HomeMy WebLinkAboutRes2015-078 Sponsored by: Hunt
CITY OF SEWARD,ALASKA
RESOLUTION 2015-078
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,AUTHORIZING THE CITY MANAGER TO SUBMIT A GRANT
APPLICATION TO ALASKA ENERGY AUTHORITY FOR THE CITY'S
HEAT LOOP SYSTEM PROJECT,AND SHOULD THE APPLICATION BE
APPROVED BY COUNCIL AND THE CITY BE SUCCESSFUL IN ITS
APPLICATION TO ALASKA ENERGY AUTHORITY,THE CITY SHALL
APPROPRIATE $85,000 FOR REQUIRED MATCHING FUNDS
WHEREAS,the City has an interest in reducing energy costs through energy efficiency and
in using energy from clean and renewable sources; and
WHEREAS, the City has,contracted with Your Clean Energy, LLC (YCE) to perform an
economic evaluation of a ground source heat pump, and to provide a report and presentation to
Council; and
WHEREAS, among the factors affecting the economic feasibility of the project is the
temperature of the sea water permeating the ground source,and very little data exists for the depths
considered; and
WHEREAS, other work in town brought drillers to the area; the City was able to cost-
effectively have a test well drilled at the proposed project site to provide real time data specific to the
project; and
WHEREAS,the Contract Officer extended the YCE contract deliverable time so that YCE
could incorporate this new data into the report and presentation; and
WHEREAS, the Alaska Energy Authority has funds available for projects of this type in
their Round 9 Clean Energy grant program, and the submittal deadline is September 15,2015; and
WHEREAS, the estimated cost of the project is $850,000, and grant funds will be of
essential assistance if the project is to be undertaken in the near future; and
WHEREAS, YCE has prepared successful grant applications in previous rounds of this
program, and recommends a minimum of 10% cash match be committed,in this case$85,000, for
the application to be competitive; and
WHEREAS, the City has an opportunity through this project to save money for taxpayers
through the efficient use of energy from a sustainable source,and to demonstrate the efficacy of same
for other public and private applications in the community.
CITY OF SEWARD,ALASKA
RESOLUTION 2015-078
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The City Manager is hereby authorized to submit the Alaska Energy Authority
Round 9 Clean Energy grant application for a Starter District Heating System.
Section 2. Funding in the amount of$85,000 is committed as match to the project if the
application is successful, and would come from the General Fund.
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward,Alaska,this 31st day
of August, 2015.
THE CITY OF SEWARD,'ALASKA
pcan Bardarson,Mayor
AYES: Butts, Squires, Terry, Darling, Casagranda, Keil, Bardarson
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
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Council Agenda Statement
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Meeting Date: August 31, 2015 � •,T\ o
From: Jim Hunt, City Manager q p
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Agenda Item: To authorize the City Manager to apply for an Alaska Energy Authority Clean Energy grant,
and committing City funds to complete the heat pump loop project if the grant is awarded
BACKGROUND & JUSTIFICATION:
With the passage of Resolution 2014-103 the City awarded a contract to Your Clean Energy LLC(YCE)to develop an
economic evaluation of a Starter District Heating System.
The work is complete and the presentation by the contractor is at this meeting. In the economic evaluation, certain
assumptions about the source temperature were made based on a single test well done by the US Army Corps of
Engineers in the 1960's for an entirely different purpose.The contract officer saw an opportunity to take advantage of a
well driller in the area at the time and in consultation with YCE contracted to have another test well drilled to the
specifications specific to this purpose,and extended the time for delivery of the YCE report in order to include this new
information.
The results are promising,validating the earlier assumptions and reinforcing the economics of the project as to a return
on investment schedule.
The Alaska Energy Authority has $11,000,000 in competitive grant programs available to fund projects that result in
increased or improved energy savings to the community through the use of clean/renewable energy.The grant application
will be rated to an extent on the matching funding provided by the applicant,which must be stated in the application.
Work done to date,including the test well,energy efficiency and insulation projects at City Hall,the Annex and Fire Hall
count as non-cash match,but cash match is common to the successful applications in previous rounds.
Project cost is estimated at$800,000, and YCE,having prepared successful applications, suggests a 10% cash match,
therefore the City would be responsible for$80,000 if the grant is awarded.
INTENT: Council authorize the City Manager to prepare and submit the grant application for the Starter District Heat
System,and commit a cash match of$80,000 if the application is successful.
CONSISTENCY CHECKLIST: Yes No N/A
1 Comprehensive Plan (page 35):Continue to support,promote, enhance and X
develop facilities to accommodate Seward's growth.
2 Strategic Plan (page 7): Continue to support efforts that would provide Seward X
with alternative energy sources, including hydropower
3. Other(list):
FISCAL NOTE: The funding for the cash match would come from the General Fund in the amount of$80,000.
•
Approved by Finance Department: Ae-C
ATTORNEY REVIEW: Yes No X
RECOMMENDATION: Council authorize the Manager to submit the grant application and commit the cash match.
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