HomeMy WebLinkAboutResolution - 2008-R0486 - Continued Development Of Well Field At CRMWA - 12_04_2008Resolution No. 2008—RO486
December 4, 2008
Item No. 6.4
RESOLUTION
WHEREAS, the Canadian River Municipal Water Authority ("CRMWA") is in
the process of the development of the John C. Williams Well Field (the "Well Field");
WHEREAS, the Well Field provides a significant amount of water to the City of
Lubbock and other member cities of CRMWA;
WHEREAS, so that CRMWA may continue the development of the Well Field,
including the construction of additional water production and transmission facilities, it is
necessary for CRMWA to issue approximately $21,600,000.00 in revenue bonds in the
year 2009 (the "Bond Issuance");
WHEREAS, the City of Lubbock is in agreement in principle to such issuance,
NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock execute, for and on behalf of the City of
Lubbock, that certain letter addressed to CRMWA attached hereto as Exhibit "A"
and made a part hereof for all purposes, evidencing the City of Lubbock's intent
in principle to participate in the 2009 CRMWA Bond Issuance, as described
therein.
Passed by the City Council this 4th day of December 2008.
TOM MARTIN, MAYOR
ATTEST:
CONTENT:
'om Adams, Deputy City Manager
Aubrey Spear, D' ctor of Water Utilities
APPROVED AS TO FORM:
Richard K. Casner, First Assistant City Attorney
Richard/Resolutions/CRM WA. res.111808
Resolution No. 2008-RO486
NOTICE OF INTENTION TO ISSUE
CANADIAN RIVER MUNICIPAL WATER AUTHORITY
CONTRACT REVENUE BONDS, SERIES 2009
(Conjunctive Use Groundwater Project)
TO: The Cities of Amarillo, Bores-, Bmwnfield, Lamesa, Levelland, Lubbock,
O'Donnell, Pampa, Plainview, Staten and Tatra (the "Member Cities")
TAKE NOTICE that the Board of Directors of the Canadian River Municipal
Water Authority (the `Authority") has authorized notice that it intends to issue its
CANADIAN RIVER MUNICIPAL WATER AUTHORITY CONTRACT REVENUE
BONDS, SERIES 2009 (Cor+.rnc€ive Use Groundwater Project) in the principal amount
not to exceed $21,600,000 to ?pay for the Project Construction Costs, as defined in the
Conjunctive Use Groundwater Supply Agireen-tents between the Authority and the
Member Cities in connection with the development of the Conjunctive Use Ground
Water Supply Project. These Revenue Bonds will be for the construction and further
development of the well field.
The Authority intends to authorize the issuance of its Revenue Bonds on or after
January 14, 2009.
The proposed $21,600,OW of Revenue Bonds is based on a proposed amount of
Project Construction Costs, exclusive of Financing Casts, of $21,100,000. The
Authority is reducing the amount of Revenue Bonds that are needed by contributing the
required debt service reserve fund amount from its operating reserves. In order to issue
cap to $21,600,000 of Revenue Bonds, such Revue Bonds must be approved by the
Member Cities, as provided in the Conjunctive Use Grp Waiter Supply Agreements.
The principal amount of the Revenue Bonds shall be reduced to the extent that
any Member City contributes kinds in lieu of participating in the Authority's Revenue
Bonds.
Each City's Share of Project Construction costs, both exclusive and including
Financing Costs, is attached hereto for the proposed CANADIAN RIVER MUNICIPAL
WATER AUTHORITY CONTRACT REVENUE BONDS, SERIES 2009 (Conjunctive
Use Groundwater Prot)_
Each Member City shod advise the Auttiority of tine amount of its share of
Project Construction Costs that it intends to provide in lieu of participating in this series
of the Authority's Revenue Bonds for the Project.
Kent Satterwhite, P.E.
General Manager
Canadian River Municipal Water Authonty
November 12. 2008
TO: The Canadian River Municipal Water Authority (the "Authority")
Please to advised that in response to the Auff-ox ty`s notice of intent dated
November 12, 2008, the City of Texas (the 8CY) advises that in
connection with the issuance of the Canadian River municipal Water Authority Contract
Revenue Bonds, Series 2009 (Conjunctive Use Groundwater Supply Project):
1. Increased An mW of Project Ccxtsbuction C m is
1 a. X if all Member Cities also agree, the City agrees to the issuance of
Contract Revenue Bands, Series 2009 (Conjunctive Use
Groundwater Supply Project) t) fbr Prod Construction Costs,
exclusive of Fite Coss not to exceed $21,100,000 with a total
par ar vunt not to exceed $21,600,000, including Financing Costs
with the Authority conthbuhng the required debt service reserve
ftmd from its operating reserves for which the Member Cities will
not to required to nVay. the City further agrees to the Authority's
issuance of its Contract Revenue Bonds Series 2009 (Conjunctive
Use Groundwater Supply Project) on January 14, 2009, or as soon
thereafter as possible.
1 b. The City does not agree to the increase in Project Construction
Costs and will require that the Authority issue its bonds in the limits
specified in the Conjunctive Use Groundwater Supply Agreement.
2. Level of Participation
2a. The City will participate at its current level of participation.
2b. X The City w#I participate at its current level of participation and will
assume any additional amount that becomes available.
2c. The City will not participate at this tune, but agrees to the
Autedrity's issuance of the bonds.
3. The City will land its portion of the Project Construction Casts:
3a. X Solely thrcxsgh the participation in the Authority's Revenue Bonds,
3b. Exclusively through +ts own €ands and will pruvide certification of
availability of fps as retired by the Conjunctive Use
Groundwater Supply Agreement between the Authority and the
City.
3c. Through a cash contribution of its own funds in an amount of
$ , and will proves a certification of availability of funds
as required by the Contract between the Authority and the City, and
the remainder of its portion will be financed through participation in
the Authority's Revenue Bonds.
3d. The City is not participating.
Date:
rA
CITY OF
By. -
Name:
Title:
Resolution No. 2008-RO486
Groundwater Project 2009
Proposed Participation and Allocation Adjustments
The Canavan River Municipal Water Authority (CtMWA} Board of Directors has
authorized (subject to the approval of CRMAdA's Member Cities) the issuance of
additional bonds to increase the scope of the III we3lfield project. The foilowing
plan attempts to accommodate the needs and firk-wciali capacities of our diverse group
of Member Cities.
The estimated cast for infrastructure to bring Wtal production from the weitfield to
66,000 AF/ r is estimated at wouncl $47 million, We have about $26 mi€3ion set aside
from our 2005 & 2006 Bond Issues which leaves around $21.1 million additional
funding rimed to complete the projecL
To date, our total irrvestment in the groundwater project is $83.5 M + $50 M +$50 M=
$183.5 M (approximate numbers). AN Member Cues cove participated fully to this
point, but some Cities may ct oow not to participate in the 2009 Bond Lssue (Lamesa
has indicated that possit0'ty). With that possibMity, om war to moire forward with the
2009 Bond Issue would be to s0nply ate based on the investment each City has
in the TOTAL groundwater past.
Example: City X owns a 5% 4ore in the $183.514 CRMWA has spent dwough the 2006
Bond issue. That mans OW have invested $9.175 M in the project.
City X chooses not to participate in the 2009 Bond Issue.
$183.5 M (thru 2OD6) + $21.1 M (2009 Bond Issue) = $204.6 M
$9.175 M J $204.6 M = 4.484% = C V Xs new share of the overall project
Tables 2 & 3 below show two possible sce�os. Tc-#Ae 2 s1I all Cities participating
and Table 3 shows everyone but Lamesa particIpI with all odw Cities picking uX,
Lamesa's shme, In the final outcome, some 0bes will ftilly participate, som may not
participate, and some may want the adra aWao" avatable from nort-participating
.t;;w. ► plan cani;. ... accaIlate those possibilities.
Table 1. 2009 Allocations
L bbodt
37.058°%
37.158%:
11,1ll
lb,blb
Z:,l94
Borger
5549%
5,549%
1,665
2,497
4,162
Plainview
3.691%
3.691%
1,107
1,661
2,768
Pampa
7.163%
3.600%
2,149
1,620
3,769
Levefland
2.79m°,
2_7190%:
837
1,256
2,093
Brownfield
2.19804
2.198%
659
989
1,649
Lamesa
2179%
2.179%'
654
981
1,634
Staton
1.576%
1.576%
473
709
1,182
Tahoka
0.4609b
0.4601%
138
207
345
O'Donnell
0.279%
0.278Q%
83
125
209
Table L Bond Payments and Alloxations w/ 2009 Bond Issue
Lubbodti
Yes
37A58%
$
7,956,353
S
650.809
37.058%
11,117
24,458
35,576
Borger
Yes
5549%
5
1,191,370
$
97,451
5.549%
1,665
3,662
5,327
Plainview
Yes
3.691%
S
792,458
$
64,821
3.691%
1,107
2,436
3,543
Pampa
Yes
3.600%
S
772,920
$
63,22;
3.600°% ;
2,149
2,376
4,575
Levelland
Yes
2.790%
S
599,013
$
48,998
2.790°%:
837
1,841
2,678
Brownfield
Yes
2.198%
S
471,911
S
38,601
2.198%'
659
1,451
2,110
Lamesa
Yes
2.179%
$
467,831
$
38,267
2.1790A
654
1,438
2,092
Slaton
Yes
1.576%
$
338,367
$
27,678:
1,576%
473
1,040
1,513
Tahoka
Yes
OA60%
$
98,762
$
9,078 -
0.460%
138
304
442
O'Donnell
Yes
0.278%
$
59,687
$
4 8&2 ;
0,278%
83
183
257
Table 3. Bond Payments and Allocadom w/ 2009 Bond Issue
Amarilo
Yes
415a675
5 8,915,600
15
729,273 ?
40,716%
11,117
26,872
37,990
Lubbock
Yes
37.883%
$ 8,133,583
$
665,306
37,144%
11,117
24,515
35,633
Borger
Yes
5.673-.fix
$ 1,217,909
$
99,622
51562%
1,665
3,671
5,336
Plainview
Yes
3.773%
5 810,110
$
66,265
3.700%
1,107
2,442
3,549
Pampa
YeS
3.680%
5 790,137
.$
64,631
3.W%;
2,149
2,382
4,5K,
tEve!fandYes
2.852
61Z,35
G,d9
2.797%
837
1,946
2,683
Brownfield
Yes
2.24704
$ 482,423
$
39,461
2.2003%:
659
L454.
2,113
Lamesa
1,951% i
654
1,287
1,941
Sla1Dn
Yes
1.611%
S 345,904
$
28,294
1.5809e
473
1,043
1,515
Tahoka
Ye
0.47G
$ 100,962
$
8,258 '
0.461 %
139
304
442
O'Donnelt
Yes
0.284%
$ 61,016
5
4,991
0.279% i
93
184
267
City Allocations vs. Peak Usage
'Ok. ..... ...... . ...... .. .. .... .... . ... .... ........
35,000
30.0rX
,a
O
z0;000
M
E
M1lMe. V...en_ Cale., -Or AM9, I C. L'.j 'Ijcit' :11( S'j
and the,enialml-ng 81 Citlies,ri,ht 6xisi.
................... ... . .............. . ..... ......... I....., .. ......
LaW Meredith- 3O.-OW AF
93C Williams Wellifieid - 66,OWAF
Peak Usage from, CRfAWA
4,Qft
.... ......... . ........ .... ................
3,000
'X
. ...... . ... .................
I'Dw
s�uxw
Amargla Lubbock Borger Ffal"View Pampa
slawn
Tahaka O'Doonell
Note: Assumes _30,000 AF from Lake MeredO and full participation from all Cities.
Buy -In
During the "nal maturity of the 2009 Revenue Bonds, a Member City which elects
not to participate at the oxnplete tevel of it Original Gfolundvrrater Share shall have the
tight to exercise an option to buy -in to the 2009 Revenue Bonds and reclaim all or a
Portion of its Orkitnal Groundwater Share. This Provision wil be the same as was
inckxied in the 2006 contracts.
Conclusion
It is apparent ffiat our Member Cities want to continue to move forward as a team;
however, each Citys sittotim is unkp*. This proposal is sffr#y one way for us to meet
the growing needs of some Mies widmt Rnancially overwhelming otter- C-Wes. If you
have any questions, %Kjgestiom, or comments, pk9se contact us.
3
CRMWA - Series 2009
Uninsured, funded Debt Service Reserve Fund
Sources of Funds
Par amount of issue 21,470,000
Uses of Funds
Underwriter's Discount (.70%) 150,290
Costs of Issuance 220,000
Debt Service Reserve Fund
Project Proceeds 21,100,000
Rounding (2 9 0)
Total $ 21,470,000
Debt service reserve fund in amount estimated to be
$1.86 million to $2 million to be funded from contribution
of CRMWA reserves
CRMWA - Series 2009
Uninsured, funded Debt Service Reserve Fund
CRMWA Reserves Used to fund Debt Service Reserve Fund
less:
Total
Fiscal
MR earnings (2)
Net Debi
Year
prit!,!!�Pal
tnterest (1)
& DSR in MW yr.
Service
2010
$ 1,851,788
$ (69,597)
$ 1,782,191
2011
585,000
1,2€7,706
(46,398)
1,756,308
2012
620.WO
1,183,063
(46,39M
1,756,665
2013
655,000
1,146,406
(46,M)
1,755,008
2014
%5,000
1,107,594
(46,398)
1,756,196
2015
735,000
1,066,481
(46,398)
1,755,083
2016
780,000
1,022,925
(46,3"
1,756,527
2017
825,000
976,781
(46,398)
1,755,383
2018
875,000
927,906
(46,39M
1,756,508
2019
925,000
876,156
(46,398)
1,754,758
2020
MOW
821,388
(46,398)
1,754,990
2021
1,040,000
763,313
(46,3"
1,756,915
2022
1,100,000
701,788
(46,398)
1,755,390
2023
1,165,000
636,669
(45,398)
1,755,271
2024
1,235,000
567,€%
(46,398)
1,756,271
2025
1,310,000
494,5W
(46,398)
1,758,102
2026
1,385,000
417,019
(46,398)
1,755,621
2027
1,470,000
334,938
(46,398)
1,758,540
2028
1,555,000
247,969
(46,39$)
1,756,571
2029
3,535,000
101,631
(1,879,111)
11757,520
$ 21,470,000
$ 16,463,688
$ 35,149,819
(1) ;ntarest rate an bonds assumed at 5.75%
(2) DSR eaffwngs ass need at 2.60%
Average Annual Debt Service: $ 11156,191
All i 1 member cities
participating in project
Average Annual
Bone! Paymenr
Amarillo
40.62%
$ 713,365
Lubbock
37.06%
$ 650,844
Borger
5.55%
$ 97,469
PlairMew
3.69%
$ 64,803
PanVa
3.60%
$ 63,223
Leveliand
2.79%
$ 48,998
Brawnfield
2.20%
$ 38,636
Lamesa
2.18%
$ 38.285
Slaton
1.58%
$ 27,748
Tahoka
0.46%
$ 8,078
O'Donnell
0.28%
$ 4,917
1,756,367