HomeMy WebLinkAboutRes2021-088 CITY OF SEWARD,ALASKA Sponsored by: Bower
RESOLUTION 2021-088
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,SUPPORTING THE CITY MANAGER TO SEEK ADDITIONAL
FUNDS FROM THE FEDERAL INFRASTRUCTURE/STIMULUS
PACKAGE, AND ANOTHER TIME EXTENSION FROM THE ALASKA
ENERGY AUTHORITY FOR THE HEAT LOOP PROJECT GRANT
WHEREAS, the Alaska Energy Authority requested "a resolution from the City Council
that describes and affirms the city's intentions for the project moving forward"including:
• Proposed plan forward;
• Potential gap funding; and
• Requested extension time frame and rational schedule; and
WHEREAS, the city manager requests direction from council to expend the time and
resources seeking funds for the heat loop, and whether to fund a partial project for$1.4 million or
the full project for$3.6 million(both are 2020"pre-COVID-19"estimates and should be increased
50%); and
WHEREAS, the proposed plan forward is to first secure the necessary funding from the
new federal infrastructure and stimulus package by December 31,2021,then proceed to complete
the project by June 30,2023; and
WHEREAS,potential gap funding would be requested with the federal funding requests;
and
WHEREAS, the requested time extension would move to June 30, 2023 to allow more
time to purchase the equipment and supplies during these difficult COVID-19 delays and
shortages.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1.The Seward City Council has determined that it is in the public interest to pursue
funding for the heat loop project, and hereby authorizes the city manager to continue to work on
time extensions with Alaska Energy Authority to secure funds and complete the heat loop project.
Section 2. Funding is not requested at this time. The required match was approved through
Resolution 2019-022. If additional funds are required, a resolution will be brought forward to the
council for consideration.
Section 3.This resolution shall take effect immediately upon adoption.
CITY OF SEWARD, ALASKA
RESOLUTION 2021-088
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23rd
day of August, 2021.
TH CIT OF SEWARD, ALASKA
risty Terry, ay�
AYES: Osenga, McClure, Casagranda, DeMoss, Terry
NOES: None
ABSENT: Seese, Baclaan
ABSTAIN: None
ATTEST:
renda J. Ballo , MMC
City Clerk
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City Council Agenda Statement
Meeting Date: August 23, 2021
To: City Council
Through: Janette Bower, City Manager
From: Doug Schoessler, Public Works Director
Agenda Item: Resolution 2021-088: Supporting the City Manager to Seek Additional Funds
from the Federal Infrastructure/Stimulus Package, and Another Time
Extension from the Alaska Energy Authority for the Heat Loop Project Grant
Background and justification:
In 2018,the City of Seward accepted a grant of$725,000 from the Alaska Energy Authority(AEA)
for a heat pump system to serve 4 city buildings. The City committed to provide matching funds
totaling$157,000 for a total proj ect cost of$892,000. The paid design and engineering fees to"Your
Clean Energy, LLC" have totaled nearly their budgeted $138,000.
The original project timeline was from September 01, 2018 to December 31, 2019. AEA granted a
time extension until June 30,2021.As design was finishing in 2020 we solicited for an independent
professional cost estimator to evaluate the project costs to insure it was viable. The professional
estimator gathered information from all involved to produce the current time price. That total was
$3,600,934. This price was nearly $2.9M over the budgeted funds.
Thus,Your Clean Energy,LLC(YCE)wanted to try for a 2-building version of the project using just
the Library and the Annex. He worked with the profession estimator to reduce scope to keep the
project. That revised project scope cost came back at $1,440,884 increasing the City's cost to
$715,884.
The Covid-19 outbreak interrupted many things including any decisions or funding sources on this
project. Prior to the expiration of the grant agreement on June 30, 2021 we applied for another
extension.AEA gave us 90 days to find other funding as they wrote: "the reduced scope and increase
in cost has changed the economics of the project negatively. The project does not appear to be
economically viable based on AEA's assumptions."
City Manager Bower worked with AEA to seek more time to try to secure other funding through the
new federal economic stimulus package. This resolution asks for Council support and commitment
to AEA to continue efforts for additional funding for this heat loop project,or to end this proj ectnow
and move on to find other energy conserving projects.
The intent is to have Council and the City formally show their support to AEA for Administration to
continue seeking these project funds and extend the grant expiration timeline.
Consistency checklist:
Comprehensive Plan: 3.1.1.7, 2.1.1.7 energy projects
Strategic Plan:page 7 reduce energy costs
Other: N/A
Fiscal note: no fiscal impact at this time.
Funding is from: N/A
Finance Department approval:
Attorney Review:
Yes ❑ No F Not applicable ❑
Recommendation
City Council adoption of Resolution 2021-088.