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HomeMy WebLinkAboutResolution - 2014-R0350 - Intent To Reimburse Self For Capital Expenditures Using Tax Exempt Obligations - 10/09/2014RESOLUTION 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, the interest on which is excludable from gross income under Section 103 of the Internal Revenue Code of 1986, as amended (the "Obligations"); 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 or renovation 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 acquisition, construction, reconstruction or renovation 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 $195,000,000. HOU:3479486.1 ADOPTED THIS day of , 2014, by the City Council of the City of Lubbock, TX. ATTEST: Rebe ca Garza City ecretary APPROVED AS TO CONTENT: MOM .. - 11! 0111,11 Executive Director of Finance APPROVED AS TO FORM: CYO"L Jerry NV. Kyle, Jr. Bond Counsel HOU:3499486.1 EXHIBIT A CERTIFICATES OF OBLIGATION Cost Estimate Administrative Services City Hall Elavator Installation $ 667,000 Airport Runway 1711/351, Construction Phase Ill 1,431,008 Airfield Asphalt Repair 5,000,000 Central Business District TIF Underground Utilities 3,000,000 Parks Park Playground Replacement 848,685 Park Pavillions 382,686 Lewis Ball Field Complex Facility Improvements 82,446 Lakewood Development 566,192 Gateway 98th Street - University Avenue to US 87 2,939,527 Internal Service Upgrade 800 MHZ Radio System to P25 Compliance 3,400,000 Library Patterson Branch Library Renovations 700,000 Public Safety Animal Shelter Expansion 100,000 New Fire Station # 1 4,765,000 Emergency Operations Center 658,800 Police Department New Facility 10,200,000 Streets Traffic Signal Controllers 300,000 Street Maintenance Program 6,324,815 Communication System Expansion 350,000 Solid Waste Cell 5 Development 2252 Cell VI Final Expansion at 69 Storm Water Northwest Lubbock and Maxey Park Project Street Intersection Drainage Improvements Wastewater Sewer Line Replacement Sewer Lines Ahead of Street Paving Water Reclamation Plant Replacements Sewer Tap Replacements $ 1,177,048 35,000 18,000,000 50,000 400,000 460,000 300,000 300,000 EXHIBIT A Water Bailey County Wellfield Improvements 14,000,000 Pumping System Improvements 500,000 Water Line Replacements 500,000 Water Lines Ahead of Street Pavings 250,000 Water Meter Replacements 450,000 Bailey County Welifield Disinfection System 2,500,000 Pump Station 10 11000,000 157,733,373 REVENUE BONDS Cost Estimate Northwest Water Reclamation Plant 53,000,000 SEWRP Solids Handling Facility Improvements 1,000,000 South Lubbock Sanitary Sewer Expansion Phase 1 95,166 South Lubbock Sanitary Sewer Expansion Phase II 16,000,000 Major Sanitary Sewer Mains Rehabilitation 6,000,000 Water Bailey County Wellfield Improvements 14,000,000 Pumping System Improvements 500,000 Water Line Replacements 500,000 Water Lines Ahead of Street Pavings 250,000 Water Meter Replacements 450,000 Bailey County Welifield Disinfection System 2,500,000 Pump Station 10 11000,000 157,733,373 REVENUE BONDS MASTER LEASE Cost Estimate Master Lease Purchase 12,597,726 Total S 190,906,099 Cost Estimate Lubbock Power and Light Air Switch Replacement 100,000 Massengale Station Outage - Medium Term 1,325,000 Substation Land Acquisition 2,000,000 Downtown Redevelopment Underground 1,000,000 Substation Breaker Replacements 500,000 69 KV Line Rebuild - Coop to Slaton 3,000,000 Quaker Storm Water Project - Feeder Rebuild 300,000 Oliver Substation Transformer Capacity Upgrade 2,500,000 Northwest Substation Feeder Circuits 200,000 Milwaukee Autotransformer 2,400,000 Mobile Substation 2,500,000 Indiana URD Cable Replacement 3,000,000 Overhead Fault Indicators 100,000 Dispatch Control Room Upgrade/Remodel 500,000 Brandon Station Outage - Medium Term 750,000 Massengale Station Outage - Long Term 400,000 20,575,000 MASTER LEASE Cost Estimate Master Lease Purchase 12,597,726 Total S 190,906,099 ANDREWS ATTORNEYS K U RT H LLP September 25, 2014 VIA OVERNIGHT DELIVERY Ms. Pamela Moon, CPA Executive Director of Finance City of Lubbock, Texas 1625 13th Street Lubbock, Texas 79401 Re: City of Lubbock, Texas - Reimbursement Resolution Dear Pam: 111 Congress Avenue. Suite 1700 Austin, Texas 78101 512.320.9200 Phone 512.320.9292 Fax endrewskunh.com Jerry V. Kyle, Jr. 512.320.9211 Phone 512.542.5211 Fax urryxyloCandrewskurin Per your request, enclosed please find six (6) copies of a reimbursement resolution, signed by me, as the City's Bond Counsel. Following approval of the resolution by the City Council and execution by the appropriate City officials, please send me one (1) fully executed copy of the resolution. Please call me at 512.320.9271 if you have any questions. Sincerely, TJV . Kyle, Jr. Encls. cc: Gregg H. Jones (Firm) Austin Beijing Dallas Dubai Houston London New York Research Triangle Park The Woodlands Washington, DC HOU:3480058.1