HomeMy WebLinkAboutResolution - 2023-R0486 - Publication, Notice Of Intention, Electric Light And Power System Revenue Bonds - 09/26/2023Resolution No. 2023-R0486
Item No. 6.18
September 26, 2023
RESOLUTTON
WHEREAS, Lubbock Power & Light is the municipally owned public power
utility of the City of Lubbock (the "City");
WHEREAS, subject to certain rights retained by the City Council of the City
(the "City Council"), Chapter 1, Article XII, Section 1, of the City Charter (the
"Charter"), provides that Lubbock Power & Light shall be governed, managed and
operated by the Electric Utility Board (the "Board");
WHEREAS, Chapter 1, Article XII, Section 1, of the Charter and Section
2.03.414 of the Code of Ordinances of the City collectively provide that the City
Council retains the sole and exclusive authority with respect to issuing bonds or
otherwise creating any indebtedness in the name of the City for the benefit of
Lubbock Power & Light that is secured by the general tax revenue of the City or
the net revenue of the Lubbock Power & Light system or the pledging of the assets
thereof;
WHEREAS, Lubbock Power & Light's staff has worked with the City's
financial advisor, bond counsel and other consultants to prepare a preliminary plan
of finance (the "Preliminary Plan of Finance") for the proposed issuance by the
City of its Lubbock Power & Light system revenue bonds (the "Bonds");
WHEREAS, the Preliminary Plan of Finance contemplates that the Bonds may
be issued from time to time in one or more series and in an aggregate principal
amount not to exceed $80,000,000 to refund certain obligations of Lubbock Power
& Light related to that certain Settlement Agreement entered into between the
City, acting by and through Lubbock Power & Light, and Southwestern Public
Service Company dated May 27, 2021, EUB Resolution No. EUB 2021-R0039,
and City Council Resolution No. 2021-R0241 (the "Settlement Agreement");
WHEREAS, the Preliminary Plan of Finance currently contemplates that the
Bonds will close upon the receipt of all necessary regulatory approvals, including
approval of the Settlement Agreement by the Public Utility Commission of Texas
and Federal Energy Regulatory Commission and the approval of the Bonds by the
Office of the Attorney General of Texas;
WHEREAS, the Board has determined that the issuance of the Bonds in
accordance with the Preliminary Plan of Finance is in the best interests of Lubbock
Power & Light, its customers, and the City and will further the Board's primary
purpose of providing dependable and reliable electric service at reasonable and
competitive rates to the citizens of the City while being financially self-sustaining;
WHEREAS, the Electric Utility Board, by resolution adopted on September 19,
2023 (a copy of which is attached hereto) approved the issuance of the Bonds in
accordance with the Preliminary Plan of Finance and recommended that the City
Council authorize the issuance.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF LUBBOCK:
THAT the City Council of the City of Lubbock hereby approves the issuance of
the Bonds in accordance with the Preliminary Plan of Finance.
Passed by the City Council of the City of Lubbock the 26 day of September
MINUTES AND CERTIFICATION PERTAINING TO
PASSAGE OF A RESOLUTION
STATE OF TEXAS §
COUNTY OF LUBBOCK §
CITY OF LUBBOCK §
On the 26th day of September, 2023, the City Council of the City of Lubbock, Texas,
convened in a regular meeting at the regular meeting place thereof, the meeting being open to the
public and notice of said meeting, giving the date, place and subject thereof, having been posted
as prescribed by Chapter 551, Texas Government Code, as amended; and the roll was called of the
duly constituted officers and members of the City Council, which officers and members are as
follows:
Tray Payne, Mayor
Christy Martinez-Garcia
Shelia Patterson Harris
Mark W. Mcbrayer
Steve Massengale
Dr. Jennifer Wilson
Latrelle Joy
)
)
) Members of
) the Council
)
)
and all of said persons were present, [except N/A ], thus constituting a quorum.
Whereupon, among other business, a written Resolution bearing the following caption was
introduced:
A RESOLUTION AUTHORIZING PUBLICATION OF A
NOTICE OF INTENTION TO ISSUE ELECTRIC LIGHT AND
POWER SYSTEM REVENUE BONDS
The Resolution, a full, true and correct copy of which is attached hereto, was read and
reviewed by the City Council. Thereupon, it was duly moved and seconded that the Resolution be
passed and adopted.
The Presiding Officer put the motion to a vote of the members of the City Council, and the
Resolution was passed and adopted by the following vote:
AYES: '7 NOES: 0 ABSTENTIONS: 4
MINUTES APPROVED AND CERTIFIED TO BE TRUE AND CORRECT, and to
correctly reflect the duly constituted officers and members of the City Council of said City, and
the attached and following copy of said Resolution is hereby certified to be a true and correct copy
of an official copy thereof on file among the official records of the City, all on this the 26th day of
September, 2023.
4145-9538-3114 I
Cit . ecretary
City of Lubbock, Texas
[SEAL]
4145-9538-3 I 14. I
Resolution No. 2023- R�$6
September 26, 2023
Item No. �,1g
A RESOLUTION AUTHORIZING PUBLICATION OF A NOTICE OF
INTENTION TO ISSUE ELECTRIC LIGHT AND POWER SYSTEM
REVENUE BONDS
WHEREAS, the City of Lubbock, Texas (the "City") intends to issue electric light and
power system revenue bonds (the "Revenue Bonds") for the purposes set forth in Exhibit A hereto;
and
WHEREAS, the City Council has found and determined that a notice of intention to issue
the Revenue Bonds should be published in accordance with the provisions of the City Charter;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK, TEXAS, THAT:
Section 1. The findings and determinations set forth in the preambles hereto are hereby
incorporated by reference for all purposes.
Section 2. The City Secretary of the City is hereby authorized and directed to publish
a notice of intention to issue the Revenue Bonds, in substantially the form set forth in Exhibit A
hereto (the "Notice") incorporated herein by reference for all purposes. The Notice shall be
published once a week for a period of thirty (30) days prior to the date set forth in the Notice for
passage of the ordinance authorizing the Revenue Bonds. Such Notice shall be published in a
newspaper of general circulation in the area of the City.
Section 3. This resolution shall take effect from and after the date of its passage.
[Signature page to follow]
4137-2047-7514. I
Resolution No. 2023- R 0486
September 26, 2023
Item No. 6�18
ADOPTED THIS September 26, 2023, by the City Council of the City of Lubbock, Texas.
APPROVED AS TO CONTENT:
D. os ich, Chie inancial Officer
APPROVED AS TO FORM:
�
Jerry . Kyle, Jr., Bond Counsel
Signature Page for Notice of Intent Resolution
4137-2047-7� 14. I
CITY OF LUBBOCK, TEXAS
Resolution No. 2023-R0486
EXHIBIT A
NOTICE OF INTENTION TO ISSUE CITY OF LUBBOCK, TEXAS
ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS
NOTICE IS HEREBY GIVEN that on November 7, 2023, at 2:00 p.m., or after, at a regular
meeting of the City Council of the City of Lubbock, Texas, to be held in the City Council Chambers
at the Citizens Tower, 1314 Avenue K, Lubbock, Texas, the regular meeting place of the City
Council, the City Council intends to pass one or more ordinances authorizing the issuance of
electric light and power system revenue bonds, in one or more series, in the maximum amount not
to exceed $80,000,000 total principal amount to refund certain obligations of Lubbock Power &
Light. A complete description of the bonds being authorized may be obtained from the Finance
Department, City of Lubbock, P.O. Box 2000, Lubbock, Texas 79457; or from RBC Capital
Markets, 200 Crescent Court, Suite 1500, Dallas Texas, 75201, Financial Advisor to the City.
THIS NOTICE is given in accordance with law and as directed by the City Council of the
City of Lubbock, Texas on September 26, 2023.
A-1
4137-2047-7514. I
RESOLUTION
WHEREAS, Lubbock Power & Light is the municipally owned public power
utility of the City of Lubbock (the "City");
WHEREAS, subject to certain rights retained by the City Council of the City
(the "City Council"), Chapter 1, Article XII, Section i, of the City Charter (the
"Charter"), provides that Lubback Power & Light shall be governed, managed and
operated by the Electric Utility Board (the "Board");
WHEREAS, Chapter 1, Article XII, Section 1, of the Charter and Section
2.03.414 of the Code of Ordinances of the City collectively provide that the City
Council retains the sole and exclusive authority with respect to issuing bonds or
otherwise creating any indebtedness in the name of the City for the beneft of
Lubbock Power & Light that is secured by the general tax revenue of the City or
the net revenue of the Lubbock Power & Light system or the pledging of the assets
thereof;
WHEREAS, Lubbock Power & Light's staff has worked with the City's
financial advisor, bond counsel and other consultants to prepare a preliminary plan
of finance (the "Preliminary Plan of Finance") for the proposed issuance by the
City of its Lubbock Power & Light system revenue bonds (the "Bonds");
WHEREAS, the Preliminary Plan of Finance contemplates that the Bonds may
be issued from time to time in one or more series and in an aggregate principal
amount not to exceed $80,000,000 to refund certain obligations of Lubbock Power
& Light related to that certain Settlement Agreement entered into between the
City, acting by and through Lubbock Power & Light, and Southwestern Public
Service Company dated May 27, 2021, EUB Resolution No. EUB 2021-R0039,
and City Cauncil Resolution No. 2021-R0201 (the "Settlement Agreement");
WHEREAS, the Preliminazy Plan of Finance currentiy contemplates that the
Bonds will close upon the receipt of all necessary regulatory approvals, including
approval of the Settlement Agreement by the Public Utility Commission of Texas
and Federal Energy Regulatory Commission and the approval of the Bonds by the
Office of the Attorney General of Texas;
WHEREAS, the Board has determined that the issuance of the Bonds in
accordance with the Preliminary Plan of Finance is in the best interests of Lubbock
Power & Light, its customers, and the City and will further the Board's primary
purpose of providing dependable and reliable electric service at reasonable and
competitive rates to the citizens of the City while being financially self-sustaining;
NOW THEREFORE, BE IT RESOLVED BY THE ELECTRIC UTILITY
BOARD OF THE CITY OF LUBBOCK:
4139-2088-T370.1
THAT the Board hereby recommends consideration of the Preliminary Plan of
Finance by the City Council.
BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF
THE C1TY OF LUBBOCK:
THAT the Board hereby recommends that the City Council authorize the issuance
of the Bonds in accordance with the Preliminary Plan of Finance.
Passed by the Board this 19th day of September, 2023.
�_
ATTEST:
Eddie Schulz, Board Secretar
APPROVED AS
Jd�y, C`hief Rdmin�str i e Officer
APPROVED AS TO FORM:
�
Jerry V. Kyle, Jr., Bond Counsel
4139-2088-7370.1