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HomeMy WebLinkAboutResolution - 2021-R0302 - Second Amendment to Lake Meredith Supply Agreement with CRMWA 8.24.21Resolution No. 2021-R0302 Item No. 7.16 August 24, 2021 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock, a Second Amendment to the Contract by and between the City of Lubbock and the Canadian River Municipal Water Authority for the purpose of providing a portion of the municipal water supply through the operation and maintenance of the Sanford Dam and Lake Meredith. Said Agreement is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council on the 24th day of _ _ August — ! , 2021. DANIEL M. POPE, MAYOR V:1 Rebecca Garza, City APPROVED AS TO CONTENT: Jesica McEacherri, Assistant City —Manager APPROVED AS TO FORM: Second Amendment- CRMWA 08.09.2021 Resolution No. 2021-R0302 SECOND AMENDMENT TO THE CONTRACT BETWEEN THE CANADIAN RIVER MUNICIPAL WATER AUTHORITY AND THE CITY OF LUBBOCK, TEXAS This Second Amendment is made as of the 24th of August , 2021 (the "Effective Date"), by and between the CANADIAN RIVER MUNICIPAL WATER AUTHORITY, a conservation and reclamation district duly created and existing under the laws of the State of Texas (the "Authority") and the CITY OF LUBBOCK, a home rule city and municipal corporation in the State of Texas acting under authority of its city charter and the laws of the State of Texas (the "City"). RECITALS: 1. The Authority and the City entered into a contract dated January 9, 1961, as previously supplemented and amended (known as the "Meredith Supply Agreement"), under which the Authority would provide all or part of the City's municipal water supply through the operation and maintenance of the Sanford Dam and Lake Meredith (the "Canadian River Project"), based on the City's status as a "Member City" of the Authority and under terms substantially identical in form and substance to the contemporaneous agreements for municipal water supply entered into by the Authority with each of its other Member Cities. 2. The Authority and the City later entered into an agreement dated February 16,1999, for the prepayment of the obligations to the United States of America incurred in connection with the construction of the Canadian River Project (the "Prepayment Agreement'), which is expressly formulated as a supplement to the Meredith Supply Agreement, and under terms substantially identical in form and substance to the contemporaneous Prepayment Agreements entered into by the Authority with each of its other Member Cities. 3. Under its terms, the Meredith Supply Agreement remains effective until the federal construction repayment obligation for the Canadian River Project is paid in full, with the City (like all the Authority's Member Cities) thereafter having a vested right to renew its municipal water supply agreement with the Authority for the life of the Canadian River Project. 4. By and through the Prepayment Agreements and the underlying financing for which they provide, the federal construction repayment obligation for the Canadian River Project has been satisfied in full by the Authority and its Member Cities, and the Authority continues to operate and maintain the Canadian River Project, which provides a source of municipal water supply as agreed under the Meredith Supply Agreement. 5. The Authority and the City mutually desire to affirm, restate, and extend the term of the Meredith Supply Agreement, as provided for therein, and thereby to facilitate the long-term municipal water supply of the City, in connection with the parties' other existing contractual arrangements. Page 1 of 3 NOW THEREFORE, in consideration of the premises and mutual covenants stated in this Second Amendment, and for other good and valuable consideration, the City and the Authority hereby further amend the Meredith Supply Agreement as follows: 1. Article 19 of the Meredith Supply Agreement, captioned "Term of Contract," is hereby amended by deleting the second sentence of that article and replacing it with the following text, to renew and extend the term of that agreement for the life of the Canadian River Project: Following the full payment of the Authority's construction repayment obligation for the Canadian River Project, and based on the City's then vested right to renew this contract, the City and the Authority agree that the term of this contract is renewed and extended, beginning on the Effective Date of the Second Amendment to this contract and continuing to the date that the Project is terminated or abandoned by the Authority. The Project shall not be deemed terminated or abandoned by the Authority unless the Board has finally terminated, with no intention to resume, operation or maintenance of the Project or any part thereof, and has notified the Member Cities that the Authority has no further financial, maintenance, operational or other material obligations with respect to the Project or with respect to any Revenue Bonds. Termination of Project If the Project is terminated or abandoned, the City shall continue to pay timely to the Authority the City's portion of the Project Operation and Maintenance costs incurred by the Authority or obligated to be paid by the Authority to meet its obligations and to otherwise fulfill its obligations and liabilities with respect to the Project, including without limitation, any obligations under any Revenue Bonds. The Project may not be terminated unless written notice is given to each Member City thirty (30) days prior to a meeting of the Board of the Authority when the issue of termination of the Project is on the agenda, and all of the Members of the Board who are present and voting vote to terminate the Project. 2. Except as expressly amended by this Second Amendment, the Meredith Supply Agreement, except for any of its provisions which have been completely satisfied or superseded by other agreements executed by the parties, remains valid and effective, and this Second Amendment shall not be construed to amend or affect the validity of the Prepayment Agreement or any other existing contracts by and between the Authority and the City. 3. Notwithstanding the Effective Date stated above, this Second Amendment shall not become effective until a similar amendment agreement has been executed by the Authority and each of the other Member Cities, to amend their respective Meredith Supply Agreements. IN WITNESS WHEREOF, the parties hereto, acting under authority of their respective governing bodies, and with the prior approval of a duly authorized representative of the United Page 2 of 3 States, have caused this Second Amendment to be duly executed in several counterparts, each of which shall constitute an original, all as of the day and year first above written. ATTEST: Title: AT EST: Rebecca Garza, City Secretary VED AS TO CONTENT: Aubrey A. Spe .E., D By: ---- Title: CANADIAN RIVER MUNICIPAL WATER AUTHORITY Name: Title: CITY OF LUBBOCK: "IV DANIEL M. POPE, MAYOR of Water Utilities Page 3 of 3