HomeMy WebLinkAboutOrdinance - 2018-O0112 - Amending The 2017-18 Budget For Municipal Purposes, Capital Program - 09/13/2018First Reading
September 13, 2018
Item No. 6.3
ORDINANCE NO. 2018-00112
Second Reading
September 27, 2018
Item No. 6.2
AN ORDINANCE AMENDING THE FY 2017-18 BUDGET FOR MUNICIPAL PURPOSES
RESPECTING THE CAPITAL PROGRAM TO EST AB LISH CAPITAL IMPROVEMENT
PROJECT (CIP) 92564 COOKE STATION GAS TURBINE #3 (GT-3) REPAIRS; AMEND
THE ELECTRIC OPERATING FUND BY INCREASING RENTALS AND RECOVERIES
REVENUE AND INCREASING THE APPROPRIATION FOR TRANSFER TO CIP;
AMEND LP&L COOKE STATION AND DECREASE APPROPRIATION; AMEND LP&L
MASSENGALE STATION AND DECREASE APPROPRIATION; PROVIDING FOR
FILING; AND PROVIDING FOR A SAVINGS CLAUSE.
WHEREAS, Section 102.010 of the Local Government Code of the State of Texas
authorizes the City Council to make changes in the budget for municipal purposes; and
WHEREAS, in accordance with the City Budget Ordinance the City Council shall
approve all transfers between funds; and
WHEREAS, the City Council deems it advisable to change the FY 2017-18 Budget for
municipal purposes and reallocate funds as follows; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF Tl-IE CITY OF LUBBOCK:
SECTION I. THAT the City Council of the City of Lubbock hereby approves changes
to the City of Lubbock Budget FY 2017-18 (Budget Amendment #26) for municipal purposes.
as follows:
I. Establish Capital Improvement Project 92564, Cooke Station Gas Turbine #3 (GT-3)
Repairs, and appropriate funding in the amount of $1,500,000. The project will utilize
FY 2018 cash funding reallocated from the operating budget. The project scope and
justification is as follows:
Project Scope:
Restoration and complete overhaul of Gas Turbine #3 (GT-3) at Cooke Station. The
project includes engineering and repairs to the generator, turbine, control system,
electrical wiring, and auxiliary equipment.
Project Justification:
A catastrophic bearing failure occurred on GT-3 at Cooke Station and the unit is
currently inoperable. The restoration of GT-3 will eliminate capacity penalties under
the current unit contingent agreement with Southwestern Public Service (SPS)
through June 2019. Returning this generation unit to service will also provide
capacity for LP&L to serve its native load in the Southwestern Power Pool (SPP)
after the full-requirements contract with SPS expires in 2019.
II
FERC 1\crnunts: 343
EstimatcJ Usdu! Lili;: IO years
II. ,\mend fund 21 I. "Ekctric Operating Fund". by increasing n.:v1..·11u1..·s for \lisc.
Rcco,-..:rics of 1-:xpcnscs in the ammmt l>f '.5808.600. from SO to
$808,600. The FY 2017-18 budget for Misc. Recov~ries oJ' Expcnsl..'s is irn.;rcasctl as
a result or the insurance proceeds received from llartforJ Steam Boikr. l"lu: prrn.:ccds
will be useJ to offsi.:t the increased expenses related to the restoration and compktl..'
overhaul of the Cil-3 unit al Cooke Station.
Ill. Amend rnst center 7316. LP&L Cooke Station, by decreasing the appropriation for
Capital Outlay/Reimbursements by $500,000, from $500.000 to $0. for th~ purpose
of funding ClP 92564.
IV. J\1m:nd cost ccnkr 7318. LP& I. Mussengali.: Station. by decreasing tbL· apprnpriatio11
fur Capital Outlay/Rcimbursements by $191 .400. from $500,000 ID $308.600 ti.Jr lb..:
purpose of funding CIP 92564.
V. Amend fund 211. l·:lectric Opr..:rating Fund. by increasing lhr..: Transfer to ( 'apital
Program in the amnunt of $1.500.U0U, from$ I 4.450.000 to
$15.950.000.
Sl:CTION 2. TIIJ\T a copy or thr..: chang..:s made to the City ol' Lubbuck Budge!
pursuant to this Ordinance shall bi.: li!cd with the City Sccrclary and County Clerk ut' l.ubbm:k
as required by l,rn.
Sl:CTION 3. Tl IAT should any section, paragraph. sentenu:. clause. phrase or \\md ut'
this Ordinancc be declared unconstitutional or in\'alid for any reason. the remainder ur this
C )rd inanc.:L' shall no\ he afli:cted thcrcb~.
AND IT IS SO ORDERED
Passed by 1b..: City Cuuneil un lirst reading on_ Sl:_plcmbcr 13. 20!8
Passed by the City Council on s..:cond reading on __ ?e_pte_,~ber 27. 2018
DANJEL M. POPE, MJ\ YOR
APPROVED AS TO CONTENl:
_ft~,-...Z=~=------c-
0 . Blu Kost½ 1ch
Chief financial Officer
APPROVED AS TO FORM:
~c1hlcs!IJudgctFY 1718 ,\mcrid26 unl
August 27. 2018