HomeMy WebLinkAboutAgenda Report - December 7, 2022 C-17CITY OF
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AGENDA ITEM Cam
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COUNCIL COMMUNICATION
AGENDA TITLE: Adopt Resolution Approving the Addition of the State of California 48 Megawatt Natural Gas
Power Plant Project to the Capital Improvement Program, Approving Budget and Appropriating
Funds ($4,300,000)
MEETING DATE: December 7, 2022
PREPARED BY: Budget Manager
RECOMMENDED ACTION Adopt Resolution Approving the Addition of the State of California 48 Megawatt
Natural Gas Power Plant project to the Capital Improvement Program,
Approving Budget and Appropriating Funds ($4,300,000).
BACKGROUND INFORMATION: At the November 2, 2022 City Council meeting, Council adopted resolution
2022-269 authorizing City Manager to Execute a Site Use and Services
Agreement between the City of Lodi, California Department of Water
Resources and Enchanted Rock Electric, LLC, for the location of a 48
Megawatt Natural Gas Power Plant on City -owned Property Designated as APN 015-64-008 Located Adjacent to
the Surface Water Treatment Plant (2001 W. Turner Road).
Under special legislation approved by the Governor, the California Department of Water Resources proposes
to construct a natural gas peaker plant within the City of Lodi to be run during emergency situations to protect
the integrity of the statewide power grid. This plant will be owned and operated by the State of California for 5
years with an option for the City to purchase after 5 years. This plant will also benefit the City of Lodi in the
event of a transmission capacity shortage until such time as the 230 kV Project is constructed and operational
Planning, design and construction of all electrical infrastructure, equipment and facilities to support completion
of the plant is anticipated to cost $4,300,000 which will be fully reimbursed by the State.
FISCAL IMPACT: No net impact. The State of California will reimburse costs.
FUNDING AVAILABLE: Appropriations are needed as follows.
50000000.55020 (revenue) $4,300,000
50199000.77020 (expense) $4,300,000 as set forth in the attached Capital
ImprovementProject form.
oown�tur Xiigh/
Andrew Keys
Deputy City Manager/Internal Services Director
APPROVED: Ste [ er(Nov 29, 202211:08 PST)
Stephen Schwabauer, City Manager
Capital Improvement Plan
FY 2022-2023
Project Title: State of CA Natural Gas Power Plant Munis Project Code: EUCP-23002
280
Section I: Description District Nos: 1 Project Length 10/22-6/23 Priority
High
Planning, design and construction of all electrical infrastructure equipment and facilities to support completion of State owned and operated natural gas plant within the City of Lodi.Costs
will also include
any necessary administrative and outside consulting services.
Justification/factor driving project
Under special legislation approved by the Governor, the California Department of Water Resources proposes to construct a natural gas peaker plant within the City of Lodi to be run
during emergency
situations to protect the integrity of the statewide power grid. This plant will be owned and operated by the State of California for 5 years with an option for the City to purchase after 5 years.
This plant
will also benefit the City of Lodi in the event of a transmission capacity shortage until such time as the 230 kV Project is constructed and operational.
Additional Information
All costs incurred by the City will be reimbursed by the California Department of Water Resources up to $4.3 million.
Section II: Estimated Project Costs
Expenditure Prior Years FY 21122 FY 22123 FY 23/24 FY 24125 FY 25126
FY 26127
Future Yrs
Total
Estimate Budget
Internal Staff $ $ $ 900,000
$
900,000
Contracts $ $ $ 1,500,000
$
1,500,000
Miscellaneous $ $ $ 1,900,000
$ -
$
$
1,900,000
$
_
Total Capital Costs $ $ - $ 4,300,000 $ $ $
$ $
$
4,300,000
Section III: Funding Sources/Methods c
Funding Source(s) Prior Years FY 21/22 FY 22/23
FY 23/24 FY 24/25 FY 25/26
FY 26/27 Future Yrs
Total
Estimate Budget
501 - EU Outlay Capital Reserve Fund $ $ $ 4,300,000
$
4,300,000
$
$
Total Project Financing $ $ - $ 4,300,000
$ - $ - $-
$ - $
$
4,300,000
RESOLUTION NO. 2022-298
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE ADDITION
OF THE STATE OF CALIFORNIA 48 -MEGAWATT NATURAL GAS POWER
PLANT PROJECT TO THE CAPITAL IMPROVEMENT PROGRAM;
APPROVING THE BUDGET; AND FURTHER APPROPRIATING FUNDS
WHEREAS, the Lodi City Council adopted Resolution No. 2022-269 on November 2, 2022
that authorized the City Manager to execute a Site Use and Services Agreement between the
City of Lodi, California Department of Water Resources, and Enchanted Rock Electric, LLC, for
the location of a 48 -Megawatt Natural Gas Power Plant on City -owned property designated as
APN 015-64-008 located adjacent to the Surface Water Treatment Plant (2001 West Turner
Road); and
WHEREAS, City staff has determined that the planning, design and construction of all
electrical Infrastructure, equipment and facilities to support completion of the plant is anticipated
to cost $4,300,000; and
WHEREAS, the State of California will fully reimburse the City of Lodi for said costs; and
WHEREAS, staff recommends the inclusion of the project into the FY 2022/23 Capital
Improvement Program, approving the budget, and appropriating $4,300,000 as follows:
50000000.55020 (revenue) $4,300,000
50199000.77020 (expense) $4,300,000
NOW, THEREFORE BE IT RESOLVED that the Lodi City Council does hereby authorize
the addition of the 48 -Megawatt Natural Gas Power Plant into the FY 2022/23 Capital
Improvement Program, approve of the budget, and appropriate funds in the amount of $4,300,000
as set forth above.
Dated: December 7, 2022
I hereby certify that Resolution No. 2022-298 was passed and adopted by the City Council
of the City of Lodi in a regular meeting held December 7, 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
D�Lo__q�D
OLIVIA NASHED
City Clerk
2022-298