HomeMy WebLinkAboutAgenda Report - June 19, 2019 C-20AGENDA ITEM C-zo
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AGENDA TITLE:
MEETING DATE: June 19,2019
PREPARED BY: Electric Utility Director
Adopt Resolution Authorizing City Manager to Execute Confirmation under Support
Services Program Agreement with Northern California Power Agency for
Engineering Services for the Northern San Joaquin 230 kV Transmission Prolect
($236,740)
RECOMMENDED AGTION Adopt a resolution authorizing the City Manager to execute a
Confirmation under the Support Services Program Agreement with
Northern California Power Agency (NCPA) for Engineering Services
for the Northern San Joaquin 230 kV Transmission Project in an
amount not to exceed $236,740.
BACKGROUND I NFORMATION The California lndependent System Operator (CAISO) has
approved the Northern San Joaquin 230 kV Transmission Project
(Prolect) to help address the area's reliability needs.
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. 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 lndustrial Substation with PG&E from 60 kV to 230 kV.
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.
PG&E is moving fonuard on the Project and 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.
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 2016-162.
According to PG&E's schedule for the Project, construction is expected to start in 2022 and be completed
by 2024. The Project is included in the City of Lodi 5-Year Capital lmprovement Program with an
estimated construction cost of approximately $30 million. The project is expected to be debt financed with
repayment of the debt to be sourced from low voltage transmission access charge (TAC) savings.
This project is in accordance with LEU's Strategic Plan by ensuring financial stability and providing
reliable electric service to existing and future customers.
APPROVED:
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Stepñén Schwaì¡au¡al, City Manager
FISCAL IMPACT:Not to exceed $236,740.
FUNDING AVAILABLE costs included in FY 2019t20 capitar Budget (project EUcp-14003)
Andrew C. Keys
Deputy City ag Director
Melissa Price
lnterim Electric Utility Director
PREPARED BY: Jules Marchesseault pE; Engineering and operations Manager
RESOLUTION 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 lndependent 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 ând equipment required to upgrade LEU's existing intertie at lndustrial 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 2Q22 and be completed by 2024', and
WHEREAS, the Project is included in the City of Lodi five-Year Capital lmprovement
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 lT 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.
3:1"=1=i:9!2=?2'=n========================================================
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 - No
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NIFER
City Clerk
201 9-1 06
FERRAIOLO