HomeMy WebLinkAboutOrdinance - 2004-O0152 - Issuance Of Electric Light And Power System Bonds;Board Of Trustees To Manage - 12/16/2004• , First Reading
December 16, 2004
Item No. 20
Ordinance No. 2004-Q0152
Second Reading
January 13, 2005
Item No. 9
AN ORDINANCE amending provisions of certain Ordinances authorizing the
issuance of outstanding Electric light and Power System Revenue Bonds
to allow for a Board of Trustees to manage and operate the City's Electric
Light and Power System; and resolving other matters incident and related
thereto.
WHEREAS, the City of Lubbock, Texas, has heretofore issued and there is currently
outstanding the following described bonds payable from and jointly and severally secured by
liens on and pledges of the Net Revenues of the City's Electric light and Power System and
Electric Light and Power System:
(1) City of Lubbock, Texas Electric Light and Power System Revenue
Refunding Bonds, Series 1995, dated June 15, 1995, authorized pursuant to
Ordinance No. 9815, and with a principal amount outstanding as of August 1 O,
2004, of $4,360,000;
(2) City of Lubbock, Texas Electric Light and Power System Revenue
Bonds, Series 1998, dated January 1, 1998, authorized pursuant to Ordinance
No. 10040, and with a principal amount outstanding as of August 10, 2004, of
$6,440,000;
(3) City of Lubbock, Texas Electric Light and Power System Revenue
Bonds, Series 1999, dated January 15, 1999, authorized pursuant to Ordinance
No. 10136, and with a principal amount outstanding as of August 10, 2004, of
$9,185,000; and
(4) City of Lubbock, Texas Electric Light and Power System Revenue
Bonds, Series 2001, dated July 1, 2001, authorized pursuant to Ordinance No.
2001-00043, and with a principal amount outstanding as of August 10, 2004, of
$7,820,000;
AND WHEREAS, the ordinances authorizing the issuance of the above described bonds
(the "Prior Bond Ordinances") expressly provide for amendments to be made to their provisions,
with certain exceptions, upon the City obtaining the written consent of the owners holding a
majority in aggregate of the principal amount the Bonds then outstanding affected thereby; and
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WHEREAS, on the 10th day of August, 2004, the City determined it had received written
consents from the owners holding at least $17,100,000 in aggregate principal amount (or
61.52%) of the above identified bonds currently outstanding to amend the Prior Bond
Ordinances "to allow the transfer of management and operations of its Electric Utility System to
an independent Board of Trustees"; and
WHEREAS, in addition to the consents received from the holders of the above identified
bonds, the City has also obtained the written consents for the aforesaid amendments from MBIA
Insurance Corporation and Ambac Assurance Corporation, which provide insurance for the
payment of one or more of such series of bonds; and
WHEREAS, the City hereby finds and determines the above mentioned Ordinances
should be amended to authorize the transfer of management and operations of its Electric light
and Power System to an independent Board of Trustees; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS:
SECTION 1: Unless otherwise defined herein, capitalized terms used herein shall have
the same meanings assigned thereto in the respective Prior Bond Ordinances being amended.
SECTION 2: The provisions of Ordinances Numbered 9815, 10040, 10136 and 2001-
00043, collectively the "Prior Bond Ordinances", shall be and are hereby amended and modified
by adding a new Section 22.5 to read as follows::
"SECTION 22.5: Board of Trustees. (a) To the extent authorized by law
and subject to the City's Charter and Code of Ordinances, the City may delegate
to a Board of Trustees the authority and responsibility to govem, manage and
operate the System in accordance with the following provisions:
(1) Number of Board Members: Council Appointment. The Board of
Trustees may consist of five to nine members who are appointed by the City
Council. The Mayor, or the Mayor's appointee, shall serve as a non-voting ex-
officio member of the Board.
(2) Terms of Office: Reappointment. The term of office for each
board member shall be for two years and a board member may be reappointed
by the City Council. However, in no event shall a board member serve more
than three terms.
(3) Authority, Responsibilities and Duties of the Board of Trustees.
The City Council may delegate to the Board all authority necessary to govern,
manage, administer and operate the City's electric utility including the authority to
entered into contracts in the name of the City relating solely to the operation and
management of the City's electric utility. This authority may include the ability of
the Board to contract for accounting, financial, human resources, legal and other
services separate and apart from those services currently being provided by the
City of Lubbock; to establish any and all policies relating to the administration
and implementation of contracts related solely to the City's electric utility; the
responsibility and oversight of the collection and disbursement of electric funds
and revenue separate and apart from all other City funds and departments.
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(4) Powers Reserved to the City Council. The following powers are
reserves unto the City Council:
(i) Establishing, changing, altering or otherwise setting
the electric rates of the City's electric utility, including all
components thereof;
(ii) Approving the budget of the City's electric utility;
(iii) Exercising powers of eminent domain for the
benefit of the City's electric utility; and
(iv) The power to borrow funds to finance or refinance
the costs of capital improvements and extensions to the electric
utility facilities, including the issuance of bonds or other
obligations, payable in whole or in part from the revenues of the
City's electric utility."
SECTION 3: Except as hereby amended and modified, the provisions of Ordinances
Numbered 9815, 10040, 10136 and 2001-00043, are hereby ratified, confirmed and approved in
all respects and the provisions of such Ordinances with the changes and amendments noted in
Section 2 hereof, shall and are hereby readopted and incorporated as a part hereof as if the
same were restated in full as a part of this ordinance.
SECTION 4: It is hereby found, determined and declared that the meeting at which this
Ordinance is adopted was open to the public and public notice of the time, place and subject
matter of the public business to be considered at such meeting, including this Ordinance, was
given, all as required by V.T.C.A., Government Code, Chapter 551, as amended.
SECTION 5: This Ordinance shall take effect and be in force immediately from and
after its passage on second and final reading and IT IS SO ORDAINED.
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PASSED AA1D ADOPTED on first reading the ~th day of December, 2004.
PASS ED AND ADOPTED on second and final reading the _!.l_ th day of January 2005.
CITY OF LUBBOCK, TEXAS
ATTEST:
(City Seal)
APPROVED AS TO CONTENT:
~ ~Financial Officer/Assistant City Manager
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