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HomeMy WebLinkAboutResolution - 6342 - Authorize Increase In Project Costs - CRMWA - Conjunctive Use Groundwater Supply - 06_10_1999Resolution No. 6342 June 10. 1999 Item No. 80 RESOLUTION NO. 6342 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 a 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 Cities of Lubbock and O'Donnell paid their portion of the amount required from their own funds and did not participate in the Authority's bonds for the Conjunctive Use Groundwater Project (the "Project"), and WHEREAS, as a result of the time between the original estimates for the Project made at the time of issuance for the Series 1996 Bonds and additional needs associated with the Project, it is necessary to increase the amount of Project Construction Costs authorized in 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 $4,500,000 ; and WHEREAS, the City agrees that the amount may be increased, should it be necessary, when the bids are received; and WHEREAS, it may be beneficial to permit the Authority to restructure its outstanding Series 1996 Bonds and to replace the Bond Reserve Fund with a surety bond; and WHEREAS, if the Board of the Authority finds that it is advantageous to restructure its Series 1996 Bonds and replace the Bond Reserve Fund with a surety bond and all Member Cities agree, the City agrees to the restructuring of the Series 1996 Bonds and the substitution of the Bond Reserve Fund with a surety bond. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS: SECTION 1. That the City agrees the increase the total amount of Project Construction Costs from $92,500,000 to $96,570,000 with the Project Construction Costs, exclusive of Financing Costs increased from $62,000,000 to $66,500,000. SECTION 2. That the City agrees that the Authority may restructure its Series 1996 Bonds and use a surety bond to replace Bond Reserve Fund. SECTION 3. That the amendment to the Conjunctive Use Groundwater Supply Agreement is hereby approved. SECTION 4. 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 by the City Council this loth dayofJune , 1 >— 1 n � i. WINDY SITTOI , MAYOR ATTEST: City Secretary AS TO CONTENT: Betsy Bucy, Director of Finance APPROVED AS TO FORM: Anita Burgess, City A orney CRMWA Groundwater 991CRMWA Groundwater 2-lubbock resol re costs-trnp.wpd Resolution No. 6342 June 10. 1999 Item No. 80 AMENDMENT NO.1 TO AGREEMENT FOR THE PURCHASE AND ACQUISITION OF CONJUNCTIVE USE GROUNDWATER SUPPLY This Amendment No. 1 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 July 1, 1999, 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 Acquistion of Conjunctive Use Groundwater Supply (the "Agreement') entered into as of May 15, 1996 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 $96,570,000 (representing approximately $85,500,000 in project costs and $11,070,000 in Financing Costs). ARTICLE TWO Section 4.7 is amended to provide for the use of a surety bond in lieu of the Bond Reserve Fund by adding the following to the existing language in the section: Notwithstanding the requirements of this section set forth above, the Authority may provide a Surety Policy or Policies issued in amounts equal to all or part (as may be specified in the resolution authorizing any series of Parity Revenue Bonds) of the average annual principal and interest requirements of the Parity Revenue Bonds, in lieu of depositing cash into the Bond Reserve Fund; provided, however, that no such Surety Policy may be so substituted unless (i) the substitution of the Surety Policy will not cause any ratings then assigned to the Bonds by either Moody's Investors Service or Standard & Poor's Ratings Group to be lowered and (ii) the ordinance authorizing the substitution of the Surety Policy for all or part of the average annual principal and interest requirements of the Parity Revenue Bonds contains (A) a finding that such, substitution is cost effective and (B) a provision that the interest due on any repayment obligation of the Authority by reason of payments made under such policy does not exceed the highest lawful rate of interest which may be paid by the Authority at the time of the delivery of the Surety Policy. The Authority reserves the right to apply the proceeds of the Revenue Fund to payment of the subrogation obligation incurred by the Authority (including interest) to the issuer of the Surety Policy, the payment of which will result in the reinstatement of such Surety Policy, prior to making payments required to be made to the Bond Reserve Fund pursuant to the provisions of this Section to restore the balance in such fund to the average annual principal and interest requirements of the Parity Revenue Bonds. In the event a Surety Policy issued to satisfy all or part of the Authority's obligation with respect to the Bond Reserve Fund causes the amount then on deposit in the Bond Reserve Fund to exceed the average annual principal and interest requirements of all Parity Revenue Bonds, the Authority may transfer such excess amount to any fund or funds established for the payment of or security for the Parity Revenue Bonds (including any escrow established for the final payment of any such obligations pursuant to Article 717k, Vernon's Texas Civil Statutes) or use such excess amount for any lawful purpose now or hereafter provided by law. ARTICLE THREE 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 FOUR 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. CANADIAN RIVER MUNICIPAL WATER AUTHORITY ATTEST: By:z_��'z -hW'4:5-1ze CITY OF LUBBOCK, TEXAS By: "DYSIT�10N, MAYOR A ST: I&WIA Ka Darnell, City Secretary [SEAL] APPROVED AS TO CONTENT: Betsy Bucy, Director of Finance APPROVED S TO FORM: Anita Burgess, City Attorney OWWA Om.-WAW 9%CAMWA Gm-dwaw 3�1 to MW& NmHmp.wpd CERTIFICATE FOR RESOLUTION THE STATE OF TEXAS § COUNTIES OF HUTCHINSON, POTTER, TERRY, § DAWSON, HOCKLEY, LUBBOCK, LYNN, GRAY, § AND HALE § § CANADIAN RI�ER MUNICIPAL WATER AUTHORITY § I, the undersigned General Manager and Secretary -Treasurer of the Canadian River Municipal Water Authority, hereby certify as follows: 1. The Board of Directors of said Authority convened in a REGULAR MEETING on the 14th day of July, 1999, at the regular designated meeting place, CRMWA Headquarters Building, Sanford Dam, Sanford Texas, and the roll was called of the duly constituted officers and members of said Board, to -wit: Amarillo: George Sell Director Hal Miner Director Borger:. Tom Edmonds Director Billy Willard Director Brownfield: L. J. Richardson Director Lamesa: Dale Newberry Director Ray Renner Director Levelland: Carl Shamburger Director RosaBeth Kauffman Director Lubbock: James Collins Director Robert Rodgers Director O'Donnell: E. R. Moore Director Pampa: Jerry E. Carlson Director Bill Hallerberg Director Plainview: Norman Wright Director Glenn Bickel Director Slaton: Steve Tucker Director Tahoka: Lary Hagood Director and all of said persons were present, except the following: L.J. Richardson, Carl Shambumer , thus constituting a quorum. Whereupon, among other business the following was transacted at said Meeting: a written RESOLUTION OF THE BOARD OF DIRECTORS OF THE CANADIAN RIVER MUNICIPAL WATER AUTHORITY AUTHORIZING THE APPROVAL AND EXECUTION OF AMENDMENT NO. 1 TO AGREEMENTS FOR THE PURCHASE AND ACQUISITION OF CONJUNCTIVE USE GROUNDWATER SUPPLY WITH EACH MEMBER CITY was duly introduced for the consideration of said Board and read in full. It was then duly moved and seconded that said Resolution be passed; and, after due discussion, said motion, carrying with it the passage of said Resolution, prevailed and carried by the following vote: AYES: 16 NOES: 0 ABSTENTIONS: 0 2. That a true, full, and correct copy of the aforesaid Resolution passed at the Meeting described in the above and foregoing paragraph is attached to and follows this Certificate; that said Resolution has been duly recorded in said Board's minutes of said Meeting; that the above and foregoing paragraph is a true, full, and correct excerpt from said Board's minutes of said Meeting pertaining to the passage of said Resolution; that the persons named in the above and foregoing paragraph are the duly chosen, qualified, and acting officers and members of said Board as indicated therein; that each of the officers and members of said Board was duly and sufficiently notified officially and personally, in advance, of the time, place, and purpose of the aforesaid Meeting, and that said Resolution would be introduced and considered for passage at said Meeting, and each of said officers and members consented, in advance, to the holding of said Meeting for such purpose; and that said Meeting was open to the public, and public notice of the time, place, and purpose of said Meeting was given as required by law, including particularly Chapter 551, Texas Government Code. SIGNED AND SEALED the 14th day of July, 1999. [SEAL] Joh%C. Williams, General Mar66ger and Secretary -Treasurer Canadian River Municipal Water Authority CMICER7.WPo 2 RESOLUTION NO. 99-07-9C A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CANADIAN RIVER MUNICIPAL WATER AUTHORITY AUTHORIZING THE APPROVAL AND EXECUTION OF AMENDMENT NO. 1 TO AGREEMENTS FOR THE PURCHASE AND ACQUISITION OF CONJUNCTIVE USE GROUNDWATER SUPPLY WITH EACH MEMBER CITY WHEREAS, the CANADIAN RIVER MUNICIPAL WATER AUTHORITY is a conservation and reclamation district duly created and existing under the laws of the State of Texas (the "Authority") and provides water to the cities of Amarillo, Borger, Brownfield, Lamesa, Levelland, Lubbock, O'Donnell, Pampa, Plainview, Slaton, and Tahoka (the "Member Cities") under water supply contracts; and WHEREAS, the Authority provides the Member Cities with water for their municipal water supply through the operation and maintenance of the Sanford Dam and Lake Meredith; and WHEREAS, the Authority has entered into an agreement with each of the Member Cities to provide for the funding of the costs of the acquisition of water rights, the construction of an aqueduct, the drilling of wells and the operation and maintenance of the system to deliver the underground water supply to the Member Cities (the "Conjunctive Use Groundwater Supply Agreements"), each dated to be effective as of May 15, 1996; and WHEREAS, the Authority issued its $13,505;000 Canadian River Municipal Water Authority Contract Revenue Bonds, Series 1996 (Conjunctive Use Groundwater Supply Project) by resolution dated July 10, 1996 ( the "Series 1996 Bonds"); and WHEREAS, as a result of the time between the original estimates for the Project made at the time of issuance of the Series 1996 Bonds and additional needs associated with the Project, it is necessary to increase the amount of Project Construction Costs, exclusive of Financing Costs, by $4,500,000 over that presently authorized in the Conjunctive Use Groundwater Supply Agreements; and WHEREAS, it may be beneficial to provide an option to the Authority to restructure its outstanding Series 1996 Bonds and to replace the Bond Reserve Fund with a surety bond; and WHEREAS, all Member Cities have approved Amendment No. 1 to their respective Conjunctive Use Groundwater Supply Agreement which increases the amount of the Project Construction Costs, exclusive of Financing Cost, and to permit the option of a surety bond; and WHEREAS, the Board finds that Conjunctive Use Groundwater Supply Agreements with each Member City should be amended by approving Amendment No. 1 to each of the Conjunctive Use Groundwater Supply Agreements. NOW, THEREFORE, be it resolved: Section 1. Amendment No. 1 to the Conjunctive Use Groundwater Supply Agreements with each of the cities of Amarillo, Borger, Brownfield, Lamesa, Levelland, Lubbock, O'Donnell, Pampa, Plainview, Slaton, and Tahoka are hereby approved. Section 2. The President of the Authority is authorized to execute and the Secretary of the Authority is authorized to attest Amendment No. 1 to the Conjunctive Use Groundwater Supply Agreement with each of the Member Cities. Section 3. A copy of this Resolution shall be attached to the executed Amendment No. 1 for each Member City. PASSED, APPROVED AND ADOPTED this 1-4-1 day of July, 1999. E. R. Moore, President Canadian River Municipal Water Authority Attest: Johq4. Williams, Secretary Ca adian River Municipal Water Authority [SEAL] GBBRESDI. WPD 2