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Home My WebLink AboutRES2026-027 RESPEC - Hydroelectric PermittingSponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2026-027 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ACCEPT THE PROPOSAL FROM RESPEC COMPANY, LLC FOR ENGINEERING SUPPORT FOR FERC PRELIMINARY PERMIT APPLICATIONS FOR THE GODWIN CREEK AND FOURTH OF JULY CREEK HYDROELECTRIC PROJECTS IN AN AMOUNT NOT TO EXCEED $60,000 AND APPROPRIATING FUNDS WHEREAS, the City of Seward Electric Department has been evaluating opportunities to develop local renewable energy resources to reduce long-term electricity costs and improve energy reliability for the community; and WHEREAS, hydropower development on Godwin Creek and Fourth of July Creek has been discussed for many years as a potential opportunity to provide affordable, locally generated renewable power for the City of Seward; and WHEREAS, the City of Seward is pursuing Federal Energy Regulatory Commission (FERC) Preliminary Permits for these projects in order to secure the exclusive right to study the hydropower potential of the sites and advance feasibility and engineering analyses; and WHEREAS, once a FERC Preliminary Permit is granted, the City will have approximately three to four years to complete feasibility studies, engineering analyses, environmental review, and project development planning; and WHEREAS, RESPEC Company, LLC submitted a Statement of Qualifications and scope of services to assist the City with the review and submittal of the FERC Preliminary Permit applications and to support the development of reconnaissance and feasibility study planning; and WHEREAS, RESPEC is a 100 percent employee -owned engineering firm with extensive experience in Alaska and hydropower development, including expertise in civil engineering, hydrology, environmental permitting, geotechnical engineering, and FERC regulatory processes; and WHEREAS, the RESPEC team includes specialized subconsultants with experience in hydropower design, dam safety, environmental review, avalanche risk analysis, and construction estimating to support the City through the hydropower planning process; and WHEREAS, the initial scope of work includes review and coordination of the existing FERC preliminary permit application materials prepared by All Points North, identification of data gaps, coordination with FERC, and support for Alaska Energy Authority grant applications to fund subsequent feasibility work; and CITY OF SEWARD, ALASKA RESOLUTION 2026-027 Page 2 of 3 WHEREAS, the not -to -exceed cost for Phase 1 engineering services associated with the FERC Preliminary Permit application support is $60,000, which includes project management, civil engineering review, structural analysis, electrical review, geotechnical review, and survey evaluation; and WHEREAS, development of hydropower resources in Seward has the potential to significantly improve the long-term energy outlook for the community by providing locally generated renewable energy, reducing reliance on imported power, and lowering the carbon footprint of the electric system; and WHEREAS, the City is pursuing this work now to position the projects for construction before the federal Investment Tax Credit (ITC) currently scheduled to sunset in 2033, which could provide a financial benefit of up to fifty percent of eligible project costs; and WHEREAS, obtaining the FERC Preliminary Permit is a critical first step that allows the City to pursue grant funding, complete feasibility studies, and evaluate the long-term economic viability of these hydroelectric projects. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA: Section 1. The City Council hereby authorizes the City Manager to enter into an agreement with RESPEC Company, LLC for engineering services to support the preparation, review, and submittal of Federal Energy Regulatory Commission Preliminary Permit applications for the Godwin Creek and Fourth of July Creek Hydroelectric Projects. Section 2. Funding in the amount of $60,000 is hereby appropriated from the Electric Utility Fund for engineering services associated with Phase 1 FERC Preliminary Permit support and related project development activities, from the Electric Fund Unassigned Account 15000-0000-3400 to the 15000-3000-7009-4290 Contracted Services for the Godwin/4th of July Creek Hydro project. Section 3. The City Manager is authorized to execute all documents necessary to implement this agreement and to take any administrative actions necessary to advance the hydropower preliminary permitting process. Section 4. This resolution shall take effect immediately upon adoption. APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA THIS 23rd DAY OF MARCH 2026. Sue McClure, Mayor CITY OF SEWARD, ALASKA RESOLUTION 2026-027 Page 3 of 3 AYES: Crites, Warner, Calhoon, Osenga, Draper, Barnwell, McClure NOES: None ABSENT: None ABSTAIN: None ATTEST: 7' / Kris Peck City Clerk City Council Agenda Statement Meeting Date: March 23, 2026 To: City Council Through: Kat Sorensen, City Manager From: Taylor Crocker, Electric Department Subject: Resolution 2026-027: Authorizing the City Manager to Accept the Proposal from RESPEC Company, LLC for Engineering Support for FERC Preliminary Permit Applications for the Godwin Creek and Fourth of July Creek Hydroelectric Projects in an Amount Not to Exceed $60,000 and Appropriating Funds Background and justification: The City of Seward Electric Department has been evaluating opportunities to develop local renewable energy resources that can reduce long-term electricity costs, improve energy reliability, and strengthen the community's energy independence. Hydroelectric generation has been discussed in Seward for many years as a potential way to provide locally produced power while reducing reliance on imported electricity from the Railbelt grid. Two creeks near Seward —Godwin Creek and Fourth of July Creek —have long been identified as promising hydropower sites. Preliminary concepts indicate the potential for significant renewable generation that could offset purchased power costs and provide long-term benefits to the City's electric utility and its customers. Initial estimates suggest that the Godwin Creek project could produce approximately 31,500 megawatt -hours annually with an installed capacity of approximately 7.2 MW, while the Fourth of July Creek project could contribute an additional 16,200 megawatt -hours annually with an installed capacity of approximately 3.7 MW when combined into a single powerhouse facility. The first step toward developing these resources is obtaining a Federal Energy Regulatory Commission (FERC) Preliminary Permit. A Preliminary Permit does not authorize construction but provides the permit holder with the exclusive right to study the hydropower potential of the site for approximately three to four years. During this time, the permit holder may conduct feasibility studies, engineering analyses, environmental reviews, and funding development to determine whether the project should move forward. To support the City in completing the preliminary permit filing and preparing for the feasibility phase, the Electric Department has requested assistance from RESPEC Company, LLC, an Alaska -based engineering firm with extensive experience in hydropower planning, water resources engineering, environmental permitting, and FERC regulatory processes. RESPEC will review the preliminary permit application materials prepared by All Points North Engineering, coordinate the submission of the application to FERC, identify technical data gaps that must be addressed during future study phases, and assist the City in positioning the project for future grant funding opportunities. The not -to -exceed cost for this initial phase of engineering support is $60,000, which includes multidisciplinary engineering review and coordination necessary to ensure the FERC application is complete and positioned for approval. Securing the Preliminary Permit is a critical step for the City because it protects the City's ability to study and potentially develop these hydropower resources before another entity files for the same sites. Once the permit is granted, the City will have the opportunity to pursue additional engineering studies, environmental analysis, and grant funding through programs such as the Alaska Energy Authority Renewable Energy Fund and other federal infrastructure funding sources. Timing is also important for the long-term financial viability of the projects. Federal incentives under the Investment Tax Credit (ITC) program currently provide significant financial support for renewable energy infrastructure but are scheduled to sunset in 2033. Securing the preliminary permit now allows the City to move forward with feasibility studies and engineering in time to potentially construct these projects while those incentives remain available. If successfully developed, hydropower generation from Godwin Creek and Fourth of July Creek could significantly improve Seward's long-term energy outlook by increasing local renewable generation, reducing dependence on imported power, lowering long-term electricity costs, and decreasing the carbon footprint of the municipal electric utility. For these reasons, staff recommends authorizing the City Manager to enter into an agreement with RESPEC Company, LLC to provide engineering support for the FERC Preliminary Permit applications. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: This legislation (✓): Creates revenue in the amount of: Creates expenditure in the amount of: Creates a savings in the amount of: X Has no fiscal impact Funds are (✓): Budgeted Line item(s): 15000-3000-7009-4290 $ $ $ 60,000.00 $ X Not budgeted Not applicable Fund Balance Information Affected Fund (✓): General Boat Harbor Motor Pool SMIC Parking Other x Electric Water Wastewater Healthcare Note: amounts are unaudited Available Fund Balance/Net Position as of 12/31/25 $ 5,500,551.19 X Yes Attorney Signature: Not applicable Comments: Finance Director Signature: Attorne Review Administration Recommendation X Adopt Resolution Other: