ITEM TITLE:
Consider and take action with respect to a resolution of the Lawton Water Authority (the “Borrower”) agreeing to file application the Oklahoma Water Resources Board (the “Board”) for financial assistance through Financial Assistant Program (FAP) loan program, with the loan proceeds being for the purpose of financing certain water system improvements (Alternate Water Supply Projects); approving and authorizing a Financial Assistant Program (FAP) loan from the Oklahoma Water Resources Board in the total aggregate principal amount of not to exceed $50 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 $50 million;, secured by a pledge of revenues and authorizing its execution; approving and authorizing the execution of a loan agreement for Financing Assistant program (FAP) loan; 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 December 9, 2014, the City Council approved a contract for a feasibility study for development of an Alternative Water Supply study and report. The Alternate Water supply method identified to supplement water availability during drought conditions was identified as ground wells from the Arbuckle Timbers Aquifer. The consultant design engineer has completed the design Groundwater Supply Well Installation Project PU2301On March 28,2023 the City Council received a condition update on the Alternate Water Supply. A plan was presented for the construction of Groundwater Supply Well Installation, Conveyance System and Treatment Plant upgrades. Approval and authorization to advertise drilling up to 7 test hole and 4 production wells as need to obtain the minimum 5MGD supply was given by City Council on April 11,2023. The funding for was approved thru the 2019 Propel CIP and will be used to repay the financing of the Alternate Water Supply System. The proposal was to spend $50 Million on the construction of well houses , conveyance system and treatment process to obtain the minimum 5MGD additional water supply. The resolution will authorize the filing of programmatic applications for alternate water supply for Financial Assistant Program (FAP) from Oklahoma Water Resources Board (OWRB) and authorize the execution of the loan agreement for note or notes in one or more series with the total aggregate principal amount of not to exceed $50 Million.
EXHIBIT: Resolution No. 2023-____
KEY ISSUES: Does the Lawton Water Authority wish to enter into a note or notes in one or more series to finance Alternate Water Supply Thru FAP from OWRB to be paid back using the 2019 Propel CIP Propel sales tax proceeds?
FUNDING SOURCE: 2014-10 Water Reuse Feasibility Study Project Account (094-0097-000-00-03321106), 2019 CIP Propel, Lawton/Fort Sill Water Resiliency Funds from Oklahoma Commerce Department.
STAFF RECOMMENDED COUNCIL ACTION: Adopt Resolution No. 2023-___