HomeMy WebLinkAbout08142019 PACAB Packet City of Seward
Port and Commerce Advisory Board
Regular Meeting
64th Annual
SEWARD SILVER
SALMON DERBY
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August 10-18, 2019
Seward,Alaska
Wednesday, August 14, 2019
City Council Chambers Beginning at 12:00 p.m.
SEWARD PORT AND COMMERCE
ADVISORY BOARD
MEETING AGENDA
August 14,2019 12:00 p.m. Council Chambers
Christy Terry 1 . CALL TO ORDER
Chair
Term Expires 2022 2. PLEDGE OF ALLEGIANCE
Bruce Jaffa
Vice Chair 3. ROLL CALL
Term Expires 2021
Carl Hughes 4. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT
Board Member THOSE ITEMS SCHEDULED FOR PUBLIC HEARING
Term Expires 2020 [Those who have signed in will be given the first opportunity to speak. Time
is limited to 3 minutes per speaker and 36 minutes total time for this agenda
Colby Lawrence item.]
Board Member
Term Expires 2022 5. APPROVAL OF AGENDA AND CONSENT AGENDA
[Approval of Consent Agenda passes all routine items indicated by asterisk
Laura Schneider (*). Consent Agenda items are not considered separately unless a council
Board Member member so requests. In the event of such a request, the item is returned to the
Term Expires 2020 Regular Agenda]
Lynda Paquette 6. SPECIAL ORDERS,PRESENTATIONS AND REPORTS
Board Member A. Other Reports and Presentations
Term Expires 2021 1. Alaska Railroad Report by Christy Terry
Erin Lemas 2. Chamber of Commerce Report by Cindy Clock
Board Member 3. Harbormaster Report by Norm Regis ........... Pg. 3
Term Expires 2021 4. Administration Report by Brennan Hickok
5. Update from the Climate Action Plan Committee
Scott Meszaros
City Manager
Brennan Hickok
Assistant City Manager
Norm Regis
Harbor Master
Brenda Ballou
City Clerk
City of Seward, Alaska PA CAB Agenda
August 14, 2019 Page I
1
7. UNFINISHED BUSINESS —None
8. NEW BUSINESS
A. Resolutions
1. Resolution 2019-003, Recommending City Council Continue With The Seward
Chamber Of Commerce, Conference And Visitor's Bureau As The Designated Lead
Marketing Entity For The City Of Seward. (Terry) ..................................... Pg. 5
B. Other New Business Items
*1. Approval of the July 24, 2019 PACAB Meeting Minutes. ............................ Pg. 7
2. Review and discuss the results and findings of the Lowell Canyon Hydroelectric
Study. ....................................................................................... Pg. 11
3. Discuss the status of the city's Interconnect Policy. (Paquette)
4. Review and edit the draft advertisement for the September 24, 2019 Climate Action
Plan Community Meeting, and direct the clerk to place advertisement(s). Pg. 31
10. INFORMATIONAL ITEMS AND REPORTS (No Action Required)
A. PACAB 2019 Goal Calendar ........................................................... Pg. 32
B. PACAB Resolution 2019-01, PACAB Priorities from February, 2019 to February,
2020 ........................................................................................ Pg. 34
C. PACAB Meeting& Work Session Schedule for September, 2019 ................ Pg. 36
It. BOARD COMMENTS
12. CITIZEN COMMENTS
13. BOARD AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS
14. ADJOURNMENT
City of Seward, Alaska PACAB Agenda
August 14, 2019 Page 2
2
PACAB Report
July 31, 2019
Harbormaster Norm Regis
1. The Harbor has hired a new Harborworker II to replace the one who moved south so his wife
can finish her college education.
2. The transfer site has been working with the harbor on the increase of garbage that is being
dump at most of the harbor locations.
3. The 50 ton was down for one day doing routine maintenance,we are on our two year cycle to
replace the cables, change all the fluids in the gear boxes.
4. The 330 ton lift all the gear box fluids have been replaced, service the sheaves and changed the
hydraulic fluid.
5. We have received a lot of compliments on the new South harbor launch ramp.
6. Trying to finish up on the punch list for the South Harbor Launch ramp,just some fine tuning
mostly the as-builts and completion paperwork.
7. We are currently working with ADF&G to replace the North East Boat Launch Ramp,funding is
currently available through the same grant, waiting on the 2020 State budget to be approved.
8. The harbor is still preparing for the Salmon Derby which takes place from August 10 - 18t",the
chamber is still looking for volunteers.
9. The harbor met with the port of Port Angeles to look at and discuss the infrastructure at SMIC.
10. Picture attached of the first mishap on the South Launch Ramp.
3
PACAB Report
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Sponsored by: Terry
CITY OF SEWARD,ALASKA
RESOLUTION 2019-003
A RESOLUTION OF THE SEWARD PORT AND COMMERCE ADVISORY
BOARD RECOMMENDING CITY COUNCIL CONTINUE WITH THE
SEWARD CHAMBER OF COMMERCE,CONFERENCE AND VISITOR'S
BUREAU AS THE DESIGNATED LEAD MARKETING ENTITY FOR THE
CITY OF SEWARD
WHEREAS,the City of Seward implemented a 4%bed tax on January 1, 1996, and from
1996 through 2000,contributed varied amounts of the bed tax to the Seward Chamber of Commerce,
Conference and Visitors Bureau(Chamber)to fund specific activities,such as improvements to the
visitors' center, visitor brochure, feasibility study, convention center study, etc; and
WHEREAS,beginning in 2001,the Seward City Council agreed to split half of the budgeted
bed tax with the Chamber for the express purpose of providing marketing services on behalf of the
community; and
WHEREAS,beginning in 2002 the Seward City Council began basing the contribution to
the Chamber of half of the previous full year's actual bed tax collected; and
WHEREAS,since 2005,the City Budget has included an appropriation to the Chamber from
the second previous full year's bed tax revenue at 50%; and
WHEREAS,in 2013,Council reaffirmed its intent to have the Chamber continue as the lead
marketing entity, and to continue its intent to annually fund with half of the actual Bed Tax Revenue
from each second prior year; and
WHEREAS,the City's Strategic Plan and Comprehensive Plan clearly state the City's desire
to expand its business base and generate year-round employment; and
WHEREAS, the City obtains significant benefits from marketing efforts, both direct and
indirect, as demonstrated by the quality of life for the citizens of Seward and the surrounding areas,
as a direct result of a stable, vibrant, year round economy; and
WHEREAS, marketing is an important effort that must take place to achieve the goals of
attracting new business and industry, supporting and growing existing businesses, and increasing
customers coming to Seward; and
WHEREAS,the Chamber has the experience,professional contacts, and ability to provide
marketing services for the community, and the acumen to focus resources and target specific
marketing groups to react to changing markets and demands more efficiently and expertly than
PACAB or the City; and
5
CITY OF SEWARD,ALASKA
RESOLUTION 2019-003
WHEREAS, the Chamber provides monthly updates on activities to PACAB and works
collaboratively on items, such as the SMIC Relaunch; and
WHEREAS,PACAB recognizes that a coordinated marketing effort,to include the Chamber
at the community-wide level, is critical to a successful economy.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The Port and Commerce Advisory Board (PACAB) recommends City Council
continue with the Seward Chamber of Commerce,Conference and Visitors Bureau as the designated
lead marketing entity for the City of Seward.
Section 2. This resolution shall take effect immediately and be provided to Seward City
Council.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14t'
day of August, 2019.
THE CITY OF SEWARD,ALASKA
Christeffal Terry, Chair
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Brenda J. Ballou, MMC
City Clerk
(City Seal)
6
City of Seward,Alaska Port and Commerce Advisory Board Special Meeting Minutes
July 24, 2019 Volume 3,Page x
CALL TO ORDER
The July 24, 2019 regular meeting of the Port and Commerce Advisory Board was called
to order at 12:00 p.m. by Chair Christy Terry.
OPENING CEREMONY
Harbormaster Norm Regis led the pledge of allegiance to the flag.
ROLL CALL
There were present:
Christy Terry presiding, and
Bruce Jaffa Colby Lawrence
Laura Schneider
Lynda Paquette Erinri
comprising a quorum of the board; and
Norm Regis, Harbormaster
GeNeil Flaherty, Executive Liaison
Excused—Hughes, Lemas
Absent—None
CITIZEN'S COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED
FOR PUBLIC HEARING—None
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Jaffa/Lawrence) Approval of Agenda and Consent Agenda
Terry added an item under Other New Business to discuss having a meeting in August.
Motion Passed Unanimous Consent
Terry read the following approved consent agenda items:
Approval of the December 19, 2018 PACAB Regular Meeting Minutes.
Approval of the January 2, 2019 PACAB Regular Meeting Minutes.
Approval of the February 6, 2019 PACAB Regular Meeting Minutes.
Approval of the March 6, 2019 PACAB Regular Meeting Minutes.
City of Seward,Alaska Port and Commerce Advisory Board Special Meeting Minutes
July 24, 2019 Volume 3,Page x
Approval of the April 3, 2019 PACAB Regular Meeting Minutes.
Approval of the May 15, 2019 PACAB Regular Meeting Minutes.
SPECIAL ORDERS,PRESENTATIONS AND REPORTS
Alaska Railroad Report by Christy Terry
Chamber- of Commer-ee Report by Cindy Cleek
Harbormaster Report by Norm Regis
Administration Report by Brennan Hickok
UNFINISHED BUSINESS
Update on status of Community Meeting for the Seward Airport Runway Development
Terry said she wanted to make sure everyone was aware that there would be a meeting on
August 15, 2019 from 5:00 —7:30 p.m. at the K.M. Rae Building.
In response to Terry, City Manager Scott Meszaros said anyone could attend the airport
site visit on August 1, 2019 with the Alaska Department of Transportation representative.
NEW BUSINESS
Other New Business
Discuss and schedule a Stakeholder Community Meeting to move forward with work on
the Seward Climate Action Plan.
Terry reminded everyone that PACAB had created an ad hoc committee to address a
Climate Action Plan, and the committee's first recommendation was to host a public meeting to
introduce the concept and educate the community about what a climate action plan was, and to
identify the stakeholders involved in the process.
Schneider added that the committee wanted to include as many people or groups as
possible on the stakeholders list; she said the University of Fairbanks had conducted a semester-
long course on creating a Climate Action Plan for Fairbanks, and she wanted to reach out to ask
if they would conduct another course and have Seward be the focus.
Motion (Terry/) Schedule a Community Open House to
introduce the Seward Climate Action
Plan on September 24, 2019 at 6:30 p.m.
in the Community Room.
8
City of Seward,Alaska Port and Commerce Advisory Board Special Meeting Minutes
July 24, 2019 Volume 3,Page x
Motion Passed Unanimous
The Board scheduled committee meetings on August 7, 2019 and August 21, 2019 at 12:00 p.m.
in council chambers.
Discuss having a meeting in August.
The Board scheduled a regular PACAB meeting on August 14, 2019 at 12:00 p.m.
INFORMATIONAL ITEMS AND REPORTS
Congratulations to Deputy Harbormaster Matt Chase for achieving the International
Association of Maritime and Port Executives professional certification.
The Board also congratulated Assistant City Manager Brennan Hickok for achieving the
designation, as well.
PACAB Goals and Priorities
PACAB 2019 Goals Calendar
The Board scheduled a work session on September 4, 2019 and a regular meeting on September
18, 2019.
BOARD COMMENTS
Lawrence was pleased to be re-appointed to PACAB.
Jaffa had a good meeting with the city manager and was happy with the way things were
going. He enjoyed driving into Seward every morning and hoped to continue working
cooperatively.
Paquette appreciated the opportunity to serve on this board, and thought the work being
done was important.
Schneider congratulated Lawrence and Terry for being re-appointed to PACAB. She
asked that an update on the city's interconnect policy be provided at the August meeting, as well
as an update on the sewer and water rate and classification study.
Terry encouraged residents of Seward and the surrounding community to attend the
August 15, 2019 public hearing about the Seward airport. She thanked Jaffa and administration
for the work they did on moving the airport project forward. Terry stated she would be out of
state from August 1-7, 2019.
CITIZEN COMMENTS —None
9
City of Seward,Alaska Port and Commerce Advisory Board Special Meeting Minutes
July 24, 2019 Volume 3,Page x
BOARD AND ADMINISTRATIVE RESPONSE TO CITIZENS' COMMENTS—None
ADJOURNMENT
This meeting was adjourned at 1:05 p.m.
Brenda J. Ballou, MMC Christeffal Terry
City Clerk Chair
(City Seal)
The city clerk was not present for this meeting; the minutes were drafted from the audio recording.
10
CONCEPT DESIGN
AND
ECONOMIC EVALUATION
OF
LOWELL CREEK HYDRO PROJECT
TO PROVIDE CLEAN GRID ELECTRICITY
FOR
CITY OF SEWARD, ALASKA
FINAL REPORT COMPLETED JUNE 21, 2019 BY ANDY BAKER, PE
"Celebrate the power of nature"rM ... with YourCleanEnergy LLc
■ ■ 308 G Street#215, Anchorage ff 99501 907-350-2084 www.yourcleanenergy.us
TABLE OF CONTENTS
SCOPE OF CONCEPT DESIGN AND ECONOMIC EVALUATION.......................................................................................................3
LIMITATION IN SCOPE OF THIS CONCEPT DESIGN AND ECONOMIC EVALUATION EFFORT.....................................................3
SUMMARY AND CONCLUSIONS........................................................................................................................................................4
SUMMARY AND CONCLUSIONS(CONT'D)........................................................................................................................................5
INTRODUCTION...................................................................................................................................................................................6
ANTICIPATED BENEFITS TO THE CITY FROM LOWELL CREEK HYDRO PROJECT......................................................................6
COST OF POWER FOR CITY OF SEWARD-2019.............................................................................................................................7
EXISTING HYDRO-ELECTRIC FACILITIES.........................................................................................................................................7
HYDROLOGY.......................................................................................................................................................................................8
PROJECTED FLOWS BASED ON EXISTING DATA...........................................................................................................................8
PROJECTED FLOWS BASED ON EXISTING DATA(CONT'D)..........................................................................................................9
RUN OF RIVER COANDA STYLE INTAKE WITH BURIED INFILTRATION GALLERY.....................................................................10
RUN OF RIVER COANDA STYLE INTAKE WITH BURIED INFILTRATION GALLERY(CONT'D)....................................................11
PENSTOCK MATERIAL SELECTION................................................................................................................................................11
HYDRO-ELECTRIC ENERGY PRODUCTION....................................................................................................................................12
ESTIMATED HYDRO-ELECTRIC ENERGY BASED ON PROJECTED STREAM FLOWS................................................................12
HYDRO-ELECTRIC TURBINE EQUIPMENT SELECTION.................................................................................................................13
TURBINE HOUSE CONCEPT DESIGN..............................................................................................................................................14
TURBINE HOUSE CONCEPT DESIGN(CONT'D)..............................................................................................................................15
TURBINE HOUSE CONCEPT DESIGN(CONT'D)..............................................................................................................................16
EVALUATING HYDRO PROJECT COSTS VS BENEFITS.................................................................................................................17
OPINION OF PROBABLE CAPITAL COSTS—PROPOSED HYDRO-ELECTRIC PROJECT-2019.................................................17
OPINION OF PROBABLE PROJECT COST—PROPOSED HYDRO-ELECTRIC PROJECT-2019..................................................18
ESTIMATION OF PROBABLE ANNUAL COSTS—HYDRO-ELECTRIC FACILITY-2019................................................................19
OPERATIONS.....................................................................................................................................................................................19
WATERRIGHTS.................................................................................................................................................................................20
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12
LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 3 OF 20
SCOPE OF CONCEPT DESIGN AND ECONOMIC EVALUATION
1. 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:
2. How to safely divert year-round stream flow into a settling / de-sander 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 Alaska SeaLife Center does for water collection at the base of Bear Mountain along
Lowell Point Road. A self-cleaning coanda style 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 available for installation
as part of ongoing maintenance.
3. 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 Alaska SeaLife Center(may require some
tunneling but probably a more suitable location to generate power).
4. How to integrate the small hydro generation into the City of Seward electric grid in a 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 Chugach Electric Association (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.
5. Based on the concept design above, update the Economic Evaluation first developed by
YourCleanEnergy (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.
6. Produce deliverable Economic Evaluation report in PDF format that includes above items,
schematics, graphs, technical information, cost estimates, etc, in a simple easy to read format.
7. Make one public presentation in Seward to communicate the results of the evaluation.
LIMITATION IN SCOPE OF THIS CONCEPT DESIGN AND ECONOMIC EVALUATION 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 Federal Energy Regulatory
Commission (FERC) permit path and costs; addressing the costs and path of navigation with current Army
Corps (ACOE)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.
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13
LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 4 OF 20
SUMMARY AND CONCLUSIONS
A concept design for a small hydro-electric system has been developed for Lowell Creek in Seward, and
economic evaluation of that system has been completed. This effort was made because of the rapidly
increasing cost of fossil fuel electricity generation available to Seward; and because new technologies and
approaches are available that will increase the cost effectiveness of both design and construction of such
a system. It will be necessary for the City to begin an effort to gage the stream flow in the upper area of
Lowell Canyon (elevation 460 ft) since very minimal historic or recent data is available for this resource in
that location. Several years of flow data will be needed to confirm the resource for DNR and FERC permits,
and to fine tune the concept design and economic evaluation to reflect the anticipated stream flows.
The primary goal of the evaluation presented herein is to identify a small hydro-electric system that will
reliably collect stream flow year-round at elevation 460 feet up the Lowell Creek Canyon; transport that flow
down the canyon and thru City streets in a buried penstock to a turbine house close to sea level; and
produce affordable, reliable and safe electricity from a spinning turbine with a grid-tied synchronous
generator. Two alternative locations for the low elevation turbine house were considered.
Alternative A. The primary and least complex alternative is to route the penstock from the intake straight
down the right of way of Lowell Canyon Road and Jefferson Street, and locate the turbine house at elevation
26 feet in the existing 100 foot wide ROW in the Waterfront Park area.The stream intake would be designed
for a maximum of 60 CFS and consist of a surface flow diversion and coanda style surface screens. An
infiltration gallery upstream of the diversion with below grade French drain collectors would be included to
collect flow during low flow periods in winter. The penstock would be 42" diameter, 7,200 foot length, with
the upper portion HDPE material, and the lower portion welded steel. In Lowell Canyon, the penstock
would be buried below a benched gravel access road routed along the north side of the canyon, with sheet
piling and large rip rap to protect against seasonal flooding. The penstock would pass thru the north end
of the existing concrete diversion dam, adjacent to the existing Marathon Creek hydro plant. The penstock
would then be routed down the right of way of Lowell Canyon Road and Jefferson Street to a low profile
turbine house located adjacent to existing seasonal RV and tent camping areas. Electricity from the turbine
generator would be synchronized with the City's 12.5 KV distribution system; and connected to the grid at
a power pole across Ballaine Avenue. The tail race of the turbine house would allow flow to drain from the
turbine into a buried concrete box culvert tailrace extending to a submerged outlet to be located adjacent
to the historic wood flume at beach elevation.
Alternative B. A second option for the turbine house location alternative was adjacent to the Alaska SeaLife
Center (ASLC) on University of Alaska Fairbanks (UAF) property. This alternative was not pursued to
concept design or economic evaluation. It proved to be very complicated and problematic due to: multiple
sharp bends in penstock alignment required; crowded utility corridors in narrow streets and alleys; and
acquisition of University property and associated easements that would be required for both the penstock
and turbine house. It is the preference of the City to keep as much of the proposed hydro-electric system
within City land and within City R.O.W. as possible; this alternative does not afford that preference.
Alternative A was developed to the level of concept design and economic evaluation.This concept suggests
a maximum turbine generator capacity of 1.8 MW (@60 CFS flow); and estimated annual electricity
production of 9,202,000 KWH. This would satisfy approximately 15% of the City's current grid electricity
needs. The hydro-electric system would cost approximately $17.9 million to build (in 2019 dollars); and
produce electricity at about$0.1139 per KWH (if built in 2019). The stream intake and upper portion of the
penstock would be constructed with permits on DNR land. Access to the upper portion of the system would
be by new gravel road on the north side of the canyon. The lower portion of the penstock, the turbine
house, and the tailrace would be constructed on City land. Electricity would flow directly into the City
distribution system without transmission line loss. The turbine house would be easily accessed for
monitoring and maintenance via the existing Waterfront Park access roads. Waste heat from the turbine
house could be used as valuable source energy for the ground source heat pump system planned for the
City Library. Extra expense and design consideration will be required to prevent noise from the turbine
house and tailrace from disturbing summer campground use. This concept can be further refined and
improved once a stream flow gage is installed in the upper canyon and monitored for at least two years.
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14
LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 5 OF 20
SUMMARY AND CONCLUSIONS (CONT'D)
For the purpose of this concept level evaluation, a simplified schematic of Alternative A with the proposed
stream intake, penstock, and turbine house with outfall to Resurrection Bay is shown below:
■ PROPOSED ►
TURBINE HOUSE AX9
WITH OUTFALL
PROPOSED #
42' DIAMETER
PROPOSED PENSTOCK Seward
RUN-OF-RIVER
INTAKE
r. D N R
LAND CITY LAND
e° L LL CREEK
DRO PROJECT
COMPILED BY
ANDY BAKER,PE
Cente�Township. ' 1" ,R'„,t a u=u JAN 10,2019
Alternative A: This design concept affords the straightest penstock alignment and greatest elevation drop
(from 460 ft elevation at stream diversion to 27 ft elevation at turbine house). Red circles on the map
indicate the location of water rights already secured by the City of Seward.
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15
LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 6 OF 20
INTRODUCTION
On September 11, 2018, the City of Seward secured the services of YourCleanEnergy (YCE)to prepare a
Concept Design and Economic Evaluation to support the installation of a run of river small hydro-electric
project with intake at elevation @460 ft along Lowell Creek; and a pelton wheel turbine generator near sea
level to generate grid power in Seward, Alaska.
On February 29, 2019 the City of Seward secured the services of YCE for engineering time anticipated with
on-going coordinating for compliance with following state/federal agencies: Alaska Department of Natural
Resources (DNR); Alaska Department of Fish & Game (ADF&G); Army Corps of Engineers (ACOE); and
Federal Energy Resource Commission (FERC). The coordination is required for initial permits, meetings
and information exchange to support the development of a small hydro-electric system on Lowell Creek for
the City. This coordination time effort is additional to the YCE proposal of September 11, 2018 to perform
a concept design and economic evaluation for the same project.
BACKGROUND
This evaluation reflects that fact Seward already had operational experience with small hydro from Lowell
Canyon from 1905 to 1938; and with the nearby Marathon Creek Hydro Project for several years in the mid
1980's. In 2019,the residents of Seward are very interested in slowing the rate of increase in grid electricity
cost by supplementing their energy needs with cost effective small hydro. Lowell Creek remains one of the
closest small hydro resources to the City of Seward; it has a steep drop in grade within the City limits from
elevation 460 feet to sea level; and no fish species are present in the drainage. The waterfall outflow from
the tunnel thru Bear Mountain is visible year-round to all who travel the road to Lowell Point.
Acknowledgements. YCE would like to thank City Council, City Electric Department, and City
Administration in Seward for taking this long awaited step towards developing a local hydro-electric project
that taps the powerful and lucrative natural energy resource that is Lowell Creek. The support for this
project by customers of the Seward electric system and greater community is also acknowledged.
ANTICIPATED BENEFITS TO THE CITY FROM LOWELL CREEK HYDRO PROJECT
• The City of Seward develops its own source of affordable, reliable and safe electrical power— to
hedge off the increasing cost of CEA power generated primarily from fossil fuel sources — and to
distribute the energy without transmission line loss.
• Electrical costs in Seward will be reduced and stabilized over the 40 year project life with local
hydro-electric power, especially if a majority of the project capital costs are funded by state and
federal grants.
• The City will have a reduced cost in standby / emergency power generation when local hydro-
electricity is available. Every unit of hydro-electric energy produced can offset expensive fuel
consumption by the City's back up diesel generators.
• Hydro-electric power does not have the liability of pollution, and low impact run-of-river hydro-
electric projects like the proposed one herein on Lowell Creek are typically very favorable to the
public and state / federal agencies. Additionally, Lowell Creek has no fish species in the canyon
drainage.
• The City of Seward will be eligible for federal and/or state appropriations and/or grants for clean
energy projects —once DNR & FERC permits are applied for, and in an active status.
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16
LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 7 OF 20
COST OF POWER FOR CITY OF SEWARD -2019
The City of Seward currently has a Certificate of Convenience with the Regulatory Commission of Alaska
(RCA) to operate its own electricity generation and distribution system. The primary source of energy for
customers is long distance transmission delivered under a wholesale contract from Chugach Electric
Association (CEA). CEA generates electricity primarily at their combined cycle natural gas facilities, with
about 10% of total generation coming from large hydro-electric plants along the Railbelt.
In recent years, the wholesale cost electricity from CEA has increased aggressively due to CEA's rate
increases and fuel surcharges. The single long-distance transmission line that serves the Seward area
remains vulnerable to interruption by seasonal avalanches. There also remains a section of 69KV
transmission line supplying Seward that is undersized and imposes a line loss of up to 9% for every KWH
purchased by the City from CEA. According to the City Electric Department, the City currently purchases
CEA generation via long distance transmission at average wholesale price of approximately$.108 / KWH.
It would be advantageous for the City to generate grid electricity with local hydro, if that local hydro was
close in price to CEA's current wholesale price. Because the fuel for hydro-electricty is free and most
annual cost components are fixed over the life of the project, the cost of local hydro-electricity will become
increasingly attractive over the life of the project.
In the event the City electric system becomes isolated from the CEA transmission due to avalanche or other
event, the City must rely solely on its own Fort Raymond 15 MW diesel generation plant for standby
generation. According to the City Electric Department, the cost of the City's diesel generation is typically
in the range of $0.30/KWH. This high cost is due to fuel costs, labor costs, and emission requirements
imposed by the federal government thru the Environmental Protection Agency (EPA).
The City of Seward has a contract to directly purchase 1% of Bradley Lake hydro-electric generation at a
wholesale price of approximately $.045 / KWH. This is a very low and attractive price for clean electricity
on the Railbelt, however this allocation from Bradley Lake cannot be increased under the current contract.
EXISTING HYDRO-ELECTRIC FACILITIES
There are several components of the 1923 Seward Power& Light hydro-electric system that still remain in
Lowell Canyon; none of these are still operational or useful. The reinforced concrete intake structure that
was used from 1923 thru 1938 remains intact and in fair condition on bench above the stream channel in
the upper canyon at approximate elevation of 450 feet. Stream flow was diverted into a shallow channel
upstream of the structure; this flow then passed into a serpentine channel tank within the structure that
ensured a water level above the three steel penstocks that exited the structure. Gravel, silt and debris were
filtered and settled to a great extent within the tank of the structure, and the water flowed down the canyon
in a single steel penstock that was suspended above grade level with wooden structural supports. In
practice, the operators of that time period encountered challenges with flood stage gravel inundation of the
intake structure; low surface flows in winter; and occasional ice formation on the interior walls of the
penstock. The penstock terminated downstream in a concrete powerhouse that was located close to the
intersection of Jefferson Street and 7th Avenue.This concrete powerhouse was heavily damaged by several
large flood events that occurred in the period of 1923 thru 1938; these floods exceeded the capacity of the
wooden flume channel that existed at that time down the Jefferson Street corridor.
In addition to the concrete intake structure, heavily corroded sections of the old steel penstock can still be
found at grade level down slope from the intake structure, and in scattered locations along the stream bed.
The vertical support members have long rotted away; many of them were removed by the floods, landslides
and snow slides that have occurred since this system was decommissioned in 1938. In credit to the
designers of the 1923 intake structure, they identified a location that has remained free of landslides, snow
slides, and flood waters for nearly 100 years. Tall trees and thick brush have established in the immediate
area around the structure, this vegetation has stabilized the native soils and slopes in the same area. This
location at elevation 460 feet remains today the most ideal for collecting the maximum stream flow from
Lowell Creek at the highest elevation within the City limits of Seward.
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LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 8 OF 20
HYDROLOGY
The Lowell Creek canyon has a drainage area of approximately 4 square miles that is predominantly steep
grade slopes that include significant snow fields into summer months at higher elevations. The steep
sloping canyon walls have exposed layers of soft silty graywacke gravel that are easily eroded during flood
events, transporting significant volumes of this same silty gravel down the canyon and thru the existing
concrete tunnel thru Bear Mountain. The bottom of the stream channel consists of heavily weathered hard
metamorphic bedrock shelves and large loose boulders. The variation of natural stream flow in Lowell
Creek is significant between cold winter months when surface flow may freeze; and the heavy and extended
rainfall and runoff events that typically occur each year in the months of September and October.
With the advent of a warming climate and ever changing and unusual weather patterns in recent years, the
streams flow in Lowell Creek is anticipated to be different in current years than was last measured by USGS
1965 thru 1968, and 1991 thru 1993, with a gage at the tunnel outlet. USGS re-installed a flow gage on
the tunnel outlet in April 2019 and the flow data is available on-line. However, the hydrology that is most
significant to the hydro-electric project proposed herein is the stream flow that occurs in the upper canyon
at elevation 460 feet where a new intake would be located. There is no available stream flow data for this
location from past or current years. A primary conclusion of this evaluation report is that it will be
necessary for the City of Seward to establish a stream gaging station on Lowell Creek at elevation
460 feet; and monitor this flow for a continuous period of at least two years. From this new flow
data,a more accurate duration curve can be developed to refine the proposed hydro-electric system
design, and to secure the necessary water allocation permit from Alaska DNR.
PROJECTED FLOWS BASED ON EXISTING DATA
The most recent duration curve available that is based on stream gage flows in Lowell Creek can be found
in the Feasibility Study completed in 1979 by CH2M-Hill. The duration curve presented in this study was
based on flow measured at the tunnel outlet, and not at any higher elevations. No known gaging of stream
flow has been done at the upper canyon intake before, during or since the time of the 1979 study.
1979 Study also suggested that approximately 60% of the surface flow observed at elevation 460 feet could
be lost to the underground gravel aquifer before it ever reaches the tunnel entrance. This suggestion was
based on a single set of flow estimations taken at the same time at elevation 460 feet and the tunnel outlet.
Further measurements of surface and sub-surface flows are needed for a continuous period of several
years in order to confirm the presence of underground flow in the porous gravel of the creek bed. Such
measurements would also confirm whether some of this underground flow can be intercepted year-round
with an infiltration gallery to supplement a surface screen intake for hydro-electric power production.
For this evaluation, the 1979 duration curve was extrapolated to include additional underground flow based
on estimates provided in the same 1979 study. This extrapolated duration curve suggests that it may be
possible to collect at elevation 460 feet an average of 40 CFS flow for up to eight months of the year; an
average of 10 CFS flow for up to two winter months of the year; and an average of 50 CFS flow for up to 2
months in late summer and early fall. The maximum flow thru the intake system, 7200 foot long penstock,
and turbine house would be 60 CFS.
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LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 9 OF 20
PROJECTED FLOWS BASED ON EXISTING DATA(CONT'D)
A duration curve was developed and included in the 1979 Lowell Creek Feasibility Study prepared by
CH2MHill. This curve was for stream flow measured at the Bear Mountain tunnel outlet. The 1979 Study
also suggested that 60% additional flow may be available in the upper canyon at elevation 460 feet due to
the fact that a significant portion of the stream flow seeps down through porous alluvial gravel before it
reaches the tunnel entrance.
For the purposes of this evaluation, a more conservative estimate of 50% additional flow at elevation 460
ft was used, and the duration curve was extrapolated accordingly. The best way to confirm and update
this duration curve is to gather and compile several years of current flow data at elevation 460 feet. This
flow data is also needed to secure the necessary DNR water rights permit to divert stream flow at this
location.
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LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 10 OF 20
RUN OF RIVER COANDA STYLE INTAKE WITH BURIED INFILTRATION GALLERY
The method of collecting stream flow from elevation 460 feet in the upper canyon proposed in this concept
design consists of two independent systems. The first is to construct a stream diversion that will direct
surface flow over a series of parallel coanda style runoff river intake screens. These screens allow a portion
of the surface flow to pass thru the screen area and fall into a collection box that keeps water level above
the penstock entrance. Under low to moderate flows, these screens are self-cleaning because that portion
of the flow that passes over the screen surface will carry with it gravel and debris that may otherwise come
to rest on the screen. However, during very low flows and cold winter conditions, these surface screens
are prone to frazil ice formation which often blocks the openings thru which water can pass. During these
low flow winter months, it appears more advantageous to collect some portion of the flow needed for a
hydro-electric facility from warmer water found flowing below grade.
The second method of collecting stream flow that is considered in this concept design is to install a French
drain style infiltration gallery that is located upstream of the surface screens, and adjacent to the stream
bed. It appears that warmer water that is migrating underground thru the gravel stream bed can be
intercepted in a flow range of 10 to 20 CFS during winter months. Collection of this flow could allow the
hydro plant to remain operational at part load flows when the surface water and coanda style screens are
prone to freezing.
A recent aerial photo of the project site, showing proposed intake location, is shown below:
Lowell Creek Intake Concept
to yo-.hyJFo 2.n 9
,I
Proposed Intake L ocation t
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LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 11 OF 20
RUN OF RIVER COANDA STYLE INTAKE WITH BURIED INFILTRATION GALLERY(CONT'D)
LAM
Fihr Aid BSmas I _
Rpdne
,-Infiltration Galley
Sluice Gates
!1 Intake Screens
Existing Ciaek Pond
Penstock
Lowell Creek Intake Concept
Canyon Hydro-21812019
A conceptual illustration of the proposed two-part intake system at elevation 460 feet is shown above. The
infiltration gallery will collect underground flow at an elevation above that of the surface screens.
PENSTOCK MATERIAL SELECTION
The proposed hydro-electric system concept design includes a 42-inch diameter penstock of 7,200 foot
length. This diameter is proposed to keep friction and hydraulic losses less than 15% of the total available
elevation head at the maximum flow of 60 CFS thru the penstock . The following pipe material is considered
for the project at this time:
High Density Polyethylene (HDPE): the flexibility of this pipe material, along with the option of field fused
joints, make this an ideal pipe material for the upper portion of the penstock alignment. To reduce
construction time, long sections of the penstock can be pre-assembled in the field, then dragged into the
excavation trench. This pipe material is very smooth wall and ensures low friction loss over long distances.
Additionally, this pipe material is highly resistant to corrosion and abrasion. However, the pressure class
of the pipe is also limited due to the lower tensile strength of HDPE, and accordingly this material can only
be used in higher elevation section of the penstock where static pressure and surge pressures will not
exceed the safety factor of the pipe material.
Welded Steel: the high tensile strength of this material, and competitive cost, make this material an ideal
choice for the lower elevation portion of the penstock. The pressure class of the welded steel pipe will
increase as the static head increases down the penstock, up to the connection with the pre-fabricated
turbine assembly in the turbine house. This pipe requires straight alignment due to very limited flexibility at
joints; and may also require a cathodic protection system to prevent long term corrosion of the pipe material.
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LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 12 OF 20
HYDRO-ELECTRIC ENERGY PRODUCTION
• Initial turbine sizing would be one vertical shaft five jet pelton wheel, rated for 60 CFS flow = 1.8
MW capacity.
• During low flow periods in winter, the turbine can be run as low as 10% of rated capacity and still
produce stable grid power (6 CFS = 0.18 MW= 180 KW).
• A below grade infiltration gallery upstream of the surface screen intake may allow continuous
minimum winter flows of 10 CFS, enough to keep one turbine running from December through
March and keep intake box and penstock from freezing.
Hydro Power= Elevation Drop x Flow Thru Turbine
specifically:
Theoretical Power (kW) = HEAD (feet) x FLOW (cfs)
11.81
Actual power must account for:
Energy losses thru screen intake & collection channel
Energy losses thru penstock, bends, valves, nozzles
Energy losses in turbine, shaft, drives, generator, wiring
ESTIMATED HYDRO-ELECTRIC ENERGY BASED ON PROJECTED STREAM FLOWS
The quantity of hydro-electric energy (KWH) that could be produced annually from the proposed concept
design can be estimated as follows:
Total head available above sea level =460 ft elevation
minus screen intake loss (5 ft), minus friction loss in (35 ft)
minus tailrace drop to sea level (15 ft) = @405 ft net head
Hydro mechanical/electrical system efficiency (turbine to grid)
= 92% (turbine) x 96% (alternator)x 96% (grid tie) = @84.7%
- For 8 months avg flow @ 40cfs = 6,692,300 KWH
- For 2 winter months, avg flow @10cfs = 418,300 KWH
- For remaining 2 months, avg flow @ 50cfs = 2,091,400 KWH
---------------------
ESTIMATED ANNUAL HYDRO-ELECTRIC ENERGY = 9,202,000 KWH
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LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 13 OF 20
HYDRO-ELECTRIC TURBINE EQUIPMENT SELECTION
The net head available at the turbine house for the proposed project is approximately 405 feet. With a
design flow of 60 CFS, the ideal turbine selection would be a single five jet vertical pelton wheel turbine
system. These turbine systems are currently available for Alaska projects through both Canyon Hydro of
Deming, Washington; and Gilkes Hydro (UK)who have offices in the Seattle area.
The pelton wheel is a high efficiency impulse turbine that converts kinetic energy from one or more high
pressure water jets into rotation of the turbine wheel. The water jet is split by a knife edge divider between
two stainless steel buckets that can absorb over 90% of the kinetic energy from the water jet. Pelton wheel
turbines with multiple jets are capable of producing stable grid electricity with flow as low as 10% of their
rated capacity. A five jet vertical pelton system would allow the Lowell Creek Hydro turbine to stay
operational in winter months with flows from the upper canyon as low as 6 CFS.
High efficiency Pelton wheel turbine with stainless steel split bucket design
-,-•ter--
w
:
Five jet vertical pelton wheel turbine system installed (photo courtesy of Canyon Hydro)
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LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 14 OF 20
TURBINE HOUSE CONCEPT DESIGN
The east end of Jefferson Street continues an existing 100 foot wide right-of-way into the RV and tent
camping area that is managed by the City's Parks and Recreation Department. This corridor is clear of
utilities or permanent structures with the exception of an existing 24" drain culvert that parallels Jefferson
Street, and the remains of the historic wooden/steel flume from the late 1930's still located on the beach.
The proposed 42" penstock could be routed straight down Jefferson Street to a new turbine house located
between the two camping areas. This location affords the maximum drop in elevation from the upper
canyon to sea level; the floor level of the proposed turbine house would be approximately +27 ft. The
proximity to campers and recreational visitors would require that the turbine house and tailrace structures
be heavily insulated to prevent turbine noise from migrating out from these structures.
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LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 15 OF 20
TURBINE HOUSE CONCEPT DESIGN (CONT'D)
The Jefferson Street R.O.W. corridor is 100 feet wide through the Waterfront Park area to the edge of
Resurrection Bay. It appears feasible to locate the turbine house for the hydro-electric project within this
R.O.W. without significant modification of the City's existing RV and tent camping activities. Flow leaving
the turbine house would be routed straight down to the ocean in a below grade insulated tailrace with
submerged outlet below low tide level. This design approach would afford the greatest sound mitigation
and provide safe discharge of turbine house flow in an area heavily used by visitors and residents.
100 FT ROW
EXTENDED INTO
CAMPGROUND POWER HOUSE,FLOOR ELEV+27 FT
HISTORIC WOOD
FLUME!IRON
TURBINE RAILS REMAINS y
42"PFNSTOCK ASSEMBLY 48"OUTFALL 1`
EXISTING 24"CMP STORM DRAIN
W16"INSULATION AND 36"CMP JACKET COMBINED OUTLET
TO OCEAN
COMPILED BY ANDY BAKER 1212118
Leger
A turbine house located in the Waterfront Park allows for a straight penstock alignment down Jefferson
St; maximum elevation drop for energy production; and safe and easy access to the turbine equipment.
32 FT X 40 FT HYDRO TURBINE HOUSE
CONCEPT FLOOR PLAN
HYDRO
CONTROL
PAD PANELS
MOUNTED V 4160
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TRANS- FIVE.JET �.
FORMER VERTICAL — —.
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LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 16 OF 20
TURBINE HOUSE CONCEPT DESIGN (CONT'D)
The proposed turbine house concept design is one that presents an attractive, low profile, and well insulated
structure that can integrate into the existing campground area with minimal visual and operational impact.
The pad-mounted step up transformer would be enclosed in an attached shed structure on the west side
of the turbine house. The primary access door to the turbine house would be on the east (ocean) side,
along with site parking for utility staff. The entire turbine house and subsurface concrete tailrace would be
heavily insulated to mitigate turbine noise. Below are renderings that show the proposed turbine house
design concept when placed into site photos of the City right-of-way of Jefferson Street:
�Ln l I`1
Looking east across�Ballaine Avenue. (Site photo and rendering by YourCleanEnergy LLC).
0.
r
il
Looking west from Waterfront bike path. (Site photo and rendering by YourCleanEnergy LLC).
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LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 17 OF 20
EVALUATING HYDRO PROJECT COSTS VS BENEFITS
The proposed hydro-electric project concept can be evaluated in two fundamental ways:
A. Life Cycle Cost (how many years to fully pay back initial capital investment?)
B. Annual Energy Cost ($ per kwh over the anticipated project life)
Typically, once a hydro-electric power resource is developed,the projects are run as long as the community
can maintain them, often more than 50 years.
What will be most important to the City of Seward is to keep the annual energy cost of hydro-electric energy
as low as possible to stabilize overall grid power costs. The Lowell Creek Hydro Project, if built, is
anticipated to have a 40 year project life. Therefore, in this evaluation, the method of Annual Energy Cost
is used to evaluate the proposed concept design.
OPINION OF PROBABLE CAPITAL COSTS— PROPOSED HYDRO-ELECTRIC PROJECT- 2019
An itemized breakdown of anticipated project construction components is given below:
Construction Phase Component Cost Opinion
DNR land lease and land easements $ 40,000
Access road to new intake site at elevation 460 feet $ 616,000
Stream diversion, intake screens and collection channel $ 500,000
Groundwater Infiltration gallery piping and collection $ 300,000
Penstock (7,200ft x 42 inch dia), including selected buried utility relocations $ 5,120,000
Turbine House/power plant building $ 1,800,000
Turbine and generator equipment $ 1,500,000
Electrical control equipment $ 300,000
Miscellaneous power plant equipment $ 84,000
Pad Mounted 4160 V/ 12.5 KV Transformer $ 40,000
Buried conductors and devices $ 60,000
Overhead conductors and devices $ 60,000
Communications equipment $ 80,000
Insulated concrete culvert tailrace and submerged ocean outfall $ 500,000
CONSTRUCTION SUB-TOTAL $11,000,000
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LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 18 OF 20
OPINION OF PROBABLE PROJECT COST—PROPOSED HYDRO-ELECTRIC PROJECT-2019
The following are components included to estimate the total project cost:
CONSTRUCTION COST SUB-TOTAL $11,000,000
CONTINGENCY AND UNLISTED ITEMS (15%) $ 1,650,000
---------------
TOTAL DIRECT COST $12,650,000
INDIRECT COSTS: TEMP FACILITIES, BOND, INSURANCE, OHEAD (17%) $ 2,150,500
---------------
TOTAL CONSTRUCTION COSTS $14,800,500
ENGINEERING, LEGAL, ADMINISTRATION (15%) $ 2,220,100
NET INTEREST DURING CONSTRUCTION (6%) $ 888,000
---------------
TOTAL HYDRO-ELECTRIC PROJECT COST $17,908,600
The project will become financially attractive to the City Of Seward with the assistance of grant funds to
offset the initial capital cost. The project has a high public benefit and profile and represents a positive step
forward for the City to produce a portion of its power from renewable energy. Therefore, both state and
federal grant agencies may show interest in supporting the project when political will for the project is clearly
expressed by the community. These grant funds will reduce the amount of general obligation bond that the
City will have to issue to supplement the available state and federal grant funds. This evaluation includes
an opinion of probable grant funding in order to arrive at an estimated bond issue amount,which in turn will
determine the estimated cost of producing hydro-electric power from the project.
TOTAL HYDRO-ELECTRIC PROJECT COST $17,908,600
LESS STATE (@$5 MILLION) AND FEDERAL (@$6 MILLION) GRANT FUNDS ($11,000,000)
-------------------
TOTAL INVESTMENT BY CITY OF SEWARD $ 6,908,600
CITY OF SEWARD BOND ISSUE (110% OF TOTAL INVESTMENT) $ 7,600,000
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LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 19 OF 20
ESTIMATION OF PROBABLE ANNUAL COSTS— HYDRO-ELECTRIC FACILITY -2019
CITY OF SEWARD BOND ISSUE (110% OF TOTAL INVESTMENT) $ 7,600,000
INTEREST &AMORTIZATION (40 YEARS @ 4% INTEREST RATE) $ 383,770
INTERIM REPLACEMENTS (1.0% OF TOTAL CONSTRUCTION COSTS) $ 148,000
INSURANCE (0.4% OF TOTAL CONSTRUCTION COSTS) $ 59,200
OPERATION AND MAINTENANCE $ 320,000
ADMINISTRATIVE AND GENERAL (50% OF O&M COSTS) $ 160,000
LESS INTEREST EARNED ON RESERVE FUNDS (@ 6%) ($ 23,000)
---------------
TOTAL ANNUAL COSTS $ 1,048,000
TOTAL KWH PRODUCED PER YEAR (FROM PREVIOUS SECTION): 9,202,000 KWH
ANNUAL ENERGY COSTS =TOTAL ANNUAL COSTS/KWH PER YEAR: $ 0.1139 /KWH
OPERATIONS
The proposed hydro-electric system concept design is a run-of-river type system that includes no
impoundments for high elevation storage. It would provide no storage for daily peaking operation. The
hydro-electric turbine generator cannot operate when penstock flow is lower than 10% of the rated flow
capacity of 60 CFS. It is anticipated that the hydro-electric turbine may need to be taken off-line during
flood events when the stream flow exceeds 75 CFS as the bed load of silt and gravel in Lowell Creek during
these short-term events can be destructive to intake surface screens. It is also anticipated that there may
short periods in mid to late winter of some years when the total stream flow may not be greater than the
minimum 6 CFS required to keep the hydro-electric turbine operating. This is again why it will be necessary
for the City to collect flow data on the stream for several years at the proposed intake location at elevation
460 feet. With a warming climate and changing winter temperatures, rainfall, and snow melt patterns,
having current flow data will give more accurate indication of the expected frequency of both flood events,
and periods of low flow in winters.
Periodic inspection and cleaning of debris from the intake diversion channel,surface screens, and collection
box will be part of the operation of the proposed hydro-electric system. The gravel access road in the upper
canyon will pass thru several slide areas that will likely require some clearing and re-grading with heavy
equipment each year. In the turbine house, the high velocity jet nozzles and pelton wheel will experience
accelerated abrasion from fine glacial silt particles suspended in the flow that cannot be screened or settled
out. Replacement of the turbine wheel every five to eight years is anticipated, the worn turbine wheel can
be factory repaired by weld re-building of the stainless steel buckets. The synchronous generator will
require regular inspection and lubrication, similar to most other large three phase grid tied generator units.
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LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 20 OF 20
WATER RIGHTS
The proposed concept design for a hydro-electric system includes a stream diversion and intake at
elevation 460 feet in Lowell Canyon. This intake location lies on a parcel of land owned by Alaska DNR
that lies within the City limits. The primary agency for adjudicating water rights for this intake location is the
Water Resources Section of the Alaska DNR. Conversations with YCE and DNR regarding water rights for
the City for this hydro-electric project began in February of 2019.
On March 14, 2019, with assistance from YCE, the City submitted an "Application for Water Right"to DNR.
This application requested an allocation for diverting up to 75 CFS into a penstock at elevation 460 feet,
and release of the same flow into Resurrection Bay at the east end of the Jefferson Street corridor.
On March 27, 2019, DNR Water Resources Division advised that the City's "Application for Water Right"
had been received, and advised that the following additional information is required from the City to fully
complete the application for water right for the proposed intake at elevation 460 feet:
"Provide a hydrologic study(of Lowell Creek at elevation 460 feet) as the requested water
quantity is more than 100,000 gallons per day from a stream."
"Provide documentation in the form of a Lease, Easement, Deed, or notarized and recorded
Water Use Agreement, which authorizes access to requested water resource as the
requested water resources is not located within the boundaries of the property where the
water is to be used."
"Provide a copy of an executed deed, lease agreement, or other possessory interest
document showing ownership of, or authorization to use, the property where the water will
be used."
A copy of the March 27 2019 letter from DNR Water Resources Section confirming the City's "Application
for Water Right" is a included at the end of this evaluation report.
Conversations with DNR since the time of the "Application for Water Right" was made have expanded
understanding of the scope of hydrologic study that DNR will accept for this stream diversion at elevation
460 feet. A gaging station is to be established to collect stream flow for a minimum period of two years at
the proposed 460 feet elevation intake. An additional suggestion has been made by DNR to install and
monitor several groundwater wells in the location where an infiltration gallery could be located, also for a
period of two years. This data can be used to develop a new duration curve that reflects the current climate
conditions for the Lowell Creek drainage area. Stream flow data collected from elevation 460 feet can be
compared to that collected by USGS at the Bear Mountain tunnel outlet to determine how much stream
flow is typically lost to the alluvial gravel stream bed before entering the tunnel.
In conclusion, it will be in the best interest of the City to engage the USGS, or other qualified professional
and experienced hydrologist to begin the necessary stream flow and underground water table
measurements at elevation 460 feet in the upper canyon of Lowell Creek. A two year hydrologic study is
anticipated to cost in the range of$60,000 to $100,000 depending on the equipment that is used, and the
frequency of flow and water level measurements.
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.06
PORT & COMMERCE ADVISORY BOARD
COMMUNITY OPEN HOUSE
on
SEWARD CLIMATE ACTION PLAN
NOTICE IS HEREBY GIVEN that there will be a Community Open
House sponsored by the Port& Commerce Advisory Board to introduce the
concept and identify stakeholders involved in the process:
Tuesday, September 24, 2019
Seward Community Library, Community Room
6:30 p.m.
All public is invited.
The Seward Community Library is located at 239 Sixth Avenue in Seward, Alaska.
POSTED: [DATE]
City Hall bulletin board
U.S. Post Office
Harbormaster's Building
Seward Community Library Museum
31
Port & Commerce Advisory Board
2019 GOALS CALENDAR
DATE SUGGESTED AGENDA ITEMS
January 2 • Review and discuss RES 2019-01 PACAB priorities
Meeting • Review and discuss RES 2019-02 Seward Rate Study
January 22 • Joint work session with P&Z commission
Work Session
February 6 • Presentation by Justin Sternberg, Seward Blue Pipeline Manager
Meeting . Discuss Commercial Fishing Trawler Fleet impact on Seward
• Discuss the follow up direction from the January 22 joint work session
with P & Z
• Discuss the Anchorage Climate Action Plan
February 20 • Discuss and set 2019 PACAB priorities and meeting schedule
Work Session
March 6 • Fishing Trawler Fleet
Meeting • Seward Airport
March 20 • Alternative Energy work session with City Council— discussing the Andy Baker
Work Session Heat Loop
April 3 • Vessel Property Tax
Meeting • Continue exploration of energy alternatives, sponsor energy fair and/or other
continuing community education, develop a Seward Renewable Energy Plan, review
Title 15 including process and procedures for alternative energy connection to city
infrastructure.
• Community Development Quota(CDQ)update
April 17 • Housing
Work Session . Climate Action Plan
May 1 • Vessel Property Tax
• Continue exploration of energy alternatives, sponsor energy fair and/or other
continuing community education, develop a Seward Renewable Energy Plan, review
Title 15 including process and procedures for alternative energy connection to city
infrastructure.
• Community Development Quota(CDQ)update?
• Review utility infrastructure for future growth and development/Rate Study
• Housing
May 15 • Climate Action Plan
Work Session
June to end of • HIATUS -MEET AS NEEDED
August
32
Port & Commerce Advisory Board
2019 GOALS CALENDAR
DATE SUGGESTED AGENDA ITEMS
August 14
Meeting
The order for meetings in September were switched to allow the Board to freely discuss the events of the summer
and prepare action items for the September 18 agenda.
September 4 • Legislative Priorities
Work Session . Budget
September 18 • Housing
Meeting
October 2 • AML
Meeting • Review SMIC development and tariff
• Budget
• Prioritize City, State and Federal Priorities for Port& Commerce Initiatives
October 16 • Review SMIC development and tariff
Work Session
November 6 • Review utility infrastructure for future growth and development/Rate Study
Meeting
November 27 •
Work Session
December 4 • Approve Resolution for PACAB priorities (2020)
Meeting
December 18 •
Work Session
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Sponsored by: PACAB
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CITY OF SEWARD,ALASKA
PORT AND COMMERCE ADVISORY BOARD
RESOLUTION 2019-01
A RESOLUTION OF THE SEWARD PORT AND COMMERCE
ADVISORY BOARD (PACAB) RECOMMENDING COUNCIL
APPROVAL OF PACAB PRIORITIES FROM FEBRUARY 2019 to
FEBRUARY 2020
WHEREAS, PACAB's responsibilities are listed in SCC§ 2,30.325 Powers and Duties;
and
WHEREAS, City Council and PACAB held a joint work session on March 27, 2018 to
review and update the current Priorities List; and
WHEREAS,at its December 19,2.018 Regular Meeting the PACAB reviewed and refined
the Priorities List.
j NOW, THEREFORE,BE IT RESOLVED by the Port and Commerce Advisory Board
that:
f
' Section 1. The following List of Priorities through February 2020 is hereby approved by
the Board and recommended to Council for their approval:
'i
PRIORITIES
• RevieNv taxes, especially vessel property tax
■ Rcvi ew the 14arbor Tariff as needed
• Work to support industries to Seward including the Community Development Quota
(CDQ)fleets and related industries,oil &gas related industries,transportation,vessel
maintenance and repair facilities and commercial/sport fishing industry
• Help lead 5c\%;ird Marine Industrial Center(SMIC) development
* Prioritize: City, State and Federal Priorities for Port&Commerce Initiatives(October)
• Continue i\ 7loration of energy alternatives, sponsor energy fair and/or other
continuinL, corimunity education, develop a Seward Renewable Energy Plan, review
Title 15 in,�1A,:=.ng process and procedures for alternative energy connection to city
infrastructure
• Continue to send a board member to the Alaska Municipal League Annual Conference
(AML)
• Create a Climate Action Plan (2020)
Support the Blue Pipeline Initiative
• Review utility infrastructure for future growth and development_
34
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'�4
1
Port and Commerce Advisory Board
Resolution 2019-01
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the Port and Commerce Advisory Board of the City of
Seward, Alaska this 2nd day of January, 2019.
THE CITY7.2
ALASKA
W
I
fV
Christeffal Terry, Chai.
AYES: Hughes, Schneider, Paquette, Lemas, Terry
NOES:
ABSENT: Jaffa, Lawrence
ABSTAIN:
VACANT:
ATTEST:
renda J. all4,/MMC
City Clerk
(City Seal) •■`*`�`"• ,,,�
of
�* SE L
OF
35
PACAB Goals Calendar 2019
Meeting Schedule Regular Meeting Work session
REGULAR MEETING SUGGESTED AGENDA ITEMS
January 2 * Review and discuss RES 2019-01 PACAB priorities
* Review~and discuss RES 2019-02 Seward. Rate Study
lrymrrr"� ' '" 22 * Joint work session with P&Z commission.
February 6 * Presentation by Justin ,Sternberg, Seward Blue Pipeline Manager
* Discuss Commercial Fishing Trawler fleet impact on Seward
Discuss the follow up direction from the January 22 joint work session.
with P &
* Discuss the Anchorage Climate Action Plan
F&iruar"y 20 * Discuss and set 2019 PACAB priorities and meeting schedule
March 6 * Fishing Trawler fleet
* Seward Airport
1441 rr e h ^�0 * Alternative Energy work session with City Council---discussing the Andy
Baker bleat hoop
April 3 * Vessel Property Tax
* Continue exploration of energy alternatives, sponsor energy fair and/or other
continuing community education, develop a Seward Renewable Energy Plan,
review Title 15 including process and procedures for alternative energy
connection to city infrastructure.
* Community Development Quota "CDQ) update
.pr^il17 * Housing
* Climate Action Plan.
May 1. * Vessel. Property Tax
* Continue exploration of energy alternatives, sponsor energy fair and/or other
continuing community education, develop a Seward Renewable Energy Plan,
review Title 15 including process and procedures for alternative energy
connection to city infrastructure.
* Community Development Quota (C DQ) update`
* Review utility infrastructure for future growth and development/Rate Study
* Housing
2'r'l:ry 15 * Climate Action Plan
S(WE to end of August * I IATLJS- MEEIl' AS NEEDED
36 42
REGULAR.MEETING SUGGESTED AGENDA ITEMS
September 4 . Legislative Priorities
0 Budget
The meetings for this
month have been
switched..
September 18 + Il�using
October 2 . AMI,
• Review SMIC development and tariff
• Budget
Prioritize City, State and Federal Priorities for Part & C"ornmeree Initiatives
OctoIl[)er 16
0 Review SMIC development and tariff
November 6 • Review utility infrastructure for future growth and development/Rate Study
December • Approve Resolution for PAC'AB priorities (2020)
December lS
37 43
August 2019
August 2019
Su Mo Tu We Th Fr 5a
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY
Jul 28 29 30 31 Aug 1 2
10:OOam CC-Seward 6:OOpm Welcor
Airport Tour(Seward for Obihiro S
Air ort) (Seward Libr
4 5 6 7 8 9
7:OOpm P&Z Mtg 12:OOpm PACAB Ad Hoc 12:OOpm CC W'
Council Chambers) Committee(Council Council Cha
Chambers
11 12 13 14 15 16
S:OOpm CC Work 12:0Opm PACAB
Session(Council Meeting(Council
Chambers Chambers
7:OOpm CC Mtg
Chambers
18 19 20 21 22 23
6:OOpm P&Z WS 12:OOpm PACAB Ad Hoc 12:OOpm CC W'
Chambers) (Council Chamber) Council Cha
25 26 27 28 29 30
7:OOpm CC Mtg
Chambers
Council Calendar 1
38
September 2019
September 2019
Su Mo Tu We Th Fr 5a
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30
SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRI DAY
Sep 1 2 3 4 5 6
8:OOam LABOR DAY 7:OOpm P&Z Mtg 12:OOpm PACAB WS 12:OOpm CC W.
HOLIDAY-Offices Council Chambers Council Chambers Council Cha
Closed
8 9 10 11 12 13
7:OOpm CC Mtg (7:30pm
Opm HPC WS Mtg
Chambers Council Chamber
HPC Mtg
Council Chambers
15 16 17 18 19 20
6:OOpm P&Z WS 12:OOpm PACAB Reg 12:OOpm CC W.
Chambers Mtg(Council Council Cha.
Chambers
22 23 24 25 26 27
7:OOpm CC Mtg 6:30pm PACAB Ad Hoc
Chambers Committee Meeting
Seward Libra
29 30 Oct 1 2 3 4
Council Calendar 2
39
October2019
October 2019
Su Mo Tu We Th Fr 5a
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31
SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRI DAY
Sep 29 30 Oct 1 2 3 4
7:00am Municipal F-12,0012m PACAB Mt
Election(KME Rae
Bld
7:00pm P&Z Mtg
CCouncil Chambers
6 7 8 9 10 11
12:00pm CC W,
Session(Cot,
Chambers
13 14 15 16 17 18
7:00pm CC Mtg r(Cha2m
&Z WS 12:00pm PACAB Work
Chambersbers Session Chambers
20 21 22 23 24 25
12:00pm CC W,
Session(Cot,
C ha
27 28 29 30 31 Nov 1
7:00pm CC Mtg
Chambers
Council Calendar 3
40