HomeMy WebLinkAbout2010 04_Promisary Note to Oklahoma Resources Board_2010.04.20
CITY OF OWASSO, OKLAHOMA
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RESOLUTION NO. 2010-04
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OWASSO,
OKLAHOMA, APPROVTNG ACTION TAKEN BY THE OWASSO PUBLIC
WORKS AUTHORITY AUTHORIZING ISSUANCE, SALE AND DELIVERY
OF A PROMISSORY NOTE OF THE AUTHORITY TO THE OKLAHOMA
WATER RE50URCES BOARD; RATIFYING A CERTAIN LEASE, AS
AMENDED; AUTHORIZING DOCUMENTS PERTAINING TO A YEAR-TO-
YEAR PLEDGE OF CERTAIN S.ALES TAX REVENUE; AND CONTAINING
OTHER PROVISIONS RELATED THERETO.
WHEREAS, The Owasso Public Works Authoriiy (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 arder 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.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
OWASSO, OKLAHOMA THAT:
Section 1. Issuance of Note. That the 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 Authoriry on Apri120, 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 3uly 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 Ciiy 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.
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Section 5. Necessarv Action. That the Mayor or Vice Mayor and City Clerk or Assistant
Ciiy 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.
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APPROVED AND ADOPTED THIS 20TH DAY OF APRIL, 2010.
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Stephen Ca udella, Mayor
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Sherry Bish , City Clerk
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STATE OF OKLAHOMA )
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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 20TH DAY OF APRIL, 2010.
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City Clerk
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APPROVEU BY COUNCIi.
MEMORANDUM APR 2 0 2010
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