Res 1986-028 - Laserfiche WebLink

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4. Ascertain specific facilities LCRA is offering to sell to the City, including substations, transmission and distribution facilities, cus- tomer service facilities, service buildings, vehicles, work equipment, materials, inventory, and other. 5. Ascertain specifics of LCRA offer relating to unbilled service ren- dered prior to transfer date, unpaid bills at transfer date, revenues and obligations due at transfer date, and other similar considera- tions. 6. Ascertain LCRA offering price of the electric distribution system. 7. Prepare an estimate of probable cost of a five year capital improve- ment plan. 8. Estimate the total bond issue size and related annual debt serVIce requirements to provide for all costs related to acquisition including purchase cost, bond issuance expenses, legal and engineering fees, working capital, reserve funds, and an appropriate part of the pro- jected capital improvement funding requirements. 9. Prepare a pro forma statement of income and expenditures, including a forecast of revenues and revenue requirements for at least a three year period assuming municipal ownership. Revenue requirements include operation and maintenance expense, debt service, requirements for reserve funds, routine capital expenditures, major capital expen- ditures to the extent they are to be funded from current revenues, and other potential obligations of the utility system. Revenues from sales would be based on the current rates charged by LCRA with nota- tion made of any expected changes in rate levels. 10. Based on the above mentioned pro forma statement, evaluate indicated needs for rate adjustments to meet projected expenditures. Evaluate the effects on needed revenues and percentage revenue adjustments of alternative purchase prices, alternative means of financing capital improvements, and other elements of revenue requirements as appro- priate. 11. List and discuss the advantages and disadvantages of municipal owner- ship of the electric distribution system based on the studies made. 12. Make recommendations regarding the potential purchase based on the studies made. 13. Prepare and present a report to the City summarizing the Phase I studies. An oral presentation of the principal findings and recommendations result- ing from the Phase I studies is to be made at a meeting of the City Council during the first part of February, 1986. The written report summarizing study developments, findings and recommendations is to be presented to Council approximately three weeks following the oral presentation. 2