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Home My WebLink About2012.02.07_OPWA AgendaPUBLIC NOTICE OF THE MEETING OF THE OWASSO PUBLIC WORKS AUTHORITY'.,C /��r� %? TYPE OF MEETING: Regular`s DATE: February 7, 2012 TIME: 6:30 p.m. PLACE: Council Chambers, Old Central Building 109 N. Birch A Notice of the meeting and agenda fi d in the office of the ity Jerk and post t City Hall at 6:00 p.m. on Friday, February 3, 201 - uliann M. Stevens, D uty City Clerk AGENDA 1. Call to Order Chairman Doug Bonebrake 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 January 17, 2012 Regular Meeting Attachment # 3 -A B. Approval of Claims Attachment # 3 -B 4. Consideration and appropriate action relating to items removed from the Consent Agenda 5. Consideration and appropriate action relating to Resolution No. 2012 -01 agreeing to file application with the Oklahoma Water Resources Board (the "OWRB ") for financial assistance through the state loan program, with the loan proceeds being for the purpose of refinancing certain indebtedness of the Owasso Public Works Authority, Tulsa County, Oklahoma; approving professional services agreements; and containing other provisions related thereto Ms. Bishop Attachment #5 Staff recommends approval of Resolution No. 2012 -01 Owasso Public Works Authority February 7, 2012 Page 2 Consideration and appropriate action relating to Resolution No. 2012 -02 authorizing a loan from the Oklahoma Water Resources Board in the total aggregate principal amount of not to exceed $1,095,000; approving the issuance of a promissory note in the total aggregate principal amount of not to exceed $1,095,000, 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 2012 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 #6 Staff recommends approval of Resolution No. 2012 -02. 7. Report from OPWA Manager 8. Report from OPWA Attorney 9. New Business (New Business is any item of business which could not have been foreseen at the time of posting of the agenda) 10. Adjournment OWASSO PUBLIC WORKS AUTHORITY MINUTES OF REGULAR MEETING Tuesday, January 17, 2012 The Owasso Public Works Authority met in regular session on Tuesday, January 17, 2012 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, January 13, 2012. ITEM 1 CALL TO ORDER Chairman Bonebrake called the meeting to order at 8:10 p.m. ITEM 2 ROLL CALL PRESENT ABSENT Doug Bonebrake, Chairman None Bryan Stovall, Vice Chairman Steve Cataudella, Trustee Charlie Brown, Trustee Patrick Ross, 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 January 3, 2012 Regular Meeting and January 10, 2012 Special Meeting B. Approval of Claims C. Acknowledge Receipt of the Monthly Budget Status Report Mr. Cataudella moved, seconded by Mr. Stovall, to approve items A, B, and C of the Consent Agenda with claims totaling $344,713.68. Also included for review were payroll payment reports for pay period 12/31 / 1 1. YEA: Stovall, Ross, Brown, Cataudella, Bonebrake NAY: None Motion carried 5 -0 ITEM 4 CONSIDERATION AND APPROPRIATE ACTION RELATING TO ITEMS REMOVED FROM THE CONSENT AGENDA No action required ITEM 5 REPORT FROM OPWA MANAGER No report Owasso Public Works Authority January 17, 2012 ITEM 6 REPORT FROM OPWA ATTORNEY No report ITEM 7 NEW BUSINESS None ITEM 8 ADJOURNMENT Mr. Ross moved, seconded by Mr. Cataudella, to adjourn the meeting. YEA: Ross, Bonebrake, Cataudella, Brown, Stovall NAY: None Motion carried 5 -0 and the meeting was adjourned at 8:11 p.m. Doug Bonebrake, Chairman Ashley Hickman, Minute Clerk Claims List 2/7/2011 Budget Unit Title Vendor Name Payable Description Payment Amouni OPWA ADMINISTRATION AT &T LONG DISTANCE LONG DISTANCE SERVICE 53.69 CITY OF OWASSO ADMINISTRATIVE OVERHEAD 12,500.00 JPMORGAN CHASE BANK KOHL'S- SUPPLIES 49.99 AT &T CONSOLIDATED PHONE BILL 316.53 JPMORGAN CHASE BANK OFFICE DEPOT - SUPPLIES 51.13 JPMORGAN CHASE BANK OFFICE DEPOT - SUPPLIES 34.19 JPMORGAN CHASE BANK OFFICE DEPOT - SUPPLIES 29.85 JPMORGAN CHASE BANK OFFICE DEPOT - CREDIT -34.19 AEP /PSO ELECTRIC USE 1,404.30 UNIFIRST HOLDINGS LP UNIFORM RENTAL 44.50 UNITED STATES CELLULAR CORPORATION CELL BILL 59.57 TERMINIX PEST CONTROL 2.00 WAL -MART CORP SAMS CLUB 77150903608 OPERATING SUPPLIES 71.92 A PLUS SERVICE INC HEATING UNIT REPAIRS 523.00 JPMORGAN CHASE BANK BED BATH - SUPPLIES 79.98 UNIFIRST HOLDINGS LP UNIFORM RENTAL 44.50 UNIFIRST HOLDINGS LP UNIFORM RENTAL 40.00 JPMORGAN CHASE BANK LOWES- SUPPLIES 35.08 JPMORGAN CHASE BANK KELLYMOORE- SUPPLIES 100.28 JPMORGAN CHASE BANK ANCHOR PAINT - SUPPLIES 3.24 JPMORGAN CHASE BANK HOME DEPOT - SUPPLIES 27.22 JPMORGAN CHASE BANK KELLYMOORE- SUPPLIES 32.30 JPMORGAN CHASE BANK LOWES- SUPPLIES 8.36 JPMORGAN CHASE BANK LOCKE SUPPLY - LIGHTS 179.00 JPMORGAN CHASE BANK AMERICAN PUB WRKS -DUES 149.00 JPMORGAN CHASE BANK BRAUMS -SUGAR 6.78 JPMORGAN CHASE BANK ALL BATTERY- BATTERIES 12.59 JPMORGAN CHASE BANK SAMS -TOWEL DISPENSER 21.88 JPMORGAN CHASE BANK TRB- TRAINING MATERIAL 120.00 JPMORGAN CHASE BANK ITE- TRAINING MATERIAL 154.00 JPMORGAN CHASE BANK LOWES -LIGHT BULBS 31.92 JPMORGAN CHASE BANK PCA- TRAINING MATERIAL 103.28 STANDLEY SYSTEMS, LLC COPIER MAINTENANCE AGREEM 79.81 TOTAL OPWA ADMINISTRATION 16,335.70 UTILITY BILLING JPMORGAN CHASE BANK LYMAN PRINTING -DATE STMPS 78.00 TODD C. KIMBALL METER READER 649.80 KENNETH ARDELL FARMER METER READER 283.95 KENNETH ARDELL FARMER METER READER 222.30 KATHLEEN A BALSIGER METER READER 146.25 TYRONE EUGENE DINKINS METER READER 231.50 KATHLEEN A BALSIGER METER READER 253.80 CHRISTOPHER JAMES GARCIA METER READER 249.30 TYRONE EUGENE DINKINS METER READER 583.35 TECHNICAL PROGRAMMING SERVICES INC BILLING SERVICES 1,249.70 Page 1 Claims List 2/7/2011 Budget Unit Title I Vendor Name Payable Description jPayrnent Amouni UTILITY BILLING... ITECHNICAL PROGRAMMING SERVICES INC JBILLING SERVICES 1,416.70 TOTAL UTILITY BILLING 5,364.65 WATER JPMORGAN CHASE BANK HOME DEPOT - SUPPLIES 90.72 JPMORGAN CHASE BANK LOWES -MAIL BOX 34.97 JPMORGAN CHASE BANK HOME DEPOT- TAPE/WIRE 45.66 JPMORGAN CHASE BANK HOME DEPOT -ELECT WIRE 16.20 AEP /PSO ELECTRIC USE 679.33 JPMORGAN CHASE BANK OFFICE DEPOT - SUPPLIES 152.50 JPMORGAN CHASE BANK ATWOODS- STRAPS 25.98 UNIFIRST HOLDINGS LP UNIFORM RENTAL 50.95 JPMORGAN CHASE BANK WATER PROD -PVC PIPE 33.20 JPMORGAN CHASE BANK WATER PROD -PVC PACK JOINT 213.07 JPMORGAN CHASE BANK WATER PROD -10" CLAMP 226.23 JPMORGAN CHASE BANK WATER PROD -3/4 POLY 168.00 JPMORGAN CHASE BANK WATER PROD -10" CLAMP 179.50 JPMORGAN CHASE BANK WATER PROD - CLAMPS 241.12 JPMORGAN CHASE BANK WATER PROD - SUPPLIES 668.15 JPMORGAN CHASE BANK YELLOWHOUSE -FUEL 93.75 JPMORGAN CHASE BANK LOWES- MATERIALS 107.23 JPMORGAN CHASE BANK LOWES- MATERIALS 90.13 JPMORGAN CHASE BANK LOWES - CONCRETE BLOCKS 11.56 SPRINT SPRINT CARDS 79.98 JPMORGAN CHASE BANK WATER PROD -FLOW CHAMBERS 1,100.00 JPMORGAN CHASE BANK CAVENDERS -BOOTS 99.82 UNIFIRST HOLDINGS LP UNIFORM RENTAL 50.95 JPMORGAN CHASE BANK MOUSER ELEC- RETURN -14.00 UNIFIRST HOLDINGS LP UNIFORM RENTAL 50.95 TOMMY E. KITCHEN WATER MODEL REVIEW 3,711.40 USA MOBILITY WIRELESS, INC PAGER USE 87.50 JPMORGAN CHASE BANK LOCKE SUPPLY -LEAK REPAIR 325.12 JPMORGAN CHASE BANK LOWES -TILE 613.01 JPMORGAN CHASE BANK BUMPER TO BUMPER - BATTERY 10.50 JPMORGAN CHASE BANK ALL BATTERY- BATTERIES 99.98 JPMORGAN CHASE BANK EQUIPMENT ONE - RENTAL 59.00 JPMORGAN CHASE BANK ARMOR PPE -PPE FOR WATER 41.57 TOTAL WATER 9,444.03 US HWY 169 WATER TANK LUCKINBILL, INC JUS HWY 169 WATER TANK INT 71,125.00 TOTAL US HWY 169 WATER TANK 71,125.00 WASTEWATER TREATMENT JPMORGAN CHASE BANK GRAINGER- WRENCHES 114.00 JPMORGAN CHASE BANK WASTE MGMT- SLUDGE REMOVAL 21230.52 JPMORGAN CHASE BANK ARLO STEEL - SUPPLIES 571.80 Page 2 Claims List 2/7/2011 Budget Unit Title Vendor Name Payable Description Payment Amouni WASTEWATER TREATMENT.. JPMORGAN CHASE BANK MAXWELL SUPPLY -CAULK 26.24 JPMORGAN CHASE BANK ATWOODS- APPAREL 99.99 SCHUERMANN ENTERPRISES, INC DAMAGED AIRFLOW METERS 6,869.72 AT &T LONG DISTANCE LONG DISTANCE SERVICE 11.84 JPMORGAN CHASE BANK NCL- SUPPLIES /GLASSWARE 663.56 JPMORGAN CHASE BANK LOWES- SUPPLIES 81.05 JPMORGAN CHASE BANK OFFICE EVERYTHING -TONER 93.15 AEP /PSO ELECTRIC USE 21,192.07 JPMORGAN CHASE BANK FASTENAL- GRINDER WHEELS 47.67 JPMORGAN CHASE BANK OFFICE DEPOT - SUPPLIES 99.67 JPMORGAN CHASE BANK OFFICE DEPOT - SUPPLIES 5.39 JPMORGAN CHASE BANK HOME DEPOT - SEALANT 43.89 JPMORGAN CHASE BANK OFFICE DEPOT - SUPPLIES 188.97 AT &T CONSOLIDATED PHONE BILL 132.70 JPMORGAN CHASE BANK QTRIP- MERCHANDISE 4.32 UNIFIRST HOLDINGS LP UNIFORM RENTAL 63.66 UNIFIRST HOLDINGS LP UNIFORM RENTAL 58.76 ZEE MEDICAL, INC FIRST AID SUPPLIES 50.15 UNIFIRST HOLDINGS LP UNIFORM RENTAL 145.46 JPMORGAN CHASE BANK EQUIP ONE - POWERWSH REPAIR 47.37 JPMORGAN CHASE BANK ATWOODS -TOOLS 93.03 JPMORGAN CHASE BANK GRAINGER -BELTS 521.98 JPMORGAN CHASE BANK GRAINGER -TOOLS 51.74 JPMORGAN CHASE BANK GRAINGER -HOSE HANGER 15.57 JPMORGAN CHASE BANK GRAINGER -TOOLS 181.51 JPMORGAN CHASE BANK ARMOR PPE -PPE FOR WWTP 41.57 JPMORGAN CHASE BANK OREILLY - BATTERY 36.78 JPMORGAN CHASE BANK IBT INC -MOTOR 285.61 JPMORGAN CHASE BANK ALL BATTERY - BATTERIES 35.78 JPMORGAN CHASE BANK LOWES -CHAIN 8.46 JPMORGAN CHASE BANK KOMLINE- LINERS 6,603.79 JPMORGAN CHASE BANK IBT- GEARBOX 1,816.52 JPMORGAN CHASE BANK GRAINGER- SUPPLIES 58.92 JPMORGAN CHASE BANK GRAINGER- SUPPLIES 2,258.56 USA MOBILITY WIRELESS, INC PAGER USE 26.10 JPMORGAN CHASE BANK LOCKE SUPPLY -WIRE 246.60 TERMINIX PEST CONTROL 55.00 TOTAL WASTEWATER TREATMENT 45,179.47 WASTEWATER COLLECTION: JPMORGAN CHASE BANK TRAINING CTR- SAFETY BOOK 359.00 USA MOBILITY WIRELESS, INC PAGER USE 34.80 JPMORGAN CHASE BANK WALMART - WASTEBASKET 17.62 JPMORGAN CHASE BANK ALL BATTERY - BATTERY 50.00 JPMORGAN CHASE BANK ARMOR PPE -PPE FOR WWC 41.57 JPMORGAN CHASE BANK OREILLY- RECEIVER HITCH 63.97 Page 3 Claims List 2/7/2011 Budget Unit Title Vendor Name Payable Description Payment Amounl WASTEWATER COLLECTION; SPRINT SPRINT CARDS 79.98 UNIFIRST HOLDINGS LP UNIFORM RENTAL 32.43 COMMERCIAL POWER SOLUTIONS, LLC GENERATOR REPAIRS 605.77 WORKHEALTH SOLUTIONS, LLC HEPATITIS VACCINES 130.00 JPMORGAN CHASE BANK BROWN FARMS -SOD 8.75 JPMORGAN CHASE BANK WATER PROD - SUPPLIES 605.39 JPMORGAN CHASE BANK WATER PROD - MANHOLE RING 208.00 JPMORGAN CHASE BANK WATER PROD - MARKING FLAGS 110.00 JPMORGAN CHASE BANK WATER PROD - MANHOLE RISER 376.00 UNIFIRST HOLDINGS LP UNIFORM RENTAL 32.43 UNIFIRST HOLDINGS LP UNIFORM RENTAL 54.43 JPMORGAN CHASE BANK USP STORE- PACK/POSTAGE 40.00 JPMORGAN CHASE BANK WAYEST -LEL SENSOR 258.80 JPMORGAN CHASE BANK LOWES- SUPPLIES 49.93 JPMORGAN CHASE BANK HOME DEPOT - BATTERIES 56.82 JPMORGAN CHASE BANK GRINER SCHMITZ- SUPPLIES 173.45 AT &T CONSOLIDATED PHONE BILL 45.44 AEP /PSO ELECTRIC USE 5,038.56 JPMORGAN CHASE BANK OFFICE DEPOT - SUPPLIES 152.50 JPMORGAN CHASE BANK ATWOODS- RIVETS 8.28 JPMORGAN CHASE BANK LOWES- PROPANE PACKS 12.56 TOTAL WASTEWATER COLLECTIONS 8,646.48 REFUSE COLLECTIONS JPMORGAN CHASE BANK FRONTIER INT'L -WATER PUMP 134.81 JPMORGAN CHASE BANK WASTE MGMT- RECYCLE R /O'S 4,495.08 JPMORGAN CHASE BANK STEVE'S WHOLESALE -PANS 89.95 JPMORGAN CHASE BANK FLUID SPECIALTIES -HOSES 133.96 JPMORGAN CHASE BANK BUMPER TO BUMPER - ADAPTER 18.99 JPMORGAN CHASE BANK BUMPER TO BUMPER -LIGHT 10.48 AT &T CONSOLIDATED PHONE BILL 22.12 JPMORGAN CHASE BANK FRONTIER INT'L -CLAMP /HOSE 10.99 UNIFIRST HOLDINGS LP UNIFORM RENTAL 46.96 UNIFIRST HOLDINGS LP UNIFORM RENTAL 42.96 JPMORGAN CHASE BANK ALSUMA- REPAIRS 2,116.62 UNITED STATES CELLULAR CORPORATION CELL BILL 59.57 LENOX WRECKER SERVICE INC TOWING 180.00 UNIFIRST HOLDINGS LP UNIFORM RENTAL 44.10 SPRINT SPRINT CARDS 39.99 JPMORGAN CHASE BANK ARMOR PPE -PPE FOR REFUSE 41.59 JPMORGAN CHASE BANK WELDON PARTS -MUD FLAPS 95.48 JPMORGAN CHASE BANK FLEETPRIDE -BRASS UNION 5.33 USA MOBILITY WIRELESS, INC PAGER USE 59.16 JPMORGAN CHASE BANK WASTE MGMT- REFUSE TPING 7,248.84 JPMORGAN CHASE BANK WASTE MGMT- REFUSE TPING 7,635.39 JPMORGAN CHASE BANK ALSUMA TRUCK -WATER PUMP 314.50 Page 4 Claims List 2/7/2011 Budget Unit Title Vendor Name Payable Description Payment Amounl REFUSE COLLECTIONS... JPMORGAN CHASE BANK FASTENAL -BOLTS 8.81 JPMORGAN CHASE BANK UNITED ENGINES -PARTS 839.55 TOTAL REFUSE COLLECTIONS 23,695.23 RECYCLE CENTER JPMORGAN CHASE BANK WALMART- TELEPHONE 68.88 UNIFIRST HOLDINGS LP UNIFORM RENTAL 11.20 OOLOGAH FUEL COMPANY PROPANE FOR HEAT @ RECYCL 175.20 NATIONAL WASTE & DISPOSAL, INC. GLASS ROLL OFF 200.00 LAMBERT BROWN SCALES INC SCALE REPAIR @ RECYCLE 178.50 UNIFIRST HOLDINGS LP UNIFORM RENTAL 11.20 UNIFIRST HOLDINGS LP UNIFORM RENTAL 11.20 JPMORGAN CHASE BANK BUMPER TO BUMPER -BELTS 41.82 JPMORGAN CHASE BANK LOWES -PARTS 3.03 AT &T CONSOLIDATED PHONE BILL 22.11 AEP IPSO ELECTRIC USE 58.52 JPMORGAN CHASE BANK BUMPER TO BUMPER -BELTS 41.82 JPMORGAN CHASE BANK WASTE MGMT- RECYCLE R /O'S 4,043.54 JPMORGAN CHASE BANK WASTE MGMT- RECYCLE TPING 1,586.60 JPMORGAN CHASE BANK WASTE MGMT- RECYCLE TPING 1,539.55 TOTAL RECYCLE CENTER 7,993.17 OPWA DEBT SERVICE OKLAHOMA WATER RESOURCES BOARD ORF -01- 0002- CW /2001A 26,938.06 OKLAHOMA WATER RESOURCES BOARD ORF -02- 0017- CW /2002A 23,356.79 OKLAHOMA WATER RESOURCES BOARD ORF -99- 0008- CW/1999A 24,707.21 THE BANK OF NEW YORK TRUST CO 618733/06 NOTE 36,001.67 THE BANK OF NEW YORK TRUST CO 618713/FAP010003 -L/01C 6,387.49 THE BANK OF NEW YORK TRUST CO 618708/FAP040006 -L/04 21,298.93 THE BANK OF NEW YORK TRUST CO 212423/FAP100002 -L/10 7,096.29 THE BANK OF NEW YORK TRUST CO 618710/ORF01002 -L /01 B 11,788.80 THE BANK OF NEW YORK TRUST CO 618716/ORF020017 -L /02B 10,322.04 THE BANK OF NEW YORK TRUST CO 618719/ORF99008 -L/99B 3,574.23 TOTAL OPWA DEBT SERVICE 171,471.51 FUND GRAND TOTAL 359,255.2 OPWA STF DEBT SERVICE THE BANK OF NEW YORK TRUST CO 628924/07 NOTE 138,272.39 RCB TRUST SERVICES SERIES 2005 NOTE 114,122.38 RCB TRUST SERVICES SERIES 2008 NOTE 99,716.67 TOTAL OPWA STF DEBT SERVICE 352,111.44 FUND GRAND TOTAL 352,111.4 OPWA ST SUB - DEBT SERV ISF SHOPS INVESTORS, L.P. I DEVELOPMENT AGREEMENT 27,152.35 Page 5 Claims List 2/7/2011 Budget Unit Title Vendor Name Payable Description IPayment Amouni TOTAL OPWA ST SUB - DEBT SERV 27,152.35 FUND GRAND TOTAL 27,152.3 OPWA GRAND TOTAL $738,519.03 Page 6 Department OPWA Administration Utility Billing Water Wastewater Wastewater Collection Santa Fe Lift Station Refuse Recycle Center OWASSO PUBLIC WORKS AUTHORITY PAYROLL PAYMENT REPORT PAY PERIOD ENDING DATE 1/14/2012 Payroll Expenses Total Expenses 8,348.78 4,403.28 10,408.61 11,636.57 5,771.64 1,800.00 10,030.44 1,169.60 12,539.39 7,508.66 18,100.47 19,800.73 10,150.02 2,003.04 16,555.18 2,057.73 FUND TOTAL 53,568.92 88,715.22 OWASSO PUBLIC WORKS AUTHORITY PAYROLL PAYMENT REPORT PAY PERIOD ENDING DATE 1/2812012 Department Payroll Expenses Total Expenses OPWA Administration 8,323.78 12,512.23 Utility Billing 4,601.40 7,750.09 Water 10,550.77 18,266.77 Wastewater 10,535.98 17,619.28 Wastewater Collection 6,372.82 10,858.19 Santa Fe Lift Station 1,900.00 2,114.32 Refuse 9,598.50 16,044.05 Recycle Center 1,054.40 1,929.54 FUND TOTAL 52,937.65 87,094.47 The City Wit out Limits. TO: The Honorable Chair and Trustees Owasso Public Works Authority FROM: Sherry Bishop Assistant City Manager, Administrative Services SUBJECT: OPWA Resolution No. 2012 -01 - OWRB Loan Refinancing DATE: February 3, 2011 BACKGROUND: The Oklahoma Water Resources Board (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. For the past twenty years, all of the OPWA's major water and wastewater projects have been financed by the OWRB. Due to the low interest rates available at this time, financial advisors have been analyzing all debt for any opportunity to refinance that would provide a savings. Most of the debt either cannot be paid off early or is not callable at this time. The Series 2002B Promissory Note to the OWRB is callable at 102% on October 1, 2012. The note was originally issued in 2002 for $1,550,000 with a final maturity of October 2022 and has a principal balance remaining of $1,010,000. Based on current interest rates, refinancing the Series 2002B Promissory Note to OWRB will result in gross debt service (cash flow) savings of approximately $156,000. The new loan size (estimated at approximately $1,050,000) will be sufficient to pay all of the estimated $50,000 in transaction costs, fund the reserve fund, and pay the remaining $1,010,000 principal plus accrued interest on the 20028 Note. The final maturity of the new loan will be October 1, 2016 (shortening the 2002B note by 6 years). Approval of this refinancing would be similar to approval of other long -term debt in that it would require approval of resolutions by 2/3 of the City Council (4 yes votes) and approval by a majority of the OPWA Trustees. This approval would be different, however, in that the Council and Trustees will be asked to authorize the refinancing before the final amounts and interest rates are set for the OWRB bond issue. The OWRB will issue bonds in March for the proposed refinancing of approximately $23 million of debt by 11 different entities (one of which is the OPWA). The various needs of the different entities and the current bond market will affect the structure of the bond issue by the OWRB. The bonds will be issued with a mix of premiums and discounts to achieve the best effective interest rates. In order to allow the OWRB the maximum flexibility they need to create the best financing, the authorization by the OPWA must include a principal amount and an interest rate that allows for the premiums and discounts that may be utilized by the OWRB when these bonds are sold in March. Those amounts to be authorized in the OPWA resolution are much greater than what will be the actual final payment amount and the effective interest rate to the OPWA. The OPWA resolution included in the agenda authorizes a note in a principal amount not to exceed $1,095,000 and a net interest cost not to exceed 4.5 %. These amounts are to allow the OWRB to use premiums and discounts to get the best effective interest rates and to give us the best savings. PROPOSED ACTION: OPWA Resolution No. 2012 -01 authorizes an application to the OWRB for the refinancing of the 2002B Series Promissory Note and approves the professional services agreements with bond counsel, tax counsel and financial advisors. OPWA Resolution No. 2012 -02 authorizes a loan from the OWRB and approves the issuance of a Promissory Note not to exceed $1,095,000 for the purpose of refinancing the Series 2002B Promissory Note and provides that the Net Interest Cost on the 2012 Note shall not exceed 4.50% per annum and including other related provisions. City Resolution No. 2012 -01 approves the action taken by the OPWA authorizing the issuance of a Promissory Note to the OWRB and including other related provisions. RECOMMENDATION: Staff recommends approval of OPWA Resolution No. 2012 -01 authorizing an application to the OWRB for the refinancing of the 2002B Series Promissory Note and including other related provisions. ATTACHMENTS: OPWA Resolution No. 2012 -01 THE OWASSO PUBLIC WORKS AUTHORITY RESOLUTION NO. 2012-01 A RESOLUTION AGREEING TO FILE APPLICATION WITH THE OKLAHOMA WATER RESOURCES BOARD (THE "OWRB ") FOR FINANCIAL ASSISTANCE THROUGH THE STATE LOAN PROGRAM, WITH THE LOAN PROCEEDS BEING FOR THE PURPOSE OF REFINANCING CERTAIN INDEBTEDNESS OF THE OWASSO PUBLIC WORKS AUTHORITY, TULSA COUNTY, OKLAHOMA; APPROVING PROFESSIONAL SERVICES AGREEMENTS; AND CONTAINING OTHER PROVISIONS RELATED THERETO. WHEREAS, The Owasso Public Works Authority, Tulsa County, Oklahoma (the "Authority") has under consideration the refinancing of its Series 2002B Promissory Note to Oklahoma Water Resources Board dated December 30, 2002, in the original principal amount of $1,550,000 (the "Refinancing "); and WHEREAS, it is deemed desirable for the Authority to give preliminary authorization for the issuance of obligations for such purpose; and WHEREAS, the Oklahoma Water Resources Board has made monies available to qualified entities for the financing of certain qualifying projects; and WHEREAS, the Authority hereby agrees to file an application(s) with the Oklahoma Water Resources Board for financial assistance in the aggregate amount as will be sufficient to pay certain costs associated with the referenced Refinancing. BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE OWASSO PUBLIC WORKS AUTHORITY, TULSA COUNTY, OKLAHOMA: Section 1. Application. The Authority shall file an Application(s) with the Oklahoma Water Resources Board seeking financial assistance through the State Loan Program; and the Chairman or Vice Chairman and Secretary or Assistant Secretary of the Authority are hereby authorized to execute said Application(s) for and on behalf of the Authority. The Authority is further authorized to advance to the Oklahoma Water Resources Board the necessary application fees in connection with the referenced Application(s), if any. Section 2. Professional Services Agreements. The Authority is authorized to enter into legal services agreements with The Public Finance Law Group PLLC, as the Authority's Bond Counsel, and with Hawkins Delafield & Wood LLP, and the Authority's Special Tax Counsel, and a professional services agreement with Municipal Finance Services, Inc., as the Authority's Financial Advisor. Section 3. Other Matters. The Chairman or Vice Chairman and Secretary or Assistant Secretary of the Authority are hereby authorized and directed to do all other lawful things necessary to carry out the terms and conditions of this Resolution. [Remainder of Page Left Blank Intentionally] PASSED AND APPROVED THIS 7TH DAY OF FEBRUARY, 2012. (SEAL) ATTEST: By Sherry Bishop, Secretary THE OWASSO PUBLIC WORKS AUTHORITY, TULSA COUNTY, OKLAHOMA Doug Bonebrake, Chairman Np_ The e city Wi' aut Limits. TO: The Honorable Chair and Trustees Owasso Public Works Authority FROM: Sherry Bishop Assistant City Manager, Administrative Services SUBJECT: OPWA Resolution No. 2012 -02 - OWRB Loan Refinancing DATE: February 3, 2011 BACKGROUND: The Oklahoma Water Resources Board (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. For the past twenty years, all of the OPWA's major water and wastewater projects have been financed by the OWRB. Due to the low interest rates available at this time, financial advisors have been analyzing all debt for any opportunity to refinance that would provide a savings. Most of the debt either cannot be paid off early or is not callable at this time. The Series 2002B Promissory Note to the OWRB is callable at 102% on October 1, 2012. The note was originally issued in 2002 for $1,550,000 with a final maturity of October 2022 and has a principal balance remaining of $1,010,000. Based on current interest rates, refinancing the Series 2002B Promissory Note to OWRB will result in gross debt service (cash flow) savings of approximately $156,000. The new loan size (estimated at approximately $1,050,000) will be sufficient to pay all of the estimated $50,000 in transaction costs, fund the reserve fund, and pay the remaining $1,010,000 principal plus accrued interest on the 2002B Note. The final maturity of the new loan will be October 1, 2016 (shortening the 2002B note by 6 years). Approval of this refinancing would be similar to approval of other long -term debt in that it would require approval of resolutions by 2/3 of the City Council (4 yes votes) and approval by a majority of the OPWA Trustees. This approval would be different, however, in that the Council and Trustees will be asked to authorize the refinancing before the final amounts and interest rates are set for the OWRB bond issue. The OWRB will issue bonds in March for the proposed refinancing of approximately $23 million of debt by 11 different entities (one of which is the OPWA). The various needs of the different entities and the current bond market will affect the structure of the bond issue by the OWRB. The bonds will be issued with a mix of premiums and discounts to achieve the best effective interest rates. In order to allow the OWRB the maximum flexibility they need to create the best financing, the authorization by the OPWA must include a principal amount and an interest rate that allows for the premiums and discounts that may be utilized by the OWRB when these bonds are sold in March. Those amounts to be authorized in the OPWA resolution are much greater than what will be the actual final payment amount and the effective interest rate to the OPWA. The OPWA resolution included in the agenda authorizes a note in a principal amount not to exceed $1,095,000 and a net interest cost not to exceed 4.5 %. These amounts are to allow the OWRB to use premiums and discounts to get the best effective interest rates and to give us the best savings. PROPOSED ACTION: OPWA Resolution No. 2012 -01 authorizes an application to the OWRB for the refinancing of the 2002B Series Promissory Note and approves the professional services agreements with bond counsel, tax counsel and financial advisors. OPWA Resolution No. 2012 -02 authorizes a loan from the OWRB and approves the issuance of a Promissory Note not to exceed $1,095,000 for the purpose of refinancing the Series 2002B Promissory Note and provides that the Net Interest Cost on the 2012 Note shall not exceed 4.50% per annum and including other related provisions. City Resolution No. 2012 -01 approves the action taken by the OPWA authorizing the issuance of a Promissory Note to the OWRB and including other related provisions. RECOMMENDATION: Staff recommends approval of OPWA Resolution No. 2012 -02 authorizing a loan from the OWRB and approving the issuance of a Promissory Note for the purpose of refinancing the Series 20028 Promissory Note and including other related provisions. ATTACHMENTS: OPWA Resolution No. 2012 -02 THE OWASSO PUBLIC WORKS AUTHORITY RESOLUTION NO. 2012-02 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 $1,095,000; APPROVING THE ISSUANCE OF A PROMISSORY NOTE IN THE TOTAL AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $1,095,000, 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 2012 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. WHEREAS, The Owasso Public Works Authority, Tulsa County, Oklahoma (the "Borrower "), was organized under Title 60, Oklahoma Statutes 2011, Sections 176- 180.4, as amended, for the purpose of furthering the public functions of the City of Owasso, Oklahoma (the "City"); and WHEREAS, the Borrower heretofore issued its Series 2002B Promissory Note to Oklahoma Water Resources Board in the original principal amount of $1,550,000 (the "2002B Note "); and WHEREAS, the 2002B Note provided long term financing for 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 2002B Note and to evidence such loan by the issuance of the Borrower's Series 2012 Promissory Note to Oklahoma Water Resources Board in the original principal amount of not to exceed $1,095,000 (the "2012 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: Section 1. Issuance of Note. The Borrower is hereby authorized to accept said loan and issue its 2012 Note payable to the Board. The principal amount of the 2012 Note shall not exceed $1,095,000, and the Net Interest Cost on the 2012 Note shall not exceed 4.50% per annum, and the maturity date shall be not later than October 1, 2016. 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 2012 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 2012 Note and to do any and all lawful things to effect said loan and secure said loan from the Board. Section 2. Designation 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 2012 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 2012 Supplemental Note Indenture. The Series 2012 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 2012 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 2012 Supplemental Note Indenture. The General Bond Indenture as heretofore supplemented and amended and as supplemented pursuant to the terms of the Series 2012 Supplemental Note Indenture shall be referred to herein collectively as the "Indenture ". Section 5. Covenants of Borrower. Until payment in full of the 2012 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 2012 Note is paid. 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 2012 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 2012 Note and other funds of the Borrower in connection with the issuance of the 2012 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] APPROVED AND ADOPTED THIS 7' DAY OF FEBRUARY, 2012. THE OWASSO PUBLIC WORKS AUTHORITY (SEAL) Doug Bonebrake, Chairman ATTEST: Sherry Bishop, Secretary EXHIBIT "A" Fees and Expenses Paid at Closing Oklahoma Water Resources Board Issuance Costs The Public Finance Law Group PLLC Legal Fee and Reimbursement of Expenses Hawkins Delafield & Wood LLP Special Tax Counsel Legal Fee Municipal Finance Services, Inc. Financial Advisory Fee and Reimbursement of Expenses The Bank of New York Mellon Trust Company, N.A. Acceptance Fee * Not to exceed amount; to be established pursuant to Closing Order of Borrower $15,000.00* $20,000.00 $7,500.00 $10,000.00 $500.00