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HomeMy WebLinkAboutOrdinance - 2019-O0158 - Budget Amendment #4 - 11/19/2019 First Reading Second Reading November 5, 2019 November 19, 2019 Item No. 6.1 Item No. 6.1 ORDINANCE NO. 2019-00158 AN ORDINANCE AMENDING THE FY 2019-20 BUDGET FOR MUNICIPAL PURPOSES RESPECTING THE LUBBOCK POWER& LIGHT CAPITAL BUDGET; 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 2019-20 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 2019-20 (Budget Amendment #4)for municipal purposes, as follows: 1. Amend CIP # 92464, Future substation — X-Fab, by changing the name of the project from"Future Substation—X-Fab"to "X-Fab I I5kV Station"to better align project with construction work. II. Amend CIP # 92473, Future Substation —New Oliver 345kV, by changing the name of the project from "Future Substation — New Oliver 345kV" to "New Oliver 345/115kV Station"to better align project with construction work.The project scope and justification update is as follows: Project Scope: This project covers the engineering, purchase, installation, and testing of two 345/115kV Auto Transformers; two 345kV breakers; a new 115kV yard to accommodate the line to Oliver (92661), line to Southeast (92533), and the two transformer positions; and other equipment to establish the 345/115kV substation. Project Justification: The "4ow" approved by the PUCT, calls for two 345/115kV transformers and a new I I5kV New Oliver station. FERC Accounts: 350,352,353 Estimated Useful Life: 30 years III. Amend CIP#92475, Future Substation—New Wadsworth 345kV,by changing the name of the project from "Future Substation — New Wadsworth 345kV" to "Wadsworth 345/115kV Transformers" to better align project with construction work. The project scope and justification update is as follows: Project Scope: This project covers the engineering, purchase, and installation of two 345/115kV Auto Transformers. It also covers the engineering and purchase of two 345kV breakers,which LP&L will install. Project Justification: The "4ow" approved by the PUCT, calls for two 345/115kV transformers at LP&L's Wadsworth station. FERC Accounts: 350,352,353 Estimated Useful Life: 30 years IV. Amend CIP #92526, 115kV Line Construction— Northwest to X-Fab, by changing the name of the project from "I l5kV Line Construction -Northwest to X-Fab" to "North to X-Fab I I5kV Line"to better align project with construction work. The project scope is as follows: Project Scope: Construct a new 115kV double-circuit transmission line from the North 345/115kV Substation to the X-Fab Substation.The initial scope for this project involves a study to investigate and determine possible routes for the new transmission line. For the purpose of financial modeling, it is assumed that the line will be 15 miles long. The ultimate line length will be determined by the route selected following the routing study. The transmission line conductor is planned to be double-circuit 959.6 aluminum conductor steel supported thermal wire (ACSS/TW) with an optical ground wire (OPGW)static neutral wire. However,the final determination of the conductor is subject to change based on the engineering analyses of the physical construction. The primary factor to consider in selecting conductor is the percent loading of the line and the effective sag it has on the line. The project includes the estimated engineering, right-of-way (ROW) acquisition, routing, permitting, material, and construction cost associated with constructing the transmission line. V. Amend CIP #92533, 115kV Line Construction - SE to New Oliver to Oliver, by decreasing the appropriation and funding in the amount of $14,702,427, from $23,945,000 to $9,242,573, and changing the name of the project from "I l5kV Line Construction- SE to New Oliver to Oliver"to "New Oliver to Southeast 115kV Line"to better align project with construction work. The project scope and justification update is as follows: Project Scope: The"4ow"approved by the PUCT requires two 115kV feeds into LP&L's existing south loop. This line fulfills one of those needs. The transmission line conductor is planned to be 959.6 aluminum conductor steel supported thermal wire (ACSS/TW) with an optical ground wire (OPGW) static neutral wire. However, the final determination of the conductor is subject to change based on the engineering analysis of the physical construction.The primary factor to consider is the percent loading of the line and the effective sag it has on the line. The project includes the estimated engineering, ROW acquisition, material, and construction cost associated with constructing the transmission line. Project Justification: The existing topology of the transmission system shows no 115 kV Transmission South of the existing Oliver Substation, however, the ERCOT integration will require three (3) new 115 kV Transmission Lines to tie into the 345 kV ERCOT power grid. This line will be one of the three. The "4ow" approved by the PUCT, calls for two 115kV feeds from New Oliver substation. New Oliver to Southeast and New Oliver to Oliver transmission lines must be independent projects. FERC Accounts: 350, 355, 356 Estimated Useful Life: 30 years VI. Amend CIP #92609, Abernathy to North Transmission Line, by decreasing the appropriation and funding in the amount of $5,500,000, from $31,295,000 to $25,795,000, and changing the name of the project from "Abernathy to North Transmission Line" to "Abernathy to North Transmission 345kV Line" to better align project with construction work. The project justification update is as follows: 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. Original cost estimates were higher than what the CCN analysis developed as the official cost estimate. Reducing budgeted amount for this project to support other projects that are part of the ERCOT Integration program and were not split out during initial project budgeting. VII. Amend CIP#92610,Abernathy to Wadsworth Transmission Line,by changing the name of the project from "Abernathy to Wadsworth Transmission Line" to "Abernathy to Wadsworth Transmission 345kV Line" to better align project with construction work. Decrease the appropriation and funding in the amount of$9,000,000, from $64,825,000 to $55,825,000. This project will utilize $9.0 million less in Revolving Note Program funding. VIII. Establish CTP #92661, New Oliver to Oliver I I5kV Line and appropriate funding in the amount of $14,702,427. The project will utilize Revolving Note Program funding reallocated from CIP #92533, New Oliver to Southeast 115kV Line. The project scope and justification is as follows: Project Scope: The"4ow"approved by the PUCT requires two 115kV feeds into LP&L's existing south loop. This line fulfills one of those needs. The transmission line conductor is planned to be 959.6 aluminum conductor steel supported thermal wire (ACSS/TW) with an optical ground wire (OPGW) static neutral wire. However, the final determination of the conductor is subject to change based on the engineering analyses of the physical construction.The primary factor to consider is the percent loading of the line and the effective sag it has on the line. The project includes the estimated engineering, ROW acquisition, material, and construction cost associated with constructing the transmission line. Project Justification: The "4ow" approved by the PUCT,calls for two I I5kV feeds from New Oliver substation. New Oliver to Southeast and New Oliver to Oliver transmission lines must be independent projects. IX. Establish CIP #92662, Wadsworth Station Work (to accommodate Autotransformers), and appropriate funding in the amount of$2,000,000. The project will utilize Revolving Note Program funding reallocated from CIP #92609, Abernathy to North Transmission Line. The project scope and justification is as follows: Project Scope: This project includes the transformer pad,345kV breaker, I I5kV meters, 345kV capacitor voltage transformer (CCVT), 345kV takeoff structure, switches, bus work, control cabling, and associated protection package. Project Justification: This work is required to tie LP&L's existing Wadsworth station to the 345kV feed. The work will be executed in conjunction with Capital Improvement Project(CIP) 92666. X. Establish CIP #92663, X-Fab Station Work (to accommodate Autotransformers), and appropriate funding in the amount of$2,000,000.The project will utilize Revolving Note Program funding reallocated from CIP #92609, Abernathy to North Transmission Line. The project scope and justification is as follows: Project Scope: This project includes the transformer pad, 345kV breaker, I I5kV meters, 345kV capacitor voltage transformer (CCVT), 345kV takeoff structure, switches, bus work,control cabling,and associated protection package. If Oncor North is located away from X-Fab,this scope will change to represent only the bay additions required to receive the two 115kV circuits from Oncor North. Project Justification: This work is required to tie LP&L's existing station to the 345kV feed. The work will be executed in conjunction with Capital Improvement Project (CIP) 92464. XI. Establish CIP #92664, Oliver Station Work (to accommodate 115kV lines), and appropriate funding in the amount of$750,000. The project will utilize Revolving Note Program funding reallocated from CIP #92609, Abernathy to North Transmission Line. The project scope and justification is as follows: Project Scope: This project includes the bay addition required to receive the 115kV circuit from New Oliver, including bus, switches, breakers, take off structures, and other related materials and equipment. Project Justification: This work is required to tie LP&L's existing station to the 345kV feed. The work will be executed in conjunction with Capital Improvement Project(CIP) 92470. XII. Establish CIP #92665, Southeast Station Work (to accommodate 115kV lines), and appropriate funding in the amount of$750,000. The project will utilize Revolving Note Program funding reallocated from CIP #92609, Abernathy to North Transmission Line. The project scope and justification is as follows: Project Scope: This project includes the bay addition required to receive the 115kV circuit from New Oliver, including bus, switches, breakers,take off structures, and other related materials and equipment. Project Justification: This work is required to tie LP&L's existing station to the 345kV feed. The work will be executed in conjunction with Capital Improvement Project (CIP) 92407. XIII. Establish CIP#92666, Wadsworth Expansion, and appropriate funding in the amount of $9,000,000. The project will utilize Revolving Note Program funding reallocated from CIF #92610, Abernathy to Wadsworth Transmission Line. The project scope and justification is as follows: Project Scope: To receive the 345kV feed, Wadsworth Substation will expand to a I I AV breaker and a half arrangement in support of the 115kV conversion program and the ERCOT system integration.The project will also include installation of a new control enclosure with relay protection and abandon the 230/115kV autotransformer and 230kV line positions. This project includes installation of 115kV breakers, switches, bus, capacitor voltage transformers (CCVTs), take off structures, and other equipment to expand the I I5kV yard. Project Justification: The "4ow" as approved by the PUCT, calls for two 345/115kV transformers at LP&L's Wadsworth station. The expansion of the Wadsworth 115kV yard is required to add the necessary positions and protection for these transformers. 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, plu•ase 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 November 5, 2019 Passed by the City Council on second reading on November 19, 2019 DANIEL M. POPE, MAYOR ATTEST: j 6 JK Re ca Garza City cretary APPROVED AS TO CONTENT: ,f:� �� D. Blu Ko4telich Chief Financial Officer APPROVED AS TO FORM: A ims Deputy City Attorney ccdocs/BudgetFY 1920.Amend4.ord_2 October 29,209