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HomeMy WebLinkAboutRes2021-100 - Repealed by Res 22-026 Sponsored by: Bower ■.• CITY OF SEWARD, ALASKA RESOLUTION 2021-100 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO PURCHASE TRANSMISSION SYSTEM MATERIALS—POLES, POLE TOP AND SUPPORT ASSEMBLIES, CONDUCTORS, INSULATORS, AND OTHER RELATED EQUIPMENT, IN THE AMOUNT OF $15,021,744 TO REPLACE AGING AND DETERIORATING EQUIPMENT AND TO UPGRADE THE SYSTEM'S VOLTAGE CAPACITY TO MEET FUTURE LOAD GROWTH WHEREAS, much of the existing transmission infrastructure along Nash Road, in substations, and in other targeted sections of the system are in poor condition and beyond their service life; and WHEREAS, the system's voltage capacity must be upgraded from its current 69kV to 115kV to meet future load growth, including plans to provide power to visiting cruise ships; and WHEREAS,the existing infrastructure,in its current state,could fail at any time,seriously compromising service reliability for customers and creating safety risks for the public and the crews who must work on the system; and WHEREAS, all the equipment and materials needed are part of an overall $19.4 million project to rebuild the "backbone" of Seward's electric transmission system, thereby helping to ensure service reliability in and around the City for the next 35 to 40 years. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to purchase transmission system equipment and materials and pay for the labor for a total amount of$15,021,744 to improve the service reliability and safety of Seward's electric transmission infrastructure. Section 2.This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of September, 2021. T EC '/ FS ' Aaakii41111111r Christy Terry, M CITY OF SEWARD, ALASKA RESOLUTION 2021-100 AYES: Baclaan, DeMoss, Casagranda, Seese, McClure, Osenga, Terry NOES: None ABSENT: None ABSTAIN: None ATTEST: /164/9?5- - Brenda J. Ballou, MMC City Clerk (City Seal')."""'8. •.•� F SEW'••. ::`y.•GOctPO�I•••'Q�.:,, • SEAL • . •�**. OF A\-Pg •° City Council Agenda Statement ' F M Meeting Date: September 13, 2021 - To: City Council Through: Janette Bower, City Manager From: Rob Montgomery, Electric Department Director Agenda Item: Resolution 2021-100: Authorizing the City Manager to Purchase Transmission System MaterialsPoles,Pole Top and Support Assemblies, Conductors, Insulators, and Other Related Equipment, in the amount of $15,021,744 to Replace Aging and Deteriorating Equipment and to Upgrade the System's Voltage Capacity to Meet Future Load Growth Background and justification: Much of the existing equipment making up Seward's electric transmission system is beyond its service life and in poor condition.In fact,many of the poles and other"system delivery" equipment along Nash Road were installed in the 1950s and `60s, and their condition makes them a high risk for service reliability and unsafe for the public and even for linemen to climb. As part of an effort to improve safety,service reliability and meet future system demand,the Electric Department must rebuild all transmission infrastructure along Nash Road and upgrade system equipment on a short section from the Seward Highway into the Fort Raymond Substation. Also,to meet future demand primarily driven by plans to provide cruise ship power,a need exists for a small substation around the harbor. Following is an estimate based upon labor,materials,design engineering and contingencies for the various projects: Nash Road Infrastructure Project($3,410,955)—Includes 88 transmission poles(wood),pole-top assemblies, support assemblies, conductors/lines, insulators and other related equipment and materials. The voltage capacity also will be upgraded from 69kV to 115kV to meet future load growth. Seward Highway Upgrade Project($426,184)—Includes 18 transmission poles(wood),pole-top assemblies, support assemblies, conductors/lines, insulators and other related equipment and materials needed to complete the last half-mile section of the transmission system feeding into the Fort Raymond Substation. Substation Voltage Conversion Project($5,581,873)—Does not include the transformers but does include labor for removing existing transformers and installing new transformers. (Note: order for new transformers to go before Council in a separate Resolution). Does include removal of existing transformers,new circuit switchers, breakers and reclosers, adding protection relays and SCADA, and other related materials and hardware. SMIC Substation Refurbishment Project ($3,498,655) — Includes refurbishing the Lawing 25MVA transformer and moving to the Spring Creek Substation as a backup, rebuilding the Load Tap Changer for voltage control,replacing fence and ground grid,replacing antique relays,replacing external oil-filled breakers and other related materials and hardware. New Harbor Substation Project($2,104,077)—Includes 22 transmission poles (wood), pole-top assemblies, support assemblies, conductors/lines, insulators and other related equipment to carry power from Fort Raymond to the new substation, substation fencing and construction, and other associated equipment and materials. The existing transmission delivery system,particularly along Nash Road,is in such poor condition that it could fail at any time, resulting in long outages that could be costly to the City and local businesses. All the equipment and materials outlined above, along with the order for seven new transformers (see the resolution regarding the transformer purchase)are part of an overall $19.4 million project to rebuild the "backbone" of Seward's electric transmission system. The new materials and equipment needed to rebuild this backbone, along with the new transformers, will help ensure service reliability in and around the city for the next 35 to 40 years. Consistency checklist: Comprehensive Plan: N/A Fiscal note: Cost of projects listed in this resolution (5): $ 15,021,744 Cost of transformers (see other resolution): $ 4,360,000 Total project cost: $ 19,381,744 Anticipated revenue bond funding $ 18,000,000 Remaining funding through electric reserves $ 1,400,000 Total project cost: $ 19,400,000 Finance Department approval: � id� Attorne Review: Yes No ❑ Not applicable OX Recommendation City Council approve Resolution 2021-100.