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2020-086 Hickory SubstationDate: October 9, 2020 Report No. 2020-086 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT Provide background and historic references to City Council decision to move from Air Insulated Substation (AIS) to Gas Insulated Substation (GIS) construction and associated façade for the proposed Hickory Substation located east of Bonnie Brae St, between Oak St. and Hickory St. EXECUTIVE SUMMARY: Beginning in 2014 DME has provided Council presentations, for which guidance was requested, as to their direction for construction of the future Hickory substation and its façade. This report is a collection of the historic milestones related to the Hickory Substation GIS and its facade/wall. DISCUSSION: On December 2, 2014, a City Council Work Session report (ID 14-0764), directed DME to enlist input from citizens through the creation of an Aesthetics Committee to discuss the appearance of the façade for Hickory Substation. Direction given at this meeting established an Aesthetic Committee to look at options for Hickory Substation’s façade. (Time unknown) As result of citizen comment, the idea of a gas insulated substation was introduced into the deliberations. At the City Council meeting on November 17, 2015, DME provided (ID15-10371) Council a presentation, and requested guidance, regarding the potential utilization of GIS technology for DME electric substations. The substation of topic was the proposed Eagle Substation. The presentation included information on AIS/GIS cost differences, personnel requirements, footprints, performance/reliability, operations/maintenance, as well as photo simulations2 for AIS vs. GIS. On June 21, 2016, the City Council (ID 16-7113) was requested to provide DME staff direction regarding the Hickory Substation site related to options to the station’s configuration and aesthetic treatment. The presentation included background information on the Hickory Substation site, displayed the recommendation of the Aesthetic Committee, and estimated construction costs. It was during this Council meeting that DME was given direction to build the new Hickory Substation with GIS technology as well as the Council’s preference for a façade/wall which is shown in the image below. 1 City of Denton Meeting Agenda – City Council, November 17, 2015 2 City of Denton Council Minutes, November 17, 2015 3 City of Denton Meeting Agenda – City Council, June 21, 2016 Date: October 9, 2020 Report No. 2020-086 Additional direction from this Council meeting included DME to move forward with underground transmission circuits appropriate to the construction of this substation as well as converting existing overhead distribution circuits, in the same general area, to underground. On July 18, 2017, Council approved (ID 17-8644/Consent Agenda) a Professional Services Agreement for Architectural and Design Services relating to the Hickory Substation Gas Insulated Substation Equipment Building and Screening Wall. When deliberations for both the Eagle and Hickory Substations were initiated, the plan was to have both substations equipped with two (2) transformers in each substation to provide a combined service capacity of 100 MW. With the August 18, 2020 direction from the Council to not build Eagle Substation, the design of the Hickory GIS was adjusted to compensate for the additional load serving capacity originally planned for a Hickory & Eagle Substation scenario. DME’s current plans for Hickory Substation is for it to be equipped with four (4) transformers which provides the same 100 MW capacity. Only two (2) transformers will be installed initially with the others installed as demand grows and they are justified. However, please know the footprint for Hickory Substation GIS will not change; plus, no changes are currently anticipated for the planned façade. All needed adjustments will be inside the façade. The current timeline for the design and construction of Hickory Substation is to complete its technical specifications, on or before, March 2021; issue an RFP, on or before, May 2021; and request Council approval of the design/build contract, on or before, December 2021. Hickory Substation is currently scheduled to be on-line, on or before, the summer of 2023. Please know these dates are subject to change based on conditions or other factors that may be out of the control of DME. 4 City of Denton Meeting Agenda – City Council, July 18, 2017 Date: October 9, 2020 Report No. 2020-086 The original cost estimate for the Hickory Substation was $25 million and current cost estimate for the Hickory Substation and associated costs is now $32.5 million. While this represents an increase from the initial budget, the combined cost estimate for the Hickory Substation and the Council approved Eagle Substation was $51.2 million. Elimination of the Eagle Substation coupled with changes that DME Engineering Division has recommended to the distribution system, the net capital cost savings is now estimated to be $18.6 million with increased reliability as compared to the prior two new substation plan and no change to the overall timing of planned future substations. CONCLUSION: DME has no plans to solicit additional input from the community and is moving forward with Council’s direction related to Hickory Substation construction as a GIS, its façade, and undergrounding of both transmission and distribution assets in the general area of the proposed substation. STAFF CONTACT: Jerry Fielder, P.E; Division Engineering Manager; 940-349-7173