HomeMy WebLinkAboutRES2023-116 Heat Loop Project Grant Sponsored
OF SEWARD,ALASKA by: Sorensen
RESOLUTION 2023-116
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ACCEPT THE
SEWARD GEOTHERMAL HEAT PUMP PROJECT GRANT #DE-
EE0010668 IN THE AMOUNT OF $192,150.00 FROM THE OFFICE OF
ENERGY EFFICIENCY & RENEWABLE ENERGY OF THE U. S.
DEPARTMENT OF ENERGY (DOE) FOR FEDERAL RENEWABLE
ENERGY RESEARCH & DEVELOPMENT AND AUTHORIZING A CITY
IN-KIND AND CASH COST SHARE OF $20,760.00 FOR A TOTAL
PROJECT COST OF$212,910.00 AND APPROPRIATING FUNDS
WHEREAS,the City Council directed the Port& Commerce Advisory Board (PACAB)
to create an Ad hoc Committee to seek funding sources for the Heat Loop project; and
WHEREAS, the Ad hoc Committee, The City of Seward, AVTEC, NREL, and YCE
make up the Heat Loop Coalition, who applied for a Department of Energy Grant; and
WHEREAS, The City of Seward was selected on April 25, 2023, by the U.S. Dept. of
Energy (DOE), for a community-scale heating and cooling system that will refine the existing
design of a CO2 heat-pump system to meet nearly all heating demand for half of the municipal
buildings; and
WHEREAS, on September 28, 2023, the City of Seward was awarded $192,150.00 for a
finalized design of a fourth-generation,community-scale tidal source Geothermal District Heating
and Cooling System(GDHC); and
WHEREAS,US Department of Energy Grant funds will be used for the next stage of data
collection, research,planning and design that will ultimately lead to construction; and
WHEREAS, the grant requires a cost share of$20,760.00 which includes in-kind cost
share, a majority of which will come from the Ad hoc Committee volunteer time and City staff
time. The remainder, if any,will be a cash contribution.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA,that:
Section 1. The Seward City Council hereby authorizes the City Manager to accept
grant#DE-EE0010668 in the amount of$192,150.00 from the Renewable Energy, Research&
Development for the purpose of planning and design of a ground source heat pump and district
system for four municipal buildings. The project period for this grant is October 2023 to
November 30, 2024.
Section 2. Funding in the amount of $192,150.00 is hereby accepted in DOE Grant
Revenue Account 80042-0000-4251.
CITY OF SEWARD,ALASKA
RESOLUTION 2023-116
Section 3.This resolution shall take effect immediately upon approval.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 23rd
day of October 2023.
THE CITY OF SEWARD,ALASKA
Sue McClure, Mayor
AYES: Crites, Calhoon, Finch, Barnwell, Osenga, McClure
NOES: None
ABSENT: Wells
ABSTAIN: None
ATTEST:
0.
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Kris Peck t ;S' ..-.. s
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City Clerk 5 •• SEAL • •
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City Council Agenda Statement
Meeting Date: October 23,2023
To: City Council
Through: Kathleen Sorensen, City Manager
From: Jason Bickling,Assistant City Manager
Subject: Resolution 2023-116: Authorizing The City Manager To Accept The Seward
Geothermal Heat Pump Project Grant#De-Ee0010668 In The Amount Of
$192,150.00 From The Office Of Energy Efficiency&Renewable Energy Of
The U. S. Department Of Energy (Doe)For Federal Renewable Energy Research
&Development And Authorizing A City In-Kind And Cash Cost Share Of
$20,760.00 For A Total Project Cost Of$212,910.00 And Appropriating Funds
Background and justification:
In 2014,the City authorized the drilling,subsequent well testing,and data collection by Your Clean Energy
LLC(YCE)to determine if the City could utilize heat from Resurrection Bay for a district heat system. The
economic evaluation was finalized in September 2015 with results pointing to the feasibility of the project.
Resolution 2018-089 authorized the City to accept a grant from the Alaska Energy Authority (AEA) to
construct a ground source heat pump district heat system utilizing the Resurrection Bay. The District Heat
Pump Project was delayed through the pandemic and is now moving forward again.
One of the Port and Commerce Advisory Board(PACAB)priorities is to explore energy alternatives(Wind,
Solar,Geothermal,Hydroelectric,etc.)Resolution 2022-038 directed the PACAB to create and lead an Ad
Hoc Committee of interested community members to identify available fund sources to continue the ground
source/Seward district heat system project to completion.
The Heat Loop Ad Hoc Committee and the City of Seward, in collaboration with the NREL, YCE, and
AVTEC, form the Heat Loop Coalition,which applied for a DOE grant. The U.S. Department of Energy
awarded the grant on September 29,2023,for$192,150. The funds to accomplish the work are expected to
total$212,910.00,which includes the cash and in-kind cost share on the city's behalf. This in-kind will come
from the Ad-hoc volunteer time. These grant funds will provide for the next step in planning including
further data collection, modeling, and planning as it builds toward a construction phase. This resolution
accepts the funds for the grant.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with(citation listed):
Comprehensive Plan: 3.1.1.2 Support efforts to develop alternative energy sources
Strategic Plan:
Other:
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Certification of Funds
Total amount of funds listed in this legislation: $ 0
This legislation(✓):
X Creates revenue in the amount of: $ $192,150
Creates expenditure in amount of: $
Creates a savings in the amount of: $
Has no fiscal impact
Funds are(✓):
Budgeted Line item(s):
Not budgeted
Not applicable
Fund Balance Information
Affected Fund(✓):
General SMIC Electric Wastewater
Boat Harbor Parking F1 Water F1 Healthcare
Motor Pool Other
Note: amounts are unaudited
Available Fund Balance $
Finance Director Signature:
Attorney Review
RxYes Attorney Signature:
Not applicable Comments:
Administration Recommendation
eAdopt AM
Other:
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