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HomeMy WebLinkAbout02032020 City Council WS ePacket - Electric w CITY COUNCIL WORK SESSION PACKET Topic: Discuss Electric Department rates, classifications, utility infrastructure management, current contract regarding power factor adjustment penalty, current status/process of selling electric utility, update on current demand meter project, update on the air-to-air project, clarifying billing, and timeline or schedule for pole replacement. Monday, February 3, 2020 at 6:00 p.m. Council Chambers City Council Work Session February 3, 2020 TABLE OF CONTENTS Ordinance 2019-016,Amending City Code Section 14.15 —Electricity, Article 415 — Interconnection Requirements, Procedures, And Application Process For An Alternative Power Source Less Than 25KW. Enacted October 28, 2019 Port & Commerce Advisory Board Minutes May 15, 2019 PA CAB recommends to council approving utility rebates for heat pump installs at 50150 or$1,700. Rural Energy Savings Program Affordable loans to help consumers implement cost-effective, energy efficient measures. Port & Commerce Advisory Board 2020 Priorities Sponsored by: PA CAB r% Introduction Date: October 14, 2019 Public Hearing Date: October 28, 2019 Enactment Date: October 28, 2019 CITY O11+ SEWARD, AAI.,,ASK ORDINANCE 21119-01.6 AN ORDINANCE OF THE CI"C""'Y` COUNCIL OF THE CITY OF SEWAR D, ALASKA, AMENDING CITY CODE SECTION 14.15 — ELECTRICITY, ARTICLE 415 — INTERCONNECTION REQUIREMENTS, E"'TS, PROCEDURES, AND APPLICATION PROCESS FOR AN ALTERNATIVE POWER SOURCE LESS THAN 25K.W WHEREAS, PACA.1 's responsibilities include providing input to the City Council dun policy and procedural nnat:ters involving the establishment and continuance of coo nrncrcial. activity', improving the cquaalnty of late and protecting the puubhe's best interest and performing other duties as red.U stcd.d by the City Council; and WHEREAS, in December, 2017, Council ddircctcd 11A.CATD to explore options liar alternative energy in Seward, nancd. WHEREAS, the rules fOr interconnection are established by S(X" 14.15A G Interconnection with ("u stomer-Owne d Alternative P0WC1- SOu"unce Generation Equipment aand WHEREAS, PACAli believes that interconnection of customer-owned alternative power source generation ccquaipt ncunt with the City's electrical distribution system is a key conn poncnt of responsible energy policy; and WHEREAS, the ("'ode was last update(] in 2014 by Ordinance 2014-002 in ordinance of the City (7ouancil of the pity cut° Se ard, Alaska, amen din; Title 14 cat"the t ity's Code of Ordinances to provide for interconnection ectionn of small renewable energy sources to the City`s electrical distribution system; since this section of code was enacted in 2014, no homeowners in Seward have been able to suucccssfu:ully connect to the C"ity's electrical distribution system; and. WHEREAS, amending the code to remove certain hardware requirements a, OUidl. lessen the. financial and administrative burden of intcrcd,nnncc6on while retaining compliance with all :applicable codes and providing l'or the safety of the (."it:y's Flcctric 1N eparttTlent cn°n loyccs and equipment-, and P IIEREAS, these changes would bring Seward City Code in line with other local. and national utility inlerconncct:ion pc, icics, u CITY OF SE WARD, ALASKA ORDINANCE 2019-016 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA HEREBY ORDAINS that: Section 1. Seward City Code TITLE 14.15.415 — INTERCONNECTION REQUIREMENTS, PROCEDURES, AND APPLICATION PROCESS FOR AN ALTERNATIVE POWER SOURCE LESS THAT 25KW is hereby amended as follows: (Deletions are Bold Str4kethr-oughs; Additions are Underlined Bold Italics.) 14.15,415 - Interconnection requirements, procedures, and application process " ran alternative power source less than 5kw. (a)� Application. In order to proceed with MU',rconilection of an alternative power source, the custorner must complete an application for a new/rework, of electrical service and ail 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 Electric Code (NEC), and National Electrical Safely Code (NESC) for file installation of an interconnection. Once operating, the city reserves the right to require the custorner, at the customer's expense, to provide corrections, modifications, or additions to the interconnection as required or recornmended by government or industry regulations, and standards. "I'lle 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 fi-arne, the city will open and lock the interconnection. stea s ........sy --"wer....q.ua1ft.y-.--a.nd---retiabifity-,--only- one M.- e r- v .., ­.. �11� Wreoffneetion P distr-ibu4ion4fan*former-wfll4w-mAhorifed-. (c) .PoWeEAa linty amid reliability.-The interconnection with the electric system shall not cause any reduction in the quality and reliability of service provided to other city customers. 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. To minimize interference, the city requires the interconnection to meet the power quality standards presented in accordance with section 10, Recommended Practices for Individual Consumers of the latest Institute of Electrical and Electronics Engineers (IEEE) Standard 5 19, IEEE Recommended Practices and Requirements for I larmonic Control in Electrical Power Systems. In addition to rilecting all requirements identified in this document, the interconnection shall comply with all city ordinances and resolutions, and latest IEEE 1547, IEEE, Standard CITY OF SFWAR.D, ALASKA ORDINANCE 2019-016 Conformance Test Procedures for Equipment Interconnecting Distributed Resources with Electric Power Systems. (d) `l"estin . prior to initial ener i,ration of the interconnection, an inspection and tests will be performed by both the interconnecting customer and city personnel. "file purpose of the inspection and testing will be to determine if the generator and related equipment of the interconnection meets the minimum requirements described by IEEE 1547, IEEE 519, and U , 1741, Underwriter Laboratories Inc., Standard for Inverters, Converters, and Interconnection ystern Equipment for Use With Distributed Energy Resources. based 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 the customer"s system inspected by the city, retesting; may be required. Tile cu.stcarner shall be solely responsible for all costs associated with any retesting. (c City ins pcction and customer rnaintenat c co m records. The customer shall maintain the interconnection in good working order. The interconnection (i.e., generator and associated equipment)p is subject.1 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 nrainteriance of the interconnection and associated protective devices. The customer shall maintain accurate records ofall maintenance activities performed. These records shall record the date and time, the person(s) who perforrrred the activities, and a brief"description of the work. These records shall he made available to the city for inspection at all times upon reasonable notice to the customer. Failure to comply may result in the disconnection of the equipment or additional testing as outlined in subsection (e) above. The customer is solely responsible f`or all costs associated with any inspections and testing required. (f) Visible, lockable disconnect switch or electric break An 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 rnust be appropriately labeled, when lacked in the open position for any of the hallowing conditions, play be unlocked only by city Personnel. Tire city will lack the,switch in the open position under tine following circumstances: (1) lt" it is necessary for the protection of line crew personnel when working earl de- energized circuits during a system emergency, ('?) if inspection of the interconnection reveals a hazardous condition or- a lack of proper m ai nt:enance, ( ) If the interconnection interferes with other customers, other utilities, or with the operation of the city's distribution syster"n; (4) 1f the city determines that the interconnection has generated power from a rlon- qualified altermative energy resource; or j1 (5) For general rarainter"rrance ca 'flee cty`'s distribution system. �j ---------------------------------------------------------- CITY OF SEWARD, ALASKA ORDINANCE 2019-016 The city will provide at least five days' notice, unless the circumstances warrant shorter notice, before locking the switch open for general maintenance as provided in condition (v) above. (h) (1!,) Metering/billing.—The customer shall install and maintain a kilowatt-hour rileter, or meters, at the interconnection, capable of registering the hi-directional flow of electricity at tile point of interconnection at a level of accuracy that meets all, applicable standards, regulations, statutes, and ordinances. The meter(s) may measure such parameters as time 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 the location of the meter(s) to be approved by the city. The customer is solely responsible fcrr all costs associated with the purchase, installation, and maintenance of all equipment required by the city in order to properly meter the interconnection, 0) (h) Nominal voltaXes_and ,has The generator narneplate voltage must be the same as one of the nominal voltages supplied by the city. The nominal voltages are 120/240 V single- phase, 1,20/208 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 transformer that will provide the required nominal voltage. The required transtim-ner connection, unless otherwise specified, is grounded wye-grounded wye. (j) (i) Fault current increase and upgrading equipment. In general, installation of a new generator will increase tile fault current level at the customer's electrical facility. 'rhis may require upgrading some of the customer's equipment, 'file customer will assume full responsibility of upgrading customer's own equipment. 00 0), 5�tLr In general, induction generators start as, motors; also, synchronous 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 customer's own expense, special or additional starting equipment. (1) (k) Qjgq 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) S rachrormi aticrn, 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. (at) (n) Automatic disconnection, and Tillie- Dely yCd Automatic Reconnection. The interconnection shall be designed to automatically disconnect and lockout when the city"s service is interrupted for any reason. The-deviee­s�� ORDINANCE 2019-016 have a manual res . Automatic Rreconnection of the interconnection to the city's utility system shall be done only on hot-bus/hot-line/sync-check. Following verbal authorization by the eleetrie manager or the designeeF-An automatic reclose of the interconnection breaker (or interrupting device) is permitted once utility power has been restored a nm nintum of ve minutes. (n) Singly phasirr,),, protection. The customer is advised that a phase-unbalance disturbance on the city's utility system can result in overheating of"the interconnection. A ta.egative-sequcnce- type relay (current or voltage) could be necessary to initiate tripping under phase-unbalance conditions and may also be used to block closing of the autornatic disconnecting, device if the city's utility systern is single-phased.. (o) Generating facility protection. The custorner is fully responsible for the protection of the generator and all of its associated equipment. Protection should be provided fior the custorner'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, the interconnection shall be equipped to provide isolation from the city's utility system for any fault occurring; can the city"s utility system. 1'he automatic isolation shall be done prior to the city's breaker (or recloser reclosing, and within a reasonable period of time, typically less than two seconds (120 cycles). The 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 the interconnection from the city's utility system for any fault occurring on the city system. (q) Under/over voltage relay, To prevent any hazardous operating conditions, the interconnection shall be isolated from the city's utility system liar any under-voltage (louver than 90 percent of nominal voltages and over-voltage conditions (higher than 110 percent of nominal. voltage) within two seconds (120 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. } (r) Under/over frequency rday.. .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 Hz or below 59.5 Hz within 50 milliseconds (ti 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 frequency deviation described above. (s) Dedicated (l tribution transformer. To ensure reliable service to either city custor7ners j, and to minimize all possible problems for other city customers, the electric department nu a rvlacn it deems it mmccessamy under time circumstances, require the interconnection shafl to be interconnected to the city utility systcrn through a dedicated-to single customer distribution. ----------------------­­...........----------------------------------------------------------------------------------------------------- ------------- ------------------------------------------------------------------------------------------------------------------------------ CITY OF SEWARDI ALASKA ORDINANCE 2019-016 individual transforiner. Thi§ r-----irefnent-4mW-bc-.-wai-ved--by.--the-ek-etr-k-4epar-4nwat4kr"git written authorizati when ift .wr-opf.al --eireunrAanees. Any cost associated to achieve dedicated-to-single-customer service shall be the customer's sole expense. (t) 5Ltq ale-,pha cLnei�qtLn facility -phase distribution transformer. A custorner- �i� _ _ _g -,,on three owned single-phase generating facility I OKW or greater shall not be allowed to be connected to a city three-phase distribution transforrTicr. This requirement may be wetived by the electric department through written authorization Pvhen it deems it ap1wopriate under the circumstances. J*) (u) Surge protection. The customer is responsible for the protection of customer's interconnection froin transient surges initiated by lighting, switching, or other systern 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. (Y,) (w) Reservation of rights. The 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 systern. (y) (r) ![!tqLjM.jjqj2.of altcrriative_pq�y�qj�gg_,gilergy cliveries. ................................. require-attern*tiv-e--powe-r-sour-ee-.,,I-o 1-e diseonnev, . fro the eity's elee,'Heal -1-stribution system whenever the city is generating its own power. The electric department shall have the right at any time, without liability to, the customer or any other person, to interrupt the alternative power source: (1) When reasonably necessary, in order for the electric department to construct, install, maintain, repair, replace, remove, investigate, or inspect any equipment: or any part of the electrical distribution systern; or. (2) If" the electric department reasonably determines that interruption or reduction of deliveries or power is necessary because ofa systern emergency, a fiorced outage, force niaJeurc, or other operational considerations. (Ord. No. 2014-003, § 2, 6-9-2014) Section 2. ']"his ordinance shall take effect ten (10) days following its enactment. r/ CITY OF SEWARD,ALASKA ORDINANCE 2019-016 ENACTED BY THE CT".1Y COUNCIL, O "I'HE CITY OF SEWAF1D, ALASKA this "' day of October, 2019. THE CITY OF SEWARD,, ALASKA ell " .� ChriTTttry, Mayor AYES: 1 a laa 9 CJse r 1�aM T Lane McClure, Sc escp Tcrr ..Ty NOES: None ABSENT: Butts ABSTAIN: None ATTEST: /i )aar Brenda J. Ballou, N4MC City Clerk (City Se4y"°1 0 11�% C'.1r gf'Senvard,, Alaska Pon and Commerce rde 4soty Bourd Minutes May 15, 2019 Volume 3, 374 l% CALL TO ORDER The May 15,2019,regular meeting of the Part and Commerce Advisory Board was called to order at 12:01 p.m. by Chair Christy Terry, OPENING CEREMONY Harbormaster Regis led the pledge of allegiance to the flap. ROLL CALL There were present: Christy Terry presiding, and Bruce Jaffa Laura.Schneider t,ynd'a Pacluette Erin Lernas Comprising a quorum of the board; and Absent—Carl Hughes excused Colby Lawrence excused Also, Present: Scott Mesraros, City Manager Norm Regis, Harbor Master CieNeil Flaherty, Executive Liaison. Suzi Towsley, Council 1,iaison CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Ester Porter with the Crust Guard, Marine Industry Training for Port Security and Sal`ety. She stated that she is out ofthe Anchorage Sector and she is here working with the railroad and the cruise ship terminal but she is available to the city regarding safety and security. Her job is to see how Seward is doing and what if anything needs to be done to improve the port's safety and security. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Paquette/Schneider) Approval of Agenda and Consent Agenda Motion Passed Unanimous SP EC IAI, ORDERS, PRESENTATIONS AND REPORTS .Alaska Railroad Report - Christy Terry submitted electronically, no additional information, Chamber of Commerce Report—Cindy Clock submitted electronically Flarbormrmaster Report Norm Regis submitted electronically but added that he asked the fire chief to come in case there were any building code questions based on our agenda. He answered questions regarding the launch ramp progress and about the upcoming Seward Mermaid. Festival. Administration Report — Scott Meszaros stated he was available to meet with anyone who is interested, please schedule an appointment. UNFINISHED BUSINESS 7A -Approve December 19 2018,January 2, 2019,February o,2019, March o,2019. and. April 3, 2019. minutes. Terry suggested that the approval of the Minutes to be at a meeting in July. NEW BUSINESS 8A-Proclamation in support of Spring Creek Correctional Center Maximum Security Prison. Motion (Jaffa/Paquette) Motion Passed Unanimous Consent 8B - Review and discuss progress toward Alternative Power Source Interconnect Code Revision Information-A Resolution of'the Port.And Commerce Advisory Board of the City O Seward, Alaska, Providing A Recommendation To Council To Update Portions Of SC:"C 14.1 .4 Interconnection With Customer-Owned Alternative Power Source Generation Equipment Motion (Term/Paquette) Approve Resolution 2019-00 Motion To Amend (Terry/Jaffa) Amend Resolution 2019-003 by striking"at the next possible Council Meeting"to"before the end of October 201.9." Motion To Amend Passed. Yes: Jaffa" Lemas,Terry No: Paquette,Schneider Main Motion Passed. Unanimous Consent C - Discuss and make recommendation to Council re; possible rebate credit for Air to Air Pleat Pump install Motion (Terry/Lemmas) The Port And Commerce Advisory Board recommends, to council approving utility rebates for heat pump installs at 50150 or Motion passed Unanimous Consent � pia %ir%i lei �l,%/%ir• i �" � .,„n. RuAr ll Energy Sala ings Pr 'graver R,E,SP) What does this program ado? The Rural Energy Savings Program(RESP),provides loans to entities that agree to make affordable loans to help consumers implement cost-effective,energy efficiency measures.This program,authorized by Congress in the 2014 Parris Rill,helps to build a. cleaner and more sustainable domestic energy sector for future generations.RESP will help lower energy Mills for rural families and businesses and will reduce barriers to investment in energy efficiency projects or activities. Who is an eligibler under thisr r . Eligible applicants include current and former Rural Utilities Service(RUS) borrowers,subsidiaries of current or former RUS borrowers,and entities that provide retail electric service in rural areas.: How is RESP different frroami, the Energy What are the ILoain Terms? Efficiency and Conservation Loan The RUS borrower is eligible to apply for a loan of up to Program E'E,CL. )l? 20 years at a 01 percent interest rate.(Up to 4 percent of the RESP offers a lower-cost financing option--a zero percent loan total may be used for startup costs.)The RUS borrower interest rate; can charge an interest rate of up to 3 percent for relending to * RESP also has a broader pool of eligible borrowers(utilities, qualified consumers. nonprofit organizations,municipalities and states),while EECLIP program borrowers are limited to utilities that serve What governs this program? rural areas These loans are made available under the authority of • RESP offers longer Doan terms:20 years versus 15 years for section 6407 of the Farm Security and Rurail Investment EECLP loans. Act of 2002(7 U.5.C. 107a) (Section 6407). How may funds be used How coo II l�e, rn more? Funds may be used to implement energy-saving measures, For more information about the program,please contact energy y cl ..;... -__ _ - o . or ever costs incurred b qualified consumers,. Robert Coates at o - -- oa s a How do we getstarted? Applications for the RESP program will,be accepted on a first.-come„first-served basis until funds are depleted.To be considered for fuinding,applicants should submit a letter of intent to_p __r ,_-,_c p;; y:More information is available in the annual funding announcement published in the Federal(Register. E „,� Sponsored pima: PACAl LKIFF" OF 5EWA1T11➢, ALASICA PORT AND COMMERCE ADVISORY BOARD RESOLUTION 0211-001 A 1Tlll'SOLUTION OF THE SEWARD ipCi R T"AND COMMERCE ADVISORY BOARD, RECOMMENDING;N:1T1NG COUNCIL APPROVAL, :1F " "TT +" I)OIC"T" AN,D COMMERCE ADVISORY BOARD 111111011UTIES FROM WHEREAS,PAt AB's resporiisib�ilita s aare list(.l irr C C 2,30,325 Poww ers aand Duta s;aaratl WHEREAS,at its December amber 1.8,2019 work session, l'A(.AI re rewva»tl and r efiracai their lI"rir.rrlfies and Goals list L"6r• 2020: l"w1C.1W, THEREFORE, BE IT RESOLVED BY THE PORT AND COMMERCE ADVISORY BOARD OF THE CITY OF SEWARD, A.LASKA that: Section 1. 1°h� following list ral" lwrlcrrrtics aand f:To Is 1'`rraraa 1~'ebrrraai 20�20 through 1"ebraraary 2021 is hereby approved by, the Board ayes(] ra:caarmrarracraded try Council for their aapprrwvaa.1 e. P IORIT' g • Support harbor operations and harbor users l-iclp lead e wvaard Marine Industrial Center( M1C) a ev loplu nt. Advise and support the Seward C;laaamb r of C:;'arrrarraerc in their marketing r°�rla�lrar the c ity M Explore and promote craggy arlt rraaativ�,s aural rrrrarraaarait�° .srastaaira<ahil ty practices Support actions and legislation that promote the viability of aa.11 businesses Promote quality of lrf for Seward residents SHORT TERM GOAL Review the vessel property tax and provide rtca:rrrarracraalaation to Council Sponsor an f"nergy workshop for the community « l;varlaraatc options for as heart pran►p rebate prograarn and present ar proposal to Council * flcwlt another joint work session with the Planning&Zoning Commission aahcrrat aa. MIC" overlay Work towards developing a Climate Action Plaara. Discuss and review the Jaanuaary, 2020 City Council work sessmcara with the. electric: '`' department ........................................................................................................................1.1.1-1- -.1-1- - -........................................................................................................................... ..................---...........-............... PORT AND COMMERCE ADVISORY BOARD RESOLUTION 2020-001 • Determine action needed to address halibut by-catch and provide recommendation to Counci I • Support the work of the Airport Connnittee • Create an ad hoc committee for SMIC Development and an ad hoc committee liar Energy • Send a board member to the Alaska Municipal I,eague Conterence • Priorifize City, State, and Federal Priorities for port and con-unerce initiatives • Evaluate city utility infrastructure I future growth • Participate in Joint Work Session with 1-fistoric Preservation cornaiiacc on Downtown Historic 0verlay District • Review the STICS Development Plan • l'I'valuate the Blue Pipeline Initiative anal give recommendation to Council on the city's continued investment o Provide input on the Capital Improvement Plan LONCITERM GOALS • Revi ew the f I arbor Tari IT(Target Completion 202 1') • Submit a Giniate Action Plan to Council for adoption (Far get Completion 2021 ) • U pd ate ; e ward Boat Harbor VIlan (Target Comp let io n 202 1) • Update SMIC Development Plan (Target Completion 2022) Section 2. This resolution shall take effect irnmedfately upon its,ado p'tio'n. PASSED AND APPROVED by the Port and (-ommercc Advisory Board of the (.'ity of Seward, Alaska, this 8" (lay of January, 2020. 'THE CITV OF SEWARD, ALASKA Ul uu chneider,Chair A Y E'S.- Smith, [lughes, Lawrence, Schneider NOf,"S. None ABSFNT: laffia, l...,ernas, Paquette ABSTAIN: None J/11 I PORT AND COMMERCE ADVISORV BOARD RESOLUTION 2020-001 ATTEST: —�_ ........ .........�__— .Jessica Stallard Ierk Deputy City (City Seal) or: p �f