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HomeMy WebLinkAboutResolution - 2008-R0498 - Resolution Authorizing Participation In Construction Of Canadian Riv Water Auth. - 12_17_2008Resolution No. 2008-RO498 December 17, 2008 Item No. 6.5 A RESOLUTION BY THE CITY OF LUBBOCK, TEXAS, AUTHORIZING PARTICIPATION IN THE AMOUNT OF PROJECT CONSTRUCTION COSTS FOR THE CANADIAN RIVER MUNICIPAL WATER AUTHORITY AND THE APPROVAL OF AN AMENDMENT TO 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 that certain Agreement for the Purchase and Acquisition of Conjunctive Use Groundwater Supply (the "Agreement") entered into as of May 15, 1996, as amended, with the Canadian River Municipal Water Authority (the "Authority"); and WHEREAS, the Authority has entered similar agreements with each of the other cities that are members of the Authority (the "Member Cities"); and WHEREAS, the Authority issued its Canadian River Municipal Water Authority Contract Revenue Bonds, Series 1996 (Conjunctive Use Groundwater Supply Project); Canadian River Municipal Water Authority Contract Revenue and Refunding Bonds, Series 1999 (Conjunctive Use Groundwater Supply Project); Canadian River Municipal Water Authority Contract Revenue Bonds, Series 2005 (Conjunctive Use Groundwater Supply Project); Canadian River Municipal Water Authority Contract Revenue Refunding Bonds, Series 2005 (Conjunctive Use Groundwater Supply Project); and Canadian River Municipal Water Authority Contract Revenue Bonds, Series 2006 (Conjunctive Use Groundwater Supply Project); and WHEREAS, the Agreement requires certain notice requirements before the Authority may issue Additional Bonds, as defined in the Agreement; and WHEREAS, the Authority has given notice, as required under the Agreement, that it needs to issue an amount not to exceed $21,600,000 in Additional Bonds for infrastructure in the wellfield for the Conjunctive Use Groundwater Supply Project (the "Project"); and WHEREAS, the additional amount needed in Project Construction Costs, exclusive of Financing Costs, is $21,100,000; and WHEREAS, to reduce the amount of bonds to be issued, the City agrees to the use of the Authority's operating reserves on the Project to fund the debt service reserve fund for the Bonds; and WHEREAS, the City agrees that the infrastructure for the wellfield should be constructed and acquired and the Canadian River Municipal Water Authority Contract Revenue Bonds, Series 2009 (Conjunctive Use Groundwater Supply Project) should be issued for such purpose in a principal amount not to exceed $21,600,000 (the "Series 2009 Bonds"); and WHEREAS, the City agrees that the Authority may issue the Series 2009 Bonds on or after January 14, 2009. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS: SECTION 1. That the City agrees that the proposed total amount of Project Construction Costs for the infrastructure for the wellfield to be constructed and acquired with the Project Construction Costs, exclusive of Financing Costs, should not exceed $21,100,000, and a total par amount for the Canadian River Municipal Water Authority Contract Revenue Bonds, Series 2009 (Conjunctive Use Groundwater Supply Project) should be issued for such purpose in a principal amount not to exceed $21,600,000, with the Authority contributing the amount necessary for the funding of the debt service reserve fund. SECTION 2. That the City has received notice and waives the timing requirement of Section 4.1 of the Agreement and agrees that the Authority may issue the Series 2009 Bonds on or after January 14, 2009. SECTION 3. That Amendment No. 4 to Agreement for the Purchase and Acquisition of Conjunctive Use Groundwater Supply 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 Amendment No. 4 to Agreement for the Purchase and Acquisition of Conjunctive Use Groundwater Supply to the Secretary of the Canadian River Municipal Water Authority in such numbers as may be requested for said Authority's records and proceedings. [The remainder of this page is intentionally left blank.] PASSED, APPROVED December , 2008. ATTEST: City Secretary City of Lubbock, Texas [City Seal] AND ENACTED this the 17th day of <i;W'Ieo� Mayor, City of Lubbock, Texas AMENDMENT NO.4 TO AGREEMENT FOR THE PURCHASE AND ACQUISITION OF CONJUNCTIVE USE GROUNDWATER SUPPLY This Amendment No. 4 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 January 1, 2009, 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. PREAMBLE 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. The Authority has with proceeds of revenue bonds acquired Water Rights to provide for the current needs of the Member Cities. Because additional infrastructure is needed to obtain and deliver the water from the Water Rights, the Authority needs to issue additional revenue bonds. To reduce the amount of revenue bonds needed for the additional infrastructure, the Authority will use available operating reserves to fund the debt service reserve fund. The cost of the infrastructure to be financed by this amendment is approximately $21,100,000, and the Authority will issue its Contract Revenue Bonds, Series 2009 (Conjunctive Use Groundwater Supply Project) for such purpose. Financing Costs for such bonds are anticipated to be approximately $500,000 using the Authority's operating reserves to fund the Bond Reserve Fund to avoid financing such amount from bond proceeds. Unless approved in writing by the City and each of the other Member Cities, Project Construction Costs for the Contract Revenue Bonds, Series 2009 (Conjunctive Use Groundwater Supply Project) may not exceed $21,600,000 (representing approximately $21,100,000 in project costs and $500,000 in Financing Costs, not including the Authority's contribution of approximately $2,000,000 from operating reserves). 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 The declarations, determinations and findings declared, made and found in the preamble to this Amendment No. 4 to the Agreement Between the Authority and the City are hereby adopted, restated and made a part of the operative provisions hereof. ARTICLE TWO Section 2.11 of the Agreement is hereby amended in its entirety to read as follows: 2.11 City's Share of Water Supply means the City's share of the water supply from the Project, which prior to the issuance of any Revenue Bonds and such share after such issuance shall be attached as an exhibit to this Agreement as Exhibit "A" and referred to as the City's "Share of Total Groundwater Supply." 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 Use 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. [The remainder of this page is intentionally left blank.] -2- IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the dates above written. AUTHORITY: CANADIAN RIVER MUNICIPAL WATER AUTHORITY ATTEST: [SEAL] X "I ATTEST: [SEAL] By: ` CITY OF LUBBOCK, TEXAS By: -3- EXHBIT KA" Revised City Shares of Water Sunnty Current Share of ' Cummulative Shan of Member City Groundwater Share 2009 Bond lame Groundwater Supply 2 Shan of Total Water Supply Groundwater + Lake Su 1 Amarillo 40.621% 40.621% 40.621% 39.508% Lubbock 37.0580/a 37.058% 37.059% 37.058% Borger 5.549% 5.549% 5.5490/c 5.549% Plainview 3.691% 3.691% 3.691% 3.691% Pampa 3.600% 3.600% 3.600% 4.713% Levelland 2.790% 2.790% 2.790% 2.7900/6 Brownfield 2.198% 2.198% 2.199% 2.198% Lamesa 2.179% 2.179% 2.179% 2.179% Slaton 1.576% 1.576% 1.576% 1.576% Tahoka 0.460% 0.460% 0.460% 0.460% O'Donnell 0.278% 0.278% 0.278% 0.278% rotal 100.0000/0 100.0000/0 100.0000/0 100.000% Note: Following buy -in by any city initially participating at less than its Original Groundwater Share in the Additional Water Rights, the Share of Additional Water Rights will be recomputed for all Member Cities by a pro rate reduction of amount by which each city's Share of Additional Water Rights exceeds its Original Allocation. Thereafter, each city's Share of Total Groundwater Supply and Share of Total Water Suply will recomputed. L Cummaadvv Share of Grotautuaterr Supply (A) _ (Current Groundwater Pardc4mgon x 5183.5 million) + (% of 2009 Bands x 2009 Bond Amount) ($1835 milltas + 2009 Band Amount 2. Share of Total Water Supply (%) = (City Shore of GrormdwoterAliocatia n (AF) + City Share of Lace Aliocatfan (AF)) (Total Groundwater Allocation + Total La lre Allocation) Canadian River Municipal Water Authority City Participation - 2009 Bond Issue 2009 Allocations Amarillo 37.058% 40.621% 11,117 18,279 29,397 Lubbock 37.058% 37.058% 11,117 16,676 27,794 Borger 5.549% 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 Levelland 2.790% 2.790% 837 1,256 2,093 Brownfield 2.198% 2.198% 659 989 1,649 Lamesa 2.179% 2.179% 654 981 1,634 Slaton 1.576% 1.576% 473 709 1,182 Tahoka 0.460% 0.460% 138 207 345 O'Donnell 0.278% 0.278% 83 125 209 Bond Payments and'Allocations w/ 2009 Bond Issue (Full Amarillo 40.621% $ 8,571,031 $ 782,130 40.62196 11,117 26,810 Lubbock 37.058% $ 7,819,238 $ 713,527 37.05896 11,117 24,458 Borger 5.549% $ 1,170,839 $ 106,942 5.549% 1,665 3,662 Plainview 3.691% $ 778,801 $ 71,068 3.691% 1,107 2,436 Pampa 3.600% $ 759,600 $ 69,316 3.600% 2,149 2,376 Levelland 2.790% $ 588,690 $ 53,720 2.790% 837 1,841 Brownfield 2.198% $ 463,778 $ 42,321 2.198% 659 1,451 Lamesa 2.179% $ 459,769 $ 41,955 2.179% 654 1,438 Slaton 1.576% $ 332,536 $ 30,345 1.576% 473 1,040 Tahoka 0.460% $ 97,060 $ 8,857 0.460% 138 304 O'Donnell 0.278% $ 58,658 $ 5,353 0.278% 83 183 37,927 35,576 5,327 3,543 4,525 2,678 2,110 2,092 1,513 442 267 12/4/2008 Bickerstaff Heath Delgado Acosta up 816 Congress Avenue Suite 1700 Austin, Texas 78701 (512) 472-8021 December 4, 2008 VIA OVERNIGHT DELIVERY 8061775-2003 Ms. Lee Ann Dumbauld City Manager 1625 131h Street Lubbock, Texas 79401 Fax (512) 320-5638 www.bickerstaff.com RE: Canadian River Municipal Water Authority Contract Revenue Bonds, Series 2009 (Conjunctive Use Groundwater Supply Project) Dear Ms. Dumbauld: Kent Satterwhite has sent you notice and other documentation concerning a new bond issue for the Canadian River Municipal Water Authority (the "Authority") to construct infrastructure in the wellfield. The response from each of the Member Cities has been to proceed with the bond issue. The Board of the Authority will meet on January 14, 2009 to pass a resolution to issue the bonds. I have enclosed documents that we will need from you for this purpose. Please place the resolution on your agenda for your next council meeting. Enclosed are 6 Resolutions authorizing participation in the amount of project construction costs for the Canadian River Municipal Water Authority and the approval of an amendment to the City's Conjunctive Use Groundwater Supply Agreement with the Authority; 5 copies of the Certificate of City Secretary and 3 copies of Amendment No. 4 to the City's Conjunctive Use Groundwater Supply Agreement for approval and execution at the City Council meeting. The preliminary version of Exhibit A is also enclosed. Once the final version of Exhibit A is determined, please attach it to the Amendment. Please keep one copy of the Resolution and Amendment for filing with the City's official records and forward the remaining documents to our office in the enclosed ovemight packet. We will take the executed contract amendment to the Canadian River Municipal Water Authority Meeting. An executed original will be returned for your records. RECEIVED DEC 0 5 20M Ms. Lee Ann Dumbauld Page 2 December 4, 2008 If you have any questions, please do not hesitate to call. Our toll free number is (800/749-6646). Very truly yours, Thomas M. Pollan TMP:bm enclosures cc: Mr. Kent Satterwhite wlencs. CERTIFICATE OF CITY SECRETARY THE STATE OF TEXAS § COUNTY OF LUBBOCK § CITY OF LUBBOCK § I, the undersigned City Secretary of said City, hereby certify as follows: 1. That on the 17th day of December , 200 s , a regular meeting of the City Council of the City of Lubbock, Texas was held at the regular meeting place in the City Council Chambers in City Hall; the duly constituted members of the City Council being as follows: Tom Martin Mayor Jim Gilbreath Mayor Pro Tern Linda DeLeon Councilmember Floyd Price Councilmember Todd R. Klein Councilmember Paul R. Beane Councilmember John W. Leonard, III Councilmember and all of said persons were present, except for the following: Floyd Price ; thus constituting a quorum. Whereupon, among other business, the following was transacted at said meeting: a written Resolution entitled A RESOLUTION BY THE CITY OF LUBBOCK, TEXAS, AUTHORIZING PARTICIPATION IN THE AMOUNT OF PROJECT CONSTRUCTION COSTS FOR THE CANADIAN RIVER MUNICIPAL WATER AUTHORITY AND THE APPROVAL OF AN AMENDMENT TO THE CITY'S CONJUNCTIVE USE GROUNDWATER SUPPLY AGREEMENT WITH THE CANADIAN RIVER MUNICIPAL WATER AUTHORITY was duly introduced for consideration of said City Council and read in full. It was then duly moved and seconded that said Resolution be passed; and, after due discussion, said motion, carving with it the passage of said Resolution, prevailed and carried by the following vote: AYES: 6 NOES: U ABSTENTIONS: U 2. 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; said Resolution has been duly recorded in the official minutes of said City Council; the above and foregoing paragraph is a true, full and correct excerpt from said minutes of said meeting pertaining to the passage of said Resolution; the persons named in the above and foregoing paragraph, at the time of said meeting and the passage of said Resolution, were the duly chosen, qualified and acting officers and members of said City Council as indicated therein; each of said officers and members 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 members consented in advance to the holding of said meeting for such purpose; and said meeting was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Chapter 551, Texas Government Code. SIGNED AND SEALED this 17th day of December , 200 8. 'Q City Se6retary City of Lubbock, Texas [CITY SEAL]