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HomeMy WebLinkAboutResolution - 2016-R0365 - Reimburse Self For Capital Expenditures - 10/13/2016Resolution No.2016-R0365 Item No.7.13 October 13,2016 RESOLUTION EXPRESSING INTENT TO FINANCE EXPENDITURES TO BE INCURRED WHEREAS,the City of Lubbock, Texas (the"Issuer") is a politicalsubdivision of the State of Texas authorized to finance itsactivitiesby issuingdebt obligations,the intereston which isexcludable from gross incomeunder Section 103 of the Internal RevenueCode of 1986,as amended (the "Obligations"); WHEREAS,the Issuerwill make orhasmade,not morethan60 days priorto the datehereof, payments forcapitalexpenditureswith respectto the acquisition,construction,reconstruction or renovation of the projectslisted on Exhibit A attachedhereto; WHEREAS,the Issuerhasconcludedthat it does not currentlydesireto issueObligationsto financecosts associatedwith the projectslisted on Exhibit A attachedhereto; WHEREAS,the Issuer desires to reimburse itself for capital expenditures associatedwith the projects listedon Exhibit A attached heretofromthe 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 orwill be paid subsequent to the datethat is 60 days priorto the date hereof, but not more than 18 months after the date hereof, and that areto be paid in connection with the acquisition,construction, reconstruction orrenovation ofthe projects listed on Exhibit A attachedhereto from the proceeds of Obligations to be issued subsequent to the date hereof. Section 2. The Issuerreasonablyexpects thatthe maximum principalamount of Obligations issued to reimburse the Issuer forthe costs associatedwith the property listed on Exhibit A attached hereto will not exceed $180,000,000. HOU:3720679.1 ADOPTED THIS 13th day of October 2016, by the City Council of the City of Lubbock, Texas. DANIEL M. PO E, MAYOR ATTEST: ebe ,ca Garza City ecretary APPROVED AS TO CONTENT: Linda Cuellar Acting Executive Director of Finance APPROVED AS TO FORM: CYV Jerry V. Wyle, Jr. Bond Counsel HOU:3720679.I EXHIBIT A CERTIFICATES OF OBLIGATION Airport Terminal Building Remodel Central Business District TIF Underground Utilities Gateways Utility Infrastructure Upgrades/Relocations Streets Erskine Street - Indiana Avenue to Quaker Avenue Street Maintenance Program Phase II - 10 yrs 98th Street from Upland Avenue to Milwaukee Avenue Solid Waste Landfill 69 Groundwater Remediation - 5 yrs Storm Water Northwest Lubbock and Maxey Park Project Wastewater Lift Station Rehabilitation - 10 yrs Major Sanitary Sewer Mains Rehabilitation SEWRP Improvements Plant 3 Water Water Treatment Plant Improvements - 10 yrs South Lubbock Water Treatment Plant Expansion Bailey County Wellfield Improvements Pump Station 10 Lowhead C Pump Station and Supply Line Cost Estimate $ 17,000,000 3,000,000 800,000 700,000 350,000 5,395,392 3,200,000 500,000 35,000,000 500,000 2,000,000 1,000,000 2,0002000 2,000,000 14,000,000 12,000,000 750,000 100,195,392 EXHIBIT A REVENUE BONDS Cost Estimate Lubbock Power and Light Substation Land Acquisition $ 5,000,000 Fiberoptic Communication - 30 yrs 155,000 Feeder Circuits - Northwest 205,000 69/115 kV Line Rebuild - Thompson to Vicksburg - 30 yrs 980,000 115kV Line Construction - Northwest - Mackenzie - 30 yrs 15,250,000 69/115 kV Line Rebuild - Chalker to Thompson - 30 yrs 1,575,000 69/115 kV Line Rebuild - Chalker to Oliver - 30 yrs 1,475,000 Autotransformer Southeast - 30 yrs 850,000 Substation Battery Replacement - 10 yrs 200,000 Substation RTU Replacement - 10 yrs 150,000 MGL - Control System Upgrade - 10 yrs 2,600,000 Customer Service Information System - 10 yrs 2,000,000 69/115 kV Line Rebuild - Brandon - Vicksburg - 30 yrs 300,000 69/115 kV Line Rebuild - Brandon - Erskine - 30 yrs 30,000 69/115 kV Line Rebuild - Erskine - Mackenzie - 30 yrs 2,200,000 115kV Bus Expansion - Mackenzie - 30 yrs 1,000,000 Substation Capacity Upgrade - McDonald 5,000,000 Substation Capacity Upgrade - Slaton 400,000 Future Substation - North 500,000 Autotransformer - Co-op - 30 yrs 400,000 Autotransformer - Vicksburg - 30 yrs 400,000 Autotransformer - Mackenzie - 30 yrs 400,000 Substation Rebuild - Holly - 30 yrs 1,500,000 Substation Rebuild - Oliver - 30 yrs 3,000,000 Substation Rebuild - Co-op - 30 yrs 300,000 Substation Rebuild - Slaton - 30 yrs 900,000 Future Substation - New Oliver 345kV - 30 yrs 1,600,000 Future Substation - North Addition 345kV - 30 yrs 1,600,000 Future Substation - New Wadsworth 345kV - 30 yrs 1,600,000 Future Substation - Red Raider 500,000 69/115 kV Line Rebuild - Holly -Southeast - 30 yrs 250,000 69/115 kV Line Rebuild - Holly-Slaton - 30 yrs 200,000 Infrastructure Upgrade - Lubbock State School 600,000 69/115 kV Line Rebuild - Southeast -Oliver - 30 yrs 1,800,000 CKE - GT3 Inlet Filter House 600,000 CKE - Gas Yard Metering Station 100,000 MGL - Office/Warehouse 1,500,000 Substation Office Renovation 115,000 69/115 kV Line Rebuild - Co-op - Mackenzie - 30 yrs 275,000 69/115 kV Line Reconductor - Holly -Wadsworth - 30 yrs 100,000 69/115 kV Line Reconductor - Co-op - Wadsworth - 30 yrs 100,000 57.710.000 VEHICLE DEBT FINANCING PROGRAM Vehicle Debt Financing 10,513,840 Total $ 168,419,232