HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/02/2000 - FIRST READING OF ORDINANCE NO. 116, 2000, APPROPRI AGENDA ITEM SUMMARY ITEM NUMBER: 25
DATE: September 5, 2000
FORT COLLINS CITY COUNCIL STAFF: Michael B. Smith
Bob Hover
SUBJECT:
First Reading of Ordinance No. 116, 2000, Appropriating $2,424,000 from Light and Power
Fund Prior Year Reserves to Relocate and Upgrade the Capacity of the Electric Substation on
Overland Trail Road.
RECOMMENDATION:
Staff and the Electric Board recommend adoption of the Ordinance on First Reading.
FINANCIAL IMPACT:
Funds are available in the Light and Power Fund's reserves. Reserves totaled $28.5 million at
year end 1999. Platte River Power Authority will reimburse the City approximately$1,000,000
for a portion of the project.
EXECUTIVE SUMMARY:
The requested appropriation will allow the Utilities to relocate the Overland Trail Substation
(Overland at Mulberry) to Platte River Power Authority's Dixon Creek substation site at
Overland Trail at Drake. The relocation was recently requested by Platte River in order to save
$600,000 per year in transmission wheeling costs. Platte River will reimburse the City for the
portion of the project related to relocation. The reimbursement is estimated to be $1,000,000. In
addition, Platte River will also contribute on-site construction needed for relocation. The on-site
construction will be a direct expenditure for Platte River. In conjunction with the relocation, the
capacity of the substation will be increased and additional ductbank and circuits will be
constructed. The construction of additional capacity was originally planned for 2004.
The appropriation requested for 2000 will be used to purchase the transformers, switch gear and
begin ground work for the substation. A supplemental appropriation of $1,348,350 has also
been requested as part of the 2001 budget exception process to complete the project in 2001.
Total cost of the two-year project is estimated to be $3,772,350. Included in the proposed
appropriation is a 1% appropriation for Art in Public Places.
ORDINANCE NO. 116, 2000
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE
LIGHT AND POWER FUND TO RELOCATE AND UPGRADE
THE CAPACITY OF THE ELECTRIC SUBSTATION ON
OVERLAND TRAIL ROAD
WHEREAS,the relocation of the Overland Trail Substation(Overland at Mulberry)to Platte
River Power Authority's Dixon Creek substation site at Overland Trail and Drake was requested by
Platte River in order to save $600,000 per year in transmission wheeling costs; and
WHEREAS, Platte River Power Authority will reimburse the City for the portion of the
project related to the relocation and will also contribute to on-site construction needed for relocation;
and
WHEREAS,the reimbursement from Platte River Power Authority related to the relocation
of the substation is estimated to be $1,000,000; and
WHEREAS, in conjunction with the relocation,the Utilities will accelerate an expansion of
the substation originally planned for 2004 in order to provide additional system capacity; and
WHEREAS, the total cost of the two-year project is estimated to be $3,772,350; and
WHEREAS,in 2000,$2,424,000 is needed to purchase transformers,switch gear,and begin
ground work for the substation and the remaining$1,348,350 to finish the project has been requested
in the 2001 budget exception process as an amendment to the adopted 2001 budget; and
WHEREAS,there are adequate prior year reserves in the Light and Power Fund to cover the
total appropriation of$2,424,000; and
WHEREAS,Article V, Section 9,of the Charter of the City of Fort Collins permits the City
Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as
may be available from reserves accumulated in prior years,notwithstanding that such reserves were
not previously appropriated; and
WHEREAS, it is the desire of the Council to appropriate the sum of$2,424,000 from prior
year reserves in the Light and Power Fund to be used in the relocation and upgrade of the electric
substation on Overland Trail Road.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the sum of TWO MILLION FOUR HUNDRED AND TWENTY-FOUR
THOUSAND DOLLARS ($2,424,000) is hereby appropriated for expenditure from prior year
reserves in the Light and Power Fund for the costs associated in the relocation and upgrade of
capacity of the Electric Substation on Overland Trail Road.
Introduced and considered favorable on first reading and ordered published this 5th day of
September, A.D. 2000, and to be presented for final passage on the 19th day of September, A.D.
2000.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 19th day of September, A.D. 2000.
Mayor
ATTEST:
City Clerk
Utilities
light & power • stormwater • wastewater • water
sia
Citv of Fort Collins
MEMORANDUM
TO: Mayor Martinez and Members of City Council
FROM: Richard Smart, Electric Board Vice-Chairman "4-j�4K 44Z"
DATE: August 17, 2000
RE: Recommendation to Approve the Proposed Additions to the 2000 and 2001
Light and Power Fund Appropriations
The Electric Board reviewed the following proposed additions to the Light and Power
Fund's 2000 and 2001 budget appropriations during our August 16, 2000 meeting:
♦ A 2000 appropriation of $2,424,000 from prior year years
♦ A 2001 budget exception of$1,348,350
• The budget additions,which total $3,772,350, are needed to fund the relocation and
enlargement of the existing substation currently located at the southwest comer of
Overland Trail and Mulberry Street. The relocation portion of the project is being done
at the request of Platte River Power Authority in order to save approximately $600,000
per year in transmission wheeling costs. Platte River will reimburse the Utilities the full
cost of the relocation portion of the project. The reimbursement is currently estimated at
$1,000,000. The portion of the project related to increase in capacity, originally planned
for 2004, is being accelerated to better coordinate with the relocation work. Both budget
amendments are needed to accomplish the advanced construction schedule. The
additional 2000 appropriation will be used for major equipment purchases; the 2001
adjustment will be used for construction and materials.
Based on our review of the substation project and the benefits to be gained by the
relocation, the Electric Board unanimously passed a motion to recommend that Council
approve the two budget amendments as proposed. If you have any questions, please do
not hesitate to contact me at 221-4474.
700140od St. • P.O. Box 580 • Fort Collins,CO 80522-0550 • (970)221-6700 • FAX(970) 221-bole • FAX (970) 221-ti595 • TDD(97))2'.-600;
e-mail: utilitiesm.ci.fort-coliins.co.us • ",wi�,.ci.fort-collins.co.usiUTILIT1Et