Municipal Authority

M3A MINUTES Sand Springs Municipal Authority Rescheduled Regular Meeting June 22, 2020 - Following City Council Case Community Center Gymnasium 1050 West Wekiwa Road Sand Springs, OK 74063 www.sandspringsok.org MEMBERS PRESENT: Chairman Jim Spoon (2-0) Vice Chairman Patty Dixon (2-0) Trustee Phil Nollan (2-0) Trustee Mike Burdge (2-0) Trustee Nancy Riley (2-0) Trustee Beau Wilson (2-0) Brian Jackson (2-0) ALSO PRESENT: Interim City Manager Daniel Bradley City Attorney David Weatherford Secretary Janice L. Almy MEMBERS ABSENT: None The Sand Springs Municipal Authority met in rescheduled regular session on June 22, 2020, in the Gymnasium of the Case Community Center pursuant to the rescheduled meeting notice filed with the City Clerk’s office and posted at 2:00 p.m., on May 19, 2020, at the front entrance of the Sand Springs Municipal Building, 100 E. Broadway, Sand Springs, Oklahoma 74063, and the agenda filed with the City Clerk’s office and posted at 3:00 p.m., on June 18, 2020, at the front entrance of the Sand Springs Municipal Building, 100 E. Broadway, Sand Springs, Oklahoma 74063. 1. Call to Order Chairman Spoon called the meeting to order at the noted time of 9:25 p.m. 2. Roll Call Chairman Spoon called for an individual roll call with members replying in the following manner: Trustee Burdge, here; Trustee Jackson, here; Vice Chairman Dixon, here; Chairman Spoon, here; Trustee Riley, here; Trustee Wilson, here; Trustee Nollan, here.  MUNICIPAL AUTHORITY MINUTES JUNE 22, 2020 PAGE 2 3. Consent Agenda (A-G) Chairman Spoon informed Trustees that all matters listed under Consent Agenda to be considered by Trustees are to be routine and will be enacted by one motion. Chairman Spoon noted that questions or clarification on any Consent Agenda items may be addressed prior to taking action. Chairman Spoon requested if Trustees had questions or needed clarification on any Consent Agenda items or whether any items needed to be considered separately. There being none, Chairman Spoon called for a motion regarding Consent Agenda Items No. 3A-3G. A motion was made by Trustee Burdge and seconded by Trustee Wilson to approve the Consent Agenda Items No. 3A-3G: A) The minutes of the May 18, 2020, rescheduled regular Municipal Authority meeting. B) Fiscal Year 2021 insurance plan renewals with Oklahoma Municipal Assurance Group (OMAG) for Liability and Property coverage. C) Workers’ Compensation Plan for employees provided through Oklahoma Municipal Assurance Group (OMAG); premium for Fiscal Year 2021 is $474,491 with an interest credit of $47,867 for a balance due of $426,624. D) An agreement with The Metropolitan Environmental Trust (The M.e.t.) in the amount of $34,382, for administering and operating the Sand Springs Recycling Program for Fiscal Year 2020-2021. E) 1) Submission of grant agreement to Federal Aviation Administration (FAA) in the amount of $30,000, available through the Coronavirus Aid, Relief, and Economic Security (CARES) Act to use for purchase of Aviation Fuel for Resale as it to relates the Sand Springs-Pogue Airport. 2) A supplemental appropriation in the Municipal Authority Airport Fund for an increase to the Intergovernmental Revenues line item in the amount of $30,000; and an increase to the Ending Unrestricted Net Assets in the amount of $30,000. F) An agreement for Fiscal Year 2021 with Tetra Tech, Inc. in the amount of $312,600, with the Sand Springs Municipal Authority share of $187,560 (60%) for Engineering Services as it relates to the Skiatook Raw Water Conveyance System. G) Year End Budget Adjustments in the MA Stormwater Utility Fund, MA Water Utility Fund, MA Wastewater Utility Fund, MA Solid Waste Utility Fund and the MA Airport Fund.  MUNICIPAL AUTHORITY MINUTES JUNE 22, 2020 PAGE 3 MA Stormwater Utility Fund Increase: Expenditures-Loss on Assets $ 458 Expenditures-Depreciation $ 610 Decrease: Ending Unrestricted Net Assets $ 1,068 MA Water Utility Fund Increase: Expenditures-Administrative Expense $ 500 Expenditures-Depreciation $100,000 Transfers Out-Airport Const Fund $ 25,000 Expenditures-Water Treatment $ 17,100 Decrease: Ending Unrestricted Net Assets $142,600 MA Wastewater Utility Fund Increase: Expenditures-Loss on Assets $ 1,100 Expenditures-Administrative Fees $ 2,500 Expenditures-Depreciation $ 2,150 Decrease: Ending Unrestricted Net Assets $ 5,750 MA Solid Waste Utility Fund Increase: Expenditures-Loss on Assets $ 45,000 Decrease: Ending Unrestricted Net Assets $ 45,000 MA Airport Fund Increase: Expenditures-Bad Debt Expense $ 2,500 Expenditures-Depreciation $ 1,470 Expenditures-Airport $ 1,625 Decrease: Ending Unrestricted Net Assets $ 5,595 Chairman Spoon called for the vote recorded as follows: Trustee Nollan, aye; Trustee Wilson, aye; Trustee Riley, aye; Chairman Spoon, aye; Vice Chairman Dixon, aye; Trustee Jackson, aye; Trustee Burdge, aye. The motion passed 7-0-0. 4. Resolution No. M20-13 – Sand Springs Utility System Revenue Bonds, Refunding Series 2020 Chairman Spoon stated Resolution No. 20-36 - Sand Springs Utility System Revenue Bonds, Refunding Series 2020, was presented and approved by the City Council.  MUNICIPAL AUTHORITY MINUTES JUNE 22, 2020 PAGE 4 Chairman Spoon requested Trustees’ approval of Resolution No. M20-13, a resolution authorizing the issuance of not to exceed $26,000,000.00 Sand Springs Municipal Authority Utility System Revenue Bonds, Refunding Series 2020; waiving competitive bidding on said bonds and authorizing the sale of the bonds at a discount; authorizing a purchase contract, a fifth supplemental bond indenture, sales tax agreement, and authorizing such other documents and agreements as may be necessary or required; and containing other provisions relating thereto. A motion was made by Vice Chairman Dixon and seconded by Trustee Wilson that the requested adoption of Resolution No. M20-13, a resolution authorizing the issuance of not to exceed $26,000,000.00 Sand Springs Municipal Authority Utility System Revenue Bonds, Refunding Series 2020; waiving competitive bidding on said bonds and authorizing the sale of the bonds at a discount; authorizing a purchase contract, a fifth supplemental bond indenture, sales tax agreement, and authorizing such other documents and agreements as may be necessary or required; and containing other provisions relating thereto, as presented, be approved. Chairman Spoon called for the vote recorded as follows: Trustee Burdge, aye; Trustee Jackson, aye; Vice Chairman Dixon, aye; Chairman Spoon, aye; Trustee Riley, aye; Trustee Wilson, aye; Trustee Nollan, aye. The motion passed 7-0-0. 5. Canyons at Blackjack Ridge – Golf Management Services A) Parks Director Jeff Edwards requested Trustees’ approval of a contract for Fiscal Year 2021 with Talley Golf, Inc., in the amount of $40,000 for Golf Management Services as it relates to the Canyons at Blackjack Ridge golf course. Parks Director Jeff Edwards informed Trustees that after review of the submitted request for proposals through the Park Advisory Board and Public Works Advisory Committee, Talley Golf brought to staff’s attention a clerical error made by Talley Golf in the final submittal of the proposal. An inaccurate document was submitted in Tally Golf’s original proposal. Talley Golf has requested a change to the contract amount from $40,000 annual base pay to $45,000 annual base pay. Staff provided Tally Golf’s request to the Finance and Development Committee on Wednesday, June 17, 2020; the Finance and Development Committee recommended approving the change to the contract amount from $40,000 annual base pay to $45,000 annual base pay.  MUNICIPAL AUTHORITY MINUTES JUNE 22, 2020 PAGE 5 A motion was made by Trustee Burdge and seconded by Trustee Jackson that the requested approval of a contract for Fiscal Year 2021 with Talley Golf, Inc., in the amount of $45,000 for Golf Management Services as it relates to the Canyons at Blackjack Ridge golf course, as presented, be approved. Chairman Spoon called for the vote recorded as follows: Trustee Nollan, aye; Trustee Wilson, aye; Trustee Riley, aye; Chairman Spoon, aye; Vice Chairman Dixon, aye; Trustee Jackson, aye; Trustee Burdge, aye. The motion passed 7-0-0. B) Parks Director Jeff Edwards requested Trustees’ approval of a supplemental appropriation in the Fiscal Year 2021 Municipal Authority Golf Course Fund for an increase of $40,000 to the Golf Pro expense line item; and a decrease of $40,000 to the Ending Unrestricted Net Assets line item. A motion was made by Trustee Burdge and seconded by Trustee Wilson that the requested approval of a supplemental appropriation in the Fiscal Year 2021 Municipal Authority Golf Course Fund for an increase of $40,000 to the Golf Pro expense line item; and a decrease of $40,000 to the Ending Unrestricted Net Assets line item, as presented, be approved. Chairman Spoon called for the vote recorded as follows: Trustee Burdge, aye; Trustee Jackson, aye; Vice Chairman Dixon, aye; Chairman Spoon, aye; Trustee Riley, aye; Trustee Wilson, aye; Trustee Nollan, aye. The motion passed 7-0-0. 6. Board/Committee Appointments (A) A) Sand Springs/Sapulpa Joint Board Chairman Spoon informed Trustees that the Sand Springs/Sapulpa Joint Board is comprised of the Chairmen and Vice Chairmen and/or their designee of the Sand Springs Municipal Authority and the Sapulpa Municipal Authority. 1. A motion was made by Chairman Spoon and seconded by Trustee Nollan that the Chairman’s designee be the City Manager of the City of Sand Springs to serve on the Sand Springs/Sapulpa Joint Board for a one-year term to May 2021.  MUNICIPAL AUTHORITY MINUTES JUNE 22, 2020 PAGE 6 Chairman Spoon called for the vote recorded as follows: Trustee Nollan, aye; Trustee Wilson, aye; Trustee Riley, aye; Chairman Spoon, aye; Vice Chairman Dixon, aye; Trustee Jackson, aye; Trustee Burdge, aye. The motion passed 7-0-0. 2. A motion was made by Chairman Spoon and seconded by Trustee Burdge that the Vice Chairman’s designee be the Public Works Director of the City of Sand Springs to serve on the Sand Springs/Sapulpa Joint Board for a one-year term to May 2021. Chairman Spoon called for the vote recorded as follows: Trustee Burdge, aye; Trustee Jackson, aye; Vice Chairman Dixon, aye; Chairman Spoon, aye; Trustee Riley, aye; Trustee Wilson, aye; Trustee Nollan, aye. The motion passed 7-0-0. 7. Financial Reports The regular monthly Financial Reports for all funds were provided to Trustees for their review and information. This item was for informational purposes only. 8. Correspondence (A) The following correspondence was provided to Trustees for their review and information: A) Regular monthly bills. 9. Adjournment The meeting adjourned at the noted time of 9:35 p.m. _______________________________ Janice L. Almy, Secretary  M3B Agenda Item #______ Consent/Regular CITY OF SAND SPRINGS COUNCIL/AUTHORITY STAFF REPORT MEETING DATE: __July 27, 2020 SUBJECT: SAND SPRINGS AGREEMENT WITH WASTE MANAGEMENT OF OKLAHOMA- DISPOSAL OF UNCOMPACTED SOLID WASTE STAFF RECOMMENDATION: That the Sand Springs Municipal Authority approve and enter into the proposed agreement with Waste Management of Oklahoma for a term of 5 years, effective August 1, 2020 and continue until July 31, 2025 (the “Term”). This Agreement may be renewed in one (1) year increments up to an additional (3) years if mutually agreed to in writing each year by both parties. See Exhibit A of the Agreement for disposal price set by Waste Management of Oklahoma. BACKGROUND AND HISTORY: Since July 1, 2014, 100% of Sand Springs (compacted) household and business solid waste has been disposed of by incineration under a contract with Covanta. Larger & incombustible (uncompacted) materials are placed in Waste Management’s Landfill under current agreement. On June 30, 2020 the Sand Springs Municipal Authority’s current 3-year contract with Waste Management expires. Price quotes were requested from Landfills within a 20-mile radius of Sand Springs. Waste Management of Oklahoma’s disposal fee for Uncompacted Solid Waste (delivered by Roll-Off Truck) is $24.41/ton, American Environmental Landfill offered a disposal fee of $22/ton (this price is only applicable if Sand Springs disposes of both compacted & un-compacted waste at AEL). AEL is choosing to opt out of any bids due to the fact that Sand Springs would not be disposing of both (compacted & uncompacted) waste. AEL’s final offer would be $7.50/yard. After reviewing quotes and taking into consideration that the majority of loads hauled are 20 and 30 yard roll-offs, it was determined that Waste Management is the best option. (See attached cost comparison). This item was reviewed by the Public Works Advisory Committee on June 16, 2020. BUDGETARY IMPACT: No impact. This item is already included in the budget. COMPILED BY: Robby Wilson, Solid Waste Supervisor ATTACHMENT(S): AEL’S Offer WM Disposal Agreement Cost Comparison  2020 COST COMPARISON 692 tons actually sent to WM in FY19 (Un-compacted) 272 loads actually sent to WM in FY19(Un-compacted) As of 5/31/20 Current (Compacted) waste sent to Covanta is 1,135 loads at 8,677.10 tons. UNCOMPACTED COST COMPARISON Quote Price Total Waste Management Uncompacted $24.41/ton $16,891.71 American Uncompacted $7.50/yard Note: This assumes using only Environmental This is the price for all 10yd containers, which would Landfill Customers with No still be more expensive than Contract. $20,400 WM. COMPACTED AND UNCOMPACTED COST COMPARISON Compacted Uncompacted Tons Total Covanta $11.68/ton N/A 8,677.10 $101,348.52 WM N/A $24.41/ton 692 $16,891.72 Sand Springs current average annual disposal fee under contracts with WM & $118,240.24 Covanta. Tons Total AEL Compacted $22/ton 8,677.10 $190,896.2 AEL Uncompacted $22/ton 692 $15,224 This contract would increase annual disposal fees over $85,000 $206,120.2  M3C Agenda Item #___________ CITY OF SAND SPRINGS COUNCIL/AUTHORITY STAFF REPORT MEETING DATE: July 27, 2020 SUBJECT: Resolution No’s 21-10 and M21-02 Sales Tax Agreement Renewals STAFF RECOMMENDATION: Approve Resolution Numbers 21-10 and M21-02, approving the annual renewal of existing sales tax agreements between the City and SSMA that are required for bond financing. BACKGROUND AND HISTORY: As a part of the existing bond financing that has been used by the Sand Springs Municipal Authority (Revenue Bonds for the Wastewater Plant, Public Works Facility and other Public Works Improvements, and Revenue bonds for Public Safety), the City and the Municipal Authority entered into the five attached Sales Tax Agreements that provide additional security for the payment of the bond, basically pledging City sales tax if needed to repay the debt. The agreements require annual renewal and the approval of the joint resolution simply renews those existing agreements. BUDGETARY IMPACT: None. COMPILED BY: Kelly Lamberson PRESENTED BY: Kelly Lamberson ATTACHMENTS: (1) proposed resolution; (2) Sales Tax Agreement Dated October 1, 2013; (3) Sales Tax Agreement Dated November 1, 2012; (4) Sales Tax Agreement Dated December 1, 2009; (5) Sales Tax Agreement Dated December 1, 2015; and (6) Sales Tax Agreement Dated March 1, 2016.  RESOLUTION NO. 21-10 and M21-02 A RESOLUTION RENEWING, RATIFYING AND REAFFIRMING, FOR FISCAL YEAR 2020-21, THE “SALES TAX AGREEMENTS” BETWEEN THE CITY OF SAND SPRINGS AND THE SAND SPRINGS MUNICIPAL AUTHORITY. WHEREAS, The City Council of the City of Sand Springs has previously approved sales tax agreements between the City and the Sand Springs Municipal Authority wherein the City agreed to make payments to the Authority in amounts sufficient to pay when due all principal and interest on the Authority’s Utility System Revenue Promissory Notes including but not limited to the Utility Systems Revenue Bonds Series 2012, the Utility System Revenue Notes Refunding Series 2013; various notes referenced in the 2009 Sales Tax Agreement dated December 1, 2009; as well as the Capital Improvement Revenue Bonds 2015, and the Capital Improvement Revenue Bonds 2016. WHEREAS, annual renewal of the agreements is necessary and appropriate for the current fiscal year as a routine annual renewal, and is in the best interest of the residents of the City of Sand Springs and the rate payers of the municipal authority. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAND SPRINGS AND BY THE TRUSTEES OF THE SAND SPRINGS MUNCIPAL AUTHORITY: SECTION 1. The Sales Tax Agreement dated October 1, 2013, the Sales Tax Agreement dated November 1, 2012, and the Sales Tax Agreement dated December 1, 2009, the Sales Tax Agreement dated December 1, 2015, the Sales Tax Agreement dated March 1, 2016, and all other current Sales Tax Agreements between the City and the Authority are hereby renewed, ratified and affirmed by the City of Sand Springs and Sand Springs Municipal Authority for the current fiscal year. PASSED AND APPROVED by the City Council of the City of Sand Springs this 27th day of July, 2020. __________________________ James O. Spoon, Mayor of the City of Sand Springs and Chairman of the Sand Springs Municipal Authority ATTEST: ______________________________ Janice Almy, City Clerk ______________________________ David L. Weatherford, City Attorney M3D  M4 RESOLUTION NO. M21-01 A RESOLUTION ACCEPTING THE RESPONSIBILITIES AS DESIGNATED TO THE SAND SPRINGS MUNICIPAL AUTHORITY (THE “AUTHORITY”) BY THE CITY OF SAND SPRINGS, OKLAHOMA (THE “CITY”) PURSUANT TO THE WEBCO INDUSTRIES (RADER CENTER) ECONOMIC DEVELOPMENT PROJECT PLAN ADOPTED BY THE CITY; APPROVING AND AUTHORIZING THE EXECUTION OF AN ECONOMIC DEVELOPMENT AGREEMENT BY AND AMONG THE AUTHORITY, THE CITY, AND WEBCO INDUSTRIES, INC.; APPROVING AND AUTHORIZING THE EXECUTION OF A SECURITY AGREEMENT BY AND BETWEEN THE AUTHORITY AND THE CITY PERTAINING TO THE TAX INCREMENT REVENUES; APPROVING THE USE OF ASSISTANCE IN DEVELOPMENT FINANCING; AND CONTAINING OTHER PROVISIONS RELATING THERETO. WHEREAS, the Sand Springs Municipal Authority (the “Authority”) has been created by a Trust Indenture dated as of March 14, 1966, for the use and benefit of the City of Sand Springs, Oklahoma (the “City”), under authority of and pursuant to the provisions of Title 60, Oklahoma Statutes 2001, Sections 176 to 180.4, inclusive, as amended and supplemented (the “Act”), the Oklahoma Trust Act and other applicable statutes of the State of Oklahoma; and WHEREAS, the City has adopted and approved the Webco Industries (Rader Center) Economic Development Project Plan dated March 24, 2020, as amended by Amendment #1 to the Project Plan dated June 26, 2020 (collectively, the “Project Plan”) by Ordinance No. 1350 dated May 18, 2020, as amended by Ordinance No. 1353 dated July 27, 2020 (collectively, the “TIF Ordinance”), all pursuant to the Oklahoma Local Development Act, Title 62, Oklahoma Statutes, Section 850, et seq., as amended (the “Local Development Act”); and WHEREAS, the City, by virtue of the TIF Ordinance, has created Increment District No. 3, City of Sand Springs (the “Increment District”), pursuant to the Local Development Act; and WHEREAS, the Authority, the City, and Webco Industries, Inc. (or its designee, referred to as the “Company”), desire to enter into an Economic Development Agreement for the purpose of providing a framework for the completion of certain infrastructure improvements contemplated under the Project Plan and the payment of costs associated therewith; and WHEREAS, the Company has agreed to complete the infrastructure improvements contemplated under the Project Plan, and the Authority and the City have agreed to provide assistance in development financing (as authorized by Section 853(14)(o) of the Local Development Act), including specifically the reimbursement of authorized Project Costs plus accrued interest thereon, all as more fully set forth in the Economic Development Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE TRUSTEES OF THE SAND SPRINGS MUNICIPAL AUTHORITY:  SECTION 1. ACCEPTANCE OF RESPONSIBILITIES. The Authority hereby accepts its responsibilities and authority to implement the Project Plan as set forth in the TIF Ordinance. SECTION 2. EXECUTION OF ECONOMIC DEVELOPMENT AGREEMENT. The Economic Development Agreement by and among the Authority, the City, and the Company (the “Economic Development 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 Authority, and to do all other lawful things to carry out the terms and conditions of said Economic Development Agreement. SECTION 3. EXECUTION OF SECURITY AGREEMENT. The Security Agreement by and between the Authority and the City (the “Security Agreement”) pertaining to the transfer of the Ad Valorem Increment Revenues and the Sales Tax Increment Revenues (as each are defined in the TIF Ordinance) to the Authority in furtherance of the implementation of the Project Plan, 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 Authority, and to do all other lawful things to carry out the terms and conditions of said Security Agreement. SECTION 4. ASSISTANCE IN DEVELOPMENT FINANCING. The use of assistance in development financing, as contemplated in the Economic Development Agreement and as authorized by Section 853(14)(o) of the Local Development Act, is hereby approved. Furthermore, the Authority hereby authorizes the indebtedness created by virtue of the Project Costs Reimbursement Obligation (as defined in the Economic Development Agreement); provided however, said indebtedness shall be payable solely from the Tax Increment Revenue as set forth in the Economic Development Agreement and the Security Agreement. SECTION 5. EXECUTION OF NECESSARY DOCUMENTS. The Chairman or Vice Chairman and Secretary or Assistant Secretary of the Authority are hereby further authorized on behalf of the Authority 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 transactions 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 Authority, the execution and delivery of such documents being conclusive as to the approval of any terms contained therein. [Remainder of Page Intentionally Left Blank] 2  PASSED AND APPROVED THIS 27TH DAY OF JULY , 2020. SAND SPRINGS MUNICIPAL AUTHORITY (SEAL) By: _________________________________ Chairman ATTEST: By: ______________________________ Secretary 3  CERTIFICATE OF AUTHORITY ACTION I, the undersigned, hereby certify that I am the duly and acting Secretary of the Sand Springs Municipal Authority. I further certify that the Trustees of the Sand Springs Municipal Authority held a Regular Meeting following the City Council Regular Meeting at 6:00 o’clock P.M., on July 27, 2020, after due notice was given in full compliance with the Oklahoma Open Meeting Act. I further certify that attached hereto is a full and complete copy of a Resolution that was passed and approved by said Trustees at said meeting as the same appears in the official records of my office and that said Resolution is currently in effect and has not been repealed or amended as of this date. I further certify that below is listed those Trustees present and absent at said meeting; those making and seconding the motion that said Resolution be passed and approved, and those voting for and against such motion: PRESENT: ABSENT: MOTION MADE BY: MOTION SECONDED BY: AYE: NAY: WITNESS MY HAND THIS 27TH DAY OF JULY, 2020. SAND SPRINGS MUNICIPAL AUTHORITY ________________________________________ (SEAL) Secretary of Authority 4 M6