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HomeMy WebLinkAbout2010.04.20_OPWA AgendaPUBLIC NOTICE OF THE MEETING OF THE OWASSO PUBLIC WORKS AUTHORITY RECEIVED TYPE OF MEETING: Regular APR ? 51010 DATE: April 20, 2010 City OIws TIME: 6:30 p.m. PLACE: Council Chambers, Old Central Building 109 N. Birch A Notice of the meeting and agenda filed in the office of the City Clerk and posted at City Hall at 6:00 p.m. on Friday, April 16, 2010. �k, -it R jaJunn M. Stevens, Deputy City Clerk AGENDA 1. Call to Order Chairman Stephen Cataudella 2. Roll Call 3. 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 the Consent Agenda by request. A motion to adopt the Consent Agenda is non - debatable. A. Approval of the Minutes of the April 6, 2010 Regular Meeting. Attachment # 3 -A B. Approval of Claims. Attachment # 3 -B C. Acknowledgement of receiving the monthly FY 2009 -2010 budget status report. Attachment # 3 -C 4. Consideration and appropriate action relating to items removed from the Consent Agenda. 0:\ MANAGERIAL\ Agendas \OPWA\2010 \042010 posting.doc Owasso Public Works Authority April 20, 2010 Page 2 5. Consideration and appropriate action relating to a request for Trustee approval of OPWA Resolution No. 2010 -02, authorizing a loan from the Oklahoma Water Resources Board in the total aggregate principal amount of not to exceed $700,000; approving the issuance of a promissory note in the total aggregate principal amount of not to exceed $700,000, secured by a pledge of revenues and authorizing its execution; designating the local trustee; approving and authorizing the execution of a loan agreement; approving and authorizing the execution of a series 2010 supplemental note indenture; ratifying a lease, as amended by an amendment to lease; approving various covenants; approving and authorizing payment of fees and expenses; authorizing documents pertaining to a year -to -year pledge of certain sales tax revenue; and containing other provisions relating thereto. Ms. Bishop Attachment #5 Staff recommends Trustee approval of Resolution No. 2010 -02. 6. Report from OPWA Manager. 7. Report from OPWA Attorney. S. New Business. (New Business is any item of business which could not have been foreseen at the time of posting of the agenda.) 9. Adjournment. 0:\MANAGERIAL \Agendas \OPWA \2010 \042010 posting.doc I OWASSO PUBLIC WORKS AUTHORITY MINUTES OF REGULAR MEETING Tuesday, April 6, 2010 The Owasso Public Works Authority met in regular session on Tuesday, April 6, 2010 in the Council Chambers at Old Central per the Notice of Public Meeting and Agenda posted on the City Hall bulletin board at 6:00 p.m. on Friday, April 2, 2010. ITEM 1. CALL TO ORDER Chairman Cataudella called the meeting to order at 8:13 p.m. ITEM 2. ROLL CALL PRESENT ABSENT Steve Cataudella, Chairman None Doug Bonebrake, Vice Chair Wayne Guevara, Trustee Jon Sinex, Trustee Bryan Stovall, Trustee A quorum was declared present. STAFF Rodney Ray, Authority Manager Julie Lombardi, Authority Attorney ITEM 3. CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR TRUSTEE APPROVAL OF THE CONSENT AGENDA A. Approval of Minutes of the March 16, 2010 Regular Meeting. B. Approval of Claims. Mr. Bonebrake moved, seconded by Mr. Guevara, to approve the OPWA Consent Agenda with claims totaling $1,758,667.28. The payroll payment reports for pay period ending 03/13/10 and 03/27/10 were included for review. YEA: Guevara, Sinex, Cataudella, Stovall, Bonebrake NAY: None Motion carried 5 -0. Owasso Public Works Authority April 6, 2010 ITEM 4. CONSIDERATION AND APPROPRIATE ACTION RELATING TO ITEMS REMOVED FROM THE CONSENT AGENDA No action was required on this item. ITEM 5. REPORT FROM OPWA MANAGER Mr. Ray introduced Mr. Guevara's daughter. ITEM 6. REPORT FROM OPWA ATTORNEY No report. ITEM 7. NEW BUSINESS None ITEM 8. ADJOURNMENT Mr. Bonebrake moved, seconded by Mr. Guevara, to adjourn the meeting. YEA: Sinex, Stovall, Guevara, Cataudella, Bonebrake NAY: None Motion carried 5 -0 and the meeting was adjourned at 8:14 p.m. Juliann Stevens, Deputy City Clerk Steve Cataudella, Chair Claims List 04/20/10 Budget Unit Title Vendor Name Payable Description Payment Amouni OPWA ADMINISTRATION ONEOK, INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE 123.80 UNIFIRST HOLDINGS LP UNIFORM SERVICE 44.00 UNIFIRST HOLDINGS LP UNIFORM SERVICE 44.00 RICH & CARTMILL NOTARY BOND 30.00 JPMORGAN CHASE BANK OFFICE DEPOT - NOTARY STAMP 31.49 WAL -MART CORP SAMS CLUB 77150903608 OPERATING SUPPLIES 185.95 OFFICE DEPOT INC OFFICE SUPPLIES 81.14 UNITED STATES CELLULAR CORPORATION CELL PHONE SERVICE 56.43 JPMORGAN CHASE BANK LOWES -LIGHT BULBS 8.34 JPMORGAN CHASE BANK MEETING EXPENSE 84.00 JPMORGAN CHASE BANK WALMART- SUPPLIES 70.92 JPMORGAN CHASE BANK MEETING EXPENSE 46.43 TOTAL OPWA ADMINISTRATION 806.50 UTILITY BILLING TECHNICAL PROGRAMMING SERVICES INC BILLING SERVICES 2,364.75 TECHNICAL PROGRAMMING SERVICES INC BILLING SERVICES 1,205.92 TODD C. KIMBALL METER READER 272.70 DAVID R. OLINGHOUSE METER READER 271.35 KATHLEEN A BALSIGER METER READER 151.20 TYRONE EUGENE DINKINS METER READER 318.45 MARK MEYER METER READER 324.45 TODD C. KIMBALL METER READER 267.75 MARK MEYER METER READER 184.27 TOTAL UTILITY BILLING 5,360.84 WATER CITY GARAGE PARTS FOR CITY VEH & TRUC 732.92 FLEETCOR TECHNOLOGIES FUELMAN EXPENSES - MARCH 1,623.71 WORKHEALTH SOLUTIONS, LLC HEP A +B VACCINES 260.00 UNIFIRST HOLDINGS LP UNIFORM SERVICE 48.43 OWASSO TOP SOIL DIRT 120.00 UNIFIRST HOLDINGS LP UNIFORM SERVICE 48.43 JPMORGAN CHASE BANK WATER PROD -METER CANS 385.00 JPMORGAN CHASE BANK LOWES -FIRE EXTINGUISHERS 132.58 CITY GARAGE LABOR & OVERHEAD CHGS 833.33 JPMORGAN CHASE BANK LOWES- FLASHLIGHT 17.88 JPMORGAN CHASE BANK WALMART -PARTS 40.00 JPMORGAN CHASE BANK P &K EQUIP -KEY FOR TR HOE 9.87 JPMORGAN CHASE BANK ATWOODS -TIP CLEANER 6.98 CITY OF TULSA UTILITIES WATER 70,759.71 CITY OF TULSA UTILITIES WATER 86,001.26 TOMMY E. KITCHEN ENGINEERING SERVICES 6,859.38 JPMORGAN CHASE BANK KEYSTONE EQUIP -TRACK HOE 225.35 JPMORGAN CHASE BANK BUMPER TO BUMPER -TORCH 160.49 Page 1 Claims List 04/20/10 Budget Unit Title Vendor Name Payable Description IPayment Amouni TOTAL WATER 168,265.32 WASTEWATER TREATMENT JPMORGAN CHASE BANK HUTHER & ASSOC- MONITORING 925.00 JPMORGAN CHASE BANK ATWOODS- RECOVERY STRAP 40.48 WAL -MART CORP SAMS CLUB 77150903608 OPERATING SUPPLIES 113.74 JPMORGAN CHASE BANK WASTE MGMT- SLUDGE REMOVAL 4,195.85 CITY GARAGE LABOR & OVERHEAD CHGS 333.33 JPMORGAN CHASE BANK IBT -GEAR BOX 1,770.90 JPMORGAN CHASE BANK ATWOODS- BINOCULARS 15.99 UNIFIRST HOLDINGS LP UNIFORM SERVICE 59.24 ZEE MEDICAL, INC FIRST AID SUPPLIES 105.10 AQUAFIX, INC. SUPPLIES FOR WWTP 682.88 AQUAFIX, INC. SUPPLIES FOR WWTP 2,448.00 HAYNES EQUIPMENT COMPANY SUPPLIES FOR WWTP 19.11 UNIFIRST HOLDINGS LP UNIFORM SERVICE 53.56 AQUAFIX, INC. ANALYSIS OF WWTP 280.00 FLEETCOR TECHNOLOGIES FUELMAN EXPENSES - MARCH 885.05 CITY GARAGE PARTS FOR CITY VEH & TRUC 498.07 TOTAL WASTEWATER TREATMENT 12,426.30 WWTP EXPANSION BRB CONTRACTORS, INC. CONSTRUCTION SERVICES 302,023.91 TERRACON CONSULTANTS INC SOIL TESTING FOR WWTP 897.32 CRAFTON, TULL AND ASSOCIATES, INC INSPECTION SERVICES 10,969.50 TOTAL WWTP EXPANSION 313,890.73 WASTEWATER COLLECTION; FLEETCOR TECHNOLOGIES FUELMAN EXPENSES - MARCH 1,558.72 JPMORGAN CHASE BANK OREILLY - BATTERY 47.87 JPMORGAN CHASE BANK ATWOODS -FUEL NOZZEL 22.58 JPMORGAN CHASE BANK BUMPER TO BUMPER -CABLE 8.95 CITY GARAGE PARTS FOR CITY VEH & TRUC 34.03 ONEOK, INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE 313.17 VERDIGRIS VALLEY ELECTRIC COOP GARRETT CREEK ELECTRIC 220.51 VERDIGRIS VALLEY ELECTRIC COOP GARRETT CREEK ELECTRIC 242.54 VERDIGRIS VALLEY ELECTRIC COOP WATER CONTROL ELECTRIC 25.50 VERDIGRIS VALLEY ELECTRIC COOP COFFEE CREEK ELECTRIC 360.72 VERDIGRIS VALLEY ELECTRIC COOP DOUBLE OAKS ELECTRIC 7.82 UNIFIRST HOLDINGS LP UNIFORM SERVICE 45.30 UNIFIRST HOLDINGS LP UNIFORM SERVICE 45.30 JPMORGAN CHASE BANK WATER PROD - RAMNECK 82.60 JPMORGAN CHASE BANK WATER PROD - HOSE /PARTS 283.11 JPMORGAN CHASE BANK WATER PROD - MAINHOLE REP 530.00 JPMORGAN CHASE BANK WATER PROD - HOSE /PARTS 127.69 JPMORGAN CHASE BANK ATWOODS- CONCRETE 56.79 JPMORGAN CHASE BANK FASTENAL- HARDWARE 17.22 Page 2 Claims List 04/20/10 Budget Unit Title Vendor Name Payable Description Payment Amouni WASTEWATER COLLECTION: CITY GARAGE LABOR & OVERHEAD CHGS 666.66 JPMORGAN CHASE BANK ATWOODS- MUFFLER 25.58 JPMORGAN CHASE BANK LOWES -FIRE EXTINGUISHERS 151.52 JPMORGAN CHASE BANK JOHNSTONE- CAPACITOR 7.33 JPMORGAN CHASE BANK LOWES- PADLOCKS 27.94 TOTAL WASTEWATER COLLECTIONS 4,909.45 OPWA E 76TH ST N SAN ITAR'l PARAGON CONTRACTORS, LLC CONSTRUCTION SERVICES 215,984.11 TOTAL OPWA E 76TH ST N SANITARY 215,984.11 REFUSE COLLECTIONS FLEETCOR TECHNOLOGIES FUELMAN EXPENSES - MARCH 5,375.39 NATIONAL POWER WASH, INC REFUSE VEHICLE WASHING 160.00 WORKHEALTH SOLUTIONS, LLC HEP A +B VACCINES 352.00 JPMORGAN CHASE BANK ALSUMA- SERVICE & REPAIR 768.37 JPMORGAN CHASE BANK ALSUMA- SERVICE & REPAIR 284.37 JPMORGAN CHASE BANK ALSUMA- REPAIR ARM 246.07 UNIFIRST HOLDINGS LP UNIFORM SERVICE 46.43 UNIFIRST HOLDINGS LP UNIFORM SERVICE 37.43 JPMORGAN CHASE BANK BUMPER TO BUMPER - CRIMPERS 19.25 JPMORGAN CHASE BANK BUMPER TO BUMPER -FIRE EXT 32.66 UNITED STATES CELLULAR CORPORATION CELL PHONE SERVICE 56.43 CITY GARAGE LABOR & OVERHEAD CHGS 3,333.33 JPMORGAN CHASE BANK FLEETPRIDE -TAIL LIGHT 14.78 JPMORGAN CHASE BANK FLEETPRIDE - RAINCAP 13.59 JPMORGAN CHASE BANK BUMPER TO BUMPER -FLUID 28.90 JPMORGAN CHASE BANK BUMPER TO BUMPER - GREASE 34.00 CITY GARAGE PARTS FOR CITY VEH & TRUC 116.14 TOTAL REFUSE COLLECTIONS 10,919.14 RECYCLE CENTER CITY GARAGE LABOR & OVERHEAD CHGS 166.66 JPMORGAN CHASE BANK WASTE MGMT- RECYCLE R/O 3,925.00 JPMORGAN CHASE BANK CENTRAL SERV- TRAILER 4,850.00 NATIONAL WASTE & DISPOSAL, INC. GLASS ROLL OFF 200.00 UNIFIRST HOLDINGS LP UNIFORM SERVICE 13.48 JPMORGAN CHASE BANK A & N TRAILER -PARTS 14.40 JPMORGAN CHASE BANK MAXWELL - GEOGRID FOR ROAD 2,291.45 UNIFIRST HOLDINGS LP UNIFORM SERVICE 13.48 WORKHEALTH SOLUTIONS, LLC HEP A +B VACCINES 88.00 TOTAL RECYCLE CENTER 11,562.47 OPWA DEBT SERVICE ICRAWFORD & ASSOCIATES, P.C. CWSRF -2009 A, B, C 2,500.00 TOTAL OPWA DEBT SERVICE 2,500.00 Page 3 Claims List 04/20/10 Budget Unit Title I Vendor Name Payable Description IPayment Amouni FUND GRAND TOTAL 746,624.8 OPWA GRAND TOTAL $746,624.86 Page 4 Department OPWA Administration Utility Billing Water Wastewater Wastewater Collection Refuse Recycle Center E 76th St San Interceptor OWASSO PUBLIC WORKS AUTHORITY PAYROLL PAYMENT REPORT PAY PERIOD ENDING 04/10/10 Payroll Expenses Total Expenses 7,938.34 4,572.80 9,696.71 12,394.48 6,672.03 9,133.62 1,046.40 1,075.00 11,437.17 7,739.13 16,189.47 19,462.61 10,739.74 14,185.42 1,800.37 1,222.28 FUND TOTAL 52,529.38 82,776.19 OWASSO PUBLIC WORKS AUTHORITY - OPERATING FUND FISCAL YEAR 2009 -2010 Statement of Revenues & Expenses As of March 31, 2010 OPERATING REVENUES: Water Wastewater Refuse & recycle Proceeds of OWRB debt Otherfees Interest & other TOTAL OPERATING REVENUES OPERATING EXPENSES: Personal services Materials & supplies Other services Capital outlay Debt service TOTAL OPERATING EXPENSES REVENUES OVER EXPENSES TRANSFERS IN (OUT) Transfers in Transfers out TOTALTRANSFERS MONTH YEAR PERCENT OF BUDGET 271,679 3,035,568 4,000,000 75.89% 258,390 2,356,784 3,021,600 78.00% 135,881 1,219,931 1,636,720 74.54% 987,493 2,473,772 19,325,000 12.80% 57,865 313,723 366,000 85.72% 4,156 223,108 229,894 97.05% 1,715,464 9,622,886 28,579,214 33.67% 169,655 1,676,463 2,310,462 72.56% 191,062 2,059,402 2,790,515 73.80% 110,203 837,567 1,789,150 46.81% 936,508 1,726,430 18,097,862 9.54% 244,520 1,982,792 2,351,393 84.32% 1,651,948 8,282,654 27,339,382 30.30% 63,517 1,340,232 1,239,832 108.10% 113,253 228,104 299,184 76.24% (51,824) (312,692) (2,000,000) 15.63% 61,430 (84,588) (1,700,816) 4.97% NET INCOME (LOSS) 124,946 1,255,644 (460,984) WORKING CAPITAL - Beginning Balance 1,298,242 600,000 WORKING CAPITAL - Ending Balance 2,553,886 139,016 MEMORANDUM TO: HONORABLE CHAIR AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO FROM: SHERRY BISHOP ASSISTANT CITY MANAGER, ADMINISTRATION SUBJECT: OWRB VARIABLE RATE LOAN REFINANCING OPWA RESOLUTION NO. 2010-02 CITY RESOLUTION NO. 2010-04 DATE: April 16, 2010 BACKGROUND: At the March 16, 2010 Regular Authority Meeting, the OPWA Trustees approved a resolution authorizing an application with the OWRB to refinance an existing variable rate loan. (See attached Memorandum dated March 11, 2010.) The Trustees of the Oklahoma Water Resources Board approved that application at their meeting on April 13, 2010. Funding for the OPWA loan will be part of a $35 million Revenue Bond to be issued by the OWRB. Final authorization by the OPWA Trustees and the City Council is needed in order to meet the time requirements for approval by the State Bond Oversight Commission prior to issuance of the OWRB Revenue Bonds. OPWA RESOLUTION NO. 2010-02: Approval of Resolution No. 2010 -02 by the OPWA Trustees would authorize a loan from the OWRB in an amount not to exceed $700,000 to refinance a variable rate loan originally issued in 1993. The Promissory Note would have a maturity date not later than October 1, 2019 with Net Interest Cost not to exceed a specified rate. (The "not to exceed" interest rate will be provided at the April 20, 2010 meeting.) The Resolution authorizes the Chairman or Vice Chairman and officers of the OPWA to execute documents and to take further action as required to complete the transaction. OPWA Resolution No. 2010 -02 approves the Loan Agreement and the Series 2010 Supplemental Note Indenture; affirms the existing security agreements, covenants, lease and sales tax pledge; and approves and authorizes the payment of listed fees and expenses associated with the loan. CITY RESOLUTION NO. 2010-04: Any indebtedness incurred by the OPWA requires City Council approval. City Resolution No. 2010 -04 authorizes and approves the action taken by the OPWA to issue its Series 2010 Promissory Note to the OWRB in an amount not to exceed $700,000. The Resolution further affirms the existing lease and sales tax pledge between the City and the OPWA and authorizes the Mayor and City Clerk to execute documents. RECOMMENDATION: Staff recommends Trustee approval of OPWA Resolution No. 2010 -02, authorizing a loan from the OWRB in an amount not to exceed $700,000, and containing other provisions related thereto. Staff recommends City Council approval of City Resolution No. 2010 -04 approving action taken by the OPWA authorizing a promissory note to the OWRB and containing other provisions related thereto. ATTACHMENTS: OPWA Resolution No. 2010 -02 City Resolution No. 2010 -04 OWRB Application Memo dated March 11, 2010 THE TRUSTEES OF THE OWASSO PUBLIC WORKS AUTHORITY, TULSA COUNTY, OKLAHOMA, MET IN REGULAR SESSION ON THIS 20' DAY OF APRIL, 2010, AT 6:30 P. M. PRESENT: ABSENT: Thereupon, the Chairman introduced a Resolution which was read by the Secretary. Trustee moved that the Resolution be adopted and Trustee seconded the motion. The motion carrying with it the adoption of the Resolution prevailed by the following vote: AYE: NAY: The Resolution as adopted is as follows: [Resolution No. 2010 -02 begins on following page] THE OWASSO PUBLIC WORKS AUTHORITY RESOLUTION NO. 2010 -02 A RESOLUTION OF THE OWASSO PUBLIC WORKS AUTHORITY AUTHORIZING A LOAN FROM THE OKLAHOMA WATER RESOURCES BOARD IN THE TOTAL AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $700,000; APPROVING THE ISSUANCE OF A PROMISSORY NOTE IN THE TOTAL AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $700,000, SECURED BY A PLEDGE OF REVENUES AND AUTHORIZING ITS EXECUTION; DESIGNATING THE LOCAL TRUSTEE; APPROVING AND AUTHORIZING THE EXECUTION OF A LOAN AGREEMENT; APPROVING AND AUTHORIZING THE EXECUTION OF A SERIES 2010 SUPPLEMENTAL NOTE INDENTURE; RATIFYING A LEASE, AS AMENDED BY AN AMENDMENT TO LEASE; APPROVING VARIOUS COVENANTS; APPROVING AND AUTHORIZING PAYMENT OF FEES AND EXPENSES; AUTHORIZING DOCUMENTS PERTAINING TO A YEAR -TO- YEAR PLEDGE OF CERTAIN SALES TAX REVENUE; AND CONTAINING OTHER PROVISIONS RELATING THERE'�O. ^A WHEREAS, The Owasso Public Woi *111ority, Tulsa County, Oklahoma (the "Borrower "), was organized under Title 60,,Yk#- ma Statutes 2001, Sections 176 - 180.4, as amended, for the purpose of furthering the blinctions of the City of Owasso, Oklahoma (the "City "); and O QO WHEREAS, the Borrower here6 6 ore issued its Series 1993B Promissory Note to Oklahoma Water Resources Board in the original principal amount of $970,000 (the "1993B Note "); and WHEREAS, the 1993B Note provided long term financing for certain water and wastewater system improvements constructed by the Borrower; and WHEREAS, the Board has approved a loan application of the Borrower and the Borrower has determined to borrow money from the Board for the purpose of refinancing the outstanding principal amount of the 1993B Note and to evidence such loan by the issuance of the Borrower's Series 2010 Promissory Note to Oklahoma Water Resources Board in the original principal amount of not to exceed $700,000 (the "2010 Note "), said Note being secured by a pledge of revenue derived from Borrower's water, sanitary sewer, garbage and trash collection systems and the Bailey Ranch Golf -Club (hereinafter collectively the "System ") and the revenue generated pursuant to a two percent (2 %) sales tax received by the Borrower from the City, which sales tax is levied pursuant to Ordinance No. 103 of the City, as amended by Ordinance No. 153 of said City (the "Limited Sales Tax Revenue "). NOW, THEREFORE, BE IT RESOLVED BY THE TRUSTEES OF THE OWASSO PUBLIC WORKS AUTHORITY, TULSA COUNTY, OKLAHOMA: PA Section 1. Issuance of Note. The Borrower is hereby authorized to accept said loan and issue its 2010 Note payable to the Board. The principal amount of the 2010 Note shall not exceed $700,000, and the Net Interest Cost on the 2010 Note shall not exceed % per annum, and the maturity date shall be not later than October 1, 2019. The Chairman or Vice Chairman shall be authorized to execute a Certificate of Determination establishing the principal amount, maturity, and rate of interest on the Note. The 2010 Note will be secured by a lien on the revenues of the System and a year -to -year pledge of the Limited Sales Tax Revenue. The officers of the Borrower are hereby authorized and directed to execute the 2010 Note and to do any and all lawful things to effect said loan and secure said loan from the Board. Section 2. Desianation of Local Trustee. The Borrower hereby designates The Bank of New York Mellon Trust Company, N.A., to serve as the Local Trustee of certain funds in relation to the 2010 Note. Section 3. Execution of Loan Agreement. The Loan Agreement, by and between the Borrower and the Board (the "Loan Agreement ") is hereby approved and the Chairman or Vice Chairman and Secretary or Assistant Secretary are hereby authorized to execute same for and on behalf of the Borrower, and to do all other lawful things to carry out the terms and conditions of said Loan Agreement. Section 4. Execution of Series 2010 Supplemental Note Indenture. The Series 2010 Supplemental Note Indenture, by and between the Borrower and the Local Trustee (which supplements and amends the General Bond Indenture dated as of December 1, 1997 between said parties and as heretofore supplemented and amended), pertaining to the 2010 Note is hereby approved and the Chairman or Vice Chairman and Secretary or Assistant Secretary are hereby authorized to execute same for and on behalf of the Borrower, and to do all other lawful things to carry out the terms and conditions of said Series 2010 Supplemental Note Indenture. The General Bond Indenture as heretofore supplemented and amended and as supplemented pursuant to the terms of the Series 2010 Supplemental Note Indenture shall be referred to herein collectively as the "Indenture ". Section 5. Covenants of Borrower. Until payment in full of the 2010 Note and performance of all obligations owing to the Board under the Loan Agreement and the instruments executed pursuant hereto, unless the Board shall otherwise consent in writing, the Borrower hereby represents its intent to abide by and carry out the covenants contained in the Indenture and the Loan Agreement, which covenants are incorporated herein in their entirety. Section 6. Lease. The Lease dated July 31, 1973, as amended by an Amendment to Lease dated as of July 1, 1996, between the City of Owasso, Oklahoma, and the Borrower, whereby the City leased its water, sanitary sewer, garbage and trash collection systems and the Bailey Ranch Golf Club to the Borrower, is hereby ratified and confirmed and the term of said Lease, as amended, shall extend until the 2010 Note is paid. 3 Section 7. Fees and Expenses. Upon closing of the referenced loan, the officers of the Borrower are hereby authorized to disburse (from loan proceeds or other available funds of the Borrower) certain fees and expenses all as set forth on Exhibit "A" hereto. Section 8. Sales Tax Pledge. That the Chairman or Vice Chairman and Secretary or Assistant Secretary of the Borrower be and are hereby authorized to execute and deliver any and all documentation on behalf of the Borrower pertaining to the year -to -year pledge of the Limited Sales Tax Revenue for purposes of securing the 2010 Note. Section 9. Necessary Action. The Chairman or Vice Chairman and Secretary or Assistant Secretary of the Borrower are hereby further authorized on behalf of the Borrower to approve the disbursement of the proceeds of the 2010 Note and other funds of the Borrower in connection with the issuance of the 2010 Note and the accomplishment of the transaction contemplated herein, and further, to accept, receive, execute, attest, seal and deliver the above mentioned documents and all additional documentation, certifications and instruments and to take such further actions as may be required in connection with the transaction contemplated hereby, and are further authorized to approve and make any changes to the documents approved by this Resolution, for and on behalf of the Borrower, the execution and delivery of such documents being conclusive as to the approval of any terms contained therein. [Remainder of Page Intentionally Left Blank] M APPROVED AND ADOPTED THIS 20TH DAY OF APRIL, 2010. (SEAL) ATTEST: Sherry Bishop, Secretary APPROVED AS TO FORM: Julie Lombardi, Authority Attorney 5 THE OWASSO PUBLIC WORKS AUTHORITY Stephen Cataudella, Chairman STATE OF OKLAHOMA ) )SS COUNTY OF TULSA ) I, the undersigned, Secretary of The Owasso Public Works Authority, Tulsa County, Oklahoma, an Oklahoma public trust, 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 Board of Trustees of said public trust 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. (SEAL) GIVEN UNDER MY HAND THIS 20TH DAY OF APRIL, 2010. 2 Secretary EXHIBIT "A" Fees and Expenses Paid at Closing The Bank of New York Mellon Trust Company, N.A., Acceptance Fee $500.00 The Public Finance Law Group PLLC Legal Fee and Reimbursement for Out -of- Pocket Expenses $17,000.00 Hawkins Delafield & Wood LLP Special Tax Counsel Legal Fee $5,000.00 Crawford & Associates, P.C. Consulting Fee for Certificate of Additional Debt $2,500.00 Oklahoma Water Resources Board Issuance Costs $6,000.00* * Not to exceed amount; to be established pursuant to Closing Order of Borrower 7 PURSUANT 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 MAYOR AND CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA (THE "CITY ") MET IN REGULAR SESSION IN SAID CITY ON THE 20TH DAY OF APRIL, 2010, AT 6:30 O'CLOCK P.M. PRESENT: ABSENT: (OTHER PROCEEDINGS) Thereupon, the following resolution was introduced and caused to be read by the City Clerk. Councilmember moved passage of the Resolution and Councilmember seconded the motion. The motion carrying with it the approval of said Resolution was approved by the following vote: F., NAY: The Resolution so approved is as follows: [Resolution No. 2010 -04 begins on following page] CITY OF OWASSO, OKLAHOMA RESOLUTION NO. 2010-04 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, APPROVING ACTION TAKEN BY THE OWASSO PUBLIC WORKS AUTHORITY AUTHORIZING ISSUANCE, SALE AND DELIVERY OF A PROMISSORY NOTE OF THE AUTHORITY TO THE OKLAHOMA WATER RESOURCES BOARD; RATIFYING A CERTAIN LEASE, AS AMENDED; 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 April 20, 2010, authorize the issuance, sale and delivery of its Series 2010 Promissory Note to Oklahoma Water Resources Board, in order to refinance the outstanding principal amount of the Authority's Series 1993B Promissory Note to Oklahoma Water Resources Board, which financed improvements to the Authority's water and wastewater systems; and WHEREAS, the Mayor and City Council hereby determine that the actions taken by the Authority should be authorized and approved. ^�vy NOW, THEREFORE, BE IT RESOLV, ,E CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA THAT: c c, O Section 1 . Issuance of Note. T e issuance, sale and delivery of The Owasso Public Works Authority, Tulsa County, Oklahoma, Series 2010 Promissory Note to Oklahoma Water Resources Board in the principal amount of not to exceed $700,000 (the "2010 Note "), all as approved by said Authority on April 20, 2010, 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 2010 Note, and all other aspects of the transaction be and are hereby authorized, approved and ratified. Section 3. Lease. 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, 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 2010 Note is paid. Section 4. Sales Tax Pledge. That the Mayor or Vice Mayor and City Clerk or Assistant 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. 1A Section 5. Necessary Action. That the Mayor or Vice Mayor and City Clerk or Assistant 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 2010 Note and all other aspects of the transaction. [Remainder of Page Intentionally Left Blank] c APPROVED AND ADOPTED THIS 20TH DAY OF APRIL, 2010. (SEAL) ATTEST: Sherry Bishop, City Clerk APPROVED AS TO FORM: Julie Lombardi, City Attorney 11 Stephen Cataudella, Mayor 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. (SEAL) GIVEN UNDER MY HAND THIS 20TH DAY OF APRIL, 2010. 5 City Clerk MEMORANDUM TO: HONORABLE CHAIR AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY FROM: SHERRY BISHOP ASSISTANT CITY MANAGER, ADMINISTRATION SUBJECT: RESOLUTION NO 2010 -01 OWRB APPLICATION FOR LOAN RE- FINANCING DATE: March 11, 2010 BACKGROUND: The OPWA has an opportunity to convert a variable interest rate note to a fixed interest rate. The note was one of two loans for water and sewer system improvements secured by the OPWA in 1993 with the Oklahoma Water Resources Board (OWRB). Loan number FAP 92- 0107 -LB was a thirty - year variable interest rate note for $970,000. The OWRB has advised us that they are working with another city to issue a large fixed rate bond issue ($30+ million) that provides an opportunity for other OWRB borrowers to convert current variable rate loans to a fixed rate. The loan closing is not expected until early June, but the OWRB wants to proceed with its decision making process at their April board meeting. In order to meet that time frame, an application with the OWRB must be submitted next week (requested by March 19`h). Applications to the OWRB must be authorized by an OPWA resolution. The main advantage of this fixed rate conversion would be to eliminate the potential risk of future high interest rates. There is no cap on the current variable rate. The OWRB re -sets the rate quarterly when they re- market their bonds. The potential savings from this rate conversion is based on an assumption that interest rates would increase over the next twelve years. The historical average interest rate for this OWRB program (since 1986) has been 4.088%. If rates stay at less than 4% over the next 12 years, there would not be considerable savings from this rate conversion. Much of the savings would come from reducing the term by three years. The estimated savings from this rate conversion ranges from $45,000 to more than $140,000 depending on future interest rates. The proposed re- financing would — ■ Refund the existing loan ($688,233.32 current balance), • Reduce the term to 9 years (from the remaining12 years), • Fix an interest rate (3.0% current estimate), • Fund a new debt service reserve (approximately $70,000, reduced from current $97,000). • Pay all costs of issuance ($26,000 estimate). OPWA RESOLUTION NO. 2010-01: Resolution No. 2010 -01 authorizes an application with the OWRB to re- finance the Owasso FAP Series 1993B note. The resolution also hires The Public Finance Law Group PLLC (Allan Brooks) to serve as counsel for this re- financing. After approval by the OWRB, authorization for the actual re- financing would require additional action by the OPWA Trustees and the City Council at a future meeting. RECOMMENDATION: Staff recommends Trustee approval of OPWA Resolution No. 2010 -01 authorizing an application with the OWRB for loan re- financing.