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Home My WebLink About1997.12.16_OPWA AgendaPUBLIC NOTICE OF THE MEETING OF THE OWASSO PUBLIC WORKS AUTHORITY TYPE OF MEETING: Regular DATE: December 16, 1997 TIME: 7:00 p.m. PLACE: Council Chambers, Owasso Community Center Notice and Agenda filed in the office of the City Clerk and posted on the City Hall bulletin board at 4:00 p.m. on Friday, December 12, 1997. Marci outwell, Authority Secretary AGENDA 1. Call to Order 2. Flag Salute 3. Roll Call 4. Consideration and Appropriate Action Relating to a Request for Approval of the Consent Agenda. All matters listed under "Consent" are considered by the Trustees to be routine and will be enacted by one motion. Any Trustee may, however, remove an item from consent by request. A motion to adopt the Consent Agenda is non - debatable. A. Approval of the Minutes of December 2, 1997 Regular Meeting. Attachment #4 -A B. Approval of Claims. Attachment #4 -B Owasso Public Works Authority December 16, 1997 Page 2 5. Consideration and Appropriate Action Relating to Resolution #97 -3, a Resolution Preliminarily Approving the Issuance of the Authority's Utility Revenue Bonds, ' Refunding Series 1997 (The "Bonds ") for the Purpose of Refunding the Authority's Public Improvement Revenue Bonds, Series 1988; Approving the Preliminary Official Statement Pertaining to the Issuance of the Bonds and Deeming said Preliminary Official Statement "Near Final" and Authorizing Distribution of the Same; Designating an Underwriter with Respect to the Sale of the Bonds; and Containing Other Provisions Relating Thereto. ' Mr Allan Brooks Attachment #5 Mr Brooks will present Resolution #97 -3, and the staff will recommend adoption of the resolution which approves and authorizes the distribution of the offering document pertaining to the Bonds, and designates the underwriter to be utilized by the Authority. 6. Consideration and Appropriate Action Relating to the Presentation of an Independent Audit of Financial Transactions for the OPWA Fund for FY 1996 -97, and a Request for ' the Trustees to Receive the Audit Report. Mr Joe Carlson Enclosure ' Mr Carlson will present the 1996 -97 annual audit to the Trustees, and the staff will recommend the Authority "receive the audit for review, information, and filing. ' 7. Report from OPWA Manager I Owasso Public Works Authority December 16, 1997 Page 3 8. Report from OPWA Attorney 9. Unfinished Business 10. New Business 11. Adjournment 1:1 OWASSO PUBLIC WORKS AUTHORITY MINUTES OF REGULAR MEETING Tuesday, December 2, 1997 The Owasso Public Works Authority met in regular session on Tuesday, December 2, 1997 in the Council Chambers at the Owasso Community Center per the Notice of Public Meeting and Agenda posted on the City Hall bulletin board at 4:00 p.m. on Friday, November 26, 1997, and Addendum to Agenda posted on the City Hall bulletin board at 1:00 p.m. on Monday, December 1, 1997. ITEM 1: CALL TO ORDER Chairman Barnhouse called the meeting to order at 7:15 p.m. ITEM 2: FLAG SALUTE The flag salute was given during the City Council meeting preceding this meeting. ITEM 3: ROLL CALL PRESENT ABSENT Mary Lou Barnhouse, Chair Mark Wilken, Trustee Tracy Standridge, Vice Chair Michael Helm, Trustee Denise Bode, Trustee STAFF Rodney J Ray, City Manager Ronald D Cates, Authority Attorney Marcia Boutwell, Authority Secretary ITEM 4: CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR APPROVAL OF THE CONSENT AGENDA. A. Approval of the Minutes of November 18, 1997 Regular Meeting. B. Approval of Claims Dr Bode moved, seconded by Dr Standridge, to approve the consent agenda. The consent agenda included minutes of the November 18, 1997 meeting, by reference made a part hereto. Item B on the consent agenda included the following claims: (1) OPWA Fund $13,678.82; (2) OPWA Capital Improvement Fund $172,497.11; (3) OPWA Sales Tax Fund $57,076.25; (4) Interfund Transfers $37,447.83; (5) Payroll $27,009.51. AYE: Bode, Standridge, Helm, Barnhouse NAY: None Motion carried 4 -0. Owasso Public Works Authority December 2, 1997 ITEM 5: CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST TO ACKNOWLEDGE, APPROVE, RATIFY AND CONSENT TO THE DEEDS OF DEDICATION BY THE CITY OF OWASSO, OKLAHOMA, OF PORTIONS OF THE BAILEY RANCH GOLF CLUB TO PROVIDE FOR STREETS AND UTILITIES OVER PORTIONS OF THE GOLF COURSE. Mr Cates said that because the Owasso Public Works Authority is the Lessee of the golf course pursuant to a Lease Agreement between the City of Owasso, Oklahoma and the Owasso Public Works Authority, the OPWA must approve the action taken by the City Council to dedicate land to the public for public access and utility connections over portions of the Bailey Ranch Golf Club. Dr Standridge moved, seconded by Dr Bode, to approve and ratify the two deeds of dedication approved by the City Council allowing for infrastructure improvements of a portion of the golf course. AYE: Standridge, Bode, Helm, Barnhouse NAY: None Motion carried 4 -0. ITEM 6: REPORT FROM OPWA MANAGER No report. ITEM 7: REPORT FROM OPWA ATTORNEY No report. ITEM 8: UNFINISHED BUSINESS None. ITEM 9: NEW BUSINESS None. ITEM 10: ADJOURNMENT Dr Standridge moved, seconded by Mr Helm to adjourn. AYE: Standridge, Helm, Bode, Barnhouse NAY: None 2 Owasso Public Works Authority Motion carried 4 -0, and the meeting was adjourned at 7:18 p.m. Marcia Boutwell, Authority Secretary December 2, 1997 Mary Lou Barnhouse, Chairperson CITY OF OWASSO OWASSO PUBLIC: WORKS AUTHORITY 12;12;97 7:17:27 A/P CLAIMS REPORT APAPVR PAGE: PO # VENDOR. DESCRIPTION AMOUNT MEMBER SERVICE LIFE PRE -TAX ADMIN FEE 980036 RONALD D CATES 981388 TREASURER PETTY CASH REIMS PETTY CASH LEGAL SERVICES 981411 OPTICAL WAREHOUSE REFUND OVERPAYMENT 980221 981412 GREG OR PAT SIMMONS REFUND OVERPAYMENT WESTERN BUSINESS PRODUCTS 981413 SALLY'S BEAUTY CO #2039 REFUND OVERPAYMENT 981376 DEPARTMENT TOTAL OFFICE SUPPLIES OPWA ADMINISTRATION 980016 MEMBER SERVICE LIFE PRE -TAX ADMIN FEE 980036 RONALD D CATES RETAINER 90036 RONALD D CATES LEGAL SERVICES 980221 AT&T WIRELESS SERVICES PHONE USE -CARR 980221 AT &T WTPELESS SERVICES PHONE USE-ROBERTS 980'_75 WESTERN BUSINESS PRODUCTS COPIER, MAINTENANCE 980949 KIMBALL ACE HARDWARE MAINT SUPPLIES 981376 SUBURBAN OFFICE SUPPLY OFFICE SUPPLIES 981376 SUBURBAN OFFICE SUPPLY OFFICE SUPPLIES 981388 TREASURER PET':'Y CASH OFFICE SUPPLIES 981427 MCI TELECOMMUNICATION, 11/97 USE 981428 PSO 11.'9'1 USE DEPARTMENT TOTAL = DEPARTMENT TOTAL = WATER UTILITY BILL POSTAGE METER READER METER READER BILLS /NOTICES COLLECTIONS -11/97 METER READER METER. READER METER READER METER READER. METER READER METER. READER METER READER METER READER 4.82 86.77 06.92 89.76 208.27 50.00 700.00 500.00 '15.36 17.50 106.36 12.27 70.77 19.20 62.06 30.12 90.86 1,734.50 1,500.00 33.60 203.85 1,318.80 25.00 364.95 175.20 252.80 564.30 022.75 348.45 144.45 321.90 5,476.05 UTILITY BILLING ------------------------------ 980095 US POSTMASTER 981090 RANDY ALEXANDER 981091 GARY MOSER 981140 METRO GRAPHIC SYSTEMS 981209 CSC CREDIT SERVICES, INC 981210 BRAD SPARKMAN 981211 JOHNNY ROGERS 981212 TYRONE DINKINS 981213 OSCAR MCLAURIN 981214 MARK MEYER 981354 TYRONE DINKINS 981355 981356 BRAD SPARYMAN OSCAR MCLAURIN DEPARTMENT TOTAL = = = =, ,WATER UTILITY BILL POSTAGE METER READER METER READER BILLS /NOTICES COLLECTIONS -11/97 METER READER METER. READER METER READER METER READER. METER READER METER. READER METER READER METER READER 4.82 86.77 06.92 89.76 208.27 50.00 700.00 500.00 '15.36 17.50 106.36 12.27 70.77 19.20 62.06 30.12 90.86 1,734.50 1,500.00 33.60 203.85 1,318.80 25.00 364.95 175.20 252.80 564.30 022.75 348.45 144.45 321.90 5,476.05 CITY OF OWASSO OWASSO PUBLIC WORKS AUTHORITY 12/12/97 7:17:27 A/P CLAIMS REPORT APAPVR. PAGE: 10 PO # ---- - - - - -- VENDOR ------------------- - - - - -- DESCRIPTION ------------------- - - - - -- ------- AMOUNT - - - - -- 98043 WATER, PRODUCTS INC WATER METERS 3/18/97 1,586.60 980656 YALE UNIFORM RENTAL UNIFORM CLEAN /RENT 94.40 980766 WATER PRODUCTS INC REPAIR SUPPLIES 100.82 980766 WATER PRODUCTS INC REPAIR SUPPLIES 203.52 980994 WATER PRODUCTS INC REPAIR SUPPLIES 349.62 981106 KIMBALL ACE HARDWARE MAINT/REPAIR SUPPLIES 55.621 981230 CITY OF TULSA PURCHASED WATER 10/97 97,941.87 981303 GO SYSTEMS FUEL 10/97 159.57 981315 FREEDOM PERSONNEL INC TEMPORARY PERSONNEL 260.88 981375 EQUIPMENT ONE RENTAL & SA WINTER OVERALLS 109.00 981388 TREASURER PETTY CASH CERTIFICATION- C.R,OBERTS 80.00 981390 CITY GARAGE REPAIRS 11/97 172.29 981427 MCI TELECOMMUNICATIONS 1107 USE .18 981428 PSO 11/97 USE 302.07 DEPARTMENT TOTAL = = = =) 101,416.44 WASTEWATER TREATMENT PLANT ------------------------ - - - - -- 980656 YALE UNIFORM RENTAL UNIFORM CLEAN /RENT 101.60 980764 ADVANCED CHEMICAL CHLORINE 342.00 981106 KIMBALL ACE HARDWARE MAINT /REPAIR SUPPLIES 85.51 981163 SAND SPRINGS SAND & GRAVE SAND FOR DRYING BED 303.44 981303 GO SYSTEMS FUEL 10/97 31.55 981390 CITY GARAGE REPAIRS 11/97 -21.94 981427 MCI TELECOMMUNICATIONS 11/97 USE 12.34 98148 PSO 11/9? USE 5,016.52 DEPARTMENT TOTAL = = = =) 5,871.02 WASTEWATER. COLLECTION ------------------------ - - - - -- 980656 YALE UNIFORM RENTAL UNIFORM CLEAN/RENT 41.60 981106 KIMBALL ACE HARDWARE MAINT /REPAIR SUPPLIES 210.89 981194 CROW BURLINGAME REPAIR PARTS 83.59 981303 GO SYSTEMS FUEL 10/97 125.44 981368 EQUIPMENT ONE RENTAL & SA RENTAL OF TRACKHOE 313.50 981368 EQUIPMENT ONE RENTAL & SA PUMP RENTAL 41.80 981388 TREASURER PETTY CASH CERTIFICATION- MCKNIGHT 40.00 981390 CITY GARAGE REPAIRS 11/97 20.17 981401 KIMBALL ACE HARDWARE REPAIR SUPPLIES 5.75 981428 PSO 11/97 USE 282.95 DEPARTMENT TOTAL = = = =) 1,265.69 REFUSE COLLECTIONS ------------------------ - - - - -- CITY OF OWASSO OWASSO PUBLIC WORKS AUTHORITY 12/12/97 7:17:7 A/P CLAIMS REPORT APAPVR PAGE: PO # VENDOR DESCRIPTION AMOUNT ---- - - - - -- ------------------- - - - - -- ------------------- - - - - -- ------- - - - - -- FUND TOTAL =___) 1211447.88 980656 YALE UNIFORM RENTAL UNIFORM CLEAN /RENT 33.20 980782 EQUIPMENT ONE RENTAL & SA SAFETY BOOTS - BURTON 119.00 981194 CROW BURLINGAME REPAIR PARTS 302.80 981303 GO SYSTEMS FUEL 10/97 526.29 ' 981303 GO SYSTEMS FUEL 10/97 79.92 981368 EQUIPMENT ONE RENTAL & SA WINTER COVERALLS 140.03 981390 CITY GARAGE REPAIRS 11/97 353.53 ' 981390 CITY GARAGE REPAIRS 11/97 1,94 ----- 945 DEPARTMENT TOTAL =___; 37554.27 RECYCLE CENTER ' ------------------------------ 980656 YALE UNIFORM RENTAL UNIFORM CLEAN /RENT 13.40 981101 WASTE MANAGEMENT OF OKLA RECYCLE- REFUSE 1,6:'7.08 981101 WASTE MANAGEMENT OF OKLA RECYCLE -GLASS 120.00 ' 981428 PSO 11/97 USE 106.16 DEPARTMENT TOTAL 1,921.64 1 FUND TOTAL =___) 1211447.88 I I 11 OWASSO PUBLIC WORKS AUTHORITY PAYROLL PAYMENT REPORT PAY PERIOD ENDING DATE 12/06/97 ' DEPARTMENT OVERTIME TOTAL EXPENSES EXPENSES OPWA Ad mirtistraton 0.00 $5,208;56 Utilitv Billincy 0.00 1,843.77 Wastewater 540.15 7.834.51 Refuse 46.32 4225.21 Recycle Center 1,599! 13 FUND TOTL $27,729.72 APPROVED: 12/16/97 Chairman Trustee Trustee MEMORANDUM TO: THE HONORABLE CHAIR & TRUSTEES OWASSO PUBLIC WORKS AUTHORITY FROM: RODNEY J RAY CITY MANAGER SUBJECT: REFUNDING OF SERIES 1988 OUTSTANDING BONDS OPWA RESOLUTION #97 -3 DATE: December 12, 1997 BACKGROUND: A review of the 1988 Bond Issue and the existing debt service on those bonds, has indicated that it is in the best interest of the city to refinance the outstanding debt created by that series of bonds. That decision was reached after an extensive review of the debt by Keith McDonald and Allan Brooks (the city's financial advisor and bond counsel) and Ms Bishop; and, two City Council work sessions that included discussion of this matter. The result of such a refinancing, using an option that is agreeable to all parties is an approximate savings of $391,000. That is a substantial savings to the taxpayer and will result in additional capital projects. Resolution #97 -3 (attached) is a resolution that allows the city's representatives to initiate the refunding by declaring the official statement "near final ", thus giving the underwriter the authority to begin preliminary placement of the bonds. RECOMMENDATION: The staff recommends Trustee approval of OPWA Resolution #97 -3. NOTE: There are two "blanks" in the attached resolution. Those pieces of information will be available prior to the City Council meeting, but until negotiations with the underwriter are complete, the information cannot be added. If you have questions, please call Ms Bishop or me ATTACHMENTS: 1. Resolution #97 -3 2. Memorandum dated December 11, 1997 RESOLUTION NO. A RESOLUTION PRELIMINARILY APPROVING THE ISSUANCE OF THE AUTHORITY'S REVENUE REFUNDING BONDS, SERIES 1997 (THE ' "BONDS ") FOR THE PURPOSE OF REFUNDING THE AUTHORITY'S PUBLIC IMPROVEMENT REVENUE BONDS, SERIES 1988; APPROVING THE PRELIMINARY OFFICIAL STATEMENT PERTAINING TO THE ' ISSUANCE OF THE BONDS AND DEEMING SAID PRELIMINARY OFFICIAL STATEMENT "NEAR FINAL" AND AUTHORIZING DISTRIBUTION OF THE SAME; DESIGNATING AN UNDERWRITER WITH RESPECT TO THE SALE OF THE BONDS; AND CONTAINING OTHER ' PROVISIONS RELATING THERETO. WHEREAS, The Owasso Public Works Authority (the "Authority ") ' has determined to advance refund the Authority's Public Improvement Revenue Bonds, Series 1988 (the "Refunding "); and WHEREAS, the Authority has determined to finance a portion of the cost of the Refunding through the issuance of the Authority's Revenue Refunding Bonds, Series 1997, in the approximate principal amount of $ (the "Bonds "). NOW, THEREFORE, BE IT RESOLVED BY THE TRUSTEES OF THE OWASSO PUBLIC WORKS AUTHORITY: SECTION 1. PRELIMINARY AUTHORIZATION REGARDING ISSUANCE OF BONDS. The Authority preliminarily authorizes the issuance of the Bonds in the approximate principal amount and for the purposes set forth above. SECTION 2. PRELIMINARY OFFICIAL STATEMENT. The Preliminary Official Statement dated December 16, 1997 (the "Preliminary Official Statement ") outlining the terms, conditions and security for the Bonds, is hereby adopted and approved and the Chairperson or Vice Chairperson of the Authority is authorized to approve any corrections, additions or deletions thereto for and on behalf of the Authority and is further authorized and directed to execute and deliver same for and on behalf of the Authority; provided further, that the information contained in said Preliminary Official Statement with respect to the Authority is correct in all material respects and such information does not contain any untrue statements of a material fact and does not omit to state a material fact necessary to make the statements made in such Preliminary Official Statement, in light of the circumstances under which they were made, not misleading. The Authority hereby deems the Preliminary Official Statement "near final" in accordance with the requirements of Rule 15c2 -12 of the Securities and Exchange Commission promulgated pursuant to the Securities Exchange Act of 1934. The Authority designates to act as the underwriter of the referenced Bonds (the "Underwriter "). The Authority authorizes the Underwriter to distribute the Preliminary Official Statement in connection with the sale of the Bonds. I I APPROVED AND ADOPTED this 16th day of December, 1997, by The Owasso Public Works Authority. (SEAL) ATTEST: Secretary APPROVED AS TO FORM: Ronald D. Cates, Trust Attorney THE OWASSO PUBLIC WORKS AUTHORITY person MEMORANDUM TO: THE HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO FROM: RODNEY J RAY, CITY MANAGER SHERRY BISHOP, FINANCE DIRECTOR SUBJECT: INFORMATION RELATING TO 1997 REFUNDING BOND DATE: December 11, 1997 BACKGROUND: Pursuant to your request, the City's Financial Advisor (Keith McDonald of Leo Oppenheim & Co) and Bond Counsel (Allan Brooks of the Fagin Brown Law Firm) have supplied information relating the proposed refunding bond issue. The information has been updated with the most current estimates for interest rates and costs. One result of these changes is to reduce the total amount of bonds to be issued by $75,000. These documents anticipate a total of $4,445,000 in bonds, with an average interest rate of 4.65 %. The information includes models for the three financing options discussed during last week's work session. Those options focused on how a savings would be taken by the City and what the comparative savings of each option is. The Financial Advisor and his staff have created an additional document on each option that uses a 10% "cap" on the cost of money to compare the savings for all options in three methods. The three financing options are: 1. Front Loaded Savings. This option reduces the payments for the first four years. Cash savings is realized up front. 2. Level Savings. This option reduces all payments over the term of the debt. Cash savings is realized evenly over the ten years. 3. Back Loaded Savings. This option maintains the payments at the current level and pays off the debt as soon as possible. Cash savings is realized in years eight through ten. The three methods for comparing the value of the savings are: Cash Flow. This method uses the total cash payments over the term of the debt. 1997 REFUNDING BOND DECEMBER 11, 1997 PAGE 2 Arbitrage Rate of Present Value. This method uses the average interest rate of the debt as the rate to calculate the present value of the savings. 10% Rate of Present Value. This method uses 10% as the cost of money to calculate the present value of the savings. Listed below are the estimated net savings to the city for each financing option and each assumption of the cost of money. Arbitrage Rate 10% Rate Cash Flow Present Value Present Value I have discussed/negotiated with the three firms (O enheim - Financing_ Option: Savings Savings Savings 1. Front Loaded $520,990 $387,226 $262,892 2. Level 721,889 391,293 131,765 3. Back Loaded 1,047,639 425,348 - 33,935 1997 Issue 1998 Issue Discounted Rate /Both The back loaded option provides the greatest cash flow savings but, when analyzed with a $45,000 potential 10 % cost of money, could actually be a loss in value. The front loaded option provides the greatest savings potential should the cost of money be at the 10% level, but the least cash flow savings. The level financing option provides a savings under all three valuation methods $110,000 and is nearly equal to option #1 using the arbitrage rate of present value. The level savings $131,000 207,000 financing option provides a good savings on the refunding and offers the least risk over the long term. FEES: I have discussed/negotiated with the three firms (O enheim - Fa in - Cates) relative to the fees they would propose for the two projects. Based on those discussions, it is my opinion that the firms are willing to accept the discounted rates shown in the right column below: 1997 Issue 1998 Issue Discounted Rate /Both Cates $25,000 $30,000 $45,000 Leo Oppenheim $56,000 $112,000 $145,000 Fagin Brown $50,000 $65,000 $110,000 $131,000 207,000 TOTAL $338,000 $300,000 1997 REFUNDING BOND DECEMBER 11, 1997 PAGE 3 NOTE: My goal was to acquire the following fees: Cates $45,000 Oppenheim $150,000 Fagin $90,000 $285,000 Total Target NOTE: The negotiations resulted in the following fees: Cates Oppenheim Fagin CONEVIENTS: $45,000 $145,000 $110,000 $300,000 Total Negotiated * Based on the original cost estimates, the negotiations have resulted in a net savings of $38,000 in local counsel fees, financial advisor fees and bond counsel fees. * The target savings was set at $53,000 for those three fees (above). * Keith McDonald has completed preliminary negotiations with five underwriters and has initially selected Rauscher, etal as the firm with the lowest cost /discount. He also was successful in including the underwriters counsel cost as a part of the underwriters fee, a net savings of $5000. * Additionally, Mr McDonald has renegotiated the underwriters fees /discounts down from 1.25 % of total to 1 % of the bond, with their fee including the underwriters counsel, a savings of $12,050. * Fagin -Brown firm (bond counsel) lowered their fee only $5000, but strongly commented that their initial quote of $50,000 + $65,000 was already discounted from a normal combined fee of $140,000 (based on one percent of the bond). Allan Brooks felt that he had quoted a fair fee for the work involved and believed the $5000 discount represented a good faith effort. * Total amount savings due to negotiations and discussions are approximately $55,000 less than the original estimate of fees. 4 1997 REFUNDING BOND DECEMBER 11, 1997 PAGE 4 ATTACHMENTS: 1. Sources & Uses of Funds 2. Cost of Issuance Information 3. Debt Service Savings Reports & Net Present Value Reports for Each of the Three Options C: \WPDATA \PROJECTS \BOND1997.REF MEMORANDUM TO: HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO FROM: SHERRY BISHOP 9 FINANCE DIRECTOR ISUBJECT: AUDIT REPORT FOR FISCAL 1996 -97 IDATE: December 12, 1997 BACKGROUND: An independent audit, performed by a certified accountant, is required by City Charter and state statutes. The report of the independent auditor must be filed with the governing body and with the office of the State Auditor and Inspector. On May 19, 1995, the City Council and OPWA Trustees selected the firm of Carlson & Cottrell CPA's to perform an audit for the city and its trust authorities. This the City's third year with Carlson & Cottrell as auditors. All audit work is complete and the financial statements are enclosed. Joe Carlson will represent the accounting firm and will present the audit to the City Council at the meeting Tuesday night. If the Council has any questions or would like additional information after that presentation, I would be glad to address those requests. RECOMMENDATION: Staff recommends that the City Council receive the audit report and direct it to be filed as required by statute. ENCLOSURE: Report on Audit of Financial Statements Year Ended June 30, 1997