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Home My WebLink About04162025 PACAB packetPort & Commerce Advisory Board Agenda Packet . fT. _ rt- .- - '''�, ti 'a. . - ; -_ F +r 4. • '- sue` ' 1 .. ++,,,a, :., J - T4 -- F 'Y s • 3 �r�= � _ -...._,A.,.- -` Photo by Ashleigh Lipsey Wednesday, April 16, 2025 City Council Chambers 12:00 p.m. 1963 1965 2005 kintual All-Amenca City 1 I I.. The City of Seward, Alaska PORT AND COMMERCE ADVISORY BOARD MEETING AGENDA City Council Chambers, 410 Adams Street Please silence all cell phones and devices during the meeting Chair Bruce Jaffa Board Member Norm Regis Harbormaster Tony Sieminski Vice Chair Benjamin Smith Board Member Jesse Groom City Clerk Kris Peck Board Member Dwayne Atwood Vacant Executive Admin Ashleigh Lipsey Board Member Melissa Schutter Wednesday, April 16, 2025 at 12:00 p.m. 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. CITIZEN COMMENTS ON ANY SUBJECT (Those who have signed in will be given the first opportunity to speak. Time is limited to 3 minutes per speaker and 36 minutes total time for this agenda item.) 5. APPROVAL OF AGENDA AND CONSENT AGENDA (Approval of Consent Agenda passes all routine items (marked with *) listed in this section. Consent Agenda items are not considered separately unless a board member requests. In the event of such a request, the item is returned to the Regular Agenda.) A. Minutes of Preceding Meeting 1)* Approve March 19, 2025 Port and Commerce Advisory Board Meeting Minutes 4 6. SPECIAL ORDERS, PRESENTATIONS, AND REPORTS A. Proclamations and Awards — None B. City Manager Report .8 C. Other Reports and Announcements 1) Alaska Railroad Report 15 2) Seward Chamber of Commerce D. Presentations (Presentations are limited to ten minutes each, excluding Q&A, and are limited to two per meeting unless increased by the board.) 1) Setting Electric Rates: Taylor Crocker, Electric Operations Supervisor 16 7. UNFINISHED BUSINESS — None Port and Commerce Advisory Board Meeting Agenda April 16, 2025 11Page 8. NEW BUSINESS A. Other Items 1) Kenai Aviation Selected for Essential Air Service in Seward 27 9. INFORMATIONAL ITEMS AND REPORTS A. Reminder of Meetings 1) Regular Meeting on Wednesday, May 21, 2025 at 12:00 p.m. (possible work session) 10. CITIZEN COMMENTS (There is no sign in for this comment period. Time is limited to five (5) minutes per speaker.) 11. BOARD AND ADMINISTRATION COMMENTS AND RESPONSES TO CITIZEN COMMENTS 12. ADJOURNMENT Port and Commerce Advisory Board Meeting Agenda April 16, 2025 21Page City of Seward, Alaska Port and Commerce Advisory Board Meeting Minutes March 19, 2025 Volume 4, Page CALL TO ORDER The March 19, 2025, regular meeting of the Port and Commerce Advisory Board was called to order at 12:00 p.m. by Chair Bruce Jaffa. OPENING CEREMONY Vice Chair Smith led the Pledge of Allegiance to the flag. ROLL CALL There were present: Bruce Jaffa, presiding, and Benjamin Smith Dwayne Atwood Melissa Schutter Jesse Groom Norm Regis comprising a quorum of the Board; and Tony Sieminski, Harbormaster Jodi Kurtz, Deputy City Clerk Kris Peck, City Clerk Ashleigh Lipsey, Executive Assistant Excused — None Absent — None Vacant - One CITIZEN COMMENTS ON ANY SUBJECT Phil Kaluza, inside city limits, spoke on heat pumps and rebates. He explained the incentives and benefits that everyone receives by installing heat pumps. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Regis/Atwood) Approval of Agenda and Consent Agenda Chair Jaffa added item #3 to New Business for the Heat Pump discussion. Motion as Amended Passed Unanimous 4 City of Seward, Alaska Port and Commerce Advisory Board Meeting Minutes March 19, 2025 Volume 4, Page The clerk read the following approved consent agenda items: Approve January 15, 2025, Port and Commerce Advisory Board Meeting Minutes SPECIAL ORDERS, REPORTS AND PRESENTATION City Administration Report Executive Assistant Ashleigh Lipsey highlighted the electric department and the tree clearing service that was in town. She spoke about the two new hires at the fire department and provided updates on the library, Community Development meetings, and the Teen Rec Room. Other Reports and Announcements Alaska Railroad Report Seward Port Manager Dwayne Atwood summarized from his written report and updated the board on the pipe ship, cruise terminal building, shore power project, and freight dock project. Chamber of Commerce Report Director of Chamber of Commerce Melissa Schutter updated the board that the chamber's Executive Director had resigned, and they are currently recruiting for a replacement. She shared that there is a new events guide available. She announced the Community Awards Night is March 20, 2025 at 6:00 p.m. at Gateway Hotel. Presentations JAG Alaska by Tim Jagielski NEW BUSINESS Other New Business Discuss Ordinance 2025-002 Jaffa asked the City Clerk Kris Peck to summarize the Ordinance 2025-002 and the changes to PACAB that were now in effect. Reports to Council Peck noted the revised council agenda featured a line for reports from the boards and commissions. It was an open invitation for the board to pass on reports to council for any meeting. Jaffa explained how the information discussed at PACAB could be shared with the City Council. 5 City of Seward, Alaska Port and Commerce Advisory Board Meeting Minutes March 19, 2025 Volume 4, Page Heat Pump Discussion Jaffa summarized the heat pumps and their benefits and incentives. PACAB discussed the cost of the heat pumps and the installation. Jaffa spoke to a grant that Phil Kaluza presented in a previous meeting and the concept of the heat pumps. He also briefly spoke about green climate and economics. PACAB discussed the cost and the affordability to local residents. Regis suggested asking the Electric Department for their input. Clerks Note — At this time, Harbormaster Tony Sieminski wanted to add to the city administration report and spoke to the laydown he presented to the board as the layout of the development plan and the SMIC leased lots. INFORMATIONAL ITEMS AND REPORTS PACAB Regular Meeting on Wednesday, April 16, 2025 at 12:00 p.m. CITIZEN COMMENTS - None BOARD AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Groom appreciated the JAG presentation but was disappointed upon learning that only 50 out of 185 workers were Seward residents. He hoped that this number will increase, and that the expansion is seen as a positive development for the community. Groom thought heat pumps were a great idea and could help reduce electricity costs for everyone, but he remained concerned of the high expense for individuals. Regis thanked everyone for the information on heat pumps and reminded everyone of the Chamber of Commerce Community Awards are tomorrow night. He appreciated working with JAG and commented that if one was to go to Safeway after work hours one would see a lot of JAG employees. Schutter said the Chamber of Commerce Visitor Guides are out and Community Awards are tomorrow night. Atwood stated how he was preoccupied with his Alaska Railroad Projects, but he was happy to see a Syncrolift at Sockeye Point and recalled how SMIC was in the same position a couple of years ago. Smith wished JAG well with their expansion projects. He noted the housing component was a factor and boards like PACAB can help with this issue. Housing impacts businesses around town and the growth here as a place to do business. Jaffa thanked and appreciated the board for being here and spoke to the one vacant position on PACAB. He commended the Seward Girls Basketball Team for their state championship and the 6 City of Seward, Alaska Port and Commerce Advisory Board Meeting Minutes March 19, 2025 Volume 4, Page success of the students. Jaffa supported the local schools and he was glad to see the two schools removed from the disposal list. Lastly, Jaffa said how Tim Jagielski is an upstanding gentleman and he had brought a big economy boost to this town. ADJOURNMENT The meeting was adjourned at 1:31 p.m. Jodi Kurtz Bruce Jaffa Deputy City Clerk Chair (City Seal) 7 City Manager Report Administration Forest Acres Afognak Subdivision: We are working with R&M, the Building Department, Finance, and the attorneys to bring back the information requested at the work session on March 24. The Kenai Peninsula Economic Development District (KPEDD) Industry Overview Forum will be Thursday, April 24th from 9am — 4pm at the Kenai Chamber of Commerce. For Registration information, go to: KPEDD.org Seward Community Library & Museum Museum Updates: • Resurrection Bay Historical Society needs volunteers to assist in running the Museum this summer. Library Updates: • The Seward Community Library & Museum would like to thank the Alaska SeaLife Center for welcoming our staff to the Octopus Encounter! We had a great time learning more about the SeaLife Center, the incredible octopus, and exploring ways we can continue collaborating on future projects. We're suckered in and can't wait to come back! • Celebrate National Library Week with Us! April 7-12! National Library Week is an annual celebration that highlights the vital role libraries, librarians, and library workers play in transforming lives and strengthening communities. Join us in celebrating with: g A free movie screening of Free for All: The Public Library O Fine forgiveness for lost or damaged books — please inquire at the front desk for details • A Volunteer Appreciation Event on Thursday at 5 PM — if you're one of our amazing volunteers, we'd love for you to join us! • Elements of Earth — April 22 from 3-5 PM Earth Day event with Timberline Learning Co -Op where kids will explore the four elements: water, fire, earth, air. 8 • Digital Literacy Workshops in April @ the Library —1:30 - 3:30 PM SCLM Meeting Room o April 2 - Mobile Device Basics (IOS) o April 9 - Mobile Device Basics (Android) o April 16 - Video Conferencing Basics (Zoom etc.) o April 23 - Cybersecurity o April 30 - Q&A Overview of all topics • One-on-one digital literacy tutoring sessions with Karen! Every Tuesday in April, 2 PM — 4 PM • Saturday @ the Library: Matinee Movie Join us on these Saturdays in April at 3 PM for a lineup of fun films! o April 5th- Jumanji o April 12- PBS Screening of "Free For All: The Public Library" o April 19- It's the Easter Beagle, Charlie Brown! o April 26- Inside Out Community Development • There will be three town hall workshops scheduled to solicit feedback from the community with regards to the City's Comprehensive Plan update. Those workshops will be... • Tuesday, April 22nd from 5:30-7:30pm at the UAF Rae Building • Wednesday, April 23rd from 5:30-7:30pm at the Bear Creek Fire Station • Thursday, April 24th from 5:30-7:30pm at the Seward High School • The Comprehensive Plan surveys are still available for the public to take and can be found at the links below: • Vision: https://survey123.arcgis.com/share/4c59d80d2c7d43a9b6e65082ae13e949 • Quality of Life: https://survey123.arcgis.com/share/793a0540a7764506abf5d19c75c1488d • Land Use: https://survey123.arcgis.com/share/11139b68b39e4310bc4fc3b2125e88c8 • Economy: https://survey123.arcgis.com/share/1567669fe8064b2e979ee39e24a75b51 • The Kenai Peninsula Borough is spearheading the development of a Comprehensive Safety Action Plan (CSAP) structured around the Safe System Approach (SSA) National Roadway Safety Strategy developed by the USDOT. Seward is one of the partner cities in the project and the Borough attended the April 8th Planning and Zoning Commission work session to provide an update on the plan and share the key findings and recommended solutions, next steps in the plan process, and how you can see the plan and provide comments. If you missed the presentation, you can watch the work session on the City's YouTube station and can find more information on the project website: https://www.kpb.us/safestreets • The Bureau of Land Management (BLM) is the Trail Administrator for the Iditarod National Historic Trail (INHT) and is responsible for facilitating the implementation of the INHT's Comprehensive Management Plan. The BLM held three virtual engagement meetings to share information about the process and gather input on the development actions to achieve 9 management goals. If you are interested in keeping up with this project, visit the project website to learn more about the project and sign up for the project newsletter: https://arcg.is/OCbiWz0 • The Community Development Director and City Planner attended the National Planning Conference in Denver, Colorado. The National Planning Conference is put on by the American Planning Association which is a great resource for navigating city development opportunities and challenges. Fire Department • Emergency Responses for the Year 2025: 151 • Fire and Life Safety Inspections 2025: 165 with 89 violations noted • Building permits YTD: 16 with a total valuation of $24,204,014.26 • 7 of our Volunteers just completed and passed EMT-1 • Fire Marshal Mallory just completed his Certified Fire Investigator Training and Chief McCoy attended the State Arson Conference for Continuing Education. • As a reward for Chief McCoy winning the State Fire Service Leadership award last year, the State of Alaska Fire Marshal's office paid all expenses for her to attend the highly acclaimed Fire Department International Conference (FDIC) in Indianapolis, IN, April 7-11 • Our members co -trained along with Bear Creek FD on roof ventilations techniques, ladder raises, and emergency window bailout training. Parks and Recreation Sports & Recreation: • Sports Leagues are wrapping up with a list of the winners for each league below o Rec VB League - We Showed Up Again o Comp. VB League - Big Dig Energy o BB League - Miss Melody o Rec Racquetball League - Patrick Lewis o Silver League Racquetball - Brian Wright o Gold League - Ongoing • Urbach's has also wrapped up with the final day featuring photo day for all the teams. • Archery is a wrap for the season, thank you to all who participated and Youth 360 for your partnership! • Library Laser Tag is in the books and was a fun -filled night! • Lots of staff heading out for their seasonal summer jobs, thank you to Kaelyn, Sarah, Adam and Zeke for all their hard work this winter • And finally, a big thank you and congratulations to our Recreation Specialist Amanda Sweeting who is moving on to become the Executive Director of the Chamber! 10 Campgrounds: • Our First Come First Serve Campground Forest Acres is now opened for camping! • The permanent restroom installation for Williams Campground has begun, utilities have been installed, and the beginning of the foundation process is underway. • Preparing for Campground opening • Grading Campgrounds and improving drainage in Resurrection Campground • Campgrounds open Apr 15 • Now hiring Campground attendants Park Maintenance: • Resurrection South Campground reconfiguration and added a fence for more uniform Campsites. • Completing the Iditarod picnic and day use area • Field prep for upcoming Softball Season • Creating new flower boxes to place around town, replacing old ones. Parking: • Parking permits are now available online. Go to www.cityofseward.us/parking • Prepping parking lots for opening May 1 Teen Rec Room: • The Teen Rec Room has seen 35 check ins in the second half of March (3/14-3/31) with an average facility visit of 1.9 hours per user. Checks -ins range from 1-7 per day during this period. • The TRR Calendar is available for the month of April! We will open early at 12 pm on April 11 and April 18 for the KBPSD Early Release & Vacation Day. • Breakfast for Dinner and Pizza Nights have been running smoothly and will eventually supplement a basic snack bar menu. • Teens have started pitching in to help clean the TRR and make food during food nights to earn points. These points can be used in the future to go on Teen Rec Room outings! 11 • Brian Wright hosted another round of the Writer's Workshop, helping foster kids creative writing pursuits. The next session is on April 9 from 6-7 pm. We have had 2-6 kids show up to each of these and are excited to watch it grow! All skill levels are welcome to join. Harbor Department • No major issues have been reported within the Harbor area. • Assistant City Manager Bickling and I will have a follow meeting with R&M on 4.17 for the new Harbormaster building and South Upland concept design. • We saw 11 lifts for the month of March on the 50-ton Travelift • Harbor Workers are preparing for the for the busy upcoming season. • Available staff took advantage on the Electric Departments training offer to fill extra seats. This training was held the first week of April and included Hazwoper awareness, fall protection, and confined space. SMIC • No major issues reported within the SMIC area. • The new lease for Jag's yard/rail extension project has been completed. Jag has sent it to their legal team and will be presented council soon. • We saw 4 lifts for the month of March on the 300 ton Travelift Electric Department • Shore Power Project Management Awarded to KPFF • After a thorough review of all submitted bids, KPFF was selected to manage the Shore Power Project. Their experience and expertise position them uniquely to successfully guide this significant infrastructure improvement for Seward. • AK Tree Service Continues ROW Clearing Efforts • AK Tree Service is actively clearing vegetation in our electric right-of-way areas. Given forecasts predicting a dry summer, this critical work enhances community safety by reducing potential fire hazards. • Joint Safety Training with Northern Industrial Training • City staff from multiple departments participated in comprehensive training conducted by Northern Industrial Training at the Seward Library. Sessions covered Hazardous Materials handling, Fall Protection, and Confined Spaces safety. • Early Spring Launches Construction Season Early • The unusually early arrival of spring has kicked off the construction season ahead of schedule. The Electric Department has already received approximately 30 job orders, indicating a busy summer ahead for our line crew 12 Public Works • The Hypo Chlorite Generator project design is now complete and will go out for RFP very soon • The new tunnel for Lowell Creek flood control is scheduled to finish design and go out to bid in February of 2026 with the bid award in October of 2026. Construction to start after award but most like in 2027 • The new Public Works Facility is working on options for funding and final design. It will be nice to complete the new facility and open up the current downtown location for new housing • The Lowell Canyon Water Storage Tank project is in design stage with CRW Engineering. The old 200,000-gallon storage tank is to be replaced with a new 500,000-gallon storage tank. This will improve the City's stored water capacity for emergencies and future growth. We expect the engineering and design to be completed in September of 2025. Construction will be in 2026 .f+ .. • . /.!•• -��w t• • - !Y �• _ r _ _ -;.i' ..• � f'-tom.+�xJ•.+• �fll: irk rr, • The Street Department is starting to sweep the city's streets for this month and the will the work on line and crosswalk painting. Road grading and pothole patching will also continue as needed. • The Shop is doing the annual winter/summer tire change overs for city vehicles. All vehicles should be completed by April 11 13 Department City of Seward - Human Resources Manager Report Staffing Information # of Job Title Positions Filled Administration City Manager 1 1 Deputy CiN Manager 1 1 Human Resources Manager 1 1 Executive Assistant 1 1 TOTAL: 4 4 Finance Director 1 1 Deputy Finance Director 1 1 Senior Accountant 1 0 Accounting Technician III 1 1 Accounting Technician II 1 1 Accounting Technician Utilities 1 1 Accounting Tech Payroll 1 1 Accounting Tech Accounts Payable 8 7 1 1 TOTAL: Public Works Director 1 1 Street Foreman 1 1 Maintenance Mechanic 3 3 Public Works Technician 1 1 Shop Foreman 1 1 Water and Wastewater Foreman 1 1 Water and Wastewater Operator 3 3 Building Maintenance Technician 2 2 TOTAL: 13 13 Community Development Director 1 Planner 1 Executive Assistant 1 TOTAL: 3 Electric Director 1 0 Operations Supervisor 1 0 Field Engineer 1 1 Office Manager 1 1 Electric Utility Cashier 1 1 Lineman 4 3 Plant Operator 2 2 TOTAL: 11 8 Fire Department Chief 1 1 Deputy Chief 1 1 Executive Assistant 1 1 Building Official 1 1 Fire Marshal 1 1 Firefighter/EMT 2 2 Fire Lieutenant 1 1 TOTAL: 8 8 Harbor Harbor Master 1 1 Deputy Harbor Master 1 1 Office Manager 1 1 Executive Assistant 2 2 Harbor Worker II 6 6 Harbor Worker III 1 1 Seasonal - Summer Laborer Part -Time 1 0 Seasonal - Summer Laborer Full -lime 1 0 TOTAL: 14 12 IT Director 1 Senior IT Tech 1 IT Technician 1 3 TOTAL: Library Director 1 1 Deputy Library Director 1 Library Technician 1 1 Curator 1 1 Library Aide 1 1 Seasonal - Aides 2 2 TOTAL: 7 7 Police Chief 1 1 Deputy Chief 1 1 Sergeant 1 1 Patrol Officer 8 7 Executive Assistant 1 1 Corrections Sergeant Unfunded 1 0 Corrections Officer Unfunded 4 0 Corrections Officer Unfunded 1 0 Dispatch Supervisor 1 1 Dispatcher 5 5 Animal Control Officer 1 1 Animal Control Officer Assistant 1 1 DMV Clerk TOTAL: 271 210 Parks & Recreation Director 1 Deputy Director 1 Executive Assistant 1 Campground Coordinator 1 Sports & Rec Manager Recreational Specialist 1 Park Maintenance Supervisor 1 TYC Recreation Assistant 1 Seasonal - Summer 1 7 Seasonal - Winter 2 TOTAL: 5 17 City Clerk's Office City Clerk Deputy City Clerk Executive Assistant TOTAL: Total number of authorized positions: 126 Total number of filled positions: 105 14 ALAKA RAILROAD Port Activity Update April 16, 2025 THE ALASKA RAILROAD'S MISSION -- Through excellent customer service and sound business management practices, provide safe, efficient, and economical transportation and real estate services that support and grow economic development opportunities for the State of Alaska. Port Traffic • The annual Alyeska Pipeline sponsored spill response training was scheduled for April 13-14. • An estimated 7,700-plus tons of steel pipe is due to arrive on the cargo ship Ocean Dream on April 25. • The 2025 cruise ship schedule now includes 61 ships and 84 total ship days at the dock. The first ship, the Carnival Luminosa, arrives on April 26 and the final ship will be the Viking Orion on September 21. • A plaque exchange ceremony aboard the Viking Venus, to include City officials and port staff, is tentatively scheduled for May 1. • The 2026 cruise ship season now includes 70 ships and 90 total ship days at the dock. That schedule also includes a four -ship day on August 6. Port Capital Projects • Alaska Built Construction & Design recently finished repairs to the west cruise dock entrance (reinforcing the deck slab), allowing for one -lane passage of buses and heavy vehicles. • On April 4 the Alaska Railroad finished the installation of underground communications line conduit for the new terminal building. • The cruise dock and terminal building replacement continues to move forward. Initial stages of the $137 million project include new water and fuel line installation. The major demolition will begin in September. More information is available at: https://sewardcompany.com • The cruise ship dock and terminal project will benefit from $45 million in anticipated EPA funding for vessel shore power. The Alaska Railroad worked with the municipality to submit for the Clean Ports Program grant. • The freight dock expansion project is still on schedule to begin in late 2026. Most of the cost will be met by a $19.8 million federal grant, with $5 million in ARRC matching funds and a gravel contribution by the City of Seward. More than 60,000 cubic yards of project fill has been staged. Dwayne Atwood, Accredited Maritime Port Executive Seward Port Manager 907-265-2696 office 1907-362-6038 mobile mailing: PO Box 95, Seward, AK 99664 physical: 913 Port Avenue 15 16 Introduction • Purpose of rate setting • Importance of fair rates • Overview of considerations ilrillll laoma-_Evrraffi Before fr. -tt. 44rirkNY. 9 ' , n Ry e as 1 k -1,T.14-P1 After KWhri§four = �Lcos� no,R 17 Cost of Service • Generation Costs • Transmission and Distribution Costs • Operations and Maintenance • Administrative and billing expenses Costs Functional Assignment Protluetioit Costs Transmission Costs Classification Allocation Demand Distribution Costs Oiler Demand C'iist iti.ei Oust, Spec. A - i ° Ll- ' — Rc:5,idential Small cT Larne Power Outer Groups 18 Load Profiles & Demand Analysis • Peak demand management • Seasonal variations • Customer usage patterns PEAK SHAVING WITH BATTERY ENERGY STORAGE SYSTEMS Battery discharging period Battery charging period TIME 'This graphic is a simplified representation for illustrative purposes only • 19 Rate Design Objectives • Full cost recovery • Fairness and equity • Encouraging efficiency and conservation • Simplicity and transparency sincerity tg_ ciclrW'l flpenne5 truth aecur8ey _t� f a r to ro honesty eltevability Hess 20 Energy Efficiency & Sustainability • Incentive programs for efficiency • Promoting renewable energy integration • Environmental impact considerations .1;_Isr:i.r.:r axw Q}dQaciicxal rcrtgv Haw ?Vurrlrarxrrplart N - Resilertl], carrornrchl, argil / Mirada! co mum. F• 1 ▪ } 1 ESS 1 r Darn (lrydruelearityl EV 21 Regulatory and Policy Compliance 1 • Compliance with local, State, and Federal regulations • Policy alignment and approvals • Environmental standards 22 T Custom Accept Comm • Affordability • Effective cor strategies • Customerec transparency a E. - munication ation and 1 f r Ary ti r 11 eTi i -.1 ■-elm - J Tl - 1.9 - . Lr ' J y T lit -•1 r rAm . a a Competitiveness and Market Conditions 1 The Benefits of Competitive Benchmarking Improved Performance Strategic Insight `ompetitors.app Cost Efficiency Customer Satisfaction • Comparison with alternative energy sources (natural gas, oil) • Competitor rate benchmarking • Adjusting to market trends 24 Risk Management • Ensuring revenue stability • Minimizing financial risks • Accurate Forecasting Rates done right, now. Electric Utilities need to be acting now to keep up with the complexity of electrification that is upon us. When rates and their end -to -end processes are done right and digitized, we can accelerate our clean energy future in a scalable and reliable manner. One true rate engine. Utilities that leverage an enterprise rate engine are able to meet the demands of the modern grid, drive program and rate adoption, and accurately serve their customers. Deploy rate models faster. Personalize & measure rate programs. Accelerate rate adoption. Streamline complex billing. gridx 25 Conclusion and next steps • 2025 AMI install • Review data from AMI • Model special rate classes • Questions? DERjf zl Smart L � Meter -r Customers side MIMS Outage Management System Distribution Management System Other systems 1 Utilities side 26 UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Issued by the Department of Transportation on the 31 st day of March, 2025 Essential Air Service at SEWARD, ALASKA (FAIN 69A3452560573)1 under 49 U.S.C. § 41731 et seq. Order: 2025-3-24 Served: March 31, 2025 DOT-OST-1997-2942 ORDER SELECTING AIR CARRIER Summary By this Order, the U.S. Department of Transportation (the Department) selects Kenai Aviation Operations, LLC (Kenai Aviation) to provide Essential Air Service (EAS) at Seward, Alaska, for the two-year term from May 1, 2025, through April 30, 2027. Kenai Aviation will provide Seward with six weekly round trips to Ted Stevens Anchorage International Airport (ANC) from May 1 to September 30 of each year (peak season), and three weekly round trips to ANC from October 1 through April 30 of each year (off-peak season), utilizing 9-seat Tecnam Traveller P2012 aircraft. Subsidy for this service is $529,050 for year one, and $508,037 for year two.2 Background By Order 2002-5-17 (May 24, 2002), the Department ended subsidized EAS at Seward, following written notification from the Alaska Department of Transportation and Public Facilities (the Alaska DOT) that "there is not sufficient passenger traffic to justify continued EAS subsidy for air service to Seward at this time." In its 2002 letter, the Alaska DOT noted that, while it was consenting to the withdrawal of subsidy support for Seward at that time, the State of Alaska retained its right to request the re -institution of service in the future, should circumstances warrant.3 1 FAIN = Federal Award Identification Number. 2 Such subsidy is calculated on a fiscal year basis, subject to the availability of funds. 3 See Order 2002-5-17, May 24, 2002, available at https://www.regulations.gov/document/DOT-OST-1997-2942- 0011, quoting the letter from the Alaska DOT. 27 -2- On April 5, 2024, Kat Sorenson, City Manager of Seward, sent a letter to the Department requesting that Seward be reinstated into the EAS program. Ms. Sorenson's letter stated that: Seward is a vital community on the Kenai Peninsula, but its lack of scheduled air service presents challenges for residents, businesses, and visitors. In addition to our local community, Seward will soon be home to the regional Chugachmiut Native Health Clinic, which will bring people from villages and communities across the region to Seward, and air travel will often be the best option for their journey.4 On August 28, 2024, the State of Alaska also submitted a letter to the Department expressing support for the City of Seward and its reinstatement in the EAS program.5 By Order 2024-10-13 (October 17, 2024), the Depaitiiient solicited proposals from air carriers interested in providing EAS, with or without subsidy, at Seward. In response, the Department received proposals from Reeve Air Alaska, LLC (Reeve Air) and Kenai Aviation. Summary of Air Carrier Proposals Reeve Air proposed providing Seward with six weekly round trips to ANC in the peak season, utilizing Beechcraft King Air aircraft, and three weekly round trips to ANC in the off-peak season, utilizing Beechcraft King Air aircraft, for an annual subsidy amount of $695,800 in year one, and $729,540 in year two. Reeve Air's proposal also offered an option for service for an additional two years of service, with a subsidy request of $766,017 in the first option year (year three), and $804,318 in the second option year (year four). Kenai Aviation proposed providing Seward with six weekly round trips to ANC in the peak season, utilizing Tecnam Traveller P2012 aircraft, and three weekly round trips to ANC in the off-peak season utilizing Tecnam Traveller P2012 aircraft, for an annual subsidy amount of $529,050 in year one, and $508,037 in year two. The complete public file, including air carrier proposals, for EAS at Seward may be accessed online through the Federal Docket Management System at www.regulations.gov by entering the community's docket number in the "Search" field. Community and State Comments The Department received a request to extend the December 9, 2024, deadline for submitting comments. Finding the request to be in the public interest, DOT granted it and extended the deadline to December 19, 2024.6 4 See "City of Seward, Alaska - Request for Essential Air Service Program," Apr. 5, 2024, available at https://www.regulations.gov/document/DOT-OST-1997-2942-0012. 5 See "State of Alaska, Department of Transportation and Public Facilities (Correspondence)," Aug. 28, 2024, available at https://www.regulations.gov/document/DOT-OST-1997-2942-0013. 6 See Grant of Request for Extension of Time, available at https://www.regulations.gov/document/DOT-OST-1997- 2942-0018. 28 -3- During this comment period, the Department received a comment from The Honorable Peter Micciche, Mayor of the Kenai Peninsula Borough, which stated:7 I am very supportive of Kenai Aviation Operations, LLC proposal to provide scheduled air service for Seward, Alaska. Seward has gone without scheduled service for approximately 20 years, which has caused a negative impact on the community for obvious reasons. I have personally worked with Kenai Aviation since the recent acquisition and have been impressed with the investment, equipment, training, and safety record since the new management took over the operation. Kenai Aviation spearheaded the development of a new instrument approach procedure in Seward that provides safety and reliability in spite of the challenging maritime environment at the Seward Airport. Safety procedures practiced by Kenai Aviation would not have been possible without their investment in modern aircraft technology for our local Kenai Peninsula communities. In addition to Mayor Micciche's comment above, multiple members of the community, along with several local businesses, submitted comments in the docket. Many of the community comments received expressed general support for EAS at Seward but did not state support for a certain air carrier. Of those that expressed a carrier preference, a majority supported Reeve's proposal. Decision Title 49 U.S.C. § 41733(c)(1)8 directs the Department to consider, among other things, six factors when making an air carrier selection for a community in Alaska where basic EAS will not be provided without compensation:9 (A) the demonstrated reliability of the applicant in providing scheduled air service; (B) the contractual, marketing, code -share, or interline arrangements the applicant has made with a larger carrier serving the hub airport; (C) the preferences of the actual and potential users of air transportation at the eligible place, including the views of the elected officials representing the users; (D) whether the air carrier has included a plan in its proposal to market its services to the community; (E) for an eligible place in Alaska, the experience of the applicant in providing, in Alaska, scheduled air service, or significant patterns of non-scheduled air service under an exemption granted under 49 U.S.C. § 40109(a) and (c)—(h); and (F) the total compensation proposed by the air carrier for providing scheduled air service. In addition, 49 U.S.C. § 41732(b)(1)(B) requires basic EAS to include a level of service at least equal to that provided in 1976 or two round trips a week, whichever is greater, except that the Secretary of Transportation and the appropriate State authority of Alaska may agree to a different level of service after consulting with the affected community. In analyzing the proposals under these factors, the Department finds that both Kenai Aviation and Reeve Air have demonstrated reliability in providing scheduled and non-scheduled air 7 See Comment from Mayor Peter Micciche, available at https://www.regulations.gov/comment/DOT-OST-1997- 2942-0107. 8 As amended by the FAA Reauthorization Act of 2024, Pub L. No. 118-63, May 16, 2024, 138 Stat 1025, 1214- 1221. 9 The Department did not receive any proposals to provide EAS at Seward without subsidy. 29 -4- service in Alaska, including through service to the greater Kenai Peninsula region of the state. Both air carriers currently provide on -demand charter service to Seward, and Kenai Aviation recently developed specialized approach procedures at the Seward Airport to help address weather challenges. Neither Kenai Aviation nor Reeve Air have contractual, marketing, codeshare, or interline arrangements with larger carriers serving the hub airport. Reeve Air included $30,000 in its proposal to market the air service; Kenai Aviation stated that it would carry out a flexible marketing strategy but did not specify a dollar amount committed to this effort. With respect to the preferences of the community, as stated above, many of the community comments received did not express support for either air carrier but instead stated their general support for restoration of EAS at Seward. Of those that did express support for one carrier over the other, a majority supported Reeve, though the Mayor of the Kenai Peninsula Borough and several other community members and local businesses stated a preference for Kenai Aviation and noted Kenai Aviation's investment in designing new instrument approach procedures at the airport. Regarding total compensation requested, Kenai Aviation proposed an equivalent level of service to Reeve Air, but at a substantially lower subsidy request. Kenai Aviation's proposed subsidy is $166,750 lower than Reeve's proposal in year one and $221,503 lower than Reeve's proposal in year two. Upon considering all of these statutory factors in the context of the circumstances as a whole, the Department finds that Kenai Aviation's proposal aligns best overall with the factors, specifically that Kenai Aviation has experience serving Seward Airport and has invested in providing reliable service in the community and it will provide an equivalent level of service for the community as Reeve but at a lower cost. Therefore, the Department selects Kenai Aviation for a two-year term at Seward, Alaska. Air Carrier Fitness Title 49 U.S.C. §§ 41737(b) and 41738 require that the Department find an air carrier fit, willing, and able to provide service before the Department may subsidize it to provide EAS. Kenai Aviation is subject to the Department's continuing fitness requirements, and no information has come to the Department's attention that would cause the Department to question the air carrier's fitness at this time. In addition, the Federal Aviation Administration has not raised concerns that would negatively affect the Department's fitness findings. The Department therefore concludes that Kenai Aviation is fit to conduct the operations proposed at Seward. This Order is issued under authority redelegated by the Under Secretary of Transportation for Policy in 49 CFR § 1.25a(b)(6)(ii)(D), as further authorized in 49 CFR § 1.60(b). Accordingly, 1. The Department selects Kenai Aviation Operations, LLC to provide Essential Air Service at Seward, Alaska, from May 1, 2025, through April 30, 2027, in accordance with the proposal set forth in Appendix A, and establishes the annual subsidy rates as described in Appendix B; 30 -5- 2. The Department makes this selection contingent upon receiving properly executed certifications from Kenai Aviation Operations, LLC that it is in compliance with the Department's regulations regarding drug -free workplaces and nondiscrimination, as well as the regulations concerning lobbying activities;10 3. The Department directs Kenai Aviation Operations, LLC to retain all books, records, and other source and summary documentation to support claims for payment, including copies of flight logs for aircraft used to provide EAS under this Order and sold or disposed of, and to preserve and maintain such documentation in a manner that readily permits its audit and examination by representatives of the Department. This documentation shall be retained for three years from the last day of service under this Order, or such longer period as the Department may notify the air carrier. If any litigation, claim, or audit is started before the expiration of the three-year period, the records must be retained until all litigation, claims, or audit findings involving the records have been resolved and final action taken. The air carrier may forfeit its compensation for any claim that is not supported under the terms of this Order; 4. The Department finds that Kenai Aviation Operations, LLC is fit, willing, and able to perform Essential Air Service at Seward, Alaska; 5. This docket will remain open pending further Department action; and 6. The Department will serve this Order on the State of Alaska Department of Transportation and Public Facilities, the City Manager of Seward, Alaska, Kenai Aviation Operations, LLC, and Reeve Air Alaska, LLC. By: (SEAL) CINDY A. BARABAN Deputy Assistant Secretary for Aviation and International Affairs An electronic version of this document is available at www.regulations.gov 10 The certifications are available online under "Reports and Publications" at http://www.transportation.gov/office- policy/aviation-policy/essential-air-service-reports. 31 Appendix A 6. Summary of Proposal Costs &he d uled Ope rations R eve nu e P@SSenger Revenue Year 5.159.,959 Year2 201,130 Total 371,098 Total Revenue $169,969 201,134 371,093 Direct Expenses Pilot Wage & Benefit $49,140 50,514 99,754 Aircraft FueI 597,932 100,81S 198,745 Mechanics &Aireran Parts $97,161 1flO,019 197,180 Insurance S24.000 25,ZUa 49.200 Aircraft Engines & Reserves $44,67s U4.573 a9,34i Aircraft & Traffic Svc $3,400 SAID 6,800 Total Direct Cost 3.316.306 324,71.E 641,024 Indirect Cost Malntenance - Ground 5217,901 217,601 435,202 Promotion &Sales 56,000 6,094 12,990 Asset Depreciadon $- a 0 oth2ITrail &port Related 5- D 0 Ownership & Equipment $34,612 37 2.12 69,624 Station Wage &Benefits $43,013 47 rybb a7,278 Total Ind iiecl Cost $201.426 302,679 604r105 General &Ad m in istrati on $48,000 48,000 96,0U0 Total Expense 5665,73.2 675,397 1,341,129 5% Margin 533,7117 33370 67.05E Total Economic Cost S699.019 /09,167 1,943,1E5 ReguestedSubsidy 5sici.miai snail 1.11.97.03 32 Appendix B Kenai Aviation Operations, LLC Essential Air Service to be provided at Seward, Alaska DOT-OST-1997-2942 Annual Subsidy: Contract Term: Hub(s): Scheduled Service: Aircraft: Subsidy per Flight: t Weekly Ceiling:2 Year One: $529,050; Year Two: $508,037 May 1, 2025 through April 30, 2027 Ted Stevens Anchorage International Airport (ANC) May 1 — September 30: six weekly round trips (Peak Season) October 1 — April 30: three weekly round trips (Off -Peak Season) 9-seat Tecnam Traveller P2012 Year One: $1,192; Year Two: $1,144 Year One: $14,304 (Peak Season), $7,152 (Off -Peak Season) Year Two: $13,728 (Peak Season), $6,864 (Off -Peak Season) Note: The air carrier understands that it may forfeit its compensation for any flights that it does not operate in conformance with the terms and stipulations of the rate Order, including the service plans outlined in the Order and any other significant elements of the required service, without prior approval. The air carrier understands that an aircraft take- off and landing at its scheduled destination constitutes a completed flight; absent an explanation supporting subsidy eligibility for a flight that has not been completed, such as certain weather cancellations, only completed flights are considered eligible for subsidy. In addition, if the air carrier does not schedule or operate its flights in full conformance with the Order for a significant period, it may jeopardize its entire subsidy claim for the period in question. If the air carrier contemplates any such changes beyond the scope of the Order during the applicable period of this rate, it must first notify the Office of Aviation Analysis in writing and receive written approval from the Depat intent to be ensured of full compensation. Should circumstances warrant, the Department may locate and select a replacement air carrier to provide service on these routes. The air carrier must complete all flights that can be safely operated; flights that overfly points for lack of traffic will not be compensated. In determining whether subsidy payment for a deviating flight should be adjusted or disallowed, the Department will consider the extent to which the goals of the program are met and the extent of access to the national air transportation system provided to the community. If the Department unilaterally, either partially or completely, terminates or reduces payments for service or changes service requirements at a specific location provided for under this Order, then, at the end of the period for which the Department does make payments in the stipulated service amounts, the air carrier may cease to provide service to that specific location without regard to any requirement for notice of such cessation. Those adjustments in the levels of subsidy and/or service that are mutually agreed to in writing by the Department and air carrier do not constitute a total or partial reduction or cessation of payment. Subsidy contracts are subject to, and incorporate by reference, relevant statutes and Department regulations, as they may be amended from time to time. Funds may not be available for performance under this Order beyond September 30, 2025. The Government's obligation for performance under this Order beyond September 30, 2025, is subject to the availability of funds from which payment for services can be made. No legal liability on the part of the Government for any payment may arise for performance under this order beyond September 30, 2025, until funds are made available to the Department for performance. If sufficient funds are not made available for performance beyond September 30, 2025, the Department will provide notice in writing to the air carrier. All claims for payment, including any amended claims, must be submitted within 90 days of the last day of the month for which compensation is being claimed. For example, claims for service provided in July must be filed by October 31; August claims must be submitted by November 30, and so on. 1 Annual compensation of $529,050 divided by 444 annual flights (262 flights Peak Season, and 182 flights Off - Peak Season) in year one. Annual compensation of $508,037 divided by 444 annual flights (262 flights Peak Season, and 182 flights Off -Peak Season) in year two. 2 12 flights per week multiplied by $1,192 Peak Season, and 6 flights per week multiplied by $1,192 Off -Peak Season in year one. 12 flights per week multiplied by $1,144 Peak Season, and 6 flights per week multiplied by $1,144 Off -Peak Season in year two. 33 April 2025 April 2025 May 2025 SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 5 1 2 3 6 7 8 9 10 11 12 4 5 6 7 8 9 10 13 14 15 16 17 18 19 11 12 13 14 15 16 17 20 21 22 23 24 25 26 18 19 20 21 22 23 24 27 28 29 30 25 26 27 28 29 30 31 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Mar 30 31 Apr 1 2 3 4 5 6 7 8 9 10 11 12 I 6:oopm PZ Work Session 5:30pm Moved to 5/22 HPC WS/Mtg 7:00pm P8t7 Mtgl 13 14 15 16 17 18 19 7:00pm CC Mtg I 1 12:00pm PACAB 20 21 22 23 24 25 26 1 6:00pm P&Z WS 27 28 29 30 May 1 2 3 1 7.00pm CC Mtg Council Calendar 1 34 4/7/2025 9:12 AM May 2025 May 2025 June SuMo TuWe Th Fr Sa SuMo TuWee TTh h Fr Sa 1 2 3 1 2 3 4 5 6 7 4 5 6 7 8 9 10 8 9 10 11 12 13 14 11 12 13 14 15 16 17 15 16 17 18 19 20 21 18 19 20 21 22 23 24 22 23 24 25 26 27 28 25 26 27 28 29 30 31 29 30 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Apr 27 28 29 30 May 1 2 3 4 5 6 7 8 9 10 7-00pm PRt7 Mtg] 11 12 13 14 15 16 17 7:00pm CC Mtg 18 19 20 21 22 23 24 6:00pm P&Z WS I 1 12:00pm PACAB I I 5:30pm HPC WS / Mtg 25 26 27 28 29 30 31 II Memorial Day I 1 7-00pm CC Mtg Council Calendar 2 35 4/7/2025 9:12 AM