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HomeMy WebLinkAboutResolution - 2017-R0355 - Delegation Of Authority - 09/28/2017Resolution No.2017-R0355 Item No.6.16 September 28,2017 RESOLUTION WHEREAS,the Electric Utility Board of the City of Lubbock has approved and recommended adoption to the City Council of the City of Lubbock a certain Capital Improvement Project providing forthe construction of Lubbock Power & Light electric transmission line facilities,including the construction of related electric substations, known as the Northwest to Mackenzie Transmission Project (the "Electric Project"); The City Council of the City of Lubbock has approved,through adoption of the budget for Lubbock Power &Light,the Electric Project; WHEREAS,the Electric Project serves the public interest of the citizens of the City of Lubbock in providing needed electric utility infrastructure reliability related improvements ("Electric Facilities"); WHEREAS,numerous real property interests are in need of acquisition to construct the Electric Facilities; WHEREAS,the City Council has the power and authority to acquire real property interests for use by Lubbock Power &Light; WHEREAS,the offers of the City of Lubbock to purchase the real property interests necessary for construction of the Electric Facilities are based upon third party appraisals,prepared by a certified appraiser (the "Appraisals"), the Appraisals providing for the value of the real property interests to be acquired, and the damages, if any, to any of the owners'remaining property (the 'Total Compensation Amount"); WHEREAS,due to the volume of the property interests necessary for completion of the Electric Facilities, and to avoid unnecessary duplication and time consumptive activities by the City Council,the City Council finds that it is advisable and in the best interest of the citizens of the City of Lubbock,to delegate certain authority to the Director of Electric Utilities to provide offers and accept counter offers, based upon defined price criteria, regarding such real property interest acquisition activities; WHEREAS,the delegation of authority will reduce the City of Lubbock's costs for the activities related to acquisition of the necessary real property interests and enhance the timely construction and completion ofthe Electric Facilities; WHEREAS,the public interest is served by the authority delegated herein and the City Council so finds; WHEREAS,nothing contained herein shall be deemed to be authority to take or acquire property by eminent domain;rather the City Council shall make such determinations independent of this Resolution,and this Resolution serves as a mere delegation ofthe process of making offers required by law and accepting counteroffers within the amounts herein specified; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK- The City Council hereby finds that the public welfare and convenience require the acquisition by the City of Lubbock of interests in real property necessary, in whole or in part, for the Electric Facilities (the "Property Interests"), each to serve the public and the citizens of the City of Lubbock, Texas. The recitals and preambles of this resolution are hereby adopted as further findings ofthe City Council. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: The Director of Electric Utilities, and his designees, are hereby authorized to make, execute and deliver, for and on behalf of the City of Lubbock, offers to purchase (the "Offer" or "Offers"), and to accept counteroffers to sell (the "Settlement Amounts"), the Property Interests, within the parameters set forth herein: A. The Offer(s), as delegated herein, shall be in the amount of the Total Compensation Amount, as prescribed in the Appraisal for the subject Property Interests. B. The Settlement Amounts, as delegated herein, shall not exceed: 1) The greater of. a) One Hundred Thousand and No/100 Dollars ($100,000.00); and b) For those properties with a Total Compensation Amount of more than One Hundred Thousand and No/100 Dollars ($100,000.00), but less than F i v e Hundred Thousand and No/100Dollars ($500,000.00), as prescribed in the Appraisal for the subject Property Interests, Settlement Amounts shall not exceed an amount equivalent to the Total Compensation Amount of the subject Property Interests, plus twenty percent (20%) of such Total Compensation Amount. C. Offer(s) or Settlement Amounts greater than those above referenced are to only be approved by action of the City Council of the City of Lubbock, Texas. For the purposes of this resolution, closing costs to be borne by the City of Lubbock (the "Closing Costs"), in closing transactions to acquire the Property Interests, are not to be included in the authorized expenditure limitations prescribed in this resolution. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: The Director of Electric Utilities is hereby authorized to execute for and on behalf of the City of Lubbock (a) contracts for the purchase of the Property Interests ("Agreements"), by and between the City and the owner(s) of the Property Interests, (i) in conformance with the terms of the delegation provided h e r e i n ; and (ii) upon other terms and provisions acceptable to the Director of Electric Utilities and in form acceptable to the General Counsel of Lubbock Power & Light; and (b) any other documents necessary for closing the transactions contemplated by the Agreements. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: The Director of Electric Utilities shall report to the Electric Utility Board of the City of Lubbock, at a frequency of not less than once every month, of all activities taken under the authority delegated hereunder. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: Nothing herein shall be deemed to prohibit the Director of Electric Utilities from determining to place any offer or counteroffer otherwise delegated by the City Council under the terms of this resolution on an agenda for consideration by the City Council in the event special circumstances exist which the Director of Electric Utilities opines necessitates consideration by the City Council. Passed by the City Council this 28th day of Se tep mber,2017. DANIEL M. POPE, MAYOR ATTEST: L),.o �4z.�4.4 All, Reb fca Garza, City Secretary APPROVED AS TO CONTENT: C David McCalla, Director of Electric Utilities APPROVED AS TO FORM: e Richard Casner, LP&L General Counsel