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HomeMy WebLinkAboutResolution - 2014-R0340 - Issue CRMWA Refunding Bonds, Series 2005 And 2006 - 09/25/2014Resolution No. 2014-R0340 September 25, 2014 Item No. 7.9 A RESOLUTION BY THE CITY OF LUBBOCK, TEXAS, AUTHORIZING REFUNDING OF CANADIAN RIVER MUNICIPAL WATER AUTHORITY CONTRACT REVENUE REFUNDING BONDS, SERIES 2005 (CONJUNCTIVE USE GROUNDWATER SUPPLY PROJECT) AND/OR CANADIAN RIVER MUNICIPAL WATER AUTHORITY CONTRACT REVENUE BONDS, SERIES 2006 (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 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); Canadian River Municipal Water Authority Contract Revenue Bonds, Series 2006 (Conjunctive Use Groundwater Supply Project); Canadian River Municipal Water Authority Contract Revenue Bonds, Series 2009 (Conjunctive Use Groundwater Supply Project); Canadian River Municipal Water Authority Contract Revenue Refunding Bonds, Series 2010 (Conjunctive Use Groundwater Supply Project); Canadian River Municipal Water Authority Subordinate Lien Contract Revenue Bonds, Series 2011 (Conjunctive Use Groundwater Supply Project); and Canadian River Municipal Water Authority Subordinate Lien Contract Revenue Refunding Bonds, Series 2012 (Conjunctive Use Groundwater Supply Project); and WHEREAS, the Authority has expressed its intent to issue refunding bonds to refund all or a part of the outstanding Canadian River Municipal Water Authority Contract Revenue Refunding Bonds, Series 2005 (Conjunctive Use Groundwater Supply Project) (the "Series 2005 Refunding Bonds') and all or a part of the outstanding Canadian River Municipal Water Authority Contract Revenue Bonds, Series 2006 (Conjunctive Use Groundwater Supply Project) (the "Series 2006 Bonds') if market conditions justify refunding both the Series 2005 Refunding Bonds and the Series 2006 Bonds; and WHEREAS, if the market conditions do not result in sufficient savings to refund both the outstanding Series 2005 Refunding Bonds and the Series 2006 Bonds, then the Authority will want to refund such issue as may be economically feasible; and (nrsiw5.2 WHEREAS, if the market conditions only justify the refunding of the Series 2005 Refunding Bonds, then the Authority desires to issue refunding bonds in a principal amount not to exceed $13,500,000 to refund all or a part of the outstanding Series 2005 Refunding Bonds; and WHEREAS, if the market conditions only justify the refunding of the Series 2006 Bonds, then the Authority desires to issue refunding bonds in a principal amount not to exceed $36,500,000 to refund all or a part of the outstanding Series 2006 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, the timing constraints of getting the governing bodies of all Member Cities of the Authority to meet 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, 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 2005 Refunding Bonds and all or a part of the Series 2006 Bonds if a combined present value savings of at least 4.50% can be achieved; and WHEREAS, if the market is such that only the Series 2005 Refunding 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 2005 Refunding Bonds if a present value savings of at least 5.50% can be achieved; and WHEREAS, if the market is such that only the Series 2006 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 2006 Bonds if a present value savings of at least 3.50% can be achieved; and WHEREAS the City agrees to the Authority's issuance of bonds as subordinate lien bonds to eliminate the need of a reserve fund; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS: 00783385;2 -2- SECTION 1. (a) That 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 2014 in a principal amount not to exceed $50,000,000 to refund all or a part of the outstanding Series 2005 Refunding Bonds and all or a part of the outstanding Series 2006 Bonds, subject to the requirement that the refunding bonds for both issues combined provide a present value debt service savings of at least 4.50%. (b) Should market conditions only justify the refunding of the Series 2005 Refunding 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 2014 in a principal amount not to exceed $13,500,000 to refund all or a part of the outstanding Series 2005 Refunding Bonds, subject to the requirement that the refunding bonds for the Series 2005 Refunding Bonds provide a present value debt service savings of at least 5.50%. (c) Should market conditions only justify the refunding of the Series 2006 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 2014 in a principal amount not to exceed $36,500,000 to refund all or a part of the outstanding Series 2006 Bonds, subject to the requirement that the refunding bonds for the Series 2006 Bonds provide a present value debt service savings of at least 3.50%. 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.] 007837652 -3- PASSED, APPROVED AND ENACTED this the 25th day of September , 2014. Mayor, C' f Lu c, Texas ATTEST: RebbccaP aGa aG City Secretary APPROVED AS TO CONTENT: Pamela Moon Executive Director of Finance APPROVED AS TO FORM: Thomas M. Pollan CRMWA Bond Counsel 007833652 -4- [CITY SEAL] 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: 25th September Regular 1. That on the _day of , 2014, ameeting 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: Glen C. Robertson Mayor Jim Gerlt Mayor Pro Tem Karen Gibson Councilmember Victor Hernandez Councilmember Floyd Price Councilmember Jeff Griffith Councilmember Latrelle Joy Councilmember and all of said persons were present, except for the following: Jim Gerit ; 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 CONTRACT REVENUE REFUNDING BONDS, SERIES 2005 (CONJUNCTIVE USE GROUNDWATER SUPPLY PROJECT) AND/OR CANADIAN RIVER MUNICIPAL WATER AUTHORITY CONTRACT REVENUE BONDS, SERIES 2006 (CONJUNCTIVE USE GROUNDWATER SUPPLY PROJECT) 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, carrying with it the passage of said Resolution, prevailed and carried by the following vote: AYES: NOES: ABSTENTIONS: 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 00780538;1 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 25th day of September , 2014. City ecretary City of -Lubbock, Texas [CITY SEAL) 00780538;1 .2_