HomeMy WebLinkAboutOrdinance - 2019-O0012 - Budget Amendment #7 - 02/12/2019First Reading Second Reading
January 22,2019 February 12,2019
Item No.8.3 Item No.8.1
ORDINANCE NO.2019-00012
AN ORDINANCE AMENDING THE FY 2018-19 BUDGET FOR MUNICIPAL PURPOSES
RESPECTING THE CAPITAL PROGRAM TO AMEND OR ESTABLISH THE
FOLLOWING CAPITAL IMPROVEMENT PROJECTS (CIP):AMEND CIP 92561 -345KV
LINE CONSTRUCTION -ERCOT INTERCONNECTION;ESTABLISH CIP 92609 -
ABERNATHY TO NORTH TRANSMISSION LINE;ESTABLISH CIP 92610 -
ABERNATHY TO WADSWORTH TRANSMISSION LINE;ESTABLISH CIP 92611 -
WADSWORTH TO NEW OLIVER TO FARMLAND TRANSMISSION LINE;AMEND CIP
92468 -AUTOTRANSFORMER MACKENZIE;AMEND CIP 92407 -
AUTOTRANSFORMER SOUTHEAST.;PROVIDING FOR FILING;AND PROVIDING
FOR A SAVINGS CLAUSE.
WHEREAS,Section 102.010 of the Local Government Code of the State of Texas
authorizes the City Council to make changes in the budget for municipal purposes;and
WHEREAS,in accordance with the City Budget Ordinance the City Council shall
approve all transfers between funds;and
WHEREAS,the City Council deems it advisable to change the FY 2018-19 Budget for
municipal purposes and reallocate funds as follows;NOW,THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1.THAT the City Council of the City of Lubbock hereby approves changes
to the City of Lubbock Budget FY 2018-19 (Budget Amendment #7) for municipal purposes, as
follows:
I.Amend Capital Improvement Project 92561 -345KV line construction -ERCOT
Interconnection,by decreasing the appropriation and the Short Term Lending Facility
funding by $5,300,000 from $47,155,000 to $41,855,000.The project scope and
justification is as follows:
Project Scope:Certain costs related to the ERCOT interconnection transmission facilities
are not directly tied to a specific project, but will be allocated to specific projects once
all project costs are known and measurable (e.g. costs associated with Certificate of
Convenience and Necessity (CCN) filings, CCN pre-work,CCN applications,insurance,
legal costs). These project costs will be charged to this capital project fund and will be
allocated to specific ERCOT-related assets upon completion of the transmission
facilities.Additionally,this project is a placeholder in the capital program for the future
year funding of ERCOT related substations and transmission line construction.As soon
as CCNs are completed and exact locations and costs are known,those funds will be
allocated to the appropriate capital projects.
Project Justification:In Commission Docket No.47576,the Commission approved
LP&L's proposal to transition a portion of its system from the Southwest Power Pool
(SPP) electric grid to the Electric Reliability Council of Texas (ERCOT) electric grid
pursuant to a transmission interconnection plan known as Option 4ow developed by
ERCOT. The Commission determined that, under the terms of its order, the transition is
in the public interest. This project is an important part of the infrastructure costs needed
to ensure the LP&L system can safely and reliably operate in ERCOT.
FERC Accounts: 350, 352, 353, 354, 355, 356, 359
Estimated Useful Life: 30 years
II. Establish Capital Improvement Project 92609 - Abernathy to North Transmission Line
and appropriate funding of $1,550,000. The project will utilize Short Term Lending
Facility funding reallocated from Capital Improvement Project 92561 - 345 kV Line
Construction — ERCOT Interconnection. The project scope and justification is as follows:
Project Scope: The proposed transmission facilities will interconnect Sharyland's
Abernathy Station, located in Hale County, with the northern portion of LP&L's planned
115-kilovolt (kV) transmission line loop at either the X-Fab Station or the Northwest
Station in Lubbock County. Depending on the route selected by the Texas Public Utility
Commission (Commission), the transmission line(s) will be routed through one of three
alternative locations for Sharyland's proposed North Station in Lubbock County. If the
Commission selects a route that interconnects the Abernathy Station with an alternative
North Station that is located adjacent to the X-Fab Station and the north loop, the
transmission line will be a single -circuit 345-kV line on double -circuit capable structures
and will interconnect with the loop at the X-Fab Station. Alternatively, if the
Commission selects a route that requires the use of a North Station not adjacent to the X-
Fab Station, the transmission lines will include (1) a single -circuit 345-kV line on double -
circuit capable structures from the Abernathy Station to one of two additional alternative
locations for the North Station, and (2) a double -circuit 115-kV line from the North
Station location to the X-Fab Station or the Northwest Station. The transmission line(s)
will be approximately 20 to 25 miles in length, depending on the route approved by the
Commission. It is anticipated that LP&L will own the entirety of this facility.
Project Justification: In Commission Docket No. 47576, the Commission approved
LP&L's proposal to transition a portion of its system from the Southwest Power Pool
(SPP) electric grid to the Electric Reliability Council of Texas (ERCOT) electric grid
pursuant to a transmission interconnection plan known as Option 4ow developed by
ERCOT. The Commission determined that, under the terms of its order, the transition is
in the public interest. This project is an important part of the infrastructure needed to
ensure the LP&L system can safely and reliably operate in ERCOT.
FERC Accounts: 350, 352, 353, 354, 355, 356, 359
Estimated Useful Life: 30 years
III. Establish Capital Improvement Project 92610 - Abernathy to Wadsworth Transmission
Line and appropriate funding of $2,750,000. The project will utilize Short Term Lending
Facility funding reallocated from Capital Improvement Project 92561 - 345 kV Line
Construction — ERCOT Interconnection. The project scope and justification is as follows:
Project Scope: The proposed transmission facilities will connect the existing Abernathy
Station, located north of Abernathy in Hale County, to the existing Wadsworth Station,
located east of Lubbock in Lubbock County. The facilities will include a single -circuit
345-kilovolt (kV) electric transmission line on double -circuit capable structures in Hale
and Lubbock counties, Texas. The transmission line will be approximately 32 to 50 miles
in length, depending on the route selected by the Public Utility Commission of Texas
(Commission). It is anticipated that LP&L will own the entirety of this facility.
Project Justification: In Commission Docket No. 47576, the Commission approved
LP&L's proposal to transition a portion of its system from the Southwest Power Pool
(SPP) electric grid to the Electric Reliability Council of Texas (ERCOT) electric grid
pursuant to a transmission interconnection plan known as Option 4ow developed by
ERCOT. The Commission determined that, under the terms of its order, the transition is
in the public interest. This project is an important part of the infrastructure needed to
ensure the LP&L system can safely and reliably operate in ERCOT.
FERC Accounts: 350, 352, 353, 354, 355, 356, 359
Estimated Useful Life: 30 years
IV. Establish Capital Improvement Project 92611 - Wadsworth to New Oliver to Farmland
Transmission Line and appropriate funding of $1,000,000. The project will utilize Short
Term Lending Facility funding reallocated from Capital Improvement Project 92561 -
345 kV Line Construction — ERCOT Interconnection. The project scope and justification
is as follows:
Project Scope: The proposed facilities will connect the existing Wadsworth Station,
located on the east side of Lubbock in Lubbock County, to the existing Farmland Station,
located southeast of Tahoka in Lynn County. The facilities will include a single -circuit
345-kilovolt (kV) electric transmission line on double -circuit capable structures. The
transmission line will be approximately 42 to 53 miles in length, depending on the route
approved by the Public Utility Commission of Texas (Commission). This 345-kV line
will be routed through one of two alternative locations for the proposed New Oliver
Station, located on the southeast side of Lubbock in Lubbock County. It is anticipated
that LP&L will own most or all of the Wadsworth to New Oliver portion of this facility
and may also own a portion of the New Oliver to Farmland line depending on the final
ownership division point.
Project Justification: In Commission Docket No. 47576, the Commission approved
LP&L's proposal to transition a portion of its system from the Southwest Power Pool
(SPP) electric grid to the Electric Reliability Council of Texas (ERCOT) electric grid
pursuant to a transmission interconnection plan known as Option 4ow developed by
ERCOT. The Commission determined that, under the terms of its order, the transition is
in the public interest. This project is an important part of the infrastructure needed to
ensure the LP&L system can safely and reliably operate in ERCOT.
FERC Accounts: 350, 352, 353, 354, 355, 356, 359
Estimated Useful Life: 30 years
V. Amend Capital Improvement Project 92407 - Autotransformer - Southeast by increasing
the appropriation and funding by $1,500,000, from $2,830,000 to $4,330,000. The
additional appropriation will be used to fund increased expenditures as a result of a scope
change. The project will utilize Short Term Lending Facility funding. The project scope
is amended as follows:
Project Scope: Connect the existing 230/69kV 100MVA auto transformer to the existing
69kV and 230kV buses, upgrade the existing relay protection, replace the SCADA
Remote Terminal Unit (RTU, SCADA Remote Communication Terminal), and install a
second set of substation batteries and battery charger.
This substation was previously insulated at I I AV, and is operated at 69kV. The existing
relay protection includes: one existing autotransformer, one existing 230kV transmission
line, four existing 69/115kV transmission lines, and one 69/115kV substation bus.
This project includes the engineering, material, and construction costs associated with
installing the auto transformer, relay protection panels, circuit breakers, batteries, and
RTU.
This project includes the addition of a tie breaker, a terminal position, bus extension, and
associated protective relays for the 115kV line from the Southeast Substation to the New
Oliver Substation. Splitting the bus into two sections will allow for greatly increased
reliability in the event of a bus fault.
VI. Amend Capital Improvement Project 92468 - Autotransformer - Mackenzie by
increasing the appropriation and funding by $1,000,000 from $4,730,000 to $5,730,000.
The additional appropriation will be used to fund increased expenditures. The project
will utilize Short Term Lending Facility funding.
SECTION 2. THAT a copy of the changes made to the City of Lubbock Budget
pursuant to this Ordinance shall be filed with the City Secretary and County Clerk of Lubbock
as required by law.
SECTION 3. THAT should any section, paragraph, sentence, clause, phrase or word of
this Ordinance be declared unconstitutional or invalid for any reason, the remainder of this
Ordinance shall not be affected thereby.
AND IT IS SO ORDERED
Passed by the City Council on first reading on January 22, 2019
Passed by the City Council on second reading on February 12, 2019
L'�
DANIEL M. POPE, MAYOR
ATTEST:
te,cca Garza
ecretary
APPROVED AS TO CONTENT:
I � i
D. lu Ko elich
Chief Financial Officer
APPROVED AS TO FORM:
i s
y City Attorney
ccdocsBudgetFY 1819.Amend7.ord
January 9, 2019