HomeMy WebLinkAboutOrdinance - 2017-O0058 - Budget Amendment 28 - 05/25/2017First Reading Second Reading
Item No.6.4 Item No.6.3
May 11,2017 May 25, 2017
ORDINANCE NO.2017-00058
AN ORDINANCE AMENDING THE FY 2016-17 BUDGET FOR MUNICIPAL PURPOSES
RESPECTING THE CAPITAL PROGRAM TO AMEND CAPITAL IMPROVEMENT
PROJECT (CIP)92403,69/115KV LINE REBUILD:THOMPSON-VICKSBURG;CIP 92404,
115KV LINE CONSTRUCTION:NORTHWEST-MACKENZIE;CIP 92405,69/115KV LINE
REBUILD:CHALKER -THOMPSON;CIP 92406,69/115KV LINE REBUILD:CHALKER-
OLIVER;CIP 92408,69KV CAPACITOR UPGRADE -VICKSBURG;CIP 92410,69KV
CAPACITOR UPGRADE -SLATON;CIP 92458,69/115KV LINE REBUILD:BRANDON-
VICKSBURG;CIP 92460,69/115KV LINE REBUILD:ERSKINE-MACKENZIE;CIP 92461,
115KV BUS EXPANSION -MACKENZIE;CIP 92470,SUBSTATION REBUILD -
OLIVER;CIP 92473,FUTURE SUBSTATION -NEW OLIVER 345KV;CIP 92474,
FUTURE SUBSTATION -NORTH ADDITION 345KV;CIP 92475,FUTURE
SUBSTATION -NEW WADSWORTH 345KV;CIP 92480,69/115KV LINE REBUILD:
SOUTHEAST-OLIVER;CIP 92484,FY 2016-17 SUBSTATION RELAY UPGRADE;CIP
92472,SUBSTATION REBUILD -SLATON;CIP 92413,MGL -CONTROL SYSTEM
UPGRADE;CIP 92462,SUBSTATION CAPACITY UPGRADE -MCDONALD;CIP 92476,
FUTURE SUBSTATION -RED RAIDER;CIP 92503,BRN -CONTROLS SYSTEM
UPGRADE;CIP 92380,NW SUBSTATION FEEDER CIRCUITS;CIP 92464,FUTURE
SUBSTATION -NORTH;CIP 92479,INFRASTRUCTURE UPGRADE -LUBBOCK
STATE SCHOOL;CIP 92498,SUBSTATION OFFICE RENOVATION;CIP 92273,
SUBSTATION LAND ACQUISITION;CIP 92379,QUAKER STORM WATER PROJECT-
FEEDER REBUILD;CIP 92463,SUBSTATION CAPACITY UPGRADE -SLATON;CIP
92483,CKE-INLET FILTER HOUSE;CIP 92493,CKE-GAS YARD METERING STATION;
CIP 92496,MGL-OFFICE/WAREHOUSE,CIP 92488,FY 2016-17 UNDERGROUND
DISTRIBUTION;CIP 92505,MGL-ROOF REFURBISHMENT;CIP 92506,MGL-FEED
WATER PIPING HEAT TRACE AND INSULATE;CIP 92456,MGL -PROTECTIVE
RELAYS;CIP 92465,CKE-GT2 CONTROL SYSTEM UPGRADE;CIP 92482,CKE-GT3
CONTROL SYSTEM UPGRADE;CIP 92495,CKE-GT2 GENERATOR OVERHAUL;
INCREASE APPROPRIATION TO ELECTRIC PURCHASED POWER;AMEND THE
ELECTRIC OPERATING FUND RESPECTING THE PURCHASED POWER RECOVERY
FACTOR REVENUES;RESPECTING THE FRANCHISE FEE REVENUES;RESPECTING
THE TRANSFER TO THE GENERAL FUND;RESPECTING THE TRANSFER TO THE
GATEWAY FUND;INCREASE APPROPRIATION TO THE LP&L BRANDON STATION;
INCREASE APPROPRIATION TO THE LP&L MASSENGALE STATION;AMEND
ELECTRIC OPERATING FUND RESPECTING THE POWER MARKETING REVENUES;
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 departments;and
WHEREAS, the City Council deems it advisable to change the FY 2016-17 Budget for
municipal purposes and reallocate funds as follows; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT the City Council of the City of Lubbock hereby approves changes
to the City of Lubbock Budget FY 2016-17 (Budget Amendment #28) for municipal purposes,
as follows:
I. Amend Capital Improvement Project 92403, 69/115kV Line Rebuild:
Thompson -Vicksburg, by decreasing the appropriation by $250,000, from
$1,100,000 to $850,000; and decreasing the FY 2017 30-Year LP&L Revenue
Bonds by $250,000, from $980,000 to $730,000.
II. Amend Capital Improvement Project 92404, 115kV Line Construction:
Northwest —Mackenzie, by decreasing the appropriation by $13,355,000, from
$16,000,000 to $2,645,000; and decreasing the FY 2017 30-Year LP&L
Revenue Bonds by $13,355,000, from $15,250,000 to $1,895,000.
III. Amend Capital Improvement Project 92405, 69/115kV Line Rebuild: Chalker
- Thompson, by decreasing the appropriation by $765,000, from $1,800,000
to $1,035,000; and decreasing the FY 2017 30-Year LP&L Revenue Bonds
by $765,000, from $1,575,000 to $810,000.
IV. Amend Capital Improvement Project 92406, 69/115kV Line Rebuild:
Chalker -Oliver, by decreasing the appropriation by $565,000, from
$1,700,000 to $1,135,000; and decreasing the FY 2017 30-Year LP&L
Revenue Bonds by $565,000, from $1,475,000 to $910,000.
V. Close Capital Improvement Project 92408, 69KV Capacitor Upgrade —
Vicksburg, by decreasing the appropriation and funding by $50,000, from
$50,000 to $0.
VI. Close Capital Improvement Project 92410, 69KV Capacitor Upgrade —
Slaton, by decreasing the appropriation and the funding by $50,000, from
$50,000 to $0.
VII. Amend Capital Improvement Project 92458, 69/115kV Line Rebuild:
Brandon -Vicksburg, by decreasing the appropriation by $160,000, from
$300,000 to $140,000; and decreasing the FY 2017 30-Year LP&L Revenue
Bonds by $160,000, from $300,000 to $140,000.
VIII. Amend Capital Improvement Project 92460, 69/115kV Line Rebuild:
Erskine -Mackenzie, by decreasing the appropriation by $2,050,000, from
$2,200,000 to $150,000; and decreasing the FY 2017 30-Year LP&L Revenue
Bonds by $2,050,000, from $2,200,000 to $150,000.
IX. Close Capital Improvement Project 92461, 115kV Bus Expansion —
Mackenzie, by decreasing the appropriation and funding by $1,000,000, from
$1,000,000 to $0.
X. Amend Capital Improvement Project 92470, Substation Rebuild -Oliver, by
decreasing the appropriation by $2,400,000, from $3,000,000 to $600,000;
and decreasing the FY 2017 30-Year LP&L Revenue Bonds by $2,400,000,
from $3,000,000 to $600,000.
XI. Amend Capital Improvement Project 92473, Future Substation -New Oliver
345kV, by decreasing the appropriation by $1,600,000, from $1,600,000 to
$0; and decreasing the FY 2017 30-Year LP&L Revenue Bonds by
$1,600,000, from $1,600,000 to $0.
XII. Amend Capital Improvement Project 92474, Future Substation -North
Addition 345kV, by decreasing the appropriation by $1,600,000, from
$1,600,000 to $0; and decreasing the FY 2017 30-Year LP&L Revenue Bonds
by $1,600,000, from $1,600,000 to $0.
XIII. Amend Capital Improvement Project 92475, Future Substation -New
Wadsworth 345kV — by decreasing the appropriation by $1,600,000, from
$1,600,000 to $0; and decreasing the FY 2017 30-Year LP&L Revenue Bonds
by $1,600,000, from $1,600,000 to $0.
XIV. Amend Capital Improvement Project 92480, 69/115kV Line Rebuild:
Southeast -Oliver, by decreasing the appropriation by $825,000, from
$1,800,000 to $975,000; and decreasing the FY 2017 30-Year LP&L Revenue
Bonds by $825,000, from $1,800,000 to $975,000.
XV. Amend Capital Improvement Project 92484, FY 2016-17 Substation Relay
Upgrade, by increasing the appropriation by $105,000 from $510,000 to
$615,000; and changing the funding source by decreasing the FY 2017 Pay-
as-you-go by $510,000, from $510,000 to $0 and increasing the FY 2017 30-
Year LP&L Revenue Bonds by $615,000, from $0 to $615,000.
XVI. Amend Capital Improvement Project 92472, Substation Rebuild-Slaton, by
increasing the appropriation by $750,000, from $900,000 to $1,650,000; and
changing the funding source by increasing the FY 2017 30-Year LP&L
Revenue Bonds by $600,000, from $900,000 to $1,500,000 and increasing
the FY 2016 30-Year LP&L Revenue Bonds by $150,000 from $0 to
$150,000.
XVII. Amend the scope of Capital Improvement Project 92472, Substation Rebuild-
Slaton, to account for the purchase of land for the substation, as follows:
"Rebuild substation from a 69kV single bus station to a I I5kV substation.
The six breaker 69kV substation is currently rated for 69kV and must be
rebuilt to 115kV to accommodate the 115kV system conversion. The new
substation configuration, layout, and design will follow an initial substation
assessment and LP&L planning criteria. The assessment will provide LP&L
the best available options. This project will include the purchase of land,
engineering, material, and construction costs associated with rebuilding the
substation."
XVIII. Amend Capital Improvement Project 92413, MGL - Control System Upgrade
— by decreasing the appropriation by $2,200,000, from $3,600,000 to
$1,400,000; and decreasing the FY 2017 10-Year LP&L Revenue Bonds by
$2,200,000, from $2,600,000 to $400,000.
XIX. Amend Capital Improvement Project 92462, Substation Capacity Upgrade -
McDonald, by decreasing the appropriation by $4,280,000, from $5,000,000
to $720,000; and changing the funding source by decreasing the FY 2017 30-
Year LP&L Revenue Bonds by $5,000,000, from $5,000,000 to $0 and
increasing the FY 2013 LP&L Revenue Bonds by $50,000, from $0 to
$50,000, increasing the FY 2014 LP&L Revenue Bonds by $580,000, from
$0 to $580,000, and increasing the FY 2015 LP&L Revenue Bonds by
$90,000, from $0 to $90,000.
XX. Amend Capital Improvement Project 92476, Future Substation -Red Raider,
by decreasing the appropriation by $205,000, from $500,000 to $295,000; and
changing the funding source by decreasing the FY 2017 20-Year LP&L
Revenue Bonds by $500,000, from $500,000 to $0 and increasing the FY
2013 LP&L Revenue bonds by $295,000 from $0 to $295,000.
XXI. Establish Capital Improvement Project 92503, BRN-Controls System
Upgrade, and appropriate $1,100,000 for the purpose of upgrading the
reliability of Brandon Station. The funding will be $255,000 FY 201610-year
LP&L Revenue bonds and $845,000 FY 2017 10-year LP&L Revenue bonds.
XXII. Amend Capital Improvement Project 92380, NW Substation Feeder Circuits,
by changing the FY 2016-17 funding source from $205,000 FY 2017 LP&L
Revenue Bonds to $205,000 FY 2014 LP&L Revenue Bonds.
XXIII. Amend Capital Improvement Project 92464, Future Substation — North, by
changing the FY 2016-17 funding source from $500,000 FY 2017 LP&L
Revenue Bonds to $500,000 FY 2014 LP&L Revenue Bonds.
XXIV. Amend Capital Improvement Project 92479, Infrastructure Upgrade —
Lubbock State School, by changing the FY 2016-17 funding source from
$600,000 FY 2017 LP&L Revenue Bonds to $600,000 FY 2014 LP&L
Revenue Bonds.
XXV. Amend Capital Improvement Project 92498, Substation Office Renovation,
by changing the FY 2016-17 funding source from $115,000 FY 2017 LP&L
Revenue Bonds to $115,000 FY 2014 LP&L Revenue Bonds.
XXVI. Close Capital Improvement Project 92273, Substation Land Acquisition, by
decreasing the appropriation and the funding by $7,065,000, from $7,065,000
to $0
XXVII. Close Capital Improvement Project CIP 92379, Quaker Storm Water Project
- Feeder Rebuild, by decreasing the appropriation and the funding by
$300,000 from $300,000 to $0.
XXVIII. Close Capital Improvement Project 92463, Substation Capacity Upgrade-
Slaton, by decreasing the appropriation and funding by $400,000, from
$400,000 to $0.
XXIX. Close Capital Improvement Project 92483, CKE-Inlet Filter House, by
decreasing the appropriation and funding by $600,000, from $600,000 to $0.
XXX. Close Capital Improvement Project 92493, CKE-Gas Yard Metering Station,
by decreasing the appropriation and funding by $100,000 from $100,000 to
$0.
XXXI. Close Capital Improvement Project 92496, MGL-Office/Warehouse, by
decreasing the appropriation and funding by $1,500,000 from $1,500,000 to
$0.
XXXII. Amend Capital Improvement Project 92488, FY 2016-17 Underground
Distribution, by increasing the appropriation $1,720,000, from $2,035,000 to
$3,755,000; and increasing the FY 2017 LP&L Pay-as-you-go by $1,720,000,
from $2,035,000 to $3,755,000.
XXXIII. Establish Capital Improvement Project 92505, MGL-Roof Refurbishment,
and appropriate $260,000 for repair of a leaking roof at the Massengale
Station. The funding will be $260,000 FY 2017 LP&L Pay-as-you-go. The
scope and justification are as follows:
Scope: Remove the existing roof and replace with similar materials at
Massengale Station Main Plant Building.
Justification: An inspection of the roof found open roofing joints, open base
flashing laps, exposed felts, open flashing at the base of skylights, and
missing coping. The roof has been leaking as a result of these issues. The
roof is no longer maintainable and needs to be replaced.
FERC Accounts: 311
Estimated Useful Life: 15 Years
XXXIV. Establish Capital Improvement Project 92506, MGL-Feed Water Piping Heat
Trace and Insulate, and appropriate $65,000 for the purpose of installing a
piping heat trace and insulation on the feed water piping at the Massengale
Station. The funding will be $65,000 FY 2017 LP&L Pay-as-you-go. The
scope and justification are as follows:
Scope: Remove old insulation from feed water piping and feed water return
piping. Install heat trace wiring and reinsulate the pipe.
Justification: The generation unit is now operating primarily in the day -
ahead market and the units are starting and stopping much more frequently
than has historically been the case. Stopping the units during the winter
months means there is no heat in the piping to keep the water in the feed
water pipes from freezing. During the winter of 2016 there were occasions
where the unit was struck in the market during high demand and freezing
conditions. The unit was unable to come online to meet the time frame set
by the Southwest Power Pool because of freezing conditions in the pipes.
FERC Accounts: 311
Estimated Useful Life: 15 Years
XXXV. Close Capital Improvement Project 92456, MGL — Protective Relays, by
decreasing the appropriation and funding in the amount of $300,000, from
$300,000 to $0.
XXXVI. Close Capital Improvement Project 92465, CKE-GT2 Control System
Upgrade, by decreasing the appropriation and funding in the amount of
$345,000, from $345,000 to $0.
XXXVII. Close Capital Improvement Project 92482, CKE-GT3 Control System
Upgrade, by decreasing the appropriation and funding in the amount of
$475,000, from $475,000 to $0.
XXXVIII. Close Capital Improvement Project 92495, CKE-GT2 Generator Overhaul,
by decreasing the appropriation and funding in the amount of $350,000, from
$350,000 to $0.
XXXIX. Amend cost center 7315, "Electric Purchased Power", by increasing the
appropriation for purchased power costs by $13,500,000, from $146,799,874
to $160,299,874.
XL. Amend fund 211, "Electric Operating Fund", by increasing revenues for
Purchased Power Recovery Factor revenues (PPRF revenues) in the amount
of $13,500,000 million, from $146,793,244 to $160,293,244. The FY 2016-
17 budget for PPRF revenues needs to increase to offset the increased
expenses related to purchased power costs. The Electric Utility Board raised
the PPRF rates in January 2017 as a result of higher purchased power costs.
This amendment codifies the PPRF adjustments.
XLI. Amend fund 211, "Electric Operating Fund", by increasing revenues for the
franchise fee equivalent in the amount of $630,000, from $10,122,983 to
$10,752,983. The increased PPRF rates increase the franchise fee equivalent
revenues that are collected and passed -through to the General and Gateway
Funds.
XLII. Amend fund 211, "Electric Operating Fund", by increasing the appropriation
for the payment in lieu of property taxes (transfer to the General Fund) in the
amount of $135,000, from $2,138,664 to $2,273,664. The amendment is
necessary due to the increase in PPRF revenues.
XLIII. Amend fund 211, "Electric Operating Fund", by increasing the transfer to the
General Fund for the franchise fee equivalent in the amount of $405,000, from
$6,415,991 to $6,820,991. The amendment is necessary due to the increase in
PPRF revenues.
XLIV. Amend fund 211, "Electric Operating Fund", by increasing the transfer to the
Gateway Fund for the franchise fee equivalent in the amount of $270,000,
from $4,277,327 to $4,547,327. The amendment is necessary due to the
increase in PPRF revenues.
XLV. Amend cost center 7317, "LP&L Brandon Station", by increasing the
appropriation for natural gas costs by $400,000, from $311,830 to $711,830.
XLVI. Amend cost center 7318, "LP&L Massengale Station", by increasing the
appropriation for natural gas costs by $660,000, from $3,218,160 to
$3,878,160.
XLVII. Amend fund 211, "Electric Operating Fund", by increasing revenues for
Power Marketing in the amount of $1,240,000, from $4,429,983 to
$5,669,983. The FY 2016-17 budget for Power Marketing revenues needs to
increase to offset the increased expenses related to purchased natural gas
costs.
SECTION 2. THAT a copy of the changes made to the City of Lubbock Budget
pursuant to this Ordinance shall be filed with the City Secretary and County Clerk of Lubbock
as required by law.
SECTION 3. THAT should any section, paragraph, sentence, clause, phrase or word of
this Ordinance be declared unconstitutional or invalid for any reason, the remainder of this
Ordinance shall not be affected thereby.
AND IT IS SO ORDERED
Passed by the City Council on first reading on Mav 11, 2017
Passed by the City Council on second reading on May 25, 2017
DANIEL M. POPE, MAYOR
ATTEST:
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Reb cca Garza
City cretary
APPROVED AS TO CONTENT:
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Cheryl Brock
Executive Director of Budget
APPROVED AS TO FORM:
April 27, 2017