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Home My WebLink About2005.10.04_OPWA AgendaTYPE OF MEETING: Regular DATE: October 4, 2005 TIME: 6 :30 p.m. PLACE: Council Chambers, Old Central Building 109 N. Birch Notice and agenda filed in the office of the -City Cleric and posted at City Hall t 5:00 p.m. on Friday, September 30, 2005. i l J,dliann M. Stevens, Admir.iirative Assistant s 1. Call to Order Chairman Thoendel 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 the Consent Agenda by request. A motion to adopt the Consent Agenda is non - debatable. A. Approval of the Minutes of the September 20, 2005 Regular Meeting. Attachment # 4 -A B. Approval of Claims. Attachment # 4 -B S:\Agendas \OP WA\2005\ 1004.doc Owasso Public Works Authority October 4, 2005 Page 2 5. Consideration and appropriate action relating to a request for Trustee authorization for the solicitation of competitive interest rate quotes from financial institutions for the purpose of funding Capital Improvement Projects, Mr. Ray Attachment #5 Staff will recommend Council authorization to solicit Interest rate quotes from financial institutions for the funding of Capital improvement Projects. 6. Report from OPWA Manager. 7. Report from OPWA Attorney. 8. 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. S A\Agendas \0P WA\2005 \1004.doe OWASSO PUBLIC WORKS AUTHORITY MINUTES OF REGULAR MEETING Tuesday, September 20, 2005 The Owasso Public Works Authority met in regular session on Tuesday, September 20, 2005 in the Council Chambers at Old Central per the Notice of Public Meeting and Agenda posted on the City Hall bulletin board at 5 :00 p.m. on Friday, September 16, 2005. ITEM I. CALL, TO ORDER Chairman "Thoendel called the meeting to order at 8:10 p.m. ITEM 2. FLAG SALUTE The flag salute was held during the City Council meeting preceding this meeting. ITEM 3. ROLL CALL PRESENT ABSENT Craig Thoendel, Chairman Steve Cataudella, Vice Chair Brent Colgan, Trustee Wayne Guevara, Trustee Susan Kimball, Trustee A quorum was declared. present. STAFF Rodney J. Ray, Authority Manager Julie Lombardi, Authority Attorney ITEM 4. CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR TRUSTEE APPROVAL OF THE CONSENT AGENDA A. Approval of Minutes of the September 6, 2005 Regular Meeting B. Approval of Claims Ms. Kimball moved, seconded by Mr. Cataudella, to approve the OPWA Consent Agenda with claims totaling $259,603.95 and payroll claims totaling $64,435.29. YEA: Cataudella, Colgan, Guevara, Kimball, Thoendel NAY: None Motion carried 5 ®0. Owasso Public Works Authority September 20, 2005 ITEM 5. CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR TRUSTEE APPROVAL OF A SUPPLEMENTAL APPROPRIATION TO CARRY OVER UNEXPENDED FUNDS FROM THE FY 2004-2005 BUDGET TO THE FY 2005 -2006 BUDGET Ms. Bishop presented the item. Mr. Cataudella moved, seconded by Ms. Kimball, for Trustee approval of a budget amendment increasing the Owasso Public Works Authority appropriation for expenditures by $21 7,64'1.00. YEA: Cataudella, Colgan, Guevara, Kimball, Thocndel NAY: None Motion carried 5--0. Public Works Director Ana Stagg updated the Council on the progress of the Bailey Ranch Water Tower. InS "I ITEM 8. NEW BUSINESS None Mr. Cataudella moved, seconded by Mr. Colgan, to adjourn. YEA: Cataudella, Colgan, Guevara, Kimball, Thoendel NAY: None Motion carried 5 -0 and the meeting was adjourned at 8:15 p.m. Pat Fry, Minute Clerk N Craig Thoendel, Chairman OPWA CLAIMS TO BE PAID 10/04/05 SIMMONS HOMES TRADITION HOMES OFFICE DEPOT OFFICE DEPOT WAL -MART COMMUNITY SAMS CLUB MURPHY SANITARY SUPPLY CULLIGAN ACCURATE FIRE EQUIPMENT OLINGHOUSE, DAVID R. BALSIGER, KATHLEEN A DINKINS, TYRONE MCLAURIN, OSCAR MEYER, MARK WATER PRODUCTS TECHNICAL PROGRAMMING SERVICES WATER PRODUCTS UNIFIRST CORPORATION ARMY NAVY SURPLUS GEORGE & GEORGE SAFETY GELLCO SAFETY SHOES BROWN FARMS SOD VERMEER SALES OF OKLA FERGUSON ENTERPRISES WATER PRODUCTS APAC SERVICE CENTER ACCURATE LABORATORY SUPPLIES WASHINGTON CO RWD 3 HAYNES EQUIPMENT TRUGREENLANDCARE LENOX WRECKER SERVICE EQUIPMENT ONE GREEN EQUIPMENT COMPANY NORTH CENTRAL LABORATORIES UNIFIRST CORPORATION GEORGE & GEORGE SAFETY HAYNES EQUIPMENT WATER PRODUCTS LOWES COMPANIES GREEN COUNTRY TESTING WASTE MANAGEMENT OF OKLA ALDINGER COMPANY PERMIT REFUND PERMIT REFUND REFUND TOTAL OFFICE SUPPLIES OFFICE SUPPLIES JANITORIAL SUPPLIES OPERATING SUPPLIES OPERATING SUPPLIES BOTTLED WATER SERVICE -FIRE EXTINGUISHER ADMINISTRATION DEPT TOTAL MARKING FLAGS /MAINT SUPPLIES UNIFORMS /PROT CLOTHING HIP WADERS- BARGAS PROT CLOTHING /GATORADE BOOTS -DAY SOD PARTS -MOLE REPAIR FIRE HYDRANT LEAK REPAIRS ASPHALT POCKET COLORIMETER WATER TOWER LEVEL INDICATOR - SERVICE CAL LANDSCAPE MAINT TOWING SERVICE RENTAL -AIR COMPRESSOR RADIODETECTION LOCATOR WATER DEPT TOTAL LAB SUPPLIES UNIFORMS /PROT CLOTHING PROT CLOTHING /GATORADE CONTACTOR -RAS PUMP DIGESTER PARTS MISC HARDWARE AMMONIA TESTING TIPPING FEES LABORATORY SCALES 500.00 400.00 900.00 97.56 33.91 5.08 105.21 17.70 36.79 23.00 319.25 558.90 153.00 384.15 321.75 589.05 3,643.32 1,016.27 6,666.44 81.47 32.31 95.99 35.09 89.99 50.00 686.94 1,110.15 980.49 267.19 360.00 177.66 524.50 130.00 75.00 50.00 5,187.00 9,933.78 26.77 39.86 35.09 140.42 821.46 56.58 80.00 2,829.38 144.25 VENDOR DESCRIPTION AMOUNT CLARION MERIDIAN HOTEL LODGING-LONG 130.00 OK WATER & POLLUTION CONTROL TRAINING-LONG 80.00 K8CKN|6HT. JOHNNY YVAYNE PER DIEM 100.00 JPMORGAN CHASE BANK VVVV TREATMENT PLANT DEPT TOTAL 4.493.81 LOVVE3CDMPAN|E8 SPRAY PAINT 34.88 UN|F|R8TCORPORAT0N UN|FORMS/PR0TCLOTH|NG 01.82 GEORGE & GEORGE SAFETY PROT CLOTH |N6/GATORADE 35.09 GRA|NGER START UPKIT 88.87 GNC CONCRETE PRODUCTS PRECAST MANHOLE 386.00 TWIN CITIES READY MIX CONCRETE-DUMP STATION 192.50 MCCLURE.UANNY STEELDUMPSTAT|ON 100.00 CLIFFORD POWER SYSTEMS GENERATOR REPAIR 472.00 GRA|NGER AIR COMPRESSOR 170810 WASTEWATER DEPT TOTAL 3.091.20 GRA|NGER PARTA|RCOMPRESSOR 0.00 D'RE|LLYAUTUMOT|VE PARTS-AIR COMPRESSOR 12.94 LOVVE3COMPAN|ES M|SCHARDYVARE 8.50 UN|F|RSTCORP0RAT|0N UN|FORK4S/PROTCLOTH|NG 32.20 GEORGE & GEORGE SAFETY PROT CLOTH |NG/GAT0RADE 35.09 NATIONAL POWER WASH POWER WASH-REFUSE TRUCK 115.00 ACCURATE FIRE EQUIPMENT SERVICE-FIRE EXTINGUISHER 18.00 MET DUES/FEES-POLLUTANT PROGRAM 1.071.42 WASTE MANAGEMENT OFOKLA TIPPING FEES 1310007 REFUSE DEPT TOTAL 15'239.42 UN|F|RSTCDRP0RAT|ON UN|FORMG/PROTCLOTH|NG 080 GRA|NGER A|RCOK4PRE8S0FUTOOL8 771.69 WASTE MANAGEMENT OFTULSA TIPPING FEES 2.412.07 WASTE MANAGEMENT OFOKLA TIPPING FEES 261753 RECYCLE DEPT TOTAL 5,808.09 .#lPWA OPERAING FUND TOTAL 46,512.U5 JPM()R8AN CHASE BANK FAP-01-0003'L 6.027.20 JPMORGAN CHASE BANK FAP'04-0000'L 21.905.56 JPMORGAN CHASE BANK FAP-92'107-LB 4.340.70 JPMORGAN CHASE BANK ORF'01-0002'L 10.523.37 JPMORGAN CHASE BANK ORF-02-0017'L 10.190.79 JPM{)RG/\N CHASE BANK ORF'09'008-L 310383 CAPITAL IMPROVEMENTS FUND TOTAL 5809945 RCB TRUST SERVICES SERIES 2U04NOTE 134.70625 CITY 0FDVVAS8O TRANSFER TO CAPITAL IMPROVEMENTS 148688677 OPVVA SALES TAX FUND TOTAL 182151302 OPVVA GRAND TOTAL 172412452 TO- HONORABLE CHAIR AND TRUSTEES OWASSO PUBLIC WORIKS AUTHORITY FROM- SHERRY BISHOP FINANCE DIRECTOR SUBJECT- TRANSFER FROM OPWA SALES TAX ACCOUNT TO CITY'S CAPITAL IMPROVEMENTS FUND DATE: September 30, 2005 The OPWA Sales Tax Account is used to account for the use of the restricted third -penny sales tax. The third penny is transferred from the City's General Fund to the OPWA Sales Tax Account and used to pay debt service. The amount in excess of the required debt payments becomes available for transfer to the City's Capital Improvements Fund where it is utilized to fund capital improvement projects. The amount remaining in the OPWA Sales Tax Account at the end of fiscal year 2005 is $1,486,806.77 and should be transferred to the City's Capital Improvements Fund. This transfer is included on the Claims List for Trustee approval on the Consent Agenda of the October 4, 2005 OPWA meeting. OVERTIME TOTAL DEPARTMENT r � EXPENSES EXPENSES OPWA Administration 0,00" $15,463.58 Utility Billing 0.00 4,467,80 Wastewater 208.54 13,054.83 Wastewater Collection 248.83 7,567.59 Refuse 235.62 10,816.84 Recycle Center 0.00 1,445.57 t` �r 1, 111 FROM. TO. HONORABLE CHAIRMAN AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY O CITY MANAGEME SU JECTa CAPITAL PROJE CT FUNDING SOLICITATION OF QUOTES DATE: September 28, 2005 BACKGROUND: In 2004, the city staff developed a capital financing concept that was designed to: a) reduce the cost of issuance for debt issued by the City; b) reduce the length of debt for capital projects in order to lower interest costs; and c) use city reserves to initially fund projects (again to lower interest costs to the City). Additionally, the concept recognized that using a "bank note" concept (directly borrowing from a financial institution) was less costly than a "revenue bond ". Finally, there was recognition that if local financial institutions were used for such loans they would reinvest earnings in the form of business loans within the community. The City Council approved the financing concept and the first debt was issued in December of 2004 in the amount of $ 10,000,000 for the first phase of funding for the approved capital projects. It was acknowledged at that time that additional funding would be required to complete the approved projects. Additionally, it was recognized that this financing method would need to be reviewed and modified after the first experience in the new process was evaluated. Subsequent to the initial debt issued under the capital financing concept, the proceeds were utilized to repay the City for funds advanced under a Revenue Anticipation Note between the City and the Owasso Public Works Authority and to initiate a number of capital improvement projects. At this point, the proceeds from that debt have been exhausted and the City has once again (as planned) utilized reserves to continue construction (in the same manner as a "drawdown" for a construction loan). The staff believes this is the appropriate time to issue additional debt to complete all of the authorized capital improvement projects for two reasons. The city is restricted in the amount of tax - exempt debt issued in any calendar year. This debt must be issued in calendar 2005 to preserve the option to issue other debt in 2006. The other reason is the concern that additional funds for advancement from reserves are limited. The staff proposes an additional ten million dollars in short -term (seven years) debt, utilizing the same concept of a bank note based on a competitive quote of interest rates. In order to initiate that process, authorization for the solicitation of quotes is requested. Memo September 29, 2005 Page 2of3 PROCESS MODIFICATIONS: As anticipated, there are a couple of areas that are recommended for process modification. The restriction regarding the use of local financial institutions is one of two requested changes. Initially, it was thought that using local banks would allow for low interest costs, as well as, reinvestment in the community. In review, it appears that such a restriction is not in the best interest of the taxpayers. The reason is that bids acquired firm local financial institutions have not resulted in a lower interest rate. In fact, last year's lowest bidder was a bank that, at the time, had a contract for the purchase of property, but had not actually constructed a facility in Owasso. Had they not been allowed to bid, the cost of the debt would have been higher. For that reason, the staff is recommending a modification to the process that will open the bidding to a broader group, but maintain the ability of our local financial institutions to participate in the financing if they so desire. This recommended modification would still allow local financial institutions to bid on "any part or all" of the debt package and would eliminate the restriction prohibiting nonresident banks from bidding. The staff believes this will be a positive change for the City. The second modification relates to the extent of the use of a Financial Advisor. fast year, there was a level of uncertainty as the new process was being created and some measure of protection for existing bondholders was needed. Thus, after stating originally that we would cut costs by not using a financial advisor, the staff eventually changed their position and recommended the use of Keith McDonald. Now, as knowledge regarding the process has increased, the staff is of the opinion that the financial advisor's role can be reduced. Generally, the process utilized last year is in place and requires less assistance from the financial advisor. Although there must still be some use of a financial advisor, the staff believes they can accomplish many of these tasks. The cost reduction is not predictable at this point, but can be quantified prior to the closing on the note. It should be noted that use of Bond Counsel (legal and tax advise) is imperative and cannot be reduced. FUNDING: To comply with certain IRS regulations, $10 million is the maximum tax-exempt debt the city (and all of its trust authorities) can issue in a calendar year. Based on the existing debt level and projected sales tax increases, we can afford to borrow another $10 million with a seven-year term. Based on the budgets for the current projects, we need about $7.5 million to complete those projects. Of the five major projects on the list, two (Garnett and 96th Street) are under construction so budget amounts are relatively firm. The final design and bids are not complete for any of the other three major projects (86th & Mingo Intersection, Fire Station #3, Silver Creek Drainage) so actual cost is very uncertain. Post-hurricane construction costs may increase greatly and it would be costly to issue additional one or two million in debt if more funds are needed next year. Staff will recommend that we borrow $10 million at this time. Memo September 29, 2005 Page 3 of 3 If funds are available after the current projects are completed, other priorities can be addressed. Some needs that could be considered are right of way acquisition, land for fire station 44 or additional preliminary engineering. PROJECTS TO BE FUNDED. The following projects are currently budgeted. Garnett Widening Project $2,800,000 96th Street North & Garnett Intersection Project $1,700,000 Lire Station 43 - Land & wilding Construction $1,210,000 86th Street North & Mingo Intersection Improvements (1998 Bond Project) $600,000 Sports hark Improvements $277,000 Silver Creek Drainage Improvements uti Engineering m Preliminary Design of Intersections $100,000 r $7,437,000 NEST. This request is for Trustee authorization for the solicitation of interest quotes for the issuance of ten million dollars in debt for a period of seven years. `