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HomeMy WebLinkAboutRes2022-038 Heat Loop Committee From PACAB Sponsored by: Bower Postponed: March 14,2022 CITY OF SEWARD,ALASKA RESOLUTION 2022-038 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, DIRECTING PACAB TO CREATE AND LEAD AN AD HOC COMMITTEE OF INTERESTED COMMUNITY MEMBERS TO IDENTIFY AVAILABLE FUNDING SOURCES TO CONTINUE THE GROUND SOURCE/SEWARD DISTRICT HEAT SYSTEM PROJECT TO COMPLETION WHEREAS, on November 26, 2018, the City of Seward received a$725,000 grant from the Alaska Energy Authority's (AEA) Renewable Energy Fund to build the Ground Source/Seward District Heat System demonstration project via Resolution 2018-089; and WHEREAS, this project was designed to provide primary heat for the City Library/Museum and City Hall Annex,with options to include the City Hall and Fire Station; and WHEREAS,the project is fully shovel ready for construction; and WHEREAS,the benefits to the community are broad and include long term economic and environmental benefits; and WHEREAS,the project has substantial merit,beyond a return on investment,by showing the feasibility and benefits of using geothermal heat generated from Resurrection Bay; and WHEREAS, the project has stalled due to a substantial increase in the projected cost; according to the AEA in a letter dated June 23,2020,the original cost estimate for the project was $882,497,but rose substantially to $3,600,934 after an independent cost estimate was conducted; and WHEREAS, funding sources from Federal Grants and private contributions are likely available; and WHEREAS,project costs can best be controlled by timely and creative approaches; and WHEREAS,on February 16,2022,PACAB approved Resolution 2022-004 to request that council direct PACAB to create a committee to research funding opportunities for this project. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City Council herby directs the Port & Commerce Advisory Board (PACAB) to create a seven member ad hoc committee of knowledgeable interested citizens to CITY OF SEWARD, ALASKA RESOLUTION 2022-038 identify and recommend available sources of funds to complete the Ground Source/District Heat System Project. Section 2. Appointment to the ad hoc committee will be via an application process that includes the clerk advertising for letters of interest, presentations to the Port & Commerce Advisory Board, and appointment by the PACAB Chair. Section 3. PACAB will bring the recommendations of the ad hoc committee back to council. Section 4. The committee will not commit or expend any funds in relation to this project without council's express authorization. Section 5. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 29`1' day of March, 2022. TLE C , LASKA risty Ter , Mayor AYES: Calhoon, Casagranda, Wells, McClure, Osenga, Terry NOES: None ABSENT: DeMoss ABSTAIN: None ATTEST: rends J. Bal ou, MMC City Clerk (City„slag $ 7... to • 1 SEAL = • •i �'•.. '‘0.•••• Q' ti.. F OFA P.*` • . City Council Agenda Statement Meeting Date: March 14, 2022 To: City Council From: Port and Commerce Advisory Board Agenda Item: Resolution 2022-038: Directing PACAB to Create and Lead An Ad Hoc Committee of Interested Community Members to Identify Available Funding Sources to Continue the Ground Source/Seward District Heat System Project to Completion Background and justification: On November 26, 2018, the City of Seward received a $725,000 grant from the Alaska Energy Authority's(AEA) Renewable Energy Fund to build the Ground Source/Seward District Heat System demonstration project via Resolution 2018-089. This project has been placed on the 2022-2027 City of Seward Capital Improvement Plan list and is awaiting additional funding. The project was designed to provide primary heat for the City Library/Museum and City Hall Annex, with options to include the City Hall and Fire Station. The project has stalled due to a substantial increase in the projected cost; according to the AEA in a letter dated June 23, 2020, the original cost estimate for the project was $882,497, but rose substantially to $3,600,934 after an independent cost estimate was conducted. On February 16, 2022, PACAB approved Resolution 2022-004 to request that council direct PACAB to create a committee to research funding opportunities for this project. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive 3.1.1.2 Continue to support efforts to develop alternative energy sources. Plan: Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 0 This legislation (✓): Creates revenue in the amount of: $ Creates expenditure in amount of: $ Creates a savings in the amount of: $ x Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted x Not applicable Unassigned Fund Balance and Available Unrestricted Cash Balance Information Fund (✓): General SMIC Electric Wastewater Boat Harbor Parking F1 Water Healthcare Motor Pool Other Unassigned Fund Balance*: $ *unaudited numbers Available Unrestricted Cash Balance*: $ Finance Signature: L�^;-1 �'"` Attorney Review✓ Administration Recommendation RxYes x Adopt Resolution Not applicable Other: