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Consider and take action with respect to resolution No. 2025-____ of the Lawton Water Authority (the “Borrower”) authorizing to file applications with the Oklahoma Water Resources Board for financial assistance for the purpose of financing certain capital improvements to certain water system improvements including, but not limited to lake and dam repairs; approving and authorizing the issuance, sale and delivery of a promissory note or notes in one or more series of the Authority to the Oklahoma Water Resources Board in the total aggregate principal amount of not to exceed $39 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 $39 million, secured by a pledge of revenues and authorizing its execution; approving and authorizing the execution of a loan agreement for CWSRF 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.
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INITIATOR: John Ratliff, City Manager
STAFF INFORMATION SOURCE: John Andrew, City Attorney; Rebecca Johnson, Finance Director; Rusty Whisenhunt, Director of Public Utilities
BACKGROUND: During the months of May and June of 2015 the City of Lawton received unusually heavy rainfall. The heavy rainfall events caused extensive damages to several sections of the Ellsworth Spillway. CH2M Hill/Jacobs Engineering was contracted to investigate and design necessary repairs in order to restore the spillway to pre-damage functionality. On September 13th 2016, the City Council approved Amendment No. 5,6,7,8 and 10 with CH2M Hill/Jacobs Engineering for review of standard methods, hydraulic, geotechnical numerical analysis, seismic analysis to determine the maximum credible earthquake motion at the site, perform design of rehabilitation and completion of a Benefit Cost Analysis of the Ellsworth Spillway. Currently the design is at 100% complete and a positive Benefit Cost Analysis has been developed. The design has been permitted by OWRB for construction. On August 8th, City Council accepted funding agreements for the FEMA HHDFY22 Grant in the amount of $925,251, the Oklahoma State Competitive ARPA grant in the amount of $1,000,000, and the Oklahoma State Designated ARPA Grant in the amount of $10,000,000. Construction of the Ellsworth Spillway Project PU2312 project bid on December 10, 2024, with bids valid for 120 days. To accept the low bid of $26,481,500 (Phase I) and $19,928,500 (Phase II) the project must be awarded by April 9th, 2025.
Gondola Lake Dam is owned by the City of Lawton and is approximately 100 years old. Located downstream of Lake Lawtonka, there is no as-built information, maintenance records, or previous inspection records for this dam. The dam is used to create a small tilling pool just downstream of Lake Lawtonka. The dam overflow spillway has been damaged and requires rehabilitation. On June 27, 2023, City Council approved the Master Service Agreement with Jacobs Engineering Group, INC. Council approved Amendment No. 5 on February 13, 2024, to include work to develop a high-level condition summary of the dam, feasibility assessment for rehabilitation or replacing the existing dam at the same location, concept development for the recommended alternative and a cost estimate. The current estimated cost for construction is approximately $3,000,000. The City of Lawton received a $2,000,000. Oklahoma State Designated ARPA grant to fund the rehabilitation of Gondola Dam.
Lake Lawtonka dam is also currently in need of concrete repair to further sustain the integrity of the dam. The estimated cost of construction is approximately $1,200,000.
As Lake Lawtonka and Lake Ellsworth provide sources for Lawton’s drinking water as well as provide space for citizen recreation, it is imperative to furnish dam improvements to secure the safety of Lawton’s citizens and continue to provide water sources for all of Lawton and surrounding communities; $14,000,000 in grant funds ($10 million State Designated ARPA Grant, $1 million State Competitive ARPA Grant, $1 million High Hazard Dam FEMA Grant, $2 million OWRB ARPA Designated Projects Grant for Gondola) previously obtained for these projects are at risk of forfeit if these projects are not awarded and completed in a timely manner. A loan of $39,000,000 from the Oklahoma Water Resources Board is needed to fund these projects to continue improvements at the City’s lakes.
This project supports our citizens through providing transparency and trust as well as following our standards of a safe community, as put forth in the True North Culture Statement.
EXHIBIT: Resolution No. 2025-_____
KEY ISSUES: Does the Lawton Water Authority wish to approve and adopt Resolution No. 2025-___ to fund Dam Rehabilitation projects and prevent the loss of $14 million in grant funds?
FUNDING SOURCE: Water, Sanitary Sewer and Refuse System Revenues
STAFF RECOMMENDED COUNCIL ACTION: Adopt Resolution No. 2025-____