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HomeMy WebLinkAboutRes2013-070 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2013 -070 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO APPLY FOR AN ALASKA ENERGY AUTHORITY ( "AEA ") ROUND VII RENEWABLE ENERGY FUND GRANT FOR INSTALLATION OF HEAT RECOVERY SYSTEM AT THE ALASKA SEALIFE CENTER WHEREAS, the Alaska Energy Authority is soliciting applications for Renewable Energy Fund ( "REF ") Grant Program Round VII; and WHEREAS, the selected applications will be recommended for funding by the 2014 Alaska Legislature; and WHEREAS, the City of Seward is eligible to apply for an REF grant as a local government and an electric utility holding a certificate of public convenience and necessity under AS 42.05; and WHEREAS, the City of Seward owns the Alaska SeaLife Center; and WHEREAS, the Alaska SeaLife Center has installed a seawater heat pump system utilizing funding obtained in 2010 from the Denali Commission and Alaska Energy Authority Round III Renewable Energy Fund; and WHEREAS, the seawater heat pump system supplies approximately 60% of the year - around energy requirements of the Alaska SeaLife Center and is significantly reducing its carbon dioxide emissions by avoiding the burning of fuel oil; and WHEREAS, the Alaska SeaLife Center has the opportunity to recover and use waste heat to increase the performance of the heat pumps by adding between one and three degrees of heat to the evaporator loop which will enable to the Alaska SeaLife Center to deliver more heat from the heat pumps, further reducing boiler heating load thereby saving oil and electricity; and WHEREAS, the Alaska SeaLife Center will be providing $25,000 in -kind force account labor as an applicant match. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section. 1. The City Council approves and endorses the installation of a heat recovery system at the Alaska SeaLife Center and recognizes the obligation of a $25,000 in -kind applicant match of force account labor provided by the Alaska SeaLife Center. CITY OF SEWARD, ALASKA RESOLUTION 2013 -070 Section 2. The City Manager is authorized to sign all documents necessary on behalf of the City of Seward to apply for a Round VII Alaska Energy Authority Renewable Energy Fund grant for installation of a heat recovery system at the Alaska SeaLife Center, to include certification that the City of Seward is in compliance with applicable federal, state, and local laws including existing credit and federal tax obligations. Section 3. The City Manager or his authorized designees are authorized to represent the City of Seward for purposes of this application. Section 4. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 9 day of September, 2013. THE CITY OF SEWARD, ALASKA 1 avid Seaw . rd, Mayor J AYES: Valdatta, Bardarson, Keil, Shafer, Casagranda, Terry, Seaward NOES: None ABSENT: None ABSTAIN: None ATTEST: renda J. Ballou Acting City Clerk BBBB a , (Cit.W e se I, '•• -.-- C • = SEAL .. -`- � ' • ti,�r OF .. A r o• ........ . COUNCIL AGENDA STATEMENT Meeting Date: September 9, 2013 From: James Hunt, City Manager Agenda Item: Authorizing the City Manager to apply for an Alaska Energy Authority Round 7 Renewable Energy Fund Grant for Installation of a Heat Recovery System at the Alaska SeaLife Center. BACKGROUND & JUSTIFICATION: In 2010 the Alaska SeaLife Center (ASLC) received funding from the Denali Commission (DC) and Alaska Energy Authority (AEA) to ' s : .n innovative heating system that utilizes an emerging heat pump technology t ' . t "lifts" latent heat from raw seawater and transfers this energy into building heat. ithAea .ter heat pump system now in operation, the ASLC has the opportunity to reco ■ — .• : reuse waste heat from Exhaust Fans 4 & 5, mechanical and electrical rooms, tissue storage freezer room, animal food storage freezer condenser, necropsy freezer condenser, and IT equipment (server) room. This waste heat recovery will increase the performance of the heat pumps by adding between one and three degrees of heat back into the heat pump evaporator loop, which will enable the Center to send more heat from the heat pumps to air a dlers throughout the building, domestic water pre -heat, and sidewalk ice melt sys m rther reducing boiler heat. The project engineering was funded from a 2011 M.J. rdock Charitable Trust grant to the ASLC. The net present worth of the heat recovery system as designed is $928,000. The Alaska Energy Authority is soliciting Renewable Energy Fund Round 7 Grant Applications for which the Cit ,.,a&a local government and owner of the Alaska SeaLife Center is eligible to apply fo ndin_ the heat recovery system at the Center. The project is construction ready, and en installed, in the first year operation is projected to save the Center $51,000 in the c• uto el oil or electricity purchases. The staff of the Center is completing the application with our review for submittal to the Alaska Energy Authority on September 24, 2013. The amount requested in the application is $225,000 and the Center will be providing a $25,000 contribution of force account labor as a match to the grant. CONSISTENCY CHECK LIST: Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Pro cedures. FISCAL NOTE; The City of Seward will not provide any funding for this project, but will pass through the grant to the Alaska Sealife Center, and will serve as the pass - through entity responsible for filing grant reports with the Alaska Energy Authority. Approved by Finance Department tl RECOMMENDATION: O Approve Resolution No. 2013 - authorizing the City Manager to apply for an Alaska Energy Authority Round 7 Renewable Energy Fund Grant for Installation of a Heat Recovery System at the Alaska SeaLife Center.