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HomeMy WebLinkAbout09182019 PACAB Packet City of Seward Port and Commerce Advisory Board Regular Meeting i ii 9 t„ 0 i i ;r y "y ,. �` „ry a ',,,, i 1.. ,}r ���„-��r ,w,,i� �!�,�r„����T ,,.,,� �u✓r�'+n�,v�, n>, o. ro �»wuo '�r » mammadnwawnww Photo credit:AIITrails Lowell Canyon Wednesday, September 18, 2019 City Council Chambers Beginning at 12:00 p.m. SEWARD PORT AND COMMERCE ADVISORY BOARD MEETING AGENDA September 18, 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 Term Expires A. Other Reports and Presentations l. Alaska Railroad Report by Christy Terry ........ Pg. 3 Erin Lemas 2. Chamber of Commerce Report by Cindy Clock Pg. 7 Board Member 3. Harbormaster Report by Norm Regis ............ Pg. 8 Term Expires 2021 4. Administration Report 5. Update from the Climate Action Plan Committee ........................................................ Pg. 10 Scott Meszaros 6. Presentation on the Lowell Canyon Hydroelectric City Manager Stud b And Baker (telephonically) P 12 y y y ( p Y) ......... g. Norm Regis Harbor Master Brenda Ballou City Clerk City of Seward, Alaska PA CAB Agenda September 18, 2019 Page I 1 7. UNFINISHED BUSINESS —None 8. NEW BUSINESS A. Resolutions —None B. Other New Business Items *1. Approval of the August 14, 2019 PACAB Meeting Minutes. ...................... Pg. 43 2. Discuss the options for proceeding with the Lowell Canyon Hydroelectric Project, and give direction to administration to draft a resolution for council recommendation. 3. Discuss the status of the city's Interconnect Policy, and give direction to administration to bring PACAB Resolution 2019-003, approved on May 15, 2019, to citycouncil. ............................................................................... Pg. 49 4. Discuss the City Council Public Forum regarding the Seward airport held September 16, 2019. ................................................................................... Pg. 55 5. Reschedule the October 2, 2019 PACAB meeting, and review and revise the topic for the October 16, 2019 PACAB work session. ........................................ Pg. 56 9. INFORMATIONAL ITEMS AND REPORTS (No Action Required) A. PACAB 2019 Goal Calendar .......................................................... Pg. 56 B. PACAB Resolution 2019-01, PACAB Priorities from February, 2019 to February, 2020 ....................................................................................... Pg. 58 C. City Clerk memo regarding the renumbering of PACAB Resolutions 2019-003 and 2019-004. ................................................................................. Pg. 60 10. BOARD COMMENTS It. CITIZEN COMMENTS 12. BOARD AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS 13. ADJOURNMENT City of Seward, Alaska PACAB Agenda September 18, 2019 Page 2 2 RAILROAD} September 18, 2019 Port and Commerce Advisory Board Port of Seward City of Seward TEL 907.265.2209 Report to the Port and Commerce Advisory Board July 15-September 13, 2019 Vessel Traffic- * 48 large vessels including fuel and freight barges, fishing, research vessels, and Navy. • 47 Cruise ships docked at the Passenger Dock. Only one ship remaining on October 2nd • USNS Comstock will be on the Cruise Ship Dock 9/16-20. Look for public tour notifications in the community. Events at the Cruise Ship Terminal- * Music Festival September 27-28 • 1 will attend the Alaska Harbormaster's Conference in Juneau September 30-October 4, 2019. Other Items- • Last Coastal Classic was Monday September 16tn • See attached Project Sheet for the Seward Cruise Terminal Replacement. Updates available to everyone at www.railportseward.com. ChristyTerry, CPE Seward Port Manager terryco_akrr.com 907.265.2209 office 1907.422.7071 mobile mailing: PO Box 95, Seward, AK 99664-0095 physical: 913 Port Avenue, Seward, Alaska web: www.AlaskaRailroad.com RAILROAD 3 Seward Cruise Terminal J Peplacement Project The Alaska Railroad Corporation (ARRC) is Increase passenger rail business and ARRC seeking a private sector operator or consortium profitability. "partner"to invest in developing a cruise facility • Develop unleased areas of the Terminal Reserve within the ARRC Seward Terminal Reserve.The partner will provide design, construction and adjacent to the existing terminal. seasonal operation of a new facility to replace the Project Background existing facility,as well as potentially expand the The existing Passenger Dock is apile-supported current operations to include additional uplands development.The ARRC is open to exploring op- pier dock with a concrete deck,a length of 736 tions that use the available lease areas for viable feet and a width of 200 feet.This infrastructure commercial development. provides support and moorage space for freight vessels and non-cruise vessels during the visitor Purpose and Goals off-season. The dock's pile foundation has expe- The project purpose is to replace the existing rienced significant corrosion over it's half-century Seward Passenger Dock. It was constructed in lifespan,which limits the dock's remaining useful 1966 and is nearing the end of its useful life. Project life and has resulted in weight restrictions being implemented. goals include: The Dale R. Lindsey Alaska Railroad Intermodal • Replace the existing passenger terminal— Terminal is located on the northern end of the Pas- including dock, building and upland facilities senger Dock.The terminal passenger facility is a La -permitting continued cruise/visitor industry 26,555 square foot, steel-framed rectangular build- growth in Southcentral Alaska. ing.The facility layout is flexible, and the building's • Provide opportunities for new entrants into the space has capacity to accommodate up to 1,675 market. people at one time. ON MIN H Aug ust,27 2019 4 PROJECT ILLY!!!!!° °"'rs RAILROAD Outside of the cruise ship season,the Plan supporting development strategies terminal building is currently available AILPORT to meet current and future demand. for hire as a venue for sports practices, SEWARD Within the Master Plan, ARRC consid- community festivals,weddings and other ered several different passenger terminal celebrations,and conferences. Traffic replacement concepts. The plan recom- staging to support cruise ship activities takes place in a mends replacing the aging dock with a floating dock, and five-acre area north of the terminal.The area is used for constructing a new cruise terminal building and associated loading and unloading passengers and luggage from buses facilities.This recommended concept has an estimated cost and trains. of about$70 million. The developer partner is not required Adjacent to the existing terminal is the 35 yr-old coal to follow this concept. loading facility. Its primary purpose was to unload coal from railcars,convey the coal to storage,and load coal into bulk ships for international export.This facilty has not been in opera- tion since 2016 and there are not current plans to bring it back into operation. Vie'ill/�l/�/i���iao�a�i� In 2016,ARRC initiated the Sewardf" Marine Terminal Expansion Planning Project M;�1 (also known as RailportSeward)to consider current and anticipated long-term needs at the Alaska Railroad's Seward Marine Terminal.The project included three stud- ies—Passenger Traffic, Freight Traffic and Transportation Connectivity. Completed The existing dock and terminal building serve as an intermodal hub,with bus,train in 2017,these studies resulted in a Master and marine connectivity. The dock structure is nearing the end of its useful life. Project Lease Area 11I LL ROAT MIRROR y •,, T�OOC%a^R Ill AIAfLFDA 5T. BOAT TRNER PARIR/() ARRC WAl TEAeOMAL LE�e POTENTIAL.LEASE AREA BOUNDARY LEASE AREA EXCLUSIONS The area potentially available for terminal development is shown here in pink-purple,with some limitations. 5 Seward Cruise Terminal Replacement • Page 2 PROJECT Iill!!!!!!° °"'rs RAILROAD Project Scope The new dock must be capable of mooring two ships from 80 to 1,080 feet in length. The project scope includes the following components: • Provide for off-season mooring of freight vessels. • Provide a cruise passenger terminal to accomodate anticipated cruise traffic for the next 50 years. The terminal building shall have an open space capable of accommodating 1,500 people. • Consider commercial concessions in other available lease areas. Operate, manage and maintain the terminal for the dura- tion of the agreement. • Avoid interruption of cruise or rail passenger traffic between May and September. Project schedule ARRC's preliminary schedule is developed with the intent to have the terminal construction completed by December 15,2023. 2019 2020 12021 12022 2023 ID Task Name Duration Start Finish Pred** ul Iuz ul I H21 ul I H21 ul Iuz ul Iuz 1 Solicit for Concessionaire 26 wks 7/19/2019 1/16/2020 n/a 2 Negotiate Terms 12 wks 1/17/2020 4/9/2010 #1 3 Preliminary Design 20 wks 4/10/2020 8/27/2019 #2 4 Permits 40 wks 8/28/2020 6/3/2021 #3 u�uuuuuuuuuu 5 Final Design 48 wks 8/28/2020 7/29/2021 #1,#3 ouuuuuuuuuuuN� 6 Procure Materials 20 wks 7/30/2021 12/16/2021 #5 7 End 2021 Season n/a 10/1/2021 n/a 1011 8 Construction 115 wks 10/1/2021 12/14/2023 #7 9 2022 Temporary Operations 20 wks 5/16/2022 9/30/2022 n/a 10 2023 Temporary Operations 20 wks 5/15/2023 9/29/2023 n/a MESA **Pred=Predecessor tasks that must be completed prior to beginning the indicated task. For More Information • Visit the project website at www.railportseward.com • Visit the ARRC website's Projects section for more information on the master planning effort—www.AlaskaRailroad.com> CORPORATE> Projects(Seward Capital Projects dropdown) • For public comment or inquiry, use Public_Comment@akrr.com or call ARRC's Regulatory&Corporate Communications Officer Stephenie Wheeler at(907)265-2671. 6 Seward Cruise Terminal Replacement • Page 3 Report to PACAB September 18, 2019 Seward Chamber of Commerce, CVB, Cindy Clock I apologize for my absence today, I'm attending a Chamber Board meeting As always, if you have any questions on my report — or anything else — please send me a note at director@seward.com Chamber staff put together a presentation for the work session with PACAB that Council requested. It's very well done — check it out when you have a few minutes. I very much appreciate all the support the Seward Chamber receives from PACAB. This group is such a valuable partner, great collaboration and so many positive things have come from us working together. The candidates' forum that was held last week and sponsored by the chamber was very well attended. Absentee voting has already begun — voting day is October 1st Blue Pipeline: Justin Sternberg is transitioning out of the Blue Pipeline Manager role. Currently, the job description is being drafted and reviewed by the Alaska Ocean Cluster and SBDC. It should be completed by Monday of next week. During the transition, Justin will maintain a presence in Seward for the sake of continuity with SBDC clients and also to ensure a smooth transition for the Blue Pipeline program. In addition, once the new hire comes on board, he will be working with them on the incubator program and developing Seward's blue economy. The Seward Chamber and the ASLC are joining forces to hold a welcome reception for City Manager Scott Meszaros and City Admin Assistant Rosa Salazar on Friday, Oct 4th from 5 — 7 pm. Light refreshments &door prizes. Please stop by if you are able. Kris Harris met with Jim McCracken and Diane Dubuq on Thursday, Sept 12th to begin planning for the Board of Fish Conference to be held in Seward in Early December. Public tours of the Navy ship from 2:00 — 7:00 pm. Bring your ID and get in line — first come, first served. Next Chamber Lunch is September 26th — Aisha Bouziane will introduce the Member Portal to Simple View Customer Relationship Management Relationship (CRM) program, Thank you! 7 CMR 09/23/19 1. PACAB work session on 9-4-2019, working on budget and legislative priorities. 2. The 50 ton lifts have picked up due to the end of the season. 3. The 330 ton lifts have also picked up as vessels are coming out of the water for the season. 4. Still waiting on the as-built to close out the South Harbor Launch ramp. 5. 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. 6. We had another boat sink on 9-11 harbor crew boomed off the vessel, Storm Chasers was called and they raised the vessel and cleaned up the area. 7. Security training on September 11 for harbor crew, the training was conducted by the US Coast Guards. 8. The harbor interview a candidates for the senior administrative assistant position and made an offer, she has accepted. 9. An email we received. To: Harbor Master<ha rbo rm astenl@ citvofsewa rd.net> Mr. Regis, My Wife and I have 2 young daughters. We enjoy walking the docks and have taken the Kenai Fjords tour. We are very impressed by your efforts to provide life-jackets for children. We make a point to teach our daughters to always wear a life jacket when on a boat or while even walking the docks. Thank you for your effort to ensure the safety of all children who frequent the harbor. Sincerely, Travis Robotkay Subject: Life Jackets 8 wl Seward Climate Action Plan Community Open House Kickoff Development Meeting September 24, 6:30PM Seward Community Library, Community Room Hosted by the Port and Commerce Advisory Board �G If" �r � I J,r. I1VYjpJJ m � Everyone invited ! Come share your thoughts! Help develop the process for a Seward Climate Action Plan specific to our community values! Learn about Climate Action Plans, discuss the process moving forward and provide feedback regarding Seward risks and po- tential mitigation and solutions! We are looking for input from a wide range of participants in our discussion of Seward climate priorities. Spread the word ! Questions can be directed to the Board Committee Members through City Clerk Brenda Ballou bballou@cityr .net. 10 CONCEPT DESIGN AND ECONOMIC EVALUATION OF LOWELL CREEK HYDRO PROJECT TO PROVIDE CLEAN GRID ELECTRICITY FOR CITY OF SEWARD, ALASKA I L.. f F�u J r � I n , FINAL REPORT COMPLETED JULY 22, 2019 BY ANDY BAKER, PE "Celebrate the power of nature"TM ... 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 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................................................................................................................................................12 HYDRO-ELECTRIC ENERGY PRODUCTION....................................................................................................................................12 ESTIMATED HYDRO-ELECTRIC ENERGY BASED ON PROJECTED STREAM FLOWS................................................................13 HYDRO-ELECTRIC TURBINE EQUIPMENT SELECTION.................................................................................................................14 TURBINE HOUSE CONCEPT DESIGN..............................................................................................................................................15 TURBINE HOUSE CONCEPT DESIGN(CONT'D)..............................................................................................................................16 TURBINE HOUSE CONCEPT DESIGN(CONT'D)..............................................................................................................................17 EVALUATING HYDRO PROJECT COSTS VS BENEFITS.................................................................................................................18 OPINION OF PROBABLE CAPITAL COSTS—PROPOSED HYDRO-ELECTRIC PROJECT-2019.................................................18 OPINION OF PROBABLE PROJECT COST—PROPOSED HYDRO-ELECTRIC PROJECT-2019..................................................19 ESTIMATION OF PROBABLE ANNUAL COSTS—HYDRO-ELECTRIC FACILITY-2019................................................................20 OPERATIONS.....................................................................................................................................................................................20 WATERRIGHTS.................................................................................................................................................................................21 RECOMMENDED SCOPE OF HYDROLOGIC STUDY TO MOVE PROJECT FORWARD.................................................................21 ■ "Celebrate the power of nature"T. ...with YourCleanEnergy«C 12 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 3 OF 22 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. ■ "Celebrate the power of nature"T. ...with YourCleanEnergy«I 13 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 4 OF 22 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. At this time, it appears much less attractive 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. While 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 will remain on the table if negotiations with UAF for land easements become more attractive in future years. 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). If a total of $11 million of state/federal grants were applied to the design/construction costs, and the City were to issue a General Obligation Bond for$7.6 million to finance the remaining costs, the system would produce electricity at approximately$0.1179 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 ■ "Celebrate the power of nature"T. ...with YourCleanEnergy«I 14 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 5 OF 22 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. 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: R, e F i"If uir u U PROPOSED TURBINE HOUSE ll ,) PROPOSED WITH UTFALL 2"' DIAMETER PROPOSED RFICSTCI RUIN-OF-RIVER INTAKE , NX r a� ^D N R �rN LAN �,�,�,mM�CITYLAN d d d did d y1'�vry"I VI��ad..d� .d.d.d .d.d.d ad d d did d did d did ado 4 hwf�P9fWdP9fWYD'P9D'iP9D'i&N"�i "wf7�YA'rNN '� � ' `, �� - EG A MY 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. ■ "Celebrate the power of nature"T. ...with YourCleanEnergy«I 15 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 6 OF 22 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. ■ "Celebrate the power of nature"T. ...with YourCleanEnergy«I 16 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 7 OF 22 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, landslides, vegetation, and wildfires. There also remains a section of 69KV transmission line supplying Seward that imposes a line loss 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$0.30/KWH. This high cost is due primarily to diesel fuel costs, and labor costs. The City of Seward has a contract to directly purchase 1% of Bradley Lake hydro-electric generation at a wholesale price of approximately$.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. ■ "Celebrate the power of nature"T. ...with YourCleanEnergy«I 17 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 8 OF 22 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 layer 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 60 CFS flow for up to 2 months in late summer and early fall. It is assumed in the calculation for annual hydro power production that the turbine will be taken off-line for approximately two weeks each winter during low flow period for annual maintenance;and that the turbine will be taken off-line for approximately two weeks each year during the fall flood season. Projected flow available for hydro power in this evaluation does not include a contribution from the existing Marathon Creek impoundment located at elevation 720 ft on Marathon Mountain. This flow could be added to the proposed penstock in Lowell canyon to increase the viability of the project. However, it will first be necessary to measure the stream flow thru the impoundment for several years, and once measured, apply for water allocation from DNR and ADF&G to divert this flow down to Lowell canyon. This are fish present in the habitat downstream of the impoundment, and it seems likely these agencies will place seasonal restrictions on the amount of Marathon Creek flow that can be diverted for hydro power. ■ "Celebrate the power of nature"T. ...with YourCleanEnergy«I 18 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 9 OF 22 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. 01 ��... i � �w �� - ��........ww Mosswod ow 68 40 3 ............... ....... .o. ILE n"IRAPOLA r-ED FOR IN TA K IIE IO,CA I EID A L q " ELEV 4W,01 If°T , INCLUDES ICJC1""ION L,E0"'44 FLOW .......... .aw,. . ra i 01 20 40 GO 80 100 PERCENT OFTIME ■ "Celebrate the power of nature"T. ...with YourCleanEnergy«I 19 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 10 OF 22 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 Ganvnn Hy(k�-zr QO� 9 -Proposed Intake Loeatoon r-. ■ "Celebrate the power of nature"T. ...with YourCleanEnergy«I 20 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 11 OF 22 RUN OF RIVER COANDA STYLE INTAKE WITH BURIED INFILTRATION GALLERY(CONT'D) /�. �ilGo i j VnfiVtUatian GalBey ✓ / Sluice Gates / ��✓ 1��� Intake Screen, � � � ✓�� ��� � � Penstock of i f Lowell Creek Intake Concept C,any,,n Idydlro-'c"latir M c ,xs xw czn 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. In order to confirm that a sufficient underground water flow exists upstream of the proposed surface intake location, it will be necessary for the City to install a series of small diameter ground water monitoring wells along the edge of the stream channel. These monitoring wells will allow measurements of water level, water temperature, and the presence of fine silt that could impact the infiltration gallery design. Once the quantity of underground flow is estimated, a surface area of below ground screen material can be estimated that could produce the winter flows of 10 CFS or more that would be ideal. The below ground screen material will likely be high strength geo-textile fabric that will wrap around an elongated bed of coarse gravel that will enclose a perforated HDPE collector pipe. If adequate surface area of geo-textile fabric can be installed below the water level of the stream, hydraulic pressure will force flow thru the fabric and into the drain pipe that will supply the penstock. The geo-textile fabric employed in a filtration gallery can be selected to screen out most of the fine silt and still allow the design flow to be acquired even after siltation of fabric occurs over time. The confidence of exploring the infiltration gallery design comes in large part from observation that the fine silt and sand present in the creek bed has high permeability during rain events, even after hundreds of years of siltation from annual flood events. This suggests that the silt particles in Lowell Creek, even when concentrated in layers, allow water to drain thru instead of ponding at the surface. Data from underground monitoring wells and a sedimentation study would indicate what range of permeability could be anticipated from a properly designed infiltration gallery along the stream bed. An example of a successful infiltration design in Seward is the fresh water collection system installed by the Alaska SeaLife Center several decades ago along the base of Bear Mountain. This design employs a large area of geo-textile fabric surrounding a gravel bed with perforated HDPE pipe in the center. ■ "Celebrate the power of nature"T. ...with YourCleanEnergy«I 21 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 12 OF 22 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. 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 Electric Power=(Q* H *e)/ 11.81 Q=flow in CFS H =drop in elevation head from intake to turbine e =overall efficiency of hydro-electric system, accounting for energy losses thru intake screen, collection channel, penstock, bends, valves, nozzles, turbine, bearings, generator, switchgear 11.81 =constant to convert to KW ■ "Celebrate the power of nature"T. ...with YourCleanEnergy« 22 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 13 OF 22 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 1.5 winter months, avg flow @10cfs = 313,725 KWH - For 0.5 winter months, off-line for maintenance = 0 KWH - For remaining 1.5 months, avg flow @ 60cfs = 1,882,350 KWH - For 0.5 fall months, off-line during flood events = 0 KWH --------------------- ESTIMATED ANNUAL HYDRO-ELECTRIC ENERGY = 8,888,375 KWH ENERGY PURCHASED FROM CEA BY CITY IN 2018 = 57,645,249 KWH PERCENTAGE OF ANNUAL POWER FROM HYDRO = 15.4% ■ "Celebrate the power of nature"T. ...with YourCleanEnergy«I 23 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 14 OF 22 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 waterjets into rotation of the turbine wheel. The waterjet 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. a , %`' y,'4UhdNihNti FNr �y High efficiency Pelton wheel turbine with stainless steel split bucket design u P „ 1 n i Y / Jay Five jet vertical pelton wheel turbine system installed (photo courtesy of Canyon Hydro) ■ "Celebrate the power of nature"T. ...with YourCleanEnergy«I 24 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 15 OF 22 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. rz i I I �I I ` N ul Ea. W The east end of the Jefferson Street R.O.W. corridor extends in the City's Waterfront Park I � Iw89 59'22"iw 368.10' # �`n I (232 k1) 232.00 86.f0 0.00 , 2p JEEEERSON S T, F S89 59'22'E 408.06 j 40' 140' 232 R1 232.00 59.92' 2.00' AQ ■ "Celebrate the power of nature"T. ...with YourCleanEnergy«I 25 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 16 OF 22 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. gm IF .. ..,...,, i o err s ,,_,: 100 FT Rout EXTENDS©INTO? CAMPGROUND P %///% / EXISTING 24"CMP STORM DRAIN LET gg' 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 . 41$OWI TRANS FIVE JET FORMER L..... VERTICAL ' "1, ........ PIELT©N w Ar GENERATOR SwITCHGEAR 30"BALL VALVE "Celebrate the power of nature"T. ...with YourCleanEnergy LLI 26 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 17 OF 22 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: w �w .�„+ ,, r o Dili,uTn�imvinr,pir,J9nr2um�rlu��wiev9p"ry�i t r, a!iri r r �,Y,,r�m�lv9rviu JJf ihifi b * ,a,,: ,,,e,e;, tu, � ,r .. `s✓ li t+M YY IP»YlpYdlYUVilllfl MlYgIN�,.,Y1N1� I.1)fl 1 ) J � ..,, ..'; «, ,, way»v rtia nmi�aiwuww�H r i�✓r a Mr im g wimiue�mr�mur!�h�rr r�� 1 , x v � f i J �J"rse rid l��ri �a �!"i�,,„,'"� ,J„iIy,,/,,,r- ,,,,,, .;..,n/ -�` l ,('rrW mrAL,�wiiiir,c��1�I�i�r�!.<Ir/11� J/l�rctili��i��r�A,,/�il�iFi illl7/N/%iart�r�/G�sr✓, ""' ,,.„.�r.r�✓�rfriN�1.��,rio//r�✓/l�%il(�lcJ✓�✓ u� ��H. ��i7111/Jl,,. ,..../1.,y,� �.�, /,�„ ,��. i/✓11 r /r, :;: s,c,.,a„ a�i ,,,;, Fr i i r;lu�l� �lr��`/ink✓/�r���as��'d;��d'/���i�/��1����i�1��61/�UURr��i�G!�Jl�/,�n/ririnwii�io9d'N�.�'I��;o,/ VI �i"4 Pr" 4.�p�" � ,,;..y�� Looking east across Ballaine Avenue. (Site photo and rendering by YourCleanEnergy LLC). e� Il s ti7 f ` m y 'Wu is y,u� lid, 5aa4r � r� i ��r�r�rr,( ✓ iu 14 Looking west from Waterfront bike path. (Site photo and rendering by YourCleanEnergy LLC). "Celebrate the power of nature"T. ...with YourCleanEnergy«I 27 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 18 OF 22 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 ■ "Celebrate the power of nature"T. ...with YourCleanEnergy«I 28 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 19 OF 22 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 ■ "Celebrate the power of nature"T. ...with YourCleanEnergy«I 29 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 20 OF 22 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): 8,888,375 KWH ANNUAL ENERGY COSTS =TOTAL ANNUAL COSTS/KWH PER YEAR: $ 0.1179/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. ■ "Celebrate the power of nature"T. ...with YourCleanEnergy«I 30 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 21 OF 22 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. RECOMMENDED SCOPE OF HYDROLOGIC STUDY TO MOVE PROJECT FORWARD 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. The hydrologic study will best serve the city's long-term interest by including the following four components: A. A reliable and accurate gaging station is to be established to collect stream flow for a minimum period of two years at the proposed 460 feet elevation intake. This flow data can be compared to the USGS gage data available since April 3 2019 at the tunnel outlet. Because the stream cross section in this area is non-uniform, it may be necessary to install a low head weir across the stream channel to measure flows up to at least 75 CFS. With proper planning, this weir for flow measurement could remain in place after the hydro intake is constructed. The frequency and timing of discharge data collection should be synchronized with the USGS stream gage now available at the Lowell Creek tunnel outlet, so that correlations between upper and lower canyon flow can be established. B. An additional suggestion has been made by DNR to install and monitor a series of small diameter groundwater wells in locations where an infiltration gallery could be sited, upstream from the surface diversion, also for a period of two years. These wells should be screened down to bedrock and be accessible with lockable cover from the edge of the stream channel. Measurements of ■ "Celebrate the power of nature"T. ...with YourCleanEnergy«I 31 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 7/22/19 PAGE 22 OF 22 water level, water temperature, and turbidity in these wells will give indication of how much flow a below grade infiltration gallery could produce, especially thru the cold winter months when surface flow can be very low and prone to freezing. The movement of fine silt and sand in the underground flow during various combinations of weather and slide events can also be measured. C. Because the Lowell Creek drainage can transport large quantities of silt, sand, and fine gravel, a sedimentation study of surface flow should also be included. It will very useful to know what stream flows and weather conditions are likely to increase bed load in the stream, some of which may be hazardous to the future hydro intake system. Impact of siltation on the infiltration gallery can also be predicted. D. A water surface level gage should be installed at the Marathon Creek impoundment located at elevation 720 feet on Marathon Mountain jeep trail. This stream flow resource can be diverted to the future Lowell Creek hydro penstock via existing 12-inch steel penstock that was constructed by the City in the early 1980's. The existing Marathon Creek impoundment has a concrete broad crested trapezoidal weir; water level readings just upstream of the weir can reliably be converted to discharge in CFS. The frequency and timing of discharge data should be synchronized with the stream gage proposed for the upper canyon of Lowell Creek, so that total flow available for the hydro project can be established. Both DNR and ADF&G require at least two years of flow data from Marathon Creek in order to determine a seasonal water allocation that will preserve fish and wildlife habitat in the Marathon Creek drainage. The stream flow data can be used to develop a new duration curve that reflects the current climate conditions for the Lowell Creek and Marathon Creek drainage areas. 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 soon engage the USGS, and/or other qualified professional and experienced hydrologist to begin the necessary data collection and analysis of surface stream flow, underground water flow, and sedimentation characteristics at elevation 460 feet in the upper canyon of Lowell Creek; and surface stream flow at the existing impoundment at elevation 720 feet on Marathon Creek. The investment in gathering several years of accurate, reliable, and current hydrologic data will greatly increase the confidence of the City, and state and federal agencies, in developing a successful hydro-electric project on Lowell Creek. ■ "Celebrate the power of nature"T. ...with YourCleanEnergy«I 32 Your !Clean Energy ■ Celebrate the pamr of nalure,, Page 1 of 8 June 30, 2019 John Foutz, Electric Utility Manager City of Seward P.O. Box 167 Seward, AK 99664 RE: Report of On-going Coordination with DNR, ADF&G, ACOE, FERC — Lowell Creek Hydro Project CC: Brennan Hickok, Assistant City Manager Patrick Gillis, Electric Utility Operations Supervisor Dear John: In accordance with the YCE proposal of Feb 25 2019, the following is a summary of engineering time effort to date for on-going coordination 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 of Seward. SCOPE OF WORK — A summary of on-going coordination services anticipated by YCE during the feasibility phase of the Lowell Creek Hydro Project will consist of the following work tasks: Agency Description Alaska Dept Natural Resources Prepare preliminary water rights application, also coordination with Division of Lands, and Division of Dam Safety Alaska Dept of Fish & Game Coordinate fish & wildlife concerns, permits US Army Corps of Engineers Meetings, coordinate regarding future plans for new tunnel and diversion dam Federal Energy Regulatory Commission Stream classification, request license waiver LIMIT OF THIS EFFORT - It is understood that the above efforts exclude the cost of coordinating with Chugach Electric Association who currently supplies power to City of Seward 308 G Street#215,Anchorage,AK 99501 907-350-2084 www.yourcleanenergy.us 33 Your !Clean Energy ■ Celebrate the pamr of nalure-- Page 2 of 8 via long distance transmission; and other yet unidentified coordination tasks that may impact the development of a hydro project operating year round on Lowell Creek. Alaska Department of Natural Resources (DNR) The proposed stream intake location and approximately 2,400 feet of the upper elevation portion of the penstock would be located on a parcel of DNR land within the City limits. A schematic of the project that shows the boundary of DNR / City land, and location of the City's existing water rights is given below: PROPOSED TURBINE HOUSE AK 9 WITH OUTFALL. PROPOSED 4 °" DIAMETER PROPOSED PENSTOCK - INTAKE RUN-OE-RIVER �t INTAKE DNR CITY LAND " LAN' ... .�� . �� ."aa� C u a Aw A All 'CT OW. �Ii�p I I q1��11II'l I ll�ll�llulllll k ",. """ The City currently has water right permits for several wells in the lower portion of Lowell Canyon, but none for surface water in the upper canyon. In order to proceed with evaluation of the Lowell Creek Hydro Project, it was necessary for YCE to contact and coordinate with three separate sections within the Division of Mining, Land & Water of Alaska DNR. This effort allowed YCE to determine what tasks the City must anticipate in order to move the hydro project forward. The three DNR Sections within the Division that require coordination and compliance are: Water Resources —water allocation permit for point of diversion, usage, and discharge Land Sales — lease and easements for City hydro-electric facilities located on state land Dam Safety— permits for intake impoundments, modifications to existing dams 308 G Street#215,Anchorage,AK 99501 907-350-2084 www.yourcleanenergy.us 34 Your !Clean Energy ■ Celebrate the pamr of nalure,, Page 3 of 8 Additionally, the City is encouraged to investigate what water right allocation is possible from DNR / ADF&G for the existing Marathon Creek impoundment located at elevation 720 ft on the east face of Marathon Mountain. There is a screened manhole intake adjacent to this impoundment and a 12" steel penstock that conveys diverted stream flow to a 250 KW pelton wheel generator located in a turbine house at elevation 180 ft in Lowell Canyon. This small hydro-electric system was built by the City in the mid 1980's; the plant has not been functional since 1986. Plant records suggest that the water allocation from the Marathon Creek impoundment was restricted by DNR and/or ADF&G at that time to approximately 1200 gpm, which limited the turbine generator to 50 KW output. In today's electricity market in Seward, the contribution of flow from Marathon Creek to the Lowell Creek Hydro Project via the existing intake and penstock infrastructure is financially attractive. However, the allocation of flow from Marathon Creek must be balanced with the ecology of fish habitat in First Lake and the aquatic habitat of the entire drainage downstream of the impoundment. Gaging of the stream flow at the Marathon Creek impoundment will be required for a period of at least two years, as no historical or current flow data is available. DNR Water Resources Section. Coordination for in-stream water right from Lowell Creek was made by YCE directly in phone conversation and emails with Carl Reese, Statewide Hydro Specialist, Water Management Unit. The following is a summary of important information supplied by DNR, and coordination tasks completed to date. The City cannot divert stream flow from Lowell Creek on state land without first making application for an in-stream water right. The filing date of the application will give the City priority for the water right. The application fee is $1,500 for hydroelectric generation capacity greater than 100KW. YCE assisted the City in completing the Application For Water Right, along with a project description; the City via Interim City Manager Jeff Bridges, submitted the application to DNR on March 14, 2019. Carl Reese of DNR confirmed in writing on March 27 2019 that the application had been received. A PDF copy of the application, and DNR confirmation of filing date, are included as attachments to this summary. In order to be considered complete, the application will require flow monitoring data for the specific intake site, both recent and historical. If inadequate flow data exists for the location, a hydrologic study will be required with two to five years of data collection required to establish acceptable duration flow curve for year-round flows. The hydrologic study can include ground water monitoring wells along the stream bed to evaluate the potential for using an infiltration gallery for a portion of the diverted flow. USGS flow data is available for the outlet of the Lowell Creek tunnel for the time periods of 1965 thru 1968; and 1991 thru 1993. USGS installed a flow gage at this same location in April 2019 to monitor stream flow, as directed by the US Army Corps of Engineers who are evaluating tunnel modification options to improve flood control safety. Discharge data every 15 minutes in CFS beginning on March 5 2019 is now available on-line via the USGS website for this station #15238500. A screen shot of this discharge data taken June 28 2019 is as follows: 308 G Street#215,Anchorage,AK 99501 907-350-2084 www.yourcleanenergy.us 35 Your !Clean Energy ■ Celebrate the pamr of nalure-- Page 4 of 8 109.00 ,i Her 02 Her 1 " ar 301 Opr 13 Apr 27 Kay 1 "ay 25 Jun Oil Jun 22 2019 2019 2019, 201,9 2019 2019 2019 2019 „ „-- ProvisLanaL Data StAw,ject to, Revisilon —,-- This existing USGS stream flow data is being collected more than one mile downstream of the proposed hydro-electric system diversion location at elevation 460 ft. This USGS data does not represent the anticipated higher flows that may be present at times in the upper canyon. It was observed in the 1979 CH2M Hill study of Lowell Creek that a flow measured in the upper canyon at elevation 460 feet was approximately 60% greater than one in the lower canyon, apparently due to loss of flow to deeper gravel formations in the lower canyon. While it may be possible to draw correlation between lower and upper canyon flows over time, current measurements of stream flow at the upper canyon location will be required in order for a DNR water allocation permit application to be completed. DNR Land Section. Coordination for land lease and easements on DNR land was made by YCE directly in phone conversation and emails with Clark Cox, Southcentral Regional Manager. The following is a summary of important information supplied by DNR, and coordination tasks completed to date. For the stream gaging required on DNR land at elevation 460 feet, an access permit from DNR Lands for the anticipated period of gaging will be required in advance. 308 G Street#215,Anchorage,AK 99501 907-350-2084 www.yourcleanenergy.us 36 Your !Clean Energy ■ Celebrate the pamr of nalure,, Page 5 of 8 For construction of the hydro-electric system, a land lease and two types of easements will be required. For the land which will contain permanent intake structures, a 55-year lease arrangement with adequate footprint will be required. The lease rate will vary from $240/acre/year to $1,000/acre/year, depending on the appropriate use rate assigned by DNR. Application for land lease shall be in accordance with state law 11AAC 05 230. Application fee is $1,500 for lease of one acre or less; fee is $2,500 for lease more than one acre. For the penstock and access road on DNR land, both construction and operation easements will be required. The construction easement will include all lands that may be used during construction, including for materials storage, excavation and fill areas, erosion control, etc. The final easement for operation will include only the land area required for the gravel access road up the canyon, and access easement to the penstock. Application for penstock/access road easements shall be in accordance with state law 11AAC 05 070. Application fee ranges from $250 to $1,500. Application for lease and easements for the proposed hydro-electric project could require two to four years for DNR to process. Public meetings on the applications are not mandatory, however 30 day public notice is required to inform the public of key steps during the application process. DNR Dam Safety Section. Coordination for dam safety issues related to the proposed hydro- electric project was made by YCE directly in phone conversation and emails with Charlie Cobb, Dam Safety. The following is a summary of important information supplied by DNR, and coordination tasks completed to date: If the impoundment created by the proposed stream intake at elevation 460 ft is less than 50 acre-ft in storage volume, then no permit from Dam Safety Section will be required. The proposed stream intake is essentially a run-of river design with intake box storage volume only to keep water level above the penstock intake. This storage volume is not anticipated to be greater than 50 acre-ft. If the proposed penstock crosses over, or passes thru, the existing concrete diversion dam in Lowell Canyon that directs flow into the Bear Mountain tunnel, then a Dam Safety permit will be required. The US Army Corps of Engineers is currently undertaking a feasibility study of options to increase the safety of the dam and tunnel system during extreme flood events. Alaska Department of Fish & Game (ADF&G) Coordination for fish habitat issues in Lowell Creek related to the proposed hydro-electric project was made by YCE directly in phone conversation and emails with Brian Blossom, Kenai Area Manager, Division of Habitat, ADF&G. According to Mr. Blossom, if there are no fish populations present in the drainage below the proposed intake location, then no fish habitat permit from ADF&G will be required for the project. There may be concern expressed in the water right permit review process regarding minimum seasonal flow for wildlife that drinks from 308 G Street#215,Anchorage,AK 99501 907-350-2084 www.yourcleanenergy.us 37 Your !Clean Energy ■ Celebrate the pamr of nalure,, Page 6 of 8 the stream between the proposed intake location and the tunnel entrance. This concern may suggest that a minimum flow reservation be kept in the drainage during certain months of the year to support resident and migratory wildlife populations. Coordination for ADF&G flow reservations in Lowell Creek related to the proposed hydro- electric project, and in Marathon Creek for the existing hydro facility, was made by YCE directly in phone conversation and emails with Kevin Keith, FERC Hydropower Coordinator, Instream Flow Program, ADF&G. Stream flow in Lowell Creek at the proposed upper canyon intake location will be required for two to five years, to establish credible duration curves based on precipitation patterns. Some flow reservation may be required by ADF&G from the intake location to the tunnel entrance to support existing wildlife each year when snow melt is depleted from summer thru fall. It is recommended by ADF&G that stream flow at the Marathon Creek impoundment at elevation 720 ft also be measured for two to five years, concurrent with upper Lowell Canyon, to establish credible duration curves based on precipitation patterns. Some portion of Marathon Creek flow may be available to supplement the proposed Lowell Creek Hydro Project. A strict seasonal flow reservation in Marathon Creek will required by ADF&G to support the natural stream ecology and the salmon and trout populations present downstream in First Lake. Federal Energy Regulatory Commission (FERC) Coordination with FERC was made by YCE directly in phone conversation and emails with Ken Hogan, Fisheries Biologist, FERC. The following is a summary of important information supplied by FERC, and coordination tasks completed to date. Mr. Hogan advised that a FERC license may be needed for the project. The City can receive a jurisdictional determination from FERC by filing a Declaration of Intent. This determination would state whether the City could be exempt from having a FERC license for the hydro project. The City can establish priority for a FERC license by filing a Preliminary Permit Application before filing a Declaration of Intent. If granted, the preliminary permit, issued for up to four years, would maintain the City's priority of application for the license (first to file status) during that period. The City now has a priority water right application for hydro on Lowell Creek via the "Application For Water Right" received on March 27 2019 by Water Resources Section of DNR in Juneau. YCE does not recommend that the City file a Preliminary Permit Application to FERC at this time, given that they hold municipal priority of the water right in Lowell Canyon. If the proposed hydro project is found to be jurisdictional and a FERC license is required, an accelerated licensing process is available. FERC has a Small/Low Impact Hydropower Program for small projects with minor environmental effects like Lowell Creek Hydro Project. 308 G Street#215,Anchorage,AK 99501 907-350-2084 www.yourcleanenergy.us 38 Your !Clean Energy ■ Celebrate the pamr of nalure-- Page 7 of 8 As of the date of this report, the City has not made any filings with FERC for the Lowell Creek Hydro Project. YCE recommends that the City file a Declaration of Intent with FERC soon so that the City will know whether or not a FERC license will be needed for the project. Even a streamlined FERC application could require a three to five year timeline to obtain a license. On a positive note, this extended timeline can coincide with the required DNR hydrologic study; and design of improvements to the dam and tunnel anticipated by ACOE as early as 2023. US Army Corps Of Engineers (ACOE) Coordination with flood control aspects of the Lowell Creek drainage was made by YCE directly in phone conversation and emails with Brand Phillips, Project Manager, Anchorage, US Army Corps of Engineers. The following is a summary of important information supplied by Mr. Phillips, and coordination tasks completed to date. According to Mr. Phillips, ACOE is planning to complete a feasibility study in May 2021 for improvements to the existing diversion wall dam, and the 2,000 ft long tunnel thru Bear Mountain. These improvements may include a new diversion dam and tunnel to be located upstream of the existing ones. The earliest that construction could start on this improvement project is 2023. The timeline of this ACOE improvement project can accommodate coordination for the proposed small hydro project in Lowell Creek. There are no immediate objections or concerns about the proposed small hydro project from ACOE at this time. In practice, the lowest impact alignment for the 42" steel penstock in the area of the existing diversion dam wall would be to pass around the north end of the wall. This could be accomplished by excavating a trench into the canyon hillside adjacent to the end of the concrete wall and installing the steel penstock below grade. The trench would then be backfilled and returned to existing grade conditions. Such an alignment would not require modifications to the existing dam structure which is historic and critical to flood containment in the drainage. In the event that ACOE decides to design and build a new dam wall upstream from the existing, the steel penstock can be incorporated into that new dam wall, allowing the penstock alignment to pass thru it. If the dam is built before the hydro project, that section of penstock can be included with ends capped, so that the City could connect to them when the entire penstock is constructed. Mr. Phillips said that the best path forward in coordinating with ACOE is to keep them informed of the City's plans, meetings, and reports regarding the hydro-electric project, including plans to install flow gaging in the upper canyon. USGS is willing to share the flow data collected since March 5, 2019 at the tunnel outlet, via their web site for Lowell Creek station #15238500. ACOE intends to fund this gaging station for a minimum one year period, with option to continue flow measurements in years going forward. Having flow data from the tunnel outlet will be very helpful to establishing the hydrology of the drainage, including the upper canyon intake location. 308 G Street#215,Anchorage,AK 99501 907-350-2084 www.yourcleanenergy.us 39 Your !Clean Energy ■ Celebrate the pamr of nalure-TM Page 8 of 8 If you have any questions regarding the above summary report, please feel free to contact me. It is my recommendation at this time that the City proceed forward with the Lowell Creek Hydro Project by filing a Declaration Of Intent with FERC; and preparing a scope for hydrologic study of the Lowell Creek upper canyon, and Marathon Creek impoundment, so that proposals from qualified professionals can received, reviewed and compared. I am available to assist the City with these next steps, and can provide a proposal for this project assistance, if requested. Sincerely, Andy Baker, PE Project Manager YourCleanEnergy LLC 308 G Street#215,Anchorage,AK 99501 907-350-2084 www.yourcleanenergy.us 40 HE STATE Department of Natural Resources 4-ALAS"KA L DIVISION OF MINING,LAND&WATER Water Resources Section GOVERNOR MICHAEL J. DUNLE AVY Southeastern Office p P.©.Box 111020 Juneau,Alaska 9981 1-1 020 Main:907.465.3400 TDD:907.269.8411 Fax:907.465.3886 March 27, 2019 John Foutz PO BOX 167 SEWARD, AK 99664 RE: Application for Water Right: Case - LAS 32726 Request for Required Information and/or Documentation— Mr. Foutz: The Department of Natural Resources (DNR), Water Resources Section, received your "Application for Water Right" on March 14, 2019. Your application has been found substantially complete and was accepted for filing. Case LAS 32726 was initiated per 11 AAC 93.040. This date is the provisional priority date of any eventual water right resulting from this application. However, the following item(s) are required to fully complete your application at this time:. • Provide documentation,in the form of an Easement,Lease,Deed or notarized and recorded Water Use Agreement, which authorizes access to the requested water source as the requested water sources 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. • Provide a hydrologic study as the requested water quantity is more than 100,000 gpd from a stream. Advisories: • Be advised that a Alaska Department of Fish& Game (ADF&G) Fish Habitat Permit may be required at the time your Water Right Application is adjudicated. • Be advised that Federal Energy Regulatory Commission (FERC) documentation will be required at the time your Water Right Application is adjudicated. 41 Page 2 of 2 The above listed item(s) should be submitted to Carl Reese. If you have any questions or concerns about this matter, please feel free to contact me at (907)465-2533 or via e-mail at carl.reese@alaska.gov. Sincerely, Carl Reese Southeast Regional Water Manager& Statewide Hydroelectric Specialist Department of Natural Resources Division of Mining, Land, & Water Water Resource Section, Water Management Unit P.O. Box 111020 Juneau, AK 99811 cc. Andrew Baker, YourCleanEnergy LLC 42 City of Seward,Alaska Port and Commerce Advisory Board Meeting Minutes August 14, 2019 Volume 3, Page x CALL TO ORDER The August 14, 2019 regular meeting of the Port and Commerce Advisory Board was called to order at 12:02 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 Cad eEi Laura Schneider Lynda Paquette Eras comprising a quorum of the board; and Norm Regis, Harbormaster Brenda Ballou, City Clerk Excused—None Absent—Hughes, Lemas CITIZEN'S COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING—None APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Schneider/Jaffa) Approval of Agenda and Consent Agenda Motion Passed Unanimous Consent The city clerk read the following approved consent agenda items: Approval of the July 24, 2019 PACAB Regular Meeting Minutes. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Alaska Railroad Report by Christy Terry Chamber of Commerce Report by Cindy Clock Harbormaster Report by Norm Regis 43 City of Seward,Alaska Port and Commerce Advisory Board Meeting Minutes August 14, 2019 Volume 3, Page x Update from the Climate Action Plan Committee UNFINISHED BUSINESS —None NEW BUSINESS Resolutions 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. Motion (Jaffa/Schneider) Approve Resolution 2019-003 Terry passed the gavel to Vice Chair Jaffa and declared a potential conflict of interest because her husband was a member of the Board of Directors for the Chamber of Commerce, but he received no compensation for his involvement. Vice Chair Jaffa ruled that no conflict existed and passed the gavel back. There was no objection from the board. Terry said council scheduled a joint work session for August 26, 2019 with PACAB and the Chamber of Commerce to review chamber funding and priorities, clarify the city's vision for the future, and decide what role the chamber would play in that. Terry believed the chamber was the best entity to perform the marketing for the city, and wondered if council was considering having PACAB take over that role. She thought the chamber was handling the work professionally and successfully. Jaffa said the relationship between the city and the chamber had been in place for a long time, and it had been very successful. Jaffa appreciated the regular reports the chamber provided to both PACAB and council. He thought the chamber operated transparently, and saw nothing untoward about the current relationship; he wished the relationship to continue as it had been. Schneider fully supported the chamber being the marketing arm of the city. She also thought the city had a duty to take on some of the burden and responsibility for economic development, and suggested that an Economic Development Director position be created by the city. Schneider suggested that perhaps some of the bed tax funding could go toward at least partially funding the position; she saw the position as including grant writing, overseeing the city website for marketing purpose, and working closely with the chamber. Motion Passed Unanimous Other New Business Review and discuss the results and findings of the Lowell Canyon Hydroelectric Study. 44 City of Seward,Alaska Port and Commerce Advisory Board Meeting Minutes August 14, 2019 Volume 3, Page x Electric Utility Manager John Foutz said the final report indicated that the project itself was technically feasible, but was not financially feasible, for the city. The city would have to obtain approximately 80% of the funds through grants in order to make it economically beneficial to the city. Foutz would be furnishing the final report and recommendations to council at the August 26, 2019 meeting as part of the City Manager Report. Foutz had reached out to a hydrological engineer to provide the city with a flow study, which was a requirement of the Department of Natural Resources (DNR). The flow study would potentially be a three year process, and in response to Terry, Foutz said the challenges the city faced with conducting a flow study in the upper canyon related specifically to geography and technology. Although, Foutz added, the information gained from a flow study would be extremely valuable to have. Foutz said the U.S. Army Corps of Engineers was currently conducting a flow study in the lower canyon. If the city had the flow study from the upper canyon, it would enable the city to pursue grant funding. Jaffa thought the expense for a flow study would be money well spent and would yield very valuable information. In response to Foutz, Jaffa said finding the right partners to work with on this study would be critical to its success because the technology was new. In response to Terry, Foutz said he was waiting for the cost estimate for the flow study to come from a hydrologic expert. The board decided to take no action at this time, but was prepared to provide a recommendation to council, if requested. Discuss the status of the city's Interconnect Policy. In response to Paquette's request for a status update, Foutz said he had received updated information about the cost of transfer switches since the last PACAB meeting, and he would send that information to the board. The state's engineer provided some information pro bono to the city about the transfer switches. In response to Terry, Foutz said the city code currently provided for a resident to install their own dedicated transformer; in other communities, Foutz said multiple residents were allowed to connect to a single transformer. Schneider said Homer's policy required a transfer switch; the difference was in the type of transfer switch. In Homer, they allowed automatic reset, but with a time delay; when the power came back on, it would automatically reconnect when the power had been stable for two minutes. Schneider said, from her research, that kind of policy was fairly standard. Foutz agreed, but said Seward's electric/generator system was unique to Alaska. Jaffa didn't think having automatic reset was critical to have in Seward. Schneider said regardless of the switch discussion, she was upset that people had been trying to work with the city for years and had not been successful. Foutz said that the city allowed for people to connect, and the city asked people to bring them certain information relating to switches and engineering, but the people didn't bring that to the city, so that's why this program was not successful. 45 City of Seward,Alaska Port and Commerce Advisory Board Meeting Minutes August 14, 2019 Volume 3, Page x Terry said she thought people had to get their own transformers. Foutz confirmed that a customer was required to have their own transformer, among other requirements on a checklist. In response to Terry's inquiry that having a transfer switch would eliminate the need to have your own transformer, Foutz said in his mind those were two totally different things. In response to Jaffa, Foutz said he would be okay with adopting the policy for allowing multiple users on one transformer, because the engineer advised it would be acceptable. Terry reminded the board that they had previously approved an Interconnect resolution with PACAB's recommendation to council; that resolution would go to council in September. Foutz said his recommendation for the city's policy would be to include the transfer switch language and remove the language requiring each homeowner to have a dedicated transformer. Foutz passed around a print out of a transfer switch that would be acceptable for the city. PACAB suspended the rules to speak with Suzi Towsley. Suzi Towsley asked if Foutz's laydown would be made available to everyone. City Clerk Brenda Ballou affirmed the documents would be made available to the public. PACAB went back on the rules. In response to Ballou, Terry clarified that she wished to have PACAB's Interconnect resolution brought back at the September PACAB meeting, prior to bringing it forward to council. Schneider wanted to review the approved resolution and possibly make some changes to the recommendations. Schneider said she would furnish a fresh resolution to the clerk that included revised language. Review and edit the draft advertisement for the September 24, 2019 Climate Action Plan Community Meeting, and direct the clerk to place advertisement(s). PACAB edited the public notice to read: Notice is hereby given that there will be a Community Open House sponsored by the Port & Commerce Advisory Board to introduce the concept and involve community members in the process. INFORMATIONAL ITEMS AND REPORTS PACAB 2019 Goals Calendar PACAB Resolution 2019-01, PACAB Priorities from February, 2019 to February, 2020 PACAB Meeting & Work Session Schedule for September, 2019 Terry noted that the September meeting and work session dates had been flipped. 46 City of Seward,Alaska Port and Commerce Advisory Board Meeting Minutes August 14, 2019 Volume 3, Page x BOARD COMMENTS Jaffa reminded everyone of the interagency airport meeting tomorrow night; the more people that showed up and spoke up, the better. Lawrence was excited that the city was updating the Interconnect Policy. Schneider would be gone tomorrow and August 26, 2019. She thanked Foutz for updating the Interconnect Policy. Paquette thanked Foutz for the update on Interconnect Policy. Terry said go fish the derby. She thanked Towsley for attending the PACAB meetings. CITIZEN COMMENTS Suzi Towsley thanked PACAB for the work they did. She would be attending the airport meeting tomorrow night. She looked forward to getting the Interconnect Policy updated. BOARD AND ADMINISTRATIVE RESPONSE TO CITIZENS' COMMENTS Regis said there would be a Kenai-based flight service at the airport meeting tomorrow night. ADJOURNMENT This meeting was adjourned at 1:28 p.m. Brenda J. Ballou, MMC Christeffal Terry City Clerk Chair (City Seal) 47 Sponsored by: PACAB CITY OF SEWAR:D, AL.ASK.A PORT AND COMMERCE ADVISORY BOARD RESOLUTION 20I9-003 A RESOLUTION OF THE E SEWARD PORT Al"D COMMERCE ADVISORY BOARD, PROVIDING A RECOMMENDATION TO COUNC,111, TO UPDATE PORTIONS OF SECTION I4.I5. I€S,rER :I)NNEC"T'I N WITH CUSTOMER-OWNED ALT"ERNA 'IVE POWER SC:)U ('-'E GENERATION EQUIPMENT T WHEREAS, PAC:-AB's responsibilitics are listed in SC C 2. 0. i�cavvcrs auacl duties,and irrclucic providing input to the City Council on poi licy and procedural matters involving in the establishment and continuance o1 cornrrucrcial! activity, improving the quality cat" file and protecting the public's best interest and performing other cicutics as requested by the City Council; and WHEREAS, in December, 2017, COUricil dircc°ted PACAid to explore options t'or- alternative energy in Seward; and WHEREAS,1 ACAB believes that interconnection ot'c List orner-o%ried tialteru:aativcpower source generation ecluuptnerrt with the C.,uty s electrical clustrrbutrOrl system is a tacy cornponent of' responsible energy policy; and WHEREAS,the rules t'tarinterconnection arccstablished bySC:r"C° 14.154 Interconnection With C:'a.rS101ner-(.twmed Altern ative Power Sou rc e Generation =quipn,i :rrtN and WHEREAS,the Code was least updated in 2014 by Ordinance 201 4_003 an ordinance curl' the City Council of the C:: ity cal` Seward, Alaska, ara�crrclira °T'itic l of the C"ity"s ("ode cat` l Ordinances to provide for interconnection cat small renewable energy sources to the C ity"s electrical distribution syst.ern and WHEREAS, since this section of code was enacted in 2014, no homeowners in Seward have been able to Successfully connect to the C"ity"s electrical distribution system; and WHEREAS,araaending the cock to rcrracavc certain hardware requirements would lessen the financial and adniivaistrativc burden cat'intcrconnection while retaining compliance with all applicable codes and providing for the sat ty ofthc C"ity°s Elcctric Department employees and equipment-, and WHEREAS,these changes would taring Seward City C"tack in liras kvith other local and l? national utility interconnection policies. NOW, "THEREFORE, RE IT RESOLVED BY THE, PORT" AND COMMERCE 48 I'OWF ALIT) COMMERCE ADVISORY BOARD, RESOLUTION 2019-003 :✓ ADVISORY BOARD OF THE CITY OF SEWAR:D, ALASKA that: Section 1. The Port and C:°c:rmmerce. Advisory Board rccomni.ends the Seward City t oi,'rrrcil amend Seward City Code Section 1 ,1 .41;5 as, R')Howvs: (1)eIctilons are Bold tri1 th ° wr ; Additions are oldIndies) 1 J5. 1 .- Interconnection requirements, procedures, and rapplicration process for an alternative power sourr ce less than 2 kwm (<a) A .licrlti(jn._ln order to proceed with interconnection cif"am alternative power source,the customer must complete an application 1"or a new/rework. or electrical service and an interconnection application.The customer shall also provide equipment specifications,protection arrangements, and design drawings to the city for review.. (b) Compliance with codes and standards. Interconnections shall not be fueled by nor connected to any non-qualified alternative energy sources. Interconnection customers shall comply with all applicable local, state, and federal codes such as building codes, National Electrie Code (NEC), and National Electrical Safety Code (NE,SC) for the installation of`an 1 interconnection. Once operating, the city reserves the right to require the customer, at the customer's expense,to provide corrections, modifications,or additions to the interconnection as required or recomrxrcraded by government or industry regulations and standards. The city will provide written documentation of the necessary changes and a time frame to complete. if the customer fails to comply with the changes in the specified time frarne,the city will open and lock tlae interconnection. c .... distribution system's power- -qua.... an tereonneetion per. {c} Power quality and reliability. The interconnection with the electric system shall not cause any reduction in the quality and reliability of service provided to other city custorners.There shall be no generation of abnormal voltages or voltage fluctuations, and the harmonic content of the interconnection output must:be below that level which would cause interference with other customer loads, other utilities, or city facilities and. equipment. T'o minimise interference, the city requires the interconnection to meet the power quality standards presented in accordance with section 10, Recommended practices for Individual Consumers ofthe latest Institute of"Electrical and Electronics Engineers(IEEE)Standard 519, IEEE Recommended Practices and Requirernents for Harmonic Control in Electrical Power Systems. In addition to meeting all requirements identified in this document, the interconnection shall comply with all city ordinances and resolutions, and latest IEEE 1547, IEEE Standard Conformance Test Procedures for Equipment Interconnecting Distributed Resources with Electric Power Systems.: 49 PORTAND COMMERCE ADVISORY BOARD RESOLUTION 2019-003, -(d) Testing. Prior to initial energiration of the interconnection, an inspection and tests will be perfon-ned by both the interconnecting customer and city personnel. The purpose of the inspection and testing will be to determine if the generator and related equipment of the interconnection meet: the minimum requirements described by IEEE 1547, IEEE 519, and Ul- 1741, Underwriter Laboratories Inc,„Standard for Inverters,Converters,and Interconnection System Equipment for Use With Distributed Energy Resources. lased on the inspection, the city may elect to accept the installation and energize the interconnection. In the event that discrepancies are noted between the certified equipment and drawings previously provided to the city and time customer's systemn inspeet(A by the city, retesting may be required. The customer shall be solely responsible for all costs associated with any retesting. ( ) City inspection and customer maintenance record .._.The customer shall maintain the interconnection in good working order. The interconnection (ix., generator and associated equipmttent) is subject to inspection and retesting by the city upon reasonable notice each year after the unit is placed in service.The customer will assume full responsibility for the routine maintenance of the interconnection and associated protective devices. The customer shall maintain accurate records of all maintenance activities performed, These records shall record the date and time, the person(s) who performed the activities, and a brief description of the work. These records shall be remade available to the city for inspection at all times upon reasonable notice to the customer.Failure z to comply may result in the disconnection of the equipment or additional testing, as outlined in subsection,(e)above, The customer is solely responsible for all costs associated with any inspections and testing required, ( Visible lockable disconnect switch or electric break.-- disconnect accessible, visible, lockable. disconnect switch or electric break,whichever is applicable,is to be provided by the customer which is lockable in the open position only.This switch must be appropriately labeled,when locked in the open position for any of the following conditions, may be unlocked only by city personnel. The city will lock the switch in the open position under the following circumstances: (1) If it is necessary for the protection of line crew personnel when working on de-energized. circuits during a system emergency (7) If inspection of the interconnection reveals a hazardous condition or a lack of proper maintenance; (3) If the interconnection interferes with other customers,other utilities,or with the operation of the city's distribution system, (4) If the city deterrnines that the interconnection has generated power from a non-qualified alternative energy resource; or ( ) For general maintenance of the city's distribution system. The city will provide at least five days' notice, utticss the circumstances warrant shorter notice G y p y�' before locking the switch open fbr general maintenance as provided in condition (v) above. 50 ............­..­­­­­ ­­­­­.._._­­­-------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- PORT AND COMMERCE, ADVISORY BOARD RESOLUTION 2019-003 (h)(g) Metering./billit1g_. The customer shall install and maintain a kilowatt-hour meter,or meters, at the interconnection, capable of'registering the bi-directional flow of electricity at the point of interconnection at a level of accuracy that ineets,all applicable standards, regulations, statutes, and ordinances. The meter(s)may measure such parameters as tirne of delivery, power factor, voltage, and such other parameters as the city shall specify. The customer shall provide space for metering equipment as specified by the city with tile location of the meter(s)to be approved by the city. The customer is solely responsible for all costs associated with the purchase,, installation, and maintenance of all equipment required by the city in order to property meter the interconnection. (i)(h) Nominal voltages and phij a The generator nameplate voltage must be the same as one of the norninal voltages supplied by the city.The nonninal voltages are 120/240 V single-phase, 120/208 V three-phase, and 277/480 V three-phase. If the generator nameplate voltage is different from the city's nominal voltages, the customer must supply a dedicated generator transfonner that will provide the required nominal voltage. The required transformer connection, unless otherwise specified, is grounded wye-grounded wye. (%) Fault current increase and upgrading Nkii Li�ncnt.,Jri general, installation of a new generator will increase the fault current level at the custorner's electrical facility. This may require upgrading some of the custorner's equipment. The customer will assurnc full responsibility of upgrading customer's own equipment. (k) (f) Starting as induction rnot'or..-,.In general, induction generators start as motors also, synchronousm generators may be designed,to start as motors.The customer-owned generator starting as a motor shall meet the motor starting requirements prescribed by the city.The city may require the customer to provide, at CUStOrner's own expense, special or additional starting equipment. f"(k) Generating faci lit ygroundi iii.,. There are additional safety concerns that shall be addressed when considering circuit grounding of the interconnection interconnected to the city's utility system. To ensure proper grounding of the generating facility, the customer shall follow all applicable national, state, and local codes regarding grounding for applicable generating installations. (m)(1) Synchronization.The interconnection must be synchronized with the city's utility system at all times and the customer shall be responsible for the cost and maintenance of all synchronization equipment. }(n utornatic disconnection, "and Time nm-n-yal-reset­A4 z -Delaved _,ed reeenneet Automatic Reconnection. The interconnection sliall be designed to automatically disconnect and I he A- -., lockout when the city's service is interrupted for any reason.Arl : hall have a mannall rese Automatic Rreconnection of the interconnection to the city's utility system shall be done only on hot-bus/hot-line,/sync-check. --th FoHow-h-W--erboll outhorization by the eleetrie . ...e-eleetrie managers,desi,gnee, An autontatic recluse of the interconnection breaker(or interrupting device)is permitted once utility power has been restored a minitnum offive minutes. 51 PORT AND COMMERCE ADVISORV BOARD RESCIhLUT"I[ON 2019-003 ( ( Single phasing protection. The customer is advised that a phase-unbalance disturbance can the city's utility system call result in overheating of'the interconnection. A negative-sequence-type relay(current or voltage) could be necessary to initiate tripping under phase-Lin balance conditions and may also be used to block closing of the automatic disconnecting device if true city's utility system is single-plrawsed. (o) Gc,neratung facility protection, The customer is fully responsible for the protection of the generator and all of'its associated equipment. Protection should be provided for tlue customer's own equipment failures, faults, and other disturbances on the city's utility system. (p) Fault detection and automatic isolation. To prevent an interconnection frorn supplying current to a fault on the city's utility system, true interconnection shall be equipped to provide isolation from the city's utility system for any fault occurring on the city's utility system. The automatic isolation shall be done prior to the city's breaker (or recloscr) recl.osing and within a reasonable period of time, typically less than two seconds (120 cycles). The customer is solely responsible foi-all casts associated with the purchase,installation,and maintenance of all equipment required by the city in order to properly isolate the interconnection firom the city's utility system for any fault occurring on the city system.. r) (q) Under/over voltage relay. To prevent any hazardous operating conditions, the L interconnection shall be isolated from the city's utility system for any under-voltage(lower than 90 percent of nominal voltage) and over-voltage conditions (higher than 110 percent of nominal voltage)within two seconds(1.20 cycles).The customer is solely responsible for all costs associated with the purchase, installation, and maintenance of all equipment required by the city in order to properly isolate the interconnection from the city's utility system for any voltage level described above. Under/over frequency relay. To prevent any hazardous operating conditions, the interconnection shall be capable of disconnecting the customer's generation source from the city's utility system for any over-frequency and under-frequency conditions exceeding 60.5 11z or below 59.511.r within 5t7 r-nilliseconds(6 cycles).'lThe customer is stalely responsible for all costs associated. with the purchase, installation, and maintenance of all equipment rewired by the city in order to properly isolate tlae interconnection from the city's utility system for any frequency deviation described above. 0)(s) Dedicated distribution transfcarmer.T"o ensure reliable service to other city customers and to minimize all possible problems for other city custorners, the electric department may, when it cleenrc it necessary untler°the circumstances,mstanc es,require the interconnection shA to be interconnected to the city utility system through a dedicated-to-single-customer distribution individual transformer. This requirement moy be waived by the elleetrie department through wFitten author-Ua when it deems it appropriate ".Any cost associated to achieve dedicated- to-single-customer service shall be tlae customer's sole expense. LEON W(t) din file- h,ase Ycncrativa ac lit thr c-�alaase distiwibution transf a-urger.,A custoi-ner-owned single-phase generating facility 1 f)K°W or greater shall not be;allowed to be connected to a city three- 52 ......................................................................................... - --- ---------------------------------------------- PORT AND COMMERCE ADVISORY BOARD RESOLUTION 2019-003 phase distribution transformer. This requirement maybe waived by the electric department ffirougli written authorization when it deems it appropriate under the circlimstances. M (u) Surge protection. The custorner is responsible fear the protection of customer's interconnection from transient surge.,,, initiated by lighting,switching,or other system disturbances. (w) (y) Future modification or expansion, Any future modification or expansion of the interconnection will require a separate review and approval by the city. �-*) (w) Reservation of rig,hts. 11ie city reserves the right to require additional interconnection requirements for interconnection of alternative power source generating facilities in order to preserve the safety and integrity of the city's utility system. (y) (.r) Interruption of alternative power source energy deliveries, it is likely that the eity wil require alter-notive power iourees to be diseonneeted from the eity's eleetrien! distribution The electric department shall have the right at any tinie, without liability to the customer or any other person, to interrupt the alternative power source: (I) When reasonably necessary, in order for the electric department to construct, install, maintain, repair, replace, retriove, invest�igate,or inspect any equipment or any part of the electrical distribution system; or (2) If the electric department reasonably determines that interruption or reduction of deliveries or power is necessary because of a system emergency, a forced, outage, force majeure, or other operational considerations. (Ord. No. 2014-003, ,§ 2, 6-9-2(l14) Section 2. This resolution shall take effect immediately and be provided to Seward (,1ty Council before the end of October, 2019, PASSED AND APPROVED by the Port and Corm-nerce Advisory Board of the C"Ity of Seward, Alaska, this 15"' (lay cal"May, 2019. THE C'ITY F SEWARD, ALASKA -—— — —--------------------------- Ch e hair 53 PORT AND COMMERCE ADVISORY BOARD RESOLUTION 200-003 AYES: Paquette, Schneider, Lawrence, Jaff"'a, Terry NOES: None ABSENT: Hughes, Lemas Albs'rAf . None ATTEST: Brenda J. Ballou, Im C" City Clerk (City so n I � i„ 0,0 el " 61, j; 54 .06 PUBLIC NOTICE CITY COUNCIL HOSTING A PUBLIC FORUM regarding the SEWARD AIRPORT NOTICE IS HEREBY GIVEN that there will be a public forum conducted by the Seward City Council on the following item of business: Monday, September 16, 2019 6:00 — 8:00 p.m. K.M. Rae Building TOPICS: Discuss Seward airport options, develop a timeline/plan, obtain public input in preparation for the next meeting with the ADOT & FAA. ALL PUBLIC IS INVITED TO ATTEND. The K.M. Rae Building is located at 125 Third Avenue in Seward, Alaska. POSTED: Tuesday, September 10, 2019 City Hall bulletin board U.S.Post Office Harbormaster's Building Seward Community Library Museum 55 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 11pril17 • Housing 'irk 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 1.5 • Climate Action Plan Work Session .11111FIC, to eirld of 0 MA"1 IJS M11:1,'T AS INI11,D 111 August 56 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. q to mber 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 57 Sponsored by: 'AC AID CITY OF SEWARD, ALASKA PORT AND COMMERCE ADVISORY BOARD RESOLUTION OLUTION 2019- I. A tE HLu'rION OF THE SEWARD PART AND COMMERCE Mi IERCE ADVISORY BOARD (PAtC'A.B) RECOMMENDING COUNCIL APPROVAL OF PACA I PRIORMES FROM F bill IJA . Y 2019 to FEBRUARY 20 WHEREAS, PACAB's responsibilities are fisted in SCC§ 230,325 Powers and Duties and WHEREAS, City Council and PACAB heM a joint work session on March 27, 201 to review and update the current Priorities List; and WHEREAS,at its December 19,2018 Regular uelar Meeting the 11ACAB, revie),ved and relined time Priorities List. NOW, THEREFORE, BE IT RESOLVED by the Port and Commerce Advisory Board that: j f Seeliamn. I. The following List of Priorities th:rOu11 February 2020 is hereby approved by the Board and recommended to Council foi-their approval: PRIORITIES + Review taxes, especially vessel property to w Review the [larbor Tariff as needed. * Work to support industries tug Seward including the CumnTmu.nity Development Quota. (C °) fleets and related industries, mail & gas related industries, transportation, vessel maintenance and repair facilities and commercial/sport fishing; industry • 1]'..elp leadSeward Marine Industrial Center ( MI ) development • Prioritize City, Mate and Federal Priorities for Port &: Coi imerce Initiatives.(October') o Continue exploration of energy alternatives, sponsor energy fair and/or other continuing community education, develop a Seward Renewable Energy Plan, review Title 1.5 including process and procedures for° aher mative energy connection to city infrastructure • Continue to send a board rnernber to; the Alaska Municipal League Ammn:u.al.Conference (AM I-) o Create a Climate Action Plan (? "' ') tl�tl. Support the Blue Pipeline Initiative • Review utility infrastructure liar future growth amid developn-me t. 58 ----------------------- ...... Port and Conuiierce Advisory Board Resolution 2019-0 1 ...............- Section 2. 'This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the Port and C,onimerce Advisory Board of the City of Seward, Alaska this 2nd day of January, 2019. THE CITY,0 , ALASKA 7� H Christeffall Terry, Chai AYES: Hughes, Schneider, Paquette, L.,einas, 'Ferry NOES: ABSENT: Jaffa, i.awrence ABS'I"AIN: VAC "I' ATTEST- irr�c�nda J. ..... 'a q➢off MMC City Cle'rk (City Seal) SEEA-1 OF WAII, 59 MEMORANDUM Date: September 19, 2019 To: Port& Commerce Advisory Board From: Brenda Ballou, City Clerk RE: Clarification on the Renumbering of PACAB Resolutions 2019-003 and 2019-004 HISTORY At the August 14, 2019 PACAB meeting, the City Clerk included in the packet Resolution 2019- 003: Recommending City Council Continue With The Seward Chamber Of Commerce, Conference And Visitors Bureau As The Designated Lead Marketing Entity For The City Of Seward.. The resolution was approved. Following that meeting, the City Clerk discovered that on May 15, 2019, PACAB had already approved a resolution numbered 2019-003 for the Interconnect Policy: Providing A Recommendation To Council To Update Portions Of Section 14.15.4 Interconnection With Customer-Owned Alternative Power Source Generation Equipment. The Interconnect Policy resolution had never been printed, signed, and entered into Legislative History, so it was not on record. REMEDY & CLARIFICATION The City Clerk printed the original PACAB resolution numbered 2019-003 for the Interconnect Policy, and it has been signed, sealed, and is on record in Legislative History. The City Clerk renumbered the PACAB resolution dated August 14, 2019 to 2019-004. This resolution has been signed, sealed, and is on record in Legislative History. 60 September October 2019 September 2019 SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 5 6 7 1 2 3 4 5 8 9 10 11 12 13 14 6 7 8 9 10 11 12 15 16 17 18 19 20 21 13 14 15 16 17 18 19 22 23 24 25 26 27 28 20 21 22 23 24 25 26 29 30 27 28 29 30 31 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Sep 1 2 3 4 5 6 7 8:00am LABOR 6:00pm P&Z 12:00pm PACAB 12:00pm CC WS DAY HOLIDAY Joint Work WS(Council : Mtg(Council -Offices Session- Cham,bers),,,,,,,,,,,,„ Cham,bers),,,,,,,,,,,,„ Closed............................ Rescheduled (Council 7:00pm P&Z Mtg (Council Chambe,rs)............... 8 9 10 11 12 13 14 5:00pm CC Work; 5:30pm Meet the 6:00pm HPC WS Session Candidates Mtg(Council Ordinance I (Council er)................. 2019-014 Chambers),,,,,,,,,,,,,, ��,-----Qha,m,b 7:30pm HPC Mtg (Council (Council U)............Cham bers) Cha bets)............... I 7:00pm CC Mtg (Cham_ber51111....... 15 16 17 18 19 20 21 6:00pm CC 6:00pm P&Z 12:00pm PACAB 12:00pm CC WS Community I Joint Work Reg Mtg Mtg(Council Town Hall Mtn Session (Council Cham,bers).............. (KME Rae (Council „ Cham,bers),,,,,,,,,,,,,, Building) Chambers) I7:00pm P&Z WS (Chambers) 22 23 24 25 26 27 28 5:30pm Budget 6:30pm PACAB Kick Off WS Com munity (Council Open House (Seward J�.7:00pm CC Mtg LAbrary)........................... (Cham_bers)........... 29 30 Oct 1 2 3 4 5 Council Calendar 1 9/11/2019 9:09 AM 61 October 2019 oTu October2019 November2019 SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 5 1 2 6 7 8 9101112 3 4 5 6 7 8 9 13 14 15 16 17 18 19 10 11 12 13 14 15 16 20 21 22 23 24 25 26 17 18 19 20 21 22 23 27 28 29 30 31 24 25 26 27 28 29 30 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Sep 29 30 Oct 1 2 3 4 5 7:00am 12:66pm PACAB 1:00pm Canvass Municipal Mtg Board(Council Election(KM E i C,ha m be,C,�),,,,,,,,,,,,,,, Rae Bld ��................... 7:OOpm P&Z Mtg (Council Cham bers�,,,,,,,,,,,,,_ 6 7 8 9 10 11 12 12:00pm CC Work Session (Council 13 14 15 16 17 18 19 7:00 m CC Mtg 6:OOpm P&Z WS 12:00pm P A C A B (Chambers) ,, (Chambers) Work Session,,,,,,,,,,,,,,,, 20 21 22 23 24 25 26 12:00pm CC Work Session (Council Cha,m,bers),,,,,,,,,,,,,,,, 27 28 29 30 31 Nov 1 2 J��..7:00 m CC Mtg ,,,,,,,,,(Chambers) ,, Council Calendar 2 9/11/2019 9:09 AM 62 November 2019 November 2019 December 2019 SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 1 2 3 4 5 6 7 3 4 5 6 7 8 9 8 9 10 11 12 13 14 10 11 12 13 14 15 16 15 16 17 18 19 20 21 17 18 19 20 21 22 23 22 23 24 25 26 27 28 24 25 26 27 28 29 30 29 30 31 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Oct 27 28 29 30 31 Nov 1 2 3 4 5 6 7 8 9 ...... ................................................................. 7:00pm P&Z Mtg 12:00pm PACAB 12:00pm CC (Council Mtg....................................... Work Session a M b g r'5' Mtg(Council 1 11 C h 0 ),............... 10 11 12 13 14 15 16 ................................................................. Veterans Day �� 7:00pm CC Mtg 6:00pm HPC Work Session Mtg(Council ............... 7:30pm HPC Reg Mtg(Council ............... 17 18 19 20 21 22 23 ................................................................. 6:00pm P&Z 12:00pm CC Work Session Work Session J,7 Mtg(Council 24 25 26 27 28 29 30 Session Work 7:00 m CC Mtg 12:00pm PACAB Thanksgiving City Holiday .................................................................... ................................................................... J��............. ambers)...........j ...................Holiday......................... Council Calendar 3 9/11/2019 9:09 AM 63