HomeMy WebLinkAboutRes2015-054 Sponsored by: Hunt
CITY OF SEWARD,ALASKA
RESOLUTION 2015-054
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA,
AUTHORIZING USE OF THE CAPITAL CREDIT REFUND FROM CHUGACH
ELECTRIC IN THE AMOUNT OF $211,659 TO EXTEND PRIMARY
ELECTRICAL SERVICE AND ADD A FOURTH RECLOSER AT THE SPRING
CREEK SUBSTATION, AND APPROPRIATING FUNDS
WHEREAS,the City of Seward was issued a Capital Credit Refund in 2015 in the amount
of$211,659 from our wholesale power provider, Chugach Electric Association; and
WHEREAS, the Seward City Council finds utilization of the refund for the purpose of
constructing a primary extension and support infrastructure in the Seward Marine Industrial Center
(SMIC),to be the highest benefit to the community; and
WHEREAS,the Seward Marine Industrial Center(SMIC)is owned by the city,and has real
property lots available for lease to private sector users. Some parcels remain unleased because of the
lack of critical infrastructure; and
WHEREAS, using the capital credit refund to add a fourth recloser at the Spring Creek
Substation and install electric primary service out of the substation will provide accessibility to nine
lots that are currently not energized, and make additional city leased parcels accessible to power,
thereby promoting the development of SMIC.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The City Council approves the electric infrastructure project to add a fourth
recloser at Spring Creek Substation and install electric primary service out of the substation across to
Jellison Avenue to Mustang Avenue,continuing up to Olga Street,as detailed on the attached map,
entitled Exhibit A.
Section 2. Funding in the amount of$211,659 is hereby appropriated from the Electric
Enterprise Fund reserves account no. 15000-0000-3400 to the Electric Infrastructure account no.
15000-3010-8101.
Section 3. This resolution shall take effect immediately.
CITY OF SEWARD, ALASKA
RESOLUTION 2015-054
PASSED AND APPROVED by the City Council of the City of Seward,Alaska,this 8th day
of June.
THE CITY OF SEWARD,ALASKA
A%/
can Bardarson,Mayor
AYES: Casagranda, Keil, Terry, Squires, Darling, Bardarson
NOES: None
ABSENT: Butts
ABSTAIN: None
ATTEST:
J hanna 13_ -;, CMC '
C ty Clerk
(City Seal)
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-Agenda Statement
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Meeting Date: June 08,2015 %k' 0
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To: City Council
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Through: Jim Hunt, City Manage ti
From: John Foutz,Electric Utility Manager
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Agenda Item: Primary Extension at SMIC
BACKGROUND &JUSTIFICATION:
The City has received a lump sum capital credit from Chugach Electric Association(CEA)in the
amount of$211,659 covering the period 1989 to the present. The payment was presented at the
January 12, 2015 City Council meeting. At that meeting administration asked for feedback from
Council and the public on potential uses for the funds.
Based on input provided by individual Council members, department heads, and members of the
community, administration recommends a portion of the funds be used immediately to install a
primary electrical extension in the Seward Marine Industrial Center. Costs for this project are
estimated at $110,000. Customers here would be responsible for their costs in getting power
from the primary to the meter base, as is the case elsewhere.
The Seward Marine Industrial Center (SMIC) is owned by the City, and has lots available for
lease to private sector users. Some parcels remain unleased because of the lack of critical
infrastructure such as water, sewer and electric, and because the cost for an individual business
to extend the line(s) is often cost prohibitive and makes the venture economically unfeasible
Using the capital credit refund to add a fourth recloser at the Spring Creek Substation, install
electric primary out of the substation, across Jellison Avenue to Mustang Avenue and continuing
up Mustang to Olga Street giving accessibility to nine lots that are currently not energized. This
project is consistent with the City's focus on developing the SMIC basin and uplands, and will
aid in attracting businesses to the area.
INTENT: Extend electric primary service to nine lots in SMIC to further business development
in the area.
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan (1.3, 3.7.3.1, 3.7.3.2): Continue to upgrade and
1. expand utilities to meet existing needs and encourage future X
development.
2 Strategic Plan: The mission of the City of Seward government it is to X
provide quality, leadership and economic wellbeing of its citizens
3. Other (list): " X
.I .
FISCAL NOTE:
Funds for this project are available in the Electric Enterprise Fund from the Chugach Capital
Credits in the amount of$211,659. Administration recommends a portion of the funds be used
immediately to install a primary electrical extension in the Seward Marine Industrial Center.
Costs for this project are estimated at $110,000. An appropriation will be made for the full
$211,659, and any unspent funds will be retained,unspent, in the Electric Fund.
Approved by Finance Department:
ATTORNEY REVIEW: Yes No Not Applicable X
Re-So 1. `O n 201 — 0
RECOMMENDATION: Council authorize the use of a portion of the CEA credit to fund an
electric primary extension from the Spring Creek Substation across and to the eastern end of
Mustang Avenue,including a fourth recloser at the substation.
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