The URL can be used to link to this page

Home My WebLink About09262022 City Council Special Meeting - SMIC Bench FeasibilitySeward City Council Agenda Packet Special City Council Meeting Monday, September 26, 2022 at S: 30 p.m. Council Chambers, City Hall All public is invited to attend. City of Seward PO Box 167 Seward, Alaska 99664 AIA Sfw* 7fm... June 16, 2022 Brenda Ballou, City Clerk City of Seward Re: September 26, Special Meeting Madam Clerk, City Manager's Office Janette Bower, City Manager Phone: 907-224-4012 Email: jbower@cityofseward.net Please consider this my written request as required by Seward City Code 2.10.030 (a)(2) for a special meeting on September 26, 2022, at 5:30 pm, for the following item: Seward Marine Industrial Center (SMIC) Bench Draft Development Feasibility Study (Note: action may be taken by the council following the Committee of the Whole) Please note the format is a special meeting with a committee of the whole. Thank you, Janette Bower, City Manager SPECIAL MEETING NOTICE Pursuant to Seward City Code 2.10.030 (2), this is to serve as the written notice calling a City Council Special Meeting on Monday, September 26, 2022 at 5:30 p.m. for the purpose of: Committee of the Whole: Seward Marine Industrial Center (SMIC) Bench Draft Feasibility Study. The meeting will commence in the City Council Chambers, City Hall, 410 Adams Street, Seward. All interested persons are invited to attend the meetings. All public is invited to attend. Posted: Thursday, September 15, 2022 City Hall bulletin board U.S. Post Office Harbormaster's Building Seward Community Library Museum The City of Seward, Alaska Special City Council Meeting September 26, 2022 5:30 p.m. Council Chambers Christy Terry Mayor Term Expires 2022 Sue McClure Vice Mayor Term Expires 2023 John Osenga Council Member Term Expires 2024 Liz DeMoss Council Member Term Expires 2023 Ristine Casagranda Council Member Term Expires 2022 Mike Calhoon Council Member Term Expires 2024 Randy Wells Council Member Term Expires 2022 Janette Bower City Manager Brenda Ballou City Clerk Brooks Chandler City Attorney 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING [Those who have signed in will be given the first opportunity to speak. Time is limited to 3 minutes per speaker and 36 minutes total speaking time for this agenda item.] 5. APPROVAL OF AGENDA AND CONSENT AGENDA [Approval of Consent Agenda passes all routine items indicated by asterisk (*). Consent Agenda items are not considered separately unless a council member so requests. In the event of such a request, the item is returned to the Regular Agenda] 6. NEW BUSINESS A. Other New Business Items 1. Committee of the Whole: Seward Marine Industrial Center (SMIC) Bench Draft Development Feasibility Study. 7. CITIZEN COMMENTS 8. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSES TO CITIZEN COMMENTS 9. ADJOURNMENT City of Seward, Alaska City Council Special Meeting Agenda September 26, 2022 Page I rmconsult.com R&M CONSULTANTS, INC. 9101 Vanguard Drive Anchorage, Alaska 99507 phone: 907.522.1707 fax: 907.522.3403 _ it ,"I el f T 4 J or " RPE 1 City of Seward - SMIC Bench Draft Feasibility Study June 2022 Page 2 Table of Contents Introduction............................................................................................................................................................................ 3 ExistingConditions Overview.............................................................................................................................................. 3 Opportunities& Constraints...................................................................................................................................................4 LandUse & Zoning.............................................................................................................................................................. 4 IntendedLand Use..........................................................................................................................................................4 Zoning.............................................................................................................................................................................. 4 DevelopmentRequirements........................................................................................................................................... 6 Required Public Improvements...................................................................................................................................... 7 Geotech............................................................................................................................................................................... 7 Access.................................................................................................................................................................................. 8 Utilities.............................................................................................................................................................................. 10 WaterSource................................................................................................................................................................ 10 WaterTreatment.......................................................................................................................................................... 10 WaterStorage............................................................................................................................................................... 10 Water Transmission & Distribution.............................................................................................................................. 11 Sewer Collection, Treatment & Disposal...................................................................................................................... 11 Electric and Communications....................................................................................................................................... 12 Total Order of Magnitude Utility Development Costs.................................................................................................. 12 TsunamiCenter Site Potential.......................................................................................................................................... 13 DevelopmentConcept.......................................................................................................................................................... 13 Overview........................................................................................................................................................................... 13 ConceptDesign................................................................................................................................................................. 13 FeasibilitySummary.............................................................................................................................................................. 15 Attachments 1. SMIC Bench Concept 2. SMIC Bench Concept Phase 1 Roadway Alignments ( .�l VInnovating Todayfor Alaska's Tomorrow City of Seward - SMIC Bench Draft Feasibility Study June 2022 Page 3 Introduction The City of Seward is exploring development opportunities for its vacant land to meet community needs and advance their vision and goals. Part of their land inventory includes an 1,828.5-acre parcel on the east side of resurrection Bay near the Seward Marine Industrial Center (SMIC). Fourth of July Creek and its tributaries created a natural northern and southern divide of the parcel. The northern portion of the parcel has been identified as a potential development opportunity and the City of Seward has authorized R&M Consultants, Inc. to assess its feasibility. The following feasibility study provides an overview of the SMIC Bench property being considered for development, identifies opportunities and constraints of the site, and presents development concepts based on the goals of the project and municipal code requirements. Conclusions and recommendations made in this study are based on desktop analysis conducted by certified surveyors, engineers and planners and are considered conceptual. Existing Conditions Overview Parcel ID: 14532003 Legal Description: Tract G, Fourth of July Creek Subdivision No. 2, according to Plat No. 98-04, Seward Recording District, Alaska. Located within T 1S R 1E & 1W SEC 7, 8, 17, 18, 12, & 13 Physical Address: 700 Nash Road The City of Seward is considering the development feasibility of the portion of the SMIC Bench property generally adjacent to Nash Road, north of the Spring Creek Correctional Center, and west of Godwin Creek. Physical constraints including steep slopes and the presence of intermittent or permanent streams are driving the feasibility study area boundary (see cover image). Size of Study Area: 833 acres, approximately (full parcel is 1,828.5 acres) Zoning: Resource Management - partially developable lands subject to floodplains and steep slopes. Land Use: Vacant land that is anecdotally used for recreation (recreation occurs north of the SMIC Bench parcel on USDA Forest Service land for the Godwin Glacier Overlook trail). Utilities: Utilities do not extend into SMIC Bench area. Water and sewer lines exist within a closed system between the SMIC harbor and prison facilities; no sewer lines are present on Nash Road, however, city water is available at the base of the mountain. Overhead electric lines are present along Nash Road adjacent to the SMIC Bench study area, and underground lines are present on the Spring Creek Correctional Center property. 1A Innovating Todayfor Alaska's Tomorrow City of Seward - SMIC Bench Draft Feasibility Study June 2022 Page 4 Opportunities & Constraints Land Use & Zoning Intended Land Use The City of Seward is experiencing an ongoing housing shortage for seasonal and year-round residents and it is a priority of the Community Development Department and City Council to identify areas for residential development. SMIC Bench is being considered as a potential development site for a new residential neighborhood. Depending on the feasibility of development and anticipated housing units, additional public or commercial land uses could be desirable or needed within the SMIC Bench area. Non-residential uses may include parks and recreation, a school or other institutional land uses, home occupation or other small commercial or office uses, restaurants or other food establishments. Access for recreation is anticipated to accompany any development of SMIC Bench, as public lands are adjacent to the City' property and the topography, viewsheds and environment make it highly attractive for year-round recreational pursuits. If access up the mountain to the bench can be established, the topography and amount of available city -owned land would be supportive of a trail network. Development of a trail system should take into consideration access and parking, wayfinding, maintenance, management, intended uses and sustainable design and construction of trails. Establishment of a recreational trail system could increase the attractiveness and marketability of housing developments at SMIC Bench and provide a new destination to be enjoyed by Seward residents. Zoning Zoning districts create the framework for regulating land use within the City of Seward. Each zoning districts has allowable land uses and associated development requirements. SMIC Bench is zoned Resource Management (RM). Resource Management - considered principally public The RM district is defined by City of Seward Code Title 21.05.025(b)13. as lands which are generally undeveloped and cannot be precisely zoned due to inadequate information on the extent of public services and utilities; the suitability of the land to support commercial, residential, industrial or public uses; and other possible environmental considerations. To effectively support the desired development at SMIC Bench, rezoning the area to one or more of the following zoning districts may be considered based on the City's desired use and intensity of the land: 4&k Innovating Todayfor Alaska's Tomorrow City of Seward - SMIC Bench Draft Feasibility Study June 2022 Page 5 (1) Rural residential district (RR). Intended to provide for stable, quiet, low density (one or two dwelling units per acre) detached single-family residential development, free from other uses except those which are both compatible and convenient to residents of such a district including recreational, religious and educational facilities of an appropriate scale and design complementary to the neighborhood character. (2) Single-family residential district (R1). Intended to provide for stable and quiet low to medium density (one to five dwelling units per acre) detached, single-family residential development, free from other uses except those which are both compatible and convenient to residents of such a district. (3) Two-family residential district (R2). Medium density (one to seven dwelling units per acre) transitional housing area with a mix of single and two-family units, free from other uses except those which are both compatible and convenient to residents of such a district. (4) Multi -family residential district (R3). Intended to provide opportunities for a higher density residential setting with a mix of housing units which are predominately multi -family units close to concentrations of public services, employment and/or recreation. This district may provide a transition between more intensive districts and lower density residential areas if sufficient screening and design features are provided to protect multi- family residences from undesirable effects. (5) Urban residential district (UR). Intended to allow an area of higher density mixed residential uses from detached single-family housing to multi -family apartments in conjunction with compatible low impact professional office uses in the area surrounding the downtown business district. Residential development has been identified as the primary land use for a SMIC Bench development to address the identified need for additional housing units. The preferred residential density (units per lot, lots per acre, etc.) will be determined by market preferences and the anticipated availability and costs of utilities, roadways and lot development. The following tables summarizes potential land uses allowed in applicable zoning districts. Table 1. Summary of Residential Land Uses by Zoning District, per City of Seward Code 15.10.226 Residential Land Use Zoning Districts RM RR 1111 R2 R3 UR Apartment, efficiency or accessory Prohibited Permitted Permitted Permitted Permitted Permitted Apartment, studio Conditional Prohibited Prohibited Prohibited Prohibited Prohibited Attached single-family townhouse, row Conditional Prohibited Prohibited Prohibited Prohibited Conditional Condominium Conditional Prohibited Prohibited Prohibited Conditional Conditional Detached single-family Conditional Permitted Permitted Permitted Permitted Permitted Group Home Conditional Permitted Permitted Permitted Permitted Permitted Guest House Conditional I Permitted Permitted Prohibited Prohibited Prohibited Two-family or duplex Conditional Prohibited Prohibited Permitted Permitted Permitted Multi -family (3 or more) Conditional Prohibited Prohibited Prohibited Conditional Conditional A�k Innovating Today for Alaska's Tomorrow City of Seward - SMIC Bench Draft Feasibility Study June 2022 Page 6 Table 2. Summary of Non -Residential Land Uses by Zoning District, per City of Seward Code 15.10.226 Zoning Districts RM RR 1111 R2 R3 UR Non -Residential Land Use Grocery, convenience store Prohibited Permitted Prohibited Prohibited Conditional Conditional Home occupation Permitted Permitted Permitted Permitted Permitted Permitted Home rental on a nightly Prohibited Prohibited Prohibited Prohibited Admin. Admin. basis Lodging, B&B, rooms, duplex Permitted/ Permitted/ Permitted/ Permitted/ Permitted/ prohibited and accessory apartment admin admin admin admin admin Lodging, multifamily Prohibited Prohibited Prohibited Permitted Permitted Permitted dwelling apartment Office, home professional Prohibited Prohibited Prohibited Prohibited Prohibited Permitted Planning Unit Development Prohibited Prohibited Permitted Permitted Permitted Prohibited Playground, public tot lot Permitted Permitted Permitted Permitted Permitted Permitted Restaurant, food service, Conditional Prohibited Prohibited Prohibited Prohibited Prohibited catering, brew put School, public/private Prohibited Conditional Conditional Conditional Conditional Conditional elementary/secondary Wind Energy Conservation Permitted Permitted Permitted Permitted Permitted Permitted System Development Requirements City of Seward Land Use Code, Title 15, defines dimensional standards by zoning district that limit the range of possible subdivision configurations. The following table provides the dimensional standards required by zoning district: Table 3. Summary of City of Seward Code Table 15.10.222 Development Requirements Zoning Districts RM RR 1111 & R2 R3 UR Dimensional Requirements Maximum Building Height (ft.) 34 34 34 34 34 Minimum Buildable Lot Size (ft.) Varies 3,000 Varies 3,000 Varies 3,000 *Note 2.B, 2.E, 2.F. 20,000 20,000 to 7,000 to 9,000 to 9,000 Minimum Lot Width (ft.) 100 100 Varies 30 to Varies 30 to Varies 30 to 60 90 90 Minimum Front Yard Setback (ft.) 20 20 20 20 20 5 min. each Minimum Side Yard Setback (ft.) 10 10 side with 15 10 5 total Minimum Side Yard Setback Adjacent to Street (ft.) 20 10 10 10 10 Minimum Rear Yard Setback (ft.) 10 10 10 10 10 Maximum Accessory Building Height (ft.) 34 20 20 20 20 Maximum Lot Coverage (%) *Note 2G 100 30 35 40 40 jv�k Innovating Today for Alaska's Tomorrow City of Seward - SMIC Bench Draft Feasibility Study June 2022 Page 7 *Note 2E. Multiple -family developments (except studio apartments) with three or more units require a minimum of 9,000 SF in the R3, UR, OR Districts and 20,000 SF in the RIM District *Note 2F. Two -Family or duplex developments require a minimum of 6,000 SF in the R2, R3, UR, OR, AC and CB Districts and 20,000 SF in the RIM District. Duplex developments within the Federal Addition Subdivision require 5,000 SF. All other development requirements of this chapter shall be met. *Note 2.G. Multiple -Family, studio apartments in the OR, AC, CB, HC, I and RIM districts require a minimum of 9,000 SF. The total square footage required for lot setbacks shall be reserved as open area. All other requirements set forth in this chapter shall be met. Required Public Improvements City of Seward Subdivision Code, Title 16 identified required public improvements that must meet identified minimum standards for a subdivision to be approved by the City. 16.05.010 Required Public Improvements: 1. Streets: minimum requirements are a 50' width and gravel surface. 2. Telephone and electric lines: must be underground. 3. Water system: the subdivider shall provide the water system in accordance with the specifications established by the city planning and zoning commission and affirmed by the city council. Fire hydrants shall be provided to standards established by the American Waterworks Association and shall be a brand specified by the city. The subdivider shall not be required to drill individual wells. 4. Sewer system: Where the city sewer system will service the area covered by the plat or proposed plat, the subdivider shall provide the sewer system in compliance with all applicable state and federal health and environmental laws and regulations. 5. Street lighting: Street lighting shall be installed in accordance with the requirements of the city. In addition to the City of Seward Code, minimum standards contained in the Kenai Peninsula Borough Code under Title 20 must be met. Some requirements are more stringent in the KPB Code, and any deviation from the code requires a waiver. Geotech Based on the review of available geotechnical reports', geologic maps2, and LIDAR data3, the surficial geology of the subject site is expected to consist of thin soil deposits overlying bedrock. The thickness of soil deposits is expected to be generally less than 5 feet, and exposed bedrock is likely present in many areas, particularly on the steeper slopes. In flat areas bog deposits are expected consisting of saturated organic material and perched groundwater. The bedrock is mapped as the Valdez Group, composed of interlayered sandstone and phyllite. Actual bore holes have not been drilled on site to confirm the information gathered from existing sources. ' R&M consultants, Inc., Nash Road Extension Geologic Evaluation, November 1980. 2 Tysdal, R.G., and Case, J.E., Geologic Map of the Seward and Blying Sound Quadrangles, Alaska, USGS Map 1-1150, 1979. 3 https:Hgis.kpb.us/map/index.html?viewer=terrain 4& Innovating Todayfor Alaska's Tomorrow City of Seward - SMIC Bench Draft Feasibility Study June 2022 Page S Landslide risk at the subject site is considered low due to the thin soil and lack of evidence of past landslide activity. Excavations for road construction and site development are likely to encounter bedrock and may require blasting. The subject site is not expected to be suitable for conventional on -site wastewater disposal. Access The current access to the SMIC Bench area is via Nash Road, a paved road that extends around the east side of the bay and into Seward. There are currently no roads that access the SMIC Bench area and this feasibility study addresses the various issues and costs associated with constructing an access road up the mountain. Two primary constraints have been identified for development in this area: the steepness of the terrain and the presence of shallow bedrock. The slopes adjacent to Nash Road vary, but are consistently over 30 percent, with many areas up to 80 percent. The Kenai Peninsula Borough Code Title 14 Streets and Sidewalks, Roads and Trails Chapter 14.06 Road Standards identifies the following construction requirements for roadways: • 14.06.160 Road Construction Standards -Alignments: A. Vertical alignment. Roads shall be constructed in a manner such that grades shall not exceed, at any point, six percent on arterial roads and ten percent on all other roads, and no more than four percent within 100 ft. of any intersection. We have assumed that the access road to SMIC Bench would not be an arterial road and can be constructed to a maximum of ten percent. Two potential alignments connecting Nash Road with the SMIC Bench have been identified (see Figure 1). The main access alignment recommended accesses the northern portion of the developable bench area. The alignment switches back to maintain the ten percent requirements and is approximately 6,000 feet long. Because of the slopes along this alignment, no new lots can be created along the alignment until the top of SMIC Bench is reached. Secondary access would be provided via a 7,600-foot-long road originating at Nash Road and extending to the southern portion of the development. The road is designed to fit completely within the existing City of Seward tract so that no additional agreements are required with other property owners to build and maintain the road. The second impediment to construction is the shallow bedrock. Bedrock is good for stability, and dramatically decreases the chances of landslides, however, it increases the cost of road and site construction because it needs to be blasted rather than dug. It also precludes the use of traditional on -site sewer and water system that make the development of individual lots simpler and cheaper (see Utilities section below). Steep slopes and shallow bedrock add significant costs to road and utility construction for the project. jwklIk Innovating Today for Alaska's Tomorrow City of Seward - SMIC Bench Draft Feasibility Study June 2022 Page 9 [ 'I. T- IT 1 -4 T] o .r r A PLAT N! SOUTH A:CESS ROAD ' 7.643 LONG FROFA V ATER TAW t�. - Figure 1. Conceptual Roadway Alignments from Nash Rd. to SMIC Bench Development &�k Innovating Today for Alaska's Tomorrow City of Seward - SMIC Bench Draft Feasibility Study June 2022 Page 10 Utilities Providing public water and sewer to homes on the SMIC bench requires construction of significant infrastructure relative to the number of parcels being served. This section evaluates utility requirements in concept, including how improvements can be constructed in phases while supporting the future full build -out. Water Source The SMIC Bench development depends on the development of a water source with adequate quality and capacity. Based on the desktop geotechnical assessment of the bench study area, the high bedrock makes well development expensive. Depending on source aquifer hydrology, groundwater production, and water quality, wells on the bench may be entirely infeasible. The following solutions for providing the SMIC bench with water were considered: 1. Develop additional high production capacity public groundwater well(s) near existing city wells. Potential impacts to existing groundwater wells served by shared aquifer would need to be evaluated further. 2. Develop high -capacity public groundwater well(s) on bench - capacity and water quality are likely not adequate due to shallow bedrock and lack of water producing aquifers in bedrock. If a water source on the bench were deemed viable, it could be more cost efficient, depending on the well depth required through bedrock. This should be confirmed by geotechnical or hydrologic study. 3. Develop private groundwater wells on individual parcels. These are subject to the same challenges listed in #2 above. 4. Develop a surface water impoundment and water intake structure in nearby creek- not likely to be viable and will be influenced by climate conditions. This would require a new WTP be constructed on the SMIC bench. Booster pumps may also be required for source water transmission/distribution. 5. Connect to existing city water distribution network located at the bottom of the mountain south of Nash Road. This option requires constructing pumping stations to pump the water up the mountain, and large storage facilities on the SMIC Bench to store the water once on site. Water Treatment The existing water treatment plant (WTP) located near the correctional center serves a limited number of city customers in the area. The WTP will require expansion, modernization, and improvements to support the additional water demand presented by the SMIC bench. The WTP should be improved to increase output capacity and meet current water treatment regulatory requirements. The existing WTP should be further evaluated for its condition and suitability for expansion, improvement, or replacement. Water Storage Water storage tank(s) (WST) would likely need to be provided for the SMIC Bench development to serve anticipated community peak demands, emergency storage, and fire flows for the area. The tanks should be placed at an elevation which the system can provide minimum pressures to higher elevation homes. This may require dedicated access and a WST site higher than the development, approximate elevation of 1,200'. 4wkllIk Innovating Todayfor Alaska's Tomorrow City of Seward - SMIC Bench Draft Feasibility Study June 2022 Page 11 Water use and storage requirements are estimated based on the following design criteria: a. 3-bedroom residential homes b. 100 gal/capita/day c. School/commercial daily use (35k gpd) d. 3 days emergency storage. The water storage tank site can be developed to support the phased development. A smaller 0.5 million -gallon (mGal) tank will be constructed for Phase 1, with future expansion area reserved for the full build -out 1.5 mGal water storage tank. Water Transmission & Distribution Water must be supplied to the SMIC bench development to fill the WST and provide distribution system pressures. To supply treated water from the source well/WTP (elevation 100'+) to the bench/WST (elevation 1,200+), a series of booster stations supplying high-pressure transmission mains would be required. The booster pumps could be vault style or in above -grade structures. A high-pressure transmission main would be constructed. The SMIC Bench development parcel elevations range from approximately 700' to 1,050' which will likely require two or more hydraulic pressure zones managed by city pressure reducing valve (PRV) stations to maintain service pressures within the pressure range allowable by Uniform Plumbing Code (UPC) and the city code utility tariffs. Alternatively, homes could be supplied with in -home PRVs or booster pumps, but limitations exist due to the elevation differences. The following improvements will be required: 1. Booster Station and high-pressure transmission main from source wells/WTP to bench WST. 2. Intermediate booster stations for water transmission to SMIC bench along access road. 3. Pressure reducing valve stations to manage service pressures throughout bench development. Sewer Collection, Treatment & Disposal Due to the number of parcels, their density, topography, and size of the proposed parcels, on -site septic systems are not practical or suitable for wastewater disposal. On site -treatment and disposal for each lot is limited by the presence of groundwater, topography, and geotechnical conditions and must comply with minimum separation distances. Installation per lot would be approximately $30,000, and ongoing electricity and maintenance costs will be incurred by individual private property owners. Advanced on -site treatment systems (Advantex or similar) for individual parcels could be considered as an interim solution but these are not the most cost-effective design for the full SMIC build -out. A public sewer collection system maintained and operated by the city is recommended. Sewage would be collected at a Wastewater Treatment Plant (WWTP). The WWTF would provide for the secondary treatment of wastewater via mechanical processes. Final effluent disposal discharge quality parameters and wastewater effluent discharge receiving waters should be evaluated further. A WWTP requires active and ongoing facility management and maintenance including sludge disposal, electricity costs, replacement and servicing of parts, and presents additional energy costs to the city. Another alternative to the WWTP was considered. This alternative would pipe wastewater down the hill and discharge into the existing city sewer lagoon. The lagoon would require expansion approximately doubling its footprint, and AkIlk Innovating Todayfor Alaska's Tomorrow City of Seward - SMIC Bench Draft Feasibility Study June 2022 Page 12 associated improvements/upgrades. Due to the high-pressure sewer mains, wastewater pressure reducing stations are required. In -line hydro turbines could be considered to recapture potential energy, generate electricity, and supply power to the grid offsetting energy consumption by the booster stations. The improvements presented carry additional O&M costs and responsibility for the city public works department. The concept design goals and assumptions are subject to change as the site is investigated further and the project evolves. Electric and Communications Overhead electric is present along Nash Road adjacent to the SMIC Bench study area. Its capacity, condition, and suitability for serving the full build -out of the SMIC bench is unknown. Roadway lighting and other amenities on the SMIC bench may be considered. The City power utility is expected to provide conceptual costs and designs to provide electrical and communications service to the SMIC bench. Total Order of Magnitude Utility Development Costs Table 4 summarizes an order of magnitude cost estimate for providing water and sewer service to 750 parcels in the SMIC Bench "full build -out". The order of magnitude cost estimates should be updated as design assumptions evolve, and more information becomes available. Annual O&M and energy costs for operation of the water and sewer facilities are not included in this estimate and should be considered in a net present worth evaluation of project feasibility. Table 4. Full Build -Out Utility Expansion Order of Magnitude Cost Estimate SMIC Bench Feasibility Study - Utility Expansion - Order of Magnitude Cost Estimate Full Build -Out This cost estimate is a preliminary concept order of magnitude level of completion only. Estimator's contingency is intended to cover engineering and construction requirements not readily apparent at the concept level of evaluation, inflation, and escalation of construction costs. Work Description Unit Quantity I Unit Costl Cost Water Source, Treatment, Storage, Distribution Water Source Well Development Lump Sum 1 $250,000 S 250,000 Water Treatment Plant Lump Sum 1 S5,000,000 S 5,000,000 Treated Water Storage Tank Gallons 1.500,000 S4 S 5,250,000 Water Booster Station Each 3 S1,000,000 S 3,000,000 Water Transmission Mains Linear Foot 8,500 $325 S 2,762,500 Water Distribution Mains Linear Foot 19,000 $250 S 4,750,000 Pressure Reducing Valve Station Each 2 $450,000 S 900,000 Subtotal Water $ 21,912,500 Sewer Collection and Treatment Gravity Sewer Collection System Linear Foot 19,000 1 S275 S 5,225,000 Wastewater Treatment Facility Lump Sum 1 1 S16.000,000 S 16,000,000 Subtotal Sewer $ 21,225,000 Electrical Service and Communications Electric and Communications Service (Verify with Electric Utility) Estimator's Contingency (25%)l $ 10,784,375 Total Order of Magnitude Estimated Cost $ 54,000,000 4*klIik Innovating Today for Alaska's Tomorrow City of Seward - SMIC Bench Draft Feasibility Study June 2022 Page 13 Tsunami Center Site Potential The City of Seward is within a tsunami hazard zone. Currently there is no tsunami refuge location east of the Seward Hwy, resulting in people at the correctional center, SMIC harbor area, and residential neighborhoods accessed via Nash Road having to travel to the Seward Hwy and north to evacuate. If a significant earthquake event were to compromise the bridge on Nash Road, access to the Seward Hwy would not be possible. The SMIC Bench study area is at an elevation above the areas of potential impact for tsunami events and therefore presents an opportunity for a tsunami refuge location. Preliminary research to identify grant funding opportunities to mitigate this hazard revealed that new road construction intended to facilitate emergency evacuation was not an eligible use of funding through the existing hazard mitigation programs. Development Concept Overview The concept design shown in this report is a portion of Tract G, Fourth of July Creek Subdivision, Number 2, according to Plat No. 98-04, Seward Recording District, Alaska. Contours were obtained from publicly available LiDAR data from the Kenai Peninsula Borough GIS. The terrain within Tract G is very steep, which makes construction of an access road up the mountain to reach the SMIC Bench challenging. In addition, the Kenai Peninsula Borough (KPB) code stipulates, in 14.06.080 - Road Construction Standards -Construction categories, that a road that serves greater than 50 lots is designated as a Category IV road and cannot exceed 10% slope. Design concepts are based on all rights of way being 60 feet wide, with road slopes at, or less than, a 10% slope. In addition to the steep slopes, the soils in the area are shallow, and most of the site is expected to be near -surface bedrock. This means that all road construction will include a fair amount of blasting, which increases the overall construction costs. The north access road that connects the proposed subdivision with Nash Road will need to be approximately 6,000 feet long, with switch backs to accommodate the slope limits. A secondary access road will need to be constructed to meet secondary access requirements for subdivisions over 30 lots. The estimated cost of the road construction from Nash Road to the beginning of the proposed subdivision is $2,000 per linear feet of road. This does not include water and sewer but does include ditches and lighting. Individual lot development is also limited by steep slopes. In general, slopes up to 20% are developable, but slopes between 20% and 30% require additional effort and money to develop. Slopes over 30% require specialty measures to develop. The concept lots shown attempt to keep the slopes within individual lots at 20% or less, however, some lots are in slopes that exceed this due to necessity. Lot development is also hampered by the near -surface bedrock. This site condition inhibits the use of on -site sewer and water. Instead, the water will need to be pumped up the hill and stored in tanks at the top. A specialized sewer treatment system will also be required as typical leach fields do not work in bedrock. Concept Design The concept design features lots with a minimum area of 10,500 square feet. This size accommodates City of Seward code requirements for single family, duplexes, and multi -family houses. In general, for this type of terrain, more lots are needed to offset the high costs of road and utility construction. This design creates approximately 674 lots and requires 4&k Innovating Todayfor Alaska's Tomorrow City of Seward - SMIC Bench Draft Feasibility Study June 2022 Page 14 approximately 32,625 feet of local roads for access within the proposed subdivision. The cost of road construction is expected to be less than the main access road at $1,000 per linear foot but will still require blasting and on -site gravel production. Another feature of this design is a 12-acre parcel that can be used for development of a Tsunami Evacuation Area, parking for recreational trails, and potentially as an elementary school site in the future. Ten -foot -wide rights of way are also dedicated throughout the proposed subdivision to allow foot and bicycle traffic to access the 12-acre site without having to traverse completely around the subdivision using bike paths along the roads. These corridors would also create more direct access to other trails that might be developed on the hillside around the subdivision. See attached SMIC Bench Concept. The main barrier to achieving a concept design that financially breaks even or makes a profit is the cost of the road and utility construction. Within any given subdivision design, the lots along a section of the subdivision road that serves those lots must pay for itself at a minimum. The construction will include the road itself, ditches, bike paths, lighting, and underground electric, communication, and gas lines. These features are considered when generating a construction cost for a linear foot of road. This makes the equation simpler when comparing costs of construction to the market value of each lot created. At a minimum, the creation of a group of lots, served by a road corridor that includes all utilities and drainage, would pay for itself when the lots are sold. If the road costs are more than other areas within a given market, the market value of the lots must also increase proportionally, and it becomes a question of what the market will bear regarding the appeal of the lots. The concept design requires two access roads that begin at Nash Road, and extend to the top of the SMIC Bench. Because of the steep slopes between the road and the bench, there can be no lot development until the top is reached. Therefore, there is no offsetting lot sales available to pay for the construction of the 13,600 feet of road construction. The estimated cost of this road construction is $27.410M, which does not include the water and sewer costs. The interior subdivision roads on top of the bench are expected to cost $32.6M, bringing the total roads costs to $60M. Water, sewer, electric, and communication line costs for the entire 674 lot development is expected to be approximately $54M, driving costs upward to above $100M. Table 5. Estimated Concept Development Cost Summary Infrastructure Needed Estimated Cost for Full Included Contingencies Concept Development Road Construction from Nash Rd. to Bench $27.41 million 20% ($5.48 million) Interior Subdivision Roads $32.6 million 20% ($6.52 million) Water, Sewer, Electric, Communication Lines $54 million 25% ($10.78 million) Total Estimated Development Cost $114 million 20% ($22.78 Million) Price per Lot to break even on development $169,155 costs (total costs/674 lots) There are contingencies associated with each construction estimate. For example, the utilities estimate has a 25% contingency that adds $10.78M to the final cost; the utility estimate is based on 750 housing units to account for two or multi -family units on some of the proposed lots and ensure the water and wastewater systems would be right -sized for the potential development. Final construction costs could potentially be lower depending on actual conditions within the site, lowering the breakeven individual lot value. 4*kik Innovating Today for Alaska's Tomorrow City of Seward - SMIC Bench Draft Feasibility Study June 2022 Page 15 Feasibility Summary The SMIC Bench provides a large, buildable space to expand housing for the City of Seward. The crux of development is constructing access roads up the steep slopes to the bench and bringing utilities to the site. The expectation that the entire site is shallow bedrock also increases the costs of development. Roads and ditches would need to be blasted, and gravel crushed on -site for use as a leveling course. The bedrock also eliminates the option of on -site sewer and water for each lot. Instead, the water must be pumped up the hill, or a community well would need to be established at the top of the bench. In either case, a water storage system would also be required. On -site sewage systems would not be viable, so a treatment system would need to be constructed that would meet the needs of the entire community. Estimated costs for creating these systems is included in Tables 4 and 5. Utility Expansion Order of Magnitude Cost Estimate. The last consideration is the cost to maintain the improvements. Roads must be plowed. Sewage systems must be maintained. Water pumps and storage facilities require maintenance. With a subdivision such as this, it is imperative that the access road be maintained in a usable state. Any disruption caused by landslides, avalanches, earthquakes, or even on -going maintenance, would disrupt the entire community that resides in the subdivision. The SMIC Bench site is one of the only large areas in Seward that can add a meaningful amount of housing inventory for the city. Once the site is accessed, the bench offers over 240 acres of space to develop individual lots, a tsunami evacuation area, a potential school site, and access to millions of acres of public recreational land. The views from the bench would undoubtedly be stunning on a clear day, adding value to the created lots, and making the subdivision one of the more desirable ones in the city. For a subdivision of this size, a phased approach works best to avoid incurring the costs of constructing the entire subdivision prior to selling a single lot. A connection will need to be made between the north and south access roads to provide alternate access for the created lots. This connection would naturally fall along the south and west edges of the subdivision, which feature lots likely to have the greatest appeal and views. The southern and western lots would be expected to have a higher value once access and utilities are provided, and construction costs could be recovered more quickly than lots on the interior. After dual access is constructed, the rest of the subdivision could be developed as needed, and as more funding becomes available. Additional benefits of phasing the development is that the SMIC Bench area becomes available sooner to the community at large for recreational purposes. Once on the bench, multi -use trails can be established and be incorporated into future phased development. Trails built to accommodate a multitude of nonmotorized recreational uses, including cross-country skiing in the winter and mountain biking in the summer, could crisscross the bench resulting in trails with breathtaking mountain views on one side and panoramic views of Resurrection Bay on the other. Local hiking trails might be built to connect with established ridge trails to provide further access to millions of acres of recreational public land and scenic vistas. The Bench Community, if constructed thoughtfully, could satisfy the need for housing while creating miles of recreational opportunities for the citizens of Seward. The SMIC Bench subdivision has been designed to support a potential mix of zoning and housing development types including single family homes, single family with accessory dwelling units, duplexes, and multifamily developments to provide for significant and flexible housing unit expansion. The opportunities offered through the development of SMIC Bench are feasible and could help meet multiple high priority needs of the community and achieve identified goals of the City of Seward. The cities' Comprehensive Plan and Strategic Plan both encourage development of new housing, and the city and borough code support the proposed concept plan. The citizens of Seward are united in their love for the city 1 Innovating Todayfor Alaska's Tomorrow City of Seward - SMIC Bench Draft Feasibility Study June 2022 Page 16 and the outdoor space that surrounds it, but also understand that the city needs housing for people that live and work in the city year-round. This subdivision addresses the community's needs and values by creating housing opportunities surrounded by expansive nature, featuring panoramic views, and providing access to recreational opportunities otherwise available to so few. A& Imrovating TodayforMaska's Tomorrow 1 / III NOTES - \ 1. CONTOURS WERE OBTAINED FROM THE I,ULA PEN BOROUGH GIS, AND HAVE NOT BEEN FIELD VERIFIED. //J ` I 2. CONTOUR INTERVAL IS TEN FEET. U.11 +,e6 a M16 a L7RL p LL32— — — I2go yq lit,7L,2 L1 L� � s 0 9 D L -- — — L --- J L 1I L D I LKsJzLH G D OCK I —LOCK 2py I 55 z BL L 23 TRACTA 12ACRE SOOL/ aE za9g TSUNAMI CECNTER SITE uL38 Lll Lio D0 K6 26La CK 2T sa ryM OCK 7 L No L 6 I . pE01CATEp 60 RIGHT-0F NHY (TYP) o c Lll LDa �I j �LLJL �9L ` L \ L\a7 La I OC 5 I. L'O K85 I L.: OCzs \ Ls4 21 2G II LO K9 � 9 Z La LOCi' /4D 15 L L4 L 0 L 11D6 J 2 6 4 36 / a I L41 L42 RL4L39 11 IL17 L11 Lll L14 L33 Lazy /-'� LocKJLa Lie, jc> L�L2 2 La L Lsc L L47 L) �-� L71Ls ,G o,�•� ... L u L, L L3R' s, Ld rF �Lo K1 s OCR Laa ,a LT e Lae La7 Las L' .La \. L ��sa�a Lre +.,,,: � �,� LaF o s 6, L,e La L2D ,•.� I L9 L,D Lz, Laa L a L �� +Ip 14 L IT \a I Lai L3, r oEsia 42 N PROPOSED SMIC BENCH SUBDIVISION L'I BOCK Ln PLAT N 98-4 L A \ A 1,959 ACRE SUBDINSION OF TRACT G, FOURTH OF DULY 15 \ CREEK SUBDINSION, NUMBER 2. PER PLAT No. 98-09 �1 1 ! • \ 1 ) / % / I// I+ /l / \` LOCATED WITHIN TOWNSHIP 1 SOUTH, AND —1�PROPOSEp SOUTH gCCESS " RANGES 1 EAST AND 1 WEST, SEWARD MERIDIAN, ALASKA SEWARD RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALPSKP 9101 VDn9u.1. DLve. AnchoEa9e. Alaska. 995D7 PH (907) 522 1707 FAX (907) 522 3403 AECC 111 1 DCH 6D 200'l. A,a I�� II� �� 1 A , I I L�: � � .. .ED, xx P tt 2734.19 o Te O6nD/2024 9 ET. 1 of 1 TRACT I � '� ---------- L--=------ H, TRAC- ------------------- i I 00 \ / ORTH ACCESS ROAD \ �- \ 6,062' LONG $12.124M $2K PER FOOT @ So SOUTH ACCESS ROAD 7,643 LONG FROM WATER TANK $15.286M @ $2K PER FOOT / \ 20C / , v b AREAv�'° ! 833.14 AC I PERIMETER i 26,299.55 FT F j