HomeMy WebLinkAboutRes2022-038 Heat Loop Committee From PACAB Sponsored by: Bower
Postponed: March 14,2022
CITY OF SEWARD,ALASKA
RESOLUTION 2022-038
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, DIRECTING PACAB TO CREATE AND LEAD AN AD HOC
COMMITTEE OF INTERESTED COMMUNITY MEMBERS TO
IDENTIFY AVAILABLE FUNDING SOURCES TO CONTINUE THE
GROUND SOURCE/SEWARD DISTRICT HEAT SYSTEM PROJECT TO
COMPLETION
WHEREAS, on November 26, 2018, the City of Seward received a$725,000 grant from
the Alaska Energy Authority's (AEA) Renewable Energy Fund to build the Ground
Source/Seward District Heat System demonstration project via Resolution 2018-089; and
WHEREAS, this project was designed to provide primary heat for the City
Library/Museum and City Hall Annex,with options to include the City Hall and Fire Station; and
WHEREAS,the project is fully shovel ready for construction; and
WHEREAS,the benefits to the community are broad and include long term economic and
environmental benefits; and
WHEREAS,the project has substantial merit,beyond a return on investment,by showing
the feasibility and benefits of using geothermal heat generated from Resurrection Bay; and
WHEREAS, the project has stalled due to a substantial increase in the projected cost;
according to the AEA in a letter dated June 23,2020,the original cost estimate for the project was
$882,497,but rose substantially to $3,600,934 after an independent cost estimate was conducted;
and
WHEREAS, funding sources from Federal Grants and private contributions are likely
available; and
WHEREAS,project costs can best be controlled by timely and creative approaches; and
WHEREAS,on February 16,2022,PACAB approved Resolution 2022-004 to request that
council direct PACAB to create a committee to research funding opportunities for this project.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The City Council herby directs the Port & Commerce Advisory Board
(PACAB) to create a seven member ad hoc committee of knowledgeable interested citizens to
CITY OF SEWARD, ALASKA
RESOLUTION 2022-038
identify and recommend available sources of funds to complete the Ground Source/District Heat
System Project.
Section 2. Appointment to the ad hoc committee will be via an application process that
includes the clerk advertising for letters of interest, presentations to the Port & Commerce
Advisory Board, and appointment by the PACAB Chair.
Section 3. PACAB will bring the recommendations of the ad hoc committee back to
council.
Section 4. The committee will not commit or expend any funds in relation to this project
without council's express authorization.
Section 5. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 29`1'
day of March, 2022.
TLE C , LASKA
risty Ter , Mayor
AYES: Calhoon, Casagranda, Wells, McClure, Osenga, Terry
NOES: None
ABSENT: DeMoss
ABSTAIN: None
ATTEST:
rends J. Bal ou, MMC
City Clerk
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City Council Agenda Statement
Meeting Date: March 14, 2022
To: City Council
From: Port and Commerce Advisory Board
Agenda Item: Resolution 2022-038: Directing PACAB to Create and Lead An Ad Hoc
Committee of Interested Community Members to Identify Available Funding
Sources to Continue the Ground Source/Seward District Heat System Project
to Completion
Background and justification:
On November 26, 2018, the City of Seward received a $725,000 grant from the Alaska Energy
Authority's(AEA) Renewable Energy Fund to build the Ground Source/Seward District Heat System
demonstration project via Resolution 2018-089. This project has been placed on the 2022-2027 City
of Seward Capital Improvement Plan list and is awaiting additional funding. The project was
designed to provide primary heat for the City Library/Museum and City Hall Annex, with options to
include the City Hall and Fire Station.
The project has stalled due to a substantial increase in the projected cost; according to the AEA in a
letter dated June 23, 2020, the original cost estimate for the project was $882,497, but rose
substantially to $3,600,934 after an independent cost estimate was conducted. On February 16,
2022, PACAB approved Resolution 2022-004 to request that council direct PACAB to create a
committee to research funding opportunities for this project.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive 3.1.1.2 Continue to support efforts to develop alternative energy sources.
Plan:
Strategic Plan:
Other:
Certification of Funds
Total amount of funds listed in this legislation: $ 0
This legislation (✓):
Creates revenue in the amount of: $
Creates expenditure in amount of: $
Creates a savings in the amount of: $
x Has no fiscal impact
Funds are (✓):
Budgeted Line item(s):
Not budgeted
x Not applicable
Unassigned Fund Balance and Available Unrestricted Cash Balance Information
Fund (✓):
General SMIC Electric Wastewater
Boat Harbor Parking F1 Water Healthcare
Motor Pool Other
Unassigned Fund Balance*: $ *unaudited numbers
Available Unrestricted Cash Balance*: $
Finance Signature: L�^;-1 �'"`
Attorney Review✓ Administration Recommendation
RxYes x Adopt Resolution
Not applicable Other: