HomeMy WebLinkAboutAM 2022-003 Council Approval of YCE PSACity of Seward
Action Memorandum 2022-003
Meeting Date: July 11, 2022
To: City Council
From: Janette Bower, City Manager (as directed by the city council on June 27)
Agenda Item: Action Memorandum 2022-003: Authorize the City Manager to Enter into a
Professional Services Agreement with Your Clean Energy to Provide
Consulting Services to 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
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.
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 is fully shovel ready for
construction and the benefits to the community are broad and include long-term economic and
environmental benefits. 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
the project has stalled due to dramatic increases in the cost estimates.
PACAB approved Resolution 2022-004 on February 16, 2022, to request 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 forward a recommendation to
engage Your Clean Energy 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.
On June 27, the city council passed Action Memorandum 2202-001, directing the city manager to
bring a resolution to council engaging Your Clean Energy for consultation services and other services
authorized by the city manager.
Funding in the amount of $19,520 is hereby appropriated from General Fund Unassigned Fund
Balance account no. 80040-0000-3400 within the 2022 operating budget.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: 3.1.1.2 Continue to suppc
Strategic Plan:
Other:
efforts to develop alternative energy sources
Certification of Funds
Total amount of funds listed in this legislation: $ 19,520
This legislation (✓):
Creates revenue in the amount of: $
x Creates expenditure in amount of: $
Creates a savings in the amount of: $
Has no fiscal impact
Funds are (✓):
x Budgeted Line item(s):
Not budgeted
Not applicable
19,520
Finance Signature:
Review
RV
Yes Attorney Signature:
Not applicable Comments:
Administration Recommendation
e✓ Adopt AM
Other:
DISPOSITION
Approved by City Council on July 11, 2022.
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