Lubbock ISD board approves extensions of standby bond purchase agreements for 2005 and 2006 school bonds

The Lubbock Independent School District Board of Trustees approved an order authorizing execution and delivery of Extensions 2 and amendments to the standby bond purchase agreements for the district's variable-rate unlimited-tax school building bond Series 02/2005 A and Series 02/2006 at an 11:31 a.m. meeting. The motion carried with a vote tally announced as 7-2-0.

Board staff explained the extensions were required because the bonds are structured as variable-rate instruments that must have a standby bank in place to back purchase of the bonds. "It's not something that we can go without," Doctor Wilkins, staff member, said, explaining the legal and market requirement for the standby facility. Wells Fargo is the standby provider for the 2005 series, and staff said only a handful of institutions nationwide offer this service.

The board was told the paperwork had a short turnaround because Wells Fargo notified the district after a break; staff said the documents must be returned by the 12th, prompting the expedited agenda item. Doctor Wilkins said the standby agreements are typically renewed every two years and that district staff are working on a defeasance strategy to pay off the bonds and eliminate the need for future standby agreements.

Members moved and seconded the order; neither the mover nor the seconder was identified on the record. The board president announced the motion carried "7 2 0," which the board recorded as the vote tally. No individual vote-by-name was included in the transcript.

After approving the order, the board adjourned into an executive (closed) session under Texas Government Code Chapter 551 at 11:34 a.m.