLANNER SUBJECT: REQUEST FOR ANNEXATION — (OA- 07 -05) DATE: September 6, 2007 BACKGROUND: The City of Owasso has received request to review and approve the annexation and rezoning of approximately 76.37 acres, located south of East 860' Street North, approximately '/4 mile west of N. Memorial Road. EXISTING LAND USE: Large Lot Residential / Agriculture SURROUNDING LAND USE: North: Large Lot Residential / Agriculture South: Large Lot Residential / Agriculture East: Large Lot Residential / Agriculture West: Large Lot Residential / Agriculture PRESENT ZONING: AG (Agriculture District) Tulsa County DEVELOPMENT PROCESS: The first step in the development of a piece of property in Owasso is annexation. Annexation is the method whereby land located outside the City limits is made a part of the City. Property owners and land developers sometimes choose to have their property annexed into Owasso in order to receive Owasso municipal services, such as police and fire protection, refuse collection, and sanitary sewer. The second step in the development of a piece of property in Owasso is rezoning. In order to develop the property the land must be zoned for particular kinds of uses, such as residential, office, commercial, or industrial. Rezoning decisions are made in accordance with the growth policy displayed in the Owasso Master Plan. The third step in the development of a piece of property in Owasso is platting. A preliminary plat is required for any development that proposes to divide land into two or more lots. Preliminary plats illustrate the development concept for the property, and are often modified significantly after being reviewed by the Technical Advisory Committee (TAC), and the Owasso Planning Commission. Sometimes, difficult development issues such as existing utility lines, wells, or easements are brought to light at the preliminary plat stage and must be remedied prior to development. ANNEXATION REVIEW PROCESS: The annexation process is initiated when a property owner submits a petition to the City of Owasso requesting that the City bring the property into the City limits. The applicant must submit as part of the request a signed petition requesting the annexation, an accurate legal description and map of the property being requested for annexation, and a certified 300' radius report so that staff may send legal notices to surrounding property owners. Upon receipt of all appropriate materials, the staff initiates the review process which begins with a thorough analysis of the request. The annexation request is then presented to the Owasso Annexation Committee for review and recommendation. The Annexation Committee is made up of staff, elected officials, and citizens. The Committee reviews the petition for compliance with the Annexation Policy and establishes a recommendation to the Owasso Planning Commission. The Owasso Planning Commission holds a public hearing to determine if the property is compliant with the Owasso Annexation Policy and establishes a recommendation to the Owasso City Council. The Owasso City Council will make the final determination to annex the property or refuse annexation. If the property is annexed into the City limits, an ordinance officially declaring the annexation is written and adopted by the City Council. Once adopted, the ordinance is circulated to the appropriate regional and national agencies for recording and altering maps. ANALYSIS: The applicant is requesting to annex approximately 76.37 acres, located south of East 86`h Street North, approximately `/4 mile west of N. Memorial Road. It is the applicant's intent to develop the property for residential single - family use. Therefore, this application is in conjunction with a rezoning request of RS -3 (Residential Single - Family). The preliminary plat for the property is expected to be submitted to the Planning Commission in the near future. This item was heard by the Owasso Planning Commission in August 2007. There were citizens present at the August meeting requesting the Commission to reconsider the proposed zoning and lot sizes. The Commission voted to table the annexation and rezoning request due to a lack of representation by the owner /applicant. The item has been placed on the Monday, September 10, 2007 Planning Commission agenda. City staff will present the recommendation of the Planning Commission at the Council work session on Tuesday, September 11, 2007. Staff published legal notice of the annexation petition in the Owasso Reporter and letters of notification were mailed to property owners within a 300' radius. ANNEXATION COMMITTEE: The Owasso Annexation Committee reviewed the request at its meeting on July 25, 2007. At that meeting, the committee unanimously recommended approval of the annexation. RECOMMENDATION: Staff intends to recommend approval of the request for annexation. ATTACHMENTS: 1. General Area Map Owasso Community Development Department 111 N. Main St. Owasso, OK 74055 918.376.1500 918.376.1597 www.cityofowasso.com W" OA 07 -05 FS-9 MEMORANDUM TO: THE HONORABLE MAYOR AND COUNCIL CITY OF OWASSO FROM: CHIP MCCULLEY CITY PLANNER SUBJECT: REQUEST FOR REZONING (OZ 07 -06) DATE: September 6, 2007 BACKGROUND: The City of Owasso has received a request to review and approve the rezoning of Lot 1, Block 1, Sherrill Estates from RS -3 (Residential) to OM (Office Medium), located at 102 West 11th Street North. A general area map has been attached for your review. EXISTING LAND USE: Residential SURROUNDING LAND USE: North: Commercial South: Residential East: Residential West: Residential PRESENT ZONING: RS -3 (Residential) DEVELOPMENT PROCESS: The first step in the development of a piece of property in Owasso is annexation. Annexation is the method whereby land located outside the City limits is made a part of the City. Property owners and land developers sometimes choose to have their property annexed into Owasso in order to receive Owasso municipal services, such as police and fire protection, refuse collection, and sanitary sewer. The second step in the development of a piece of property in Owasso is rezoning. In order to develop the property the land must be zoned for particular kinds of uses, such as residential, office, commercial, or industrial. Rezoning decisions are made in accordance with the growth policy displayed in the Owasso Master Plan. Specific development concerns, such as drainage, traffic, water /wastewater services, and stormwater detention are not able to be considered at the zoning stage of the development process. The third step in the development of a piece of property in Owasso is platting. A preliminary plat is required for any development that proposes to divide land into two or more lots. Preliminary plats illustrate the development concept for the property, and are often modified significantly after being reviewed by the Technical Advisory Committee (TAC), and the Owasso Planning Commission. Sometimes, difficult development issues such as existing utility lines, wells, or easements are brought to light at the preliminary plat stage and must be remedied prior to development. After the preliminary plat has been reviewed by the City and various utility companies, construction plans for the development's infrastructure are typically submitted. These plans include specifications and drawings for stormwater drainage, streets and grading and erosion control, waterlines, stormwater detention, and wastewater lines. Often, approval is required of other agencies, such as the Department of Environmental Quality for wastewater collection and the US Army Corps of Engineers for properties that may be development sensitive. Once the property development proposal shows a division of lots that is acceptable to both the developer and the City of Owasso, a final plat application is submitted. A final plat illustrates the layout and dimension of lots included on the final plat, right -of -way widths, easements, and other physical characteristics that must be provided for review by the City. After obtaining approval from the TAC and Planning Commission, the final plat is considered by the City Council. If approved, the final plat is filed with the office of the County Clerk and governs all future development on that property. ANALYSIS: The applicant is requesting to rezone one lot located directly south of Sokolosky Medical Clinic at 102 West 11th Street North, from RS -3 (Residential) to OM (Office Medium). It is the applicant's intent to use the property as a real estate office. The staff is currently reviewing and updating the Owasso 2025 Land Use Master Plan. This zoning change is in compliance with the proposed update to the plan. Letters were mailed to surrounding property owners and the legal advertisement was published in the Owasso Reporter. Any new construction or expansion will be required to follow the guidelines set forth by the Owasso zoning code and will require site plan approval and a building permit. RECOMMENDATION: Staff intends to recommend approval of OZ 07 -06. ATTACHMENTS: 1. General Area Map Owasso community Development Department 111 N. Main St. Owasso, OK 74055 918.376. 1500 918.376.1597 www.cityofowasso.com 86th STREET N ST N 10 ST N W 9 ST N OZ 07 -06 � �Iz Q CY 0 z 3i /T- ' -M E 11 ST N MEMORANDUM TO: THE HONORABLE MAYOR AND COUNCIL CITY OF OWASSO FROM: BRADD K. CLARK FIRE CHIEF SUBJECT: SAFER GRANT APPLICATION DATE: September 7, 2007 BACKGROUND: The Fire Department has applied for the Department of Homeland Security Staffing for Adequate Fire and Emergency Response (SAFER) Grant Program. The application is for funding for career firefighter positions within the Owasso Fire Department. SAFER GRANT PROCESS: Fire departments are able to request grant monies under two broad categories in the Staffing for Adequate Fire and Emergency Response (SAFER) Grant Program: hiring of career firefighters and recruitment and retention of volunteer firefighters. The Owasso Fire Department proposes the funding of six (6) additional firefighters which will complete the hiring process for Fire Station No. 3, as well as ensure adequate staffing levels for the two current fire stations. Created by Congress in 2003, the SAFER Grants are meant to help communities with career, volunteer and combination fire departments to "meet industry minimum standards and attain 24 -hour staffing to provide adequate protection from fire and fire- related hazards, and to fulfill traditional missions of fire departments that antedate the creation of the Department of Homeland Security." GRANT FUNDING: The SAFER program funds firefighter positions not currently budgeted at the following rate per awarded firefighter: Year 1: 66% of the actual cost, Year 2: 54% of the actual cost, Year 3: 31% of the actual cost Year 4: 17% of the actual cost Year 5: no federal funding. Should the grant be awarded, the City's estimated cost would be as follows: Year 1: $118,338 Year 2: $171,342 Year 3: $277,139 Year 4: $359,918 Year 5: $470,781 The total grant funds to be received would be $632,550. Over the grant period, the City's share would be $1,397,518. One of the central goals of SAFER is to better prepare fire departments in responding to emergencies. To this end, the Owasso Fire Department's grant application will provide the staffing necessary to protect the City of Owasso and surrounding area out of the City's three fire stations (as of November, 2007). Additional staffing after this grant opportunity will be dependent upon the construction of Fire Station No. 4 in two to three years. RECOMMENDATION: If the City of Owasso is a recipient of the grant, an action item will be placed on the City Council Agenda at that time. MEMORANDUM TO: THE HONORABLE MAYOR AND COUNCIL CITY OF OWASSO FROM: BRADD K. CLARK FIRE CHIEF SUBJECT: AMBULANCE PURCHASE DATE: September 5, 2007 BACKGROUND: The Fiscal Year 2007 -2008 ambulance capital budget provides funding for the purchase of an ambulance. The current fleet includes two front line ambulances, and two ambulances in reserve. One of the reserve ambulances is 10 years old, and is best utilized as a reserve apparatus based upon its mechanical reliability. The remaining reserve ambulance is scheduled to be refurbished and remounted on a new chassis later this calendar year, and was awarded by City Council in December, 2006. The chassis for this remount project was ordered on December 28, 2006 and has a scheduled build date of October 8, 2007. In short, it has taken approximately 11 months from the order date before the chassis is ready for delivery to the vendor who will then refurbish the reserve nmhiilnnrP In January, the fire department formed an apparatus need analysis team whose mission was to evaluate the existing and future needs of Owasso Fire Department apparatus. The long -term plan of refurbishing the ambulances and remounting the existing ambulance modules on new chassis was determined to remain a valid approach in terms of efficiency and fiscal responsibility. The growth of the fire department and the necessity to increase the fleet of ambulances has created a need to add an additional ambulance. Additionally, it was determined the additional ambulance should be purchased before the fire department operates three fire stations. Each fire station would need a front line reliable apparatus. A variety of possibilities have been explored, and the best solution to ensure the reliability of the ambulance fleet is to purchase an existing ambulance, versus waiting for the prolonged build time associated with custom apparatus. The proposed purchase plan includes writing a Request for Proposal for the ambulance and advertising to a variety of vendors. It is proposed that the specifications allow for demonstration ambulances, as long as they have not been used to transport patients, have less than 25,000 original miles, and be a Type III ambulance body style. The vendor shall also be required to deliver the ambulance within 30 days. It is believed that ambulances previously used to transport patients will not provide a reliable apparatus the fire department believes is necessary to ensure a high level of service to Owasso. FI TNnINf_- The FY 2007 -2008 budget includes funds in the amount of $150,000 for this project, which includes many of the equipment items required to place the ambulance in service. RECOMMENDATION: After the competitive bidding process, a recommendation will be brought to the Council for approval. MEMORANDUM TO: THE HONORABLE MAYOR AND COUNCIL CITY OF OWASSO FROM: DAVID WARREN PARKS DIRECTOR SUBJECT: BID AWARD SPORTS PARK BALLFIELD DATE: September 6, 2007 BACKGROUND: The FY 2007 -08 Budget included funding for several different capital improvement projects throughout the City of Owasso. These projects received their funding as a result of the City's third penny sales tax election in the fall of 2003. Included in that project list was funding to provide improvements to the new Sports Park land. In August, the Parks Department began the process of advertising for bids in order to provide for the first ball field. The bid packet was developed with a base bid specification. The base bid included the installation of a ball field at the new Sports Park, along with associated dirt work, fence and gate installation, and sod. All bids were to be received by September 5, 2007 at 2:00 PM. A total of nine bid packets were obtained following the advertisement and a total of four bids were submitted. A copy of the bid tally sheet is attached for your information and review. A review of the bids submitted indicates that all bids received were in compliance with bid specifications. Staff is prepared to recommend the award of the ball field to FIT Construction, L.L.C. of Tulsa, Oklahoma as they were the qualifying low bidder at $286,394.50. While FIT Construction has not previously performed bid work for the City of Owasso in the past, FIT Construction was recently awarded the Three Lakes Dam Project and staff received a satisfactory reply regarding their references. FUNDING: Funds for the ball field improvements were included within the Capital Improvements Fund. Bid Award — Sports Park Ball Field September 11, 2007 Page 2 of 2 RECOMMENDATION: Unless concerns are expressed by the City Council, staff intends to recommend Council award the contract for the ball field construction at the Sports Park to FIT Construction for the amount of $286,394.50 at the September 18, 2007 regular meeting. If awarded, the construction time line for this project is 90 days. ATTACHMENTS: 1. Bid tally Sheet 2. Advertisement for Bids 3. Map of Project Area CITY OF OWASSO, OKLAHOMA SPORTS PARK SOUTH FIELD #1 Bid Opening: September 5, 2007 2:00 p.m. Number of Bids: 4 Bids Opened By: Marcia Boutwell Witness: David Warren Robert Bird BIDDER TOTAL BASE BID F.I.T. Construction, LLC, Tulsa, OK $286,394.50 Mangum Construction, Inc, Broken Arrow, OK $338,000.00 Jones Plan Inc, Tulsa, OK $402,956.90 Tri-Star Construction, LLC, Claremore, OK $439,814.98 Certification: I, Marcia Boutwell, Contract Administrator, do hereby certify that, to the best of my knowledge, this Bid Documentation is true and correct. Signature: ls/ Marcia Boutwell Date: Sept 5, 2007 Sep 06 07 12:54p Special Projects 918 -272 -4966 p.2 PUBLISHER'S AFFIDAVIT CONSTRUCT 375' BALL FIELD, ETC PUBLICATION DATE(S) 08/07/07,08/14/07 CASE NUMBER: CONSTRUCT 375' BALL FIELD, ETC INVOICE NO: 00037286 LEGAL NOTICE STATE OF OKLAHOMA COUNTY OF Tulsa SS 1, of lawful age, being duly sworn, am a legal representative of Owasso Reporter of Owasso, Oklahoma, a daily newspaper of general circulation in Tulsa, Oklahoma, a newspaper qualified to publish legal notices, advertisements and publications as provided in Section 106 of Title 25, Oklahoma Statutes 1971 and 1982 as amended, and thereafter, and complies with all other requirements of the laws of Oklahoma with reference to legal publications. That said notice, a true copy of which is attached hereto was published in the regular edition of said newspaper during the period and time of publication and not in a supplement, on the ABOVE LISTED DATE(S) f G� Representative Signature Subscribed to and sworn to me this 15th day of August, 2007. 7 Notary Public NAP WY CAROL MOORE My commission number: 06011684 My commission expires: December 8, 2010 Customer #: 00000779 Customer: CITY OF OWASSO Publisher's Fee: 53.36 NANCYCAR MOORE Notar `'- y hft • Slate d Ofti ma i mm Coady My C9mmkdm BON December 8, 2010 Corm bdon # 06011684 37296 Published in the Owasso Reporter, Owasso, Tulsa County. Oklahoma, August 7 & 14, 2007. NOTICE TO BIDDERS Sealed Bids for LIGHTING OF THE 375' BALL FIELD AT THE OWASSO SPORTS PARK SOUTH will be received by the City of Owasso at the Owasso City Hall, 111 North Main, PO Box 180. Owasso, Oklahoma 741155 until 2:30 pm. on the 51h day of September, 2007, and then at said City Hall publicly opened and read aloud. Said improvements shall include all items in the specifi- cations. A MANDATORY pre -bid conference will be fold at 2:00 p.m. on August 27, 2007 at Owasso City Hall. A failure to attend the mandatory pre -bid conference will disqualify the bidder from bidding on the project. Further information regarding specifications and bidding documents can be obtained by contacting the Director of Parks at 371.7975 dur- ing regular working hours. Copies of the Contract Documents may be purchased at Owasso City Halt upon payment of Twenty Dollars ($20.00) for each set. which is the cost of reproduction and will NOT be refunded. Is/ Marcia Boutwell Marcia Boutwell, Contract Administrator August 7, 2007 MEMORANDUM TO: THE HONORABLE MAYOR AND COUNCIL CITY OF OWASSO FROM: DAVID WARREN PARKS DIRECTOR SUBJECT: BID AWARD SPORTS PARK BALL FIELD LIGHTS DATE: SEPTEMBER 6, 2007 BACK GROUND: The FY 2007 -08 Budget included funding for several different capital improvement projects throughout the City of Owasso. These projects received their funding as a result of the City's third penny sales tax election in the fall of 2003. Included in that project list was funding to provide improvements to the new Sports Park land. In August, the Parks Department began the process of advertising for bids in order to provide for the ball field lights. The bid packet was developed with a base bid specification. The base bid included the installation of a ball field lights at the new Sports Park. All bids were to be received by September 5, 2007 at 2:00 PM. A total of six bid packets were obtained following advertisement and a total of four bids were submitted. A copy of the bid tally sheet is attached for your information and review. A review of the bids submitted indicates that all bids received were in compliance with specifications. Staff is prepared to recommend the award of the ball field lights to Shawnee Electric Systems as they were the qualifying low bidder at $159,496. Shawnee Electric Systems has completed work for the City of Owasso in the past and staff is satisfied with their performance. FUNDING: Funds for the ball field lighting improvements were included within the Capital Improvements Fund. Bid Award — Sports Park Ball Field Lighting September 11, 2007 Page 2 of 2 RECOMMENDATION: Unless there are concerns expressed by the Council, staff is prepared to recommend award of the ball field lighting project to Shawnee Electric Systems of Shawnee, Oklahoma for the amount of $159,496. If awarded the construction timeline for this project is 60 days. ATTACHMENTS: 1. Bid tally Sheet 2. Advertisement for Bids 3. Map of Project Area CITY OF OWASSO, OKLAHOMA SPORTS PARK SOUTH FIELD #1 LIGHTING Bid Opening: September 5, 2007 2:30 p.m. Number of Bids: 4 Bids Opened By: Marcia Boutwell Witness: David Warren Robert Bird BIDDER TOTAL BASE BID Shawnee Electric, Shawnee, OK $159,496.00 Wise Electric, Owasso, OK $174,400.00 K C Electric, Enid, OK $178,304.00 Ridgeland Enterprises, Clarkridge, AR $187,268.00 Certification: I, Marcia Boutwell, Contract Administrator, do hereby certify that, to the best of my knowledge, this Bid Documentation is true and correct. Signature: /s/ Marcia Boutwell Date: Sept 5, 2007 Sep 06 07 12:54p Special Projects 918 -272 -4966 p.3 PUBLISHER'S AFFIDAVIT LIGHTING @ BALL FIELDISPORTS PARK PUBLICATION DATE(S) 08/07/07, 08/14/07 CASE NUMBER: LIGHTING @ BALL FIELDISPORTS INVOICE NO: 00037285 LEGAL NOTICE STATE OF OKLAHOMA COUNTY OF Tulsa I SS 1, of lawful age, being duly sworn, am a legal representative of Owasso Reporter of Owasso, Oklahoma, a daily newspaper of general circulation in Tulsa, Oklahoma, a newspaper qualified to publish legal notices, advertisements and publications as provided in Section 106 of Title 25, Oklahoma Statutes 1971 and 1982 as amended, and thereafter, and complies with all other requirements of the laws of Oklahoma with reference to legal publications. That said notice, a true copy of which is attached hereto was published in the regular edition of said newspaper during the period and time of publication and not in a supplement, on the ABOVE LISTED DATE(S) Representative Signature Subscribed to and sworn to me this 15th day of August, 2007. Notary Public !1,212 NAN Y CAROL MOORE My commission number: 06011684 My commission expires: December 8, 2010 Customer #: 00000779 Customer: CITY OF OWASSO Publisher's Fee: 54.81 :. =010iftm NOW Y pMy Cortuntss Co 37285 Published in the Owasso Reporter, Owasso Tulsa County, Oklahoma. August 7 & 14. 2007. NOTICE TO BIDDERS Scaled Bids ter the construction of o 375' BALL FIELD AND ALL APPURTENANCES THERETO AT THE OWASSO SPORTS PARK SOUTH will be received by the City of Owasso at the Owasso City Hall, 111 North Main, PO Box 180, Owasso, Oklahoma 74055 until 2:00 p.m. on the 5th day of September, 2007, and then at said City Hall publicly opened and read aloud. Said improvements shall include all items in the specifications. A MANDATORY pro-bid corn Terence will be held at 2:00 p.m. on August 27, 2007 at Owasso City Hali. A failure to attend the mandatory pre -bid conference will dis- qualify the bidder from bidding on the project. Further information regarding specifications and bidding documents can be obtained by contacting the Director of Parks at 371.7975 dur- ing regular working hours. Copies of the Contract Documents may be purchased at Owasso City Hail upon payment of Thirty Dollars ($30.00) for each set, which is the cost of reproduction and will NOT be refunded. /s/ Marcia Boulwell Marcia Boutwell, Contract Administrator August 7, 2007 MEMORANDUM TO: THE HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO FROM: RODNEY J. RAY CITY MANAGER SUBJECT: APPOINTMENTS TO VARIOUS BOARDS AND COMMISSIONS DATE: September 6, 2007 BACKGROUND: Pursuant to authority contained in Article 2, Section 2 -4, subsection (e) of the Charter of the City of Owasso, the City Council has established rules and procedures that provide, generally, for the Mayor to appoint members to various boards, commissions, trusts, and committees; such appointments subject to confirmation by the City Council. In order to continue citizen participation on these committees, there are three appointments to various positions that require discussion and action by the City Council as a result of vacancies created. The purpose of this memorandum is to provide you with background information of the various Boards and Commissions in need of discussion. Please note that the Council's past practice has been to conduct discussion with a subsequent nomination by the Mayor who then seeks City council confirmation of those nominations. Those positions currently vacant are: • Audit Committee (Business Person) • Owasso Sales Tax Watchdog Committee (Citizen at Large) • Tulsa County Vision 2025 Sales Tax Overview Committee AUDIT COMMITTEE: On August 15, 2006, the City Council approved Ordinance No. 872, establishing an Audit Committee and adopting procedures for the committee to follow. The purpose of this audit committee is to assist in overseeing the annual audit of financial statements, ensure the person or organization completing the audit is independent of city staff, and address control and compliance weaknesses. The Audit Committee is comprised of five (5) voting members to include one (1) City Councilor, and two (2) non - voting ex- officio members. The current committee is comprised as follows: Banker: Mr. Dennis Phillips, First Bank of Owasso Businessperson: Ms. Dorothy Carson, CPA, Kallenberger & Assoc. Non - practicing CPA: Mr. John Manning, Oneok Mr. Guy Nightingale, Williams Auditor City Council: Mayor Stephen Cataudella The ordinance sets specific qualifications for appointees to the Audit Committee to include (1) residents must live within the city fence line, or own a business located in the city, or be employed within the city at the time of the appointment and throughout the incumbency; and, (2) members must possess knowledge of accounting, auditing and financial reporting and possess relevant experience such as a corporate officer, auditor, attorney or professional consultant to business, government or organizations. Committee members serve three (3) year staggered terms (with the exception of the appointed City Council member, who shall serve a one (1) year term). On August 28, 2007, staff received a resignation letter from Dorothy Carson, the Chairman of the Committee and "Business Person" representative. Ms. Carson is moving out of the Owasso fence line, effective September 1, 2007 and therefore must forfeit her position on the committee. SALES TAX WATCHDOG COMMITTEE: The Owasso Sales Tax Watchdog Committee was formed following the 2003 tax extension bond election to maintain strong citizen participation throughout the life of the sales tax and insure proper use of revenues generated. On April 20, 2004, Council adopted a policy outlining the requirements for future appointments to the Watchdog Committee. A copy of the policy is attached for your review. The requirement for the Member at Large position is an individual who resides within the Owasso fence line and not presently serving in any elective or other Council appointive position with the City of Owasso. Mr. Guy Nightingale was appointed to represent one of five Citizen at Large positions. Mr. Nightingale was appointed to the Audit Committee and therefore must forfeit his seat on the watchdog committee. TULSA COUNTY VISION 2025 SALES TAX OVERVIEW COMMITTEE: The Tulsa County Vision Watchdog Committee is comprised of representatives from all of the county's cities. The County Commissioners must make the actual appointment; however, they request each city provide a recommendation for appointment. This committee meets monthly to review financial and progress reports from the various Vision 2025 projects. Owasso's representative is Mr. Erick Miller. Mr. Miller's three year appointment has expired and the committee chairman has requested Owasso take action to submit a recommendation for appointment. Mr. Erik Miller, a member of the Owasso Sales Tax Watchdog Committee, has indicated his desire to continue serving on the Overview Committee. According to the Committee Secretary, Mr. Miller has attended all scheduled meetings and is active in the discussions held. TALENT BANK APPLICATIONS: Attached for your review and discussion are the talent bank applications that have been received by individuals who are interested in serving their community on the various Boards and Commissions. It should be noted, that the Audit Committee was not an available option when these talent bank applications were submitted. The talent bank application has been updated and this committee is now listed as an option. ATTACHMENTS: 1. Resignation Letter from Dorothy Carson 2. Audit Committee Member List 3. Sales Tax Watchdog Appointment Policy 4. Sales Tax Watchdog Committee Member List 4. Talent Bank Applications received to date KALLENBERGER & ASSOCIATES Mr. Stephen Cataudella Mayor, City of Owasso Owasso, OK 74055 Dear Mayor Cataudella, An Accountancy Corporation Certified Public Accountants Tulsa Exchange Center East 4606 S. Garnett, Suite 402 Tulsa, Oklahoma 74146 Phone 918- 270 -1232 Fax 918- 627 -7420 www.kalacpa.com Please accept this letter of resignation as member and Chair of the City of Owasso Audit Committee. It has been an honor to serve on this committee and to be involved in the creation of it. I no longer meet the requirements to serve on this committee as my family is moving out of Owasso as of September 1, 2007. While I regret having to give up my position, it is an exciting time for my family as we have wanted a new home in the country for some time. If I am needed to serve until a replacement can be found, I'm perfectly willing to do so. We are moving outside of Claremore, not very far from Oologah Lake so I'll still be close by. Again, it was an honor to be involved in City management; especially since I've been a resident for such a long time. Good luck in the future. Sincerely, Dorothy Carson OWASSO AUDIT COMMITTEE FY 2007 -2008 OWASSO, OKLAHOMA MEMBERS VACANT — Chair Term Expires: 06/30/2008 Stephen Cataudella City Council 10302 E 93rd PL N Owasso, OK 74055 H) 274 -6823 C) 688 -0177 scataudellagcityofowasso. com Term Expires: 06/30/2008 STAFF SUPPORT: Rodney Ray City Manager (918) 376 -1502 Guy Nightingale — Secretary 9902 East 93rd Court North Owasso, OK 74055 Term Expires: 06/30/2009 Dennis Phillips First Bank of Owasso 8505 N 121" St E Ave Owasso, OK 74055 W) 272 -8245 dennispgfirstbank.net Term Expires: 06/30/2010 Angela Hess Finance Director (918) 376 -1525 John Manning ONEOK, Inc. 100 W. 5th Street Tulsa, OK 74103 Term Expires: 06/30/2008 The purpose of the audit committee is to help oversee the audit of financial statements, ensure the auditor is independent of management and address control and compliance weaknesses. Meets at least twice annually at a time and place as called by the chairman. Meetings are typically conducted in the City Hall Finance conference room. Terms expire on June 30 of each year; with some members serving by virtue of another office or authority. SABoards and Committees \Audit Committee \2007.doc POLICY STATEMENT OWASSO CITY COUNCIL CITY OF OWASSO, OKLAHOMA April 20, 2004 The Sales Tax Watchdog Committee was initially formed as a part of the 1988 Sales Tax Extension for the purpose of providing a body of representatives from various interest groups within the Owasso community to monitor the use of the designated third penny of local sales tax. Individuals from the representative group as well as from at large are appointed to this committee by the Mayor and confirmed by the City Council. Such persons are charged with meeting on a regular basis to review the status of capital improvement projects funded by the third penny sales tax. The passage of Ordinance Number 763 and 766 by the City Council as well as the subsequent approval of such ordinances by the qualified electors of the City of Owasso assured a continuation of the Sales Tax Watchdog Committee and the oversight given by such committee. In order to ensure the integrity of the composition of the Sales Tax Watchdog Committee, the City Council of the City of Owasso adopts the following criteria as guidelines for the future appointments to the Owasso Sales Tax Watchdog Committee. Each appointee must be a resident within the area defined as the Owasso fenceline and /or school district (herein referred to as the "service area ") and must not be presently serving in any elective or other Council appointive position with the City of Owasso; 2. NEWS MEDIA APPOINTMENTS -An individual who conducts media - related activities within the service area as their primary career or business; RETAIL BUSINESS APPOINTMENTS- An individual who operates a retail outlet, that being a business conducting direct sales to the public within the service area; 4. SERVICE BUSINESS APPOINTMENTS -An individual who operates a service business, that being a business providing direct services to the public within the service area; EDUCATION APPOINTMENTS -An individual employed by and actively engaged in an Owasso school, either as an administrator or a teacher, and who resides in the service area, 6. RECREATION APPOINTMENTS -An individual who is an active member of an organized group promoting the development of amateur sports and recreation in the service area; 7. BUILDING INDUSTRY APPOINTMENTS -An individual who is engaged in real estate improvement consisting of construction and /or development and having his /her primary business within the service area; SENIOR CITIZEN APPOINTMENTS -An individual who has attained the age of 60 years or more and who reside within the service area; 9. FINANCIAL APPOINTMENTS -An individual who is an officer or employee of a financial institution engaging in banking, the brokerage of stocks or bonds, or other major financial activity within the defined service area; and, 10. MEMBERS AT LARGE APPOINTMENTS -An individual who is a resident within the Service area. The Sales Tax Watchdog Committee shall consist of fourteen (14) members selected from the following, News Media-------- - - - - -- -One Position Retail Business----- - - - - -- -Two Positions Service Business--- - - - - -- -Two Positions Education----------- - - - - -- -One Position Recreation---------- - - - - -- -One Position Building Industry -- - - - - -- -One Position Senior Citizen------ - - - - -- -One Positions Financial------------ - - - - -- -One Position Members at Large-- - - - - -- -Four Positions. A vacancy in any appointed position is hereby declared to exist upon the occurrence of any of the following events, to -wit: 1. Any appointee absent from one -half (1/2) of all regular or special meetings in any twenty -four (24) consecutive month period; 2. Any appointee who moves his /her residence out of the service area; or, 3. Any appointee who is no longer employed or engaged in the category from which he /she was appointed. The City Council shall be the sole judge of the qualifications of the appointees. Once a vacancy has been determined to exist by the City Council, the City Council shall appoint an individual possessing the requisite qualifications to serve from the respective category on the Sales Tax Watchdog Committee. The Sales Tax Watchdog Committee shall meet not less than two (2) times per fiscal year. Such two regular meetings are hereby set for the fourth Monday of January and the fourth Monday of July, and thereafter the fourth Mondays in January and July of each succeeding year thereafter. Approved this 20th day of April, 2004. CITY OF OWASSO, OKLAHOMA 2z4.— Gary oc an, Mayor Sales Tax Watchdog Committee Owasso, Oklahoma News Media (1) Service Business (2) Members at Large (5) Randy Cowling Bob Buss 7713 N 126th East Ave. The Owasso Reporter Charney, Buss & Williams Owasso, OK 74055 202 East Second Ave PO Box 240 VACANT Owasso, OK 74055 Owasso, OK 74055 W) 272 -5338 rbuss@cbwok.com Senior Citizen (1) Retail Business (2) Steve Mowery Jeff Ferguson Danny Ewing Mowery's Funeral Home 8808 N 127th E Avenue Ewing's Fine Jewelry 10404 N. 143rd East Avenue Owasso, OK 74055 12317 E 96th St North Owasso, OK 74055 Cell: 232 -8492 Owasso, OK 74055 272 -2995 Lug son@cyntergyaec.com moweryfsntulsacoxmail.com Joe Sparks Building Industry (1) Erik Miller The Lanes at Coffee Creek Jeff Westerfield 7713 N 126th East Ave. 10301 N. Owasso Expwy. 17015 E 118 St North Owasso, OK 74055 Owasso, OK 74055 Collinsville, Ok 74021 272 -0964 W) 274 -0400 371 -7961 westerfieldcorpgprodig Education (1) Senior Citizen (1) Matthew Roberts David Boggs Bob Barnes 404 North Dogwood Owasso Public Schools 16150 E 120 St N Owasso, OK 74055 5116 E 86th Street North Collinsville, Ok 74021 Owasso, OK 74055 371 -4367 Mark Callery 272 -1327 11609 E 100' St N boggsd@owasso.kl2.ok.us Owasso, OK 74055 Recreation (1) Financial (1) Staff Support Donna Pepper Brenda Snow Rodney Ray - City Manager 13003 E. 90th Street North F &M Bank 376 -1502 Owasso, Ok 74055 12041 E 96th Street North Sherry Bishop - City Treasurer 272 -1485 Owasso, OK 74055 376 -1525 donnanennera,,cox.net 748 -7141 bsnowgfmbanktul sa. com This committee was formed following the 2003 tax extension bond election for the purpose of maintaining a strong citizen participation effort throughout the life of the sales tax extension and to insure the proper use of revenues generated. The committee meets on the second Monday of January and July. Members are appointed for the life of the sales tax extension or until resignation or events cause a termination as defined in the committee policy. MEMORANDUM TO: HONORABLE MAYOR AND COUNCIL CITY OF OWASSO FROM: ERIC WILES COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: PELIVAN TRANSIT PILOT PROGRAM DATE: September 6, 2007 BACKGROUND: Following the August 14, 2007 worksession discussion regarding the Pelivan Transit Pilot Program ( a demand response transportation service operated by the Grand Gateway Economic Development Association), the city staff conducted a follow -up meeting on Thursday, September 6, 2007 with representatives from Pelivan Transit to finalize information necessary to bring to the City Council for further discussion at the September worksession. Following a complete staff review of the new information received, a thorough report relating to the pilot program will be presented to the Council at the workession. However, the staff would like to relay some information received regarding the funding of the pilot program. As you may recall, Pelivan Transit received a federal grant in the amount of $150,805 that would enable the organization to offer the transportation services in the Owasso area using two new six - passenger minivans. While this grant would cover the majority of costs for services, a local match requirement in the amount of $84,925 would be necessary to complete the funding for the first -year cost of service. During the August worksession, other funding options (such as other grant monies and local business contributions) were discussed; however no firm commitments had been received. At Thursday's meeting, Pelivan Transit representatives confirmed the pilot program has received an additional $37,950 from the Oklahoma State Revolving Fund and a commitment from the Baptist Retirement Village in the amount of $26,000. With these additional funding sources, the remaining funds needed to cover the first -year cost of the pilot program now total $20,975. As noted above, a detailed memorandum is currently being prepared and will be presented at Tuesday evening's meeting. MEMORANDUM TO: THE HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO FROM: JULIE TROUT LOMBARDI CITY ATTORNEY ERIC WILES COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: LEASE AGREEMENT BETWEEN THE CITY OF OWASSO AND KOURTIS REALTY LTD., CO. DATE: September 11, 2007 BACKGROUND: In connection with the Garnett widening project, the service road along the west side of N. Garnett Road between E. 86th Street North and E. 96th Street North was removed creating an excess of right -of -way. Specifically, approximately 18,377 square feet of land located immediately north of East 16t Street and adjacent to Ron's Hamburgers remains excess right -of- way following the completion of the widening project. This land is owned by the City and, although not used for any purpose, remains the responsibility of the City to mow and maintain. The landowner of the property upon which Ron's Hamburgers is located has requested that the City lease the subject 18,377 square feet of property to them for a period of ninety -nine (99) years with four (4) additional ten (10) year renewal options available to the lessee. Nominal rent would be paid by the lessee to the City. However, the lessee would mow and maintain the property thereby relieving the City of that responsibility and expense. In addition, the lessee has expressed its intent to pave at least a portion of this property for use as an additional parking area for Ron's Hamburgers, thereby alleviating overflow parking on dirt as currently occurs. Because the lessee intends to construct permanent improvements on the subject property, the City would agree to reimburse the lessee on a declining percentage scale for those improvements if, within the first five (5) years of the lease term, it were necessary to terminate the lease to widen the existing right -of -way or locate utilities on the property. Pursuant to the City Council's direction at the July 10, 2007 meeting when this item was originally discussed, the Community Development staff has researched potential uses of the property, taking into account its location and physical characteristics. The staff has concluded that the right -of -way is larger than is needed for traffic and drainage flow which would allow the area at issue to be used for certain other purposes, including use of the land for a paved parking lot. However, the right -of -way cannot be used to erect permanent buildings of any type. Staff has also determined that the affected area falls significantly short of meeting the bulk and area requirements needed to develop the property on its own. In keeping with direction provided by the Council at the July 10, 2007 meeting, staff has researched the possibility of locating any viable business on the property in issue. As a result, staff has concluded that the physical characteristics of the property prohibit development because the property is too small and fails to meet bulk and area requirements. Failure to meet these requirements prohibits the locating of a business or structure of any type on this property. In addition, a water main is located near the western edge of the property. While a parking lot may be constructed over a water main, buildings may not be built over them. In summary, the physical characteristics, the property's failure to meet bulk and area requirements, and the location of the water main all serve to prevent this property from being developed commercially. Thus, the property is suitable for only limited use. RECOMMENDATION: Staff intends to recommend City Council approval of the proposed Lease Agreement between the City of Owasso and Kourtis Realty Ltd., Co., and authorize the mayor to execute the Lease Agreement. ATTACHMENTS: Lease Agreement Map Illustrating Location of Right -of -Way LEASE AGREEMENT STATE OF OKLAHOMA ) KNOW ALL PERSONS BY THESE PRESENTS: COUNTY OF TULSA ) THIS LEASE AGREEMENT (the "Lease ") is made and entered into by and between CITY OF OWASSO, an Oklahoma municipal corporation (the "Lessor "), and KOURTIS REALTY LTD., CO., an Oklahoma limited liability company (the "Lessee "). WITNESSETH: WHEREAS, Lessor is the owner of that certain parcel of land located in the City of Owasso, County of Tulsa, State of Oklahoma being more particularly described on Exhibit "A" attached hereto and made a part hereof for all purposes (the "Lessor's Property "); and WHEREAS, Lessee is desirous of leasing the Lessor's Property from Lessor, and Lessor is agreeable to same, subject to the terms and conditions hereinafter set forth. NOW, THEREFORE, for and in consideration of the foregoing Lessor's Property and the mutual and respective covenants and undertakings of Lessor and Lessee hereunder, such parties hereby agree as follows: ARTICLE I DEMISE AND DESCRIPTION OF LESSOR'S PROPERTY 1.01. In consideration of the mutual promises herein made, and subject to all of the terms and conditions hereof, Lessor hereby demises and leases to Lessee, and Lessee hereby accepts, takes and hires from Lessor, the Lessor's Property free and clear of all liens, restrictions and other encumbrances other than those matters of public record (the "Permitted Exceptions "). Notwithstanding anything to the contrary contained herein, Lessor and Lessee acknowledge and agree that the Lessor's Property may be improved, in Lessee's sole discretion, with a hard -top parking surface, landscaping and related improvements (the "Improvements "). By its execution hereof, Lessor irrevocably covenants and agrees that (i) Lessor shall cooperate with Lessee in connection with the Improvements, as aforesaid, including, without limitation, executing any documentation required of a lessee in connection therewith; (ii) the leasehold estate and all rights, title and interests hereby created shall be and remain subject, inferior and subordinate to the Plat of Ator Heights III Addition without the necessity of any further action or writing by Lessee or any other party; and (iii) Lessee shall be fully responsible for the construction and maintenance of the Improvements during the Term (hereinafter defined in Section 2.01) of this Lease. Page 1 of 13 ARTICLE II TERM ANDRENEWAL OPTION 2.01. The stated term of this Lease shall be for the period commencing at 12:00 a.m., local time, in Owasso, Oklahoma on July 1, 2007 (the "Commencement Date ") and, unless sooner terminated pursuant to the terms hereof, ending at 11:59 p.m., local time in Owasso, Oklahoma, on June 30, 2106. The stated term of this Lease, as same may be and is properly renewed and extended in accordance with Section 2.02 below or any amendments properly entered into by and between Lessor and Lessee, shall be referred to as the "Term" of the Lease. 2.02. Provided that Lessee shall not then be in default hereunder, then Lessee shall have and is hereby granted four (4) separate and distinct options to renew and extend the Term of this Lease, each for an additional ten (10) years upon the same terms and conditions as herein provided. Lessee shall exercise such renewal and extension option by giving Lessor written notice thereof not less than thirty (30) days prior to the originally scheduled expiration of the Term of the Lease. Failure by the Lessee to timely and properly exercise the renewal and extension option shall constitute a waiver thereof and, if applicable, any subsequent option to extend the Term of this Lease. 2.03. During the Term of this Lease, as same may be extended, the Improvements shall be owned by Lessee. ARTICLE III RFNT 3.01. As base rental (the "Base Rent ") for the Term of this Lease, Lessee binds and obligates itself to pay Lessor, one Dollar ($1.00) upon execution of this Lease and One Dollar ($1.00) per year thereafter on the 15`h day of each January, commencing January 15, 2008. ARTICLE IV TAXF.. 4.01. Lessor represents and warrants that the Lessor's property is exempt from ad valorem taxes and, therefore, Lessee shall not be obligated to pay any property taxes. ARTICLE V USE OF LESSOR'S PROPERTY AND COMPLIANCE WITH LAWS 5.01. The Lessor's Property shall be used by Lessee for parking, access, landscaping, utility and ancillary purposes to the commercial business purposes located in Ator Heights III. 5.02. Notwithstanding anything to the contrary contained herein, Lessee, at its sole cost and expense, shall promptly execute and fulfill any and all applicable orders, directives and requirements and otherwise comply with any and all applicable codes, rules, regulations, ordinances, statutes and laws, orders, decrees and the like (collectively, the "Applicable Laws ") Page 2 of 13 of the municipal, county, state and federal governments, and all agencies, commissions, boards or departments thereof and all other official, public, governmental or quasi - governmental institutions, authorities, subdivisions or instrumentalities having jurisdiction over the Lessor's Property which in any way relate to Lessee's use or occupancy of the Lessor's Property; provided, however, in no event shall Lessee be responsible for any damages or costs of any required or necessary repair, cleanup, detoxification or other remedial work to cure or correct any violation of or to return the Lessor's Property to compliance with the Environmental Response, Compensation and Liability Act of 1980, as, amended by the Superfund Amendment and Reauthorization Act of 1986, the Resource Conservation and Recovery Act, as amended, the Federal Water Pollution Control Act, as amended, the Clean Air Act, the Toxic Substances Control Act, the Emergency Planning and Community Project to Know Act of 1986, and all other Applicable Laws relating to environmental issues or conditions or industrial health or hygiene (collectively, the "Environmental Laws "). Notwithstanding anything herein to the contrary, Lessee represents and warrants that it will not hereafter, nor will it allow any of its agents, employees, contractors or any other person acting by, through or under it, to violate any Environmental Laws. 5.03. Notwithstanding anything to the contrary contained herein, Lessee shall comply with any and all applicable Permitted Exceptions. 5.04. Lessor hereby represents and warrants to its current actual knowledge that the Lessor's Property is in compliance with all Applicable Laws, Environmental Laws and the Permitted Exceptions. ARTICLE VI MAINTENANCE, REPAIRS AND PAVED AND LANDSCAPED AREAS 6.01. Lessee, at its sole cost and expense, shall maintain, repair, and replace all portions of the Improvements on the Lessor's Property. Lessee, at its sole cost and expense shall at all times keep all portions of the Lessor's Property in good order, condition, and repair and in a clean, sanitary, and safe condition and in accordance with any and all Applicable Laws. Lessee shall not cause waste, damage, or not cause injury to the Lessor's Property. Lessee will surrender and deliver up the Lessor's Property upon the expiration of the Term of this Lease, or its earlier termination, in the same condition which existed after the completion of the Improvements. In the event the Lessor needs to terminate this Lease as to all or a portion of the Lessor's Property during the Term of this Lease for purposes of widening the existing right -of- way or utility relocation on the Lessor's Property, Lessor may do so upon sixty (60) days prior written notice and without penalty or cost except for reimbursement to the Lessee by Lessor for improvements made to the property by Lessee. This amount of reimbursement shall decrease annually as follows: The Lessor shall reimburse the Lessee for the cost of the Improvements (a) 100 % in Year 1; (b) 80% in Year 2; (c) 60% in Year 3; (d) 40% in Year 4; and 20% in Year 5. Notwithstanding anything herein to the contrary, except as provided above, the Lessor shall not be responsible for making any repairs to the property in the event utility construction, maintenance or relocation is required on the Lessor's Property. Page 3 of 13 ARTICLE VII cTCWQ, 7.01. Lessee, at its sole cost and expense, without approval of Lessor, shall have the exclusive right to erect or attach to the Lessor's Property such signs as it may deem proper and necessary, provided that each such sign complies with all Applicable Laws. ARTICLE VIII ASSIGNMENT AND SUBLETTING 8.01. Lessee may transfer or assign this Lease or any interest herein, may sublease all or any part of the Lessor's Property, may mortgage, pledge or hypothecate its leasehold interest, may grant any concession or license within the Lessor's Property, without the prior written consent of Lessor, in its sole and absolute discretion. ARTICLE IX EMINENT DOMAIN 9.01. If ten percent (10 %) or more of the Lessor's Property is permanently taken, and the remaining portion will not be reasonably adequate for the operation of Lessee's business after the completion of such repairs or alterations as is necessary to continue operations of the Improvements, either Lessor or Lessee shall have the right to elect to terminate this Lease within thirty (30) days after the taking of permanent possession by public authority by delivering written notice thereof to the other. If neither Lessor nor Lessee elects, or they are not entitled to elect, to terminate this Lease, as aforesaid, then (a) Lessee shall remain in possession of the remainder of the Lessor's Property not so taken, in which event this Lease shall terminate on the portion of the Lessor's Property taken from the day possession thereof shall be required by the public authority, and (b) all the terms of this Lease shall continue in effect with respect to the portion of the Lessor's Property not taken through the expiration of the Term of this Lease. 9.02. If the whole or any part of the Improvements shall be taken by any public authority under the power of eminent domain, or deed in lieu thereof, Lessor shall be entitled to receive and retain all compensation, awards and the like paid or payable by the condemning authority with respect thereto, and payment to Lessee for any improvements made shall be paid By Lessor to Lessee subject to the schedule of compensation set forth in Section 6.01, in any event not to exceed the total amount of compensation received by Lessor. ARTICLE X CASUALTY 10.01. In the event the Lessor's Property or the Improvements, or any part thereof shall be damaged by casualty, Lessee shall give prompt written notice thereof to Lessor, and Lessee shall receive the proceeds from any Casualty Insurance. Reimbursement for damage to any improvements made by Lessee shall be made to Lessee by Lessor subject to the annual schedule Page 4 of 13 of compensation set forth in Section 6.01, in any event not to exceed the total amount of proceeds received by Lessor. ARTICLE XI LESSOR'S LIABILITY 11.01 Except in the event of a wrongful eviction of Lessee by Lessor, Lessor's liability for breach of any covenant hereof shall be expressly limited to the recovery against the Lessor's interest in the Property. If Lessor sells or transfers all or part of the Property, such transfer shall be subject to all the terms and conditions of this Lease including (without limitation) Lessee's Right of First Refusal as more particularly provided in Article XVI. Lessor shall not be liable for any injuries or damages occurring on the Property during the term of this lease, and Lessee hereby agrees to indemnify Lessor for any such damages which Lessor may be required to pay arising out of accidents, injuries or occurrences on the Property during the lease term. ARTICLE XII FORCE MAJEURE 12.01. Whenever a period of time is herein prescribed for the taking of any action by either party, such party shall not be liable or responsible for, and there shall be excluded from the computation of such period, any delays due to strikes, riots, acts of God, shortages of labor or materials, war, governmental law, regulations or restrictions or any other cause whatsoever beyond the control of the obligated party, not to exceed thirty (30) days. ARTICLE XIII RECORDATION 13.01. Lessee shall not record this Lease without the written consent of Lessor; provided, however, that either Lessor or Lessee, upon the request of the other, shall join in the execution of a memorandum or so called "short form" of this Lease for the purposes of recordation. Said memorandum or "short form" of this Lease shall describe the parties, the Lessor's Property and the Term of this Lease only and shall incorporate the other provisions of this Lease by reference. ARTICLE XIV QUIET ENJOYMENT 14.01. So long as Lessee shall timely and properly pay the Base Rent, and otherwise perform and satisfy all other obligations, duties and responsibilities required hereunder, Lessee shall during the tern hereof freely, peacefully and quietly enjoy and occupy the Lessor's Property for the Term of the Lease, subject only to the Permitted Exceptions and the terms and conditions hereof. Page 5 of 13 ARTICLE XV ENCUMBRANCE OF LEASEHOLD 15.01. Notwithstanding anything contained in this Lease to the contrary, Lessee may, at any time and from time to time, encumber the leasehold interest by deed of trust, mortgage, or other security instrument, without obtaining the consent of the Lessor, but no such encumbrance shall constitute a lien on the fee title of Lessor, and the indebtedness incurred by the encumbrance shall at all times be and remain inferior and subordinate to Lessor's fee simple estate in the Lessor's Property. References in this Lease to "Lender" refer to any person or entity to whom the Lessee has encumbered its leasehold interest. 15.02. At any time after execution and recordation in Tulsa County, Oklahoma, of any mortgage or deed of trust encumbering Lessee's leasehold interest, Lender shall notify Lessor in writing that the mortgage or deed of trust has been given and executed by Lessee and furnish Lessor with the address to which it desires copies of notices to be mailed. Lessor agrees to mail to such Lender or to any agent or representative designated by such Lender, at the addresses given, duplicate copies of all written notices which Lessor gives or serves on Lessee under and pursuant to the terms and provision of this Lease after the receipt of such a notice from Lender. 15.03. Lessor hereby agrees to subordinate any lien it has against the Lessee or Lessee's property in favor of any lender who extends funds to Lessee for the purpose of financing the Improvements and to promptly execute any and all such reasonable documents required by Lessee's lender to evidence Lessor's subordination of Lessor's lien. ARTICLE XVI MISCELLANEOUS 16.01. No amendment, modification, or alteration of the terms of this Lease shall be binding unless it is in writing, dated contemporaneous with or subsequent to the date of this Lease, and duly executed by the parties to this Lease. 16.02. Any notice, demand, request or other communication required, given or made under or in connection with this Lease shall be deemed delivered, upon receipt, if hand delivered, or whether actually received or not, when deposited in a regularly receptacle for the mail, sent by certified mail, return receipt requested, postage prepaid, addressed as follows: If to T .eccnr City of Owasso Attn: City Manager P.O. Box 180 Owasso, OK 74055 Page 6 of 13 If to Lessee: Kourtis Realty Ltd., Co. Attn: Pete Kourtis P.O. Box 419 Owasso, OK 74055 With _a copy to: E. Robert Buss P.O. Box 240 Owasso, OK 74055 16.03. This Lease shall be construed under and in accordance with the laws of the State of Oklahoma and is performable in Tulsa County, Oklahoma. 16.04. This Lease shall be binding on and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, legal representatives, successors, and assigns, whether voluntarily or by operation of law. 16.05. In case any one or more of the provisions contained in this Lease shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions thereof, and this Lease shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. 16.06. If any action at law or in equity is brought by the Lessee, Lessor shall not be responsible for the payment of Lessee's attorney's fees. 16.07. The parties hereby declare that it is impossible to measure in money the damages which will accrue to a party hereto, its successors or assigns by reason of a failure to perform any of the obligations under this Lease. Therefore, if a party hereto, or its legal representatives, successors, or assigns shall institute any action or proceeding to enforce the provisions hereof, any person against whom such action or proceeding is brought hereby agrees that specific performance may be sought and obtained for any breach of this Lease. 16.08. This Lease and all other copies of this Lease, insofar as they relate to the rights, duties, and remedies of the parties, shall be deemed to be one Lease. This Lease may be executed concurrently in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 16.09. This Lease contains the entire agreement between the parties with respect to the subject matter hereof, and Lessor and Lessee hereby acknowledge that they are not relying on any representation or promise of the other, or of any agency or cooperating agent, except as may be expressly set forth in this Lease. 16.10. Whenever herein the singular number is used, the same shall include the plural, and vice versa, and words of any gender shall include each other gender. 16.11. Lessor hereby grants to Lessee a right of first refusal and option to purchase the Lessor's Property in accordance with the terms of this Section 16.11, and fully subject to all statutory requirements requiring Lessor to obtain bids prior to sale of the property. Provided that Lessee is not then in default hereunder, upon receipt by Lessor of an acceptable, bona fide Page 7 of 13 written offer from a third party to purchase the Lessor's Property, as evidenced by a written contract encompassing all of the terms and conditions pertaining thereto (the "Third Party Contract "), Lessor shall provide written notice thereof to Lessee, together with a copy of the Third Party Contract (collectively, the "Notice "). Within fifteen (15) business days following Lessee's receipt of the Notice, Lessee may elect to exercise its right of first refusal and option to purchase the Lessor's Property upon the same terms and conditions set forth in the Third Party Contract by delivering written notice thereof to Lessor, accompanied by a written contract containing the identical terms and conditions as the Third Party Contract (the "Lessee's Contract "). In the event that Lessee timely exercises its right of first refusal and option to purchase the Lessor's Property as aforesaid, Lessor shall execute the Lessee's Contract, and Lessor and Lessee shall proceed to closing thereunder, and Lessor shall convey title to the Lessor's Property to Lessee by general warranty deed, subject only to the Permitted Exceptions, provided that the parties shall enter into a mutual termination of this Lease. If, for any reason, Lessee does not timely and properly exercise its right of first refusal and option to purchase the Lessor's Property, as aforesaid, or thereafter fails to timely consummate the closing thereunder, for any reason other than due to Lessor's default under the Lessee's Contract, Lessee shall be deemed to have waived its right of first refusal and option to purchase the Lessor's Property; provided, however, that in the event Lessee fails to timely and properly exercise its right of first refusal with respect to a particular Third Party Contract, but the closing thereunder is not consummated, Lessee's right of first refusal shall apply to the next Third Party Contract. EXECUTED by Lessor on this day of June, 2007. LESSOR: CITY OF OWASSO an Oklahoma Municipal Corporation ME ATTEST: City Clerk Stephen Cataudella, Mayor Page 8 of 13 EXECUTED by Lessee on this day of June, 2007. LESSEE: KOURTIS REALTY LTD., CO. Pete Kourtis, Manager Page 9 of 13 STATE OF OKLAHOMA ) ss. COUNTY OF TULSA ) Before me, the undersigned, a Notary Public, in and for said County and State, on this day of June, 2007, personally appeared Stephen Cataudella, Mayor of the City of Owasso, to me proved to be the identical person who executed the within and foregoing instrument, and acknowledged to me that he executed the same as his free and voluntary act and deed in his capacity as Mayor of said municipal corporation, for the uses and purposes herein set forth. IN WITNESS WHEREOF, I hereunto set my official signature and affixed my notarial seal the day and year last above written. Notary Public My Commission Expires: STATE OF OKLAHOMA ) ss. COUNTY OF TULSA ) Before me, the undersigned, a Notary Public, in and for said County and State, on this day of June, 2007, personally appeared Pete Kourtis, Manager of Kourtis Realty Ltd., Co., to me proved to be the identical person who executed the within and foregoing instrument, and acknowledged to me that he executed the same as his free and voluntary act and deed and as the free and voluntary act and deed of said corporation for the uses and purposes herein set forth. IN WITNESS WHEREOF, I hereunto set my official signature and affixed my notarial seal the day and year last above written. My Commission Expires: Notary Public Page 10 of 13 a X N n EXHIBIT 'A' 47.61 R 14 E EAST 96TH STREET NORTH ° a 0 O of T 0 r w rs z 39519 a a 21 fad 8 p � ray° N 0 Z g O Z EAST 86TH STREET NORTH Q 60.00' Location Map scnLE: r =z000' m z O F- U N 0 Z O � Q N N Q w o� i o ��•A0' V Scale: 1"=100' M z O W Z 0 Excess Property � Q 18,337± Sq.Ft. U Po8 East 16th Street A TRACT OF LAND LOCATED IN THE NORTHEAST QUARTER (NE /4) OF THE SOUTHEAST QUARTER (SE /4) OF SECTION NINETEEN (19) OF TOWNSHIP TWENTY —ONE (21) NORTH AND RANGE FOURTEEN (14) EAST OF THE INDIAN BASE AND MERIDIAN (I.B. &M.), ACCORDING TO THE U.S. GOVERNMENT SURVEY, THEREOF, CITY OF OWASSO, TULSA COUNTY, STATE OF OKLAHOMA; BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SE CORNER OF LOT 3 OF BLOCK 5 OF ATOR HEIGHTS THIRD ADDITION ACCORDING TO THE RECORDED PLAT THEREOF; THENCE N 1'18'19" W ALONG THE EAST LINE OF SAID ATOR HEIGHTS THIRD ADDITION A DISTANCE OF 397.40 FEET; THENCE N 88 °44'30" E A DISTANCE OF 47.61 FEET TO A POINT BEING 60.00 FEET WEST OF THE CENTERLINE OF PRESENT NORTH GARNETT ROAD; THENCE S 0 °53'56" E ALONG A LINE BEING 60.00 FEET WEST AND PARALLEL WITH THE CENTERLINE OF PRESENT NORTH GARNETT ROAD A DISTANCE OF 397.40 FEET; THENCE S 88 °44'30" W A DISTANCE OF 44.79 FEET TO THE POINT OF BEGINNING, AND CONTAINING 0.42 ACRES, MORE OR LESS. BASIS OF BEARING IS THE OKLAHOMA STATE PLANE COORDINATE SYSTEM. *_�Benchmark Surveying and Land Services, Inc. BOX 1078 PHONE (918) 274 -9081 OW.ASSO OKLAHOMA 74055 FAX. (919.)274 -0807 C.A. NO, 2235 EXP. DATE 6/30/08 DATE: 12/11/06 FILE: 2114.1912 W.O.: 13135 47.61 O O Q Q D' N Q L7 w � Q =o o� o M z O W Z � w � w' � Q U Po8 4 4.7 660.00' N N J EXHIBIT "B" Permitted Exceptions 1. Building lines and utility easements as shown on Plat for Ator Heights Third Addition to the City of Owasso, Tulsa County, State of Oklahoma. 2. Terms, conditions, provisions and easements of Right of Way Easement to Public Service Company of Oklahoma shown at page 92 of the abstract as shown in document dated March 1, 1956, and filed March 6, 1956, in Book 2663 at Page 561; as modified by Partial Release of Easement at page 93 of the abstract as shown in document dated January 23, 1973, filed January 24, 1973 in Book 4053 at Page 87. 3. Terms, conditions, provisions and easements of Dedication Deed at page 116 of the abstract to State of Oklahoma for Public Highway as shown in document dated March 30, 1959 and filed May 19, 1959, in Book 2966 at Page 510. 4. Terms, conditions, provisions and easements of Right of Way Agreement to Oklahoma Natural Gas Company shown at page 118 of the abstract as shown in document dated June 18, 1959, and filed July 6, 1959, in Book 2979 at Page 379. 5. Terms, conditions, provisions and easements of Right of Way Easement to City of Owasso shown at page 119 of the abstract as shown in document dated January 21, 1965, and filed January 22, 1965, in Book 3536 at Page 358. 6. Terms, conditions, provisions and easements of Dedication Deed at page 121 of the abstract to County of Tulsa for Public Highway as shown in document dated February 20, 1967 and filed February 20, 1967, in Book 3798 at Page 307. 7. Terms, conditions, provisions and easements of Right of Way Easement to Public Service Company of Oklahoma shown at page 137 of the abstract as shown in document dated May 11, 1967, and filed May 31, 1967, in Book 3808 at Page 679. 8. Terms, conditions, provisions, and dedications described in Quit Claim Deed at page 144 of the abstract to Town of Owasso as shown in document dated November 27, 1970 and filed December 15, 1970, in Book 3949 at Page 1411. Page 12 of 13 9. Terms, conditions, provisions and easements of Right of Way Agreement to Oklahoma Natural Gas Company shown at page 146 of the abstract as shown in document dated January 20, 1975, and filed January 27, 1975, in Book 4151 at Page 1648. 10. Terms, conditions, provisions and easements of Assignment of Leases, at page 415 of the abstract, dated December 22, 1995, and filed January 19, 1996, in Book 5776 at Page 1225. 11. Covenants, conditions, restrictions, easements, setback lines and limits of no access contained in Deed of Dedication for Ator Heights Third Addition, shown on page 148 of the abstract, dated July 21, 1972, and filed July 21, 1972, in Plat No. 3309; as modified by Amendment at page 155 of the abstract, dated August 16, 1972, and filed September 6, 1972, in Book 4933 at Page 1055; as modified by Amendment to Deed of Dedication at page 157 of the abstract, dated March 29, 1973, file April 19, 1973, in Book 4064 at Page 1948. 12. Covenants, conditions, restrictions, easements, setback lines and limits of no access contained in Amendment to Plat and Deed of Dedication for Ator Heights Third Addition, at page 166 of the abstract, dated August 19, 1975, and filed February 17, 1976, in Book 4202 at Page 2434. 13. Covenants, conditions, restrictions, easements, setback lines and limits of no access contained in Declaration of Condominium Ownership (Lot 2), at page 231 of the abstract, dated May 18, 1983, and filed May 26, 1983, in Book 4694 at Page 339; as amended by Amendment of Declaration of Condominium at page 241 of the abstract, dated October 11, 1985, file October 18, 1985, in Book 4900 at Page 49. Page 13 of 13 a N n M Scale: 1"=100' Excess Property 18,337± Sq.Ft. EXHIBIT 'A' m O U N t1 i0 w z East 76rn *>rreer MO i A TRACT OF LAND LOCATED IN THE NORTHEAST QUARTER (NE /4) OF THE SOUTHEAST QUARTER (SE /4) OF SECTION NINETEEN (19) OF TOWNSHIP TWENTY —ONE (21) NORTH AND RANGE FOURTEEN (14) EAST OF THE INDIAN BASE AND MERIDIAN (I.B. &M.), ACCORDING TO THE U.S. GOVERNMENT SURVEY, THEREOF, CITY OF OWASSO, TULSA COUNTY, STATE OF OKLAHOMA; BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SE CORNER OF LOT 3 OF BLOCK 5 OF ATOR HEIGHTS THIRD ADDITION ACCORDING TO THE RECORDED PLAT THEREOF; THENCE N 1 °18'19" W ALONG THE EAST LINE OF SAID ATOR HEIGHTS THIRD ADDITION A DISTANCE OF 397.40 FEET; THENCE N 88 °44'30" E A DISTANCE OF 47.61 FEET TO A POINT BEING 60.00 FEET WEST OF THE CENTERLINE OF PRESENT NORTH GARNETT ROAD; THENCE S 0 °53'56" E ALONG A LINE BEING 60.00 FEET WEST AND PARALLEL WITH THE CENTERLINE OF PRESENT NORTH GARNETT ROAD A DISTANCE OF 397.40 FEET; THENCE S 88 °44'30" W A DISTANCE OF 44.79 FEET TO THE POINT OF BEGINNING, AND CONTAINING 0.42 ACRES, MORE OR LESS. BASIS OF BEARING IS THE OKLAHOMA STATE PLANE COORDINATE SYSTEM. Benchmark Surveying and Land Services, Inc. P.0 BOX 1078 PHONE: 19 18) 2749081 O WA850 OKLAHOMA 74055 FAX. (MB)174-Q81)7 C.A. NO. 2235 EXP. DATE 6/30N8 DATE: 12/11/06 FILE: 2114.1912 W.O.: 13135 rn 3 X M r1 R 14 E EAST 96TH STREET NORTH EAST 86TH STREET NORTH Exhibit Excess Right -of -Way North Garnett Road Excess Property 18,337± Sq.Ft. 1 14 4.7 66 East 16th Street 60, 47.61 O Q M O- Q 00' o P_ U w N !o w J V) N Q W w 0 w z; of L'i' Ld w'. U', ff k O W c� V Benchmark Surveying and Land Services, Inc. J P.O. BOX 1078 PHONE: (918) 274 -9081 OWASSO, OKLAHOMA 74055 FAX: (91 8)274-0807 C.A. NO. 2235 EXP. DATE 6/30/08 DATE: 12/11/06 MEMORANDUM TO: HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO FROM: SHERRY BISHOP ADMINISTRATIVE SERVICES DIRECTOR SUBJECT: GARNETT ROAD REGIONAL DETENTION FACILITY DATE: September 7, 2007 BACKGROUND: At the August work session, the City Council heard a proposed concept for the construction and financing of a regional detention facility in the area southwest of E. 96th Street North and N. Garnett Road. The concept included: • Acquisition of the property, • An ordinance requiring a fee in lieu of detention for undeveloped property within the drainage basin, • Design and construction of detention facilities, and • Financing the project with a Revenue Anticipation Note issued by the OPWA. On August 21, 2007, the purchase of the land, the contract for design and engineering services and the RAN financing were all approved by City Council and/or OPWA Trustee action. The remaining action to complete the concept is the approval of an ordinance establishing a mandatory fee in lieu of detention for all undeveloped property in the drainage basin. A proposed ordinance is being prepared that would: • Establish the Garnett Regional Detention Assessment Area; • Require the use of regional detention in the assessment area; • Assess a mandatory fee in lieu of detention due at final plat approval; • Authorize only the Council to waive or reduce the assessment fee; and • Authorize the assessment rate to be established by Resolution after final costs are known. The proposed ordinance will be provided to the City Council at the September 1 lth Work Session.