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Home My WebLink AboutRES2023-138 Chugach Electric1 1 1 Sponsored by: Sorensen CITY OF SEWARD, ALASKA 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 day of December 2023. AYES: NOES: ABSENT: ABSTAIN: ATTEST: the City Council of the City of Seward, Alaska this 18th THE CITY OF SEWARD, ALASKA C LA - Sue McClure, Mayor Osenga, Finch, Barnwell, Crites, Calhoon, Wells, McClure None None None lli Kris P k City Clerk (City Seal) 1 City Council Agenda Statement 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." 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 legislation: This legislation (✓): Creates revenue in the amount of: $ Creates expenditure in amount of: $ 423,550 $ 423,550 Creates a savings in the amount of: $ Has no fiscal impact Funds are (V): Budgeted Line item(s): Not budgeted Not applicable Transmission line Fund (15310-0000-7009) Fund Balance Information Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance SMIC Parking Other Electric Water Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: 's* 9"4" Yes Not applicable Attorney Signature: Comments: Administration Recommendation Adopt Resolution Other: