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HomeMy WebLinkAbout11042009 PACAB PacketIt 14 Post and Commerce Advisory Board Regular Meeting November 4, 2009 Regular Meeting City Council Chambers Beginning at 12:00 pm SEWARD PORT AND COMMERCE ADVISORY BOARD Regular Meeting r November 4.2009 Ron Long, Chair Chair Term Expires 2011 Theresa Butts, Vice Chair Tenn Expires 2012 Deborah Altermatt Board Member Term Expires 2010 Daniel Oliver Board Member Term Expires 2010 Daryl Schaefermeyer Board Member Term Expires 2012 Robert Buck Board Member Tenn Expires 2012 Paul Tougas Board Member Term Expires 2011 Phillip Oates City Manager Kari Anderson Harbormaster Angela Buck PACAB Secretary NOON 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL COUNCIL CHAMBERS 4. SPECIAL ORDERS, PRESENTATIONS AND REPORTS A. ARRC Representative Louis Beneardino B. Chamber Report Laura Cloward Executive Director C. Harbormaster Report — Kari Anderson D. Community Development Report- Christy Terry 5. Citizens' comments on any subject except those items scheduled for public hearing. [Those who have signed in will he given the first opportunity to speak. Time is limited to 2 minutes per speaker and 30 minutes total time for this agenda item./ 6. Approval of agenda and consent agenda lApproval of Consent Agenda posses all routine items indicated by asterisk (*). Consent Agenda items are not considered separately unless a Board Member so requests. In the event of such a request, the item is returned to the Regular Agenda. j 11 City of Seward, Alaska PACAB Agenda May 6, 2009 Page 1 a 7. INFOMATIONAL ITEMS, REPORTS AND PRESENTATIONS — 8. UNFINISHED BUSINESS- None 9. NEW BUSINESS A. Discuss a resolution supporting continued study of the low -impact Run -of -River Hydroelectric facility proposed at Fourth of July Creek . ......................page 3 B. Review updated recommendations to title 7 of the Seward City Code and the HarborTariff...........................................................................page 12 10. CORRESPONDENCE, INFORMATIONAL ITEMS AND REPORTS (No action required)- 11. BOARD COMMENTS 13. CITIZEN COMMENTS [S minutes per individual - Each individual has one opportunity to speak) 14. BOARD AND ADMINSTRATIVE RESPONSE TO CITIZENS'COMMENTS 15. ADJOURNMENT City ofSeward, Alaska May 6, 2009 PACAB Agenda Page 2 AGENDA STATEMENT Date: November 4, 2009 To: Port and Commerce Advisory Board From: Chair Long Subject: Discuss a resolution supporting continued study of the low -impact Run -of -River Hydroelectric facility proposed at Fourth of July Creek. BACKGROUND & JUSTIFICATION: Independence Power LLC presented a design and operations concept to PACAB at the September 2, 2009 meeting, along with a request for support. PACAB requested more information, specifically the findings of a feasibility study once it was completed. Independence Power now has a prospect to pursue a grant opportunity in order to complete the feasibility study. Passage of this resolution will strengthen the grant application and increase the likelihood of seeing the study completed. RECOMMENDATION: Review, discuss and amend the existing resolution and forward to City Council. 3 Sponsored by: Port and Commerce Advisory Board CITY OF SEWARD, ALASKA RESOLUTION 2009-11 A RESOLUTION OF THE PORT AND COMMERCE ADVISORY BOARD, SUPPORTING CONTINUED STUDY OF THE LOW -IMPACT RUN -OF - RIVER HYDROELECTRIC FACILITY PROPOSED AT FOURTH OF JULY CREEK. WHEREAS, Independence Power, LLC, an Alaska corporation based in Anchorage and owned by Alaskans, has proposed to construct a low -impact run -of -river hydroelectric lacility on Fourth of July Creek within the City of Seward; and WHEREAS, Independence Power, LLC believes, based upon available information, that the hydroelectric project would not negatively affect (1) fish habitat in Fourth of July Creek, (2) public drinking water supplies in the Fourth of July Creek vicinity, (3) aesthetics in the project vicinity, or (4) flood hazards to existing developments in the Fourth of July Creek area; and WHEREAS, Independence Power, LLC believes, based upon available information, that the hydroelectric project would have an installed capacity of 4.0 to 5.0 megawatts, and produce 17,000 to 23,000 megawatt -hours of energy annually; equal to about 1 /3`d of the connnunity's current annual electrical energy needs; and WHEREAS, the hydroelectric project would provide local renewable energy to the Seward vicinity, reducing long term energy costs, increasing long term price stability, and increasing reliability of electrical service to the community. NOW, THEREFORE, BE IT RESOLVED BY THE PORT AND COMMERCE ADVISORY BOARD OF SEWARD, ALASKA that: Section 1. The Ports and Commerce Advisory Board endorses and supports the continued study ofthe proposed hydroelectric project on Fourth of July Creek, and recognizes that the project has potential to provide numerous direct and indirect long -teen benefits to the City of Seward and the railbelt population generally. Section 2. This resolution shall take affect immediately upon its adoption. PASSED AND APPROVED by the Port and Commerce Advisory Board, this 4 day of November, 2009 THE CITY OF SEWARD, ALASKA 01.1o/ Sovare 1, Alaska April 1, 2009 * March 4, 2008 Regular Meeting Minutes Board Meniher "fougas excused himself fi•om the meeting. Unfinished Business - None New Business- l'arl mx! Commrrc'�' arlrrsurl' Rourrl:bintutc<c t'uh�nrc�3. Pu,i", 00 Resolution 2009-03, Providing a Recommendation to Seward City Council Supporting the Low -Impact Run -of -River Hydroelectric Facility Proposed on Fourth of July Creek ;Motion (Butts/Altermatt) Approver Resolution 2009-03 Schaeterineyer stated he would like this to come to the Board at a later date following the completion of the feasibility study. Motion (Schaefermeyer/Long) Lay Resolution 2009-03 on the table Butts suggested rather than supporting the project they support the feasibility study. Long thought laying this on the table was not stopping the project and would like to revisit this at a later (late when there was more information available. Butts countered that a few words could be changed in Section I Of tile Resolution to change the support of the proiect to the feasibility itself. !Motion Passed Yes: Altermatt, Schaefermeyer, Long No: Butts Long explained how this agenda item could he brought hack before the Board. Provide Recommendations for the Economic Stimulus Forunt Scheduled for May 13, 20119 at 7:00 p.m. Terry stated Council had set the next economic forum on May 13, 2009 at 7:00 p.m. but the City Manager had asked for the Boards recommendation on the forum format, location, facilitators. specific invitations, groups and topics to be addressed. She continued that staff continents on what had been accomplished fi-om the last forum. Altermatt thanked Terry for the lay down and thought it was a great idea to do something but was concerned with the Feedback. She noted the lack ofcommunication devices and that a lot of participants did not receive feedback from the last thrum. Long surmised that the last torum was a good session but the follow tin-ough might not have been the best and did not think it went as tar as it could have. I I thought the taciIitatOrs should not I TIiL 4''` Ot .lU LY CREEK IIY.DRO.ELECTR(C PRO,113C'f is an approximately lour megawatt run -of -river hydroelectric project proposed for Fourth ofJuly Creek in Seward, Alaska. The Project is located in the mountains 2 miles behind the Spring Creek Correctional Facility, The project protects the integrity of the scenic viewshed from downtown Seward, and at the same time produces about 17,000 to 23,000 megawatt -hours ofclean renewable energy annually. Through responsible design, the Fourth of July Creek project avoids any impacts to local salmon habitat. Polarconsult Alaska, Inc. is developing the Fourth of July Creek Project for Independence Power, LLC. Independence Power is owned by five professional engineers with extensive experience in developurg small hydroelectric projects throughout Alaska. "I his same team is currently developing a similar hydroelectric project on Fishhook Creek in Hatcher Pass. The two megawatt Fishhook Project is scheduled for construction in the late surnmer of 2009. Run -of --river hydroelectric projects have no darts, and thus avoid the environmental issues associated with dams. Run -of -river projects utilize the instantaneous flow of a creek to generate electricity. By not storing a significant amount of water. run -of -river projects do not change the amount of water flowing below the project, and they also do not change the water quality. 'Phis helps to insure that valued downstream habitat is not hanned by the pTeject. The Project benefits Sorrtlicentral Alaska in many wtkvs: o It will generate savings for the City of Seward and Chugach Electric Associations, helping to lower costs for rate payers on both systems. It will generate 17,000 to 23,000 megawatt -hours of electricity atumally for distribution on the Railbelt energy grid. This is enough to power about 2,000 Alaskan homes. r This project is sustaiunable, renewable, and low impact. It has zero emissions, and it burns no Fossil fuels. By not burning natural gas for electricity, the gas saved is available for other uses. This is especially important given that Cook lnlet's proven natural gas reserves are being used Up and seasonal shortages arc possible in just a Few years. Y It is a local project that will generate local jobs and local green electricity. it will improve the reliability of Seward's electrical system. p®larconsul't alaska, wnc® A run -of --river hydroelectric plant is a fairly straightforward facility made up of only a few major components. These major components on the 41" of July Creek Project are briefly described below, Intake / Diversion Structure — The Project begins with a weir, located on 4"' of July Creek in the mountains about two miles behind the Spring Creek Correctional Facility. The weir impounds the water in the creek so that it can be diverted into the pipeline. Because of debris that is carried along in the stream, a desander and screening box is used between the intake and pipeline to ensure only clean water enters the pipeline. Pipeline (penstock) — A four -foot diameter buried pipeline will carry about 120 cubic feet per second of water from the intake 4,500 feet downhill to a small powerhouse. The penstock would likely be buried in some areas and above ground in other areas. Powerhouse — The powerhouse will be located at the base of the mountains about one mile east (up valley) from the correctional facility. The Powerhouse will be accessed via a new gravel access road. A gravel turnaround and srnal I parking area will be located next to the powerhouse. The primary purpose of the powerhouse is to house and anchor the turbomachinety, turbine controls, and associated equipment. 'The construction materials will likely be concrete block or poured concrete with an architectural finish. The exterior colors will be selected to blend with the natural setting. Turbine — The installed water turbine is called an impulse turbine or Pelton wheel, and consists of a series of buckets arranged around a shaft. For this project, two turbines will be utilized, each with about 2 MW output. Both turbines will Likely have 2 nozzles (or jets). These nozzles discharge the high pressure water from the pipeline onto the Pelton wheel, spinning the wheel. The turbine shaft is directly connected to a generator which produces electrical energy. Power Transmission Line The power line conveys the electrical energy produced by the generator to the utility's power distribution system. In order to economically transmit this energy over long distances, the voltage is increased using a transformer located next to the powerhouse. The Fourth of July Creek Project will have about two mules of overhead transmission line connecting to the City of Seward's existing substation in the Fourth of July Creek industrial area. Electricity will flow from the project to the many homes and businesses ur the City of Seward and surrounding area. PROJECT SC'HEDUIX Reconnaissance Study 2008 - 2009 Feasibility Study 2009 Permitting and Design------- --- 2009 2010 Construction 2011 -- ---- perational Date !_ate 2011 pclarc®nsult alaska, inc. oLARCONSULT ALASKA, INC., is a full services engineering consulting lirni headquartered in Anchorage, Alaska. PolarcOnSUlt specializes in providing cost effective, robust, and low-cost engineering solutions to Alaska's unique technical challenges. The Polarconsult Team offers considerable expertise in the full range of project development from conceptualization and feasibility, through permitting and design to construction and long term operation. The Polarconsult Team has extensive experience designing, permitting, constructing and operating hydroelectric plants in Alaska. Our design professionals have been involved in hydro in Alaska since 1966, and collectively have nearly a century of experience in the field. SELECTED HYDRO PROJECTS BY POLARCONSULT 1 of i 4�apaeity Prqlect Mc Roberts 100 kW Run of River Palmer, AK Design, Permitting, Construction, Creek Operation, Owner. Pelican Creek 650 kW Storage Pelican, AK Design, Permitting. Indian Creek 60 kW Storage Chignik, AK Permitting, FERC Relicense, Larsen Bay 475 kW ! Run of River Larsen Bay, AK Design, Permitting. Old Harbor 500 kW Run of River Old Harbor, AK I Design, State and FERC Permitting. O'Brien Creek & 5 400 kW Run of River j Chitna, AK Feasibility Study, Preliminary Design. Mile Creek _ Fishhook Creek 2,000 kW Run of River Hatcher Pass, AK I Design, Permitting, Construction. g g' Chuniisax 280 kW Run of River Atka: AK Feasibility Study, Preliminary Design, Creek Permitting. Angoon 600 kW Storage I Angoon, AK Feasibility Study, Preliminary Design, Indian River 125 kW Run of River Tenakee Springs, Feasibility Study, Preliminary Design 1 4► .., energy systems — environmental services -- engineering design 1503 West 33rtl Avenue, Suite 310 tel: 907.258.2420 Anchorage, Alaska 99503 fax: 907.258.2419 Internet Website: http:iiwww.polarconsuIt.net AGENDA STATEMENT Date: November 4, 2009 To: Port and Commerce Advisory Board From: Harbormaster Anderson Subject: Review and continue updating recommendations to Title 7 of the Seward City Code and the Port & Harbor Tariff Regulations. BACKGROUND & III STIFICATION: The Port & Commerce Advisory Board began reviewing the Port & Harbor Tariff Regulations at their July 15, 2009 work -session. These recommendations were compiled by City of Seward staff and will serve as guidance to administration when developing the final tariff for City Council approval. RECOMMENDATION: Schedule a PACAB Work Session to discuss the Port & Harbor Tariff updates for November 18, 2009 at noon in the City Hall Council Chambers. Future work sessions may be scheduled to complete the review of the tariff and Title 7 of the Seward City Code. The Port & Harbor Tariff Regulations can be found online at: http://www.cityol seward. net/harbor/information—Policies. htnil ,o