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Home My WebLink AboutResolution - 3701 - Reimbursement Of City Funds, SE WRP Engineering Services - 08_22_1991Resolution No. 3701 August 22, 1991 Item #28 A RESOLUTION relating to the reimbursement of City funds expended for costs of engineering services in connection with replacement of an effluent pipeline to connect the City's Southeast Water Reclamation Plant to the City's land application site east of the treatment plant and construction of a major wastewater treatment and disposal improvement and expansion project from the proceeds of sale of tax exempt obligations; and resolving other matters incident and related thereto. WHEREAS, the City of Lubbock, Texas (the "City") intends to replace its existing 30 inch effluent pipeline with a 36 inch effluent pipeline to connect the City's Southeast Water Reclamation Plant to the City's land application site east of the treatment plant and construct a major wastewater treatment and disposal improvement and expansion project, and proposes to issue tax-exempt debt to finance the cost of such replacement effluent pipeline and construction of the wastewater project; and WHEREAS, prior to issuing its debt obligations, the City has incurred and will incur certain costs in connection with the replacement of the effluent pipeline and construction of the wastewater project; and WHEREAS, the City plans to reimburse itself for expenditures made in connection with the replacement of the effluent pipeline and construction of the wastewater project prior to the issuance of its tax-exempt obligations; and WHEREAS, proposed regulations issued under the Internal Revenue Code of 1986 (the "Code") imposed certain requirements in order that such reimbursement is treated as an expenditure of bond proceeds for federal tax law purposes, including the taking of official action by the adoption of a resolution evidencing the City's intention to reimburse city funds expended for a project or purpose to be financed with the proceeds of sale of tax exempt obligations; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1: That the following proposed reimbursement plan is approved: 1. The City intends to reimburse itself for expenditures to be made for engineering services in connection with replacement of an effluent pipeline to connect the City's Southeast Water Reclamation Plant to the City's land application site east of the treatment plant and construction of a major wastewater treatment and disposal improvement and expansion project, by incurring debt the interest on which is excludable from gross income under section 103 of the Internal Revenue Code of 1986. 2. The expenditures for the engineering services are anticipated to be approximately $874,000. The engineering services, and the approximate costs of each are: planning phase ($700,000); construction phase, basic ($32,000); design phase ($82,000); construction phase, inspection ($40,000); user charge ($20,000). The engineering costs incurred for the planning phase include costs related to the replacement of the effluent pipeline as well as costs related to construction of a new administration and maintenance building for the wastewater treatment facilities, new activated sludge plant, headworks facilities, solids handling facilities, anaerobic digester rehabilitation, effluent discharge pipeline with associated dechlorination/reaeration facility and renovation and upgrading of two existing treatment plants and conversion of the existing administration building to a laboratory. The wastewater treatment plant to be constructed, the replacement pipeline, and the discharge pipeline will be located in the City. 3. The City expects to use proceeds from certificates of obligation to be issued by the City as the source of funds to pay the reimbursement expenditures. The City expects to pay debt service on the certificates of obligation from the general tax revenues and revenues derived from the City's wastewater treatment facilities. SECTION 2: This Resolution will be available for inspection by the general public at the main administrative offices of the City during normal business hours on each business day through and including the date of issue of the certificates of obligation. PASSED AND ADOPTED, this August 22, 1991. CITY OF LUBBOCK, TEXAS ,D�� May r ATTEST: Cit Secretary (City Seal) -2- 6 5 1 6 E 1-0 Resolution No. 3701 August 22, 1991 Item #28 CERTIFICATE OF CITY SECRETARY THE STATE OF TEXAS § COUNTY OF LUBBOCK § CITY OF LUBBOCK § I, the undersigned, City Secretary of the City of Lubbock, Texas, DO HEREBY CERTIFY as follows: 1. That on the 22nd day of August, 1991, the City Council of the City of Lubbock, Texas, convened in regular session at its regular meeting place in the City Hall of said City; the duly constituted members of the Council being as follows: B. C. MCMINN MAYOR T. J. PATTERSON BILL MALOY GARY D. PHILLIPS JOAN BAKER MAGGIE TREJO M.J. ADERTON MAYOR PRO TEM COUNCILMEMBER COUNCILMEMBER COUNCILMEMBER COUNCILMEMBER COUNCILMEMBER all of said persons were present at said meeting, except the following: Mayor B. C. McMinn & Councilmember M. J. Adertop Among other business considered at said meeting, the attached resolution entitled: A RESOLUTION relating to the reimbursement of City funds expended for costs of engineering services in connection with replacement of an effluent pipeline to connect the City's Southeast Water Reclamation Plant to the City's land application site east of the treatment plant and construction of a major wastewater treatment and disposal improvement and expansion project from the proceeds of sale of tax exempt obligations; and resolving other matters incident and related thereto. was introduced and submitted to the Council for passage and adoption. After presentation and due consideration of the resolution, and upon a motion made by Joan Baker and seconded by Bill Maloy the resolution was duly passed and adopted by the Council by the following vote: 5 voted "For" .0 voted "Against" 0 abstained all as shown in the official Minutes of the Council for the meeting held on the aforesaid date. .t S 2. That the attached resolution is a true and correct copy of the original on file in the official records of the City; the duly qualified and acting members of the City Council of the City on the date of the aforesaid meeting are those persons shown above and, according to the records of my office, advance notice of the time, place and purpose of the meeting was given to each member of the Council; and that said meeting, including the subject of the entitled resolution, was posted and given in advance thereof in compliance with the provisions of Article 6252-17, Section 3A, V.A.T.C.S. IN WITNESS WHEREOF, I have hereunto signed my name officially and affixed the seal of said City, this the 22nd day of August, 1991. Cit Secretary 1, City of Lubbock, Texas (City Seal) -2- 6 5 2 7 E PIG) FULBRIGHT & JAWORSKI 2200 Ross AVENUE SUITE 2800 DALLAS,TEXAS 75201 TELEPHONE• 214/855-8000 FACSIMILE: 214/855-8200 WRITERS DIRECT DIAL NUMBER: VIA FEDERAL EXPRESS Mr. Robert Massengale City of Lubbock, Texas 1625 13th Street Lubbock, Texas 79401 August 15, 1991 HOUSTON WASHINGTON, D.C. AUSTIN SAN ANTONIO DALLAS NEW YORK L05 ANGELES LONDON ZURICH HONG KONG RE: $1,655,000 City of Lubbock, Texas, Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation, Series 1991 ---------------------------- Dear Robert: Pursuant to our discussions concerning the proposed reimbursement regulations, enclosed please find: 1. Four copies of a Certificate of City Secretary relating to the resolution to be considered by the City Council on August 22, 1991. Following adoption of the Resolution, the Certificates should be completed, executed by Ranette, sealed with the seal of the City, and returned to me. 2. Four copies of the Resolution evidencing the official intent of the City to reimburse itself for certain expenditures from the proceeds of tax-exempt obligations. Following adoption of the resolution, it should be executed by the Mayor and the City Secretary and sealed with the seal of the City. One copy of the resolution is to remain in the records of the City, available for public inspection at all times until the issuance of the Series 1991 Certificates of Obligations. The remaining three copies should be returned to me. Please call if you have any questions regarding the enclosed items. Very truly yours, Mark S. Westergard MSW:lc Enclosures 0 0 0 1 1' 1)