HomeMy WebLinkAbout01202020 City Council Work Session Packet L u
CITY COUNCIL
WORK SESSION PACKET
Topic: Discuss Electric Department rates, classifications,
utility infrastructure management, current contract
regarding power factor adjustment penalty, current
status/process of selling electric utility, update on current
demand meter project, update on the air-to-air project,
clarifying billing, and timeline or schedule for pole
replacement.
Monday, January 20, 2020 at 5:30 p.m.
Council Chambers
City Council Work Session
January 20, 2020
TABLE OF CONTENTS
Ordinance 2019-016,Amending City Code Section 14.15 —Electricity, Article
415 — Interconnection Requirements, Procedures, And Application Process
For An Alternative Power Source Less Than 25KW.
Enacted October 28, 2019
Port &Commerce Advisory Board Minutes
May 15, 2019 PACAB recommends to council approving utility rebates for heat
pump installs at 50150 or$1,700.
Rural Energy Savings Program
Affordable loans to help consumers implement cost-effective, energy
efficient measures.
Port & Commerce Advisory Board 2020 Priorities
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Sponsored by: PACAB
Introduction Date: October 14, 2019
r Public Hearing; Date: October 28, 2019
Enactment Date: October 28, 2019
CITY OF SEWARD, AI,ASKA
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ORDINANCE 2019-0 16
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD,
AL.ASKA, AMENDING CITY CODE SECTION 14.15 — ELECTRICITY,
ARTICLE 415 — INTERCONNECTION REQUIREMENTS,
PROCED['RES, AND APPLICATION PROCESS FOR AN
i� A1,TERNATIVE POWER SOURCE LESS THAN 25KW
WHEREAS, PACAB's responsibilities include providing input to the City Council on.
ti policy and procedural maacr5 involving the establishment and continuance of commercial
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activity, improving the quality (.,)f'life and protecting the public's best interest and performing
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other duties as requested by the City Council; and
WHEREAS, in December, 2017, Council directed PACAB to explore options for
alternative energy in Seward; and
WHEREAS, the rules for interconnection are established by SCC 14.15.4
Interconnection with Customer-Owned Alternative Power Source Generation Equipment;
and
WHEREAS, PACAB believes that interconnection of customer-owned alternative
power source generation equipment with the City's electrical distribution system is a key
component of responsible energy policy; and
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WHEREAS, the Code was last updated in 2014 by Ordinance 2014-003 an ordinance
of the City Council of the City of Seward, Alaska, amending Title 14 of the City's Code of
Ordinances to provide for interconnection of small renewable energy sources to the City's
electrical distribution system; since this section of code was enacted in 2014, no
homeowners in Seward have been able to successfully connect to the City's electrical
distribution system; and
WHEREAS, amending the code to remove certain hardware requirements would
lessen the financial and administrative burden of interconnection while retaining con-pliance
with all applicable codes and providing for the safety of the City's Electric Department
employees and equipment; and
WHEREAS, these changes would bring Seward City Code in line with other local
and national utility interconnection policies.
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CITY OF SEWARD, ALASKA
ORDINANCE 2019-016
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA HEREBY ORDAINS that:
Section 1. Seward City Code TITLE 14.15.415 — INTERCONNECTION
REQUIREMENTS, PROCEDURES, AND APPLICATION PROCESS FOR AN
AI,TERNITIVE POWER SOURCE LESS THAN 25KW is hereby amended as follows:
(Deletions are Bold StFikethFou ; Additions are Underlined Bold Italics.)
14.15.415 - Interconnection requirements, procedures, and application process for an
alternative power source less than 25kw.
(a) Application. in order to proceed with interconnection of an alternative power source, the
customer must complete an application for a new/rework of electrical service and an
interconnection application. The customer shall also provide equipment specifications,
protection arrangements, and design drawings to the cite for review.
(5) Compliance with codes and standards. Interconnections shall not be fueled by nor
connected to any non-qualilied alternative energy sources. Interconncction customers shall
comply with all applicable local, state, and f'edcral codes such as building codes, National
Electric Code (NEC), and National Electrical Safety Code (NESC) for the installation of an
interconnection. Once operating. the city reserves the right to require the customer, at the
customer's expense, to provide corrections, modifications, or additions to the interconnection
as required or recommended by government or industry regulations and standards. The city
will provide written documentation of the necessary changes and a time frame to complete. If
the customer fails to comply with the changes in the specified time frame, the city will open
and lock the interconnection.
4e) i'lu.o.Y en -of---ttst er-e ed irate-con tion .
stem's power quitlity- and reliit-Irfil-it y one intereonneetion
distFibution tFansformer will be authorized.
(d) (c) PoW_er gp,,dJty and reliability. The interconnection with the electric system shall not
cause any reduction in the quality and reliability of service proN ided to other city customers.
There shall be no generation of abnormal voltages or voltage fluctuations, and the harmonic
content of the interconnection output must be below that level which would cause interference
with other customer loads, other utilities, or city facilities and equipment.
To minimize interference, the city requires the interconnection to meet the power quality
standards presented in accordance with section 10, Recommended Practices for Individual
Consumers of the latest Institute of Electrical and Electronics Engineers (IEEE) Standard 519,
IEEE Recommended Practices and Requirements for Han-nonic Control in Electrical Power
Systems. In addition to meeting all requirements identified in this document, the interconnection
shall comply with all city ordinances and resolutions, and latest IEEE 1547, IEEE Standard
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CITY OF SEWARD,ALASKA
ORDINANCE 2019-016
Conformance Test Procedures for Equipment Interconnecting Distributed Resources with
Electric Power Systems.
(e)-(d) Testing. Prior to initial energization of the interconnection, an inspection and tests will
be performed by both the interconnecting customer and city personnel. The purpose of the
inspection and testing will be to determine if the generator and related equipment of the
j interconnection meets the minimum requirements described by IEEE 1547, IEEE 519, and UL
} 1741, Underwriter Laboratories Inc., Standard for Inverters, Converters, and Interconnection
System Equipment for Use With. Distributed Energy Resources. Based on the inspection, the city
may elect to accept the installation and energize the interconnection. In the event that
discrepancies are noted between the certified equipment and drawings previously provided to the
tcity and the customer's system inspected by the city, retesting may be required. The customer
shall be solely responsible for all costs associated with any retesting.
u (e) City inspection and customer maintenance records. The customer shall maintain the
h interconnection in good working order. The interconnection (i.e., generator and associated
equipment) is subject to inspection and retesting by the city upon reasonable notice each year
after the unit is placed in service. The customer will assume full responsibility for the routine
maintcnance of the interconnection and associated protective devices. The customer shall
i maintain accurate records of all maintenance activities performed. These records shall record the
date and time, the person(s) who performed the activities, and a brief description of the work.
These records shall be made available to the city for inspection at all times upon reasonable
notice to the customer. Failure to comply may result in the disconnection of the equipment or
j additional testing as outlined in subsection (e) above. The customer is solely responsible for all
costs associated with any inspections and testing required.
(g) (f) Visible, lockable disconnect switch or electric break. An accessible, visible, lockable
disconnect switch or electric break, whichever is applicable, is to be provided by the customer
which is lockable in the open position only. This switch must be appropriately labeled, when
locked in the open position for any of the following conditions, may be unlocked only by city
personnel. The city will lock the switch in the open position under the following circumstances:.
(1) If it is necessary for the protection of line crew personnel when working on de-
energized circuits during a system emergency;
(2) If inspection of the interconnection reveals a hazardous condition or a lack of proper
maintenance;
(3) If the interconnection interferes with other customers, other utilities, or with the
operation of the city's distribution system;
(4) If the city determines that the interconnection has generated power from a non-
qualified alternative energy resource; or
(5) For general maintenance of the city's distribution system.
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CITY OF SEWARD,ALASKA
ORDINANCE 2019-01.6
The city will provide at least five days' notice, unless the circumstances warrant shorter
notice, before locking the switch open for gcnend maintenance as provided in condition (v)
above.
0) (g) Metering/billing_The customer shall install and maintain a kilowatt-hour meter, or
meters, at the interconnection, capable of registering the bi-directional flow of electricity at the
point of interconnection at a level of accuracy that meets all applicable standards, regulations,
statutes, and ordinances. The metcr(s) may measure such parameters as time of delivery, power
factor, voltage, and such other parameters as the city shall specify. The customer shall provide
space for metering equipment as specified by the city with the location of the meter(s) to be
approved by the city. The customer is solely responsible for all costs associated with the
purchase, installation, and maintenance of all equipment required by the city in order to properly
meter the interconnection.
(0 (h) Nominal voltages and phasing. The generator nameplate voltage must be the same as
one of the nominal voltages supplied by the city. The nominal voltages are 120/240 V single-
phase, 120/208 V three-phase, and 277/480 V three-phase. If the generator nameplate voltage is
different from the city's nominal voltages, the customer must supply a dedicated generator
transformer that will provide the required nominal voltage. The required transformer connection,
unless otherwise specified, is grounded wye-grounded wye.
{f) (i) Fault current increase and upgrading equipment. In general. installation of a new
generator will increase the fault current level at the customer's electrical facility. This may
require upgrading some of the customer's equipment. The customer will assume full
responsibility of upgrading customer's own equipment.
(k) (j) Starting as induction motor. In general, induction generators start as motors; also,
synchronous generators may be designed to start as motors. The customer-owned generator
starting as a motor shall meet the motor starting requirements prescribed by the city. The city
may require the customer to provide, at customer's own expense, special or additional starting
equipment.
() (k) Generating facilityg[ounding. There are additional safety concerns that shall be
addressed when considering circuit grounding: of the interconnection interconnected to the city's
utility system. To ensure proper grounding of' (fie generating facility, the customer shall follow
all applicable national, state, and local cedes regarding grounding for applicable generating
installations.
tm) (1) Synehronization. The interconnection must be synchronized with the city's utility
system Lit all times and the customer shill be responsible for the cost and maintenance of all
synchronl/ation equipment.
(m) (n) 'automatic disconnection, reeonnee o and Time-
Delayed Automatic li evonnection. The interconnection shall be designed to automatically
disconnect and lockout �ti l)erI the city's service is interrupted for any reason. The . evi-ee shall
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CITY OF SEWARD,ALASKA
ORDINANCE 2019-01.6
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have a. manual res Automatic Rreconnection of the interconnection to the city's utility
system shall be done only on hot-bus/hot-line/sync-check.
F0jj0,Ar*Hg verbal authorization by the eleetrie fnafkager or- the eleetrie manager-'
designee,An automatic reclose of the interconnection breaker (or interrupting device) is
permitted once utility power has been restored a minimum of five minutes.
j (o) (n) Single phasing protection. The customer is advised that a phase-unbalance disturbance
on the city's utility system can result in overheating of the interconnection. A negative-sequence-
type relay (current or voltage) could be necessary to initiate tripping under phase-unbalance
conditions and may also be used to block closing of the automatic disconnecting device if the
city's utility system is single-phased.
W (o) Generatingfacility acility protection. The customer is fully responsible for the protection of
the generator and all of its associated equipment. Protection should be provided for the
customer's own equipment failures, faults, and other disturbances on the city's utility system.
( } (p) Fault detection and automatic isolation. To prevent an interconnection from supplying
current to a fault on the city's utility system, the interconnection shall be equipped to provide
isolation from the city's utility system for any fault occurring on the city's utility system. The
automatic isolation shall be done prior to the city's breaker (or recloser) reclosing and within a
reasonable period of time, typically less than two seconds (120 cycles). The customer is solely
responsible for all costs associated with the purchase, installation, and maintenance of all
equipment required by the city in order to properly isolate the interconnection from the city's
utility system for any fault occurring on the city system..
J1, (r-) (q) Under/over voltage relay. To prevent any hazardous operating conditions. the
interconnection shall be isolated from the city's utility system for any under-voltage (lower than
f 90 percent of nominal voltage) and over-voltage conditions (higher than 110 percent of nominal
voltage) within two seconds (120 cycles). The customer is solely responsible for all costs
associated with the purchase, installation, and maintenance o f all equipment required by the city
in order to properly isolate the interconnection from the city's utility System for any voltage level
described above.
(4) (r) Under/over frequency relay. To prevent any hazardous operating conditions, the
interconnection shall be capable of disconnecting the customer's generation source from the
city's utility system for any over-frequency and under-frequency conditions exceeding 60.5 Hz or
r below 59.5 Hz within 50 milliseconds (6 cycles). The cus10111cr is solely responsible for all costs
associated with the purchase, installation, and maintenance of all equipment required by the city
d in order to properly isolate the interconnection from the city's utility system for any frequency
' deviation described above.
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(t) (s) Dedicated distribution transformer. To ensure reliable service to other city customers
and to minimize all possible problems for other city customers, the electric department may,
when it deems it necessary under the circumstances, require the interconnection *kA to be
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interconnected to the city utility system through a dedicated-to-single-customer distribution
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CITY OF SEWARD, ALASKA
ORDINANCE 2019-016
individual transformer, may be watived b-!-4h1 e
the—eereumstanees. Any cost
associated to achieve dedicated-to-single-customer scr�ice shall be the custonier-'s sole expense.
(u) (t) Single-phase gs�neratinjq _facility on three-phase distribution transformer. A customer-
owned single-phasc generating facility IOKW or greater shall not be allowed to be connected to
a city three-phase distribution transformer. This requirement may be waived by the electric
department through written authorization when it deems it appropriate under the
circumstances.
( ) (u) Surge protection. The customer is responsible for the protection of customer's
interconnection from transient surges initiated by lighting, switching, or other system
disturbances.
(w) (v) Future modification or expansion. Any future modification or expansion of the
interconnection will require a separate review and approval by the city.
(4) (w) Reservation of rights. The city reserves the right to require additional interconnection
requirements for interconnection of altematix c. power source generating facilities in order to
preserx e the safety and integrity of the city's utility system.
( 3 (r) It?temptiorr nfaltcrriati�g poser source energy cleiceries. '
require alternative poweir-sonrft� e-dw.c _ . ,
power.system whenever the eity is generating Us awn The electric department shall have the
right at any time, without liability to the customer or any other person, to interrupt the alternative
power source:
(1) When reasonably necessary. in order for the electric department to construct, install,
maintain, repair, replace, ren)ove, investigate, or inspect any equipment or any part of
the electrical distribution system, or
(2) If the electric department reasonably determines that interruption or reduction of
deliveries or power is necessary because of a system emergency, a forced outage, force
majeure, or other operational considerations.
(Ord. No. 2014-003, § 2, 6-9-2014)
Section 2. This ordinance shall take effect ten(10) days following its enactment.
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CITY OF SEWARD,ALASKA
ORDINANCE 2019-016
ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA
this 28 h day of October, 2019.
THE CITY OF SEW RD, ALASKA
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4 ``C ris ry, Mayor
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AYES: Baclaan, Osenga, Lane, McClure, Seese, Terry
NOES: None
ABSENT: Butts
ABSTAIN: None
ATTEST:
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Brenda T. Ballou, MC
City Clerk
(City S
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City of Seward, Alaska Port and Commerce Advisory Board Minutes
May h, 2019 Volume 3, 374
CALL TO ORDER
The May 15,2019 regular meeting of the Port and Commerce Advisory Board was called to
order at 12:01 p.m. by Chair Christy Terry.
OPENING CEREMONY
Harbormaster Regis led the pledge of allegiance to the flag.
'i ROLL CALL
I here were present:
Christy Terry presidino. and
Bruce Jaffa Laura Schneider
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Lynda Paquette Fain Lemas
Comprising a quorum of the board; and
` Absent—Carl Hughes excused Colby Lawrence excused
Also, Present:
Scott Meszaros, City Manager
Norm Regis,Harbor Master
I C icNcil Flaherty, Executive Liaison
SLIZI rowsley, Council liaison
C"I T i ZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED
FOR PUBLIC HEARING
Ester Porter with the Coast Guard, Marine Industry Training for Port Security and Safety. She
stated that she is out of the Anchorage Sector and she is here working with the railroad and the cruise
ship terminal but she is available to the city regarding safety and security. Her job is to see how
Seward is doing and what if anything needs to be done to improve the port's safety and security.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Paquette/Schneider) Approval of Agenda and Consent
Agenda
' Motion Passed Unanimous
�i SPECIAL ORDERS,PRESENTATIONS AND REPORTS
Alaska Railroad Report—Christy Terry submitted electronically, no additional information.
`! Chamber of Commerce Report—Cindy Clock submitted electronically
q Harbormaster Report—Norm Regis submitted electronically but added that he asked the fire chief to
come in case there were any building code questions based on our agenda. He answered questions
regarding the launch ramp progress and about the upcoming Seward Mermaid Festival.
__ .....
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Ciii o f S(ivard,Alaska Pori and Commerce Advisory Board Minutes
'bleat 7 i, 0 N Volume 3, 375
Administration Report — Scott Mcszaros stated he was available to meet with anyone who is
interested, please schedule an appointment.
UNFINISHED BUSINESS
7A -Approve December 19,2018,January 2,2019,February 6,2019, March 6,2019 and
April 3, 2019 minutes.
Terry SLIggested that the approval of the minutes to be at a meeting in July.
NEW BUSINESS
SA-Proclamation in support of Spring Creek Correctional Center Maximum Security Prison.
Motion (Jaffa/Paquette)
Motion Passed Unanimous Consent
SB - Review and discuss progress toward Alternative Power Source Interconnect Code
Revision Information-A Resolution of the Port And Commerce Advisory Board of the City Of
Seward, Alaska, Providing A Recommendation To Council To Update Portions Of SCC
14.15.4 Interconnection With Customer-Owned Alternative Power Source Generation
Equipment
Motion (Terry/Paquette) Approve Resolution 2019-003
'lotion To Amend (Terry/Jaffa) Amend Resolution 2019-003 by striking"at
the next possible Council Meeting"to"before
the end of October 2019."
`Notion To Amend Passed Yes: Jaffa, Lemas,Terry
No: Paquette, Schneider
tilain Motion. Passed Unanimous Consent
8C. - Discuss and make recommendation to Council re: possible rebate credit for Air to Air
Heat Pump install
'lotion (Terry/Lemas) The Port And Commerce Advisory Board
recommends to council approving utility
rebates for heat pump installs at 50150 or
$1,700.00.
Motion passed Unanimous Consent ��
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Rural Energy Savings Program (RESP)
What does this program do?
The Rural Energy Savings Program(RESP) provides loans to entities that agree to make affordable loans to help consumers
implement cost-effective,energy efficiency measures.This program,authorized by Congress in the 2014 Farm Bill,helps to build a
cleaner and more sustainable domestic energy sector for future generations.RESP will help lower energy bills for rural families and
businesses and will reduce barriers to investment in energy efficiency projects or activities.
Who is an eligible borrower under this program?
Eligibie applicants include current and former Rural Utilities Service(RUS) borrowers,subsidiaries of current or former RUS
borrowers,and entities that provide retail electric service in rural areas.
Mow is RESP different from the Energy What are the Loan Terms?
Efficiency and Conservation Loan The RUS borrower is eligible to apply for a loan of up to
Program (EECLP)? 20 years at a 0 percent interest rate.(Up to 4 percent of the
• RESP offers a lower-cost financing option—a zero percent loan total may be used for startup costs.)The RUS borrower
interest rate; can charge an interest rate of up to 3 percent for relending to
• RESP also has a broader pool of eligible borrowers(utilities, qualified consumers.
nonprofit organizations,municipalities and states),while
EECLP program borrowers are limited to utilities that serve What governs this program?
rural areas; These loans are made available under the authority of
• RESP offers longer loan terms:20 years versus 15 years for section 6407 of the Farm Security and Rural Investment
EECLP loans. Act of 2002(7 U.S.C.8107a) (Section 6407).
How may funds be used? How do I learn more?
Funds may be used to implement energy-saving measures, For more information about the program,please contact
or for energy costs incurred by qualified consumers. Robert Coates at Robert.Coates@wdc.usda.go�.
Now do we get started?
Applications for the RESP program will be accepted on a
first-come,first-served basis until funds are depleted.To be
considered for funding,applicants should submit a letter of
intent to RESF@wdc.usda:goov.More information is available
in the annual funding announcement published in the
Federal Register.
AOTE Because citations a nd other in formation1'please
the program instruttions listed in the section above titled INhat Governs tfiis Program?" 1
contactmay also 1 1.awstance,You kvill firld additional
and pr11. 1 1n at w%vw.rd.tisda.qk on equalopportunity
provide6 employer,
Last Updated D*
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' Sponsored by: PACAB
CITY OF SEWARD,ALASKA
PORT AND COMMERCE ADVISORY BOARD
RESOLUTION 2020-001
A RESOLUTION OF THE SEWARD PORT AND COMMERCE ADVISORY
BOARD, RECOMMENDING COUNCIL APPROVAL OF THE PORT
AND COMMERCE ADVISORY BOARD PRIORITIES FROM
FEBRUARY 2020 TO FEBRUARY 2021
y WHEREAS,PACAB's responsibilities are listed in SCC 2.30.325 Powers and Duties;and
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WHEREAS,at its December 18,2019 work session,PACAB reviewed and refined their
$ Priorities and Goals list for 2020.
NOW, THEREFORE, BE IT RESOLVED BY THE PORT AND COMMERCE
ADVISORY BOARD OF THE CITY OF SEWARD,ALASKA that:
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Section 1. The following list of Priorities and Goals from February 2020 through
`y February 2021 is hereby approved by the Board and recommended to Council for their
approval:
PRIORITIES
• Support harbor operations and harbor users
• Help lead Seward Marine Industrial Center(SMIC)development
• Advise and support the Seward Chamber of Commerce in their marketing role for the
city
• Explore and promote energy alternatives and community sustainability practices
+ Support actions and legislation that promote the viability of all businesses
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• Promote quality of life for Seward residents
{ SHORT TERM GOALS
• Review the vessel property tax and provide recommendation to Council
Sponsor an Energy workshop for the community
• Evaluate options for a heat pump rebate program and present a proposal to
Council
• Hold another joint work session with the Planning&Zoning Commission about a
SMIC overlay
• Work towards developing a Climate Action Plan
! • Discuss and review the January 2020 City Council work session with the electric
department
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PORT AND COMM 11:RCE A1)L"IS0RY BOARD
RESOLUTION 2020-001
• Determine action needed to address halibut by-catch and provide recommendation
to Council
• Support the work of the Airport Committee
• Create an ad hoc committee for SMIC Development and an ad hoc committee for
Energy
• Send a board member to the Alaska Municipal League Conference
• Prioritize City, State, and Federal Priorities for port and commerce initiatives
* Evaluate city utility infrastructure for future growth
■ Participate in Joint Work Session with Historic Preservation committee on
Downtown Historic Overlay District
• Review the SMIC De%cIopment Plan
■ Evaluate the Blue Pipeline Initiative and give recommendation to Council on the
city's continued investment
• Provide input on the Capital Improvement Plan
LONG TERM GOALS
• Review the Harbor Tariff(Target Completion 2021)
• Submit a Climate Action Plan to Council for adoption (Target Completion 2021) ;
• Update Seward Boat Harbor Plan(Target Completion 2021)
• Update SMIC Development Plan (Target.Completion 2022)
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Section 2, This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the Port and Commerce Advisory Board of the City of
Seward, Alaska, this 8"' day of January, 2020.
THE CITY OF SF.W A1Z1), ALASKA
Laur• cline tier,Chair
AYES: Smith, Hughes, Lawrence, Schneider
NOES: None
ABSENT: Jaffa,Lemas, Paquette
ABSTAIN: None
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PORT AND COMMERCE ADVISORY BOARD
RESOLUTIORN 2020-001
ATTEST:
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Jessica Stallard
Deputy City Clerk
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(City Seat)
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