HomeMy WebLinkAboutRes2022-026 Rescind 21-100 and Purchase Electric Supplies 1.8 Million CITY OF SEWARD,ALASKA Sponsored by: Bower
RESOLUTION 2022-026
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, REPEALING RESOLUTION 2021-100 AND AUTHORIZING
THE CITY MANAGER TO PURCHASE ELECTRIC TRANSMISSION
MATERIALS (POWER POLES, LINES, POLE-TOP AND SUPPORT
ASSEMBLIES, INSULATORS AND OTHER RELATED HARDWARE) IN
THE AMOUNT OF$1,800,000 TO COMPLETE REBUILD AND UPGRADE
PROJECTS ALONG NASH ROAD AND A HALF MILE SECTION FROM
DIECKGRAEFF ROAD INTO THE FORT RAYMOND SUBSTATION
WHEREAS, much of the existing electric transmission infrastructure along Nash
Road is in poor condition and beyond its service life; and
WHEREAS, the Nash Road infrastructure, in its current state, could fail at any time,
compromising service reliability and public safety; and
WHEREAS, the voltage capacity of the Nash Road transmission system will be
upgraded from its current 69kV to 115kV capacity to serve future load growth; and
WHEREAS, the existing transmission line from Milepost 25 of the Seward Highway
into the Fort Raymond Substation is constructed to 115kV voltage capacity except the last
half-mile section from Dieckgraeff Road; and
WHEREAS, the completion of the last half-mile section from Dieckgraeff Road into
the Fort Raymond Substation will allow the City of Seward to operate this line at 115kV
capacity as system demand grows; and
WHEREAS,all of the materials needed for these projects are part of a larger initiative
to improve substations and other elements of Seward's electric transmission system to ensure
service reliability for customers for the next 35 to 40 years; and
WHEREAS,the city council adopted Resolution 2021-100 which authorized the purchase
in the amount of$15,021,744; and
WHEREAS, the city council subsequently adopted Resolution 100-023, authorizing the
sale, issuance and delivery of an electric revenue bond in a not to exceed amount of$10,000,000.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. Resolution 2021-100 is hereby repealed.
CITY OF SEWARD, ALASKA
RESOLUTION 2022-026
Section 2. The City Manager is hereby authorized to purchase electric transmission
materials in the amount of$1,800,000 to complete key projects along Nash Road and for a half-
mile section from Dieckgraeff Road into the Fort Raymond Substation.
Section 3. Funding is hereby appropriated from the Electric Enterprise Fund to be
reimbursed upon issuance of the approved Electric Revenue Bond designated for this project.
Section 4. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28`1'
day of February, 2022.
HE C SEW , ALASKA
Ch sty Terry, ayo
AYES: Calhoon, DeMoss, McClure, Osenga, Terry
NOES: None
ABSENT: Casagranda, Wells
ABSTAIN: None
ATTEST:
enda J. Bal , MC
City Clerk
(City Seal)
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City Council Agenda Statement
r
Meeting Date: February 28, 2022 �
To: City Council
Through: Janette Bower, City Manager --
From: Rob Montgomery, General Manager - Electric
Agenda Item: Resolution 2022-026: Repealing Resolution 2022-100 and Authorizing the
City Manager to Purchase Electric Transmission Materials (Power Poles,
Lines/Conductors, Insulators, Pole-top and Support Assemblies and Other
Related Hardware) in the Amount of $1,800,000 to Complete Rebuild and
Upgrade Projects Along Nash Road and a Half-mile section from Dieckgraff
Road into the Fort Raymond Substation
Background and justification:
Over the next 4-5 years, the Electric Department is planning to rebuild and upgrade much of its
electric transmission infrastructure.
The first projects the Electric Department, along with its engineering consultant and project
contractor,will undertake include 1) a rebuild and upgrade of the transmission infrastructure along
Nash Road and, 2) a rebuild and upgrade over a half-mile section from Dieckgraff Road feeding into
the Fort Raymond Substation. The work for these two projects is necessary due to aging
infrastructure that is beyond its service life and to upgrade the system's voltage capacity from its
current 69kV to 115kV.
The infrastructure along Nash Road, in particular, is in extremely poor condition and could fail at
any time. The primary reason for the work from Dieckgraff Road into the Fort Raymond Substation
is to complete the line's operating capacity. This line, which begins at the Lawing Substation at
Milepost 25 of the Seward Highway and near Moose Pass, is already constructed to 115kV capacity
except for the last half-mile section feeding into Fort Raymond. Once done, this line will be able to
operate at the higher capacity. The additional capacity will result in a more robust transmission
system overall and one that can successfully meet future growth.
Materials to complete both projects mentioned above consist of power poles, lines/conductors,
insulators, pole-top and support assemblies, and other related hardware. The engineering
consultant and the contractor have worked to finalize the materials list and to choose a lowest-cost
vendor (estimates received from at least three established vendors).
The completion of these projects, combined with the projects planned over the next three to four
years, will help ensure service reliability in and around Seward for the next 35 to 40 years.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive 3.7.1.4 "Continue to upgrade and expand utilities to meet existing needs and
Plan: encourage future development."
Strategic Plan:
Other:
Certification of Funds
Total amount of funds listed in this legislation: $ 1,800,000
This legislation (✓):
Creates revenue in the amount of: $
X Creates expenditure in amount of: $ 1,800,000
Creates a savings in the amount of: $
Has no fiscal impact
Funds are (✓):
Budgeted Line item(s):
X Not budgeted Revenue Bond funding
Not applicable
Finance Signature:
Attorney Review,/ Administration Recommendation
RYes X Adopt Resolution
X Not applicable Other: