HomeMy WebLinkAboutAgenda Report - October 5, 2022 C-14,n
47 F TY n F AGENDA ITEM C40 14
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CALIFORNIA
COUNCIL COMMUNICATION
AGENDA TITLE: Adopt a resolution authorizing the appropriation of funds to the Substation Relay
Modernization Capital Improvement Project for Fiscal Year 2023 in the amount of
$200,000.
MEETING DATE: October 5, 2022
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution authorizing the appropriation of funds to the Substation Relay
Modernization Capital Improvement Project for Fiscal Year 2023 in the amount of
$200,000.
BACKGROUND INFORMATION; Lodi Electric Utility's (LEU) Killelea Substation provides electricity to residents
and businesses located in the central portion of the City and has protective relays
that are approaching end of useful life.
The City has four substations with end -of -life or soon-to-be end -of -life protective relays that are in need of replacement.
One of the four substations was completed and modernized up to City and industry standards.
Industry practice is to consistently test and maintain equipment until end -of -life occurs, where replacement is imminent.
Industrial Substation 60kV protective relays are slated to be replaced in 2023 due to similar issues that Killelea Substation
protective relays are experiencing. LEU is standardizing all protective relays for all substations to increase training and
operational efficiencies, backup device ordering and inventory stocking, and provide familiarity for troubleshooting. While
work at Killelea Substation was originally anticipated to be completed a few years out, staff feel it is important to complete
the work sooner than later. Avoiding replacement could result in equipment reliability and public safety impacts.
The current budget for various stages of the relay upgrade work totals $1,144,073. With the additional $200,000 needed
for Killelea Substation, the revised project budget for the Substation Relay Modernization Project will total $1,344,073 for
Fiscal Year 2023.
FISCAL IMPACT: This portion of the project is estimated to cost $200,000.
FUNDING AVAILABLE. Staff are requesting an appropriation of funds in the amount of $200,000 from Fund 501
to 50199000.77020 (EUCP-22005).
Andrew Keys
Andrew Keys
Deputy City Manager/Internal Services Director
Jeff Berkheimer
Electric Utility Director
APPROVED: 5tnW 6 ISp029.792Z IF 03 P0T} _
Stephen Schwabauer, City Manager
Capital Improvement Plan
FY 2022-2023
Project Title: Substation Relay Modernization Munis Project Code: EUCP-22005 #196
Section I: Description District Nos: 2,3,4,5 Project Length 7/22-6/25 Priority High
The purpose of the multi-year project is to upgrade and modernize three of the four total substations with modern protection devices to replace outdated and end -of -life equipment. The modernization will
allow for greater protection and visibility of highly valuable substation equipment as well as the coordination of protection and power supply between Pacific Gas and Electric and Lodi Electric Utility.
Justification/factor driving project
Per Pacific Gas and Electric (PG&E), our incoming relay protection within Industrial Substation has significant cordination (device -to -device safety) issues that results in slower clearing times and reduced
reiability for all of Lodi Electric Utility's (LEU) power supply. In addition to our incoming power supply protection is the outdated equipment we have at Industrial Substation, Henning Substation, and Killelea
Substation. To solve this, substation modernization and standardization would upgrade and standardize all remaining protection and control devices, remote terminal units, and accompanied SCADA
screens. Modernizing and standardizing our substation equipment will not only increase asset reliability and protection, but will also allow for greater field worker safety due to the increased protection
capabilities built -into the equipment, proven at McLane Substation. The standardization process will eliminate the need to stock multiple vendor equipment types, while also increasing LEU Technician
understanding and familiarity of single -vendor equipment throughout all substations.
Additional Information
FY 22 and 23 includes funding in the amount of $1,024,073 + $120K for Industrial (60 W). Funds are being moved from FY 25 to FY 23 for Killelea (60 kV and 12 kV) and reduced based on identified cost
savings by performing work using existing utility staff ($200K). FY 24 includes funding for Industrial (12 kV) and also includes an updated estimate and identified cost savings ($200K). FY 25 includes
funding for Henning (60 kV and 12 kV) and also includes an updated estimate and identified cost savings ($200K).
Section II: Estimated Project Costs
Expenditure Prior Years FY 21122 FY 22123 Budget FY 23124 FY 24125
FY 25126 FY 26127 Future Yrs Total
Estimate
Internal Staff $ $ 158,000 $ 120,000 $ 120,000
$ 398,000
Contracts $ $ 1,024,073 $ 100,000 $ -
$ 1,124,073
Miscellaneous $
$ 62,000 $ 80,000 $ 80,000
$ 222,000
$ -
$
$
$ -
Total Capital Costs $ -
$ - $ - $ - $ 1,744,073
$ 1,024,073 $ 320,000 $ 200,000 $ 200,000
Section III: Funding Sources/Methods o
Funding Source(s) Prior Years FY 21122 FY 22123 Budget FY 23124
FY 24125
FY 25126
FY 26127 Future Yrs Total
Estimate
501 - EU Outlay Capital Reserve Fund $ $ 1,024,073 $ 320,000 $ 200,000
$ 1,744,073
$ 200,000
$
$ -
Total Project Financing $ - $ 1,024,073 1 $ 320,000 $ 200,000
$ 200,000
$
I $ I $ 1,744,073
RESOLUTION NO. 2022-239
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
APPROPRIATION OF FUNDS TO SUBSTATION RELAY MODERNIZATION
CAPITAL IMPROVEMENT PROJECT FOR FISCAL YEAR 2023
----------------------------------------�___ ------------------------
WHEREAS, Lodi Electric Utility's (LEU) Killelea Substation provides electricity to residents
and businesses located in the central portion of the City and has protective relays that are
approaching end of useful life; and
WHEREAS, the City has four substations with end -of -life or soon-to-be end -of -life
protective relays that are in need of replacement; and
WHEREAS, industry practice is to consistently test and maintain equipment until end -of -
life occurs, where replacement is imminent; and
WHEREAS, Industrial Substation 60kV protective relays are slated to be replaced in 2023
due to similar issues that Killelea Substation protective relays are experiencing; and
WHEREAS, LEU is standardizing all protective relays for all substations to increase
training and operational efficiencies, backup device ordering and inventory stocking, and provide
familiarity for troubleshooting; and
WHEREAS, while work at Killelea Substation was originally anticipated to be completed a
few years out, staff feel it is important to complete the work sooner as avoiding replacement will
result in equipment and public safety concerns as well as prolonged outages; and
WHEREAS, staff is recommending to appropriate funds in the amount of $200,000 from
Fund 501 to Account No. 50199000.77020 for said project (EUCP-22005).
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize
the appropriation of funds to the Substation Relay Modernization Capital Improvement Project
(EUCP-22005) for Fiscal Year 2023 in the amount of $200,000 as noted above for a total
approved budget of $1,344,073.
Dated: October 5, 2022
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I hereby certify that Resolution No. 2022-239 was passed and adopted by the City Council
of the City of Lodi in a regular meeting held on October 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
OLIVIA NASHED
City Clerk
2022-239