HomeMy WebLinkAboutRes2018-081Sponsored by: Administration.
CITY OF SEWARD, ALASKA .
RESOLUTION 2018-081
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
SOLE SOURCE CONTRACT FOR THE AMOUNT OF $88,000 WITH
YOUR CLEAN ENERGY TO STUDY THE COSTS AND FEASIBILITY
OF A HYDROELECTRIC PROJECT IN LOWELL CANYON AND
PRODUCE A REPORT, AND APPROPRIATING FUNDS
WHEREAS, the City of Seward is interested in exploring options for clean renewable
energy and reducing the dependency on the use of fossil fuels for producing energy; and
WHEREAS, the City of Seward once produced hydroelectric to power the town in
Lowell Canyon and some of the facilities still exist, possibly reducing the overall cost of a new
project; and
WHEREAS, the City of Seward requires additional information on the cost and
feasibility of constructing a hydroelectric facility in Lowell Canyon to make an educated
decision; and
WHEREAS, Andy Baker of Your Clean Energy has firsthand specialized knowledge and
experience of the area of Seward, the facilities for this particular hydroelectric project and a
background in renewable energy; and
WHEREAS, SCC § 6.10.115 and 6.10.120.8 provides for an exemption from
competitive procurement procedures for professional services that require special knowledge and
judgement that includes analysis, evaluation, prediction, planning or recommendations and
which result in the production of a report; and
WHEREAS, the Port and Commerce Advisory Board (PACAB) passed a resolution
asking the City Council to act in this direction.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
Section 1. The City Manager is hereby authorized to enter into the attached signed
agreement with Andy Baker of Your Clean Energy in the amount of $88,000 in substantial form
as attached hereto.
Section 2. The City Council hereby finds that it is in the public interest to sole source
this work in accordance with the recitals above which are incorporated herein and exempts this
purchase from competitive procurements, as allowed by SCC § 6.10.120.8, which exempts
competitive procurement for the purchase of professional services.
CITY OF SEWARD, ALASKA
RESOLUTION 2018-081
Section 3. Funding in the amount of $88,000.00 is hereby appropriated from the Electric,
Fund unassigned fund balance account no. 15000-0000-3400 to Electric Dept. contracted
services account no. 15000-3000-7009.
Section 4. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 8tn
day of October, 2018.
THE CITY OF SEWARD, ALASKA
+Mailanna
Keil, Vice Nvayor
AYES: Casagranda, McClure, Seese, Towsley, Keil
NOES:
ABSENT: Horn, Squires
ABSTAIN:
ATTEST:
4'44xkyzz�
renda J. Ball , MMC
City Clerk
(City Seal) ®�a®F���®
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A
1
Agenda Statement
Meeting Date: September 24, 2018
To: City Council
Through: Eddie Athey, Acting City Manager
From: John Foutz, Electric Department Director
Agenda Item: Produce a study to determine the estimated cost and feasibility of a
hydroelectric facility in Lowell Canyon
BACKGROUND & JUSTIFICATION
The City of Seward supports the research and development of clean, renewable energy as a means
of reducing fossil fuel consumption. One of the main resources the City of Seward has available
to reduce fossil fuel consumption is Hydroelectric Power. Remnants of the old hydroelectric
facility that powered the City of Seward prior to the purchasing of power from other utilities still
remain in Lowell Canyon. The City may be able to reduce its consumption of fossil fuels at a
reasonable cost by refurbishing the already existing facility. However, to adequately evaluate this
possibility, a cost analysis and a feasibility study must be performed. The Port and Commerce
Advisory Board reviewed this topic and passed a resolution of support. Andy Baker of Your Clean
Energy has been tasked previously with doing some minor analysis on the potential of Lowell
Canyon and would be an ideal candidate based on his history, education and experience with the
area. Under section 6.10.120.8 the purchasing may be exempt from competitive procurement for
reasons that include analysis, recommendations and the production of a report.
Seward Municipal Code References:
6.10.120. Specialized products and professional services exempt.
8. To the purchase of professional services. Professional services are those that require
special knowledge and judgement that includes analysis, evaluation, prediction, planning
or recommendations and which result in the production of a report or the completion of a
task. Examples of professional services include accounting, architectural, appraisal,
engineering, land surveying, financial consultation, legal services, lobbying, planning,
economic analysis, computer programming and system analysis, insurance consultation
and risk analysis and other specialized services. Any professional services contracts
which are not procured using the competitive procurement procedures shall not exceed
two years except for completion of work in progress under architectural or engineering
contracts.
6.10.130. Where competitive bid proposals not in public interest.
Restrictions and provisions of this title shall not apply where the city council determines
and makes written findings that the public interest would be best served by not requiring
competitive bids/proposals.
INTENT:
To authorize the City Manager to enter into a contract with Your Clean Energy to produce a report
for the estimated costs and feasibility of a hydroelectric power project in Lowell Canyon.
27
CONSISTENCY CHECKLIST:
Comprehensive Plan Comprehensive Plan (1. 3, 3. 7. 3. 1, 3. 7. 3. 2)
Continue to upgrade and expand utilities to meet existing needs and
Yes
No
NIA
1, encourage future development. Expand customer base within the
X
Seward Electric Utility area as a means to reduce energy costs and
im rove services.
2 Strategic Plan: The mission of the City of Seward government it is to
provide quality leadership and economic wellbeing of its citizens
X
3.
Other (list):
X
FISCAL NOTE:
Funding for the study and report of the Lowell Canyon Hydroelectric project will be appropriated
from the Electric Fund reserves in the amount of $88,000.
Approved by Finance Department: [
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
Council approve Resolution 2018-, authorizing the City to enter into an agreement with Your
Clean Energy to produce a study regarding the economics and feasibility of a Lowell Canyon
Hydroelectric power project in the amount of $88,000.
28
CITY OF SEWARD, ALASKA
AGREEMENT FOR PROFESSIONAL ENGINEERING SERVICES
CONCEPT DESIGN AND FEASIBILITY EVALUATION
LOWELL CREEK HYDRO PROJECT
This Agreement between the City of Seward, Alaska (" City), P. O. Box 167, Seward, Alaska
99664 and YourCleanEnerg_y, LLC ("Architect/Engineer"), 308 G Street, Suite 215, Anchorage,
Alaska 99501 effective on the 2nd day of October, 2018.
Architect/Engineer's Project Manager is Andy Baker, P.E., telephone number 907-274-2007;
Cell: 907-350-2084; E-mail: and,, b�2yourcleanenergy.us.
The project manager may be changed only upon written consent from the City.
The City's Project Manager is John Foutz, Electric Utility Manager, telephone number 907-224-
4071; Cell: 907-362-1785; E-mail: jfoutz(2cityofseward.net.
This Agreement is for professional services for Concept Design and Feasibility Evaluation of the
Lowell Creek Hydro Project.
Article 1. SUMMARY OF SERVICES
1.1 The scope of work to for the development of concept system design and preliminary
economic evaluation to support the installation of a small hydroelectric system on Lowell
Creek in Seward, Alaska as more completely described in Architect/Engineer's
September 11, 2018 proposal which is attached as Appendix A.
Article 2. COMPENSATION
2.1 The Architect/Engineer will be paid as follows:
2.1.1 Step I — YCE & Canyon Hydro Staff Site Visit $16,000
2.1.2 Step 11— YCE & Canyon Hydro Site Visit Report $26,000
2.1.3 Step III- YCE Concept Design and Economic Evaluation $36,000
2.1.4 Step IV — YCE & Canyon Hydro Report Presentation $10,000
Total Compensation $88,000
Article 3. PERIOD OF PERFORMANCE
3.1 The Architect/Engineer agrees to commence work under this Agreement only as
authorized by and in accordance with written notice(s) to proceed and to complete the
work in accordance with scope of work (Appendix A) and such time schedules included
therein or in other appendices.
Page 1 of 9
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3.1.1 Step I — YCE & Canyon Hydro Site Visit Oct 15-18, 2018
3.1.2 Step II — YCE & Canyon Site Visit Report Nov 9, 2018
3.1.3 Step III — YCE Concept Design & Economic Evaluation Nov 30, 2018
3.1.4 Step IV — YCE & Canyon Hydro Report Presentation Dec 19, 2018
3.2 The Architect/Engineer agrees that it shall not be compensated for any costs incurred
prior to the receipt of notice(s) to proceed. Notice to proceed is effective with execution
of this Agreement and issuance of the City purchase order.
3.3 The period of performance under this Agreement shall end December 31, 2018.
Article 4. SUB -CONSULTANTS
4.1 The Architect/Engineer shall perform all services required under this Agreement except
as may be performed by sub -consultants shown in Appendix A, who are approved by the
City. These sub -consultants may be changed only upon written consent from the City.
Article 5. INSURANCE
5.1 In accordance with the provisions contained in the General Conditions (Appendix B), the
following minimum limits of insurance coverage are required by this Agreement.
LIMITS OF LIABILITY
TYPE OF INSURANCE EACH OCCURRENCE AGGREGATE
Workmen's Compensation for states (Statutory) (Statutory)
in which employees are engaged
Commercial General Liability 1,000,000 1,000,000
Comprehensive Automobile Liability 300,000 300,000
SPECIAL CONDITIONS
Article 6. PAYMENT TO ARCHITECT/ENGINEER
6.1 The Architect/Engineer shall invoice and be paid by the City monthly on the basis of a
percent complete of each fixed fee tasks.
6.2 The City agrees to make payment due to the Architect/Engineer within 30 days following
receipt and agreement with the Architect/Engineer's bill.
Article 7. CHANGE ORDERS AND REVISIONS
7.1 Change in Services of Architect/Engineer may be accomplished after execution of this
Agreement, without invalidating this Agreement, if mutually agreed in writing, if
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required by circumstances beyond Architect/Engineer's control or if Architect/Engineers
services are affected as described in Section 7.2. In the absence of mutual agreement in
writing, Architect/Engineer shall notify City in writing prior to providing such services.
If City deems that all or a part of such Change in Services is not required, City shall give
prompt written notice to Architect/Engineer, and Architect/Engineer shall have no
obligation to provide those services; and the City shall have no obligation to pay for the
costs associated with that change of service request. Except for a change due to the fault
of Architect/Engineer, Change in Services of Architect/Engineer shall entitle
Architect/Engineer to an adjustment in compensation pursuant to Appendix B, Section
VI.
7.2 If any of the following circumstances affect Architect/Engineer's services for the Project
and the Architect/Engineer has in writing prior approval or notification from the City,
Architect/Engineer shall be entitled to an appropriate adjustment in Architect/Engineer's
schedule and compensation:
7.1.1 Change in the instructions or approvals given by City that increase the scope of
work described in the above Section 1.1;
7.1.2 Enactment or revision of codes, laws or regulations or official interpretations,
which necessitate changes to the scope of work described in Section 1.1;
7.1.3 Decision of City not rendered in a timely manner;
7.1.4 Failure of performance on the part of the City's representative/s; and
7.1.5 Preparation for and attendance at a public hearing, a dispute resolution proceeding
or a legal proceeding except where Architect/Engineer is a party thereto.
Article 8. INDEMNIFICATION
8.1 The Architect/Engineer is an independent contractor and not an employee or agent of the
City. To the fullest extent permitted by law, the Architect/Engineer agrees to
defend, indemnify and hold harmless the City, its elected and appointed officials,
employees, and volunteers against any and all liabilities, claims, demands,
lawsuits, or losses, including costs and attorney fees incurred in defense thereof,
arising out of or in any way connected or associated with this contract.
Article 9. APPENDICES
9.1 The following appendices are attached to this Agreement and incorporated herein:
Appendix Title
A Architect/Engineer Proposal dated September 11, 2018
B General Conditions
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a
IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS AGREEMENT.
Architect/Engineer: YourCleanEnergy, LLC.
Signature:
Title:
Owner:
Signature:
Title:
Andy Baker, PE
Principal
City of Seward, Alaska
Jeff Bridges
City Manager
APPENDIX B
GENERAL CONDITIONS
I. DEFINITIONS
Date
Date
10/2/ 18
BASIC SERVICES: The identified work elements set forth in this Agreement for which the
Architect/Engineer will receive prime compensation.
CHANGE: In addition to, or reduction of, or other revision in the scope, complexity,
character, or duration of the services or other provisions of this Agreement.
CITY'S PROJECT MANAGER: City's representative in charge of the project(s) and the
Architect/Engineer's primary point of contact for notice(s) to proceed, invoices, correspondence
and interface with the Architect/Engineer.
ARCHITECT/ENGINEER'S PROJECT MANAGER: The Architect/Engineer's representative
in charge of the project(s) who is directly responsible and engaged in performing the required
services.
EXTRA SERVICES: Any services or actions required of the Architect/Engineer above and
beyond provisions of this Agreement.
Page 4of9
WA
FUNDING AGENCY (S1- The agency(s) of the federal, state or municipal government which
furnishes funds for the Architect/Engineer's compensation under this Agreement.
OPTIONAL SERVICES: Identifiable and/or indeterminate work elements set forth in this
Agreement, which are separate and distinct from those covered by the prime compensation,
which the City has the option to authorize.
PRIME COMPENSATION: The dollar amount paid to the Architect/Engineer for basic services
as set forth in this Agreement. Prime compensation does not include payment for any optional or
extra services.
SCOPE OF WORK: Basic and optional services required of the Architect/Engineer by
provisions of this Agreement.
SUBCONTRACTOR: Any person, firm, corporation, joint venture, partnership or other
entity engaged through or by Architect/Engineer.
II. INFORMATION AND SERVICES FROM OTHERS
Provisions of information, data budget, standards, and other materials by the City does not
warrant their accuracy or quality nor provide approval of omissions or oversights or of any
noncompliance with applicable regulations.
The City may, at election, or in response to a request from the Architect/Engineer, furnish
information or services from other Architect/Engineers. If, in the Architect/Engineer's opinion,
such information or services are inadequate, the Architect/Engineer must notify the City of the
specific service of material deemed inadequate and the extent of the inadequacy prior to use in
the performance of this Agreement. Unless so notified by the Architect/Engineer, the City may
assume the information or services provided are adequate.
III. HOLD HARMLESS
The Architect/Engineer shall indemnify, defend, and hold and save the City, its officers, agents
and employees harmless from liability or any nature or kind including costs and expenses, for or
on account of any and all legal actions or claims or any character whatsoever resulting from
injuries or damages sustained by any person or persons or property arising from performance of
this Agreement, which is caused in whole or in part, by any negligent act or omission of the
Architect/Engineer; provided, however that this paragraph shall not be construed so as to require
the Architect/Engineer to defend, indemnify or hold harmless the City from such claims,
damages, losses, or expenses caused by or resulting from the sole negligence of the City. It is
agreed that where such concurrent negligence of (1) the City and (2) the Architect/Engineer, it is
expressly agreed that the Architect/Engineer's obligations of indemnity under this paragraph
shall be effective only to the extent of the Architect/Engineer's negligence.
Page 5 of 9
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IV. INSURANCE
The Architect/Engineer shall not commence work under this Agreement until all required
insurance has been obtained, nor shall the Architect/Engineer allow any sub -consultant to
commence work on its subcontract until the insurance required has been so obtained. The
Architect/Engineer shall furnish certificates of insurance showing the City as co-insured, in
evidence of the requirements of Article 5 of the contract and paragraphs (a) below. All
certificates must provide a 30-day prior notice to the City of cancellation, nonrenewable or
material alternation of such insurance. Failure to furnish satisfactory evidence of insurance or
lapse of coverage is grounds for termination of this Agreement.
The Architect/Engineer shall purchase and maintain such insurance as will protect it from claims
under Workmen's Compensation acts and other employee benefits acts for damages because of
bodily injury, including death, to its employees and all others and for damages to property, any
or all of which may arise out of or result from the Architect/Engineer's operations under this
Agreement whether such operations be by it or by any subcontractor or anyone directly or
indirectly employed by either. Limits for the insurance listed shall not be less than that specified.
Architect/Engineer shall provide at least the following:
(a) Workmen's Compensation Insurance for all states in which employees are
engaged in work under this Agreement.
(b) Commercial General Liability
(c) Comprehensive Automobile Liability
V. PAYMENTS
Payments shall be made in accordance with the payment schedule, and within 30 days of
receiving invoice from the Architect/Engineer. The sum of payments shall not exceed the
allowable compensation stated in this Agreement. In the event items on an invoice are disputed,
payment on those items will be withheld until the dispute is resolved.
The Architect/Engineer shall submit a final invoice and required documentation for services
authorized by each Notice to Proceed within ninety (90) days after final acceptance by the City.
The City will not be held liable for payment of invoices submitted after this time unless prior
written approval has been given.
VI. CHANGES
Changes in the scope of work or of services may only be made by written amendment. The
Architect/Engineer shall not perform any extra services prior to receiving a fully executed copy
of an amendment and a Notice to Proceed.
If at any time the City through its authorized representatives, either verbally or in writing,
requests or issues instructions for extra services or otherwise directs actions which conflicts with
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any provisions of this Agreement, the Architect/Engineer shall, within ten days of receipt and
prior to pursuing such instructions, notify the City in writing, and to the extent possible, describe
the scope and estimated cost of any extra services. Unless so notified by the Architect/Engineer,
the City may assume such instructions have not changed any provisions of this Agreement nor
require additional compensation. No additional payments shall be made to the
Architect/Engineer without such notice.
VIII. INSPECTIONS
The City, or any funding agency, has the right to inspect, in the manner and at reasonable times it
considers appropriate during the period of this Agreement, all facilities and activities of the
Architect/Engineer in the performance of this Agreement.
IX. TERMINATION OR SUSPENSION
This Agreement may be terminated by either party upon ten day's written notice if the other party
fails substantially to perform in accordance with its terms through no fault of the party initiating
the termination (default termination). If the City terminates this Agreement on account of
Architect/Engineer's default, the City will pay the Architect/Engineer for work completed prior
to termination that can be substantiated by the Architect/Engineer and the City, and
Architect/Engineer shall be liable for the remaining cost of the provision of architect and
engineer services on the Project. If the City becomes aware of any fault or defect in the work of
the Architect/Engineer or nonconformance with this Agreement, the City will give prompt
written notice thereof to the Architect/Engineer. Should the Architect/Engineer's services remain
in nonconformance to this Agreement, the percentage of total compensation attributable to the
nonconforming work may be withheld.
The City at any time may terminate (convenience termination) or suspend this Agreement for its
own needs or convenience. In the event of a convenience termination or suspension for more
than three months, the Architect/Engineer will be compensated for authorized services and
authorized expenditures performed to the date of receipt of written notice of termination plus
reasonable termination expenses. No fee or other compensation for the uncompleted portion of
the services will be paid, except for already incurred indirect costs which the Architect/Engineer
can establish and which would have been compensated for over the life of this Agreement, but
because of the convenience of the termination would have to be absorbed by the
Architect/Engineer without further compensation. in no event shall Architect/Engineer be
entitled to profit for unperformed work following termination for convenience of this
Agreement.
If state or federal funds support this Agreement settlements in the event of default or
convenience termination must be approved by the City and any appropriate state or federal
agency.
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X. OFFICIALS NOT TO BENEFIT
No member of or delegate to Congress, United States Commissioner or other officials of federal,
state or local government shall be admitted to any share or part of this Agreement or any benefit
to arise there from. The Architect/Engineer warrants that it has not employed or retained any
organization or person, other than a bona fide employee working for the Architect/Engineer, to
solicit or secure this Agreement and that it has not paid or agreed to pay any consideration
contingent upon or resulting from this Agreement.
XI. INDEPENDENT CONTRACTOR
Except in those instances specifically provided for herein, the Architect/Engineer and any of its
agents and employees shall act in an independent capacity and not as agents of the City in the
performance of this Agreement.
XII. ENDORSEMENT ON DOCUMENTS
Endorsements and professional seals, if applicable, must be included on all final plans,
specifications, estimates and reports.
XIII. OWNERSHIP OF WORK PRODUCTS
Work products produced under this Agreement, except items which have preexisting copyrights,
are the property of the City. Payments to the Architect/Engineer for services hereunder includes
full compensation for all work products, field notes, interim design work, blueprints, surveys,
and other materials produced by the Architect/Engineer and its subcontractors pertaining to this
Agreement.
Should the City elect to reuse work products provided under this Agreement for other than the
original and specific project and/or purpose, the City will indemnify the Architect/Engineer and
its subcontractor against any responsibilities or liabilities arising from such reuse. Additionally
in any such reuse the original Architect/Engineer's or subcontractor's signature, professional
seals and dates must be removed. Reuse which requires professional signature and seal will be
signed, sealed and dated by the professional who is in direct supervisory control and responsible
for the adaptation. No royalty or other compensation for such reuse may be paid to the
Architect/Engineer or its subcontractors.
XIV. SUCCESSORS AND ASSIGNS
The Architect/Engineer binds itself, its partners, its subcontractors, assigns and legal
representatives to this Agreement and to the successors, assigns and legal representatives of the
Architect/Engineer with respect to all covenants of this Agreement. The Architect/Engineer
shall not assign, sublet or transfer any interest in this Agreement without the prior written
consent of the City.
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[K:
XV. CLAIMS AND DISPUTES
If the Architect/Engineer becomes aware of any act or occurrence which may form the basis of a
claim the Architect/Engineer shall immediately inform the Project Manager. If the matter cannot
be resolved within seven (7) days, the Architect/Engineer shall, within the next fourteen (14)
days, submit written notice of the facts which may form the basis of the claim.
In presenting any claims, the Architect/Engineer shall, specifically include the provisions of this
Agreement, which apply, the specific relief requested, included any additional compensation
claimed, and the basis upon which it was calculated and/or the additional time requested and the
basis upon which it was calculated and/or the additional time requested and the basis upon which
it was calculated.
XVI. EXTENT OF AGREEMENT
This Agreement, including appendices, represents the entire and integrated Agreement between
the City and the Architect/Engineer and supersedes all prior negotiations, representations or
agreements, either written or oral.
Nothing contained herein may be deemed to create any contractual relationship between the City
and any subcontractors or material suppliers; nor may anything contained herein be deemed to
give any third party a claim or right to action against the City or the Architect/Engineer which
does not otherwise exist without regard to this Agreement.
This Agreement may be changed only by written amendment executed by both the City and the
Architect/Engineer. All communications that affect this Agreement must be made or confirmed
in writing. The Architect/Engineer on receiving final payment will execute a release, if required,
in full of all claims against the City arising out of or by reason of the services and work products
furnished under this Agreement.
The Architect/Engineer shall pay all federal, state and local taxes incurred by the
Architect/Engineer and shall require their payment by any subcontractor or any other persons in
the performance of this Agreement.
XVII. GOVERNING LAWS
This Agreement is governed by the laws of the State of Alaska and such federal and local laws
and ordinances as are applicable to the work performed. Any dispute arising under this
agreement shall be subject to litigation in the Superior Court for the State of Alaska, Third
judicial District at Kenai.
XVIIL PRECEDENCE AND DIVISIBILITY
The provisions of this Agreement shall fully govern the services performed by the
Architect/Engineer. If any term, condition, or provision of this Agreement is declared void or
unenforceable, or limited in its application or effect, such event shall not affect any other
provisions hereof and all other provisions shall remain.
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Your Clean Energy
Celebrate the Qower of naW re__rH
Page 1 of 3
September 11, 2018
John Foutz, Electric Utility Manager
City of Seward
P.O. Box 167
Seward, AK 99664
RE: Proposal For Engineering Services — Concept Design & Feasibility Evaluation — Lowell
Creek Hydro Project
Dear John:
This proposal is for the development of concept system design and preliminary economic
evaluation to support the installation of a small hydro electric system on Lowell Creek in
Seward, Alaska. This proposal is based on the following:
SCOPE OF WORK - Design Services for Concept Phase will consist of the following work
tasks:
Development of concept designs to support the installation of a run of river small hydro electric
project with intake at elevation @460 ft along Lowell Creek; and pelton wheel turbine near sea
level to generate grid power in Seward, Alaska. The concept design and associated economic
evaluation will be based on addressing the following:
How to safely divert year round stream flow into a settling / desander tank at elevation
460 ft without bringing in the bed load sediment during flood events. The solution may
be in part the installation of infiltration gallery French drain piping that collects flow from
under the stream bed, similar to what ASLC does for water collection along Lowell Point
Road. A self-cleaning coanda screen in the stream channel may also be part of the
intake solution. A de -sander settling tank could catch most of the fines that make it
through, and keep the erosion of stainless steel pelton wheel buckets to a minimum.
There will be a need to weld re -build the buckets periodically and spare pelton wheels
must be installed as part of ongoing maintenance.
How to route the buried penstock (range of 36 to 48 inch diameter) from the base of
Lowell Creek Canyon to a generator station location at shoreline that makes good
sense. The penstock could be routed straight down Jefferson Street and be sited in the
Waterfront Park campground area (creates a conflict of land use and continuous noise
issue); or the penstock could gradually bend 90 degrees to the south to a generator
plant adjacent to ASLC (may require some tunneling but probably a more suitable
location to generate power).
308 G Street #215, Anchorage, AK 99501 907-274-2007 www.yourcleanenergy.us
38
Your Clean Energy
Page 2 of 3
How to integrate the small hydro generation into the City of Seward electric grid in the
most simple and cost effective manner; how to design a hydro generation system that
will impart the lowest O&M cost and highest reliability, stability, and safety to the City.
Address the benefits and liabilities of operating the hydro when the City is isolated from
CEA transmission and is operating diesel generators. Address the benefits and liabilities
of shutting down the hydro plant when the stream reaches pre -flood and flood stages;
and re -starting the hydro plant once the flooding subsides.
• Based on the concept design above, update the Economic Evaluation first developed by
YCE in 2007 to determine a Opinion of Probable Capital Cost of the project; opinion of
what O&M costs to operate the hydro plant could be; and what the cost of power would
be to the City once the hydro plant is built and operating, assuming a conventional mix of
grants, bonding, sales revenue and other debt service structures.
LIMIT OF THIS EFFORT - It is understood that the above effort is at a concept level only and if
project feasibility is identified, would be followed up by a more detailed engineering evaluation;
exploration of the FERC permit path and costs; addressing the costs and path of navigation with
current Army Corps efforts regarding the Lowell Canyon Tunnel; the costs and paths of securing
other applicable state and federal permits; the cost implication of integration of the hydro power
with CEA who currently supplies power to Seward via long distance transmission; and other
relevant factors that may impact a hydro project operating year round on Lowell Creek.
DESIGN TEAM — Andy Baker PE of YCE will partner with and engage the services of Michael
Maloney, PE, Senior Systems Engineer with Canyon Hydro of Deming, WA to complete the
scope included herein. Mr. Maloney has extensive experience with intake and penstock design,
as well as pelton wheel generation plants and integration into local utility grids. Following the
site visit to Seward, Canyon Hydro will provide a deliverable Site Report with opinion of
technical feasibility for the preferred concept design. In addition, Canyon Hydro will provide an
extensive itemized cost opinion for the supply, shipping, and installation of the recommended
turbines, powerhouse piping, generators, switch gear, transformers, controls, etc, as needed to
furnish and operate a fully functioning grid tied small hydro system suitable for the stream flows
and pressure head available from Lowell Creek. The Site Visit Report and Cost Opinion
provided by Canyon Hydro will be integrated in the larger Economic Evaluation prepared by
YCE for the City.
ASSUMPTIONS — A single two day site visit will be performed with YCE and Canyon Hydro
staff at the start of this effort to gather information required for the concept design and feasibility
evaluation, including meeting with the Electric Utility Manager, and Public Works Director.
Following the site visit, YCE will be available via teleconference for discussions with the City. A
separate one day trip to Seward by YCE and Canyon Hydro is also included to present results
of the Economic Evaluation to City Council, PACAB, Administration and the public in a single
meeting of up to two hours that will include a Q & A session about the project.
308 G Street #215, Anchorage, AK 99501 907-274-2007 www.yourcleanenergy.us
K1]
Your Clean Energy
Celebrate the Qower of naW re__rH
Page 3 of 3
DELIVERABLES — There will be two submittal stages — Site Visit Report, and Economic
Evaluation. Economic Evaluation with concept design schematics and details will be submitted
in PDF format. A power point summarizing the Economic Evaluation will also be prepared and
presented at the final public meeting to conclude this work effort.
SCHEDULE - The following is a suggested schedule for executing the design work described
above:
Steps Description Date
I YCE & Canyon Hydro Staff Site Visit To Seward Oct 1-4, 2018
11 YCE & Canyon Hydro Site Visit Report Oct 26, 2018
III YCE Concept Design + Economic Evaluation Nov 16, 2018
IV YCE & Canyon Hydro Staff Present Results Dec 5, 2018
COMPENSATION — The 2018 billing rate for YCE staff is $170/hour for Andy Baker, PE. The
2018 billing rate for Canyon Hydro staff is $250/hour for Michael Maloney, PE. Canyon Hydro
will be a subcontractor to YCE and YCE costs will include a 10% mark-up on Canyon Hydro
invoices. An invoice for each completed phase of the work will be submitted when the
deliverable for that phase is submitted to the City. The fee to perform the above work will be
billed on a percent complete of the following fixed fee tasks:
Steps Description Fee
I YCE & Canyon Hydro Staff Site Visit To Seward $16,000
II YCE & Canyon Hydro Site Visit Report $26,000
III YCE Concept Design + Economic Evaluation $36,000
IV YCE & Canyon Hydro Staff Present Results $10,000
Total Compensation
$88,000
If you have any questions regarding the above scope, or our understanding of the work, please
feel free to contact me,
Sincerely,
Andy Baker, PE
Design Team Leader
YourCleanEnergy LLC
308 G Street #215, Anchorage, AK 99501 907-274-2007
www.yourcleanenergy.us
Sponsored by: PACAB
CITY OF SEWARD, ALASKA
RESOLUTION 2018-004
A RESOLUTION OF THE PORT AND COMMERCE ADVISORY BOARD
OF THE CITY OF SEWARD, ALASKA, PROVIDING A
RECOMMENDATION TO COUNCIL FOR PURSUIT OF ANDY BAKER'S
YOURCLEANENERGY LLC, PREDESIGN STUDY OF LOWELL CREED
AND MARATHON CREEK IN -STREAM HYDROELECTRIC PROJECTS
AS A SOURCE OF ALTERNATIVE ENERGY FOR THE SEWARD
ELECTRIC UTILITY
WHEREAS, the Seward City Council has tasked the Port and Comrerce Advisory Board to
research possible sources of alternative energy for the community; and
WHEREAS, future costs of fuel -based electricity are uncertain and this project offers a
potential to sell fixed -cost hydroelectric power profitably over time; and
WHEREAS, a diverse, stable, fixed -price energy supply is becoming a vital component of
economic health and independence; and
WHEREAS, hydroelectric power generated from, Lowell Creek may be feasible as
affordable, reliable and safe energy for Seward; and
WHEREAS, Andy Baker, P.E., d/b/a YourCleanEnergy LLC. has conducted a presentation
to perform a pre -design study of Lowell Creek to determine its feasibility to support a hydroelectric
generation facility; and
WHEREAS, while the proposed generation amounts of the project will not meet all of
Seward's needs, it will diversify our power purchase options; and
WHEREAS, the Port and Commerce Advisory Board find sufficient merit in the
presentation to recommend it to the City Council for consideration and funding.
NOW, THEREFORE, BE IT RESOLVED BY THE PORT AND COMMERCES
ADVISORY BOARD OF THE CITY OF SEWARD, ALASKA that.
Section 1. The Port and Commerce Advisory Board recommends the Seward City Council
undertake the necessary steps to make Seward's electrical future safe, secure, reliable and stable in
cost.
Section 2. The Port and Commerce Advisory Board recommends that the Seward City
Council empower Administration to negotiate a contract with YourCleanEnergy LLC for engineering
services and bring it back to Council for final approval.
:si
CITY OF SEWARD, ALASKA
RESOLUTION 2018-004
Page 2 of 2
Section 3. This :resolution shall take effect immediately upon its adoption and be provided to
Council at the next possible Council Meeting.
PASSED AND APPROVED by the Port and Commerce Advisory of Seward, Alaska, this 2" day
of May, 2018.
THE Y OF SEWARD, ALASKA
j�.
Darryl Schaefermeyer, Chair
AYES: Schneider, Terry, Andrews, Hughes, Schaefermeyer
NOES: None
ABSENT: Jaffa, Lawrence
ABSTAIN: None
ATTEST:
i 1r1.
EVA