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HomeMy WebLinkAboutResolution - 2005-R0027 - Authorization Of Increase In Amount Of Groundwater Project Construction Costs - 01_13_2005Resolution No. 2005-R002i January 13, 2005 Item No. 50 A RESOLUTION BY THE CITY OF LUBBOCK, TEXAS, AUTHORIZING AN INCREASE IN THE AMOUNT OF PROJECT CONSTRUCTION COSTS IN THE CITY'S CONJUNCTIVE USE GROUNDWATER SUPPLY AGREEMENT WITH THE CANADIAN RIVER MUNICIPAL WATER AUTHORITY WHEREAS, the City of Lubbock, Texas (the "City") has entered into an agreement with the Canadian River Municipal Water Authority (the "Authority") for the purchase and acquisition of Conjunctive Use Ground Water Supply; and WHEREAS, the Authority has entered similar agreements with each of the other cities that are members of the Authority; and WHEREAS, the Authority issued its $13,505,000 Canadian River Municipal Water Authority Contract Revenue Bonds, Series 1996 (Conjunctive Use Groundwater Project) by resolution dated July 10, 1996 (the "Series 1996 Bonds"); and WHEREAS, the Authority issued its $52,825,000 Canadian River Municipal Water Authority Contract Revenue and Refunding Bonds, Series 1999 (Conjunctive Use Groundwater Project) by resolution dated May 15, 1999 and amended and restated on July 10, 1999 (the "Series 1999 Bonds"); and WHEREAS, as a result of increased demand for water and additional needs associated with the Project, it is necessary to increase the amount of Project Construction Costs authorized in the Conjunctive Use Groundwater Agreements; and WHEREAS, in order to increase the amount of Project Construction Costs, all Member Cities must agree to the increase; and WHEREAS, the additional amount needed in Project Construction Costs, exclusive of Financing Costs, is $50,000,000; and WHEREAS, the additional amount needed in Financing Costs should not exceed $7,000,000; and WHEREAS, the City agrees that the amount should be increased; and BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS: SECTION 1. That the City agrees in the increase in the total amount of Project Construction Costs from $96,570,000 to $153,570,000 with the Project Construction Costs, exclusive of Financing Costs increased from $85,500,000 to $135,500,000. SECTION 2. That the Amendment No. 2 to the Conjunctive Use Groundwater Supply Agreement is hereby approved. SECTION 3. That the City Secretary be and is hereby authorized to deliver certified copies of this Resolution and minutes pertaining to its adoption and the Amendment to the Conjunctive Use Groundwater Supply Agreement to the Secretary of the Canadian River Municipal Water Authority in such number as may be requested for said Authority's records and proceedings. PASSED, APPROVED AND ENACTED this the 13th day of January , 20045 CITY OF LUBBO MAYOR ATTEST: QAS���, �, J2��� Rebecca Garza, City Secretary APPROVED,AS TO CONTENT: Chester Carthel Water Planning Engineer — xW dtu,� Lee Ann Dumbauld Chief Financial Officer AP ROVED AS TO FORM: I ( L (�D. e� Richard K. Casner First Assistant City Attorney a s/CityAtt/Richard/Res. Canadian RiverMunicipalWaterAuthority Resolution No. 2005-R0027 January 13, 2005 Item No. 50 AMENDMENT NO.2 TO AGREEMENT FOR THE PURCHASE AND ACQUISITION OF CONJUNCTIVE USE GROUNDWATER SUPPLY This Amendment No. 2 to the Agreement Between the Canadian River Municipal Water Authority and the City of Lubbock, Texas (the "Amendment"), entered into to be effective as of December 1, 2004, by and between the Canadian River Municipal Water Authority (the "Authority") and the City of Lubbock (the "City") amends that certain Agreement for the Purchase and Acquisition of Conjunctive Use Groundwater Supply (the "Agreement") entered into as of May 15, 1996, as amended, between the Authority and the City. Capitalized terms used in this Amendment and not otherwise defined shall have the same meanings as set forth in the Agreement. Pursuant to the Agreement, the Authority and the City, together with the other Member Cities have agreed to provide for the acquisition and financing of a Conjunctive Use Groundwater Supply Project. For and in consideration of the premises and the mutual covenants hereinafter contained, and subject to the conditions herein set forth, the Authority and the City hereby amend the Agreement as follows: ARTICLE ONE Section 2.30 of the Agreement is hereby amended by deleting the last sentence of that section and replacing it with the following sentence in order to increase the amount of Revenue Bonds that may be issued under the Agreement: Unless approved in writing by the City and each of the other Member Cities, Project Construction Costs may not exceed $153,570,000 (representing approximately $135,500,000 in project costs and $18,070,000 in Financing Costs). ARTICLE TWO This amendment is contingent upon all of the other Member Cities also executing a similar agreement to amend their respective Agreements for the Purchase and Acquisition of Conjunctive Groundwater Supply. ARTICLE THREE Save and except as amended by this Amendment, the Agreement and all provisions thereof shall remain in full force and effect in accordance with its terms. IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the dates above written. AUTHORITY: CANADIAN RIVER MUNICIPAL WATER AUTHORITY WE FF15 d, Z'). a ffl ATTEST: jamM4 [SEAL] 6 CITY OF LUBBOCK ATTEST: Rebecca Garza, City Secreta APPR VED TO CONTENT: Chester Carthel Water Planning Engineer Lee Ann Dumbauld Chief Financial Officer APPROVED AS TO FORM: L" C- L E � I ilnc e � ) Richard K. Casner First Assistant City Attorney as/CityAtt/Richard/AgrmtCanad ian RiverMunicipalWaterAuthodtyAmd2