HomeMy WebLinkAboutRes2021-100 - Repealed by Res 22-026 Sponsored by: Bower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 '
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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.
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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.