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HomeMy WebLinkAbout01212026 PACAB PacketPort 8z Commerce Advisory Board Agenda Packet Wednesday January 21, 2026 City Council Chambers Beginning at 12:00 p.m. 1963 1965 2005 kattil AU-AmencaCity 1 I 1 1 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 Vice Chair Dwayne Atwood Board Member Melissa Schutter Board Member Norm Regis Board Member Jesse Groom Vacant Vacant Harbormaster Tony Sieminski City Clerk Kris Peck Executive Assistant Kristin Wise January 21st 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 September 17, 2025 Port and Commerce Advisory Board Meeting Minutes 6. SPECIAL ORDERS, PRESENTATIONS, AND REPORTS A. Proclamations and Awards B. City Manager Report C. Other Reports and Announcements 1) Alaska Railroad Report 2) Seward Chamber of Commerce D. Presentations 1) Heat Pump Incentive Programs by Phil Kaluza 7. UNFINISHED BUSINESS 8. NEW BUSINESS Port and Commerce Advisory Board Meeting Agenda Jai ty21,2026 11Page A. Resolutions -None B. Other New Business 1) Discussion Item: Draft Resolution Supporting a Residential Heat Pump Rebate Program ( Sponsored by Schutter and Jaffa) 2) Discussion Item: PACAB Meeting Topics and Schedule (January —May 2026) 3) Nominate PACAB Chair and Vice Chair for 2026 C. INFORMATIONAL ITEMS AND REPORTS A. Reminder of Meetings 1) Regular Meeting on February 18, 2026 D. CITIZEN COMMENTS E. BOARD AND ADMINISTRATION COMMENTS AND RESPONSES TO CITIZEN COMMENTS F. ADJOURNMENT Port and Commerce Advisory Board Meeting Agenda Janwny21,2026 21Pagc City of Seward, Alaska Port and Commerce Advisory Board Meeting Minutes September 18, 2025 Volume 4, Page CALL TO ORDER The September 18, 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 Harbormaster Tony Sieminski led the Pledge of Allegiance. ROLL CALL There were present: Bruce Jaffa, presiding, and Dwayne Atwood Melissa Schutter Norm Regis Jesse Groom comprising a quorum of the Board; and Tony Sieminski, Harbormaster Jodi Kurtz, Deputy City Clerk Kristin Wise, Executive Assistant to Administration Excused — None Absent — None Vacant — Two CITIZEN COMMENTS ON ANY SUBJECT Phil Kaluza, inside city limits, advocated for heat pumps. He explained the use of heat pumps and his collection of reports and research on heat pumps. Taylor Crocker, inside city limits, gave updates on the Electric Department and the upcoming Town Hall Meeting, and the work that is going to be done on the Jeep Trail. Casie Warner, inside city limits, informed everyone on the upcoming Threads Summit regarding child care that it taking place in Anchorage. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Atwood/Regis) Approval of Agenda and Consent Agenda Chair Jaffa requested to add Prepare Meeting Agenda to New Business for discussion. City of Seward, Alaska September 18, 2025 Port and Commerce Advisory Board Meeting Minutes Volume 4, Page Motion Passed Unanimous The clerk read the following approved as amended agenda and consent agenda items: Approval of the May 21, 2025 PACAB Meeting Minutes SPECIAL ORDERS, REPORTS AND PRESENTATION Proclamations and Awards - None City Administration Report Harbormaster Toni Sieminski welcomed Kristin Wise as the new Executive Assistant to the City Manager. Executive Assistant Kristin Wise summarized from the City Manager Report in the packet. Electric Operations Supervisor Taylor Crocker spoke on his trip to Cordova regarding the hydroelectric system and on the Green Spark Data Center and what it does to their excess hydro to help reduce the electric bills. He also spoke about traveling to Cordova, Alaska with co-worker James Unrein to accept the prestigious Hatcher Turkington Award. Other Reports and Announcements Alaska Railroad Report Seward Port Manager Dwayne Atwood announced the new Assistant Port Manager is Darcie Larson. He shared information on the cruise ship schedule and pipe ships. He also spoke to the demolition of the current cruise ship terminal and an upcoming farewell event. Chamber of Commerce Report Director of Chamber of Commerce Amanda Sweeting provided an overview on the Silver Salmon Derby which was dedicated to Dorothy Urbach. She announced that the chamber will be operating the Polar Bear Jump in 2026. Sweeting also provided updates on Small Business Week, The Destination Guide, winter hours, cruise ship statistics, and the housing market. Presentations — None UNFINISHED BUSINESS Discuss Heat Pump- Alaska Heat Smart Jaffa summarized from the packet and described Phil Kaluza's involvement. The board discussed incentives and eligibility for residents. City of Seward, Alaska Port and Commerce Advisory Board Meeting Minutes September 18, 2025 Volume 4, Page NEW BUSINESS Nominate Vice Chair Jaffa nominated Dwayne Atwood for Vice Chair. Motion (Jaffa/Groom) Motion Passed Coast Guard Update Approved Unanimous Sieminski updated the board on the Coast Guard project in Seward and the fast cutter Frederick Mann that was destined for Seward. He announced that housing for Coast Guard personnel is planned at the Hilltop Subdivision. He explained how the city remains well -positioned for future Coast Guard expansion. Harbor Uplands Development Sieminski summarized from the packet on the Harbor Uplands Development He provided information on the design plan and what the layout would be for parking. Meeting Agenda Jaffa spoke to all the valuable things this board can do. He encouraged everyone to come to the December meeting with ideas for the meeting agendas. INFORMATIONAL ITEMS AND REPORTS Reminder of Meetings Regular Meeting on October 15, 2025 Regular Meeting on November 19, 2025 Regular Meeting on December 17, 2025 BOARD AND ADMINISTRATION COMMENTS & COMMENTS RESPO Sieminski thanked Kristin Wise for preparing the packet. It was good to after the summer hiatus. Wise thanked the board for welcoming her and thanked Tony Sieminski helping her prepare for this meeting. Groom stated it was nice to see everyone after the busy summer. NSE TO CITIZEN see all the familiar faces and Ashleigh Lipsey for City of Seward, Alaska Port and Commerce Advisory Board Meeting Minutes September 18, 2025 Volume 4, Page Regis thanked Phil Kaluza for the information on heat pumps, and thanked Taylor Crocker for the updates on the electric and hydropower in Seward. He thanked the Chamber of Commerce for their report, and thanked Dwayne Atwood for being the Vice Chair. Schutter welcomed Kristin Wise and congratulated her on her new position She congratulated James Unrein for the award he won. She thanked Amanda Sweeting for her report on Chamber of Commerce. Atwood thanked Chair Jaffa. He thanked those that came and spoke at the meeting and looked forward to serving as the Vice Chair. Jaffa announced the upcoming fundraiser for Moose Pass Public Library. He noted Election Day was coming up in October and encouraged people to vote. Jaffa noted there were still two vacancies on PACAB. Kurtz updated the board on the early voting starting on Monday, September 22, 2025. ADJOURNMENT The meeting was adjourned at 1:49 p.m. Jodi Kurtz Bruce Jaffa Deputy City Clerk Chair (City Seal) City Manager Report Administration Happy New Year! We're working through our usual beginning of the year routines, and I'm catching up after a nice staycation in Seward around the holidays. I hope everyone was able to have a happy and healthy holiday season, and stayed warm with all the cold weather we've been having. With the cold snap, remember to keep tabs on your water lines at home and at work. Keep your property warm and keep a drip of water running at about the width of a number 2 pencil! At the end of 2025, the State of Alaska was awarded federal funding of over $200 million to strengthen, stabilize, and modernize health care systems in rural communities through the Rural Health Transformation Program (RHTP. As more information on the funding is released, we'll be working with our community partners to ensure that Seward participates in the RHTP funding. There was a Notice of Funding Opportunity (NOFO) put out by DOT for inland port and harbor improvements. We are planning to apply for the grant to pave and repave Port Avenue, Leirer Road, Alameda, Northwestern Circle, and T-Dock Road, along with addressing some drainage issues and installing additional sidewalks. We will be engaging the same grant writer who was used for the Shore Power grant, and we are also working with R&M to develop cost estimates for the work. My guess is that the request will be for a couple of million dollars. The deadline is at the end of February, and we will keep you posted. Finance Department HARBOR FLOATS 12/18/2025 REPUBLIC SERVICES INC Vendor Used to Pump out and Dispose of 1,200 Gallons of Glycol / Anti -Freeze from Smic Storage Tank Plus 10% CONTINGENCY 13,007.79 COMM DEV 12/23/2025 R&M CONSULTANTS INC DIECKGRAEFF ROAD DRAINAGE RES 2025-048 PROJ. 2734.37 11,868.00 POLICE 12/30/2025 FINCH, KEVIN CBKArms Qty 10 - Beretta A300 Patrol12 Gauge Shotguns Qty 10 - Streamlight Protac Lights 9,899.00 ELECTRIC ADM IN 12/31/2025 KENAI PENINSULA BOROUGH ANNUAL PO FY2026 for Disposal Services 5,000.00 Electric Department The City of Seward Electric Department is hard at work on system improvements and long- range planning as we look ahead to 2026. One of the major initiatives that began in 2025 and will be completed in January 2026 is a comprehensive system mapping update. Alaska Remote Imaging has completed a full aerial and ground survey of the City's electric grid and is now processing that data into the Electric Department's GIS mapping system. Once this data goes live, it will significantly improve system planning, outage response, asset management, and vegetation management efforts. Several large infrastructure projects were approved in 2025 and are scheduled for construction in 2026. These include the Lawing Substation Upgrade, Spring Creek Substation Upgrade, the Nash Road 69 kV to 115 kV transmission upgrade, and the installation of Advanced Metering Infrastructure (AMI) meters. When completed, these projects will represent some of the most significant upgrades to Seward's electric system in the past fifty years and will position the system for improved reliability and performance for decades to come. In addition, the Electric Department completed strategic conduit boring projects in 2025 that will support undergrounding efforts during the 2026 construction season. Planned undergrounding areas include Leirer Road, Dairy Hill to NAPA, Stoney Creek, and Old Mill. Our dedicated line crew will be actively working on these projects throughout the next construction season. On the generation side, Plant Operators continue to expertly maintain the EMD generators that provide critical backup power during transmission outages. Alongside this work, the crew has been rehabilitating the Marathon Hydroelectric Plant, which remains on track for completion in spring 2026. Restoring Marathon Hydro is an important step toward expanding local renewable generation and may help pave the way for larger hydroelectric projects to support the community's long-term energy needs. The Electric Department is looking forward to a busy and productive year in 2026 as these projects move from planning into construction, strengthening Seward's electric system for the future Community Development Planning and Zoning Commission The Commission held a work session on Tuesday, December 16th to discuss their priorities for 2026. The Commission held a regular meeting on Tuesday, January 6th to vote on approving their 2026 priority recommendations that were discussed on the previous work session. Those priorities will come before Council in January. The results of the votes on those two resolutions were not known when this CMR was submitted. Congratulations to Andy Wilder who was appointed to the Commission! Appeal of Resolution 2025-035 On December 2, 2025, The Commission passed Resolution 2025-035 granting a conditional use permit to The Tufted Puffin LLC to operate a drive-thru window to sell retail cannabis products and non -cannabis food and beverage items from their business located at 408 Port Avenue within an Auto Commercial (AC) Zoning District. That resolution was appealed four times by seven community members. When a P&Z decision is appealed, the appeal goes before the City Council serving as the Board of Adjustment, and Community Development staff takes the role of defending the Commission's decision. Staff has spent the majority of its time in preparation for the appeal proceeding. Comprehensive Plan: Staff has nearly completed each of its interviews with City Departments and has connected with PACAB and the Chugach Regional Resource Commission. Staff will spend the next two months connecting with various community organizations. A reminder that the Developer Reimbursement Program application can be found on the Community Development website: Application Forms I Seward, AK Public Works Happy New Year! Wishing everyone a successful and enjoyable 2026! The unusually cold weather over the last few weeks has pushed the frost deeper and froze many of the streams around town. We all need to be aware of the freezing hazards to our water lines at home and work. Take precautions to keep your property warm and pipes from freezing. Also, take care when outside to bundle up and be aware of the wind chill. Extended exposure can cause frostbite. Be safe! *Recent Cold Temperatures are increasing the chance of frozen water lines. ** If your home or business water line has frozen in the past, it is recommended that you run your water through April 30th, at about the thickness of a No.2 pencil lead. The City of Seward does not provide services for thawing frozen service lines. Options for pipe thawing are use of steam thawing and use of a welder to thaw pipes. Both are available in the area through private service providers. The customer is responsible for hiring and paying a thawing service to thaw their service line. The customer assumes all risks and liabilities of using a pipe thawing company. Remember, once the customer's line is thawed, it is recommended that you run the water at the thickness of a No. 2 pencil lead. Choose a fixture that is at the lowest point in your home. Monitor the flow of water as to not cause a backup in your home. In the event of a frozen water line, if you need help locating your key box and thaw wire please contact the City of Seward - Public Works at 907-224-4058. The strong winds and lack of snow tend to keep most of us at Public Works inside when possible, doing other maintenance duties. The Street Department continues to keep roads sanded as needed and clearing falling rocks during all hours and weekends. Our Water and Wastewater guys are still completing all sampling work and making sure the water and sewer mains are flowing. Human Resources The City of Seward is still looking for Patrol Officers and Journeyman Linemen. These specialized positions take more time to fill but promise a rewarding career serving the community. We also have two positions in Finance available — Utility Cashier and Accounting Tech III — both located in City Hall. The Utility Cashier is a frontline customer service position stationed at the Utility/Finance Counter where residents pay their water/sewer bills. This position is also responsible for general inquiries regarding City Departments and some basic clerical duties. The Accounting Tech III position is focused on the details of governmental accounting including a variety of recurring accounting procedures like calculating, verifying, and reconciling designated accounts to ensure completeness and accuracy. This position also backs up the Utility Cashier including processing payments, balancing the till, and answering customer questions Fire Department Emergency Responses for the Year 2025: 564 Fire and Life Safety Inspections 2025: 439 Fire & Life Safety Code Violations 2025: 317 Building permits YTD: 74 with a valuation of $40,271,488.26 The Seward Volunteer Fire Department is proud to present the 2025 Annual Report. To access: showdocument This is a full comprehensive report that covers operations, incident stats, org charts, training, education, response area and responses, awards, promotions and upcoming initiatives Seward Harbor/SMIC No major incidents have been reported within the Harbor/SMIC area. New Year, New You. This is a great time and opportunity to dip your toe into one of the many Boards and Commissions within the City of Seward. PACAB currently has two vacancies. We would like to remind our users to do a system check on their vessels, check on their vessels regularly and/or have a local boat watch in place. Status on leases/Permits - AT&T lease renewal —first draft is still under their review, Jag lease extension — met with Mr. Jagielski mid -December to catch up and discuss ideas and plans for the area. Lease draft is under their review and look forward to seeing that move forward. One other new lease within SMIC area is being discussed and they are navigating the permitting/paperwork needed to move forward. As we close out another year and reflect on the past, I would like to thank our former council members for their support. I also look forward to working with our current council members, your dedication to Seward and the Harbor helps make Seward a wonderful place to live, work and visit. A sincere THANK YOU to all our users. We are excited for the future of the harbor area and honored to serve you. Last, I am grateful for my dedicated staff and their commitment to keeping the harbor area running smoothly. Looking ahead, the crew is excited to take delivery of our new 50-ton Travelift, South Uplands development, harbor area upgrades to enhance locals/tourist experience and updating our internal processes. At SMIC, we are eager to have Pacific Seafoods to the area and look forward to that plant back in full operation, we are encouraged at the news that the Coast Guard project is gaining traction and moving forward with their build and support JAG as they continue to build and attract new and maintain existing contract for the Seward area. Over the past eight years, they have witnessed over a 500% growth in employment and have experienced a staggering 300% increase in jobs within their SMIC yard. The next phase of their yard extension will allow this growth to continue, aiding in securing long term government contracts and stable employment. Parks and Recreation Sports & Recreation: The champions of fall were crowned in all sports leagues and are as follows • Rec Racquetball - Lukas Scott • Silver Racquetball_ Doyle Brueckner • Gold Racquetball - Courtney Bringhurst • Basketball - 907 Elite • Comp. Volleyball - Seal the Deal • Rec. Volleyball - We Showed Up Pool Float Water Polo had its initial testing day with reports of being the most fun event at Sports and Rec so stay tuned for more coordination with the high school pool. The first session of Archery class wrapped up with nine students learning the basics of archery at the middle school. Emma Seavey took home the win in the Santa Run as 15 participants braved the wind and cold to be rewarded with cookie decorating at the library. Dance Class with Alissa wrapped up a re -installment of the very popular class in December. The Winter Solstice Walk was a huge hit with several hundred people hitting the trails at Two Lakes and over 300 luminaries made by ski club volunteers. Over 30 kids took part in the nerf war at the library. While the AVTEC Gym was closed for cleaning the Sports and Rec team hosted a New year's Nerf war on Dec 29th and Back to the Future Movie Marathon on Dec 31. Thank you to the Library who facilitated these events. Teen Rec Room Attendance has been steady at the teen rec room with 60 check -ins over the past two weeks from 21 different teens. Pizza making as well as pancake making seems to be a hit daily as we prepare for a Kids in the Kitchen Class in January. The pool table and instruments are becoming more popular in recent weeks as video game playing seems to be down a bit. Campgrounds: Created 2026 campground season and made an automatic release date for bookings in the reservation system for January 12, 2025. Creating Campground attendant SOP for the upcoming Summer months. For night and day shifts Snow removal compliance Working on Shower house improvements — replacement of water heater for a tankless on - demand heater for continuous hot water for campers. Park Maintenance: Indoor Projects — Refurbishing picnic tables / signs / garbage cans / benches Fashioning Dog Park Equipment Outfitting vehicles with safety and tool kits Snow removal Admin: Working on the SPRD Master Plan/Survey/upcoming Town Hall Mapping out a Dog Park location in the Forest Acres Campground Disc Golf Course improvements Staff in-service to include emergency shelter training Jan 9' all staff completed CPR training Parking: Working on operating plan for Summer staff Planning on full time staffing the Parking shack this summer alleviate foot traffic and questions directed to the Harbor office and City Hall Parking and Permit fee increase for the 2026 season Updating software for the Parking pay stations Library & Museum Digital Literacy Workshops (Wed 1:30-3:30 PM @ Senior Center): Jan 7- QR Code Basics Learn what QR codes are, how to scan them with your phone, and how they can make accessing menus, websites, and library resources quick and easy. Jan 14 - Intro to Google Tools Get started with helpful Google tools like Drive, Docs, and Gmail, and learn how they can make storing files, sending email, and creating documents simpler. Jan 21 - All about Apps Discover how to find, download, and manage apps on your smartphone or tablet, and learn tips for choosing safe and useful apps for everyday life. Jan 28 — iPhone Basics Get comfortable using your iPhone or iPad! Learn how to navigate settings, manage apps, adjust accessibility features, and make the most of your device's built-in tools. Library Lego Lounge (Mondays 3pm-4pm) Drop in and get creative at the Library LEGO Lounge! This self -guided free play session is all about imagination and building fun. We'll provide the LEGO bricks —you bring the ideas! Build solo, collaborate with friends, or challenge yourself to recreate your favorite things in brick form. All ages welcome. The Vibe Workshop: Unfinished Business (Thursday, January 8t", 4pm-5:30pm) Bring your half -finished projects, abandoned crafts, or anything you've been meaning to work on. Come jam out to some tunes, relax, and finally make some progress on those creations. No instruction, no pressure —just good music, good company, and time to create. Your Cycle, Your Superpower: Understanding the Menstrual Cycle. (Monday, January 12, 5:30pm-6:30pm) Hosted by Emily Jordan Learn the natural rhythms of the menstrual cycle and how energy, mood, and focus change week to week decode the messages her body is communicating physically, emotionally, and energetically. feel empowered by the hormonal changes that are a normal and healthy part of the feminine body & experience best support her body and hormones throughout the month with practical tools & proper nourishment Pin Button Workshop (Thursday, January 15, 4pm-5:30pm) Get creative at our Pin Button Workshop! Participants can bring in their own images to turn into custom pin buttons or design their own by coloring and drawing before we make them into pins. This hands-on, all -ages workshop is a fun way to create something unique to wear or share. All supplies provided. Drop in and make a button! Board Game Night (Thursday, January 22, 5:30pm-7:30pm) Get creative at our Pin Button Workshop! Participants can bring in their own images to turn into custom pin buttons or design their own by coloring and drawing before we make them into pins. This hands-on, all -ages workshop is a fun way to create something unique to wear or share. All supplies provided. Drop in and make a button! Be Internet Awesome (Thursday, January 29, 4pm-5pm) Join us for Be Internet Awesome, a fun and interactive program presented in collaboration with Highlights and Google. Children and families will learn how to be smart, alert, strong, kind, and brave online. This all -ages program helps kids and families learn how to be safe, confident, and responsible online through games, activities, and discussion. Participants will explore topics like digital safety, kindness, privacy, and smart decision -making in an engaging, age -appropriate way. A great opportunity to build digital citizenship skills together. Continued Ongoing Events Tech Tutoring I Tuesdays 1 2-4pm Storytime I Fridays 1 12:30pm Police Department Patrol Written Reports: 6 Criminal Charges: 3 Minor Offense Citations: 28 Motor Vehicle Accidents: 1 Dispatch Event/Incident/ Service Calls: 70 Animal Control 2025 Complaints: 74 Impounds: 27 Surrenders: 38 Dogs/ 39 Cats Community Assists: 76 DMV Drivers License and ID cards: 79 Motor Vehicle Registrations: 112 Boat Registrations: 3 General Information DISPATCH: We are pleased to welcome Ben Nishimoto as our newest dispatcher. He begins his training this week. Another candidate is nearing the end of the hiring process. Once their training is complete Dispatch will be at full staffing. ANIMAL CONTROL: Soldotna Clinic is back on 1/8. There are currently 9 cats and 4 dogs waiting to be adopted. There are 2 dogs and 4 cats in foster care. ALASKA RAILROAD Port Activity Update January 21, 2026 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 M/V Forte, a heavy load vessel, arrived from China on November 12 with major cruise dock components. Items included the main floating dock platforms, ramp, fenders and railings. • The 2026 cruise ship schedule now includes 63 ships. The first ship, the Silver Moon, is due to arrive on May 14. The last ship of the season is the Viking Orion on September 30. • A Marubeni-Itochu pipe ship M/V Houtmangracht is currently scheduled for January 30. • The port saw more than 150 non -cruise dockings during 2025 and the current traffic is largely Samson break -bulk barges and Shoreside fuel shipments. Port Capital Projects • The cruise dock and terminal building replacement continues to move forward. Construction stages of the $137 million project include framing and wall panel installation. The major terminal construction is partially complete and the cruise dock demolition is ongoing. More information is available at: https://sewardcompany.com • The freight dock expansion project is still on schedule. The sheet pile and fill work is scheduled for May through September 2027. 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 70,000 cubic yards of project fill has been stockpiled, and 85 percent plans are under review. 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 Seward Passenger Dock Field Report Project: Date 01-08-2026 ARRC Staff: Jacob Kern Contractor: Turnagain Construction Weather High [-9] °F / Low [ -18] °F minimal wind. None reported Superintendent: Will Marstall, Temperature: Weather: Sunny, Safety: Daily Incident(s): Construction Report: Equipment Work Force Description Hours Remarks Name Hours Classification See Turnagain Report Material Projected Construction Activities: Material Name QTY Location - Daily Construction Activities: - Turnagain continues with dock demo, currently at south end of dock, currently pulling piles. Batter piles are breaking off at mudline. Brightwater Piledriving barge is being prepped at SMIC. - Terminal Building progress continues: Drywall and tapping, Plumbing, HVAC, and electrical all making significant progress. form_Field Report form_Field Report form_Field Report form_Field Report form_Field Report form_Field Report form_Field Report form_Field Report form_Field Report PACAB MEMORANDUM TO: Seward City Council FROM: Port and Commerce Advisory Board (PACAB) DATE: [Insert Date] SUBJECT: Recommendation to Establish a Residential Heat Pump Incentive Rate Purpose The Port and Commerce Advisory Board (PACAB) recommends that the Seward City Council direct the administration and Seward Electric Utility to establish a residential heat pump incentive rate, using a declining block rate structure similar to that currently applied to large commercial customers. Background Seward households continue to face high heating costs due to reliance on oil. Cold -climate heat pumps offer an immediate opportunity to reduce heating expenses by 20-25 percent while increasing local electric sales and utility revenue. The Accelerating Clean Energy Savings (ACES) program —a federally funded initiative administered by the Southeast Conference and the Juneau -based Alaska Heat Smart program —has allocated approximately $1.6 million for Seward, enough to support 200-300 household installations. However, participation requires favorable electric rates for heating. Without an incentive rate, Seward risks losing access to this funding. The 2021 Seward Cost of Service and Rate Study already recommended exploring special rates for heat pumps and electric vehicles. A declining block rate would implement that guidance while strengthening the city - owned utility's revenue base. Economic and Community Benefits • $500,000 in annual household fuel savings (1,000 homes) • $325,000 in new annual utility margin • $900,000 total local economic benefit per year • No capital investment required and minimal administrative cost This program aligns with Seward's past energy leadership —such as PACAB's support for solar net metering — and offers an achievable step toward affordability and local economic growth. Recommendation PACAB recommends that the City Council: 1. Adopt Resolution 2026-_ supporting creation of a residential heat pump incentive rate. 2. Direct utility management to prepare a detailed implementation plan and present it to Council by Q1 2026. 3. Coordinate with Southeast Conference and Alaska Heat Smart to ensure Seward's full participation in the ACES rebate program. Prepared by: Port and Commerce Advisory Board City of Seward, Alaska n i► PORT AND COMMERCE ADVISORY BOARD (PACAB) City of Seward, Alaska RESOLUTION NO. 2026- A RESOLUTION OF THE PORT AND COMMERCE ADVISORY BOARD RECOMMENDING THAT THE SEWARD CITY COUNCIL ESTABLISH A RESIDENTIAL HEAT PUMP INCENTIVE RATE TO PROMOTE ENERGY EFFICIENCY, LOWER HOUSEHOLD COSTS, AND STRENGTHEN THE CITY -OWNED ELECTRIC UTILITY WHEREAS, Seward's municipally owned electric utility exists to serve the best interests of its residents, ratepayers, and local economy; and WHEREAS, home heating represents one of the largest household expenses in Seward, and rising fuel oil prices continue to strain household budgets, particularly for lower- and moderate -income families; and WHEREAS, cold -climate heat pumps have proven effective in Alaskan communities with similar climates, reducing heating costs by 20-25 percent while improving comfort and indoor air quality; and WHEREAS, the Accelerating Clean Energy Savings (ACES) program —a federally funded initiative administered by the Southeast Conference in partnership with the Juneau -based Alaska Heat Smart program —has allocated approximately $1.6 million in rebates for Seward residents, supporting an estimated 200-300 heat pump installations; and Program may have expired WHEREAS, Seward's current electric rate structure does not provide a favorable operating cost for heat pump users, limiting participation in the ACES program and forfeiting potential household and community benefits; and WHEREAS, a declining block rate structure already exists for Seward's large commercial customers and can be readily adapted to support residential heat pump adoption with little or no new infrastructure cost; and WHEREAS, analysis shows that a typical household replacing 500 gallons of heating oil with a heat pump would save approximately $500 per year while generating about $325 per year in net margin for the utility; and WHEREAS, widespread adoption —approximately 1,000 homes —could yield $500,000 in annual household savings, $325,000 in new utility margin, and nearly $1 million in total local economic benefit circulating within the community each year; and WHEREAS, the 2021 Seward Cost of Service and Rate Study specifically recommended exploring "a special rate for heat pumps and electric vehicles," providing a strong policy basis for this action; and WHEREAS, supporting heat pump adoption builds upon Seward's established record of promoting local renewable and efficient energy, including the successful solar net -metering ordinance adopted with PACAB's support; NOW, THEREFORE, BE IT RESOLVED that the Port and Commerce Advisory Board urges the Seward City Council and the Seward Electric Utility to establish a residential heat pump incentive rate, utilizing a declining block rate structure to promote efficient electrification while maintaining fair cost recovery; and BE IT FURTHER RESOLVED that the City Council direct the administration and utility management to develop and present an implementation plan for such a rate no later than the first quarter of 2026, ensuring Seward's full eligibility and participation in the ACES rebate program administered by the Southeast Conference and Alaska Heat Smart; and BE IT FURTHER RESOLVED that the Port and Commerce Advisory Board supports collaboration with the Southeast Conference, Alaska Heat Smart, and local contractors to promote resident awareness of heat pump benefits and available rebate programs; and BE IT FURTHER RESOLVED that this resolution be forwarded to the Seward City Council, City Administration, and the Seward Electric Utility as an expression of PACAB's strong support for local, cost-effective energy initiatives that strengthen Seward households, businesses, and its municipally owned utility. PASSED AND APPROVED by the Port and Commerce Advisory Board of the City of Seward, Alaska, this day of , 2026. ATTEST: City Clerk