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RESOLUTION R-1718-106: A RESOLUTION OF THE CITY OF NORMAN, OKLAHOMA (THE "CITY") APPROVING ACTION TAKEN BY THE NORMAN UTILITIES AUTHORITY (THE "AUTHORITY") AUTHORIZING ISSUANCE, SALE AND DELIVERY OF A PROMISSORY NOTE OF THE AUTHORITY TO THE OKLAHOMA WATER RESOURCES BOARD; RATIFYING AND CONFIRMING AN AMENDED LEASE AGREEMENT WHEREBY THE CITY LEASES ITS WATER AND SANITARY SEWER SYSTEMS TO THE AUTHORITY; AND CONTAINING OTHER PROVISIONS RELATED THERETO.
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BACKGROUND: On June 24, 2014, the City Council, acting as Trustees of the Norman Utilities Authority (NUA), adopted Resolution 1314-146 which directed the pursuit of "Portfolio 14" as the preferred course for providing the City's long-term water supply needs as discussed in the 2060 Strategic Water Supply Plan (SWSP). Among the intermediate water supply sources in the SWSP was the addition of ground water wells and distribution lines to add an estimated two million gallons per day (2 MG/D) of additional water supply.
The NUA's adopted budget for fiscal year 2017-2018 included anticipated debt financing of approximately $10.8 million for the implementation of the interim ground water supply solution.
The Oklahoma Water Resources Board (OWRB), acting as the agent of the U.S. Environmental Protection Agency (EPA) and the Oklahoma legislature, has administered grant and loan programs to provide financing alternatives to cities and municipal utilities for water and wastewater capital needs. The NUA has participated in the OWRB's loan programs for many years and has benefitted from the lower interest rates and favorable terms in the programs.
DISCUSSION: The attached resolutions, if approved, would direct the NUA Chair and NUA staff to proceed with a loan from the OWRB's Financial Assistance Program, in an amount not to exceed $12,000,000 to provide funding for the water well and distribution line improvements contemplated in the FYE 2018 budget. Resolution 1718-105 is a Resolution of the Norman Utiliti...
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