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Home My WebLink About2023 15_Series 2023 Loan Note OWRBPURSUANT TO THE LEGAL NOTICE AS IS REQUIRED BY THE OKLAHOMA OPEN MEETING ACT INCLUDING THE POSTING OF NOTICE AND AGENDA AS IS REQUIRED BY THE TERMS THEREOF, THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA (THE "CITY ") MET IN REGULAR SESSION IN THE OLD CENTRAL BUILDING, 109 NORTH BIRCH, OWASSO, OKLAHOMA, ON THE 11TH DAY OF JULY, 2023, AT 6:00 P.M. PRESENT: Vice Mayor Alvin Fruga, Councilor Doug Bonebrake, Councilor Paul Loving, Councilor Lyndell Dunn ABSENT: Mayor Kelly Lewis (OTHER PROCEEDINGS) Thereupon, the following resolution was introduced and discussed. Councilmember Lyndell Dunn moved passage of the Resolution and Councilmember Paul Loving seconded the motion. The motion carrying with it the approval of said Resolution was approved by the following vote: AYE: Vice Mayor Alvin Fruga, Councilor Doug Bonebrake, Councilor Paul Loving, Councilor Lyndell Dunn NAY: None The Resolution so approved is as follows: 197 D1013*111 _[�A /►[1�31i3t � A RESOLUTION OF THE CITY OF OWASSO, OKLAHOMA (THE "CITY ") APPROVING ACTION TAKEN BY THE OWASSO PUBLIC WORKS AUTHORITY (THE "AUTHORITY ") AUTHORIZING ISSUANCE, SALE AND DELIVERY OF THE AUTHORITY'S SERIES 2023 PROMISSORY NOTE TO OKLAHOMA WATER RESOURCES BOARD; RATIFYING AND CONFIRMING A LEASE AGREEMENT; AUTHORIZING DOCUMENTS PERTAINING TO A YEAR -TO -YEAR PLEDGE OF CERTAIN SALES TAX REVENUE; AND CONTAINING OTHER PROVISIONS RELATED THERETO. WHEREAS, The Owasso Public Works Authority (the "Authority ") did, by its Resolution adopted on July 11, 2023, authorize the issuance, sale and delivery of its Series 2023 Promissory Note to Oklahoma Water Resources Board, in order to finance the costs of certain improvements to the Authority's sanitary sewer system (the "Project "); and WHEREAS, the City Council of the City of Owasso, Oklahoma (the "City ") hereby determines that the actions taken by the Authority should be authorized and approved; and WHEREAS, the City hereby determines that such other action necessary or attendant to accomplishment of the referenced financing should be considered by the City Council of the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA: Section 1. Issuance of Note. That the issuance, sale and delivery of the Authority's Series 2023 Promissory Note to Oklahoma Water Resources Board in the principal amount of not to exceed $9,000,000.00 (the "2023 Note "), all as approved by said Authority on July 11, 2023, be and hereby is authorized, approved and ratified. Section 2. Approval. That all actions heretofore taken by the Authority in connection with the issuance, sale and delivery of the 2023 Note, and all other aspects of the transaction be and are hereby authorized, approved and ratified. Section 3. Lease Agreement. The Lease dated July 31, 1973, as amended by an Amendment to Lease dated as of July 1, 1996, between the City and the Authority (collectively, the "Lease Agreement"), whereby the City leases its water, sanitary sewer, garbage and trash collection systems and the Bailey Ranch Golf Club to the Authority, is hereby ratified and confirmed and the term of said Lease, as amended, shall extend until the 2023 Note is paid. Section 4. Sales Tax Pledee. That the Mayor or Vice Mayor and City Clerk or Deputy City Clerk be and are hereby authorized to execute and deliver any and all documentation on behalf of the City pertaining to a year -to -year pledge of certain sales tax revenue levied by the City. Section 5. Necessary Action. That the Mayor or Vice Mayor and City Clerk or Deputy City Clerk be and hereby are authorized and empowered to execute and deliver for and on behalf of the City any and all other documents or instruments reasonably necessary to accomplish the issuance, sale and delivery of the 2023 Note and all other aspects of the transaction. [Remainder of Page Intentionally Left Blank] APPROVED AND ADOPTED THIS 11TH DAY OF JULY, 2023. ATTEST: ,,yam O,c 0 CITY OF OWASSO, OKLAHOMA C9-1 (-- -Mayor ALAJ i l STATE OF OKLAHOMA ) )SS COUNTY OF TULSA ) I, the undersigned, City Clerk of the City of Owasso, Oklahoma, do hereby certify that the above and foregoing is a true, full and correct copy of an excerpt from the minutes of a meeting of the City Council of said City held on the date above stated, all as recorded in the official minutes of such meeting. I further certify that the "Open Meeting Law" was complied with for such meeting. GIVEN UNDER MY HAND THIS 11TH DAY OF JULY, 2023. .5 7 I Clerk �d O. O rd sd wivwW veucn.�.n..•�w�cmn�u�M TO: The Honorable Mayor and City Council The Honorable Chair and Trustees Owasso Public Works Authority FROM: Carly Novozinsky, Finance Director APPROVED BY COUNCIL JUL 11 2023 APPROVED BY TRUSTEES JUL 1 1 2023 SUBJECT: Resolutions — Oklahoma Water Resources Board (OWRB) Promissory Note, Series 2023 DATE: July 7, 2023 BACKGROUND: Throughout the budgeting process for fiscal year 2023 -2024, Council and Trustees were made aware of a gap in funding for Owasso Public Works Authority (OPWA) capital projects. The following projects are included in the OPWA fiscal year 2023 -2024 budget, and lack funding of $9,000,000.00: • Upgrade of the Ranch Creek Interceptor • Upgrade of the Elm Creek Interceptor • Upgrade of the 117th Force Main Engineering for the three projects is ongoing and nearing completion. Construction is scheduled to begin in fiscal year 2023 -2024, but construction contracts have not yet been awarded. Financing will be sought through the Oklahoma Water Resources Board (OWRB) Financial Assistance Program to fully fund these projects. This program will allow the OPWA to take advantage of low interest rates based on OWRB's AAA credit rating. The program is a State funded program with no federal requirements that could lead to project delays. As a public trust of the City, the OPWA cannot incur debt without the approval of the City Council. City Resolution 2023 -15 authorizes the OPWA to issue its Promissory Note, Series 2023. The resolution also ratifies and confirms existing agreements between the City and the OPWA and provides various other requirements of the financing. OPWA Resolution 2023 -02 authorizes the issuance of Promissory Note, Series 2023 up to $9,000,000.00. The resolution also ratifies and confirms existing agreements between the City and the OPWA, provides various other requirements of the financing, and authorizes the execution of all documents related to the transaction. CITY COUNCIL RECOMMENDATION: Staff recommends approval of Resolution 2023 -15, a resolution of the City of Owasso, Oklahoma (the "City ") approving action taken by The Owasso Public Works Authority (the "Authority ") authorizing the issuance, sale and delivery of the Authority's Series 2023 Promissory Note to Oklahoma Water Resources Board; ratifying and confirming a Lease Agreement; authorizing documents pertaining to a year -to -year pledge of certain sales tax revenue; and containing other provisions related thereto. OWRB Loan Page 2 OPWA RECOMMENDATION: Staff recommends approval of Resolution 2023 -02, a Resolution of The Owasso Public Works Authority (the "Borrower ") authorizing a loan from the Oklahoma Water Resources Board in the total aggregate principal amount of not to exceed $9,000,000.00; approving the issuance of a Series 2023 Promissory Note to Oklahoma Water Resources Board in the total aggregate principal amount of not to exceed $9,000,000.00, secured by a pledge of revenues and authorizing its execution; designating a local trustee; approving and authorizing the execution of a Trust Agreement; approving and authorizing the execution of a Loan Agreement; approving and authorizing the execution of a Security Agreement; ratifying and confirming a Lease Agreement; approving and authorizing a Note Purchase Agreement; authorizing documents pertaining to a year -to -year pledge of certain sales fax revenue; approving various covenants; approving and authorizing payment of fees and expenses; approving and authorizing application to the Oklahoma Water Resources Board; approving and authorizing professional services agreements with the Public Finance Law Group, PLLC and Municipal Finance Services, Inc.; and containing other provisions relating thereto. ATTACHMENTS: City Council Resolution 2023 -15 OPWA Resolution 2023 -02 Municipal Finance Services, Inc. contract Public Finance Law Group, PLLC contract