South Daytona Electric Utility. Operation and Maintenance
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1 South Daytona Electric Utility Operation and Maintenance 1
2 Topics South Daytona s Electric System Municipal Electric Utility Visits The Winter Park Model Operation and Maintenance RFP ENCO Bid ENCO Company Profile Personnel Equipment Inventory Operations Center 2
3 Topics, con t Operations Center Site Example Outage Management System Call Center Maintenance Priorities Routine Operation and Maintenance Activities Tree Trimming Transmission and Substation Equipment Maintenance Storm Response Construction Work Plan Closing 3
4 South Daytona s Electric System There are roughly 7,506 electric service meters in the City of South Daytona. The City s electric system will consist of two substations with redundant capacity. The electric system is aging but, with a focus on maintenance, can be brought into a good operational condition. The peak load for the City is around 28 Megawatts. 4
5 Municipal Electric Utility Visits The City visited and held lengthy consultations with Municipal Electric Utilities throughout Florida regarding the operation and maintenance of an electric system. These entities included the Cities of Bartow, Jacksonville Beach, Mount Dora, New Smyrna Beach and Winter Park. From these visits, we learned the number of service personnel that would be required to operate and maintain an electric system of our size to ensure reliability. 5
6 The Winter Park Model The City of Winter Park was of particular interest because of their recent formation and split from Progress Energy. Winter Park utilizes an independent contractor to operate and maintain their electric system. They are in their sixth year of operation and have succeeded in providing a level of reliability that they were not receiving from Progress Energy. In 2011, Winter Park showed a $5 million net profit based on a rate that was 10% lower than Progress Energy. Based on our research and the success of the Winter Park model, it was decided to contract the operation and maintenance of our electric utility just as they did. 6
7 Operation and Maintenance RFP In August 2011, the City issued a Request for Proposals (RFP) for the operation and maintenance of our electric system. The City received a total of five bids in response to our request. ENCO Utility Services (ENCO) was ranked highest among the prospective bidders based on their proposal, references and competitive price. 7
8 ENCO Bid The bid submitted by ENCO includes the following which will be used to maintain our electric system: Six Full Time Personnel Service Fleet All Tools and Safety Items Outage Management System The first year s Fixed Annual Fee is $1,254,800 On November 8, 2011, the City Council authorized staff to negotiate and execute a maintenance contract with ENCO for the operation and maintenance of our electric system. 8
9 ENCO Company Profile Formed in 1997 as Edison Utility Services an Edison International Subsidiary. In 2002, the name was changed to ENCO Utility Services. ENCO is a provider of fully bundled retail electric distribution services. Their major customers are local governments and municipal agencies that are new to the retail electric distribution business. ENCO s current major customers are provided below: City of Winter Park, FL (14,800 meters; ENCO customer for 6+ years) Electrical District #3, AZ (12,100 meters; ENCO customer for 9+ years) City of Moreno Valley, CA (5,600 meters; ENCO customer for 7+ years) City of Industry, CA (80 meters; ENCO customer for 10+ years) 9
10 Personnel Public Works Director City Employee Ultimately responsible for the operation, maintenance and management of all utilities, including electric. Plans, directs, organizes and controls all aspects of the Public Works Department which is comprised of the Electric Utility Division, Streets and Stormwater Maintenance Division, Water and Wastewater Division and Fleet Maintenance Division. Operations Manager City Employee Assists in the management of all activities pertaining to the Electric Utility Division. Administers the contract for the operation and maintenance of the City s electric system. Assists in the development of policy and procedure, establishment of long range plans, management of activities and events, preparation of the budget, procurement of material and preparation of reliability reports for the electric utility. 10
11 Personnel, con t General Foreman ENCO Employee Oversees and ensures the efficient restoration of electric service outages. Accountable for scheduling work crews and overall crew productivity. Ensures compliance with ENCO safety rules. Operates as a lineman when needed. Working Crew Foreman ENCO Employee Layout jobs and works with a crew to complete various tasks such as setting poles and stringing wire. Operation and Maintenance of all support equipment. Provides communication between field crews and management. 11
12 Personnel, con t Troubleman ENCO Employee Performs all types of work involved with the installation, rearrangement, maintenance, operation, removal and inspection of electrical distribution facilities. Provide first response to trouble calls, investigates, corrects and clears trouble, and provides assistance to construction and repair crews, as required. Three Linemen ENCO Employees Installs, Repairs and Maintains the network of lines and cable that provide electricity. Two Meter Readers City Employees Responsible for reading and recording all electric and water meters throughout the City. 12
13 Equipment Digger / Derrick Truck Supplied by ENCO 13
14 Equipment, con t Double Bucket Truck Supplied by ENCO 14
15 Equipment, con t Troubleman s Bucket Truck Supplied by ENCO 15
16 Equipment, con t Stake Bed Truck Supplied by ENCO 16
17 Equipment, con t Cable Locate Van Supplied by ENCO 17
18 Equipment, con t Two Service Trucks for General Foreman and Working Crew Foreman Supplied by ENCO 18
19 Equipment, con t Three Service Trucks for Meter Readers and Operations Manager Supplied by the City from our existing fleet 19
20 Equipment, con t Tools and Safety Gear Supplied by ENCO 20
21 Inventory All inventory is to be purchased and supplied by the City. The City will keep an inventory log managed by the Operations Manager. All inventory items used must be signed out so that they can be replaced in a timely manner. In emergency situations, the City will also be able to use inventory from other municipalities and will have agreements on hand with local supply houses to guarantee availability of inventory deemed critical. On long-lead items, such as the larger transformers, there will be at least one replacement and one spare kept in inventory. Start up inventory will be capitalized. 21
22 Inventory, con t Overhead Material Copper Wire various sizes Downguy Wire 1/0 ACSR Wire 4/0 ACSR Wire 1/0 Triplex Wire 4/0 Triplex Wire Quadraplex Wire Crossarms 600 2,000 4,000 3,000 8,000 5,000 1, kva Transformer 50 kva Transformer 100 kva Transformer 167 kva Transformer Fixed Capacitor 400 kvar 45 Pole 50 Pole 60 Pole Overhead Equipment 22
23 Inventory, con t Underground Material 25 kv Cable various sizes Fuseholders SMU Fuses Various Sizes Handholes Pullboxes Meter Pedestals Underground Equipment PME Switches various sizes Padmount Transformers various sizes 10,
24 Operations Center The City will rent a secure warehouse facility with office capabilities to house our Operations Center. The Operations Center will house ENCO personnel and the City s Operations Manager. The Operations Center will have: 5,000 square feet of indoor storage space for weather sensitive inventory One or more acres of secured outdoor storage space 2,000 square feet of office space The City has identified possible sites around South Daytona that would fit our parameters. Rent is expected to range between $53,000 to $84,000 annually depending on the size and location of the facility. 24
25 Operations Center Site Example 25
26 Outage Management System The City will install a Supervisory Control and Data Acquisition (SCADA) System to monitor and control the performance of the transmission, substation and distribution facilities. The SCADA system will signal when a facility or component of the electrical system is not operating within parameters, which could prevent an outage. ENCO will implement a computerized Outage Management System (OMS) which will take our SCADA readings and display it in a user friendly format. The OMS will be displayed on a screen in every office of the Operations Center and Public Works Administrative Building for monitoring purposes. The entire OMS will take about 60 days to install. 26
27 Outage Management System con t In the event of an outage, the OMS will signal an alarm so crews can be dispatched to the problem before any resident has a chance to call in. City staff will also be dispatched to the affected area to talk with residents and let them know what is being done and how long to expect the outage to last. The OMS will identify what the nature of the problem is so work crews will know what to repair or replace before they get to the site. The OMS will be interactive so information about an outage, such as the exact problem and how long the outage is expected to last, can be inputted in the system and shared with all personnel. Also the OMS can indicate which services have special needs such as the dependence on oxygen so we can address those issues first. 27
28 Call Center The goal of our telephone system is to have a knowledgeable person answer the phone and dispatch crews as necessary. The phone system at the Public Works Department will be revamped so that residents or business owners would call to request an electric system related service or report outages. There will be four dedicated lines to the Electric Utility at Public Works. After-hours and during emergencies, ENCO will supplement our telephone system by providing a call center with 71 dedicated lines operating at 24 hours a day to the City of South Daytona. All persons answering the phone, both at Public Works and the ENCO call center, will have our OMS on-screen and be able to effectively communicate to each caller about what the problem is and how long it will take to bring the system back up. The supplemental call center will be charged on a per call basis and is estimated to cost $21,000 annually. 28
29 Maintenance Priorities The goal for the first 5 years of operation will be to improve the electric system for the purposes of increasing reliability. We will begin by inspecting all equipment and developing a checklist of items that need to be repaired or replaced. This checklist will then be prioritized according to those items that will give us the most benefit for the money invested. From a preliminary visual inspection, there are several issues with the City s electric system that need to be addressed within this 5 year period: There is an abundance of open wire services and secondaries that need to be replaced with triplex. Quite a few pole mounted transformers appear to be in poor condition and in need of replacement. Many wood utility poles exhibit rot and need to be replaced. There is insufficient anchorage provided to some poles causing them to lean. These poles will have to be straightened and anchored properly to help them withstand wind shear. 29
30 Routine Operation and Maintenance Activities Trouble Response Repair of Electric Services Pole and Line Replacement Streetlight Maintenance Anchorage Repair Routine Switching and Load Balancing Commercial and Residential Meter Repair and Installation Assistance to Fire and Police Cable Locates Meter Reading Utility Coordination 30
31 Tree Trimming The City will schedule tree trimming beginning the first year to ensure dependable, reliable electric service. Trees will be trimmed every other year after that. If a tree is routinely trimmed, it does not have to be butchered. Our policy will be to Clear the line, not the tree. The City will seek permission from property owner to completely remove nuisance trees and will provide a suitable replacement. ENCO will provide this service utilizing an independent contractor at a cost of $125,000 for the first year. 31
32 Transmission and Substation Equipment Maintenance The maintenance of transmission and substation equipment will comply with the North American Electric Reliability Corporation (NERC) and Federal Energy Regulatory Commission (FERC) requirements. Activities include annual testing of all relays and circuit breakers and the maintenance of substation batteries, capacitor banks, switches, control house, yard and transformers. ENCO will provide this service utilizing an independent contractor at a cost of $98,000 for the first year. 32
33 Storm Response In the event a natural disaster causes a mass outage, the City will have prepositioned contracts with other contractors and agencies to ensure the system is restored quickly. In addition, the City of South Daytona will be members of the Florida Municipal Electric Association (FMEA). FMEA coordinates with its members to ensure they receive emergency assistance when needed. Before a storm hits, the City will utilize our prepositioned contracts to mobilize additional crews and equipment into the City on standby status. After the storm hits, these additional crews will immediately supplement ENCO s crews in bringing the system back online. Additional crews can be mobilized as the need arises. 33
34 Storm Response con t These prepositioned contracts will include out-of-state contractors in case of a state-wide disaster. All the municipalities I visited concerning the operation of their electric system offered to enter into a storm contract with the City of South Daytona. It will be important to have prepositioned contracts with independent contractors. When a storm hits, their job sites shutdown and they will be looking for work and eager to respond to our request. The City will only be responsible for 12.5% of the costs associated with storm restoration if a natural disaster is claimed. The remaining costs will be reimbursed by the Federal Emergency Management Agency (75%) and the State of Florida (12.5%). 34
35 Construction Work Plan The City has developed a Construction Work Plan (CWP) that identifies capital projects designed to improve reliability. The CWP focuses on the removal of rear yard feeds and the relocation of overhead facilities into underground conduit. The CWP will be funded by profits obtained from the distribution of electric service to residents and business owners. In other words, money made from providing the service will go towards improving its reliability. 35
36 Construction Work Plan con t Elements of the CWP include: Undergrounding the Lantern Park primary feeder (estimated at $70,000) Undergrounding the Big Tree Road primary feeder (estimated at $260,000) Undergrounding the area between Kenilworth and Pope Avenue (estimated at $850,000) Undergrounding the Palm Grove subdivision (estimated at $1,100,000) Undergrounding the Golfview Boulevard primary feeder (estimated at $510,000) Undergrounding the area between Kenilworth and Anastasia Drive (estimated at $700,000) Undergrounding the Sauls Street primary feeder (estimated at $125,000) Undergrounding the remaining overhead utilities on Ridgewood Avenue (estimated at $5,600,000) The total cost of the projects listed in the CWP is estimated to be $9,215,000. The CWP is a long range planning tool listing the City s strategic improvement plan for the electric utility. 36
37 Closing The City can improve on the service and reliability our residents are currently receiving, even after natural disasters. ENCO is a reliable, highly qualified contractor who will assist the City in the operation and maintenance of our electric utility. We will have crews working on our system full time to ensure it is functioning properly. Profits earned from the electric service can be utilized towards its improvement. 37
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