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GARLAND
POLICY REPORT
Work Session Item 3.b.
City Council Work Session Agenda
Meeting Date:
03/20/2023
Item Title:
2022-23 Budget Amendment No. 2
Submitted By:
Allyson Bell Steadman
Strategic Focus Areas
:
Sound Governance and Finances
ISSUE
Amend the 2022-23 Adopted Budget to appropriate $4,355,728 in the Electric Utility Fund for GP&L Production to cover additional maintenance and repair costs on the Olinger and Spencer Power Plants.
OPTIONS
A. Approve 2022-23 Budget Amendment No. 2 as proposed.
B. Do not approve 2022-23 Budget Amendment No. 2.
RECOMMENDATION
Option (A) – Approve 2022-23 Budget Amendment No. 2 as proposed. An ordinance amending the FY 2022-23 Adopted Budget will be included on the April 4, 2023, City Council Regular Meeting agenda for consideration.
BACKGROUND
Due to the extreme heat experienced last summer, coupled with the Electric Reliability Council of Texas' (ERCOT) move to operate the grid more conservatively, the generating units at the Olinger and Spencer Power Plants operated more frequently and for longer periods of time compared to historical operations. Because of the additional demands and stress placed on these older units, numerous mechanical issues manifested themselves during this last summer. To address these issues, as well as to address ERCOT's plan to continue its conservative operation of the grid, Garland Power & Light is requesting an increase to FY 2022-23 Operating appropriations for the operation and maintenance of the Olinger and Spencer Power Plants.
Additional requested funding includes, but is not limited to, the following repairs: (1) Spencer Unit 5-1 Boiler Feed Pump; (2) Spencer Unit 5-B Forced Draft Fan; (3) Olinger Unit 3B Circulating Water Pump; (4) Olinger Flue Gas-Recirculating Fan Motor; (5) Olinger Unit 3 Generator Hydrogen Seals; and (6) Olinger 50-Ton Crane Hoist. In addition, funds are requested for contractual services to help support operational staffing at the Spencer Power Plant.
CONSIDERATION
Consider approval of an Ordinance amending the FY 2022-23 Adopted Budget at the April 4, 2023, City Council Regular Meeting. Funding for this request will come from excess fund balance reserves in the Electric Utility Fund following the 2021-22 fiscal year-end.
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