HomeMy WebLinkAboutAM 2022-001 Council Direction on YCE Professional Services AgreementCity of Seward
Action Memorandum 2022-001
Subject: Provide City Council Direction to Administration Concerning the Port and
Commerce Advisory Board Resolution 2022-006: Recommending the City Council
Direct the City Manager to Enter into a Professional Services Agreement with
Your Clean Energy to Consult with the Heat Loop Ad Hoc Committee and Provide
Services as Authorized by the City Manager as Requested by the Ad Hoc
Committee in an Amount not to Exceed $19,520, and Appropriating Funds
Agenda Date: June 27, 2022
Background and justification:
On November 26, 2018, the City of Seward received a $725,000 grant from the Alaska Energy
Authority's Renewable Energy Fund to build the Ground Source/Seward District Heat System
demonstration project via Resolution 2018-089.
PACAB approved Resolution 2022-004 on February 16, 2022, to request that City Council direct
PACAB to create a committee to research funding opportunities for this project.
March 29, 2022, City Council approved Resolution 2022-038, authorizing 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.
On June 2, 2022, the Ad Hoc Committee voted unanimously to bring this recommendation forward to
PACAB for consideration.
During a special meeting on June 8, the Port and Commerce Advisory Board passed Resolution
2022-006, recommending that City Council direct the City Manager to enter into a professional
services agreement with Your Clean Energy to assist with the identification of grant sources and
provide grant writing services for the Heat Loop Project.
Action Memorandum 2022-001 requests city council direction.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: 3.1.1.2 continue to support efforts to develop alternate energy sources
Strategic Plan:
Other:
Certification of Funds
Total amount of funds listed in this legislation: $ 0 — a future resolution would expend $19,520
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
Boat Harbor Parking
Motor Pool Other
Unassigned Fund Balance*:
Available Unrestricted Cash Balance*:
Attorney Review.
RxYes
Not applicable
DISPOSITION
X Electric Wastewater
Water F1 Healthcare
Finance Director Signature:
x Provide City Administration Direction
Other:
Approved by City Council on June 27, 2022.
*unaudited numbers
Your Clean Energy
■
Celebrate the power of nature. —
Page 1 of 2
May 11, 2022
Janette Bower, City Manager
City Of Seward
PO Box 167
Seward, AK 99664
RE: Proposal For Support Services — District Heat Loop Project
Dear Janette:
This proposal is for anticipated time effort by Andy Baker PE of YCE (YourCleanEnergy) to
support additional grant opportunities and development of the City's District Heat Loop Project.
This proposal is based on the following:
BACKGROUND
A team effort by the City and YCE to develop the current Heat Loop Project began with YCE
completing a preliminary concept design and Economic Evaluation in 2015. YCE then provided
technical assistance to develop a scope of work for construction of a 300 ft deep test well in the
waterfront park near the Branson Pavilion. This test well was drilled and a 4" perforated PVC well
screen was installed to depth in August of 2015. YCE assisted to identify the Castaway
submersible probe that then City Building Inspector Stefan Nilsson used to make a series of
measurements to profile the temperature and salinity of the water column down this test well.
YCE updated the Economic Evaluation to include the test well measurements and the potential
of the heat resource below grade in the waterfront park along the bike path.
YCE presented the project to City Council and Admin in September 2015 and Council voted
unanimously to pursue a $725,000 grant from the AEA Renewable Energy Fund. YCE provided
assistance to complete the descriptive, economic, and technical elements of the AEA grant
application; the application successfully competed along with 52 other renewable heat projects
across the state of Alaska, and the grant award of $725,000 was made to the City with support in
late 2018 from then Governor Bill Walker. The City in 2019 secured the services of YCE for
Engineering Design of the project and to update the Economic Evaluation to reflect the final
design. Both the final Engineering Design and Economic Evaluation were completed by YCE in
August of 2020.
SCOPE OF WORK - YCE ongoing time efforts may consist of the following: meetings with and/or
presentations for PACAB, the PACAB Heat Loop Project Committee, City Admin and/or City
Council; meetings with private, state or federal grant agencies regarding the project; providing
historical and new information regarding the project and potential grant opportunities; general
correspondence with City Admin, Council, Mayor, PACAB and/or PACAB Heat Loop Committee
regarding the Project; and providing assistance to the City with technical and economic
information needed for grant applications the City is making for the Project.
3604 S. Charlestown Street, Seattle WA 98144 907-274-2007 www.yourcleanenergy.us
Your Clean Energy
Celebrate the power of nature. —
Page 2 of 2
ASSUMPTIONS — Andy Baker of YCE will be available via teleconference or zoom for meetings
and presentations with PACAB, City Admin and City Council, but will not travel to Seward unless
time and expenses for a trip are fully covered by the City.
DELIVERABLES — Following any meetings with City Admin, City Council or PACAB, meeting
minutes will be compiled and then distributed to attendees as a record of what was discussed.
Following any presentations to City Admin, City Council or PACAB, a PDF and power point show
of the slide presentation will be distributed by email by YCE to attendees. Review comments,
suggestions, or contributions to grant applications will be sent in PDF form to City Admin and
PACAB. These efforts allow progress to be documented with transparency thru the process of
developing funding for the project.
SCHEDULE — Support services are available to the City from YCE as needed thru December 31,
2022. An extension of YCE support services is available once projected budget herein is reached,
or if a time extension into 2023 is requested by City Admin.
COMPENSATION — The 2022 billing rate for Andy Baker, PE of YCE for grant and project support
is $160/hour. An invoice for each completed effort of the work will be submitted when the tasks
and deliverables for that effort is completed. An estimate of YCE support time that may be needed
thru December 31, 2022 is as follows, actual time effort may be more or less than this estimate:
Prepare for and attend meetings w/ Admin, Council, PACAB (24 hours) $ 3,840
Provide historical and new information regarding the project (24 hours) $ 3,840
General correspondence with Admin or PACAB on the project (24 hours) $ 3,840
Technical assistance with completion of grant applications (50 hours) $ 8,000
Total Compensation $ 19,520
If you have any questions regarding the above scope for support services, or our understanding
of the services that may be needed, please feel free to contact me,
Sincerely,
Andy Baker, PE
Owner, Project Manager
YourCleanEnergy LLC
3604 S. Charlestown Street, Seattle WA 98144 907-274-2007 www.yourcleanenergy.us