ITEM TITLE:
Consider and take action with respect to a resolution of the Lawton Water Authority (the “Borrower”) agreeing to file application with the Oklahoma Water Resources Board (the “Board”) for financial assistance through the Clean Water State Revolving fund loan program, with the loan proceeds being for the purpose of financing certain sewer system rehabilitation; approving and authorizing a Clean Water SRF loan from the Oklahoma Water Resources Board in the total aggregate principal amount of not to exceed $80 million (the Loan 1, FY24 $30 million, the Loan 2, FY25 $25 million, and the Loan 3, FY26 $25 million); approving the issuance of a promissory note or notes in one or more series in the total aggregate principal amount of not to exceed $80 million ,secured by a pledge of revenues from the 2019 Propel CIP ½ percent Water/Wastewater sales tax and other revenues and authorizing its execution; approving and authorizing the execution of a loan agreement for Clean Water SRF loans; designating a local trustee and approving and authorizing the execution of a trust agreement; approving and authorizing the execution of a security agreement; ratifying and confirming a lease agreement, as amended pertaining to certain water, sanitary sewer, and refuse systems; approving various covenants; approving and authorizing the establishment of a project costs disbursement account; and containing other provisions relating thereto.
INITIATOR: Rusty Whisenhunt, Director of Public Utilities
STAFF INFORMATION SOURCE: Tim Wilson, Acting City Attorney; Joe Dunham, Finance Director; Rusty Whisenhunt, Director of Public Utilities
BACKGROUND: On March 28, 2023 the City Council received a condition update on the Water and Wastewater System. A plan was presented for the rehabilitation of both the water system and sewer system. The plan outlined the use of the non-expiring ½ percent Water and Wastewater 2019 Propel CIP funds to repay the financing of the proposed rehabilitation The proposal was to spend $80 Million on water line replacement and $80 Million on sewer main line each over the next 8 years. The multiple loans will provide the Lawton Water Authority the potential opportunity to receive up to $1 Million Dollar debt forgiveness for each loan. The City Council directed staff to prepare necessary documents to obtain the loans to support the two Rehabilitation programs and issue RFQs to select multiple Engineering Firms to do the required design work to meet the 8-year schedule. On April 3, 2023, the RFQ were sent out to ten firms for Engineering Services with a submission date of May 2,2023 by 4pm. The resolution will authorize the filing of programmatic applications for sewer line improvements with Oklahoma Water Resources Board (OWRB) and authorize the execution of the loan agreement for multiple notes or notes in one or more series with a total aggregate principal amount of not to exceed $80 Million,
EXHIBIT: Resolution No. 2023-____ ,
KEY ISSUES: Does the Lawton Water Authority wish to enter into multiple notes or notes in one or more series to finance sewer system rehabilitation to pay be paid back over 30 years using the 2019 Propel CIP ½ percent Water/Wastewater sales tax proceeds?
FUNDING SOURCE: 2019 Propel CIP Water / Wastewater ½ percent sales tax proceeds as repayment method.
STAFF RECOMMENDED COUNCIL ACTION: Adopt Resolution No. 2023-___