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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/05/2001 - RESOLUTION 2001-74 AUTHORIZING THE MAYOR TO EXECUT AGENDA ITEM SUMMARY ITEM NUMBER: 20 FORT COLLINS CITY COUNCIL DATE: June 5, 2001 STAFF: Allen Boushee SUBJECT: Resolution 2001-74 Authorizing the Mayor to Execute an Intergovernmental Agreement with Platte River Power Authority for Reimbursement to the City for Costs to Relocate City's Substation from the City's Overland Trail Substation Site to Platte River Power Authority's Dixon Creek Substation Site. RECOMMENDATION: Staff recommends adoption of the Resolution. FINANCIAL IMPACT: The proposed IGA would authorize Platte River Power Authority (Platte River) to reimburse the City Light and Power Fund for expenditures required to relocate Light and Power's Overland Trail Substation to the Platte River Power Authority's Dixon Creek Substation. The reimbursement will be for actual relocations costs, currently estimated to be approximately $1,000,000. EXECUTIVE SUMMARY: The proposed Intergovernmental Agreement (IGA) is the result of negotiations with Platte River Power Authority to relocate the City's Overland Trail Substation at Platte River Power Authority's request. Relocation of the City's substation will result in annual purchase power savings to Platte River Power Authority by eliminating Western Area Power Administration (WAPA) delivery charges for power delivered through substation delivery points served solely through WAPA's transmission system. The IGA specifically defines the reimbursable work to be done by the City and the terms and conditions for effecting reimbursement. The relocatic rt will benefit both the City and Platte River. Light and Power will benefit by relocating deliver,, capacity to a site closer to its projected load center. Platte River Power Authority will benefit by avoiding WAPA energy delivery charges (wheeling charges) associated with the current Overland Trail location or, alternatively, by avoiding considerable capital investment in high voltage transmission line construction needed to mitigate these charges. BACKGROUND: Recently Platte River Power Authority conducted studies of the high voltage transmission system serving Fort Collins and the surrounding area to evaluate current needs and capabilities. In that analysis it was determined that considerable delivery charges were being incurred at substation DATE: June 5, 2001 2 ITEM NUMBER: 20 delivery locations served exclusively by WAPA transmission system. Platte River developed a plan to meet future capacity requirements and to mitigate energy delivery charges through the augmentation of the transmission system serving Fort Collins. Platte River then completed a preliminary design and cost analysis. The results of that analysis determined that the relocation of the City's Overland Trail Substation to Platte River's Dixon Creek Substation would be a lower cost alternative to transmission system augmentation and would achieve the desired reduction in WAPA delivery charges while providing adequate delivery to the western part of Fort Collins. At that time Fort Collins Light and Power was also studying options for adding substation delivery capacity to serve the west part of Fort Collins. Light and Power studies indicated additional delivery capacity would be needed by mid-2004. Fort Collins' initial plans were to evaluate three options. Option 1 was to add delivery capacity at the Overland Trail site. Option 2 was to retain the Overland Trail site delivery capacity as is and install additional delivery capacity at Platte River's Dixon Creek site. Option 3 was to add delivery capacity at Platte River's Dixon Creek substation and also to relocate the Overland Trail substation delivery capacity to the Dixon Creek site. Construction to meet Fort Collins Light and Power needs would be scheduled to have the added delivery capacity on-line in 2004. Analysis of the electric distribution system by Light and Power staff determined relocation was technically feasible and, other than economically, would be a desirable alternative to the maintenance and expansion of the Overland Trail Substation in its current location. To meet Platte River's needs, Fort Collins is now installing the capacity addition at the Dixon Creek site, and will move the existing Overland Trail Substation facilities to that site. The construction schedule has been advanced to achieve an on-line date of mid-year 2002. In return, Platte River will reimburse the City's Light and Power Fund for the additional costs resulting from relocation. This IGA defines the items to be reimbursed and the terms and conditions of reimbursement. At its August 16, 2000, meeting the Electric Board reviewed the project and the associated 2000 and 2001 budget appropriations and recommended Council adoption. In September of 2000 Council adopted Ordinance No._116, 2000, authorizing the appropriation of prior year reserves for relocation and upgrade of the capacity of the substation. RESOLUTION 2001-74 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE MAYOR TO EXECUTE AN INTERGOVERNMENTAL AGREEMENT WITH PLATTE RIVER POWER AUTHORITY FOR REIMBURSEMENT TO THE CITY FOR COSTS TO RELOCATE THE CITY'S SUBSTATION FROM THE CITY'S OVERLAND TRAIL SUBSTATION SITE TO PLATTE RIVER POWER AUTHORITY'c DIXON CREEK SUBSTATION SITE WHEREAS, Platte River Power Authority ("Platte River") has been investigating me potential rebuilding of Western Area Power Administration("WAPA") 115 kV transmission Ln(ur: from Platte River's Dixon Creek Substation to Overland Trail Substation,and on to the Laporte Tar); and WHEREAS,these transmission rebuilds were intended to provide a circuit owned by Platte River to the Overland Trail Substation to eliminate substantial wheeling expense that Platte River incurs annually for electric deliveries across the WAPA transmission system; and WHEREAS,discussions between Platte River and the City of Fort Collins("the City")staffs have developed a plan to relocate distribution facilities from the Overland Trail Substation to Platte River's Dixon Creek Substation; and WHEREAS, this relocation would save Platte River the cost of rebuilding four miles of transmission, avoid WAPA wheeling costs, and provide a location for the City to install new expanded distribution facilities with increased capacity; and WHEREAS,this intergovernmental agreement titled"Agreement for Relocation of Overland Trail Substation Facilities Between City of Fort Collins and Platte River Power Authority" (the "Agreement"),a copy of which is attached hereto as Exhibit"A"and incorporated herein,sets forth the understanding between the City and Platte River concerning the costs allocations for the relocation of distribution facilities from Overland Trail Substation to Dixon Creek Substation. NOW,THEREFORE,BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Council hereby approves the Agreement and authorizes the Mayor to execute the Agreement on behalf of the City. Passed and adopted at a regular meeting of the City Council held this 5th day of June,A.D. 2001. Mayor ATTEST: City Clerk v EXHIBIT A Agreement for Relocation of Overland Trail Substation Facilities Between City of Fort Collins and Platte River Power Authority This Agreement is made and entered into this_day of 2001,by and between the City of Fort Collins, Colorado, a municipal corporation ("the City")and the Platte River Power Authority, a Colorado political subdivision ("Platte River"). WITNESSETH : WHEREAS, Platte River has been investigating the potential rebuilding of Western Area Power Administration ('WAPA') 115 kV transmission lines from Platte River's Dixon Creek Substation to Overland Trail Substation, and on to the LaPorte Tap; and WHEREAS, these transmission rebuilds were intended to provide a circuit owned by Platte River to the Overland Trail Substation to eliminate substantial wheeling expense that Platte River incurs annually for electric deliveries across the WAPA transmission system; and WHEREAS, discussions between Platte River and the City staffs have developed a plan to relocate distribution facilities from the Overland Trail Substation to Platte River's Dixon Creek Substation; and WHEREAS, this relocation would save Platte River the cost of rebuilding four miles of transmission, avoid WAPA wheeling costs, and provide a location for the City to install new expanded distribution facilities with increased capacity; and WHEREAS, this Agreement sets forth the understanding between the City and Platte River concerning the costs allocations for the relocation of distribution facilities from Overland Trail Substation to Dixon Creek Substation. NOW, THEREFORE, in consideration of the parties' mutual promises and agreements contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,the parties hereto agree as follows: I. Platte River's Obligations A. Platte River will conduct a hydrologic study of the flood potential at Dixon Creek Substation and make whatever modifications are needed to prevent high water in Dixon Reservoir from affecting reliable electric operation. Platte River—City of Fort Collins Utilities Agreement B. Platte River will provide the City with a permanent easement for use of space at the Dixon Creek Substation for distribution substation and feeder circuit facilities, and right of entry for City personnel into the substation. Platte River and City staffs will determine the best location for the City's distribution substation and feeder circuit facilities inside Dixon Creek Substation. C. Platte River will construct two transformer foundations and associated switchgear foundations to meet the City's equipment requirements. The transformer foundations will be designed with integral oil spill containment as specified by the . City. Platte River will have soil borings completed prior to the design of the foundations. D. Platte River will reimburse the City for the cost of regulators and two three-phase, distribution feeder extensions between the Dixon Creek and Overland Trail Substations. This will allow the City to connect the new distribution service at Dixon Creek Substation to the existing feeder service at Overland Trail Substation. E. Platte River will reimburse the City for the cost of relocation of the 30/40/50 MVA power transformer from Overland Trail Substation to Dixon Creek Substation. Relocation costs will include disassembly, oil handling, packaging, crane and transportation services, re-assembly, and testing. Platte River shall pay such reimbursement to the City within thirty (30) days after receiving an invoice billing from the City. F. Platte River will reimburse the City for miscellaneous substation material and services costs such as bus, bus supports, insulators, fittings, control cable, vaults, crane services, and miscellaneous materials required to re-establish a working distribution substation facility. Platte River shall pay such reimbursement to the City within thirty(30) days after receiving an invoice billing from the City. G. Platte River will reimburse the City for one half the cost of 15 kV switchgear at the Dixon Creek Substation as the existing switchgear is indoor gear and cannot be reused at the Dixon Creek Substation. Platte River shall pay such reimbursement to the City within thirty(30)days after receiving an invoice billing from the City. H. Platte River will provide all of the transmission modifications needed to support distribution operations at Dixon Creek Substation. I. Platte River will provide fiber based communication for the City's distribution RTU from Dixon Creek Substation to the City's Service Center. 2 Platte River—City of Fort Collins Utilities Agreement I Platte River will continue to provide landscaping maintenance at Dixon Creek Substation. H. The City's Obligations A. The City will purchase and install all distribution facilities at Dixon Creel Substation, except for the Platte River responsibilities listed above. B. The City will charge Platte River for the direct cost of constructing distribution extensions between the Dixon Creek and Overland Trail Substations. This cost will not include the cost for existing conduit for the feeder extensions from Dixon Creek to the Overland Trail Substation. Standard warehouse handling charges will not apply for warehouse issued materials. C. The $430,000 substation siting incentive (pursuant to Platte River Resolution No. 23-89) will not apply as this is the relocation of an existing substation. Should the Overland Trail Substation site be redeveloped in the future, it would be considered a new substation and therefore be eligible for any siting incentive effective at the time of redevelopment. III. Mutual Obligations A. In all other respects, Platte River and the City will carry out the design, construction, and operation of the transmission and distribution facilities at Dixon Creek Substation in the same manner as other joint substation facilities in Fort Collins. B. Both Platte River and the City will use their best efforts to energize the relocated distribution facilities by the first quarter of 2002. IV. Miscellaneous Provisions A. Notwithstanding anything contained herein to the contrary, it is agreed that in the event and to the extent that fire, flood, lightening, vandalism, earthquake, natural catastrophe, explosion, acts of war, illegality, or any other cause beyond the control of either party, or strikes or labor troubles (whether or not within the power of either party to settle the same)prevents or delays performance by a party of its obligations under this Agreement, such party shall be relieved of the consequences thereof and its performance shall be suspended without liability, ?:w only for so long as and to the extent that the performance is prevented by E%�ch 3 Platte River—City of Fort Collins Utilities Agreement cause; provided,however,that each party shall exercise due diligence in its efforts to resume performance within a reasonable period of time. B. This Agreement shall be construed in accordance with the laws of the State of Colorado. In addition,the parties hereto recognize that there are legal constraints imposed upon the City and Platte River by the constitutions, statutes, rules and regulations of the State of Colorado and the United States, and imposed upon the City by the City Charter and City Code, and that, subject to such constraints, the parties intend to-carry out the terms and conditions of this Agreement. C. This Agreement shall not be assigned by either of the parties hereto without the prior written consent of the other party. D. No waiver by either of the parties hereto of any of the terms and conditions of this Agreement shall be deemed to be or shall be construed as a waiver of any other term or condition, nor shall a waiver of any breach of this Agreement be deemed to constitute a waiver of any other subsequent breach of the same provision of this Agreement. E. This Agreement shall be construed according to its fair meaning and as if it was prepared by both parties hereto and shall be deemed to be and contain the entire agreement between the parties. There shall be deemed to be no other terms, conditions, promises, understandings, statements or representations, expressed or implied,concerning this Agreement,unless set forth in writing and signed by both parties hereto. Paragraph headings in this Agreement are for convenience of reference only and in no way shall define, limit or prescribe the scope or intent to any provision of this Agreement. F. If any provision of this Agreement, or the application of such provision to any person, entity, or circumstance, shall be held to be invalid, the remainder of this Agreement, or the application of such provision to persons, entities or circumstances, other than those in which it was held invalid,shall not be affected. G. This Agreement shall be binding upon and inure the benefit of the parties hereto and their respective successors and assigns. 4 Platte River—City of Fort Collins Utilities Agreement IN WITNESS WHEREOF, the parties have executed this Agreement as of the day year first above written. CITY OF FORT COLLINS, COLORADO, a municipal corporation By: Randolph Martinez, Mayor ATTEST: City Clerk APPROVED AS TO FORM: Deputy City Attorney P0 we�44, PLAN RIVER POWER AUTHORITY, LA �an1 r�o a political su Sion a Legal Dept. Approved As By: VV�� To Form Brian H. Moeck,General Manager 5