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HomeMy WebLinkAbout12022009 PACAB Packet Port and Commerce Adviso Board Regular Meeting r,''' 4 of sew ,„,,,, 4' 4 a ;;;; ____ 13 I 4. -A, 404. v 14 S • December 2, 2009 Regular Meeting City Council Chambers Beginning at 12:00 pin SEWARD PORT AND COMMERCE ADVISORY BOARD Regular Meeting November 4, 2009 NOON COUNCIL CHAMBERS Ron Long, Chair 1, CALL TO ORDER Chair Term Expires 2011 2. PLEDGE OF ALLEGIANCE Theresa Butts, Vice Chair 3. ROLL CALL Term Expires 2012 Deborah Aitermatt 4. SPECIAL ORDERS, PRESENTATIONS AND Board Member REPORTS Term Expires 2010 Daniel Oliver A. ARRC Representative Louis Bencardino Board Member Term Expires 2010 B. Chamber Report Laura Cloward Executive Director Daryl Schaefermeyer C. Harbormaster Report — Kari Anderson Board Member Term Expires 2012 D. Community Development Report- Christy Terry Robert Buck Board Member Term Expires 2012 5. Citizens' comments on any subject except those items scheduled for public hearing. /Those who have signed in Paul Tougas Board Member will be given the first opportunity to speak. Time is limited Term Expires 2011 to 2 minutes per speaker and 30 minutes total time for this agenda item.] Phillip Oates City Manager 6. Approval of agenda and consent agenda /Approval of Kari Anderson Consent Agenda passes all routine items indicated by Harbormaster asterisk ( *). Consent Agenda items are not considered separately unless a Board Member so requests. In the Angela Buck event of such a request, the item is returned to the Regular PACAB Secretary Agenda.] City of Seward, Alaska PACAB Agenda May 6, 2009 Page 1 7. INFOMATIONAL ITEMS, REPORTS AND PRESENTATIONS — A. "Support for GRETC" presented by Electric Utilities Manager, John Foutz page 3 B . Review the Thank You Note From Representative Paul Seaton .. .page 5 8. UNFINISHED BUSINESS - A. Discuss a resolution supporting continued study of the low- impact Run -of -River Hydroelectric facility proposed at Fourth of July Creek. ..page 6 9. NEW BUSINESS A. Proposed Recommendations to Council for Amendments to SCC 7.10, Harbor and Port Facilities . .page 56 B. * Approve the November 4, 2009 minutes page 85 10. CORRESPONDENCE, INFORMATIONAL ITEMS AND REPORTS (No action required) - 11. BOARD COMMENTS 13. CITIZEN COMMENTS [5 minutes per individual - Each individual has one opportunity to speak.] 14. BOARD AND ADMINSTR4TIVE RESPONSE TO CITIZENS'COMMENTS 15. ADJOURNMENT City of Seiiard, A laska PACAB Agenda May 6, 2000 Page *TASK* r �N dA 7 . • • ••• OWE. Government news from APA, The Unified Voice of Alaska's 1 1ectric Industry s $(i m News from Alaska Power Association November 13, 2009 Two bulletins: Organizations express support for GRETC, Comment deadline extended for Senate Energy Policy and Program Recommendations Organizations express support for CRETC Today three organizations that provide electric service in the Railbelt announced continued support for creation of an entity to meet the combined generation and transmission needs of customers in the region. Leaders of Chugach Electric Association, Matanuska Electric Association and the City of Seward held a joint meeting today and moved forward in support of legislation to create the Greater Railbelt Energy and Transmission Corporation, or GRETC. The City of Seward will confirm their support for the GRETC concept at a council meeting later this month. The organizations outlined their vision in a resolution that noted many of the benefits the new organization would bring. These include joint planning, state-assisted financing, and utility technical expertise to operate and maintain projects. The organizations note that the successful Bradley Lake hydroelectric project provides a model for GRETC activities, Bradley Lake is a state- owned, utility - operated project whose low -cost power is shared through power sales contracts with each of the six Railbelt electric utilities. The state provided the financing for Bradley 1.ak.e through a combination of grants and bonds, with the utilities covering the debt service in exchange for power from the project. Legislation to create GRETC was introduced in both the I-I_ouse and Senate earlier this year, but the legislature adjourned with the bills still in the energy committees of the two bodies. Legislators and utilities have devoted a great deal of time to energy issues during the interim, and the GRETC bills will continue to receive attention when the legislature reconvenes in 2010. 703 West Tudor Road, Suite 200, Anchorage, Alaska 99503 Ph: 907.771.5700, Toll -free: 1.877.992 7322, Fax: 907.561.5547 tJRL: www.alaskapower.org The GRETC concept of a single Railbelt: organization to provide generation and transmission services emerged from a study of how the region's grid works today and how it could hest meet the needs of Alaskans in the future. The Railbelt Electrical Grid Authority study, completed in September 2008, was led by the Alaska Energy Authority with funding from the legislature. The RIGA study identified an average annual present worth net savings of between $10.5 and $30.9 million which equates to between a 3.6% to 10.1% net savings for Railbelt consumers. In a related effort, the AEA is currently doing an integrated resource plan to determine how to meet the generation needs of the Railbelt for the next 50 years. The Parnell administration, like the Pal in administration before it, continues to support the GRETC legislation. The governor's senior energy advisors and AEA leadership have rnet repeatedly with Railbelt electric utilities to discuss the legislation and seek consensus on the issues. A task force of the boards of all Railbelt electric utilities will continue their work on GRETC and related issues. Senate energy policy comment deadline extended to December 15 Senators Wielechowski and McGuire have extended the public comment period for one month, from November 15` to December 15 for submitting comments on the draft State Energy Policy and Program Recommendations, Please visit www,ene;-=4y,a1 ;senai.e.orLY to review the draft State Energy Policy and Program Recommendations, and provide written comments to 5eDav° .,at� before December 15`h enero .,te�i,.s i.:21`.u_' For more information: Contact Crystal Enkvist, APR, Director of Member & Public Relations Phone: (907) 771 -5711; Toll -free: 1.- 877 - 9927322 E -mail: cenkvist@alaskapower.org 703 West Tudor Road, Suite 200, Anchorage, Alaska 99503 Ph: 907.771.5700, Toll -free: 1.877.992, 7322. Fax: 907.561.5547 LPL: www.alaskapower.org -1 nc!Jul rot nt • uoni)e1 L • l " rof•T77 ..t-pill 0 1 La 1 1 gn ( r ,. ^. I `+ *' '_ a e4,-.;,-.4,;101- al e 1 v' �vt+t ° t,V, a• Halibut Gore •Homer a Kache111ak Bar • Kochl.mak Cm hs: .- ;r , , , � p s r ri •. Kachemak Selo • illoose Pass • N,un+rllek s Pori Grall.aln .. RIl/_dObla • Sell',. • Seldol7a • l'o is er.I i .' f y > 7r•t . i l �( W1 ' 4" 4"r 4 �' r -.� • �t w)"�`, 31F'a yn r . n Y r•44a . ?LCSN ^�fr.4, c"rF i ��x . V "�, g;;T L ,` }I oe' P ,� (: f ry i r° S {' I ,d rr C - ^ - , alp � a l J 1` t+:,, --. 1 I > ' r A i yap f 4 i s h w ?tv- �d�myq�o-'`v , . r t d � ; i N '— r _• j ~ i l N *r 9yv 4 fr t I' � 1 f a 1 1 Re + w ''.35x1 � n'FS J I B, rs• 1112E'1 i n: .1 Session: '.. , -_ ter- 3445 W. Sterling Hwy State Capitol Building • Suite 102B Juneau, 1-\3: 99801 -1182 Representative Idonter, Ak 99603 Ph: 465 -2689 11'x:465 -8472 Ph: 235-2921 hx: 235 -4008 1- 800 - 665 -2689 Paul Seaton Rep.Paul S < °au7nCT�legis.state.ak.us / / � / / 41111V C ____-- ---- _� ~ f 7 -1 ; ,,,,, " , , ,_ • ,, ' • z _... :11_,,e ())."-/ -1 A- 1,4 :/(i - / 1 a ,„ , -.4 0 / � s . a "/ AGENDA STATEMENT jogs Date: December 2, 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. 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 facility 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` of the community'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 of the proposed hydroelectric project on Fourth of July Creek, and recognizes that the project has potential to provide numerous direct and indirect long-term 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 ofNovember, 2009 THE CITY OF SEWARD, ALASKA PORT AND COMMERCE ADVISORY BOARD Ron Long, Chair AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis City Clerk (City Seal) FOURTH OF JULY CREEK HYDROELECTRIC PROJECT RECONNAISSANCE STUDY AND INITIAL FEASIBILITY ASSESSMENT FINAL REPORT NOVEMBER 2009 By INDEPENDENCE POWER, LLC 1503 WEST 33a° AVENUE, SUITE 211A ANCHORAGE, ALASKA 99503 • Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment EXECUTIVE SUMMARY This report presents the findings of a reconnaissance study and initial feasibility assessment of a proposed run -of -river hydroelectric development on Fourth of July Creek near Seward, Alaska. Development of a run -of -river hydroelectric project on Fourth of July Creek with an installed capacity of 5.4 MW is technically and economically feasible. This project can provide approximately 21,700 MWh of energy annually (approximately 1/3 " of the Seward Electric System's current annual energy demand) at an estimated wholesale cost of $0.04 to $0.12 per kWh. Based on these estimates, the project appears competitive with future energy generation alternatives for the railbelt, and warrants continued investigation. These findings are based upon review of existing information and field investigations conducted for this project. Field investigations to date include: One year of hydrology data for Fourth of July Creek Visual (airborne and terrestrial) reconnaissance of the entire project RTK GPS survey of critical project elevations The proposed technical configuration of a hydroelectric development at Fourth of July Creek is summarized below. Parameter Value Intake Elevation (ft) Powerhouse Elevation (ft) — — 790' Gross Head (ft) 120' - -- 670' Net Head (ft) — - - 636' Penstock Length (ft) and diameter (inches) 6 100' of — — 48" i c Design Flow (cfs ) 1 t — --- — 120 Installed Ca 9acit kW Plant Capautz_Factor 5,400 kW Minimum Annual Output (kW) 17% - -- 240 kW Net Annual Energy Generation (kWh) 21 700,000 kWh Transmission Length (ml) _ 2 miles The next steps necessary to advance the project is a fall feasibility study. This study will include collection of additional field data and detailed analysis of the project's technical and economic feasibility. Major feasibility study activities include: y Continue to measure stream discharge to characterize basin hydrology. ➢ Complete topographic survey to support design and analysis activities. Conduct analysis of flood stages at key project locations to guide project design. Conduct geotechnical investigations. Conduct engineering analysis to determine optimal penstock routing. Project cost estimate and economic analysis. Feasibility study analysis and report. NOVEMBER 2009 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment TABLE OF CONTENTS EXECUTIVE SUMMARY TABLE OF CONTENTS II ACRONYMS AND TERMINOLOGY 1 1.0 INTRODUCTION 3 1.1 PROJECT AUTHORIZATION AND PURPOSE 3 1.2 COMMUNITY BACKGROUND 3 1.3 PROPOSED ENERGY RESOURCE 3 1.4 SUMMARY OF PREVIOUS STUDIES 4 2.0 EXISTING ENERGY SYSTEM 6 2.1 COMMUNITY ENERGY PROFILE 6 2.2 ELECTRIC UTILITY ORGANIZATION 6 2.3 GENERATION SYSTEM 6 2.4 TRANSMISSION AND DISTRIBUTION SYSTEMS 7 2.5 LOAD PROFILE 7 2.6 FUTURE LOAD PROJECTIONS 2.7 PLANNED UPGRADES 8 2.8 ENERGY MARKET 3.0 PROPOSED ENERGY RESOURCE 10 3.1 RESOURCE DESCRIPTION 10 3.1.1 Project Drainage Basin 10 3.1.2 Project Creek 10 3.2 HYDROLOGY Ii 3.2.1 Flood Potential 17 3.3 GEOTECHNICAL 18 3.3.1 Mass Soil Movement 19 3.3.2 Avalanche 19 3.4 PROJECT LAND 2() 3.4.1 Site Control Requirements 4.0 PROPOSED PROJECT DESIGN 22 4.'1 ANALYSIS OF PROJECT ALTERNATIVES 22 4.2 RECOMMENDED PROJECT 25 4.3 ANNUAL ENERGY PRODUCTION 25 4.4 CONCEPTUAL SYSTEM DESIGN 26 4.4.1 Site Access 26 4.4.2 Power Line 27 4.4.3 Powerhouse 27 4.4,4 Penstock 4.4.5 Intake 4.5 CONCEPTUAL INTEGRATION DESIGN 28 4.6 MAJOR REMAINING TECHNICAL CONSIDERATIONS 28 4.6.1 Hydrology 28 4.6.2 Geotechnical 29 4.6.3 Topographic Survey 29 4.6.4 Pens tock Routing 29 4.6.5 Intake Configuration 29 5.0 ECONOMIC ASSESSMENT 30 NOVEMBER 2009 II Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment 5.1 PROJECT COSTS 31 5.2 PROJECT BENEFITS 31 5.2.1 Fuel Displacement 31 5.2.2 Grid Efficiency 31 5.2.3 Environmental Attributes 31 5.2.4 Non-Monetary Benefits 31 6.0 PERMITS 33 6.1 FEDERAL PERMITS 33 6.1.1 FERC Licensing 33 6.1.2 U.S. Army Corps of Engineers Permits 33 6.1.3 US. Coast Guard Permits 33 6.1.4 U.S. Environmental Protection Agency 33 6.1.5 Federal Aviation Administration 33 6.2 STATE OF ALASKA PERMITS 33 6.2.1 Alaska Department of Natural Resources (ADNR) Permits 33 6.2.2 Alaska Department of Fish and Game (ADFG) Permits 34 6.2,3 Alaska Department of Transportation (ADOT) Permits 35 62.4 Alaska Department of Environmental Conservation (ADEC) Permits 35 6.2.5 Regulatory Commission of Alaska 35 6.3 LOCAL PERMITS 36 6.3.1 Kenai Peninsula Borough 36 6.3.2 Plan Review 36 6.3.3 Site Access 36 6.3.4 Utility Agreement 36 6.3,5 Other Local Permits 36 7.0 ENVIRONMENTAL CONSIDERATIONS 37 7.1 THREATENED AND ENDANGERED SPECIES 37 7.2 FISHERIES AND WILDLIFE 37 7.2.1 Terrestrial Wildlife 37 7.2.2 Fisheries 37 7.3 WATER AND AIR QUALITY 37 7.4 FLOOD CONTROL 37 7.5 WETLAND AND PROTECTED AREAS 38 7.6 ARCHAEOLOGICAL AND HISTORICAL RESOURCES 38 7.7 LAND DEVELOPMENT CONSIDERATIONS 38 7.8 TELECOMMUNICATIONS AND AVIATION 38 7.9 VISUAL AND AESTHETICS RESOURCES 38 7,10 MITIGATION MEASURES 39 8.0 FINDINGS AND RECOMMENDATIONS 40 APPENDIX A — PUBLIC MEETINGS AND MEETING RECORDS 1 NOVEMBER 2009 ut Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment LIST OF FIGURES Figure 1 -1: Location Map 5 Figure 2 -1: SES Quarterly Electrical Load 2002 —2009 7 Figure 2 -2: SES Cost of Energy 9 Figure 3 -1: Project Basin and Nearby Basins Used to Estimate Hydrology 12 Figure 3 -2: Fourth of July Creek Gauge Installation 14 Figure 3 -3: Stage- Discharge Curve for Fourth of July Creek Stream Gauge 14 Figure 3 -4: Measured and Expected Discharge at Fourth of July Creek Powerhouse Site 15 Figure 3 -5: Measuring Stream Discharge in Powerhouse Vicinity (April 2009) 16 Figure 3 -6: Land Ownership in Project Vicinity 21 Figure 4 -1: Proposed Project Layout and Penstock Route Options 24 Figure 4 -2: Expected Seasonal Power Output '>6 Figure 4 -3: View Looking Downstream at Intake Location (April 2009) 28 LIST OF TABLES Table 2 -1: Annualized SES Energy Purchases from CEA 6 Table 3 -1: Land Characterization in Project Basin 10 Table 3 -2: Project Basin and Nearby USGS Basins 12 Table 3 -2: Project Basin and Nearby USGS Basins 13 Table 3 -3: Discharge Anomalies in Fourth of July Creek Discharge Record 16 Table 3 -4: Initial Assessment of Project Flood Hazards 18 Table 4 -1: Comparison of Fourth of July Creek Project Configurations 23 Table 4 -2: Comparison of Kasidaya Creek and Fourth of July Creek Projects 25 Table 5 -1: Summary of Economic Estimates for Fourth of July Creek Project 30 Table A -1: Summary of Project Meetings 2 NOVEMBER 2009 iv Fourth of July Creek Hydroelectric Project Independence Power, LTC Reconnaissance Study and Initial Feasibility Assessment ACRONYMS AND TERMINOLOGY ADEC Alaska Department of Environmental Conservation ADFG Alaska Department of Fish and Game ADNR Alaska Department of Natural Resources AEA Alaska Energy Authority AVTEC Alaska Vocational Training Center CEA Chugach Electric Association, Inc. cfs cubic feet per second COE U.S. Army Corps of Engineers DCCED Alaska Department of Commerce, Community, and Economic Development ft foot, feet HDPE high- density polyethylene in inch, inches IP Independence Power, LLC kV kilovolt, or 1,000 volts kVA kilovolt -amp kW kilowatt, or 1,000 watts. One kW is the power consumed by ten 100 - watt incandescent light bulbs. kWh kilowatt -hour. The quantity of energy equal to one kilowatt (kW) expended for one hour. LIDAR Light Detection and Ranging mi mile, miles MW megawatt, or 1,000 kilowatts MWh 1,000 kWh. NOVEMBER 2009 1 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment powder blast A pressure wave of compressed air and entrained snow that can precede an avalanche down a mountain. Powder blasts can exert significant force, damaging objects well beyond the footprint of the avalanche's path and runout. RCA Regulatory Commission of Alaska SES Seward Electric System Surge - release flood A flood caused by a creek or river becoming temporarily dammed behind an obstruction such as an avalanche or landslide. USGS United States Geological Survey WRI(R) Water Resources Investigation (Report) NOVEMBER 2009 2 i ' Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment 1.0 INTRODUCTION 11 PROJECT AUTHORIZATION AND PURPOSE In 2008, Independence Power, LLC was formed to develop a run -of -river hydroelectric resource identified on Fourth of July Creek in Seward, Alaska. The first step in the orderly development of Fourth of July Creek's hydroelectric potential is to complete a reconnaissance -level study and initial feasibility assessment of the resource to determine if the resource is likely suitable for a technically and economically viable renewable energy development. This reconnaissance study was funded in part by Independence Power, LLC and in part by a grant from the State of Alaska's Renewable Energy Grant Program. The purpose of this study is to present the findings of the reconnaissance -level investigations of the hydropower potential of Fourth of July Creek. 1.2 COMMUNITY BACKGROUND Fourth of July Creek is located within the city limits of Seward, Alaska. Seward is a community of approximately 2,600 residents first settled in 1903 and incorporated in 1912. It is located on Resurrection Bay along the southerly - facing gulf coast of the Kenai Peninsula. Seward is the southern terminus of the Seward Highway and the Alaska Railroad. It is a major shipping port for Alaska, and is also served by a state -owned airport. Seward's climate is maritime, and is characterized by frequent precipitation, relatively cool summers with typical temperatures of 49 to 63 °F, and relatively warm winters with typical temperatures of 17 to 38 °F. Normal annual precipitation is 66 inches of rainfall, and 80 inches of snowfall. Seward has a diverse economy. The Alaska Sea Life Center, Alaska Vocational Technical Center (AVTEC), Spring Creek Correctional Facility, Usibelli Coal Shipment Facility, Seward Shipyard, and Kenai Fjords National Park all contribute significantly to the local economy. More generally, tourism, commercial fishing, and government are also major contributors to the local economy. ' 1.3 PROPOSED ENERGY RESOURCE The proposed energy resource is a run -of -river hydropower resource located along Fourth of July Creek. The resource location is indicated on Figure 1-1, Development of the resource would consist of: Background data from the DCCED's Alaska Community Database. NOVEMBER 2009 3 I'. Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment An intake structure, which may include a dam up to 40 feet tall, located on Fourth of July Creek at an elevation of about 750 feet (dam spillway elevation of 790 feet), which is at the head of a prominent canyon located about three river - miles above tidewater; A 5,100 to 6,100 foot long, 48 -inch diameter penstock to convey 120 cubic feet per second (cfs) of water; A powerhouse with 5.4 MW of installed generating capacity located at an elevation of about 120 feet, located near the outlet of the same canyon; ➢ A tailrace to return project waters to Fourth of July Creek; A transmission line to connect the powerhouse to the City of Seward's electrical system; Access roads and trails; and Appurtenant facilities. The resource is estimated to provide approximately 21,700 megawatt -hours (MWh) of energy in a typical water year. This equates to roughly 1/3'd of the Seward Electric System (SES)'s annual energy requirements. 1.4 SUMMARY OF PREVIOUS STUDIES IP is unaware of any existing studies of hydropower development on Fourth of July Creek. There are several other existing studies that are relevant to the proposed development, which are summarized below. U.S. Geological Survey (USGS) Water Resources Investigation 81 -21 (WRI 81 -21). Hydrological investigation of the Fourth of July Creek alluvial fan area to identify suitable water supplies to support industrial development of the alluvial fan area. This report provides some instantaneous discharge data for Fourth of July Creek and information about the local hydrology in the alluvial area. The area covered by WRI 81 -21 is downstream of the proposed powerhouse site. USGS WRI 87 -4728. Analysis of the cause, extent, and damage from a major storm event that dumped 15.05 inches of rain in Seward in a 24 -hour period over October 9 -11, 1986. The USGS characterized this storm event as a 100 -year or greater event. Because of the magnitude of this storm event, this report provides very valuable analysis and data on expected peak discharges, mass soil movement, and sediment flows that any hydropower development along Fourth of July Creek would be designed to withstand. A feasibility study for the development of an industrial park at Fourth of July Creek prepared for the City of Seward by Arctic Environmental Engineers in March 1979. NOVEMBER 2009 4 Independence Power, LLC Fourth of July Creek Hydroelectric Project Reconnaissance Study and Initial Feasibility Assessment Figure 1 -1: Location Map LOCATION MAP STATE INDEX MAP BARROW„ . ",+ P6 ,X, I f - L T T "T - Yr'• ... L�1- -� - -7 f +j. a. - -- ��7 . LL5 ,�. j � f / p ,s ;` A�d`HUIR,ACF t ) x C Y� ? ' � 1 41'HITTIER —` / 0, '_:,c`a :t . c„ P? '- ) / a # SEE y - —% SLW,4kILI 'I 4 . Si { �(— LOCATION ' t_ ,_,. Y y � e `t, MAP 4, THIS f�i��F OF • ,�`" \— K ODIAK 1 x t PROJECT a PROJECT VICINITY MAP 1 F t t I..I M=I Fr; , , T . . , , , 44 ' ',"--- ‘. i' r,:t" , 4 ,,,...ti 1 -41.4 5 YI i J y .r -r. ' ti v. �� g. 4 Y 3 b • to • i � i �^' f 7 t f w f a r f i '��v r .. h �, i I v - t Y -. z �y. r . _5 wnS r ti k . • 0 ' y 1' � � 4 � � • , a • � 'r ., t 'be s -�1 t , ..: _ 7 - • J ' � t .,. ,2.,, '''''k '-';4;gtWit.--- ''' t t aR { 1 , .S z s� s v. t n A _I " _ ` t ^R- + - • v �-+ - ' ' .. 'f t "..•.473 s ^ w ' } - t 1 ..". f III II � �' l ' ' 4 ' � M j i . i d t FA( f T�� ._ t.s" A - Y y�r 6 t i I. 4 Y t�yy r EWA rD JI1 f,',ryD ,x,: ' - h a s II ", r � 7 � � �� � # 3 �+, ,i �^'+> � 1 t ?..:. s. 'i=1✓'¢� �l{� I i 4 F E L a. 51 " �• ` `"' � ' ' i [,, ' . {' t !' yrt4,',«�, ti ''' ' ti p, t , y ` ` s - , - w Z"),0 r `$ ,l " T,,, 4 ' # PROJECT - ''; 4 r '" € l AREA _ = ,l NOVEMBER 2009 5 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment 2.0 EXISTING ENERGY SYSTEM 2.1 COMMUNITY ENERGY PROFILE The city of Seward and surrounding areas are served by SES. SES is connected to the railbelt electrical grid, and imports nearly all of its electrical energy from Chugach Electric Association, Inc. (CEA). Table 2 -1 summarizes SES' annual electrical energy purchases from CEA. Table 2 -1: Annualized SES Energy Purchases from CEA Year CEA Energy Generation and Purchases for SES (MWh) 2002 61,334 2003 62,959 2004 64,204 2005 65,028 2006 60,530 3 2007__ 65,911 2008 65,524 2009 65,910 4 Note 1: Data are compiled from CEA quarterly tariff filings with the RCA. Note 2: Data are unavailable for second quarter of 2002. The average of 2002 and 2004 second quarter energy sales is used to estimate 2003 sales. Note 3: A 26 -day transmission outage in February 2006 required SES to self - generate. Note 4: Data for 2'd half of 2009 are CEA projections. 2.2 ELECTRIC UTILITY ORGANIZATION The City of Seward owns and operates the SES under Certificate of Public Convenience and Necessity No. 102, issued by the Regulatory Commission of Alaska (RCA). As a municipally -owned electric utility, SES is exempt from RCA economic regulation pursuant to AS 42.05.711(b). 2.3 GENERATION SYSTEM SES normally purchases 100% of its electricity from CEA, which includes SES' share of output from the Bradley Lake Hydroelectric Project. SES maintains six diesel generators for backup generation when energy from CEA is unavailable. These include two World War 11 -era Alco generators installed after the 1964 earthquake. These systems are very old, and increasingly difficult to maintain and repair. Seward received funds to replace these aged generators in 2009. 2 Fiscal Year 2009 Capital Budget TPS Report 50617. Alaska Department of Commerce, Community, and Economic Development. NOVEMBER 2009 6 i '1 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment 2.4 TRANSMISSION AND DISTRIBUTION SYSTEMS SES maintains a 69 -kV transmission line from the interconnection point with the CEA system into downtown Seward. There is also a 69 -kV line that runs from Seward over to the Fourth of July Creek industrial area. The terminal substation for this line is located approximately two miles from the proposed hydroelectric powerhouse site. These transmission lines are in good condition, although portions of the line from CEA in the Kenai Mountains are located in avalanche hazard areas. An avalanche in February 2006 damaged this transmission line, resulting in loss of service for 26 days, forcing SES to rely on its diesel generators to provide electrical service to customers. 2.5 LOAD PROFILE SES' load profile is relatively constant seasonally, and has been relatively constant over the past several years. SES' quarterly load data are presented in Figure 2 -1. It is expected that the energy and power from the Fourth of July Creek project can be completely consumed by existing SES system demand. Figure 2 -1: SES Quarterly Electrical Load 2002 — 2009 18,000 - — 9 14,0001 I I.. 1 12,000 ' ro c p' 10,000 ! s w I 8,000 :; I 1' 1' � j • 6,000 � 1' i. 1 ., i , . J_ , ; ' i I ` I ■ p u • j ® SFS Energy Load (MW h) r j 3 ° 4000 - - ( �SESAvera*ePowerL 1 i i P Average Load (MW) t j i ; .1 W J � 000 . i 1 1 r 1 1.. ' 1 I 1 i� I 1, � ' I 7 � j � � 1 . t LL . 1, „LI „ ,. 1 ! i j lH .1 j U Notes: Quarter These data are compiled from CEA quarterly tariff filings with the RCA. See Table 2 -1 notes regarding second quarter 2006 and the second half of 2009. The data is CEA's combined energy generation and purchases for SOS, reduced by 3% to account for CEA system losses that would not apply to local generation within the SES system. NOVEMBER 2009 7 j Fourth of July Creek Hydroelectric Project Independence Power, LTC Reconnaissance Study and Initial Feasibility Assessment 2.6 FUTURE LOAD PROJECTIONS Because SES has a reliable transmission connection with the railbelt, the potential load served by this project is considerably larger than this project. Should the project produce more energy than SES can use, excess energy can be exported to other railbelt utilities. 2.7 PLANNED UPGRADES SES is in the process of installing new diesel generation to provide back -up electricity for the SES system. Planned upgrades on the remainder of the railbelt energy grid are not applicable to this project. 2.8 ENERGY MARKET SES is the logical customer for the electrical output of this project. More generally, the potential energy market for this project is the railbelt energy grid. The railbelt energy grid's electrical demand is considerably larger than the output of this project, and this project's output could be consumed by any of the six railbelt utilities. SES has contracted with CEA for energy supply. Under the contract, SES is obligated to purchase 100% of its energy needs from CEA, which includes SES' share of the output of the Bradley Lake Hydroelectric Project near Homer. Under this contract, SES' electrical supply is interruptible with notice from CEA, and is also subject to outages on the transmission line from CEA. During such events, SES switches to diesel generators located in Seward. In exchange for interruptible service, SES only pays the direct costs incurred for its energy needs, and does not normally pay CEA for generation capacity. This contract is in effect through December 31, 2011, with two automatic five -year renewal periods to 2016 and 2021. To opt out of automatic contract renewal at the end of 2011, either party must provide notice by December 31, 2010. SES' cost of energy from CEA from 2002 through 2009 is presented in Figure 2 -2. The energy costs presented in Figure 2 -2 include energy CEA purchases on SES' behalf from the Bradley Lake project. Figure 2 -2 does not include SES' costs for local diesel generation because self generation comprises a very small portion of SES' overall energy supply. NOVEMBER 2009 8 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment Figure 2 -2: SES Cost of Energy $0.080 — — • $0.070 - • $0.060 0 r, $0.050 - m x , $0.040 - �O $0.030 - $0.020 - —0— Actual SES Energy Cost at Delivery ry ($/kWh) —6" Predicted SES Energy Cost at Delivery (cents /kWh) $0.010 - $0.000 Jan -02 Jan -03 Jan -04 Jan -05 Jan -06 Jan -07 Jan -08 Jan -09 Date Notes 1. Actual and predicted SES energy costs are compiled from CEA quarterly tariff filings with the RCA. Actual energy costs are CPA's reported costs for energy generation and purchase, increased by 3% to reflect cost at SFS delivery instead of cost at CEA generation. NOVEMBER 2009 9 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment 3.0 PROPOSED ENERGY RESOURCE 3.1 RESOURCE DESCRIPTION 3.1.1 Project Drainage Basin Fourth of July Creek is a steep - gradient mountain creek that originates from small alpine glaciers in the Chugach Mountains along the gulf coast of the Kenai Peninsula. The creek above the proposed intake site drains a basin 9.4 square miles in area, with elevations ranging from 750 feet to 4,883 feet. This basin is generally oriented facing the northwest, and is ringed by peaks ranging from approximately 2,600 to 4,883 feet in height. Land classification in the basin above the proposed intake location is summarized in Table 3 - 1. Table 3 -1: Land Characterization in Project Basin Classification Area (square miles) Percentage of Basin Glaciated area 3.6 40.6% Barren ground (alpine and flood plain areas 4.2 47.0% -- - -- --- - - -- Forested / vegetated 1.1 12.1% Lake /water 0.03 ( -17 acres) 0.3% Based upon comparison of USGS 1:63,360 series topographic maps (ca. 1975 for the project vicinity) and more recent aerial imagery (ca. 2005), the land classifications in Table 3 -1 — in particular the extents of forested and glaciated areas — have not changed significantly over the last 30 years. The project vicinity is shown in Figure 1 -1. 3.1.2 Project Creek The headwaters of Fourth of July Creek are short, high - gradient alpine streams emanating from the termini of multiple small glaciers. Typical gradients along these headwater creeks are in the range of 15 to 50 %. As these creeks converge along the upper valley floor to form Fourth of July Creek, the gradient drops to about 3 to 8 %. The creek braids along the valley floor for about one mile, actively meandering across a well- defined flood plain 200 to 600 feet wide. The proposed project intake site is at the lower end of this braided reach of the creek, where it becomes confined between rock walls that are about 50 feet tall and channel the creek through a notch about 20 feet wide. Below this notch, the creek remains confined within an incised rock canyon for one mile, averaging a gradient of 12 %. NOVEMBER 2009 10 , , Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment The proposed powerhouse site is near the lower end of this canyon. Below the powerhouse site, the creek emerges onto a large alluvial fan and joins with Godwin Creek, which drains Godwin Glacier to the immediate north of the project basin. Before the early 1980s, the combined flow of these creeks actively meandered across this alluvial fan the remaining two miles to Resurrection Bay. The gradient across this alluvial fan varies from 1 to 6 %, decreasing towards the coast. Since the lower alluvial fan was developed into an industrial park by the City of Seward in the early 1980s, Fourth of July Creek has been confined to a channel along the southern edge of the fan by a series of earth and rip -rap levees. 3.2 HYDROLOGY The project area has a maritime climate, and is exposed to frequent storms coming in from the Gulf of Alaska. Annual precipitation in the project basin is estimated at 40 to 100 inches annually, with the higher values probable in the alpine areas. While the project basin drains to the northwest away from prevailing on -shore flows, taller peaks on the northerly rim of the basin likely induce precipitation into the basin, compensating for any rain shadow effects caused by peaks along the basin's southeastern perimeter. Existing information about Fourth of July Creek's hydrology is available from: A USGS report on major flooding that occurred around Seward in 1986. This report provides information about the cause and magnitude of floods on Fourth of July Creek. ➢ USGS stream gauges in the region. These provide guidance on the expected seasonal discharge at Fourth of July Creek. Engineering reports for the development of the Fourth of July Creek Industrial Park. These provide some discrete flow measurements on Fourth of July Creek. These data indicate that the creek has good hydropower potential. IP installed a gauge at Fourth of July Creek in 2008 to directly measure discharge, but has also synthesized expected hydrology for the project in order to conduct reconnaissance -level evaluations of the project. Expected hydrology was synthesized using USGS stream flow data for three nearby basins: the Nellie Juan River, Resurrection River, and Lowell Creek. The average daily median flows for these three basins were combined and scaled to the Fourth of July Creek basin to create expected average daily flows for the project. The relative location and size of these basins compared to the project basin are shown in Figure 3 -1. Basin parameters and gauge information are summarized in Table 3 -2. NOVEMBER 2009 11 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment Figure 3 - 1: Project Basin and Nearby Basins Used to Estimate Hydrology t �"�� 4. ^tr —'` r 1-- 0 _ 12 C q�` Yf%IUY4 6 qyC,. 1 INCH = 6 MILES f J ar •w J i g a s J S 1 � � . ,` - 9 _ S4 NELLE JUAN RIVER GAUGE i t f � �� I 4 , ° ' i i hi, uSCS GAUGE /15237000 ` . '' +/ ! (1980 -1985 4.e YitS} L , J _ , '.. V - + , +,' rt . e w ' A '�1 rriJ � a ,� I 'r , k *tf ' r' �( m il 1. _ 5 o p ) : Alr ,, 4 :*:: 2 . 4;, ::,,,,,,,,"%.7:274.:4: ti _ t rrf:i y3 ,. , . r Y`y, x i � � ggf 1 qT ' ' g- j j, - ' 4 c dlS 4 1.�,i � .: S'''F 4 'ryry nc $. 'tiro ', 3 X 1. -: -' f ' ! 4 si r ' ' P.. %.1.1 ,, C k { � I ,,,j„...:_, , .,p - �' { c9" ' a ply '9 i Vt 4'.04, 7 E 4 ' ` ' ' ' / '''''f.: � ` ✓ 0 w' Z' � l I rY .. N ,1 • r �! . a � ; .ri , r - � i ' � � 1 - ' { ./ ±,i... ',;,..V. � or r� A 1a ;�iMe+.� ` - � l/ l .' ..1"7.74 . , � ' ' 1 ; • s ��+ J . u ,' g' 1 1 ''..• 41, 4 'x`" L' * 1 , THIS PROJECT `�` '� 'F'' I , .p ,, *G•, ty + ,. Lit ,�. `� i FOURTH DF JUi_Y CREEPC '* s ti 'i?P' �� h v Y , I ' ,• i' 1 *: ^" � , 200a 89 0.9 YEARS . ;. . . :,. 6� r � ., ' r • .. .3 , r „ . I ,, " . .swami. sx._ i.:s yr 'I n �+a }' lt i '' 'II__ r If t't .: { �„ - LOWELL CREEK GAUGE i : -.! '+t: 4 -kf, ," 1 .. ,, a ,r*., 16,s ^a ''',1 "�.`-.' . - ` t 'k ` E r : -,--. .." .� °'N (1965 -1993, 5.4 YRS) USGS GAUGE /15238500 r i' t i � i e w r , "� k t✓ "' : RESURRECTION RIVER CAUGE �'�� �'' ; a RESU BAYCTION ' - i '' Y At ; , ti +I r " �t USGS GAUGE 115237700 -- — `? ..- � r } 1 1 lr , 4;, (1964 -1es8, 3. YRS) • Q , I `1 C r 1 4 r 1 t1td • x . j 1, 1 , , ' All` -r 1 1 T ' t a -" ' . 1 t 9.t�j�!',n r .i h f'�1 .Y l f [ � i , 4 , � `•• .# fit , 1: +b , "t i , a ? ' � .:•'• �� \ • \ ; ! r, • i r� f v A '41 r a ,V3. i , .' '1, y apt '' : t o i u ti w "! L . < ' l ► ^, f. � 1¢ d } ti . ' u.' . 1 r 'n‘ �.. � },r � • ti`�.r .; \ . fJ6 ' I '"" esa t,./ s 1' K/: r 1 . , 1 r1< t.' 1 iy,t \ ♦ 2 1 F ' I a e l. 1. , 7 r 1:,‘ ` a \ 1 , L a { . � R j ' 1 ��+ -" '.- + '''.';`\; . r `t r f l�l Y , �7 { X1 I ., �4 ,z ,. 1 ` ° , i ' . *{I ✓ 1 � ' ''f "'S, ` r 816 a v I . + 1' i I r 1 � �( x 7 t �� 4� ,t'''' ♦ � , .. � * a A, � 9 �� /) J A i `w ill p .' I s' "`"' '',.' r t fi � ,. q. Z 1 ,� , t J.. V ' Q '1(} . t • ., "IF . :`+Fri 1' 4 , +1 ' .i ,i^i G � xxgg V * 444''' ,,, Y� y " i y. I X yy 4 ` +-: .i.. • 1 k `' X1 1 ':jay. i 'A i r •{ • NOVEMBER 2009 12 Fourth of July Creek Hydroelectric Project Independence I'ower, LLC Reconnaissance Study and Initial Feasibility Assessment Table 3 -2: Project Basin and Nearby USGS Basins USGS Basin Site Location Size Elevation Latitude Longitude Begin End Years of Gauge ID (sq mi) (ft) (DMS) (DMS) Date Date Data Project Basin (above Intake) 9.4 750 60 0 05'24" 149 ° 16'41" _ - Project Basin (above gauge) - 10.0 100 60 0 05'53" 149 ° 18'12" 9/26/08 Current 1.0 Nellie Juan River 15237000 133 90 60 0 25'20" 148 0 43'30" 12 /1/60 7/7/65 4.6 Resurrection __..._......_ - - .._._.._. � . River 15237700 169 20 60 °08'30" 149 °25'00" 10/1/64 6/30/68 3.7 Lowell Creek 15238500 4.02 . 9 . 4 _ 6.4- 5 60 °O5 55" 149 0 26'35" 5/1/65 9/30/94 6.4 The expected discharge model will be validated and supplemented with actual stream discharge being measured at Fourth of July Creek. These combined data will be used to assess project feasibility. The stream gauge IP installed in 2008 consists of a Druck 0 to 5 psi pressure transducer coupled to a battery powered data recorder. IP regularly visits the stream gauge to perform maintenance on the hardware and to collect manual discharge measurements to calibrate the installation. The gauging location was selected because it is easily accessible, appears to have a stable stream bed profile and section, is considered unlikely to experience significant subsurface flow, and is considered representative of flows at the intake site. The gauged basin is 10.0 square miles in area, compared with a 9.4 square mile drainage above the proposed intake site. Figure 3 -2 is a picture of the installed stream gauge, Figure 3 - presents the stage - discharge curve developed for the gauge site, and Figure 3 -4 presents the calculated discharge in Fourth of July Creek over the period of record. The expected discharge is overlaid on the measured discharge in Figure 3 -4 for comparison. The expected and measured di scharge agree very well. There are six noteworthy discharge anomalies in the measured discharge data on Figure 3 -4. These events and their probable causes are summarized in Table 3 -3. NOVEMBER 2009 13 Fourth of July Creek Hydroelectric Project Independence Power, [IC Reconnaissance Study and Initial Feasibility Assessment Figure 3 -2: Fourth of July Creek Gauge Installation • w wy �4 �e` F •i F i `.a ,ce, a ^s rC'{ i. �,, c �r r J- ...- e • .r • • y a y S1 _ C.Y Figure 3 -3: Stage - Discharge Curve for Fourth of July Creek Stream Gauge 140.(1 - - - -- — 120 -0 - y =16 .109x +151.16x 503.93x +ti 01. R' -1 100.0 - y 800 60 -0 400 20.0 0 1) 3 -50 -3.30 -3.10 -2.90 -2.70 250 -2 -30 -2.10 -1.90 -1.70 -L30 Stage (ft) NOVEMBER 2009 14 Fourth of July Creek Hydroelectric Project Reconnaissance Study and initial Feasibility Assessment Independence Power, LLC Figure 3-4: Measured and Expected Discharge at Fourth of July Creek Powerhouse Site 400 — Expected Discharge at Intake — Calculated Discharge at Intake 350 e Measured Discharge \ 1 I See Table 3-2 for event description. I 300 G 250 F a t 200 G I i I 150 A i i ii ,E , 1 0 set at gauge loll s changed by late t..k.,;,,....„......,..„„_______L, . July 2009 floors. / Dischouge cannot he 50 it, repotted until new slags discharge curve is developed. n 9/1/0 111/c'O5 11 /I0 /118 I2/I.i1/08 1 /19,'09 2123199 30tIj09 51411/9 6/1 7 13/09 5 /l ?y09 9121/09 1I1/20119 NOVEMBER 2009 25 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment Table 3 - 3: Discharge Anomalies in Fourth of July Creek Discharge Record Graph Key Dates of Discharge (Fig 3 -5) Anomaly Discussion A October 10 to 13, Actual flood event. Fight inches of rain recorded in Seward 2008 over four days. Likely snow at higher elevations. B December 13 to 19, Gauge and /or creek section affected by ice formation due to 2008 cold snap (nightly temperatures below 10`F) December 27, 2008 Gauge and /or creek section affected by ice formation due to to Januar 8 2009 cold snap (nightly temperatures below 0°F). D January 14 to 20, Actual flood event. Six inches of rain recorded in Seward 2009 over seven days. Likely snow at higher elevations. January 31 to Gauge and /or creek section affected by ice formation due to February 13, 2009 cold snap (nightly temperatures below 0 °F). Actual flood event. No precipitation, but day time F July 5 to 16, 2009 temperatures in the 70s and 80s "F accelerated snowpack and glacier melt. Actual flood event. 5.2 inches of rain recorded in Seward G July 20 to 30, 2009 over 13 days. This flood changed the creek section at the stream gauge, requiring a new stage - discharge curve to be developed. Temperature and precipitation data compiled from National Weather Service station logs for Seward, Alaska (Station x50- 8377). Figure 3 -5: Measuring Stream Discharge in Powerhouse Vicinity (April 2009) vf y :M1. 1V V V L1VIUJ VVJ /6 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment 3.2.1 Flood Potential The project is not subject to coastal flooding hazards from storm surges, waves, or tsunami. The project is subject to flooding on Fourth of July Creek and Godwin Creek. Flooding may come from two causes - instantaneous surface runoff of precipitation and surge- release flooding caused by landslides or avalanches that temporarily block a stream. Both flooding mechanisms occur on Fourth of July and Godwin Creeks. Previous floods of note include: A flood on September 15 -16, 1982, with an estimated peak discharge of 4,700 cfs at the levees. This estimated discharge represents the combined discharge from Fourth of July and Godwin Creeks. The USGS estimated this flood event has a 10- to 25 -year recurrence interval. The USGS estimated the October 10 to 11, 1986 storm event to have a 100 -year recurrence interval. Normalized instantaneous flood discharges from this storm for basins in the Seward vicinity varied from 300 to 1,000 cfs per square mile. Seward- vicinity basins similar in size to the project basin experienced estimated peak instantaneous discharges of 500 to 600 cfs per square mile. Based on these data, the 100 -year peak flood discharge at the project intake site is estimated at 5,600 cfs. A surge - release flood occurred on Godwin Creek during the October 1986 storm with an estimated peak discharge just upstream from the alluvial fan of 30,000 cfs. The USGS characterized this flood flow as having a velocity of 16 feet per second, width of 170 feet, and depth of 12 feet. The levees were overtopped and severely damaged, but successfully confined this flood. The 1986 storm caused surge - release floods of similar magnitude in several basins around Seward. 3 USGS analysis of the Fourth of July Creek basin indicates the presence of perched glacial deposits capable of producing surge - release floods like the 1986 Godwin Creek flood. Conditions for such floods to occur are present in the canyon between the intake and powerhouse and also upstream of the intake location. In addition to flood hazards from Fourth of July Creek, floods on Godwin Creek could endanger the powerhouse, site access, and power lines. Flood hazards based on these data are summarized in Table 3-4. WRIR 87 -4278. USGS; Anchorage, Alaska; 1988. NOVEMBER 2009 17 3 3 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment Table 3 -4: Initial Assessment of Project Flood Hazards Location / Design Recurrence Feature Flood Interval Basis How (cfs) (years) Intake 20,000 100 1,600 cfs / sy. mi. surge- release flood up 4tF of Jules Powerhouse 20,000 100 1,600 cfs/ sq. mi. surge-release flood up 4'h of July. Access Road 30,000 100 2,200 cfs/ scmi_surge_ release flood up Godwin. Power Line 30,000 100 2,200 cfs/ sq. mi. surge- release flood up Godwin. 3.3 GEOTECHNICAL Geology in the project area can be generalized into two groups. Steep mountainous areas characterized by shallow or exposed bedrock, and flatter or valley bottom areas characterized by a variety of fluvial and glacial deposits. Bedrock areas in the project vicinity generally consist of alternating units of moderately metamorphosed greywacke and phyllite. Greywacke is a sedimentary rock comprised of sand -sized grains with a fair amount of fine grains. Phyllite is a low grade metamorphic rock derived from silty shale. The bedrock in the general Seward vicinity was deposited 70 to 90 million years ago. The bedrock in the project vicinity has a foliation strike about north- south, with a dip of 85 degrees. Geotechnical investigations for the industrial park development included borings and seismic profiling of the valley area. Glacial deposits in the project area include lateral moraines of loose silt, sand, and gravel, with minor amounts of clay, cobbles, and boulders. The Fourth of July Creek valley floor is composed of coarse sands and gravels with some silt. This material is coarser, including cobbles and boulders towards the head of the valley, and finer towards Resurrection Bay. Test borings indicate alluvial depths in excess of 30 to 50 feet and a consistent absence of permafrost in the valley floor. 'There is a large outcrop of sandstone exposed in the middle of the valley, located near the dikes upstream of the prison facility. The alluvial fan below the proposed powerhouse site would be used for access to the project and also for a transmission line from the powerhouse to the existing SES system located on the lower alluvial fan. Available information and site review indicate that conventional design and construction methods will be appropriate for these improvements. Based upon site review, the powerhouse site is comprised of alluvial or glacial deposits over bedrock. Site investigations will be necessary once a specific powerhouse site is Information is condensed from Fourth of July Creek Industrial Development Feasibility Study, Arctic Environmental Engineers, March 1979. Also: Flood of 1936 at Seward Alaska: WEIR 87- 4278, USGS, 1988. NOVEMBER 2009 18 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment identified to determine the presence, depth, and quality of bedrock. It may be desirable to anchor the powerhouse foundation to bedrock if suitable rock is present at the powerhouse site. Based upon site review, both penstock routes are comprised of a combination of shallow bedrock, organic soils, and mineral soils. Shallow bedrock areas will require ripping or blasting to establish a bench for construction and access. The greywackes and phyllites found in the area do not present unique challenges for this type of construction. Construction in areas of organic or mineral soils can be completed using conventional methods. The intake site consists of an incised rock notch roughly 50 feet deep by 20 feet wide. The exposed rock on the cliff walls appears competent and may be suitable for a concrete darn. Ceotechnical investigations and engineering analysis are necessary to determine what type of dam is best for the intake site. 3.3.1 Mass Soil Movement The steep slopes, perched glacial deposits, and heavy rains characteristic of the project area are known to cause mass soil movements within the project drainage. These slides generally occur when intense rainfall causes glacial deposits on steep bedrock slopes to fail and collapse. When the resulting landslide impounds a creek or river, the surge - release floods discussed in Section 3.2.1 can result. Mass bedrock slabbing or slides are less common owing to the near - vertical strike of bedrock in the project area. In the 1986 flood, soil failures in the mountains around Seward principally occurred on slopes greater than 32 degrees (63% grade) in areas of shallow (a few inches to two feet) till soils underlain by bedrock 5 . These conditions occur in the Fourth of July Creek basin, but not in proximity to the intake, penstock, or powerhouse locations. 3.3.2 Avalanche A number of well- defined avalanche chutes and hazard zones are evident in the immediate project vicinity. Avalanches along the south side of the valley have been observed with runouts of 200 feet from the foot of the mountains, and significant powder blasts out to 400 feet. 6 Avalanche hazard areas will be avoided by appropriate routing and positioning of project features. 5 WRIR 87 -4278, page 6. e Fourth of July Creek Industrial Develoyiueut Feasibility Study, Arctic Environmental Engineers, March 1979 NOVEMBER 2009 19 Fourth of July Creek Hydroelectric Project Independence Power, LTC Reconnaissance Study and Initial Feasibility Assessment 3.4 PROJECT LAND The intake, penstock, and powerhouse sites are all located on land owned by the State of Alaska. Power line and project access routes are primarily on land owned by the City of Seward. These routes would also cross state land near the powerhouse site. There are no federal or private land holdings in the project footprint. Land ownership is indicated on Figure 3 -6. The project area is zoned by the City of Seward as 'Resource Management'. Responsible hydroelectric development is consistent with the description of the Resource Management district in the Seward City Code: "SCC 15.05.025(b)(13): Resource Management (RM): Lands which are generally undeveloped and cannot be precisely zoned due to inadequate information on the extension of public services and utilities; the suitability of the land to support commercial, residential, industrial or public uses, and other possible environmental considerations." 3.4.1 Site Control Requirements IP will require legal access to the project site across City of Seward land. There is a 100 - foot wide section line easement between sections 8 and 17 that may be appropriate for part of the power line and site access road, but site conditions will require some deviations from this easement. Authorization can come in the form of platting a right - of-way or access easement to the site, or executing some other form of access agreement with the City of Seward. IP will require authorization to develop the project on state land. Consultations with ADNR indicate this will consist of easements for the penstock, access, and power line routes, and leases for the intake and powerhouse sites. NOVEMBER 2009 20 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment Figure 3 -6: Land Ownership in Project Vicinity LEGEND ., 1 u4`IHAE.HLU AREAS AXE. i=W /NEo ilk w " I ' Y Co 4 :;E54'AFi'D L STATE LAND UN LESS ANNOTATED OTHER','iISE. //// CF'IJGA.CH NA CONA.L 2. PRO'ERTY LINES ARE APPROXIMATE AND FOR / // , / / FOREST HOUNDARY ILLIJSTRAIIVE AND PLANNING PURPOSES ONLY. / / /// SF HARD CITY L IMIT 3. LAND STATUS AND OWNERSHIP IS RASED IJPON REVIEW OF STATE STATUS PLATS REC HEED PLATS, AND OTHER ...'....` ph .,I" Pt:N"T47CK /4iTGF, 5 PUBLIC INFORMATION. LAND STATUS AND OWNEREHW SHOWN ON THIS MAP IS SUITABLE ,FOH PLANNING ' I PD4VFR /ACCESS PURPOSES ONLY. INFORMATION ON THIS MAP SHOULD BE LJ 5 t VERIF EID PRIOR ID USE FOR O(HER PURPOSES. f_ I I 1 MILES 4. VAP FXTFNTS ARE WITHIN SEWARD ;JER,P T1 5, R1 E. \\ / / 5 4 CHUGACH NATIONAL FOREST \ / / / SEWARD CSTY LIMSTS 7 8 9 POWERHOUSE P NSTO 1 + LOCATION cr ROUT At I _ It \ \ r_fik W R RY f ti -- J INTAKE LOCATION I: E' Arta L + \ POWER LINE I , � ,A,V.if \� % `t ACCESS 1 -A CESS RG iF NOVEMBER 2009 6 a 21 2 -,I Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment 4.0 PROPOSED PROJECT DESIGN 4.1 ANALYSIS OF PROJECT ALTERNATIVES Several access and transmission corridors to the project are possible from the existing roads and transmission lines in the project area. The preferred route will depend on site conditions, land status, technical and economic factors. The topography of the project area creates well - defined intake and powerhouse sites. A variety of intake configurations may be viable. Defining a preferred intake configuration will require additional field investigations and engineering analysis. 'The type of intake will in part be determined by the penstock routing - there are two general penstock routes that warrant consideration. One penstock route (Route 'A') requires an approximately 40 -foot tall dam at the intake location to provide sufficient elevation at the project intake to cross a saddle and head around the north side of a hill to avoid steep sidehilling along the canyon. This route is about 6,100 feet long, rejoining Fourth of July Creek at the powerhouse site just below the canyon. An alternate route (Route 'B') can utilize a shorter intake structure, following the north side of the creek along the rim of the canyon for about 5,100 feet down to the powerhouse. For Route B to use a shorter dam or intake weir, significant rock benching along the upper 1,000 to 1,500 feet of the canyon would be required, or the penstock would need to be hung from the canyon walls. Route B includes about 500 feet of grades near 50 %. Because of the steep grades and location in the upper canyon, separate penstock and access routes will be necessary for a significant portion of Route B. Additionally, Route B will likely have greater erosion potential than Route A. Project parameters for the two different penstock routes and key route considerations are summarized in Table 4 -1. Penstock routes arc shown in Figure 4 -1. NOVEMBER 2009 22 �5 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment Table 4 - 1: Comparison of Fourth of July Creek Project Configurations Parameter Penstock Route 'A' Penstock Route' B' with Darn without Dam Intake Elevation (ft) 790' 750' Powerhouse Elevation (ft) 120 - - -- — ' 120' Gross Head (ft) — -- - - - -- h7o' 630' Net Head (ft) 636' Penstock Length (ft) 6,100' of 5,100' of and diameter (inches) 48" pipe P 48' n e Design Flow (cfs) 120 120 Installed Capacity (kW) P Y ) 5,400 kW 5,100 kW Plant Cacit Factor 470 W Minimum Annual Output k 2. p � ) �10 kW 230 kW Net Annual Energy Generation (kWh) 21,700,000 kWh 20,500 000 kWh Transmission Length (mi) 2 miles 2 miles Penstock Route Description Around knob ob Alon rim of canyon Penstock Length 5,10 6,100' ��— —�— ---._—.__------ __--- __--- ' -- __...___-- - ----- 0 - -._.____.__.._ Maximun ride __- -_- --_ -- 2 0% 50% Intake In — .__-- _______ 40 foot tall dam 15 foot tall structure Route requires less sidehilling in rock, fewer steep grades, less work near the creek and along steep Discussion slopes. Route A may encounter some marshy areas. Route B is shorter, but likely involves more rock work, steeper grades, more clearing, and greater erosion potential. NOVEMBER 2009 23 .j 'o Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment Figure 4 - 1: Proposed Project Layout and Penstock Route Options V. ij . �t r+ { 4 „ ° , .. ' , P . i " ', s # ; ,a � » *b %\ ELEV: 120' . a $ ,, 14w1 , s "y r , '�' a' ' ! (,� ' +F �tk j Y' ` . � , 4I NIP y + r3. : 1 -- Vv % e 4 i 4 Y )" f�5 � w.7:. W ' ' et- ` ro ; 3 e " s 0 x; xr L' ✓e;:5 rA - - ty .Atli -1.0k. V( F_ \v }: � ,i z ` �. : w' '� l Y s , ' = "-., - a- • '`••• .. •:' - ' • "--=‘,..\ C ,, 04 " ..- ,°-e•"1:"* ,, fil ' 11 ' ,,.. tsr °= aw a F' ;< ' 41 e .; tr, 4 g t - °r , e C - € W # A-:,-,,"4.1.... 4 • L� K 4 j, "Yl • i " - dy ,, 14, " 's .1= i ,''. 1 a §rr e w � r� a" ' ‘ 1 ,tii` 1. : 114 ',., 1 0 `, t Hn ait_ v,t "9 � # it. r c n cw yyy .':.I ,< i* $ a ,' t + AAV n r y r F av ir5o ati � '� , ' ' .1.1' � .,', " �1 k G x ` +r y) �s' ' ?tr tya s. i s a s PENSTOCK! � "" 3 fury a, - £ . -, �' k p. ACCESS ROUTE 'B' '* i g - a LENGTH: 5,100' ' 4 / ! �, 9 f ��y ',.,'1, 3, E �. ,-.%- �fi � �' 'w 6.'N' g i ' '1)4- , t .. 6� .; �; .: --,,, ¢ „ • , -4, , ' Y _ ,. w x d 1h dv'. „J.,* ` w. a,y „�; � ” } i. i �r wF” .."; "l A-fi' d. '. 4. y 1 � 9 }'(( ��yy,, q � � a F d• '{:� 'f�Fg� - 0. 'A`1r' ,n�n M� �a� '�`UU f x a''° • " � Y 1 {d' e+. `§ "- 'R . "� r" ' y 1 4 7 1 A i PENST w � a� ..r-l' : � ` �� � ACCESS ROUTE 'A' �� ;. K ' . ". , '` . LENGTH: 6,100' t #.s „' w �,,, ' '" tl(�TF ^3 4. r'" 1 1 koFTFF ' i'1Tl AE; FP l t: Rw ''''41''''''',,,a_'";; ' ; t : , , r ` : L EL r_r`LILLLL ;1 I LLI r •'ess , ,� r + ! L hd /' CBAr IV'.., L'U1 ' .. P I41 C' ,t ., C -2, :, ,, " } +i '�; r ii INTAKE STRUCTURE ° E Lt:V:750' l 1 i;'ia ; • . } SPI 790' ---- -1 I ___ _ NOVEMBER 2009 24 Z= i Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment 4.2 RECOMMENDED PROJECT Defining the optimal project configuration will require additional engineering studies. At this stage in project development, penstock Route A – around the knob, is considered a superior route. A site plan showing the recommended project is shown in Figure 4 -1. The project's overall configuration and size is quite similar with the Kasidaya Creek Project recently completed by Alaska Power and Telephone, Inc. near Skagway, Alaska. These two projects are compared in Table 4 -2. Table 4 -2: Comparison of Kasidaya Creek and Fourth of July Creek Projects Fourth of July Creek Kasidaya Creek Attribute (Commissioned 2009, (Proposed, Route A) for comparison) Installed Capacity - _ 5.4 MW 3.0 MW Operational Mode Run of River Run of River Average Annual Output 21,700 MWh 11,900 MWh - -------- _._ -___ --- - -- Gross Head 670 ft 537 ft Intake Structure 100 it long x 40 ft tall 70 ft long x 16 ft tall - -�- reinforced concrete --------- - - - - -- - - - - -- lildraulic Capacity - _ v 120 cfs 88 cfs Penstock Leith 6,100 ft 4,000 ft - -- - -- - - - - -- Penstock Diameter 48 inches 42 inches Powerhouse TBD 24'x48' Metal Building Capital Cost $10.8 to $21.6 million (reconnaissance estimate) $10 million Capital Cost per Installed kW $2,000 to $4,000 per kW $3,330 per kW 4.3 ANNUAL ENERGY PRODUCTION Discharge data collected to date at Fourth of July Creek supports continued use of the expected hydrology developed from adjacent USGS - gauged river basins for project analysis. Based upon the expected hydrology and measured gross head of the project, average annual net energy production is estimated at 21,700 MWh. For perspective, this is approximately 1 /3rd of the annual energy SES purchases from CEA. Expected seasonal energy generation is shown in Figure 4 -2. NOVEMBER 2009 25 "1; ( l Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment Figure 4 -2: Expected Seasonal Power Output 6,000 — — • 5,000 - 4,000 - 3 3,000 - ) 11 v 0. OA � . ' -,000 - 'q I `� —Expected Powcr Generation (from Hydrology Model) rsx 1,000 - V Expected Power Generation (From 2008 -09 Discharge Data)] Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Date 4.4 CONCEPTUAL SYSTEM DESIGN 4.4.1 Site Access Two site access points are possible. These are (1) the City of Seward's quarry or (2) the road leading from the City's water wells east past the north perimeter of the Spring Creek Correctional Facility to the northeastern end of the levee system. Access from either point could traverse north along the levee to the section line between sections 8 and 17; and then follow the section line to the powerhouse location. The overall length of the access road would be about 1.2 miles from the quarry or 0.7 miles from the levee. Either route would be starting from restricted - access roads on City of Seward property or easements, requiring IP to coordinate access with the City of Seward and /or the correctional facility. Design of the road will need to consider the flooding characteristics of both Godwin and Fourth of July Creeks. Because there is a high probability for both of these creeks to shift their course during the design life of this project, it may be appropriate to structure the access agreement with the City of Seward for a low- impact road constructed from local material that can be readily abandoned, repaired, or rerouted after flood events. There is an ample supply of suitable aggregates on the flood plain for such road construction. NOVEMBER 2009 26 "l Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment 4.4.2 Power Line Approximately two miles of new power line are needed to connect the powerhouse with the existing 69 kV line along Nash Road. This line may be an overhead line similar to the existing lines in the area. The new line would likely start at the existing substation at the corner of Nash and Mustang Roads. The power line route through the existing industrial park, correctional facility, and quarry developments will need to be coordinated with existing land uses and property owners. Two potential routes are shown on Figure 3 -7. The last 3,000 feet of the power line route near the powerhouse traverses the active alluvial fan of Godwin and Fourth of July Creeks. Avalanche hazards near the mountains require that this line be located out on the alluvial fan where it is exposed to flood hazards. During the design life of the project, any alignment through this area has a good chance of being inundated by floods and may be subject to inundation, flood velocity, and erosion hazards. The most practical way to mitigate for these hazards is to design the approximately 8 to 12 power poles that will be located in this area to withstand the flood hazards. Because of the flood hazards in this area, which includes significant scour potential, burying this part of the power line is not practical. 4.4.3 Powerhouse The powerhouse will be located on a hill above the alluvial fan at the lower end of the Fourth of July Creek canyon at an elevation of about 120 feet. This will provide flood protection from both Fourth of July and Godwin Creeks. The exact siting and elevation of the powerhouse should include analysis of potential flood stages at the powerhouse site from Godwin and Fourth of July Creeks. A small parking area will be located at the powerhouse. Lighting will be installed at the powerhouse. The powerhouse is proposed to house two Pelton -type impulse turbines. Each turbine would he a two -jet machine with a rated capacity of 2.7 MW. The total installed capacity of the project would he 5.4 MW. Each turbine would drive a synchronous generator. The powerhouse would also house controls, switchgear, and associated equipment necessary for operation of the project. 4.4.4 Penstock The penstock (using Route 'A') will be 48 inches in diameter and approximately 6,100 feet long. The penstock will generally he co- located with the access trail to the intake. It will be buried where practical. Where shallow bedrock or other adverse conditions preclude burial, the penstock will be built above grade on pipe supports. Power and communications will be installed to the intake to operate and control the intake systems. These will be installed adjacent to the penstock. NO VEMBER 2009 27 "j 0 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment 4.4.5 Intake The intake will be located in a bedrock notch at the upper end of the Fourth of July Creek Canyon. This notch is approximately 20 to 60 feet wide and 50 feet tall, and accommodates the entire flow of Fourth of July Creek. Visual inspection of the notch suggests that it may be suitable for a 40 -foot tall concrete dam. Geotechnical investigations would he necessary to confirm this and guide design of such a darn. If a concrete darn is not feasible at this site, a rock -fill dam with concrete faces may warrant consideration. Figure 4 -3: View Looking Downstream at Intake Location (April 2009) . t 1+t $ - '31h..,•. )01, i0 • d e ! e a tit tAta s -- 4.5 CONCEPTUAL INTEGRATION DESIGN Utility dispatchers with SES and /or CEA would have the ability to dispatch the project. Project controls would be automated, and would allow for authorized remote access, interrogation, and control of the project works. 4.6 MAJOR REMAINING TECHNICAL CONSIDERATIONS 4.6.1 Hydrology IP has collected approximately one year of discharge data at Fourth of July Creek. Continued stream gauging is appropriate to improve the characterization of Fourth of NOVEMBER 2009 28 ell Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment July Creek's hydrology. This will be useful in designing the project for flood events and sizing the project. 4.6.2 Geotechnical Geotechnical investigations are needed to identify a specific powerhouse site, determine feasibility and design parameters for a dam at the intake site, and to determine the extent and nature of rock work needed for site access and penstock construction. 4.6.3 Topographic Survey A detailed topography survey of the project area will aid in locating and designing the access road, transmission line, powerhouse site, intake structure, penstock route, and other project features. Given the extent and rugged nature of the area involved, a LIDAR survey may he cost - effective. 4.6.4 Penstock Routing Two penstock routes are apparent. At this time, Route A around the hill, appears more favorable than Route B along the canyon. Further technical and economic analysis will determine which route is superior. 4.6.5 Intake Configuration The intake configuration will depend on the outcome of technical and economic analyses of the intake and penstock design options. If Route 'A' is preferred, as assumed in this study, then the intake will consist of an approximately 40 -foot tall dam creating an impoundment approximately three acres in area. Intake works would be located at one end of the dam or built into the adjacent shore. Intake works would filter out any materials deleterious to the project works. NOVEMBER 2009 29 ,1- Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment 5.0 ECONOMIC ASSESSMENT Insufficient information exists to prepare an accurate financial profile of this project. Unknowns on the project hydrology, geology, permit conditions, financing arrangements, contractual arrangements, operating costs, and other factors preclude developing detailed project financial projections at this time. The next step in development of this project is a feasibility study to provide answers for these unknowns. Based upon existing information and reconnaissance activities, it appears probable that the project can be developed for an installed cost in the range of $2,500 to $4,000 per kW of installed capacity. For the proposed 5.4 MW installation, the total installed cost would be in the range of $13.5 to 21.6 million. Depending on how the project is financed, the project's benefit -cost ratio ranges from 0.9 to 2.7, and energy from the project could cost from S0.04 to $0.12 per kWh. This compares favorably with projected energy costs for other proposed energy sources for the railbelt, and also compares favorably with long -term forecasts for gas -fired electrical generation. Table 5 -1 summarizes economic projections for the project. Assumptions used to generate the estimates in Table 5 -1 are discussed on the following pages. Table 5 -1: Summary of Economic Estimates for Fourth of July Creek Project Item Low Range High Range PROJECT COSTS Probable Installed Cost $13,500,000 $21,600,000 Est. Annual Costs (O,M,R & R, etc.) (50 years) $285,000 $785,000 Est. Annual Debt Service (30 years) $600,000 $1,900,000 ESTIMATED PRESENT VALUE OF PROJECT COSTS $19,000,000 $49,100,000 PROJECT BENEFITS Est. Displaced Energy Generation (kWh /year) 21,700,000 kWh / year Est. Wholesale Cost of Energy (Avoided Cost) $0.077 / kWh Est. Annual Value of Displaced Fuel ($ / year) $1,670,000 / yr Estimated Present Value of Displaced Fuel (50 years) $42,500,000 Est. Net Gain in CEA /SES Grid Efficiency 4% Est. Reduction in Grid Energy Losses (kWh/yr) 866,000 kWh /yr Est. Annual Value of Energy $66,300 / yr Est. Present Value of hnproved Grid Efficiency (50 years) $1,700,000 Est. Annual Revenue from Environmental Attributes $0 $434,000 Est. Present Value of Environmental Attributes (50 years) $0 $8,500,000 Estimated Present Value of Project Benefits (50 years) $44,200,000 $52,700,000 Estimated Benefit -Cost Ratio (Energy Only) 2.3 0.9 Estimated Benefit -Cost Ratio (All Attributes) 2.8 1.1 ESTIMATED COST OF ENERGY ($ per kWh) $0.04 / kWh $0.12 / kWh NOVEMBER 2009 30 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment 5.1 PROJECT COSTS The estimated installed cost of the project is based on a unit installed cost of $2,500 to $4,000 per kW. The 3.0 MW Kasidaya Creek project near Skagway, commissioned in 2009, was completed at an installed cost of $3,300 per kW. The technical parameters and configuration of Kasidaya Creek is very similar to Fourth of July Creek. Annual costs for operations, maintenance, repair, replacement, and margins are estimated to be in the range of $0.013 to $0.036 per kWh. The annual estimated debt service payment is estimated to be in the range of $0.028 to $0.088 per kWh. The low -end of this range assumes the lower installed cost, a $2.5 million grant, and debt financing over 30 years at 4.0 %. The high -end of this range assumes the higher installed cost, no grant, and debt financing over 30 years at 8.0 %. 5.2 PROJECT BENEFITS 5.2.1 Fuel Displacement The estimated cost of energy displaced by the project, $0.077 per kWh, is based on an assumed long -term average price of $9.00 per MCF of natural gas and an average railbelt generation heat rate of 8,500 btu/kWh. 5.2.2 Grid Efficiency SES' existing energy deliveries from CEA incur approximately 3% losses on the CEA system between point of generation and point of wholesale delivery to SES. Additional losses on the SES system between delivery and use are estimated at 1.5 %. By comparison, energy from this project would incur estimated losses on the SES system of 0.5 %, increasing the overall efficiency of SES and CEA's transmission and distribution systems. 5.2.3 Environmental Attributes The project may be able to earn revenue from its environmental attributes. This will depend on the project's eligibility for government and private sector green energy programs and markets. The range of revenues from environmental attributes is based on a rate of $0.00 to $0.02 per kWh. 5.2.4 Non - Monetary Benefits The project will likely have significant non- monetary benefits. These may include: NOVEMBER 2009 31 �1 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment • Local employment. The project will work to employ qualified local residents during construction. During operation, the project would prefer to employ local residents for periodic maintenance activities. ➢ Recreational opportunities. By providing a year -round road to the upper Fourth of July Creek alluvial fan and also the alpine country along the penstock and around the intake, the project will improve public access to these areas. The land owners — the City of Seward and State of Alaska — will need to determine how this improved access is managed. ▪ Electric system reliability /stability. Having 5.4 MW of local generation will tend to improve the reliability and stability of the local electric grid. ▪ Educational opportunities. There is an opportunity for IP to work with AVTEC on training in the construction and operation of hydroelectric projects during both the construction and operational phases of this project. This synergy would benefit IP, AVTEC, and the state of Alaska in promoting a skilled workforce that is knowledgeable about hydro projects. NOVEMBER 2009 32 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment 6.0 PERMITS The following permits would be required for study, construction, and /or operation of this project. 6.1 FEDERAL PERMITS 6.1.1 FERC Licensing This project does not fall under the jurisdiction of the Federal Energy Regulatory Commission (FERC). The FERC issued a finding of non - jurisdiction for this project on November 6, 2008. 6.1.2 U.S. Army Corps of Engineers Permits The project would consist of placing structures within waters of the United States, and therefore requires a wetlands permit from the U.S. Army Corps of Engineers (COE). The project is expected to require an individual permit from the COE. Once TP delivers drawings of the project intake works and wetlands impacts, the COE will issue a jurisdictional determination and begin the applicable permit processes. 6.1.3 U.S. Coast Guard Permits Not applicable to this project. 6.1.4 U.S. Environmental Protection Agency A Storm Water Pollution Prevention Plan ( SWPPP) will be required for the project during construction. ADEC has assumed responsibility for managing the SWPPP program from USEPA. 6.1.5 Federal Aviation Administration Not applicable. 6.2 STATE OF ALASKA PERMITS 6.2.1 Alaska Department of Natural Resources (ADNR) Permits 6.2.1.1 Coastal Zone Consistency Review The project is located within the Kenai Peninsula Borough Coastal Zone District. IP submitted a Coastal Project Questionnaire to ADNR's Division of Coastal and Ocean NOVEMBER 2009 33 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment Management on August 27, 2008. Coastal zone consistency review is on hold until the COE determines what COE permits the project will require. 6.2.1.2 Dam Safety The state's Dam Safety Program has jurisdiction over darns exceeding 10 feet in height or impounding more than 50 acre -feet of water. The proposed intake structure for this project falls under these criteria. Darn safety review is an involved technical process to verify that the darn and reservoir are adequately designed so as to not pose a public safety hazard. 6.2,1.3 Land Authorizations The project would be located on city and state land. The project will require easements for the penstock, access, and transmission alignments, and leases for the powerhouse and intake sites. IP filed applications for these easements and leases on August 27, 2008 (ADL 230487). 6.2.1.4 Tidelands Permits Not applicable to this project. 6.2.1.5 Material Sale Agreement Use of on -site materials for construction would require a material sale agreement with the owner of the applicable subsurface estate. Material sources have not been identified for this project. Potential sources include the City of Seward's quarry in the Fourth of July Creek industrial area or cut or borrow sites within the project footprint. Some of the timber cleared for the project may have commercial value. Commercially valuable timber would be sold in accordance with the land owner's preferences. 6.2.1.6 Water Use Permit / Water Rights The project will require an appropriation of water from Fourth of July Creek. A water rights application was completed and submitted to ADNR on August 28, 2008 (LAS 27051). All waters diverted from the creek at the intake would be returned to the creek at the tailrace, with no downstream change in water quantity or quality. 6.2.2 Alaska Department of Fish and Game (ADFG) Permits 6.2.2.1 Fish Habitat Permit According to the Atlas of Waters important for the Spawning, Rearing or Migration of Anadromous Fishes, maintained by AFDC, the upper limit of anadromous fish habitat on VPMBER 2009 34 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment Fourth of July Creek occurs below the proposed powerhouse location. IP submitted a Fish Habitat Permit application to ADFG on August 27, 2008. Action on this permit is on hold awaiting completion of the coastal zone consistency review. IP is working with ADFG staff to coordinate a site visit to the project powerhouse site to facilitate processing of this permit. 6.2.3 Alaska Department of Transportation (ADOT) Permits Not applicable. 6.2.4 Alaska Department of Environmental Conservation (ADEC) Permits 6.2.4.1 DEC Wastewater or Potable Water Permits Human wastes during construction would be handled by portable latrines and refuse receptacles. Human wastes during operations of the project would be handled off -site or by a DEC- permitted wastewater system located at the powerhouse. 6.2.4.2 Solid Waste Disposal Permit Solid wastes generated during construction would be hauled offsite to an approved disposal facility, burned on -site under a burn permit, or buried on -site in a permitted monofill, as appropriate to the nature of the waste and local conditions. Solid waste generation during operations would be minimal, and would be disposed of off -site. 6.2.4.3 Air Quality Permit Not applicable to this project. 6.2.4.4 Bulk Fuel Permit Not applicable to this project. 6.2.5 Regulatory Commission of Alaska In order to sell wholesale electricity to a public utility, state law requires that IP either receive a certificate of public convenience and necessity from the Regulatory Commission of Alaska (RCA) or be exempted from RCA regulations. Either action would be taken by the RCA based upon a filing brought by IP. Separately, any contract for wholesale power purchase between IP and a public utility requires RCA review and approval before it can take effect. NOVEMBER 2009 35 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment 6.3 LOCAL PERMITS 6.3.1 Kenai Peninsula Borough Because the entire project is located within Seward's city limits, no Borough permits are required for the project. 6.3.2 Plan Review The City of Seward has a plan review process this project would follow. The plan review would cover items such as planning and zoning review and approval, code compliance, coordination with utilities, any variances that may be required, and other local matters. Plan review does not normally occur until engineering documents have been completed. Because of the unique nature of this project and several key coordination issues, IP has held preliminary meetings with city personnel to begin coordination for this project. 6.3.3 Site Access All roads and property in the developed portion of the Fourth of July Creek valley are owned by the City of Seward. The city also owns sections 8 and 17, which will be crossed by the project access road and power line. Rights of way for existing roads in this area have not been platted. Access to the project site would require an access agreement with the City of Seward. 6.3.4 Utility Agreement The project will connect to the SES electric grid. This will require an interconnection agreement. If the project sells electricity to SES, a power purchase agreement will also be required. 6.3.5 Other Local Permits The project will need to obtain other approvals, such as obtaining a city business license. NOVEMBER 2009 36 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment 7.0 ENVIRONMENTAL CONSIDERATIONS 7.1 THREATENED AND ENDANGERED SPECIES Resource agencies were consulted during completion of the Coastal Project Questionnaire. The project area is not designated as critical habitat for any threatened or endangered species. 7.2 FISHERIES AND WILDLIFE 7.2.1 Terrestrial Wildlife Previous studies and field observations have identified the general project area as being habitat for black bear, moose, and winter mountain goat range. The area is likely habitat for most of the wildlife and game typically found in south central Alaska. The project area has not been designated critical habitat for any species. The project is not expected to significantly affect terrestrial wildlife or its habitat. Project features will not alter a significant amount of habitat area, nor will they deter natural migration through the project vicinity. The total project footprint, including access roads and utility alignments, is estimated to be less than 30 acres spread over a distance of over three miles. 7.2.2 Fisheries The project is not expected to have any significant effect on fish, fish habitat, or fisheries. The bypassed reach of Fourth of July Creek is not listed by ADFG as an anadromous stream. Natural barriers in the vicinity of the powerhouse site likely limit the upstream extent of any resident fish that may be present in the creek. This project is a run -of -river project, so it will not affect water quality or quantity in anadromous fish habitat below the powerhouse. The project may include a 40 -foot tall darn at the intake. This darn will initially create a small reservoir, but the reservoir is too small to significantly affect water quality. This reservoir will quickly fill with sediment, eliminating any long -term potential to affect water quality. 7.3 WATER AND AIR QUALITY The project will not affect air or water quality. 7.4 FLOOD CONTROL The project does not offer significant flood protection potential to downstream improvements. The project may include a 40 -foot tall dam at the intake site. The NOVEMBEtt 2009 37 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment impoundment behind this dam would initially have a volume of approximately 80 acre - feet, but will rapidly collect sediment, reducing its effective volume. Even at its initial volume, this impoundment represents less than three minutes' flow at the estimated 100 - year design flood of 20,000 cfs. Accordingly, this project offers very little if any flood control or protection for downstream improvements along Fourth of July Creek. 7.5 WETLAND AND PROTECTED AREAS The project would include selected disturbance or fill of some wetlands areas. At a minimum, this would include the intake and tailrace structures. The penstock and project access routes will likely also require some disturbance or fill of wetlands. 7.6 ARCHAEOLOGICAL AND HISTORICAL RESOURCES No significant archaeological or historical resources are known to be present in the project area. 7.7 LAND DEVELOPMENT CONSIDERATIONS Not applicable. 7.8 TELECOMMUNICATIONS AND AVIATION The project will not affect telecommunications operations in the area. The project would include construction of new overhead power lines in the Fourth of July Creek area. These would be similar in scale to existing lines in the area, and would not affect aviation. 7.9 VISUAL AND AESTHETICS RESOURCES The project would consist of the following visual elements: Y A road continuing up the Fourth of July Creek alluvial fan from the existing road system approximately 1.5 miles to the powerhouse. This road would likely be gravel, and would include one or more bridges. A transmission line between the existing substation in the industrial park and the powerhouse. For technical reasons, this line will likely be required to be overhead. A powerhouse structure at the top of the Fourth of July Creek alluvial fan, near the bottom of the canyon. This building would be much smaller than the major buildings at the Spring Creek Correctional Facility or Seward Ship Yard, and would be located about 1.5 miles farther up the valley than existing buildings. NOVEMBER 2009 38 r '; Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment An access road extending up the hill at the head of the lower Fourth of July Creek valley. This road would initially follow the old logging road through the clear cut on this hill, and then wrap around the hill and towards the intake site. The penstock would generally parallel this road, and may be buried or above • grade. Shortly after this road exits the old timber sale clear cut area, it would wrap around the hill and is no longer visible from existing readily accessible locations on the ground. r An intake structure at the 750 -foot elevation on Fourth of July Creek. The intake site is not visible from existing readily accessible locations on the ground. None of the project features would be prominently visible from downtown Seward or vantage points on Resurrection Bay. The project's greatest visual impact is expected to be from the air, for example from the vantage point of air traffic between Seward and tourist operations on Godwin Glacier. 7.10 MITIGATION MEASURES None proposed. NOVEMBER 2009 39 0 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment 8.0 FINDINGS AND RECOMMENDATIONS Based upon the findings in this reconnaissance study, the project appears viable and warrants continued study. The next steps to advance the project include additional data collection and a feasibility study; preliminary engineering; continued processing of permits necessary for the project; and continued discussion with SES regarding a power sales contract. The scope of the feasibility study and preliminary engineering includes: Feasibility Study Tasks Continue to measure stream discharge to characterize basin hydrology. Obtain detailed topographic data over the project footprint to support design and analysis activities. ➢ Conduct analysis of flood stages at key project locations to guide project design. ➢ Conduct geotechnical investigations. Conduct engineering analysis to determine optimal penstock routing. Project cost estimate and economic analysis. )'- Draft Business Plan. Feasibility study report. Permitting Tasks Negotiate access agreement with City of Seward. Negotiate power sales terms and interconnection requirements with SES. ➢ Continue to process all permit applications listed in Section 6. Preliminary Engineering Tasks • Conceptual dam design. • Penstock routing and design. • Powerhouse siting and design. Access routing and design. Transmission routing and design, interconnection design. NOVEMBER 2009 40 r Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment APPENDIX A — PUBLIC MEETINGS AND MEETING RECORDS NOVEMBER 2009 APPENDIX A PAGE 1 Fourth of July Creek Hydroelectric Project Independence Power, LLC Reconnaissance Study and Initial Feasibility Assessment Meetings to discuss project issues with various stakeholders are summarized below. Meeting records and /or minutes as appropriate are provided on the following pages. Table A - 1: Summary of Project Meetings Meeting Date Venue / Audience / Subject Participants Meet to provide overview of project. September 25, 2008 Willard Dunham, Vice- Discussed key issues that will need to be Mayor addressed, including power sales contract and site access. Introduction and overview of project, City Manager, Phillip December 5, 2008 Oates scope, status. Discussed key issues that SES Manager Tim Barnum will need to be addressed, including power sales contract and site access Gave a presentation on the project to the February 23, 2009 City Council Meeting city council, answered questions from the council. Ports and Commerce Gave a presentation on the project to the April 1, 2009 PACAB, solicited questions from the Advisory Board PACAB and attendees. Ports and Commerce Gave a project update to PACAB to September 2, 2009 report on findings of reconnaissance and Advisory Board stream gauging efforts. NOVEMBER 2009 APPENDIX A PAGE 2 AGENDA STATEMENT eyofstk. Date: December 2, 2009 44.4s-0 To: Port and Commerce Advisory Board From: Chair Long Subject: Proposed Recommendations to Council for Amendments to SCC 7.10, Harbor and Port Facilities. BACKGROUND & JUSTIFICATION: PACAB met in a work session Nov. 24th to continue discussions on proposed amendments to SCC Title 7 re Port and Harbor facilities. The proposed amendments here are the result of that meeting. RECOMMENDATION: Review and make suggested changes to SCC 7.10 for review by the City Council Article 1. General Provisions 7.10.110. Short title. This title shall be known and cited as the Seward Harbor Ordinance. (Ord. 95 -11) 7.10.115. Purpose. The purposes of this chapter are to: (1) Maximize the safe and efficient use of the harbor; (2) Provide for the orderly management, development, and control of the harbor; (3) Protect and preserve public and private property within the harbor and the lives, health, safety, and well -being of persons who use, work, or maintain property in the harbor; (4) Prevent and discourage the use of the harbor by vessels that are derelict or a nuisance, and prevent and abate fire, health, safety, and navigation hazards; and (5) Assess reasonable fees for the use of harbor facilities. (Ord. 95 -11) 7.10.120. Interpretation. (a) Consistent interpretation and effect of invalidity. This title shall be construed, to the greatest extent reasonable, in such a manner as to be consistent with applicable federal and'state laws and regulations and any conveyances or agreements from or with the state pertaining to the harbor. If any section of this title is declared invalid, the remaining sections shall not be affected. (b) Application in an emergency. The provisions of this title shall not be construed to limit a vessel owner from taking action necessary to protect life, limb, or property in the case of an emergency. (Ord. 95 -11) 7.10.125. Implied agreement from use of facilities. The use of the harbor or the presence of a vessel in the harbor constitutes an agreement by the owner to conform to the provisions of this title, the harbor tariff, and any rule, regulation, or order made pursuant thereto, and to pay all fees and charges provided by this title or the harbor tariff. (Ord. 95-11) 7.10.130. Accident report. Any person operating a vessel involved in an accident within the harbor resulting in the death or injury of any person, or damage to property in excess of $500.00 shall, in addition to any other notices required by law, immediately give oral notice of the accident to the harbormaster and shall, within 24 hours after the accident, file a written report with the harbormaster on such form as the harbormaster may provide. (Ord. 95 -11) 7.10.135. Definitions. Whenever the words, terms, phrases, and their derivations set forth in this section are used in this title, they shall have the meaning set forth in this section. FORMAT: New Text is underlined boldt {Deleted Text is-bracketed strikethr-et+glr}; Notes indented Blue Abandoned property. "Abandoned property" means personal property which is unattended and is either not registered with the harbormaster or not in a location the harbormaster has designated for its storage. Anchor. "Anchor" means to secure a vessel to the bed of a body of water by dropping an anchor or anchors or by using a buoy or other ground tackle. Business. "Business" means any profession, trade, occupation, or calling carried on for a profit or livelihood, including every kind of commercial enterprise, and including the operation of games, machines, or mechanical devices. City. "City" means the City of Seward. City manager. "City manager" means the city manager for the City of Seward or the designee of the city manager. Derelict. "Derelict" means any vessel which is or appears to be forsaken, abandoned, deserted, or cast away, or which, in the opinion of the harbormaster, is unsound, unseaworthy, or unfit for its trade or occupation. Distress. "Distress" means a state of disability or a present or obvious imminent danger which if unduly prolonged could endanger life or property. Dock. "Dock" means any pier, float, slip, wharf, finger, ramp, gangway, bulkhead, dolphin, or sea wall within the harbor that is owned or operated by the city. Emergency. "Emergency" means a state of imminent or proximate danger to life or property in which time is of the essence. Finance director. "Finance director" means the finance director for the City of Seward or the designee of the finance director. Harbor. "Harbor" means all waters, tidal areas, and adjacent upland areas owned by the city and listed and identified in the land use plan as "harbor commercial and industrial," together with any and all facilities of a port or maritime nature either publicly or privately owned that are primarily used by or for the service of vessels, including the port facilities located at SMIC, and all docks, pilings, hoists, parking areas, leased water areas, concessions and/or service facilities located within the area defined herein. Harbormaster. "Harbormaster" means the harbormaster for the City of Seward, the deputy harbormaster, or any assistant harbormaster or other person designated by the harbormaster to act in his place. Harbor tariff "Harbor tariff' means the City of Seward Terminal Tariff as approved by the city council and amended from time to time. Land use plan. "Land use plan" means the land use plan authorized in Title 15, Chapter 15.05 of the Seward City Code as amended from time to time. Moor. "Moor" means to secure a vessel other than by anchoring. Moorage. "Moorage" means the process of mooring or the state of being moored and, when the context requires, the fees for such acts imposed by under title. Nuisance. "Nuisance" means a derelict vessel, a vessel which is not kept and regularly pumped free of excess water inside its hull, a vessel which is submerged, grounded, disabled, or in immediate danger of sinking, or a vessel which, in the opinion of the harbormaster, creates or constitutes a fire, health, safety, or navigation hazard. A vessel shall be presumed to constitute a nuisance if: (I) The vessel is obstructing a waterway, or is endangering life or property and has been left unattended for a continuous period of 24 hours; or (2) The vessel has been moored, anchored, or otherwise left in the harbor and: FORMAT: New Text is underlined bold; [Deleted Text i "•9- R- str }; Notes indented Blue a. The vessel's state registration number or marine document has expired and the registered owner no longer resides at the address listed in the vessel registration or marine document records of the United States Coast Guard, the State of Alaska, or the harbor; b. The last registered owner of record disclaims ownership and the current owner's name or address cannot be determined, or the vessel identification number or other means of identification have been obliterated or removed in a manner that nullifies or precludes efforts to locate or identify the owner; c. Vessel registration records of the United States Coast Guard, the State of Alaska, or the harbor contain no record of the vessel ever having been registered or documented, and the owner's name cannot be determined; or (3) The vessel does not clear the harbor at least three times per year. Owner. "Owner" means the registered owner of a vessel or a person authorized to act on behalf of the owner. The following persons are presumed to have authority to act on behalf of the owner of a vessel: (1) The master or operator of the vessel; (2) A person entrusted with the management of the vessel; and (3) An officer or agent appointed by (a) the owner, (b) a charterer, or (c) an agreed buyer in possession of the vessel. Person. "Person" means any natural person, partnership, corporation, or governmental agency. A natural person and a corporation may he considered the same if the former has control over the latter. Processed fish. "Processed fish" means fish that has been prepared to render it suitable for human consumption, industrial uses, or long -term storage including, but not limited to, fish that has been cooked, canned, smoked, salted, dried, frozen, or rendered into meal or oil, but does not include fish that has only been deheaded, gutted, or iced. Qualifying interest. "Qualifying interest" in a vessel means the interest of a person who owns the vessel or, under the provisions of a written charter or lease, has exclusive control over the operation and navigation of the vessel. A person who transfers title to a vessel or enters into a charter or lease of the vessel, and thereby relinquishes his exclusive control over the use and operation of the vessel, ceases to have a qualifying interest in the vessel. Slip. "Slip" means a vessel's berth between two piers or floats. Small boat harbor. "Small boat harbor" means all navigable waters and all facilities of a port or maritime nature either publicly or privately owned that are primarily used by or for the service of vessels that are within the confines of the breakwaters. SM1C. "SMIC" means the Seward Marine Industrial Center. Trailer. "Trailer" means any movable cradle, structure, or device used for moving boats into or out of the water or used for the storage of boats. Transfer of cargo. "Transfer of cargo" means all types of loading, unloading, transfer, and containerization of any kind of cargo including, but not limited to, fish, shellfish, and other fish products. Vessel. "Vessel" means every description of watercraft including any ship, boat, skiff, barge, or craft of any kind and description, pleasure and commercial, other than seaplanes, used or designed to he used as a means of transportation on or through the water. (Ord. 95-11) Article 2. Administration FORMAT: New Text is underlined bold; {Deleted Text is bracketed strikethrough}; Notes indented Blue 7.10.210. Harbormaster. (a) Appointment. The city manager shall appoint a harbormaster. (b) Duties. The harbormaster shall, under the supervision of the city manager: (1) Administer the harbor with the powers provided by this title; (2) Enforce this title, issue and enforce regulations for the operation and use of the harbor that are not inconsistent with this title, and enforce the terms and conditions of the harbor tariff; (3) Promptly report to the appropriate enforcement entity the violation of any law pertaining in any way to navigable waters or port/harbor facilities including, but not limited to, laws for the protection of navigation and the preservation of navigable waters; (4) Promptly report to the appropriate enforcement entity the violation of any law pertaining to the disposal of hazardous or waste materials and promptly furnish information as necessary to assure that such improper disposal ceases and any nuisance is abated; (5) Collect harbor fees and charges and maintain and operate an accounting system to collect harbor fees and charges that meets with the approval of the finance director and that will satisfy all controls as may be deemed necessary by the city's annual audit; (6) Record in a proper register the name, length, draft, beam, type, and identification number, location of each vessel moored in the harbor, as well as the name and address of each vessel's registered owners; and (7) Maintain at the harbormaster's office a map or chart of the harbor showing the position of each approved mooring. (Ord. 95 -11) 7.10.215. Limitation of liability. (a) The authority granted to the harbormaster pursuant to this title shall not create any obligation or duty requiring the harbormaster to take action to protect or preserve any vessel or property located within, or utilizing, the harbor. (b) The city does not accept control of vessels or other property moored or stored in the harbor. When the city assigns moorage space to a vessel or assigns storage space to a vessel or other property the city is not accepting possession or control of the vessel or other property; the relationship between the parties is simply that of a landlord and tenant. Unless the vessel or other property is formally impounded by the city, the vessel or other property shall at all times remain in the exclusive possession and control of the owner of said property and the city is not acting, and shall not be held liable in any manner, as a warehouseman or a bailee. (c) City shall not be liable for any loss or damage resulting from use of the harbor or any harbor facility from any cause whatsoever, except and to the extent solely caused by the city's own negligence or intentional misconduct. City disclaims any and all other liability, whether for negligence or other tort, in contract or otherwise and specifically disclaims any warranty of whatsoever kind or nature including, but not limited to, any warranty of workmanlike service or • performance. The liability of city for damages caused solely by its own negligence or intentional misconduct shall be limited to the reasonable cost of repairing the vessel or other property that was moored or stored in, or making use of, the harbor or harbor facilities. The owner of the vessel or other property assumes all responsibility for any and all other claims or damages otherwise resulting including, but not limited to, claims by owner or third - parties for property damage, personal injury or death, pollution or discharge of a polluting or hazardous substance (together with cleanup, removal, and remediation of same), as well as any direct, indirect, FORMAT: New Text is underlined hold; [Deleted-Text is b1aeketed-stri uglr}; Ncics iudcnted Blue special, consequential, or commercial damages, claims for loss of profits or earnings, or other claims or damages of whatever kind or nature. (d) Each owner of a vessel or other property moored or storcd in, or making use of; the harbor or harbor facilities releases and agrees to defend, hold harmless, and indemnify the city and its officers, employees, and agents from and against any and all losses, claims, demands, actions, damages, liabilities, or expenses of every kind, character, and nature whatsoever (including, but not limited to, personal injuries, death, environmental contamination, property damage, or employee liability) arising out of; resulting from, or in any way related to use of the harbor by the owner or owner's agent, employees, invitees, guests, or passengers, except where liability for same is caused solely by the city's own negligence or intentional misconduct. Defense shall include payment of actual attorney's fees and costs. The owner waives any right of subrogation against the city which might otherwise arise upon payment of a loss by owner's insurers. (Ord. 95 -11) Article 3. Moorage 7.10.310. Registration required. The owner of a vessel using the harbor is required to register with the harboiuraster, by completing and providing all information requested on a registration form approved by the harbormaster, within two hours after the vessel first enters the harbor; provided, however, that vessels arriving after 5 p.m. shall have until 10 a.m. of the following day to register. The owner is responsible for informing the harbormaster of any changes in the registration information provided by the owner. (Ord. 95 -11) 7.10.315. Transient moorage. (a) Availability. Transient moorage space is available within the harbor at locations designated or assigned by the harbormaster, which may include temporary use of reserved moorage space. A written and signed application for moorage on a form approved by the harbormaster shall be provided to the harbormaster within the time allowed for registration. The applicant shall promptly notify the harbormaster of any changes in the information set forth on the moorage application. Prepayment of fees for transient moorage is required. Approval of such application by the harbormaster confers no rights in the land or water constituting the space. (b) Assignment periods. The daily assignment period is 8 a.m. on the first calendar day to 8 a.m. the next calendar day. The daily moorage fee as set forth in the harbor tariff will be levied on all vessels that are registered on the harbor's daily inventory that do not have a reserved moorage space assigned, unless longer term moorage is paid in advance. Discounts for prepayment of transient moorage fees are available as set forth in the harbor tariff for quarterly, semi - annual, and annual terms. Quarterly, semi - annual, and annual term transient moorage rates will be calculated from the closest of either (1) the first day of the current month, or (2) the first day of the following month (with daily fees assessed for all days in the current month). No credits will be allowed for back dating the application for moorage to the first day of the current month. (c) No preferential right. A user receives the privilege of occupying designated or assigned transient moorage on an as available basis, with consideration given to which vessel is most FORMAT: New Text is underlined bold; [Deleted-Text- -. h}; Notes indented Blue suitable for a particular location. Users have no preferential right to moor in any particular location nor the right to return to the same space if another vessel is occupying that space. (d) Rafting. Rafting of vessels in transient moorage space shall be permitted at locations designated by the harbormaster. Vessels moored in such locations are subject to yet another vessel tethering aside and are subject to being crossed by persons seeking access to other rafted vessels. Each vessel must have at least one line to the float, alternating ends. (e) Duration. A user's right to transient moorage space, once assigned, continues until the user removes the vessel from the transient moorage space, or until the user's death, or until the user's voluntary or involuntary relinquishment of the right to use transient moorage space. The right to use transient moorage may not be assigned or transferred by the user and does not transfer with the sale or other disposition of the vessel. (f) Voluntary relinquishment. A user may voluntarily relinquish transient moorage space at any time by notifying the harbormaster in writing. (g) Involuntary relinquishment. The right to use transient moorage space shall be involuntarily relinquished if: (1) The user supplies misleading or false information in the moorage application; (2) The user fails to pay all fees required by this title or the harbor tariff without a prior written agreement to pay such fees on other terms acceptable to the harbormaster; (3) The user fails to maintain a qualifying interest in the vessel; (4) The user fails, upon request of the harbormaster, to provide proof of a qualifying interest in the vessel; (5) The user fails to maintain on the vessel the equipment required by this title; (6) The vessel becomes a derelict or a nuisance; or (7) The user fails to observe any section of this title. (Ord. 95-11) 7.10.320. Reserved moorage. (a) Availability. Reserved moorage space is available within the harbor at locations designated or assigned by the harbormaster. (b) Application. Reserved moorage space shall be assigned on a first -come, first - served basis to those who have provided to the harbormaster a written and signed application as provided by the harbormaster. The applicant shall promptly notify the harbormaster of any changes in the information set forth on the application. (c) Assignment of reserved moorage. Reserved moorage space shall be assigned by the harbormaster to assure the maximum use of space available. The harbormaster will establish minimum and maximum vessel sizes for each space or class of spaces available. (d) Wait list. if more applications are received than there are spaces available, the harbormaster shall establish and maintain a reserved moorage wait list. A non - refundable annual fee shall be required by October 31 of each year to place and maintain an application on the list. Applications will be placed on the list in the order in which they are received. The applicant shall promptly notify the harbormaster of any changes in the information set forth on the application. Wait list priority may not be transferred except, upon applicant's death, to applicant's spouse or child. (e) Retention of wait list priority. If all applicant chooses not to accept a reserved moorage space when offered, or does not respond to a notice of space availability, the applicant forfeits the applicant's priority on the wait list and the applicant's name will he placed at the bottom of the wait list. The applicant's name will be retained in the new position for the remainder of time FORMAT: New Text is underlined boldti {Deleted e—xt is hraeketed strikeTreugb} Notes indented Rtue covered by the applicant's annual fee payment. Continued placement in the new position will be subject to payment of the required annual fee. If an applicant refuses to accept a reserved moorage space when offered on two separate occasions, or fails to respond on two separate occasions, it shall be presumed that the applicant has voluntarily withdrawn his application and the applicant's name will be removed from the wait list and the applicant's annual fee payment forfeited. • : _ - - - . .:: ' . the -wait- list - no-person-euf-ently holding -three or more reserved moorag- :: - • ..: • • .. additional reserved moorage space notwithstanding the number o-f ve.. - (Rationale: Disincentive to businesses paving the port fee in support of bond obligations, limiting growth of portfees could result in needing a rate increase for all users, substituting another n for th changes the likelihood but doesn't eliminate the problem.) ff-g 4 f. Notice of space availability. When space becomes available, the harbormaster shall notify the first applicant on the wait list that has a qualified interest in a vessel of the size for which space is available. Notice shall be by certified mail, return receipt requested. An applicant shall have ten days from the date the return receipt is signed to respond. If the notice is returned by the post office or the applicant fails to respond, the harbormaster will notify the next eligible applicant on the wait list and so on until the space is assigned. f(h)} g, Preference. Approval of an application for reserved moorage space and assignment of reserved moorage space by the harbormaster confers only the privilege of occupying the assigned moorage space on a preferential basis and does not convey any rights in the land or water constituting the space. f(i)} h. Berth to be vacant for five days. Prior to departing the harbor, owners shall report to the harbormaster if a reserved moorage space is to be unoccupied for more than five days. The harbormaster shall have full discretionary authority to allow other vessels to occupy an empty reserved moorage space any time the assigned vessel is absent for more than five days without compensation to the holder. KO} i. Duration. A holder's rights to reserved moorage space, once assigned, continues until the holder ceases having a qualifying interest in [the] a vessel suitable for the assigned space, until the holder's death, or until the holder's voluntarily or involuntarily relinquishment of the space. A holder's right does not transfer with the sale or other disposition of the vessel unless approved by the City Council by Ordinance. (Rationale: Clarifies in two ways the stated intent at 7.10.215 that the "City assigns space.... and that the relationship... is simply that of a landlord and tenant" by 1): allowing the tenant use of the assigned space for a qualifring vessel, so that the slip holder is the tenant and not the vessel and eliminating the re- starting of'the clock and multiple charges associated with a slip holder changing boats, and 2): allows transfer of a slip tenancy upon sale of a vessel, but only with City Council approval alter a public hearing, similar to the process in some cases for re- assigning land -based leases. The Ordinance would have to f ind that is in the public interest to transfer the slip, and each transfer would be heard individuallvforthat determination. (1) Loss of qualifying interest. A holder must promptly notify the harbormaster if the holder ceases to have a qualifying interest in the vessel assigned to reserved moorage space. The holder may retain the reserved moorage space if the holder obtains a qualifying interest in another vessel of the appropriate size within three months and registers the new vessel with the FORMAT: New Text is underlined bold; [Deleted Text is bracketed trikcthrough ]; Notes indented Blue !ce harbormaster as required by this title. The harbormaster may, for cause, grant an extension not to exceed an additional three months if the vessel was lost, destroyed, or stolen. Failure to obtain a qualified interest in a replacement vessel of appropriate size for the assigned slip will result in forfeiture of assignment to reserved moorage and will cause the replacement vessel to be classed as transient. (2) Death. In the case of the death o f the holder the space may be transferred only to the holder's spouse or child. To be an effective transfer the spouse or child must have a qualifying interest in the vessel assigned to the reserved moorage space and must make a request for transfer, in writing, to the harbormaster with appropriate documentation no later than the date the next annual moorage fee is due. (3) Voluntary relinquishment. A holder may relinquish reserved moorage at any time by notifying the harbormaster in writing. ['1. Involun . • . ... - • - . , . - ' ' aht-to an a- -; all be involuntarily relinquished and the right-to-use - - - terminated if: ] (4) Involuntary relinquishment. A holder's right to an assigned space shall be involuntarily relinquished and the right to use the assigned space terminated if: (Re- formatted to conform i-t'ith remainder of this section.) a. The holder supplies misleading or false information in the moorage application; b. The holder fails to pay all fees as provided by this title or the harbor tariff without a prior written agreement to pay such fees on other terms acceptable to the harbormaster; c. The holder fails to maintain a qualifying interest in the assigned vessel or substitute qualified vessel within the period allowed; d. The holder fails to use the space for the assigned vessel at least two months each calendar year; e. The holder fails, upon request of the harbormaster, to provide proof of a qualifying interest in the vessel assigned to the space; f The holder fails to maintain on the vessel the equipment required by this title; g. The vessel to which the space is assigned becomes a derelict or a nuisance; or h. The holder fails to observe any section of this title. (Ord. 95 -11) 7.10.325. Moorage conditions and restrictions applicable to transient and reserved moorage. (a) Qualifying interest required. Moorage space may only be assigned to an applicant with a qualified interest in the vessel to which space is to be assigned. (b) No unpaid charges. Moorage space may only be assigned to an applicant who has no delinquent harbor fees or charges. (c) One space. No vessel may be assigned to more than one moorage space. (d) Use by assigned vessel only. A vessel assigned a moorage space may only use that space. Vessels that moor or anchor outside their regular moorage space, and vessels which have no regular assignments which moor or anchor without making application to and securing the permission to use such space as required by this title, do so at their own risk and shall be held responsible for all loss or damage of any kind resulting from such use. (Ord. 95- I I) FORMAT: New Text is underlined bold; ;�- [ Text ie hrncketcd stril<otbro-rgti}; Notes laid I3lue 7.10.330. Refusal of moorage. The harbormaster may refuse moorage or use of any harbor facility to any vessel or applicant which or who the harbormaster has probable cause to believe has not complied, or is not in compliance, with this title or the harbor tariff or whenever such moorage or use of the harbor facilities would not be in the best interests of the city. A determination that such moorage or use would not be in the best interests of the City must be accompanied by findings of fact based on substantial evidence, and may be appealed to the City Council. (Ord. 95-11) (Rationale: The decision to refuse use or moorage should only be used with verifiable and defensible findings of fact, and the party ref irsed should have the same rights of appeal of that decision as of other decisions in this and other Titles of the Code. Alternately, the process described at 7.10.360, Determination of involuntary Relinquishment" could be inserted here.) 7.10.335. Required equipment. (a) All vessels moored in the harbor shall carry the equipment required by any applicable law or regulation, and shall be numbered or designated in accordance with any applicable law or regulation. (h) All vessels moored or anchored in the harbor shall be fitted with moorings or anchors satisfactory to the harbormaster, and shall be maintained at all times in such condition that, in the opinion of the harbormaster, will not endanger any person or vessel in the harbor or any harbor facility. (Ord. 95 -11) 7.10.340. Utilities. Electric and water utility service may be provided to vessels moored in the harbor in such locations and according to such specifications as the harbormaster may specify by regulation. The charge for electrical service furnished within the small boat harbor shall be established by resolution of the city council. Wessels- moor* at slips having clec :: • - - .11- connect to the- - . . . - -. A meter deposit shall be collected fi any person who connects to the electrical power system. (Ord. 95 -11) (Rationale: Eliminates the requirement that if a slip has electricity available that it must be used; some boats simply do not need or want shore power.) 7.10.345. Insurance. All owners shall provide the city proof of liability insurance covering the vessel and owner's employees, invitees, guests, or passengers. The amount of liability insurance required shall be specified on the moorage agreement covering that vessel. If the vessel carries passengers for hire, owners shall have the city named as an additional insured with waiver of subrogation on any policy of liability insurance. (Ord. 95-11) 7.10.350. Authority of harbormaster to board and move vessel. FORMAT: New Text is underlined bold; [Deleted Text is bracket - . - igh]; Notes indented Blue. • (a) Emergency. The harbormaster may., in the event of emergency, board, re- secure, de- water, or move any vessel within the harbor, or take any other reasonable action to resolve the emergency with respect to such vessels to prevent loss of life or property. (b) Noncompliance with this title. (1) Subject to subsection (2) of this section, when the harbormaster has reasonable cause to believe that a violation of this title exists, or when necessary to perform a duty under this title, the harbormaster may, at any reasonable time and upon presentation of proper identification, board and enter a vessel within the harbor. If a vessel is improperly anchored or moored the harbormaster may order the vessel's position changed. If the harbormaster's order is not complied with, or the vessel is unattended, the harbormaster may move the vessel and charges shall be assessed in the same manner as for ordinary services. If a vessel is in violation of any section of this title the harbormaster may declare the user or holder of the moorage space to have involuntarily relinquished the space. (2) Where the constitution of the United States or of the State of Alaska so requires, the harbormaster shall obtain an administrative search warrant authorizing an inspection and exhibit the warrant to the person in charge of the vessel before conducting the inspection. (c) Vessel in transient moorage space. The harbormaster shall have authority to move a vessel in transient moorage space to another location to better maximize the use of available space. (d) Notice to move. Any vessel, upon notice to move, which refuses or fails to move may be shifted by tug or otherwise by the city, and charges shall be assessed in the same manner as for ordinary services. (Ord. 95 -11) 7.10.355. Seaplanes. (a) - - - her 30, seaplanes shall not-be-granted -slip privileges -in the . : • - : .t-the slaplan° fie fit ric�zrcriind- shatktc,c_] d ••ri4�v -rt hm- tiny -s -.m-r- bou nzsrd: iv�ax Oeteber I through . . ; .nes-nay -he granted slip privileges-,i„ the harbor only -when} doing sow ll- of preclude a vessel desiring - moorage from tying to-the-fleet-system }Regular use of the harbor by seaplanes is available only on a transient basis and by prior agreement with the harbormaster. Nothing in this title shall be construed to prohibit emergency use of the harbor by seaplanes. (b) When a seaplane is provided a slip within the confine of the harbor, it shall be under the jurisdiction of the harbormaster and shall abide by this title and all regulations applicable to vessels. (c) The fees for providing slips for seaplanes shall be set by resolution of time city council and may be found in the harbor tariff (Ord. 95 -11) ('Rationale: Allows emergency use, and short term use with prior arrangement; disallows permanent use. Retains Council setting rate, since typically occupy larger lbotprint than normal -vessels.) 7.10.360. Determination of involuntary relinquishment. (a) Right to notice. The city shall give at least 20 days written notice of its intent to declare the involuntary relinquishment of mooring space. (b) Content of notice. A notice of involuntary relinquishment shall be prepared by the harbormaster and shall contain: FORMAT: New Text is underlined bold [Dew }pext i raeketeelstr Notes indented Blue (I) The name and address of the user or holder of the moorage space last appearing in the records of the harbormaster: (2) A statement that the city intends to declare the moorage space involuntarily relinquished if corrective action is not taken within 20 days from the date the notice is mailed /posted; (3) The reason for the anticipated action; (4) The owner's right to a hearing and the manner in which a hearing can be requested; and (5) The name, address, and telephone number of a person at the city to contact in case of questions. (c) Distribution of notice. The notice of involuntary relinquishment shall he: (1) Mailed by certified mail, return receipt requested, to the user or holder of the moorage space at the user's or holder's last known address. The notice is effective when mailed. If the harbormaster cannot determine the address of the holder of the moorage space, notice shall also be published at least once in a newspaper of general circulation in the city. (2) Posted at or near the moorage space in question, in the harbormaster's office, at city hall, and in a United States Post Office in the city. (d) Demand for hearing. The user or holder of moorage space which the city intends to declare involuntarily relinquished may obtain an administrative hearing to determine whether there is probable cause for involuntary relinquishment by filing a written demand with the city clerk within 20 days from the date of the notice. (e) Hearing procedure. The hearing shall be conducted within 48 hours of receipt of a timely written demand from the person seeking the hearing, unless such person waives the right to a speedy hearing. Saturdays, Sundays, and city holidays are to be excluded from the calculation of the 48 -hour period. The hearing officer shall be designated by the city manager and shall be someone other than the harbormaster. The sole issue before the hearing officer shall be whether there is probable cause to declare that the moorage space was involuntarily relinquished. "Probable cause to declare the moorage space involuntarily relinquished" shall mean such a state of facts as would lead a reasonable person exercising ordinary prudence to believe there are grounds to find that the moorage space has been involuntarily relinquished. The hearing officer shall conduct the hearing in an informal manner and shall not be bound by technical rules of evidence. The harbormaster shall have the burden of establishing by a preponderance of the evidence that there is probable cause to declare that the moorage space has been involuntarily relinquished. Failure of the user or holder of the moorage space to request or attend a scheduled hearing shall be deemed a waiver of the right to such a hearing. (t) Decision. Within five working days alter the conclusion of the hearing, the hearing officer shall prepare a written decision. The hearing officer shall only determine whether probable cause to declare the moorage space involuntarily relinquished exists. A copy of the decision shall be provided to the user or holder of the moorage space. The decision of the hearing officer is final. (g) Action after decision. In the event the hearing officer determines there is probable cause to declare that the right to the moorage space has been involuntarily relinquished, the harbormaster may eject, remove, or require the removal of the vessel from the moorage space and assess charges for said removal in the same manner as ordinary services, and reassign the moorage space without compensation to the prior moorage holder. Moorage fees cease accruing on the date the vessel actually ceases to occupy a moorage space in the harbor. (Ord. 95 -1 1) Article 4. Wharfage. Storage and Other Activity FORMAT: New Text is underlined bold; [Deleted Text is bracketed strikethrough]; Notes indented Blue 7.10.410. Wharfage. (a) Application. No cargo may be transferred within the harbor without prior written application to and approval by the harbormaster, on such form as the harbormaster shall specify. Transfers of cargo that occur on a regular basis may be approved in advance. (b) Wharfage assignment. (I) All vessels are prohibited from mooring at any wharf at which they have no regular assignment or for which they have failed first to make a mooring application with the harbormaster. Vessels that moor outside their regular assignments, and vessels that have no regular assignments and which moor without making application to and securing the permission from the harbormaster, shall do so at their own risk and shall be held responsible for all loss or damage of whatsoever nature resulting from such use. (2) Assignment to the wharf at locations where transfer of cargo is approved shall be made by the harbormaster upon application. Charges for preferential assignment shall commence on the date specified in the assignment. Preferential assignments may be revoked by (a) the harbormaster upon 30 days prior written notice to the assignee, or (b) the assignee upon 30 days prior written notice to the harbormaster. (3) Subject to the rates, charges, rules, and regulations of this chapter, the harbor tariff; and any restrictions, conditions, limitations and modifications set forth in the assignment itself, wharf area assignments shall include only the license or right: a. To moor vessels owned, operated, or represented by the assignee at the area assigned; b. To assemble, distribute, load, and unload merchandise and the cargoes of vessels over, through, or upon the assigned wharf area; and c. To perform such other related activities as may be necessary. (4) When the assigned wharf area, or any part thereof, is not required for the use of the assignee or is unoccupied, the harbormaster may, at his discretion, assign such facility, or any part thereof; for temporary use by another person. (c) Locations for cargo transfer. Transfer of cargo may occur at the following locations: (1) City dock within the small boat harbor; (2) North Dock of SM1C; (3) [Inlet Salmon] City Dock at the SMIC; (Rationale: Renames dock to reflect changing tenancy over time w/o baring to amend Code at each change.) (4) Syncroliti Dock at the SMIC. (d) Prepayment. The harbormaster may require prepayment of the estimated fees due under this title or the harbor tariff prior to any cargo transfer. (e) Duration. A vessel may moor for transfer of cargo for up to two hours without paying for transient moorage but must notify the harbormaster at least two hours in advance of actually mooring. Failure to notify the harbormaster could result in assessment of a day's transient moorage charge. (t) Refusal of cargo. The harbormaster may refuse to permit the transfer of any cargo whose volume, weight, hazardous nature, or other characteristics would present a risk to the safety of persons or property, private or public, within the harbor or whose value is less than the fees due under this title. (g) Information and manifests. FORMAT: New Text is underlined bold; {De- let-edText -is-hr ket -ed- strilcethrouglr}; Votes indented Blue (1) Information. To enable the harbormaster to keep an accurate record of the number, size, and kind of vessels using the harbor, the amount, kind, and value of waterborne freight handlers, and the number of passengers carried, the masters and pursers of all vessel using the harbor are required to furnish the harbormaster with such information if so requested and to permit the harbonnaster to examine their papers; (2) Manifest. A complete copy of the manifest showing all the cargo unloaded or discharged at the harbor will be furnished to the harbormaster. Inbound manifests will be furnished prior to or concurrent with the vessel's arrival. Outbound manifests will be furnished prior to or concurrent with the vessel's departure. In lieu of manifests, freight bills containing all information as required in this section may be accepted. (h) Persons responsible for fees. Vessels, their owners, and shippers or consignees of cargo transferred within the harbor shall be jointly and severally liable for all fees due for activities described in this chapter notwithstanding any contrary provisions contained in any bills of lading, charter party agreements, contracts, or other agreements. (i) Cargo on which fees have become delinquent. Cargo on which fees have become delinquent may, alter ten days written notice to the shipper, carrier, or consignee of such cargo, be sold at public or private auction without advertising. (j) Retention of cargo. Any cargo upon which fees provided by this chapter have become delinquent may be confined to the harbor by the harbormaster until the fees have been paid. (k) and indemnity. All risk of loss from theft, fire, or other casualty to cargo shall be assumed by the parties to the shipping agreement and not the city. The person making application for the berth shall defend, indemnify, and hold the city harmless fi all claims arising from the cargo transfer within the harbor. (Ord. 95 -11) 7.10.415. Storage. (a) Generally. Storage space for vessels, cargo, and gear is available. The terms, conditions, and fees for the use of storage space for vessels, cargo, and gear is governed by the harbor tariff. (b) Upland storage. (1) Upland storage on any harbor property owned by the city shall be limited to the storage of vessels, vessels on trailers, or trailers. (2) Major construction work on vessels while in storage is prohibited. Disagreements as to what constitutes major construction shall be resolved by the harbormaster. (Ord. 95 -11) 7.10.420. Fish processing. Fish or shellfish may be cleaned or processed within the harbor only in areas and with equipment approved by the harbormaster. (Ord. 95 -11) 7.10.425. {Grid and b} Boat lifts. The city has available {grid-nnd] -boat lifts. The terms, conditions, and fees for use of ft he--grid and boat lifts are governed by the terms of the harbor tariff (Ord. 95 -11) (Rationale: There is no grid) FORMAT: New Text is underlined bold; [Deleted Text is bracketed strikethrough }; Floes indented Blue Article 5. Prohibited Practices 7.10.510. Speeding. No person shall operate or cause to be operated a vessel within the small boat harbor in a manner which causes an excessive wake, wash, or wave action which will damage, endanger, or cause undue distress to any other vessel or occupant thereof. (Ord. 95 -11) 7.10.511. Operating under the influence.* *See § l 1.50.01 011 as to liability for costs associated with city response to emergency caused by a person operating a vessel under the influence of alcohol or drugs. No person may operate a vessel within the harbor while under the influence of alcohol or other drugs to the extent that it would be unlawfiil to operate a motor vehicle under state law in such condition. (Ord. 95.11) 7.10.512. Reckless operation. No person shall operate a vessel in any manner which unreasonably interferes with the free and proper use of the harbor or unreasonably endangers the users of the waters of the harbor. (Ord. 95 -11) 7.10.513. Hazard to navigation. No person shall create or fail to remove after request from the harbormaster, a hazard to navigation within the waters of the harbor. (Ord. 95 -11) 7.10.514. Failure to register. No person shall fail to register a vessel operated by that person with the harbormaster as required by this title. (Ord. 95 -11) 7.10.515. Improper mooring and anchoring. (a) Except as provided in subsection (c) of this section, no person may moor, anchor, or beach a vessel in the harbor except in a location designated by the harbormaster for that purpose, after receiving prior permission from the harbormaster, and after complying with all applicable provisions of this title. (b) Except as provided in subsection (c) of this section, no person may moor, anchor, or beach a vessel for fishing or other purpose within the harbor or any other body of water over which the city has jurisdiction in such a position as to obstruct a passageway ordinarily used by other vessels. FORMAT: New Text is underlined bold; {-Deleted-Text is- bracAket�d- stiik€ h }; Nu[es indented Blue (c) A person may moor, anchor, or beach a vessel in the harbor as required in an emergency, but only for so long as required by the emergency. A person who moors, anchors, or beaches a vessel in the harbor as permitted by this subsection shall promptly notify the harbormaster and comply with the instructions of the harbormaster for the securing and placement of the vessel. Improperly stored, beached, or disposed vessels may be removed by the city and the costs of such removal may be recovered by the city from the person violating this section. (Ord. 95-11) 7.10.516. Inadequate equipment. No person shall operate or moor a vessel within the harbor that does not have the equipment required by this title. (Ord. 95 -11) 7.10.517. Improper use of facilities. No person may use the harbor for purposes or in a manner not authorized by this title. (Ord. 95 -11) 7.10.518. Improper disposal. No person shall dispose of trash, garbage, timber, refuse, human or animal waste, flammable liquid, alcohol, bilge water, dead animals, fuel, oil, fuel or oil derivatives, wastes, or by- products, or other petroleum products, or any similar substance into the water of the harbor or on the harbor grounds (including, but not limited to, parking areas) except in receptacles or locations designated by the harbormaster. Improperly disposed materials may be removed by the city, with or without notice, and the costs of such removal may be recovered by the city from the person violating this section. (Ord. 95 -11) 7.10.519. Improper care and control of animals. No person shall have or bring a dog or other animal within the harbor unless the dog or animal is on a leash or confined to a vessel. The person bringing the dog or other animal to the harbor is responsible for properly disposing of the animal's defecation. (Ord. 95 -11) 7.10.520. Water sports. No person shall engage in swimming, diving, water skiing, or other sports where the body of the person comes into contact with the water within the harbor except after notice to and with permission of the harbormaster. Diving for the purpose of vessel repair and inspection or for law enforcement purposes is not prohibited by this section. (Ord. 95 -11) 7.10.521. Failure to make accident report. No person shall fail to make an accident report as required by this title. (Ord. 95 -11) 7.10.522. Dinghies, rowboats and skiffs. FORMAT: New Text is underlined hold, [Deleted Text i strikethroi-tglr}; Notes indental Blue. No dinghies, rowboats, skiffs, or other auxiliary vessels may be (a) stored on a dock except in location designed for that purpose by the harbormaster, (b) tied along side ofvessels in transient moorage space, or (c) kept in the water except at the end of the slip or at other locations designated by the harbormaster. (Ord. 95-11) 7.10.523. Noise. (a) No person shall make or cause to be made any unnecessary noise in the harbor. (b) No person shall, in an unreasonably loud manner, play any musical instrument or operate any radio, stereo, T.V. or other similar equipment in the harbor between 11:00 p.m. and 7:00 a.m. The harbormaster has sole discretion in determining whether an instrument or equipment has been played in an unreasonably loud manner. (c) If any group or organization wishes to hold any function that may continue after 11:00 p.m., request for approval must be made, in writing, to the harbormaster who may extend the time. (Ord. 95 -1 I) 7.10.524. Derelict, nuisance, unseaworthy, wrecked and sunken vessels. (a) No person may bring into or keep within the harbor a vessel that is derelict or a nuisance, or in the opinion of the harbormaster, is so unseaworthy or in such a deteriorated condition that it may sink, become a hazard to navigation, or damage docks, floats, or other vessels, except as required in an emergency, but only for so long as required by the emergency. (h) In the event a vessel is wrecked or sunk within the harbor, it shall be the owner's responsibility to immediately notify the harbormaster, mark the vessel's position and provide for the raising and disposition of such vessel as soon as reasonably possible, and the owner shall assume all liability for damage to persons or property located in the harbor which is caused by the vessel. (Ord. 95 -11) 7.10.525. Unauthorized utility connections; interference with harbor property. (a) No person may tap, connect, disconnect, or interfere with any water, telephone, or electric utility equipment maintained or operated by the city in the harbor without first having obtained the permission of the harbormaster. (b) No person shall damage, interfere, or tamper with any dock or other facility operated by the city in the harbor. (c) No person may damage, interfere, or tamper with any dock, buoy, life preserver, sign, notice, navigational marking, or other similar property operated by the city or any other governmental agency in the harbor. (Ord. 95-11) 7.10.526. Unauthorized boarding of vessels. No person may board a vessel in the harbor without the consent of the owner provided, however, that any person placing a vessel in transient moorage where the vessel is or may be rafted to other vessels implicitly consents that people may cross the vessel if necessary to access other railed vessels. (Ord. 95 -1 1) FORMAT: New Text is underlined bold; {D- elete€ Text is- brackeycd strikethrough); Notes indented f-3Ine -, 7.10.527. Improper use of fire- fighting equipment. No person shall use fire hoses or other fire- fighting equipment except for fighting fires. (Ord. 95 -11) 7.10.528. Welding equipment, torches, open flame. No person shall use welding equipment, a burning torch, or any other open flame apparatus on any dock or on any vessel moored in the harbor without the prior written permission of the harbormaster. The person using such equipment shall exercise such care as is necessary to provide for the safety of other vessels and harbor facilities, have readily available an approved lire extinguisher of sufficient size, have readily available as a standby a water hose attached to an outlet where available, and maintain a fire watch. (Ord. 95 -11) 7.10.529. Loading or unloading explosives. No person may possess, transport, load, unload, or store explosives within the small boat harbor. Loading and unloading explosives at harbor locations outside the small boat harbor, requires a permit from the fire chief and approval of the harbormaster. (Ord. 95-11) 7.10.530. Solicitation, advertising and signs. Solicitation of patronage in the harbor is prohibited. No person shall row, propel, navigate, or maintain any vessel or float in the harbor for the purpose of advertising. No signs or other printed matter shall be placed on any part of the harbor without the prior approval of the harbormaster. (Ord. 95 -11) 7.10.531. Fenders on fingers. No person may install fender material on fingers unless the fender material is approved by the harbormaster. (Ord. 95 -11) 7.10.532. Use of docks and fingers.* *The main and marginal float systems within the harbor are by state statute extensions of public streets and side walks and are subject to state statutes and city ordinances governing their use. No person may store on a dock any raft, net, tackle, cargo, equipment, tools, materials, mooring lines, hoses, electrical cables, other service lines, or other obstruction except in a location designated for that purpose by the harbormaster. Tools and other equipment may be temporarily placed on the dock for rigging and maintenance work so long as the tools or equipment do not obstruct the docks or access to the dock and the space is maintained in a neat, clean, and orderly Fashion. (Ord. 95 -11) FORMAT: New Text is underlined bold; {DeletedTexTis bracketed strikethrettgliJ; Noics indented Blue 7.10.533. Children. Children under ten years of age are prohibited on the docks except when in the immediate presence of the child's parent or guardian or other responsible adult. (Ord. 95 -11) 7.10.534. Bicycles, motorcycles, rollerblades, skateboards. The use of wheeled or motorized objects such as bicycles, motorcycles, rollerblades, skateboards, and four wheelers on the docks within the harbor is prohibited. (Ord. 95 -11) (Suggestions needed. The public is canrently using bicycles on the docks. and the harbor staff is using a four- iiheeler. Neither are allowed under this section o /'the Code.) 7.10.535. Parking of vehicles generally. The parking of vehicles outside designated parking areas in the harbor area is prohibited. (Ord. 95 -11) 7.10.536. Unauthorized collection of fees and use of waterfront. No person shall collect any toll, wharfage or dockage without being authorized to do so by the harbormaster. No person shall place property upon or remove property from any portion of the waterfront or docks without being authorized by the harbormaster. (Ord. 95 -11) 7.10.537. Movement of vessels. Cruising between rows of slips is prohibited; movement of vessels within the harbor and between rows of slips shall be for the purposes of mooring, anchoring, or entering or leaving a slip. (Ord. 95 -11) 7.10.538. License. No person shall operate a vessel unless that person is properly licensed as required by applicable state and federal laws and regulations. (Ord. 95 -11) 7.10.539. Outboard motors. No person shall operate any motor within the harbor without having such motor equipped with a muffler. (Ord. 95 -11) 7.10.540. Searchlights, crab lights. No person shall use searchlights indiscriminately or in such manner as to annoy or disturb other persons or vessels. No person shall leave on a crab light used to balance the load on a vessel's generator while the vessel is moored in the harbor. (Ord. 95 -11) FORMAT: New Text is underlined hold, fl3eleted -=Fext is - k ?.tcd ct - s - ]; Note ind Blue 7.10.541. Residential use. No portion of the harbor or cargo within the harbor may be used for residential purposes. No vessel within the harbor may be used for permanent living quarters while moored unless a permit is first obtained from the harbormaster and a fee as set by city resolution is paid. (Ord. 95 -11) (A slandardi_ed permit forrn should be created, and the Council should set a (nominal) fee.) 7.10.542. Failure to observe city health and conduct rules. No person in the harbor shall violate any provision of this code dealing with health, sanitation, the conduct of persons, or prohibiting acts contrary to public health, morals, safety, or public peace. (Ord. 95 -11) 7.10.543. Vessels extending beyond berth. No part of any vessel, including without limitation any davit, boom, boomkin, or bowsprit, may extend over the main walkway of a float, or extend more than four feet beyond the end of any finger. (Ord. 95 -11) 7.10.544. Obstruction of walkway, float, gangway prohibited. No person shall place or permit to remain any mooring lines, hose, electrical cable or other service lines across any walkway. A person in charge of a walkway, float, or gangway shall maintain the same in good condition so as to prevent injury to persons and shall keep such walkway, float, or gangway clear of any obstruction. (Ord. 95 -1 1) 7.10.545. Repairs and maintenance of vessels. No person may spray paint a vessel while moored or anchored in the harbor. No person may repair or maintain a vessel at its berth unless all the work is performed aboard the vessel and all the materials used in repairing or maintaining the vessel are collected for disposal or kept on board the vessel. Repair and maintenance work that cannot he done within the confines of the vessel shall be accomplished only in an area or manner [designated] approved for that purpose by the harbormaster. (Ord. 95 -11) (Rationale: Allows minimal work to the hull exterior of a vessel, but only if all nratericrls are captured and on prior approval oldie Harbormaster; onus is on the vessel owner to demonstrate plan for pollution prevention.) 7.10.546. Removal of vessel without payment of charges. No person shall remove from the harbor any vessel upon which charges of any kind are delinquent, without paying such delinquent charge. (Ord. 95 -11) 7.10.547. Cargo on the beach. FORMAT: New Text is underlined bold; [Deleted Text is braeketeu kethroughj; Notes indented Blue No person may load, unload, or store cargo on the beach within the harbor except in a location designated for that purpose by the harbormaster unless a permit has first been obtained from the harbormaster and a fee as set by the harbor tariff has been paid. Any permitted loading, unloading, or storage of cargo shall he for a period not exceeding 72 hours. There shall be no barge or vessel landing from the beach within the small boat harbor. (Ord. 95 -11) Article 6. Fees and Penalties 7.10.610. Fees. (a) Harbor facilities. After public hearing, the city council shall set by resolution, the rates for use of all harbor facilities, and such rates may be found in the harbor tariff Notice of the public hearing shall be published in a newspaper of general circulation and shall be posted in at least three public places within the city at least ten days prior to the hearing. (b) Ordinary services. Ordinary services performed by harbor personnel may be rendered by agreement with the harbormaster. The city council shall set by resolution the rates for services provided by the harbor personnel and such rates may be found in the harbor tariff. If no rate for a particular service has been set by the city council, the charge shall be set by the harbormaster and shall compensate the city for reasonable labor, time, and materials expended, plus overhead expenses. The harbormaster may require a deposit or payment in advance of furnishing any ordinary services, and all charges shall be payable at the time services are rendered. (c) Emergency services. Charges for emergency services shall be assessed in the same manner as for non - emergency services. All charges for services shall be payable at the time services are rendered. (Ord. 95-11; Ord. No. 2005 -05, § 1, 9 -26 -2005) 7.10.615. Fce collection. (a) Invoicing. Invoices for fees shall be due upon receipt. Invoices may be delivered personally or mailed on a monthly or other basis to the last address provided to the harbormaster. It is the harbor user's obligation to notify the harbormaster in writing of any changes in address. (b) Payment. Mooring fees shall be due and payable in advance. Payment shall be made at the harbor for—at-eity-hai . (Rationale: City hall is not staff�trl or equipped to review the materials and forms associated it itlr the collection o/ moorage fees; users expect to conduct one transaction at the harbor. (c) Refunds. Refunds are not automatically available to vessels departing the harbor; only vessels that no longer require transient or reserved moorage may receive a refund. If a vessel owner desires a refund of prepaid moorage, the vessel owner must make a request, in writing or in person, to the harbormaster. All refunds will be calculated from the date of notice_ {-as fo llew-s (1) Daily moorage f es. Refunds for prepaid daily moorage-w41-1-he-limited to the unused rneo} age- drys. (2) Ouartc - fe .s Refunds for prepaid quarterly moorage-v41-1-be - limited to the original payment made minus the -a ed-daily rate fo-Eactual moorage-days-used-.- (3) Semi annual nsoo -rage fes. If a request for a refund is made within , term, a refund for prepaid semi annual inoerage -w ! be-lim- ited -to- the- erighial -payme made FORMAT: New Text is underlined bold; - 14- 3eleted Text is brueketed striketlx -01}; Notes indented Blue • minus the lesser : • - ::. - • rate for actual moorage days used or the quarterly moorage rate- • - . • • f the semi an .. - , - . esscl owner will not be-eligible for a refund. (Ll+_ Annual mourn •-: - or a refund is made-within-the first-90 days-oft-he to m the refund for - : • :: • e- • • •• 'na .. • - • • . - •nus the • less • • - ... • - at- . .. • .: • _ . • cd or the qua te,�1y-mo oragc rate. If a • - . dth- :e - .. ; - - -- • be limited to- the - original payment made -minus the lesser of the appli• ::. • • al moorage days used or the semi a. nual- moorage ate. After the -first 180 days- ofsthe-term, a vessel owner will not be eligible for a refund.] (Rationale: Eliminates the coin oluteerl formulae for refu and eliminates the redundant t> 0) lees heretofore charged to slip holders changing vessels within their assigned berth at other than moorage renewal dates. Harbor still collects l0(1 °o 00 any vacancy with slip holder's rreW vessel, transient vessels or re- a•signing slip to new tenant) (d) Delinquent fees. Fees remaining unpaid after 30 days will be considered delinquent and subject to late fees as allowed by law and as set forth in the harbor tariff All delinquent moorage for vessels will accrue charges based on the daily fee as set by resolution of the city council. (e) Interest on delinquent fCes and fines. Delinquent fees and fines under this title shall accrue interest at the rate of one and one -half percent (1.5 %) per month, or the maximum rate allowable by law, whichever is less, from the date they were due until paid in full. (I) Collection action. The city manager is authorized to commence suit or exercise any other legal remedy to collect any delinquent fee or charge. In the event such suit is commenced, the person obligated to pay the fee shall, in addition to any other liability imposed by this title, be liable for the city's actual, reasonable attorney's fees and court costs associated with the collection. (g) Lien for unpaid fees. In addition to all other remedies available by law, the city shall have a lien for any fees and interest provided by this title and costs of collection, including attorney's fees, upon any vessel (including all equipment, tackle, and gear) and property giving rise to such fees. 'file lien may be enforced by any procedure otherwise provided by law and by the procedure set forth in this title. (Ord. 95 -11) 7.10.620. Penalties. Penalties for violation of this title may be set by resolution of the city council. (Ord. 95.11) Article 7. Impoundment and Disposition of Vessels and Abandoned Property 7.10.710. Lost and abandoned property. Personal property found in the harbor, whether on land, adrift, or sunken, which is not in the lawful possession or control o f some person shall be immediately delivered to the harbormaster, in whose custody the property shall remain until claimed by the proper owner or disposed of as abandoned property. (Ord. 95 -1 1) 7.10.715. Property which may be impounded. FORMAT: New Text is underlined bold; [Deletc,cl Text is bracketed str+kethroug-lq; Noes indcnled Blue The harbormaster is authorized to impound abandoned property at any time, and is authorized to impound a vessel under any of the following circumstances: (1) The vessel is within the harbor and is derelict or a nuisance as defined in this title; (2) The fees for which the city has a lien on the vessel are delinquent for a period of three months, or it appears to the harbormaster that the removal of the vessel from the harbor without payment of the delinquent amount is imminent; (3) The vessel is located in the harbor and is in violation of any section of this title or any regulation ofthe harbor or any provision ofthe harbor tariff; or (4) The owner is not aboard the vessel and the vessel is not properly identified by a name and /or number. (Ord. 95 -11) 7.10.720. Notice to owner. (a) Right to notice before impoundment. Except as provided in subsection (h) of this section, the city shall give at least 20 days written notice of its intent to impound abandoned property or a vessel. (b) No right to notice before impoundment. The city need not give written notice before impoundment, but shall give written notice of impoundment within 24 hours after an impoundment where the harbormaster determines that: (1) The abandoned property's or vessel's presence in the harbor presents an immediate danger to public health or safety; or (2) The removal of the abandoned property or vessel to be impounded from the harbor without payment of delinquent fees or other charges is imminent. (c) Contents. An impound notice shall be prepared by the harbormaster and shall contain: (1) The name and /or official number or state registration number ofthe vessel, where applicable; (2) The location of the abandoned property or vessel; (3) The name and address, if known, of the owner; (4) A statement that the city intends to impound, or has impounded, the abandoned property or vessel; (5) The reason for the anticipated or actual impoundment; (6) The intended disposition of the abandoned property or vessel if no action is taken within 20 days from the date of the notice; (7) The owner's right to a hearing and the manner in which to request such a hearing; (8) The name, address, and telephone number of a person at the city to contact; (9) The procedure for obtaining release of the abandoned property or vessel from impoundment or threat of impoundment; (I 0) A statement that the abandoned property or vessel is subject to storage charges once impounded; and (11) If impoundment has already occuiTal, a statement of the owner's right to obtain immediate release ofthe impounded property or vessel by posting a bond pending a hearing to determine whether probable cause of impoundment existed, said bond not to exceed the total of all delinquent charges and fees owed the city, including the cost for impoundment and storage. (d) Distribution. The impound notice shall be: (1) Mailed by certified mail, return receipt requested, to the last known owner of the abandoned property or vessel at the owner's last known address, to any person who is known by the FORMAT: New Text is underlined hold; {-Deleted Text is l- racketed- sal- ethrou0 ; Notes indented Jilue harbormaster to have a qualified interest in the abandoned property or vessel, to all known lienholders, and to any other person designated in the moorage agreement to receive notices regarding a vessel; provided, however, that notice need not be sent to any person whose interest in a vessel is not recorded with a state department or a federal agency and whose name and address does not appear on the moorage agreement for that vessel. If the harbormaster cannot determine the address of the owner of abandoned property or a vessel, notice shall be published at least once in a newspaper of general circulation in the city and, in the case of a vessel, shall be mailed to the U.S. Coast Guard documentation officer of the port of documentation, if such port can be reasonably ascertained. (2) Posted on the abandoned property or vessel, in the harbormaster's office, at city hall, and in a United States Post Office in the city. (Ord. 95 -11) 7.10.725. Hearing. (a) Demand for hearing. The owner or any other person in lawful possession of the abandoned property or vessel proposed for impoundment has the right to an administrative hearing to determine whether there is probable cause to impound the abandoned property or vessel. The owner or any other person in lawful possession of the abandoned property or vessel that has been impounded has the right to an administrative hearing to determine whether there was probable cause to impound the abandoned property or vessel provided that the owner or person was not afforded the opportunity for a hearing before impoundment occurred. Any such person desiring a hearing shall file a written demand with the city clerk within 20 days after mailing and posting of the impound notice. (b) hearing procedure. The hearing shall be conducted within 48 hours of receipt of a timely written demand from the person seeking the hearing, unless such person waives the right to a speedy hearing. Saturdays, Sundays, and city holidays are to be excluded from the calculation of the 48 hour period. The hearing officer shall be designated by the city manager and shall be someone other than the harbormaster. The sole issue before the hearing officer shall be whether probable cause to impound the abandoned property or vessel exists. "Probable cause to impound" shall mean such a state of facts as would lead a reasonable person exercising ordinary prudence to believe there are grounds for impounding the abandoned property or vessel. The hearing officer shall conduct the hearing in an informal manner and shall not be bound by technical rules of evidence. The person demanding the hearing has the burden of establishing by a preponderance of the evidence the right to possession of the abandoned property or vessel. The harbormaster has the burden of establishing by a preponderance of the evidence that probable cause to impound the abandoned property or vessel exists. Failure of the owner, or any person in lawful possession of the abandoned property or vessel to request or attend a scheduled hearing shall be deemed a waiver of the right to such a hearing. (Ord. 95 -11) 7.10.730. Decision. Within three working days after the conclusion of the hearing, the hearing officer shall prepare a written decision. The hearing officer shall only determine whether probable cause to impound exists. A copy of the decision shall be provided to the person demanding the hearing and the owner of the abandoned property or vessel if the owner is not the person requesting the hearing. The hearing officer's decision shall in no way affect any criminal proceedings in connection with FORMAT: New Text is underlined bold:, [Deleted Text is bracketed strikethroughl: Notes indented Blue the impoundment in question, and any criminal charges involved in such proceedings may only be challenged in the appropriate court. The decision of the hearing officer is final. (Ord. 95 -11) 7.10.735. Impoundment. In the event the hearing officer determines there is probable cause to impound the abandoned property or vessel and impoundment has not already occurred, the harbormaster may proceed inunediately with impoundment of the abandoned property or vessel. The harbormaster may impound the abandoned property or vessel by immobilizing it, removing it, or having it removed, and placing it in public or commercial storage with all expenses of haul out and storage and an impound fee to he borne by the owner of such abandoned property or vessel. In the event the hearing officer determines there is probable cause to impound the abandoned property or vessel and a bond has been posted by the owner, the bond shall be forfeited to the city and no further action to impound the abandoned property or the vessel shall be taken. (Ord. 95-11) 7.10.740. Release from impound. (a) Upon a hearing officer's decision reversing an impoundment, the abandoned property or vessel shall be released from impoundment without cost to the owner and any bond posted by the owner released to the owner. (b) In the absence of a hearing officer's decision reversing an impoundment, the owner, the representative of an owner, or any person in lawful possession of the abandoned property or vessel may apply to the harbormaster to release the abandoned property or vessel from impoundment at any time before its disposition under this chapter. An application for release from impoundment shall include the following: (1) Proof satisfactory to the harbormaster that the applicant is the owner of the abandoned property or vessel, or, if the applicant is not the owner, proof satisfactory to the harbormaster of the applicant's authority to represent the owner; (2) Either (a) payment of all delinquent moorage or other charges for the abandoned property or vessel, including interest and penalties, if any, all costs of towing, appraising, impounding, and storing the abandoned property or vessel, and all costs incurred for any pending sale of the abandoned property or vessel, or (b) the posting of a bond or other security pending resolution of an appeal to the superior court, said bond not to exceed the appraised value of the abandoned property or vessel, if known; (3) Proof of arrangements satisfactory to the harbormaster for either the removal of the abandoned property or vessel from the harbor, or the placement of the abandoned property or vessel in a location in the harbor approved by the harbormaster. (c) The harbormaster need not release the abandoned property or vessel from impoundment under this section when: (1) The harbormaster determines that possession of the abandoned property or vessel would be unlawful or would present an immediate hazard to public health or safety; or (2) The harbormaster has actual knowledge that ownership or possession of the abandoned property or vessel is in dispute. (Ord. 95- 11) 7.10.745. Disposition of impounded abandoned property or vessel. FORMAT: New Text is underlined bold; [Del sled =fex - i s bracketed- strikclhr ]; Notes indented Blue (a) The city shall not dispose of impounded abandoned property or an impounded vessel until 30 days after the date of impoundment under this chapter. (h) Public auction is not required when the appraised value of the abandoned property or vessel, as determined by an independent appraiser, is less than $500.00. The appraiser must have at least one year of experience in the sale, purchase, or appraisal of abandoned property or vessels. Upon that determination and after public advertisement has been made once in a newspaper of general circulation, the harbormaster may sell the abandoned property or vessel by negotiation, dispose of it as junk, donate the abandoned property or vessel to a governmental agency, or destroy it. (Ord. 95-11) 7.10.750. Public auction. (a) Notice of sale. Prior to the sale of any impounded property or vessel, the harbormaster shall prepare a written notice of sale of the property or vessel. The notice shall contain: (1) The name and /or official number or state registration number of the abandoned property or vessel, the location of the abandoned property or vessel, and a detailed description of the abandoned property or vessel; (2) The date, time, and place of the sale; (3) The fees, interest, and costs that are due against the abandoned property or vessel and any bidding terms; (4) A statement indicating to whom payment must be made in order for the owner to redeem the abandoned property or vessel prior to sale; and (5) A statement indicating that the city may purchase the abandoned property or vessel at the sale for an offset bid in the amount of fees and charges due the city for the abandoned property or vessel. (b) Distribution. At least 20 days before the sale, the notice of sale shall be: (1) Mailed by certified mail, return receipt requested, to the last known owner of the abandoned property or vessel at the owner's last known address; (2) Posted on the abandoned property or vessel, in the harbormaster's office, at city hall, and in a United States Post Office in the city; and (3) Published at least once in a newspaper of general circulation in the city for a total of seven consecutive days. (Ord. 95-11) 7.10.755. Sale. (a) Public auction. Any time after the distribution of the notice of sale, the abandoned property or vessel may be disposed of by public auction, through oral tenders, or by sealed bids. (b) Bids. The minimum acceptable bid shall be a sum equal to the fees against the abandoned property or vessel, including interest and costs to be paid in cash at the time of sale or within 24 hours thereafter. The proceeds of such sale shall be first applied to the cost of sale, including advertising, then to interest owed the city, then to fees accrued and owed to the city, and the balance, if any, shall be held in trust by the city for the owner of the abandoned property or vessel to claim. If such balance is not claimed within two years, the balance shall be forfeited to the city and paid into the harbor enterprise fund. (c) No acceptable bids. If at the public sale there are no acceptable bids for the abandoned property or vessel, the city may destroy, sell at a private sale, or otherwise dispose of the abandoned property or vessel. The disposition to be made without liability to the owner, any FORMAT: New Text is underlined bold; [Deleted is bracketed - strikethr r}; Notes indented 13ll,ic person in possession of the abandoned property or vessel, or any lienholder of the abandoned property or vessel. (Ord. 95 -11) 7.10.760. Effect of sale. Upon sale being made, the city shall make and deliver its bill of sale, without warranty, conveying all of the city's interest in the abandoned property or vessel to the buyer. (Ord. 95-11) Article 8. Business Activities 7.10.810. Licenses and permits prerequisite to conduct of business. No business activity shall be conducted within the harbor unless the licensee, permittee, concessionaire, assignee, lessee or sublessee shall have first obtained the necessary permits and licenses from the city; provided, however, that commercial fishing vessels do not require a business license to carry on the normal activities relating to their operation. (Ord. 95-11) 7.10.815. Business permits -- required. (a) It shall be unlawful for any person to conduct or carry on any business upon any portion of the city facilities, or upon any float, landing stage, or approach thereto in use in connection with the city facilities, or to use, occupy or hold possession of any part of the city facilities, float, landing stage or approach thereto, for any business purpose whatever, except for taking on or landing passengers thereon or thereover unless such person shall have a business permit therefor. (b) It shall be unlawful for any person to solicit, ask for or request patronage or trade, or display ware or advertise in any way, on the city facilities, or upon any float, landing stage or approach thereto in use in connection therewith, for any business, or to sell tickets of any kind therewith, or to sell any article of merchandise upon any portion of the city facilities, float, landing stage or approach thereto, unless such person shall have a business permit therefor. (Ord. 95 -11) 7.10.820. Business permits -- Employees and agents of principals. Where a business permit is desired for a person to carry on business as an employee or agent for any person, the application for such permit shall be approved by the principal of such person, and such permit may be revoked at any time without notice to the holder thereof upon the request of such principal to do so. (Ord. 95 -1 7.10.825. Business permits -- Application. The application for a business permit shall be in writing and shall set forth the following information: (1) The name and address of the applicant and, if the applicant shall be a firm, the names and addresses of the members of such firm, and, if the applicant shall be a corporation, the names and addresses of the officers of the corporation; FORMAT: New Text is underlined hold; fDeleted =Fext is bracketed- strikethrough]. Noes indented Bkie (2) The names of the vessels, the description of the business to be carried on by means of such vessels, a reference to the business licenses, if any, held by such applicant, and any other particulars which such applicant may wish to set forth as a reason for granting such permit; (3) A description of the space on the city facilities ofthe floats or landing stages the applicant desires to use in carrying on such business; and (4) A statement to be signed by the applicant that if such permit shall be granted, he will conduct his business thereunder in accordance with the laws of the city in relation thereto, the terms of such permit and all rules and regulations in relation to the city facilities, and that the permit may be revoked at any time by the city council for the violation of the terms of such permit, and that the decision of the city council as to the revocation of any such permit shall be final and conclusive. (Ord. 95 -11) 7.10.830. Business permits -- Duration. The city council shall have the power and authority, in its discretion, to grant a permit to any person to use or occupy certain portions of the city facilities, and any float, landing stage or approach thereto, for a term not exceeding one year, and subject to revocation at any time by the city council for violation of any of the terms of such permit, or of the laws of the city, or ofthe rules and regulations adopted by the city council for the use of the city facilities. (Ord. 95 -11) 7.10.835. Business permits- -Terms and conditions. All business permits shall be on forms to be adopted by the city council and shall include such terms and conditions, in addition to those set forth in this chapter, as the city council may determine from time to time to be necessary or advisable to preserve the public peace and quiet on the city facilities or to protect the public welfare, and all such terms and conditions included in any such permit shall be binding on the holder of such permit to the same extent as though expressly set forth in this chapter. (Ord. 95 -11) 7.10.840. Business permits -- Suspension and revocation. (a) Suspension. The city council may, in its discretion, at any time, as a penalty for the violation of the provisions of any business permit, suspend the same for a period to be fixed in such order of suspension. (b) Revocation. All business permits issued shall be granted and accepted by all persons receiving such permits with the express understanding that the city council may revoke the same at any time if satisfied that any of the conditions of the permit or provisions of this chapter have been violated, or that such permit was obtained by fraudulent representation, or that the holder of any such permit is an unfit person to be entrusted with the privileges granted by such permit; provided, that no permit shall be revoked without first giving the holder an opportunity to appear before the city council in his own behalf, except as to an employee or agent of some other person holding a business permit who requests such revocation. (Ord. 95 -11) 7.10.845. Right of city to inspect leased premises. FORMAT: New Text is underlined bold; [Deleted Text -is-1 keted }; Notes indented Blue The city reserves the right to inspect any of the rented or leased premises at any time. Failure to inspect shall not be deemed to create any responsibility upon the city. (Ord. 95 -11) 7.10.850. Applicants to release city from liability. The city assumes and shall be under no liability for anything done or omitted to be done under or in relation to any of the provisions of this chapter, and applicants for permits shall release the city accordingly. (Ord. 95 -11) FORMAT: New Text is underlined hold; leted -ext i bracketed strikethmug }; Notes indented Plus City ofSelvard, Alaska Port and Commerce A dvisory Board Minutes November 4, 2009 Volume 3, Page CALL TO ORDER The regular November 4, 2009 meeting ofthe Seward Port and Commerce Advisory Board was called to order at 12:00 p.m. by Chair Long. PLEDGE OF ALLEGIANCE TO THE FLAG led by Theresa Butts ROLL CALL There were present: Board Member Theresa Butts presiding, and Ron Long Theresa Butts Deborah Altermatt Rob Buck Paul Tougas comprising a quorum of the Board; Kari Anderson, Harbormaster Christy Terry, Community Development Director Laura Cloward, Seward Chamber of Commerce Director Louis Bencardino, Alaska Rail Road Representative Absent: Dan Oliver, Darryl Schaefenneyer SPECIAL ORDERS, PRESENTATIONS, AND REPORTS - Administrative Report - Alaska Railroad Representative, Louis Bencardino reported on the following items: • The status of the current dredging project at the cruise ship dock • The vessels that were and would be at that dock • The success of the Halloween carnival that took place on October 31, 2009 • Updated the Board on future events in the Rail Road terminal Seward Chamber of Commerce Director, Laura Cloward gave a report. City of Seward, Alaska Port and Commerce Advis nyBoard Al November 4, 2009 Volume 3, Page Harbormaster Kari Anderson reported on the following items: • Tariff Changes for all Enterprise Funds would be presented at the Seward City Council Meeting on Monday November 9 Some of those proposed changes were moorage rate increase, instituting the Capital Repair and Replacement fee and Storage fee at the Seward Marine Industrial Center. • Explained why the Capital Repair and Replacement Fee were created as well as defining the rate structure and how it would benefit the Harbor department. • PACAB Board members would now begin to see World Trade Center updates forwarded to their email. • Harbormaster Anderson and Deputy Harbormaster Jim Lewis attended the Alaska Association of Harbormaster's and Port Administrator's conference in Kodiak during the week of October 19`''. Conference topics included: Storm Water Management, Oil Spill Removal Capabilities, Cost- effective Design and Construction, Marina Marketing, and updates from DOT (Ports & Harbors) and USACE. Both also took a tour of Kodiak's facilities and new Boatyard with their 600 -ton Marine Travelift. • The City was working on a quarry contract with West Construction (out of Anchorage, Alaska) who was awarded the Breakwater Extension Project from the US Army Corps of Engineers. The rock placement for this project was anticipated to happen during 2010, either in the winter /early spring or in the fall. • The Harbor had destroyed 2 impounded vessels, and was in the process of selling two more. Each had been delinquent on payments to the harbor for several years. The procedures for the sale were outlined in Article 7.10.755 of the Seward City Code. • The applications for the Municipal Harbor Matching Grant Program had been scored and were to be presented to the Alaska Legislature to drum up support for funding for that program. Seward's application for $1.5 million for Z float scored #1 out of all Tier 2 projects. Tier I projects received funding first, so the Municipal Harbor grant program would need to see at least $15 million appropriated for the Seward Harbor project to receive tending. Community Development Director Christy Terry reported on the following items: • Budget update would be emailed • An update on the Library Museum Schematic Design would he emailed • Final draft Title IS to staff for review this week and public meetings may start in January City of Seward, Alaska Port and Commerce Advisory Board Minutes November 4, 2009 Volume 3, Page Citizens' comments on any subject except those items scheduled for public hearing- Torn Tougas, inside City Limits, commented on the inconsistencies between the Harbor Tariff and title 7 of the Seward City Code, listing: • The policy ofnot allowing companies, businesses, and corporations to be on the permanent slip waiting list, making mention that a good number of the commercial boats that use the Seward harbor are not owned by a single person. • Tenant slips being boat specific as opposed to operator specific. • "Short rating" multiple boats in one tenant slip. • Three tenant slip limit. Tougas stated that in today's market a three boat fleet can not be economically successful. If this policy was ignored then it shouldn't be in the code. • Transfer of commercial vessels. Russ Maddox, outside City Limits, clarified that the Resurrection Bay Conservation Alliance was not responsible for the 60 day notice of litigation that was levied against the Alaska Railroad Corporation. Laura Cloward, Chamber Director, spoke on behalf of one the Chamber of Commerce members about "live -a- boards" in the harbor and the question as to whether there would be additional charges to those individuals that currently live on their boats once the budget is passed. Denis Swiderski, outside City Limits( ?), commented on the switching ofvessels in a tenant slip, and that he felt that the City should have the slips be owner specific not boat specific. Approval of the Agenda and Consent Agenda Motion (Tougas /Altermatt) Approve the Agenda and Consent Agenda as amended to include New Business item C) Attendance of the Pacific Marine Expo. Motion Passed Unanimous Consent The following item was approved under the consent agenda: INFORMATIONAL ITEMS — None. UNFINISHED BUSINESS - None. City ofSewarcd, .Alaska Portend Commerce Advisory Board Minutes Novembee 4, 2009 Volume 3, Page NEW BUSINESS Discuss a resolution supporting continued study of the low- impact Run -of -River Hydroelectric facility proposed at Fourth of July Creek. Motion (Butts /Altermatt) Postpone discussion of resolution supporting continued study of the low- impact Run -of- River Hydroelectric facility proposed at Fourth of July Creek until the December 2, 2009 regular meeting. Motion Passed Unanimous Consent Review updated recommendations to title 7 of the Seward City Code and the Harbor Tariff The Board began review of Chapter 7.10 of the Seward City Code. Motion (Tougas /Buck) Delete "8 am on the first calendar day to 8 am on the next calendar day" and replace it with "12:01 am of the first calendar day to midnight" of 7.10.315 (b) of the Seward City code. Motion Passed Unanimous Consent Discussion: • In response to Vice Chair Butts question Harbormaster Anderson spoke about the billing for the month and renewal date creating considerable difficulty for the Ilarbor stall: • Harbormaster Anderson answered a question about how a tenant paid when that person was issued a tenant slip in the middle of the year. Motion (Long /Butts) Insert the word "monthly" before the word "quarterly" in the third sentence, and deleting the last two sentences of section 7.10.315 (b) of the Seward City code. City of Seward, Alaska Port and Commerce Advisory Board Minutes November 4, 2009 Volume 3, Page Motion Passed Unanimous Consent Discussion: • Vice Chair Butts wanted to acknowledge that she felt this was the right thing to do for the customer even if it was difficult for the Harbor staff. Chair long included he felt that this could be addressed with a software program. Motion (Tougas /Butts) Strike "newspaper" and insert "news media" in the third sentence of Seward City Code 7.10.745 (b). Motion Passed Unanimous Consent Motion (Altermatt /Tougas) Insert the word "partner" at the end of the last sentence of Seward City Code 7.10.315(d) to read "Waitlist priority may not be transferred except upon applicant's death, to applicant's Spouse, Child, or partner ". Motion Passed Four Ayes, one No' Discussion: • It was agreed that the term definitions in the Code should he looked at. • Board member Buck stated that there should be some care taken in how the word "partner" is used in today's social climate, including that it could he construed in many different ways. Motion (Altermatt /Tougas) Strike the first sentence of Seward City Code 7.10.320 (e). Motion Passed Unanimous Consent Discussion: • In response to questions and suggestions from Chair Long and Board member Butts, Harbormaster Anderson explained how the waitlist, slip transfer and slip placement procedure is carried out. I City of Seward, Alaska Port and Commerce Aclvisor y Board Minutes November 4, 2009 Volume 3, Page Motion (Butts /Buck) Replace the words "the new" with "this" in the second sentence to read "The applicant's name will be retained in this position for the remainder of the time..." in Seward City Code 7.0.320(e). Motion Passed Unanimous Consent Motion (Altermatt /Butts) Strike "it shall be presumed that the applicant has voluntarily withdrawn his application and the applicant's name will be removed from the wait list and the applicant's annual fee payment forfeited" and insert "the applicant forfeits the applicants priority of the wait list and the applicants name will be placed at the bottom of the waitlist" in Seward City Code Section 7.10.320(e). Motion Passed Unanimous Consent Discussion: Butts stated that this did not address the option of multiple options in less then a year. • Harbormaster Anderson stated in response to Altermatt's statement that the harbor office could not guarantee that the office could meet a full calendar year time line for applicants placement offers. • Teiry reread all Seward City Code section 7.10.320(e) back to the board as amended. • The Board discussed the different possible options for an applicant to pass up a slip offer without loosing the applicant's space at the top of the waitlist. Motion (Tougas /Butts) Extend meeting time by 15 minutes to 2:20pm, November 4, 2009 Motion Passed Unanimous Consent ( ^1 City of Seward, Alaska Port and Commerce AdvisayBoard Minutes November 4, 2009 Volume 3, Page Motion(Tougas /Long) Strike the word "Three" and insert the word "Fifteen" in the title, as well as the first sentence of Seward City Code section 7.10.32(f) . Motion Passed Unanimous Consent Discussion: • Chair Long commented on the history of the three slip limit in the Harbor. • Buck questioned Harbormaster Anderson on how the Harbor staff felt about the three slip limit and how it would affect the staff if it were to he changed. Motion (Altermatt /Long) Set a work session for Tuesday November 24, 2009 at 1:00pm and to cancel the November 18, 2009 work session to review and discuss possible changes to the Harbor Tariff. Motion Passed Unanimous Consent Discussion: • In response to Chair Long, Harbormaster Anderson reported that there will be in attendance at the Pacific Marine Expo a representative from the Seward Chamber of Commerce, AVTEC and the harbor. She felt that Seward would be represented well enough not to bring in a member from PACAB. CORRESPONDENCE, INFORMATIONAL ITEMS AND REPORTS - None BOARD COMMENTS — • Butts spoke about attendance to the future Trade and Transportation seminar. CITIZEN COMMENTS - None BOARD AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS - None , City of Seward, Alaska Port and Commerce Advisory Board Minutes November 4, 2009 Volume 3, Page ADJOURNMENT The meeting was adjourned at 2:25p.m. Angela Buck Ron Long Harbor Master Department Chair (City Seal) DecemDecem 2009 December 2009 January 2010 ber S M T W T F S S M T I N T F S 1 2 3 4 5 1 2 6 -7 8 9 1 0 1 1 ` 1 2 3 4 5 6 7 8'9 43141516171819 10'11 12 13 14 15 16 20 21 22 23 24 25 26 17 18 19 20 21 22 23 27 28 29 30 31 24 25 26 27 28 29 30 31 Monday Tuesday Wednesday Thursday Friday December 1 2 mP>ZWS _;" 3 4 6:30 p 12:00pm PACAB Meeting 7:30pm P &Z Meeting 7 8 1 9. 0 __ 11 11:30am Sewar �, Gamr tt` �� t , Bu)idtttg, Comnmttee' 14 15 16 1 18 7:00pm City Council 6:30pm P&ZxWork Session ` 12:00pm PA,CAB Wok x i 9:00am Social Security Meeting Session .: i`_.^ Rep 6:30pm Historic Preservation Meeting 21 . : 22 2 25 12:00pm Christmas Eve Merry Christmas - Offices Clos Offices Close at Noon 28 29i 3 31 I , I I Nanci Richey 1 11/24/2009 11:10 AM I;Y; J anuary 2010 2010 February 2010 S M T W T F S S 1 2 1 2 3 4 5 6 3 4 5 6 7- 8 9 7 8 "' 9 10 11 12 13 10 11'12 13 -14 15 16 14 15 16 17 18 19 20 17 18 19 20 21 22 23 21 22 23 24 25 26 27 24 25 26 27 28 29 30 28 31 Monday Tuesday Wednesday Thursday Friday January 1,2010 'New Years Day (Qffces Close( 1 ' _ 5 6 71 E 7:30pm P &Z Meeting 11' _ 12 131 1 15 7:00pm City Council 11:30am �* Meeting 3 Libi �Museur T.. kg .rd B utyl (rtg ",� Committee * . 18 1 2 - 21 22 6:30pm P&2 Work =Session 12:00pm PACABWotk 9:00am Social Security Ses i Rep 6:30pm Historic Preservation Meeting 25 26 271 28 25 7 :00pm City Council 1 Meeting 1 � { Nanci Richey 2 11/24/2009 11:10 AM