HomeMy WebLinkAboutRES2023-138 Chugach Electric Sponsored
OF SEWARD,ALASKA by: Sorensen
RESOLUTION 2023-138
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO PAY CHUGACH
ELECTRIC ASSOCIATION (IN 2024) FOR TRANSMISSION RIGHT-OF-
WAY CLEARING BETWEEN CEA'S DAVE'S CREEK SUBSTATION
NEAR COOPER LANDING AND SEWARD'S LAWING SUBSTATION
NEAR MOOSE PASS IN THE NOT-TO-EXCEED AMOUNT OF $423,550
AND APPROPRIATED FUNDS
WHEREAS, Seward owns the high-voltage transmission line between the Dave's Creek
and Lawing substations while CEA owns the lower voltage distribution lines attached to the same
power poles; and
WHEREAS, CEA has historically maintained this right-of-way (ROW) and carried the
expenses for clearing and maintenance on the right-of-way; and
WHEREAS, CEA and Seward Electric will each pay 50 percent of the clearing costs in
combined sections and on shared ROW, and each will pay separately for sections where only
transmission or distribution lines are present; and
WHEREAS,the clearing and maintenance work will be performed by Carlos Tree Service,
a regular contractor for CEA, and CEA will then invoice Seward for its share of the expense; and
WHEREAS, the devastating forest fires in Hawaii earlier in 2023 resulted in CEA
assessing all rights-of-way on its system and the Dave's Creek to Lawing corridor was one
identified for additional clearing and maintenance; and
WHEREAS, the additional clearing and maintenance of the ROW will help improve system
reliability and safety from forest fires.
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 pay Chugach Electric Association for
right-of-way clearing between CEA's Dave's Creek Substation and Seward's Lawing Substation.
Section 2. Funding in the not-to-exceed amount of$423,550 is hereby appropriated from
the Electric Fund reserves account no. 15000-0000-3710 transferred to the 15310-0000-7009
Transmission Line contracted services expense account.
Section 3.This resolution shall take effect immediately upon adoption.
CITY OF SEWARD,ALASKA
RESOLUTION 2023-138
Page 2 of 2
PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 18`h
day of December 2023.
THE CITY OF SEWARD,ALASKA
mow ' CI w"
Sue McClure, Mayor
AYES: Osenga, Finch, Barnwell, Crites, Calhoon, Wells, McClure
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Kris P k
City Clerk
(City Seal) •,,, oa_�,f SErjj ' 4I
Fob,
SE -
-.-
''.x tE oF�P�P.�`.
Resolution 2023-138
City Council Agenda Statement
9
Meeting Date: December 18, 2023
To: City Council
Through: Kat Sorensen, City Manager
From: Rob Montgomery, Electric General Manager
Subject: Resolution 2023-138: Authorizing The City Manager To Pay Chugach
Electric Association (CEA) For Transmission Right-Of-Way Clearing
Between CEA's Dave's Creek Substation Near Cooper Landing And
Seward's Lawing Substation Near Moose Pass In The Not-To-Exceed
Amount Of$423,550 and Appropriated Funds.
Background and justification:
The City of Seward Electric Department owns approximately 75 miles of high-voltage
transmission line. Nearly 42 miles of this transmission follows a right-of-way between Chugach
Electric Association's(CEA)Daves Creek Substation near Cooper Landing and Seward's Lawing
Substation at Milepost 25 of the Seward Highway. It's worth noting that much of this line also
includes lower voltage distribution lines owned by CEA.
CEA has historically maintained this right-of-way (ROW) while also carrying the expense to
maintain. Moving forward, CEA and Seward Electric will share the cost at 50 percent each for
combined sections and on shared ROW. In sections where only transmission lines are attached to
the poles, Seward will pay clearing and maintenance. In sections where only distribution lines are
attached to the poles, CEA will pay for clearing and maintenance.
The work on the right-of-way will be conducted by Carlos Tree Service, a contractor of CEA. The
work began in October and will continue into 2024. CEA has agreed to wait until after January 1
to invoice Seward so that expenses for the clearing and maintenance can be captured in Seward's
2024 electric rate increase.
CEA, like other utilities, conducted full assessments of its rights-of-way following the devastating
forest fires that struck Hawaii earlier in 2023. The Dave's Creek to Lawing corridor was identified
as one needing additional clearing and widening in some sections.
It is worth noting that the additional clearing and maintenance of the ROW will improve system
reliability and safety from forest fires.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: 3.7.1.4 "Continue to upgrade and expand utilities to meet existing
needs and encourage future development."
51
Resolution 2023-138
Strategic Plan: Reduce Energy Costs — Expand customer base within the Seward
Electric utility area
Other:
Certification of Funds
Total amount of funds listed in this $ 423,550
legislation:
This legislation (✓):
Creates revenue in the amount of: $
✓ Creates expenditure in amount of: $ 423,550
Creates a savings in the amount of: $
Has no fiscal impact
Funds are (✓):
Budgeted Line
item(s):
✓ Not budgeted Transmission line Fund(15310-0000-7009)
Not applicable
Fund Balance Information
Affected Fund (✓):
General SMIC Electric Wastewater
✓
Boat Harbor Parking Water F1 Healthcare
Motor Pool Other
Note: amounts are unaudited
Available Fund Balance $
Finance Director Signature:
Attorney Review
Yes Attorney
Signature:
✓ Not Comments:
applicable
52
Resolution 2023-138
Administration Recommendation
✓ Adopt
Resolution
Other:
53