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HomeMy WebLinkAboutAgenda Report - January 5, 2022 C-03C-3 AGENDA ITEM &16% CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Adopt Resolution Authorizing Inclusion of Henning Getaway Project into FY 2021/22 Capital Improvement Program and Appropriating Funds ($450,000) MEETING DATE: January 5, 2022 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: Adopt a resolution authorizing the inclusion of the Henning Getaway Project into the FY 2021/22 Capital Improvement Program (CIP) and appropriating funds in the amount of $450,000. BACKGROUND INFORMATION. Lodi Electric Utility's (LEU) Henning Substation provides electricity to residents and businesses located in the southwest portion of the City and is one of the oldest substations currently operated by LEU. The City has experienced significant growth in the southwest area in the last several years. As a result, the existing infrastructure at the Henning Substation is approaching electric supply capacity limits. Staff have been proactive and made plans to increase the supply capacity of the substation and included a project in the City's Capital Improvement Program for FY 2022/23. One of the main underground electric supply lines at the Henning Substation recently experienced an outage. LEU staff was able to bypass that line on a temporary basis. However, in order to avoid possible service disruptions, this line needs to be repaired and expanded to accommodate future growth. Therefore, staff is recommending to move the proposed project one year forward to FY 2021/22. It is anticipated this project will start in early 2022 and extend into FY 2022/23. Any unused funds remaining at the end of this fiscal year will roll into next fiscal year. FISCAL IMPACT: This project is estimated to cost $450,000. FUNDING AVAILABLE: Staff are requesting an appropriation of funds in the amount of $450,000 from Fund 505 to 50599000.77020. Andrew Keys Andrew Keys Deputy City Manager/Internal Services Director 9A— Jeff Berkheimer Electric Utility Director APPROVED: Steve Schwabauer Stephen Schwabauer, City Manager Capital Improvement Plan FY 2021-2022 Project Title: Henning Getaway Project Munis Project Code: #197 Section I: Description District Nos: 3 Project Length 1/22-6/23 Priority High Upgrade getaway conduits and replace existing getaway conductors at Henning Substation. Justification/factor driving project Henning Substation provides electricity to residential and commercial customers in the southwest part of Lodi. Henning has historically been the most heavily loaded substation out of the four substations owned by the City. A recent distribution system study concluded that this substation is close to reaching the n-1 capacity. The southwest part of Lodi has been experiencing rapid growth in new developments in recent years. It is creating more strain on the already loaded substation. Staff is proposing to increase circuit capacities by replacing the existing conductors with bigger size to allow more power flow. This will benefit all customers who are currently supplied power from the Henning Substation in the southwest part of the City. Additional Information It is anticipated this project will continue into FY 2022/23. Any unused funds from FY 2021/22 will roll forward accordingly. Section II: Estimated Project Costs Expenditure Prior Years FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 FY 25126 Future Yrs Total Estimate Budget Internal Staff $ - $ 50,000 $ 50,000 Miscellaneous $ - $ 100,000 $ 100,000 $ 300,000 Contracts $ - $ 300,000 Total Capital Costs $ - $ - $ 450,000 $ - $ I $ - $ - $ - $ 450,000 Section III: Funding Sources/Methods of Financing Funding Source(s) Prior Years FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 FY 25126 Future Yrs Total Estimate Budget 505 - EU Substation & Trans - IMF $_ $ 450,000 $ �$ 450,000 _ - Total Project Financing $ $ $ 450,000 $ - $ $ $ - $ 450,000 Section IV Operating Budget Impact Operating Cost or (savings) Prior Years FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 FY 25126 Future Yrs Total Estimate Budget Personnel $ - $ - Other Operating Costs $ - $ - Total Operating Impact $ - $ - $ - $ - $ Is - $ - $ - $ - RESOLUTION NO. 2022-01 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING INCLUSION OF THE HENNING GETAWAY PROJECT INTO THE FISCAL YEAR 2021/22 CAPITAL IMPROVEMENT PROGRAM; AND FURTHER APPROPRIATING FUNDS ------------------------------------------------------------------------ ------------------------------------------------------------------------ WHEREAS, Lodi Electric Utility's (LEU) Henning Substation provides electricity to residents and businesses located in the southwest portion of the City and is one of the oldest substations currently operated by LEU; and WHEREAS, the City has experienced significant growth in the southwest area in the last several years and as a result, the existing infrastructure at the Henning Substation is approaching electric supply capacity limits; and WHEREAS, staff have been proactive and made plans to increase the supply capacity of the substation and included a project in the City's Capital Improvement Program for FY 2022/23; and WHEREAS, one of the main underground electric supply lines at the Henning Substation recently experienced an outage and LEU staff was able to bypass that line on a temporary basis; and WHEREAS, in order to avoid possible service disruptions, this line needs to be repaired and expanded to accommodate future growth; and WHEREAS, staff is therefore recommending to move the proposed project one year forward to FY 2021/22 and to appropriate funds in the amount of $450,000 from Fund 505 to Account No. 50599000.77020 for said project. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the inclusion of the Henning Getaway Project into the FY 2021/22 Capital Improvement Program and BE IT FURTHER RESOLVED that funds in the amount of $450,000 be appropriated as set forth above. Dated: January 5, 2022 ------------------------------------------------------------------------ ------------------------------------------------------------------------ I hereby certify that Resolution No. 2022-01 was passed and adopted by the City Council of the City of Lodi in a regular meeting held on January 5, 2022 by the following vote: AYES: COUNCIL MEMBERS — Hothi, Khan, Kuehne, Nakanishi, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None ENIFER C�JSMIR City Clerk 2022-01