HomeMy WebLinkAboutResolutions - No. 2019-106RESOLUTION NO. 2019-106
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO EXECUTE A CONFIRMATION UNDER
SUPPORT SERVICES PROGRAM AGREEMENT WITH NORTHERN
CALIFORNIA POWER AGENCY FOR ENGINEERING SERVICES FOR
NORTHERN SAN JOAQUIN 230 KV TRANSMISSION PROJECT
WHEREAS, the California Independent System Operator has approved the Northern
San Joaquin 230 kV Transmission Project (Project) to help address the area's reliability needs;
and
WHEREAS, PG&E's portion of the Project will add a double -circuit 230 kV transmission
line from PG&E's existing Lockeford Substation to a new 230 kV switching station and Lodi
Electric Utility's (LEU) portion of the Project will include the design and construction of various
facilities and equipment required to upgrade LEU's existing intertie at Industrial Substation with
PG&E from 60 kV to 230 kV; and
WHEREAS, this Project will provide additional transmission interconnection capacity to
serve Lodi and will reduce transmission access charges (TAC) by eliminating approximately
$4 million in low voltage TAC paid by LEU each year; and
WHEREAS, LEU is proposing to engage the services of Burns and McDonnell, an
outside engineering consulting firm, to provide engineering services, design, and environmental
analysis for the Project to be incorporated into PG&E's Preliminary Environmental Assessment
(PEA) scheduled to be submitted to the California Public Utilities Commission in 2020; and
WHEREAS, Burns and McDonnell is currently contracted with PG&E to complete the
PEA for the Project and is available to LEU under NCPA's Support Services Program
Agreement approved by the City Council by Resolution No. 2016-162. Construction of the
Project is expected to start in 2022 and be completed by 2024; and
WHEREAS, the Project is included in the City of Lodi five -Year Capital Improvement
Program with an estimated construction cost of approximately $30 million to be debt financed
with repayment of the debt to be sourced from low voltage TAC savings; and
WHEREAS, this project is in accordance with LEU's Strategic Plan by ensuring financial
stability and providing reliable electric service to existing and future customers.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute a Confirmation under the Support Services Program
Agreement with Northern California Power Agency for Engineering Services for the Northern
San Joaquin 230 kV Transmission Project, in an amount not to exceed $236,740.
Dated: June 19, 2019
I hereby certify that Resolution No. 2019-106 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held June 19, 2019, by the following vote:
AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, and Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Mayor Chandler
ABSTAIN: COUNCIL MEMBERS — None_
,k INNIFER M. FERRAIOLO
City Clerk
2019-106