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HomeMy WebLinkAboutResolution - 2023-R0053 - Canadian River Municipal Water Authority Revenue Refunding Bond, Series 2014Resolution No. 2023-R0053 Item No. 5.6 February 14, 2023 A RESOLUTION BY THE CITY OF LUBBOCK, TEXAS, AUTHORIZING REFUNDING OF CANADIAN RIVER MUNICIPAL WATER AUTHORITY SUBORDINATE LIEN CONTRACT REVENUE REFUNDING BONDS, SERIES 2014 (CONJUNCTIVE USE GROUNDWATER SUPPLY PROJECT) 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 and has outstanding its Canadian River Municipal Water Authority Subordinate Lien Contract Revenue Refunding Bonds, Series 2014 (Conjunctive Use Groundwater Supply Project); Canadian River Municipal Water Authority Subordinate Lien Contract Revenue Refunding Bonds, Series 2017 (Conjunctive Use Groundwater Supply Project); Canadian River Municipal Water Authority Subordinate Lien Contract Revenue Refunding Bonds, Series 2020 (Conjunctive Use Groundwater Supply Project); and Canadian River Municipal Water Authority Subordinate Lien Contract Revenue Refunding Bonds, Series 2021 (Conjunctive Use Groundwater Supply Project); and WHEREAS, at the present time the Authority desires to issue refunding bonds to refund all or a part of the outstanding Canadian River Municipal Water Authority Subordinate Lien Contract Revenue Refunding Bonds, Series 2014 (Conjunctive Use Groundwater Supply Project) (the "Series 2014 Bonds") if market conditions justify refunding all, or a part of, the Series 2014 Bonds; and WHEREAS, the Agreement provides for certain notice requirements before the Authority may issue Additional Bonds, as defined in the Agreement; and WHEREAS, the refunding bonds are Additional Bonds under the Agreement; and WHEREAS, timing constraints in the meeting schedules of the governing bodies of all Member Cities of the Authority to consider and approve refunding bonds may prevent the Authority from issuing refunding bonds in a timely manner to provide savings to the Member Cities; and WHEREAS, if the market is such that the Series 2014 Bonds can be refunded, it is in the best interest of the City to waive certain notice requirements under the Agreement and consent to the issuance of the bonds to permit the Authority to refund all or a part of the outstanding Series 2014 Bonds if a present value savings of at least 3.00% can be achieved; and WHEREAS, if the market conditions justify the refunding of the Series 2014 Bonds, then the Authority desires to issue by no later than July 12, 2023 refunding bonds in a principal amount not to exceed $13,350,000; and WHEREAS, the City, on June 14, 2022 approved a resolution agreeing to the Authority's desire to, within Calendar Year 2022, issue refunding bonds in a principal amount not to exceed $13,350,000 to refund all or a part of the outstanding Series 2014 Bonds; and WHEREAS, the Authority has not issued such refunding bonds as of date; and WHEREAS, the City, by this Resolution, agrees to the Authority's desire to issue the Refunding Bonds by no later than July 12, 2023 to refund all or a part of the outstanding Series 2014 Bonds; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS: SECTION 1. Should market conditions at any time prior to July 12, 2023 justify the refunding of the Series 2014 Bonds, the City waives the notice requirements of Section 4.1(a) of the Agreement, and consents to the issuance of the Canadian River Municipal Water Authority Subordinate Lien Contract Revenue Refunding Bonds, Series 2023 in a principal amount not to exceed $13,350,000 to refund all or a part of the outstanding Series 2014 Bonds, subject to the requirement that the refunding bonds for the Series 2014 Bonds provide a present value debt service savings of at least 3.00%. SECTION 2. That the City Secretary be and is hereby authorized to deliver certified copies of this Resolution and minutes pertaining to its adoption to the Authority in such numbers as may be requested for the Authority's records and proceedings. [ The remainder of this page intentionally left blank. J -2- PASSED, APPROVED AND ENACTED this February 14 , 2023. ATTEST: Rebe ca Garza, City Secretar APPROVED AS TO CONTENT: D Illu Ko telich, Chief Financial Officer APPROVED AS TO FORM: Am ms, Dep - Attorney TRAY PAY/NE, MAYOR -3- 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 _ of February, 2023, a Regular meeting of the City Council of the City of Lubbock, Texas was held at the regular meeting place located at City Council Chambers, 1314 Avenue K, Lubbock, Texas, the duly constituted members of the City Council being as follows: Tray Payne Christy Martinez -Garcia Shelia Patterson Harris Mark W. McBrayer Steve Massengale Dr. Jennifer Wilson Latrelle Joy Mayor Council Member District 1 Council Member District 2 Council Member District 3 Council Member District 4 Council Member District 5 Council Member District 6 and all of said persons were present, except for the following: N/A ; 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 REFUNDING OF CANADIAN RIVER MUNICIPAL WATER AUTHORITY SUBORDINATE LIEN CONTRACT REVENUE REFUNDING BONDS, SERIES 2014 (CONJUNCTIVE USE GROUNDWATER SUPPLY PROJECT) was duly introduced for consideration of said City Council. 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: 7 NOES: ABSTENTIONS: 0 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 the agenda 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 14th day of February 2023. [CITY SEAL] WA RL" A--� City ecretary City of Lubbock, Texas CERTIFICATE OF THE CITY OF LUBBOCK, TEXAS We, the undersigned, Chief Financial Officer and City Secretary of the City of Lubbock, Texas (the "City"), hereby certify the following information: 1. This certificate is executed and delivered with reference to the issuance of $12,330,000 Refunding Bonds, Series 2023 (Conjunctive Use Groundwater Supply Project) (the "Bonds") and the Agreement Between the Canadian River Municipal Water Authority and the City of Lubbock, Texas for the Purchase and Acquisition of Conjunctive Use Groundwater Supply, as amended (the "Conjunctive Use Groundwater Supply Agreement"). 2. Pursuant to a resolution passed by the City Council of the City on May 3, 1996, the City caused to be officially executed and signed by the Mayor and the City Secretary the Conjunctive Use Groundwater Supply Agreement on behalf of the City in order to begin the Conjunctive Use Groundwater Supply Project, and the first series of the Authority's contract revenue bonds were issued for the Conjunctive Use Groundwater Supply Project. 3. Pursuant to a resolution passed by the City Council of the City on June 10, 1999, the City caused to be officially executed and signed by the Mayor and the City Secretary Amendment No. 1 to Agreement for the Purchase and Acquisition of Conjunctive Use Groundwater Supply on behalf of the City in order to begin the second phase of the Conjunctive Use Groundwater Supply Project. 4. Pursuant to a resolution passed by the City Council of the City on January 13, 2005, the City caused to be officially executed and signed by the Mayor and the City Secretary Amendment No. 2 to Agreement for the Purchase and Acquisition of Conjunctive Use Groundwater Supply on behalf of the City in order to begin the third phase of the Conjunctive Use Groundwater Supply Project. 5. Pursuant to a resolution passed by the City Council of the City on March 8, 2006, the City caused to be officially executed and signed by the Mayor and the City Secretary Amendment No. 3 to Agreement for the Purchase and Acquisition of Conjunctive Use Groundwater Supply on behalf of the City in order to complete the third phase of the Conjunctive Use Groundwater Supply Project. 6. Pursuant to a resolution passed by the City Council of the City on December 17, 2008, the City caused to be officially executed and signed by the Mayor and the City Secretary Amendment No. 4 to Agreement for the Purchase and Acquisition of Conjunctive Use Groundwater Supply on behalf of the City in order to complete the third phase of the Conjunctive Use Groundwater Supply Project. 7. Pursuant to a resolution passed by the City Council of the City on June 9, 2011, the City caused to be officially executed and signed by the Mayor and the City Secretary Amendment No. 5 to Agreement for the Purchase and Acquisition of Conjunctive Use Groundwater Supply on behalf of the City in order to complete the third phase of the Conjunctive Use Groundwater Supply Project. 8. No litigation or proceeding of any nature has been filed or is now pending against the City and that so far as we know and believe no such litigation is threatened in any court or administrative body nor is there a basis for litigation (A) to contest the title or authority of the present members of the governing body and officers of the City to their respective offices, (B) to contest the due organization and valid existence of the City, (C) to adversely affect or contest the validity, due authorization, execution or performance of the Conjunctive Use Groundwater Supply Agreement, as amended, or (D) to attempt to limit, enjoin, or otherwise to restrict or prevent the City from functioning and collecting revenues, including revenues for the purpose of making Project Payments, and other income or the anticipated receipt of revenues of the City's waterworks system. 9. The waterworks system condensed operating statement of the City contained in the Official Statement fairly and accurately presents a condensed version of the operating position of the waterworks system of the City as of the dates and for the periods therein set forth, and there has not been a material adverse change in such condensed operating statement of the City since September 30, 2022, the latest date as of which such condensed operating statement for the City is available. 10. The City recognizes and acknowledges that pursuant to its continuing disclosure agreement with the Authority under its Conjunctive Use Groundwater Supply Agreement, as amended, it is an "obligated person" for the purposes of the Securities and Exchange Commission Rule 15c2-12, and as such is required to provide certain annual financial information to the Authority in a timely manner so that the Authority can file all required financial information within six months of the end of the fiscal year. Additionally, the City is in compliance with such obligation. 11. On the date of passage of the Authority's resolution authorizing the Bonds and through the date of this Certificate, I was the duly authorized and qualified Chief Financial Officer of the City. 12. On the date of passage of the Authority's resolution authorizing the Bonds, Rebecca Garza was the City Secretary. Through the date of this Certificate, I, Courtney Paz, am the Acting City Secretary of the City. 13. The City has complied with any applicable provisions of its City Charter in entering into the Conjunctive Use Groundwater Supply Agreement with the Authority, _2_ and such Agreement as amended by Amendment Nos. 1, 2, 3, 4 and 5 remains in full force and effect. 14. The City received notice from the General Manager of the Canadian River Municipal Water Authority of the proposed issuance of the Authority's Subordinate Lien Contract Revenue Refunding Bonds, Series 2023 (Conjunctive Use Groundwater Supply Project), and the City Council approved a resolution on February 14, 2023, in which it waived the notice requirements under Section 4.1(a) of the Conjunctive Use Groundwater Supply Agreement and agrees to the issuance of the Bonds. 15. The Attorney General of the State of Texas is hereby authorized to date this Certificate as of the date of approval of the Bonds and is entitled to rely upon the accuracy of the information contained herein unless notified by telephone to the contrary. [The remainder of this page intentionally left blank.] 1931 DO NOT DATE Dated J�1,� D. bta"Rostefich, Chief Financial Officer City of Lubbock, Texas A Courtney Paz, City *c City of Lubbock, Texas [CITY SEAL] THE STATE OF TEXAS COUNTY OF LUBBOCK Before me, the undersigned, a Notary Public, on this day personally appeared D. Blu Kostelich, known to me to be the Chief Financial Officer for the City of Lubbock, Texas, and who in my presence executed this instrument before me in the capacity represented and said person's signature is genuine. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the 3' day of 2023. CARINA REYES Notary Public. State of Texas Notary ID# 13331645-5 1 ' My Commission Expires 09-07-2025 [NOTARY SEAL] Notary Public, Statq@f Texas [ SIGNATURE PAGE TO CITY CERTIFICATE ] THE STATE OF TEXAS § COUNTY OF LUBBOCK § Before me, the undersigned, a Notary Public, on this day personally appeared Courtney Paz, known to me to be the City Secretary for the City of Lubbock, Texas, and who in my presence executed this instrument before me in the capacity represented and said person's signature is genuine. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of 2023. EM CARINA REYES otary Public, State of Texas Notary ID# 13331645-5 Commission Expires 09-07-2025 [NOTARY SEAL] Notary Public, State o as [ SIGNATURE PAGE TO CITY CERTIFICATE ]