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Home My WebLink About1996.06.18_OPWA AgendaPUBLIC NOTICE OF THE MEETING OF THE OWASSO PUBLIC WORKS AUTHORITY TYPE OF MEETING: Regular DATE: June 18, 1996 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, June 14, 1996. AGENDA 1. Call to Order 2. Roll Call 3. Request Approval of the Minutes of June 4, 1996 Regular Meeting. Attachment #3 4. Request Approval of Claims Attachment #4 Owasso Public Works Authority June 18, 1996 Page 2 5. Consideration and Appropriate Action Relating to a Request for Trustee Adoption of OPWA Resolution #96 -01, a Resolution Adopting a FY 1996 -97 OPWA Budget for all Funds Administered by the Owasso Public Works Authority. Mr Ray Ms Bishop Attachment #5 Staff will recommend Trustee adoption of OPWA Resolution #96 -01 and that the staff be directed to make the appropriate filings of such resolution and budget documents. 6. Consideration and Appropriate Action Relating to a Request for Trustee Adoption of OPWA Resolution #96 -02, a Resolution Determining That Ownership and Operation of a Public Golf Course is an Authorized and Proper Function of the City of Owasso, Accepting the Resignation of Leo Oppenheim & Co Inc as Financial Consultant to the Authority, Selecting an Underwriter for an Anticipated Series 1996 OPWA Revenue Bonds, Approving the Final Official Statement of Said Bonds, and Authorizing the Distribution of Said Official Statement by Approved Agents of the Owasso Public Works Authority. Mr McDonald Attachment #6 The Financial Advisor and City Manager will recommend Trustee approval of OPWA Resolution #96 -02 determining that ownership of a public golf course is. an authorized and proper function of the City of Owasso, accepting the resignation of Leo Oppenheim & Co Inc as Financial Consultant to the Authority, selecting the firm of Leo Oppenheim & Co Inc, Oklahoma City, Oklahoma to act as underwriters for revenue bond issued to finance the acquisition of a golf course, approving the official statement, and authorizing the underwriter to distribute the official statement. Owasso Public Works Authority June 18, 1996 Page 3 7. Consideration and Appropriate Action Relating to a Request to Solicit Bids for Contracting Residential Refuse Services to a Private Vendor. Mr Carr Attachment #7 Staff will present a plan for privatization of residential refuse service and request authorization to solicit bids for such privatization. 8. Report from OPWA Manager 9. Report from OPWA Attorney 10. Unfinished Business 11. New Business 12. Adjournment OWASSO PUBLIC WORKS AUTHORITY MINUTES OF REGULAR MEETING Tuesday, June 4, 1996 The Owasso Public Works Authority met in regular session on Tuesday, June 4, 1996 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, May 31, 1996. ITEM 1: CALL TO ORDER Vice Chairman Ramey called the meeting to order at 8:00 p.m. ITEM 2: INVOCATION The invocation was given during the City Council meeting preceding this meeting. ITEM 3: FLAG SALUTE The flag salute was held during the City Council meeting. ITEM 4: ROLL CALL PRESENT Joe Ramey, Vice Chairperson Mary Lou Barnhouse, Trustee Michael Helm, Trustee Tracy Standridge, Trustee STAFF Rodney J Ray, City Manager Ronald D Cates, Authority Attorney Marcia Boutwell, Authority Secretary A quorum was declared present. ABSENT Danny Ewing, Chairperson ITEM 5: REQUEST APPROVAL OF THE MINUTES OF MAY 21 1996 REGULAR MEETING. Mr Helm moved to approve the minutes as written, by reference hereto; seconded by Mr Standridge. AYE: Helm, Standridge, Barnhouse, Ramey NAY: None Motion carried 4 -0. Owasso Public Works Authority June 4, 1996 ITEM 6: REQUEST APPROVAL OF CLAIMS Ms Barnhouse moved, seconded by Mr Helm, to approve the following claims as submitted: (1) OPWA Fund $78, 910.92; (2) OPWA Capital Improvement Fund $23,735.94; (3) Interfund Transfers $34,233.17. AYE: Barnhouse, Helm, Standridge, Ramey NAY: None Motion carried 4 -0. ITEM 7: REPORT FROM OPWA MANAGER No report. ITEM 8: REPORT FROM OPWA ATTORNEY No report. ITEM 9: UNFINISHED BUSINESS Vice Chairman Ramey asked about the progress of the street and park department buildings. Mr Carr responded that the notice to proceed has been issued and preliminary work and fabrication is being done. ITEM 10: NEW BUSINESS Mr Helm announced that Pepsi is erecting a new scoreboard at the Sports Park baseball field. ITEM 11: ADJOURNMENT Mr Ramey moved, seconded by Mr Standridge, to adjourn. AYE: Ramey, Standridge, Barnhouse, Helm NAY: None Motion carried 4 -0 and the meeting was adjourned at 8:02 p.m. Marcia Boutwell, Authority Secretary Danny Ewing, Chairperson rTTv OF OWARRn nWASRO PTIRT.TC WnRKS ATTTTinRTTY UPA.RTMENT TnTAT, = = = =) 8137AR9.94 WASTEWATER TREATMENT PT.ANT ------------------------ - - - - -- 961768 rTTRTTN MATHF.SON SCTF.NTTFT T.AR STTPPT.TF.R 9q9. AS R 6/14/96 R:nR :77 A/P CT.ATMS REPORT APAPVR PACE: Pn # VENDOR T)F.RrRTPTTON AMnTINT �r ---- - - - - -- ------------------- - - - - -- ------------------- - - - - -- ------- - - - - -- AT)MTNTSTRATTnN 'OPWA ------------------------------ 960004 RnNAT.T) T) rATFfi RF.TATNFR 700,00 ' 96n127 WESTERN RTJSTNFSS PRnnur,TR rnPTF.R MATNT AA.47 9AO129 AT &T WTRFT.FSS SFRVTrF.S PT3nNF TiRF -C.ARR 77,69 960413 ST FRANCTS HnRPTTAT, -RAP F,MP ASSTSTANCF PROGRAM 68.00 962276 CRC CRPDTT RFRVTCFR; TNC 5/96 COJ.T.FCTTnNS 25.00 ' 9A ?340 W A rHARN(;TRnM rn MATT, RAGS 1.fi5.5n 96 ?395 CPS RITSTNFSS, TNC. ANNUAL MATNTF.NANCF. 1 ,1 RR. nn 9674 ?7 SUBURBAN nFFTCF SUPPi.Y nVVTrF STIPPT,TF,S 42.11 ' 962462 AJ.TFRNATTVF. ENVTRnNMFNTS i1PPT T)TR TRATNTNG ? 25,00 962464 TRF,ASiTRF,R PETTY CASH RF,TMR PETTY CASH 12.x±5 96 ?480 PAT.ACF nFFT('F. RTTPPT.Y nPPTrF RTiPPT.TF.S ?9,70 ' DEPARTMENT TOTAL ____) 2,550.12 WATER ------------------------------ 9A19AO CPT ATRI.F.S(; JACKHAMMERS 562.41 �. 9A22R5 DERRY RA.VF,RT METER RF,AT)TNG 61.20 9A22q,A CiTY OF TULSA WATER PTiRCHARF. 5/96 79;477,10 96 ?753 rn SYSTEMS FTTF,T, 5/96 177.97 96 ? ?54 CTTY SAR.AGP RF.PATRR 5/95 87.4? 9A ? 255 ESTES TNr. WPFT) rnNTRnT, rRPMTrAT,S 81..7A 96 2309 YALE T1NTFnRM RENTAL TTNTFnRM CT.F.AN /RPNT 118,00 9A7R15 RATNRnW rnNCRPTF rn T,TNF RFPATR 59.50 96 9317 AP.A('-OXT.AHnMA,, TNC. T.TNF RFPATR 387,73 9A7318 ANrHnR RTONF Cn T,TNF RFPATR 919.19 96 ?335 JOHNNY ROGERS METER RPAT)TNG 173,40 962346 DEPT OF FNVTRnNMFNTAT, 01JA nPFR rF,RTTFTCATF, RENEWALS 330.00 967368 WATER PROT)NTCTS TNr METER SET MATFRTAT.S 796. ?9 90179 nSrAR MrT,ATJRTN METER RF.AT)TNG 208,n5 962S80 TYRONE T)TNKTNR MPTF.R RFAT)TNG 313, ?n 962381 BRAT) SPARKMAN METER RFAnTNO 153.45 962R93 WATER PRnmTCT(; TNr MPTPR. SET MATRRTAT.S 9RR,R5 94244? WATER PRr)nTJCTS TNr WATER MFTPRR 1.2/5/95 1,539.nn 967445 WATER PROT)TiCTS TNC RFPATR STTPPT.TFR 716,97 942445 WATER PRnT)TTCTS TNC RMA1,T, Tnni,S tn5,n4 96 2446 AMFRTCAN WATER WORKR ANNUAL T)T1PR -rARR RO,nO UPA.RTMENT TnTAT, = = = =) 8137AR9.94 WASTEWATER TREATMENT PT.ANT ------------------------ - - - - -- 961768 rTTRTTN MATHF.SON SCTF.NTTFT T.AR STTPPT.TF.R 9q9. AS R CTTY nF nwASSn OWASSO PTTRT.TC WnRT(S ATTTTinRTTY A/14/96 8;03;77 A/P MA.TMS REPORT APAPVR PAGE„ Pn #T ---- - - - - -- VFNDnR ------------- ------ - - - - -- nF.SrRTPTTnN ------------------- - - -- -- ------- AMn1TNT - - - - -- 961796 ADVANUT) (:14FMT('A1. (HT.nRTNF. 142.00 9A?.753 i7,n SYSTEMS FTTF,T, 5/96 226.80 96??54 ('TTY GARACF RFPATRS 5/96 16.2n 962755 ESTES TNC. WEFT) CONTRnT, rURMTr.AT,(3 81.76 962299 MTT.T. CREEK T.TTMRFR & STTPPi. RFPATR STTPPT.TFS 9.40 962309 YAT,E TTNTFnRM RENTAL TTNTFnRM CT,F,AN /RENT 112.00 962346 T)F.PT OF FNVTRnNMFNTAT. RTTA nPF.R ('FRTTFTCATF RENEWALS 360,nn 962IA6 WASTE MANAGEMENT OF nHT,A TTPPTNn FEES 5/96 3 24.24 962570 F.ARMFR'S cOnP ASSOC: DTFSFT. FTTFT. -T.TFT STATMNS 236.E+6 967445 WATER PRODUCTS TNr RFPATR SUPPT,TF,S 1.9.16 9A?451 T)FPT OF FNVTRnNMFNTAT- OITA TFMP (:FRTTFTCATF. 40.00 DEPARTMENT TOTAL = = = =) 2,327.54 REFUSE COLI.F.(:TTTINS ------------------------ - - - - -- 962148 WMI JAMS REFUSE FATTTPMF.NT PnT.YC:ART RFPATR PARTS 4RR.39 96 ? ?5R rn SYSTEMS FTTE,T, 5/96 505.79 962?54 OTTY GARAGE RFPATRS 5/96 10.96 967254 rTTY GARAGE RFPATRS 5/96 179.74 962 ?77 RFT 5/96 RFFTTSF. 14 ; 281.21 967309 YAT,F, TTNTFnRM RENTAL TTNTFnRM f;T,F,AN /RF,NT 52.00 962327 MTT.FACF M.ASTFRS TTRFS /RF.PATRS 5n.00 9A 2:366 WASTE, MANAGEMENT OF nHT,A TTPPTNG FEES 5/96 5,7A9.10 962419 M.F.T. HnT1SFHn n rnT.T.ErTTnN 90n.00 DEPARTMENT TnTAT, = = = =) 72,186.71 RPrYCT.F CPNTF.R ------------------------ - - - - -- 962251 GO SYSTEMS FUEL 5/96 122.77 96 2777 RFT 5/9A RFFTTSF, ?,891..70 96?309 YAT.F TTNTFnRM RENTAL TTNTFnRM CT.FAN /RENT 23.40 967366 WASTE MANAGEMENT OF nKT,A TTPPTNG FEES 5/96 668.46 T)RPARTMF,NT TOTAL = = = =) 3,665.88 FUND TnTAT, ____) 1.171419.A9 9 OWASSO PUBLIC WORKS AUTHORITY PAYROLL PAYMENT REPORT kw PAY PERIOD ENDING 05/25/96 r 7 APPROVE 06/04/96 Chairman Trustee 6 Trustee OVERTIME TOTAL DEPARTMENT EXPENSES EXPENSES A ..l a c . # f..... ' $ €,... Water 0.00 4146.63 Refuse 59.8 1 3)489.89 •:.: r:•:s•::•:r:::: e OPWA Capital Improvement 0.00 0.00 APPROVE 06/04/96 Chairman Trustee 6 Trustee OWASSO PUBLIC WORKS AUTHORITY PAYROLL PAYMENT REPORT PAY PERIOD ENDING 06/08/96 OVERTIME TOTAL DEPARTMENT EXPENSES EXPENSES Water ; Refuse 39.87 3,463.66 APPROVE 06/18/96 Chairman Trustee Trustee MEMORANDUM TO: THE HONORABLE CHAIR AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY FROM: RODNEY J RAY CITY MANAGER SUBJECT: REQUEST FOR APPROVAL OF RESOLUTION #96 -01 ADOPTING A FISCAL YEAR 1996 -97 BUDGET DATE: June 13, 1996 BACKGROUND: Pursuant to statutory and Charter provisions, an annual operating budget for the General Fund, OPWA Fund and other funds has been developed and transmitted for your review. Legal notice of a public hearing was given in the Owasso Reporter on June 4th, and such hearing was conducted on June 11th. The public hearing provided opportunity for citizen comment and questions relating to the proposed budget. Copies of the budget were distributed to 65 citizens and have been available for public review at the Owasso Library and City Hall. State statute requires adoption of the annual budget by resolution. OPWA Resolution #96 -01 provides for the adoption of the fiscal year budget for the Owasso Public Works Authority. RECOMMENDATION: Staff recommends Trustee approval of Resolution #96 -01 adopting a FY 1996 -97 budget for the Owasso Public Works Authority. ATTACHMENTS: Resolution #96 -01 OWASSO PUBLIC WORKS AUTHORITY OPWA RESOLUTION NO 96 -01 A RESOLUTION PROVIDING FOR THE ADOPTION OF AN ANNUAL OPERATING BUDGET FOR THE OWASSO PUBLIC WORKS AUTHORITY; CLASSIFYING REVENUES; ESTABLISHING LEVELS OF EXPENDITURES BY CLASSIFICATION AS PROVIDED BY STATUTE; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS: It is the intent of the Owasso Public Works Authority to adopt an operating budget for fiscal year 1996 -97; and WHEREAS: The adoption of such budget is vital to the continuation of services to the citizens of Owasso; and WHEREAS: Public access to the adopted budget is desired; and WHEREAS: Certain publication and filing requirements are mandated by State Statutes. NOW THEREFORE, BE IT RESOLVED BY THE TRUSTEES OF THE OWASSO PUBLIC WORKS AUTHORITY: THAT: The revenues, expenditures and transfers as shown be adopted: Revenue and Transfers In Personal Services Expenditures Material & Supplies Expenditures Other Services & Charges Expenditu Capital Outlay Expenditures Debt Service Expenditures Transfers Out $10,084,200 $746,057 $1,325,570 $538,525 $3,359,300 $995,978 $3,659,102 THAT: The effective date of this Resolution shall be July 1, 1996. APPROVED AND ADOPTED this 18th day of June, 1996 by the Trustees of the Owasso Public Works Authority. Danny Ewing, Chairperson ATTEST: Marcia Boutwell, Trust Secretary APPROVED AS TO FORM: Ronald D Cates, Trust Attorney 6 MEMORANDUM TO: THE HONORABLE CHAIR AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY FROM: RODNEY J RAY CITY MANAGER SUBJECT: REQUEST FOR APPROVAL OF OPWA RESOLUTION #96 -02 RELATING TO FINANCING THE ACQUISITION OF A GOLF COURSE DATE: June 14, 1996 BACKGROUND: Since October 1995, the City has been involved in a review of the operation, management and financing of the Bailey Golf Ranch. During that time there have been extended discussions, meetings and work sessions, all focusing on developing and implementing a strategy and public • policy relating to the level of involvement the City will have with respect to golf operations. As that strategy has developed, several actions have taken place. To date the following actions have been implemented: 1. Accounting and bookkeeping duties have been assumed by City staff (January). 2. Cash flow /accounts payable responsibilities assumed by City staff (January). 3. Reduction in operating costs through decreased number of employees. 4. Reduction in administrative costs due to termination of management company contract. 5. Assumption of golf shop operations as an additional revenue source. 6. Appointment of City Council to the Golf Authority as Trustees. 7. Placement of golf course in City's organizational structure. 8. Appointment of City Manager as OPGA Executive Director. 9. Appointment of a Citizens Golf Advisory Committee. 10. Complete review of financial needs of the golf operations and evaluation of those operations as an investment analysis. 11. Employment of Mr Lehr as the City's Director of Golf. The strategy that was outlined on March 25, 1996 consisted of 1) placing Council members on the OPGA as Trustees, 2) reducing the debt service requirements, 3) acquiring the golf course through the issuance of revenue bonds issued by the Public Works Authority, 4) paying off the existing debt, 5) managing the course through the City organizational structure. As the items above have been implemented, that strategy has been followed, however, the next steps involve OPWA RESOLUTION #96 -02 JUNE 14, 1996 PAGE 2 the critical financial elements of the strategy. We have reached the point that requires action to issue debt at a rate and structured in a manner that will allow the course to operate within its ability to generate revenue. In order to complete the financing strategy, there are actions that need to be taken at the OPWA meeting on June 18th so that final action can be taken on July 2nd. REOUEST• This request is for consideration of OPWA Resolution 96 -02. The requested resolution accomplishes five actions as follows: 1. Determines that ownership and operation of a golf course is an authorized and proper function of the City of Owasso. 2. Accepts resignation of Leo Oppenheim & Co Inc as Financial Consultant to the OPWA. 3. Selects Leo Oppenheim & Co Inc as Underwriter for anticipated OPWA, Series 1996 Revenue Bonds. 4. Approves a preliminary final official statement. 5. Authorizes distribution of the official statement. The above items are a prelude to the final actions of actually issuing and selling bonds. It should be noted that while nothing is finalized by enacting Resolution #96 -02, its adoption puts into motion the final step of the strategy presented on March 25, 1996 and followed to this point. COMMENTS: 1. A recently as last week, my position has been to select an underwriter separately from the firm that acted as the Authority's Financial Consultant. However, during the process of receiving quotes from underwriters, it has become apparent that a savings of approximately $40,000 can be achieved by also using Leo Oppenheim & Co Inc as the underwriter, as well as the financial consultant. In reviewing the underwriter cost, the lowest quote was for 1.20% (other quotes were 1.25 % & 1.50 %). I then asked Keith McDonald (Leo Oppenheim & Co) to quote a price for the additional charge his firm would require to act as the underwriter. He has quoted a 0.50% additional fee for that service. The resulting savings of 0.70% translates into an approximately $40,000 lower cost of issuance. Due to the savings, it is the staff position that the firm of Leo Oppenheim & Co Inc should be retained to act as underwriter for this issue. Please note that I have consulted the bond counsel and City Attorney regarding this matter, and both agree that the vast majority of Public Trusts who issue revenue bonds utilize the same firm OPWA RESOLUTION #96 -02 JUNE 14, 1996 PAGE 3 as financial consultant and underwriter. Neither lawyer was of the opinion that using the same firm would either increase or decrease any legal exposure of the City or the advisory parties. The bottom line is that using the same firm saves $40,000. I choose to change my mind and save $40,000. 2. Please note that, pursuant to concerns expressed during last Tuesday's work session, Mr McDonald has developed several term options for the financing package that are currently under review. It appears that using a premium sale of the bonds with a term through the year 2017 is the most effective structure. Under that scenario, the net increase in interest is $120,611, but the structure provides a $187,289 reserve to offset unexpected occurrences. Essentially, using this structure will provide a security net of $187,289 at a cost of an extra $120,611 over the term of the bonds. That suggestion by the Council will certainly help to create a better win -win situation and allow Ms Bishop and Mr Lehr more options in their management and cash flow decisions. I have attached three scenarios for your review and anticipated recommending to sheet marked Attachment "C" as the structure for the July 2nd actions to actually issue bonds. ' RECOMMENDATION: ' The staff remains confident in the projections that the golf course will have a positive cash flow and that the strategy in place will result in appropriate, affordable financing, efficient r management and an asset that will increase in value. Therefore, the staff recommends Trustee adoption of OPWA Resolution #96 -02. ATTACIEdENTS: OPWA Resolution #96 -02 2. Letter of resignation as financial advisor from Leo Oppenheim & Co Inc 3. Summary Sheet of attachments 4. Attachment "A" 5. Attachment "B" 6. Attachment "C" 7. Attachment "D" OWASSO PUBLIC WORKS AUTHORITY OPWA RESOLUTION NO 96 -02 A RESOLUTION OF THE TRUSTEES OF THE OWASSO PUBLIC WORKS AUTHORITY DETERMINING THAT THE OWNERSHIP AND OPERATION OF A PUBLIC GOLF COURSE IS AN AUTHORIZED AND PROPER FUNCTION OF THE CITY OF OWASSO; SELECTING AN UNDERWRITER FOR THE AUTHORITY'S UTILITY REVENUE BONDS, SERIES 1996 (THE "BONDS "); APPROVING THE OFFICIAL STATEMENT PERTAINING TO SAID BONDS AND DEEMING SAME TO BE FINAL; AND AUTHORIZING THE DISTRIBUTION OF SAID OFFICIAL STATEMENT IN CONNECTION WITH THE SALE OF SAID BONDS. BE IT RESOLVED BY THE TRUSTEES OF THE OWASSO PUBLIC WORKS AUTHORITY THAT: Section 1: Authorized and Proper Function. The ownership and operation of a public golf course is an authorized and proper function of the City of Owasso, Oklahoma for the health, benefit and welfare of its citizens. Section 2: Underwriter. The Authority hereby accepts the resignation of Leo Oppenheim & Co Inc as financial consultant to the Authority and selects Leo Oppenheim & Co Inc to act as underwriter in connection with the sale of the Authority's Utility Revenue Bonds, Series 1996. Section 3: Official Statement. The Preliminary Official Statement outlining the terms, conditions and security of said Bonds, is hereby deemed final as of its date and is adopted and approved, and the Chairperson or Vice Chairperson is authorized to approve any corrections, additions or deletions thereto for and on behalf of the Authority, and thereupon the Chairperson or Vice Chairperson is authorized and directed to execute and deliver same for an on behalf of the Authority; provided further, that the information contained in said Official Statement 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 Official Statement in light of the circumstances under which they were made, not misleading. The Chairperson or Vice Chairperson is authorized and directed to approve, execute and deliver the final Official Statement for and on behalf of the Authority in conjunction with the issuance of the Bonds. Section 4: Distribution of Official Statement. The Underwriter is hereby authorized to distribute the Official Statement approved in Section 2 hereof in connection with the offer and sale of the Authority's Bonds. APPROVED AND ADOPTED this 18th day of June, 1996 by the Trustees of the Owasso Public Works Authority. ATTEST: Marcia Boutwell, Trust Secretary APPROVED AS TO FORM: Ronald D Cates, Trust Attorney Danny Ewing, Chairperson SUMMARY OF FINANCING SCENARIOS *OPTION TERM "A" 25 year "B" 23 year "C" 21 year * * "D" 20 year INTEREST COST UP -FRONT MONEY 5,273,383 190,739 4,775,106 190,181 4,228,286 187,898 4,107,674 -0- * All options are attached in detailed form. INCREASED INTERM COST 1,165,708 667,431' 120,611 -0- ** "D" is the original proposal and provides only sufficient funds to buy out the golf course. It includes no up -front money for operating reserves. LEOOPPENHEIM &CO., INC. INVESTMENT SECURITIES 101 PARK AVENUE_ SUITE 900 OKLAHOMA CITY. OKLAHOMA 73102 -7202 TEL (405) 235 -7100 June 17, 1996 The City of Owasso, Oklahoma and The Owasso Public Works Authority 207 South Cedar Owasso, OK 74055 FAX 14051 235 -0723 Leo Oppenheim & Co., Inc. ( "Oppenheim ") is currently employed as the Financial Advisor to the City of Owasso, Oklahoma (the "City ") and The Owasso Public Works Authority (the "Authority'). The Authority is in the process of issuing its approximately $5,000,000 Utility Revenue Bonds, Series 1996 (the "Bonds ") through a negotiated sale. Oppenheim desires to resign as Financial Advisor to the City and the Authority with regard to the issuance of the Bonds and be selected as Underwriter to the Authority for such Bonds. The Municipal Securities Rulemaking Board has established rules (Rule G- 23) pursuant to which Oppenheim may resign as Financial Advisor in order to be considered as Underwriter. Pursuant to the requirements of Rule G -23, Oppenheim wishes to accomplish the following: (1) Terminate the financial advisory relationship with the City and the Authority with respect to the Bonds in order to be considered as Underwriter and purchase the Bonds on a negotiated basis; (2) Since Oppenheim has acted as Financial Advisor to the City and the Authority, disclose to the City and the Authority that there may be a conflict of interest in the event that Oppenheim becomes the Underwriter with respect to such Bonds and ask the City and the Authority to acknowledge the receipt of such disclosure; and (3) In the event that Oppenheim is selected as Underwriter, disclose to the City and the Authority that the source of remuneration to Oppenheim with respect to the Bond issue shall be solely from the discount associated with such Bonds, plus reimbursement for any actual out -of- pocket expenses which will be paid from the proceeds of the Bonds, and ask the City and the Authority to acknowledge receipt of this disclosure. The City of Owasso and The Owasso Public Works Authority June 17, 1996 Page 2 We have appreciated the opportunity to be associated with the City and the Authority and look forward to the opportunity to continue to work with you in the future. If you have any questions concerning the information contained herein, please call me. MLH/ab Sincerely, LEO OPPEN E M & CO., INC. Morris L. Hatley President I, The City of Owasso, Oklahoma and The Owasso Public Works Authority hereby acknowledge the above disclosures and authorize Leo Oppenheim & Co., Inc_ to resign as Financial Advisor in order to be considered as Underwriter for the aforementioned bond issue. THE CITY OF OWASSO, OKLAHOMA Mayor ATTEST: (SEAL) City Clerk THE OWASSO PUBLIC WORKS AUTHORITY Chairman ATTEST: (SEAL) Secretary 1n003 06/12/96 16:22 0405 235 0723 LEO OPPENHEiM CO / 10 013 The Owasso Public Improvement Authority Golf Course Purchase Revenue Bonds, Series 1996 asJ/� gY P -1 Y ny�L Service Debt S ce Schedule Debt :ervi.;__ Schedule � � V1 de S 'A l IFO/ 7 3 �'-0J 7A C ns 7" 4 1,14,5-;7,05- a -4r z I Date Principal Coupon Interest Period Total Fiscal Total 1/ 1/97 190,739.31 7/ 1/97 175,168.75 1/ 1/98 175,168.75 7/ 1/98 175,168.75 1/ 1/99 95,000.00 8.500000 175,168.75 7/ 1199 171,131.25 1/ If 0 105,000.00 8.500000 171,131.25 7/ 1/ 0 166,668.75 11 1/ 1 115,000.00 8.500000 166,668.75 7/ 1/ 1 161,781.25 If 1/ 2 125,000.00 8.500000 161,781.25 7/ 11 2 156,468.75 if 1/ 3 135,000.00 8.000000 156,468.75 7/ 1/ 3 151,068.75 1/ 1/ 4 145,000.00 8.000000 151,068.75 7/ 1/ 4 145,268.75 1/ If 5 155,000.00 8.000000 145,268.75 7/ 1/ 5 139,068.75 1/ 1/ 6 170,000.00 8.000000 139,068.75 T/ It 6 132,268.75 1/ 1/ 7 180,000.00 8.000000 132,268.75 7/ 1/ 7 125,068.75 1/ 1/ 8 195,000.00 5.650000 125,068.75 7/ 1/ 8 119,560.00 1/ 1/ 9 210,000.00 5.750000 119,560.00 7/ 1/ 9 113,522.50 1/ 1/10 220,000.00 5.850000 113,522.50 7/ 1/10 107,087.50 1/ 1/11 230,000.00 5.950000 107,087.50 7/ 1/11 100,245.00 if 1/12 245,000.00 6.150000 100,245.00 7/ 1/12 92,711.25 1/ 1/13 260,000.00 6.150000 92,711.25 7/ 1/13 84,716.25 1/ 1/14 275,000.00 6.150000 84,716.25 7/ 1114 76,260.00 1/ 1/15 295,000.00 6.150000 76,260.00 7/ 1/15 67,188.75 1/ 1/16 315,000.00 6.150000 67,188.75 7/ 1/16 57,502.50 1/ 1/17 330,000.00 6.150000 57,502.50 7/ 1/17 47,355.00 1/ 1/18 350,000.00 6.150000 47,355.00 7/ 1/18 36,592.50 if 1/19 375,000.00 6.150000 36,592.50 7/ 1/19 25,061.25 1/ 1/20 395,000.00 6.150000 25,061.25 7/ 1/20 12,915.00 1/ 1/21 420,000.00 6.150000 12,915.00 -------- ------ -------- - - -- -- 5,340,000.00 5,470,436.81 ACCRUED 5,340,000.00 5,470,436.81 190,739.31 190,739.31 175,168.75 175,168.75 350,337.50 175,168.75 270,168.75 445,337.50 171,131.25 276,131.25 447,262.50 166,668.75 281,668.75 448,337.50 161,781.25 286,781.25 448,562.50 156,468.75 291,468.75 447,937.50 151,068.75 296,068.75 447,137.50 145,268.75 300,268.75 445,537.50 139,068.75 309,068.75 448,137.50 132,268.75 312,268.75 444,537.50 125,068.75 320,068.75 445,137.50 119,560.00 329,560.00 449,120.00 113,522.50 333,522.50 447,045.00 107,087.50 337,087.50 444,175.00 100,245.00 345,245.00 445,490.00 92,711.25 352,711.25 445,422.50 84,716.25 359,716.25 444,432.50 76,260.00 371,260.00 447,520.00 67,188.75 382,188.75 449,377.50 57,502.50 387,502.50 445,005.00 47,355.00 397,355.00 444,710.00 36,592.50 411,592.50 448,185.00 25,061.25 420,061.25 445,122.50 12,915.00 432,915.00 445,830.00 10,810,436.81 10,810,436.81 To'7,V Z KGs % Iy1� N IC S J So/ '731 Leo Oppenheim & Co., Inc. Micro -Muni Debt Date: 06-12 -1996 2 15:08:10 Filename: OWASSO Key: GOLFPREM3 06/12/96 16:20 $'405 235 0723 LEO OPPENHEIM CO The Owasso Public Improvement Authority Golf Course Purchase Revenue Bonds, Series 19% Debt Service Schedule Date P Principal C Coupon I Interest P Period Total F Fiscal Total 1/ 1/97 1 7/ 1/97 1 174,656.25 1 174,656.25 1/ 1/98 1 174,656.25 1 174,656.25 3 349,312.50 7/ 1/98 1 174,656.25 1 174,65625 1/ 1/99 1 115,000.00 8 8.500000 1 174,656.25 2 289,656.25 4 464,312.50 7/ 1/99 1 169,768.75 1 169,768.75 if If 0 1 125,000.00 8 8.500000 1 169,768.75 2 294,768.75 4 464,537.50 7/ 1/ 0 1 164,456.25 1 164,456.25 1/ 1/ 1 1 135,000.00 8 8.500000 1 164,456.25 2 299,456.25 4 463,912.50 71 1/ 1 1 158,718.75 1 158,718.75 1/ 1/ 2 1 150,000.00 8 8.500000 1 158,718.75 3 308,718.75 4 467,437.50 7/ 1/ 2 1 152,343.75 1 152,343.75 1/ 1/ 3 1 160,000.00 8 8.000000 1 152,343.75 3 312,343.75 4 464,687.50 7/ If 3 1 145,943.75 1 145,943.75 11 1/4 1 175,000.00 6 6.000000 1 145,943 -75 3 320,943.75 4 466,887.50 7/ 1/ 4 1 138,943.75 1 138,943.75 1/ 1/ 5 1 185,000.00 8 8.000000 1 138,943.75 3 323,943.75 4 462,887.50 7/ 1/ 5 1 131,543.75 1 131,543.75 1/ 1/ 6 2 200,000.00 8 8.000000 1 131,543.75 3 331,543.75 4 463,087.50 7/ 1/ 6 1 123,543.75 1 123,543.75 1/ 1/ 7 2 220,000.00 5 5.550000 1 123,543.75 3 343,543.75 4 467,087.50 7/ 1/ 7 1 117,438.75 1 117,438 -75 1/ 1/ 8 2 230,000.00 5 5.650000 1 117,438.75 3 347,438.75 4 464,877.50 7/ 1/ 8 1 110,941.25 1 110,941.25 1/ 1/ 9 2 245,000.00 5 5.750000 1 110,941.25 3 355,941.25 4 466,882.50 7/ 1/ 9 1 103,897.50 1 103,897.50 11 1/10 2 255,000.00 5 5.850000 1 103,897.50 3 358,897.50 4 462,795.00 7/ 1/10 9 96,438.75 9 96,438.75 1/ 1/11 2 270,000.00 5 5.950000 9 96,438.75 3 366,438.75 4 462,877.50 7/ 1/11 8 88,406.25 8 88,406.25 1/ 1/12 2 290,000.00 6 6.150000 8 88,406.25 3 378,406.25 4 466,812.50 7/ 1/12 7 79,488.75 7 79,488.75 1/ 1/13 3 305,000.00 6 6. 150000 7 79 ,488.75 3 384,488.75 4 463,977.50 7/ 1/13 7 70,110.00 7 70,110.00 1/ 1/14 3 325,000.00 6 6.150000 7 70,110.00 3 395,110.00 4 465,220.00 7/ 1/14 6 60,116.25 6 60,116.25 1/ 1/15 3 345,000.00 6 6.150000 6 60,116.25 4 405,116.25 4 465,232.50 7/ 1/15 4 49,507.50 4 49,507.50 1/ 1/16 3 365,000.00 6 6.150000 4 49,507.50 4 414,507.50 4 464,015.00 7/ 1/16 3 38,283.75 3 38,283.75 1/ 1/17 3 390,000.00 6 6.150000 3 38,283.75 4 428,283.75 4 466,567.50 7/ 1/17 2 26,291.25 2 26,291.25 1/ 1/18 4 415,000.00 6 6.150000 2 26,291.25 4 441,291.25 4 467,582.50 7/ 1/18 1 13,530.00 1 13,530.00 1/ 1/19 4 440,000.00 6 6.150000 1 13,530.00 4 453,530.00 4 467,060.00 5,340,000.00 4 4,968,231.25 1 10,308,231.25 ACCRUED _ %T _-- - - ---- -25 - -10- 30-- 23 - -- - % Micro -Muni Debt Date: 06-12-1996 a 15:06 :42 Fitename: OWASSO Key: GOLFPREM2 06/12/96 16:19 `C3'405 235 0723 LEO OPPENHEIM CO f7]00& 11C , / The Owasso Public Improvement Authority Golf Course Purchase Revenue Bonds, Series 1996 Debt Service Schedule exTva_ Date -- - - - - -- - ----- Principal --- ----- Coupon ---- - - --- Interest Period Total fiscal Total 1/ 1197 - - -------- --- -- 187,898.67 --- ---- -- - ---- 187,898.67 ----- --- - - ---- 187,898.67 7/ 1/97 172,560.00 172,560.00 if 1/98 172,560.00 172,560.00 345,120.00 7/ 1/98 172,560.00 172,560.00 1/ 1/99 140,000.00 8.500000 172,560.00 312,560.00 485,120.00 7/ 1/99 166,610.00 166,610.00 1/ 1/ 0 150,000.00 8.500000 166,610.00 316,610.00 483,220.00 7/ 1/ 0 160,235.00 160,235.00 1/ 1/ 1 165,000.00 8.500000 160,235.00 325,235.00 485,470.00 7/ 1/ 1 153,222.50 153,222.50 11 1/ 2 180,000.00 8.500000 153,222.50 333,222.50 486,445.00 7/ 1/ 2 145,572.50 145,572.50 1/ 1/ 3 195,000.00 8.000000 145,572.50 340,572.50 486,145.00 7/ 1/ 3 137,772.50 137,772.50 1/ 1/ 4 210,000.00 8.000000 137,rn.50 347,772.50 485,545.00 T/ 1/ 4 129,372.50 129,372.50 1/ 1/ 5 225,000.00 8.000000 129,372.50 354,372.50 483,745.00 T/ 11 5 120,372.50 120,372.50 1/ 1/ 6 245,000.00 5.400000 120,372.50 365,372.50 465,745.00 7/ l/ 6 113,757.50 113,757.50 1/ if 7 260,000.00 5- 550000 113.757.50 373,757.50 487,515.00 7/ 1/ 7 106,542.50 106,542.50 1/ 1/ 8 275,000.00 5.650000 106,542.50 381,542.50 488,085.00 7/ 1/ 8 98,773.75 98,773.75 1/ V 9 290,000.00 5.750000 98 ,773.75 388,773.75 487,547.50 T/ 1/ 9 90,436.25 90,436.25 1/ 1/10 305,000.00 5.850000 90,436.25 395,436.25 485,872.50 7/ 1/10 81,5/5.Q0 81,515.00 1/ 1/11 320,000.00 5.950000 81,515.00 401,515.00 483,030.00 7/ 1/11 71,995.00 71,995.00 1/ 1/12 340,000.00 6.050000 71,995.00 411,995.00 483,990.00 7/ 1/12 61,710.00 61,710.00 1/ 1/13 360,000.00 6.050000 61,710.00 421,710.00 483,420.00 7/ 1/13 50,820.00 50,820.00 1/ 1/14 385,000.00 6.050000 50,820.00 435,820.OD 486,640.00 7/ 1/14 39,173.75 39,173.75 1/ 1/15 405,000.00 6.050000 39,173.75 444,173.75 483,347.50 7/ 1/15 26,922.50 26,922.50 1/ 1/16 430,000.00 6.050000 26,922.50 456,922.50 483,845.00 T/ 1/16 13,915.00 13,915.00 1/ 1/17 - 460,000.00 ------------- 6.050000 13,915.00 - - - - - -- -- - 473,915.00 ------ ---- - --- 487,830.00 5,340,000.00 4,415,576.17 9,755,576.17 ACCRUED ) / 7670Z (0-5/ 5,340, 000. 00 4,415,576.17 9,755,576.17 I T � Dated 6/15/96 with Delivery of 6/15/96 i'Yl �I Ni 2lf O/t X 87, gig Bond Years 71,457.333 Average Coupon 6.179318 Average Life 13.381523 N I C % 5.917218 % Using 103.5073006 T I C % 5.828809 % From Delivery Date Leo Oppenheim & Co., Inc. Micro-Muni Debt Date: 06-12 -1996 a 15:03 :26 Filename: OWASSO Key: GOLFPREM 06/12/96 16:17 n405 235 0723 LEO OPPENHEIN CO Z003 „ D le The Owasso Public Improvement Authority ' Gold Course Purchase Revenue Bonds, Series 1996 ` a 21 z Pfd as a L _ � - -- Debt Service Schedule Coda ' re�i l,tG U �cE f j at 2 fd L Date Principal Coupon Interest Period Total Fiscal Total l6sT s if 1/97 ------- - - - - -- -------- 164,927.19 - - - - -- 164,927.19 -------- - - - -- - 164,927.19 ) �r -,l aA� [. e5.s �j1 ' 7/ 1/97 151,463.75 151,463 -75 if 1/98 7/ 1/98 151,463.75 151,463.75 151,463.75 151,463.75 302,927.50 �f/ �� •� �%1c7 ul #1.eA1T G 1/ 1/99 170,000.00 4.550000 151,463.75 321,463.75 472,927.50 7/ 1/99 147,596.25 147,596.25 ' 1/ 1/ 0 180,000.00 4.750000 147,596.25 327,596.25 475,192.50 7/ 1/ 0 1433,321.25 143,321.25 1/ 1/ 1 185,000.00 4.900000 143,32125 328,321.25 471,642.50 71 if 1 138,788.75 138,788.75 11 1/2 195,000.00 S.000000 138,788.75 333,788.75 472,577.50 7/ 1/ 2 133,913.75 133,913.75 If 1/3 205,000.00 5.100000 133,913.75 338,913.75 472,527 -50 7/ 1/3 128,686.25 128,656.25 1/ 1/ 4 215,000.00 5.200000 128,686.25 343,686.25 472,372.50 7/ 1/4 123,096.25 123,096.25 1/ 1/ 5 225,000.00 5.300000 123,096.25 348,096.25 471,192.50 7/ 1/ 5 117,133.75 117,133.75 ' 1/ If 6 240,000.00 5.400000 117,133.75 357,133.75 474,267.50 7/ 1/ 6 110,653.75 110,653 -75 it 1/ 7 250,000.00 5.550000 110,653.75 360,653.75 471,307.50 ' 7/ 1/ 7 103,716.25 103,716 -25 1/ If 8 265,000.00 5.650000 103,716.25 36$,716.25 472,432.50 7/ 1/ 8 96,230.00 96,230.00 1/ 1/ 9 280,000.00 5.750000 96,230.00 376,230.00 472,460.00 7/ 119 88,180.00 88,180.00 1/ 1/10 295,000.00 5.850000 88,180.00 383,180.00 471,360.00 7/ 1/10 79,551.25 79,551.25 1/ 1/11 315,000.00 5.950000 79,551.25 394,551.25 474,102.50 7/ 1111 70,180.00 70,180.00 1/ 1/12 330,000.00 6.050000 70,180.00 400,180.00 470,360.00 7/ 1/12 60,197.50 60,197.50 It 1/13 355,000.00 6.050000 60,197.50 415,197.50 475,395.00 7/ 1/13 49,458.75 49,458.75 1/ 1114 375,000.00 6.050000 49,458.75 424,458.75 473,917.50 7/ 1/14 38,115.00 38,115.00 1/ 1/15 395,000.00 6.050000 38,115.00 433,115.00 471,230.00 7/ 1/15 26,166.25 26,16625 1/ 1/16 420,000.00 6.050000 26,166.25 446,16625 472,332.50 71 1/16 13,461.25 13,461.25 1/ 1/17 445.000.00 6.050000 13,461.25 458,461.25 471,922.50 5,340,000.00 4.107,674.69 9,447,674.69 ACCRUED 5,340,000.00 - 4,107,674.69 -- _- - 9,447,674.69 -- - -G. <---- T TW Dated 6/15/96 with Delivery of 6/15/96 �O Bond Years 70,212.333 Average Coupon 5.850361 Average Life 13.148377 N I C % 5.850361 % Using 100.0000000 T I C % 5.813020 % From Oetivery Date Leo Oppenheim & Co., Inc. ' MEMORANDUM ' TO: RODNEY J. RAY CITY MANAGER FROM: F. ROBERT CARR, JR., P.E. J✓ PUBLIC WORKS DIRECTOR ' SUBJECT: REQUEST TO SOLICIT BIDS FOR CONTRACTING RESIDENTIAL REFUSE SERVICES TO A PRIVATE VENDOR DATE: June 12, 1996 ' BACKGROUND: Bids were received on May 2, 1996 for a new refuse collection vehicle. A total of 8 bids were ' submitted by 6 manufacturers, ranging from $105,416.53 to $127,035.00 (the FY95 -96 budget for this purchase is $110,000.00). ' In light of the dollar amount of the vehicle, staff believes it is appropriate to evaluate the overall costs of providing residential refuse collection services. To adequately conduct such an analysis, it is necessary to include the potential for contracting residential collection and disposal services. ' A comparison can then be made with actual and budgeted costs of services using city personnel. FBID SPECIFICATIONS: A set of bid specifications and contract documents has not been completed. We propose, however, to specify that the contractor services will be essentially the same as presently being provided. Generally, we will require: • Once per week curbside pickup • Use of polycarts (with additional bag allowance) and • Separate yardwaste collection In addition, we expect to require bidders to provide prices to purchase existing equipment that will not be needed for city operations. Page 2 Residential Refuse Services AUTHORIZATION TO SOLICIT BIDS: An evaluation of potential savings in residential refuse collection is recommended to be conducted prior to investing in a new collection vehicle. The bid specifications will be completed and the bid advertised so that a final recommendation can be made to the Trustees by the end of July. All bidders for the new refuse collection vehicle have agreed to extend their bids to at least July 31, 1996. This extension should allow sufficient time for responses to be received and evaluated for contracting residential collection and disposal services. Staff recommends Trustees authorization to solicit bids for contracting residential refuse collection and disposal services to a private vendor.