HomeMy WebLinkAbout2011 11_Santa Fe Pump Station OWRB Loan_2011.11.15CITY OF OWASSO, OKLAHOMA
RESOLUTION NO. 2011-11
A RESOLUTION APPROVING ACTION TAKEN BY THE OWASSO PUBLIC WORKS
AUTHORITY AUTHORIZING ISSUANCE, SALE AND DELIVERY OF ITS SERIES 2011 CLEAN
WATER SRF PROMISSORY NOTE TO OKLAHOMA WATER RESOURCES BOARD; RATIFYING
AND CONFIRMING A LEASE WHEREBY THE CITY OF OWASSO LEASED TO THE OWASSO
PUBLIC WORKS AUTHORITY ITS WATER, SANITARY SEWER, AND GARBAGE AND TRASH
COLLECTION SYSTEMS AND THE BAILEY RANCH GOLF CLUB; RATIFYING AND
CONFIRMING A SUBORDINATE LIEN SALES TAX AGREEMENT; AND CONTAINING OTHER
PROVISIONS RELATED THERETO.
WHEREAS, The Owasso Public Works Authority (the "Authority") did, by its Resolution
adopted November 15, 2011, authorize the issuance, sale and delivery of its Series 2011 Clean
Water SRF Promissory Note to Oklahoma Water Resources Board; and
WHEREAS, the City Council hereby determines that the actions taken by the Authority
should be authorized and approved; and
WHEREAS, the City hereby determines that such other action necessary or attendant to
accomplishment of the referenced financing should be considered by the City Council of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OWASSO,
OKLAHOMA:
Section I. Issuance of Note. That the issuance, sale and delivery of The Owasso Public
Works Authority, Tulsa County, Oklahoma, Series 2011 Clean Water SRF Promissory Note to
Oklahoma Water Resources Board in a principal amount of $3,115,000.00 (the "2011 Note"), all as
approved by said Authority on November 15, 2011, 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 2011 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 the Amendment to Lease
dated as of July 1, 1996, both by and between the City the Authority (the "Lease"), whereby the
City leased to the Borrower its water, sanitary sewer, and garbage and trash collection systems
and the Bailey Ranch Golf Club is hereby ratified and confirmed and the term of said Lease shall
extend until the 2011 Note is paid.
Section 4. Subordinate Lien Sales Tax Agreement. The Subordinate Lien Sales Tax
Agreement, dated September 1, 2007, by and between the Authority and the City and pertaining
to the year-to-year pledge of the certain sales tax revenue derived from the levy of a two percent
(2%) sales tax is hereby ratified and confirmed.
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 2011 Note and all other aspects of the transaction.
[Remainder of Page Left Blank Intentionally]
PASSED AND APPROVED THIS 15TH DAY OF NOVEMBER, 2011.
ATTEST:
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SherryBish , City Clerk
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TO:
FROM:
SUBJECT:
DATE:
The Honorable Mayor and City Council
City of Owasso
The Honorable Chair and Trustees
Owasso Public Works Authority
Sherry Bishop
Assistant City Manager, Administrative Services
OWRB Loan - Santa Fe Pump Station Project
City Resolution No. 2011-11
OPWA Resolution No. 2011-03
November 11, 2011
BACKGROUND:
The OPWA Trustees approved the Santa Fe Pump Station and Force Main Improvement project
and approved an agreement for engineering services on February 16, 2010. On September 20,
2010, the Trustees authorized a loan application with the Oklahoma Water Resources Board
(OWRB) for financing the project.
The OWRB operates the State Revolving Fund (SRF) loan program and the Financial Assistance
Program (FAP). These programs provide low interest financing for eligible water, wastewater
and stormwater projects. The OPWA application has been approved by the OWRB for up to
$3,540,000 for financing for this project.
The OWRB staff has completed the final review of project bids and other documentation. A final
budget amount of $3,115,000 and an interest rate of 2.61 % for the loan have been approved by
the OWRB. All documents relating to this financing have been prepared by Allan Brooks who
serves as bond counsel for the City and the OPWA and those documents have been reviewed
by City Attorney, Julie Lombardi.
PROPOSED ACTION:
Financing for this project requires action by both the City Council and the OPWA Trustees. The
loan must be approved by the OPWA Trustees and any indebtedness incurred by the OPWA
requires City Council approval.
OPWA Resolution No. 201 1-03 authorizes a Clean Water SRF loan from the OWRB in the amount
of $3,115,000 with an interest rate of 2.61% and approves the issuance of a Series 2011 Clean
Water SRF promissory note to the OWRB. The resolution also affirms the existing security
agreements, covenants, lease and sales tax pledge; approves and authorizes payment of fees
and expenses; and authorizes the Chairman and Secretary to execute documents and to take
further action as required to complete the transaction.
City Resolution No. 2011-11 approves action taken by the OPWA authorizing issuance of the
Series 2011 Clean Water SRF promissory note to the OWRB. The resolution also ratifies and
confirms existing agreements between the City and the OPWA and authorizes execution of
documents.
RECOMMENDATION:
Staff recommends City Council approval of Resolution No. 2011-11 approving action taken by
the OPWA authorizing issuance, sale and delivery of its Series 2011 Clean Water SRF Promissory
Note to the OWRB, authorizing execution of documents and containing other provisions related
thereto.
Staff recommends OPWA Trustee approval of Resolution No. 2011-03 authorizing a Clean Water
SRF loan from the OWRB in the principal amount of $3,115,000; approving the issuance of a Series
2011 Clean Water SRF Promissory Note to the OWRB in the principal amount of $3,115,000;
authorizing execution of all documents; and containing other provisions relating thereto.
ATTACHMENTS:
City Resolution No. 2011 -]1