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HomeMy WebLinkAboutResolution - 2019-R0097 - LP&L Reimbursement - Bond - 03/26/2019 Resolution No. 2019- R0097 March_2 2019 Item No.719 A RESOLUTION EXPRESSING INTENT TO FINANCE EXPENDITURES TO BE INCURRED WHEREAS, the City of Lubbock, Texas (the "Issuer") is a political subdivision of the State of Texas authorized to finance its activities by issuing debt obligations, including obligations the interest on which is excludable from gross income under Section 103of the Internal Revenue Code of 1986, as amended (collectively, the "Obligations"); WHEREAS, on October 25, 2018, the Issuer adopted a resolution expressing its intent to reimburse capital expenditures associated with certain projects in an amount not to exceed $250,000,000 (the "Prior Reimbursement Resolution"); WHEREAS, the Issuer desires to reimburse itself for (i) capital expenditures associated with certain additional projects (the "Additional Projects") and (ii) capital expenditures in excess of the amounts budgeted for certain projects identified in the Prior Reimbursement Resolution (the "Augmented Amounts"); WHEREAS, this resolution supplements the Prior Reimbursement Resolution to include the Additional Projects and the Augmented Amounts; WHEREAS, the Issuer will make or has made, not more than 60 days prior to the date hereof; payments for capital expenditures with respect to the acquisition, construction; reconstruction, renovation or equipment of the projects listed on Exhibit A attached hereto; WHEREAS, the Issuer has concluded that it does not currently desire to issue Obligations to finance costs associated with the projects listed on Exhibit A attached hereto; WHEREAS, the Issuer desires to reimburse itself for capital expenditures associated with the projects listed on Exhibit A attached hereto from the proceeds of Obligations to be issued subsequent to the date hereof, and WHEREAS, the Issuer reasonably expects to issue Obligations to reimburse itself for the costs associated with the projects listed on Exhibit A attached hereto. NOW, THEREFORE, be it resolved that: Section 1. The Issuer reasonably expects to reimburse itself for capital expenditures that have been or will be paid subsequent to the date that is 60 days prior to the date hereof, but not more than 18 months after the date hereof, and that are to be paid in connection with the Resolution No.2019-_Ron9l March,5 2019 Item No.-7—L9 acquisition, construction, reconstruction, renovation or equipment of the projects listed on Exhibit A attached hereto from the proceeds of Obligations to be issued subsequent to the date hereof. Section 2. The Issuer reasonably expects that the maximum principal amount of Obligations issued to reimburse the Issuer for the costs associated with the property listed on Exhibit A attached hereto will not exceed $33.500.000. [Signature Page Follows] Resolution No. 2019- Rol()97 March-26 2019 ltern No.y Lq ADOPTED THIS 26th day of March, 2019, by the City Council of the City of Lubbock, Texas. CITY OF LUBBOCK, TEXAS DANIEL M. POPE, MAYOR ATTEST: Rebe ca Garza, City Setar APPROVED AS TO CONTENT: D. Blu Koste ich, Chief Financial Officer APPROVED AS TO FORM: Jerry V. le, Jr., Bond Counsel Exhibit A Lubbock Power and Light Additional Updated Total Amount Cost Estimate Additional Projects Substation Rebuild—Slaton $150,000 $150,000 69/115kV Line Rebuild: Holly-Slaton 870,000 870,000 Red Raider Substation Distribution Feeders 4,985,000 4,985,000 Abernathy to North Transmission Line 1,550,000 1,550,000 Abernathy to Wadsworth Transmission Line 2,750,000 2,750,000 Wadsworth to New Oliver to Farmland Transmission Line 1,000,000 1,000,000 Augmented Amount Projects Substation Capacity Upgrade—McDonald $721,198 $991,198 69 kV Line Rebuild -Thompson to Vicksburg 430,000 1,045,000 115kV Line Construction -Northwest to Mackenzie 4,228,802 5,318,802 Autotransformer- Southeast 1,500,000 2,610,000 Autotransformer- Vicksburg 400,000 2,095,000 Autotransformer- Mackenzie 1,000,000 3,315,000 Substation Rebuild - Holly 4,060,000 7,230,000 Substation Rebuild - Oliver 6,855,000 7;575,000 69/115kV Line Rebuild: Holly-Southeast 2,155,000 2,505,000 Total $32,655,000 $43,990,000 A-1