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HomeMy WebLinkAbout08092006 PACAB Packet Seward Port and Commerce Advisory Board . Regular Meeting , . ~,) ... August 9, 2006 Regular Meeting City Council Chambers Beginning at noon SEWARD PORT AND COMMERCE ADVISORY BOARD Regular Meeting August 9, 2006 NOON COUNCIL CHAMBERS Deborah Altermatt Chair Tenn Expires 2007 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE Karl Van Buskirk Vice Chair Tenn Expires 2007 3. ROLL CALL Bruce Martin Board Member Tenn Expires 2009 4. SPECL4.L ORDERS, PRESENTA nONS AND REPORTS A. ARRC Representative Louis Bencardino Vacant Board Member Tenn Expires 2009 B. KPB/EDD- City Councilmember Yaldatta Ron Long Board Member Ternl Ex~ires 2008 C. Administrative Rep0l1 VllCanC\ Board Member Tenn E\;pires 2008 " Citizens' comments on any subject except those items scheduled for public hearing. [Those who have signed inl1'iiI be given the first opportunity to .speak. Time is limited to 2 minutes per ,speaker and 30 minutes TOtal time for this agenda Item) Vacanc, Board Member Tenn Expires 200S 6. Approval of agenda and consent agenda [Approval (d' Consellt Agenda passes all rolltme items indicated hy asterisk Clark Corbridge Cit\ Manager 7. UNFINISHED BLJSINESS .. Scott A. Ransom Harbormaster A. Discuss PACAB work session on July 19,2006 -Alternative Energy - Tidal Energy..........................................Page 3 ... Christy Terr~ Executive Liaison B. Goals and Priorities - On-Going.....................Page 23 *c. June 7, 2006 regular meeting minutes................Page 24 City afSeward, Alaska August 9, 2006 PACAS Agenda Page 1 8. NEW BUSINESS-None. 9. CORRESPONDENCE, INFORMATIONAL ITEMS AND REPORTS (No action required)-None. 10. BOARD COMMENTS ....... 11. CITIZENS' COMMENTS [5 minutes per individual- Each individual has one opportunity to speak.] 12. BOARD AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENT 13 ADJOURNMENT of - City of Seward, Alaska August 9,2006 PACABAgenda Page 2 .' \ " " Company Overview & Development Plan GJ orpc oceanrenewable power company A Diversification Option for Alaska: Emission-Free Renewable Electricity from the Endless Energy of Alaskan Tides July 2006 orpc The OlWortunity lilt has been estimated that if less than 0. 1 % of the renewable energy available within the oceans could be converted into electricity, it would satisfy the present world for energy more than five times over. " - UK Marine Foresight Panel, 2000 ....c www.OceanRenewablePower.com . . . Alaska tidal resources are the most robust in North America Page 2 of 20 ; , ORPC Background v, .:. ORPC's principals include professionals with extensive experience in the development and financing of cogeneration, independent power and renewable energy facilities, and in the management of technology development and startup companies .:. ORPC entered into a Cooperative Research and Development Agreement (CRADA) with the U.S. Navy (Naval Surface Warfare Center - Carderock Division, "NSWCCD") to assist in technology evaluation and selection and the development of designs that are robust enough for underwater deployment in the ocean .:. In addition to NSWCCD, ORPC has a core advisory team of highly respected experts in the fields of naval architect, deep sea mooring, turbines, legal, regulatory process and environmental permitting WWW.OceanRenewablePower.com Page 3 of 20 ORPC Business AlWroach ORPC's business approach is threefold: 1. To utilize commercially available technology and equipment, including that which has recently been developed and proven 2. To integrate the technology and equipment into an innovative, rugged, and efficient modular design that can be easily adapted and deployed in both open ocean and tidal current projects and that can be replicated at many locations worldwide 3. To develop a single project initially, followed by a series of projects, which utilize the project design(s) and take advantage of econom ies of scale ORPC initially focused on developing a proprietary design of an ocean current generation (OCGen™) module to generate electricity from constantly flowing ocean currents. As development of the OCGen™ module progressed, ORPC expanded its capabilities to efficiently generate electricity from tidal currents. ~ www.OceanRenewablePower.com .. Page 4 of 20 . -J . ORPC Management Team The ORPC management team includes highly experienced professionals with decades of experience in power generation, technology development, executive management, as well as development, financing and operation of projects. Christopher R. Sauer, P.E. - Over 35 years in energy facility development, financing and construction, executive management, energy/environmental technology development and startup company formation and management Captain Paul H. Wells - Over 35 years in operations and management in the shipping, shipbuilding, cruise ship and ship consulting industries John R. Cooper - Over 30 years in the energy industry in project finance, corporate finance, and corporate structuring and restructuring Martin R. Walicki - 28 years in finance, treasury, accounting and management in the utility and energy industries Ernest K. Hauser - Over 30 years in energy facility development, project management, construction, operations and executive management Patrick J. McGinnis, P.E. - Over 20 years in engineering and technology development in the aerospace and defense industries and in development of advanced concepts in shipboard machinery systems for the U.S. Navy Charles D. Syverson, P.E. - Over 25 years technology development, design and engineering of electrical/mechanical equipment and systems for renewable energy and other industries www.OceanRenewablePower.com Page 5 of 20 Kgy ORPC Strategic Alliances ORPC has developed key strategic alliances with a group of leading professional organizations to assist its management team is achieving the ORPC mission Technical & Environmental Resources CO · Naval Surface Warfare Center-Carderock Division: Technology & Design Evaluation · GCK Technologies: Turbine Design & Manufacturing · Knud E. Hansen: Naval Architecture · FERC Permits, Environmental Studies & Permitting: Devine Tarbell & Associates · Alaska Site Surveys: Master Maritime · Oceanography & Marine Design: Florida Atlantic University · Ocean Current Prototype Testing: U.S. Navy South Florida Testing Facility Legal. Communications & Government Relations · Legal Counsel - Intellectual Property & Contracts: Venable, LLP · Corporate Counsel: Chadbourne & Park · FERC Counsel: C. Elefant · Government Relations: SMI, Inc. · Media Communications: Symmetric, LLC · Website/IT: Net U Try · Accounting: Gordon & Co. www.OceanRenewablePower.com Page 6 of 20 . . ORPC/NSWCCD Cooperation orpc "This CRADA will benefit the Navy by supporting Carderock Division's core equities in hydromechanics; and national energy security, domestic supply, and infrastructure stability will be strengthened and sustained." William A. Venezia, Ph.D., Chief Engineer, South Florida Testing Facility, NAVSEA Warfare Centers Justification for entering into a CRADA with OR PC -\J Cooperative Research & Development Agreement <CRADA) n: The Naval Surface Warfare Center - Carderock Division (NSWCCD) entered into a CRADA with ORPC in June 2005, expanded in January 2006 n: NSWCCD provided technology and equipment evaluations and selection, design input and review, constructability and maintainability oversight, and design considerations for operations in a marine environment n: NSWCCD South Florida Testing Facility (SFTF) also provided data and analysis of current flow in the Florida Current at ORPC's preferred site www.OceanRenewablePower.com Page 7 of 20 Market for OCGen™ Power orpc The market for OCGen™ technology is impossible to quantify since ocean and tidal currents flow in all regions of the world and seventy percent (70%) of the world's population lives within 200 miles of an ocean. However, ORPC believes the market fits into four (4) general categories as follows: o Coastal electric utilities in major population regions * OCGen™ projects can provide a reliable source of base load or predictable electricity that can be interconnected to major substations in key load centers 8 Remote coastal communities not connected to an electric grid * OCGen™ projects can provide a reliable source of base load or predictable electricity to small populations centers that have no access to large utility generating facilities and rely on small, high cost plants o Military (U.S. Navy, Coast Guard, etc.) facilities * OCGen™ technology can provide reliable, secure, "invisible" and readily available and deployable electric power at remote locations around the world - particularly important in the context of a sea-based military o Offshore production of hydrogen and/or potable water * OCGen™ projects can provide a reliable source of base load electricity for offshore production of hydrogen and potable water from sea water on deep water platforms from which the hydrogen and/or potable water would be brought to the mainland in large cargo ships (tankers) -- o www.OceanRenewablePower.com Page 8 of 20 . orpc Tech nol09 ical I n novation Competitively priced power from an endless natural resource with no gas or liquid discharges to the environment Ocean current vs. other renewables: );> Water has a higher energy density than wind );> Ocean and tidal currents are predictable );> There are no visibility issues OCGen™ Design. philosophy: );> Maximize simplicity of design, efficiency and reliability );> Locate projects where ocean and tidal current power potential is greatest );> Develop a modular, rugged, low maintenance OCGen™ module design: x Two ducted turbines drive a single generator x Turbines capture energy from currents regardless of flow direction x Installed in arrays consisting of a few modules to dozens of modules x Single underwater transmission line to shore x Brought to the surface for easy maintenance );> Minimize any potential environmental & marine impacts www.OceanRenewablePower.com Page 9 of 20 The OCGen™ Module orpc ... Approx. 49 Feet (15 Meters) . Turbine Ducting Approx. 1 3 Feet . ~ (4 Meters) ... 3:1- u. III ... _ CLI ... - CLI )( ~ o In ... . a.,., a. ..... <( . .. .. . ........--. . ..... :Outgoing $- 9. Tide $= . ,- .. .-. . . . . ..... .. .. ~ Underwater T-line ~ Front/Back View Side View Kev Design Features . Nominal generating capacity of 118 kilowatts (KW) in a 5 knot current . Unique patented turbine rotates in one direction only, regardless of flow direction . Modular design for turbines and generator/power electronics for ease of assembly and maintenance - 2 ducted helical turbine segments drive a single generator . OCCenT'" modules can be mounted on various support structures in many differing orientations (underwater foundations, floating platforms, submersible structures, etc.) . OCCenT'" modules can be deployed in large arrays consisting of multiple modules that are connected to an on-shore electric substation using an underwater transmission line . Each OCCenT'" module can be synchronized with the on-shore electricity grid . Operations are monitored and controlled from on-shore computers . Modules can be brought to the surface for inspection and maintenance . aCCenT'" modules can generate electricity from tidal currents and open ocean currents www.Oce.anRe.ne.wab/e.Powe.r.com Page. 10 of 20 . . v Ocean & Tidal Pro tot Project Phase c:> Final Design c:> Environmental Studies c:> Detailed Engineering c:> Equipment Procurement c:> Permits & Approvals c:> On-Shore Assembly c:> Module Installation c:> Operation & Testing c:> Performance Monitoring c:> Data Collections c:> Design Improvements Equity Investment and/or Government Funding ORPC Evol ution Commercial Operations Phase .' Design Adaptations (ocean & tidal) . Market Development . Strategic Partners . Economic Evaluations . Site Development Project Development . Maintenance Services . Worldwide Expansion -Spin-off Businesses . Continuous Improvement Commercial or Project Financing ORPC is developing two OCGen™ prototype projects: o an open Ocean Current Prototype in the Florida Current 8 a Tidal Current Prototype in Alaska and/or Maine with the goal of installing both types of prototypes within two years. Upon completion of the prototype project(s), ORPC will develop, permit, finance, build and install commercial-size OCGen™ projects at its sites. www.OceanRenewablePower.com Page 11 of 20 ORPC Development Schedule Development Schedule -+:: Technolo Evaluation Finalize Conce t OC Protot e & Feasibility Analyses & Design Module Monitoring, Testing & Inspection TC Protot e Monitoring, Testing & Inspection I I rlllllll......II.I.IIII...I.II.I..I...II.II..I.I..I.....t~ Oct-04 Jan-06 Oct-06 Jul-07 Apr-08 Jul-08 Apr-09 Jul-09 Key OCGen™ Prototype Proiect Activities n: Perform final engineering and procurement of OCGen™ modules and platforms n: Obtain required environmental, governmental and regulatory permits and approvals n: Assemble, and install prototype modules, platforms and mooring systems n: Monitor prototype performance and collect key current and environmental data n: Make appropriate modifications to OCGen™ module designs based on performance and environmental data www.OceanRenewablePower.com Page 12 of 20 . Tidal Prototype Scope of Work orpc lI\ Upon completion of funding and permitting, ORPC will engineer, fabricate, assemble, install, operate, test and monitor a full-scale prototype OCGen™ module at one of ORPC's tidal sites. · The prototype project will be located at one of the ORPC sites in Alaska (Cook Inlet, Resurrection Bay or elsewhere) or Maine (Western Passage) · A submersible platform or foundation structure will be designed and built to provide structural support and stability for the OCGen™ module · The submersible support system will allow for lowering and anchoring the OCGen™ module in the water, securing it into position at a prescribed depth · All require environmental and other permits and approvals will be obtained prior to installation of the prototype OCGen™ module · The OCGen™ module will be field assembled at a local port facility and installed at the prototype site · The prototype module will be operated, tested and monitored for a period of 12 months, during which relevant data will be collected, including current characteristics (flow rate, direction) and marine environment (noise, fish, etc.) · The prototype will be used to prove and improve the design of the OCGen™ module and support platform and develop final design, installation and O&M criteria for future projects to be installed in tidal ocean currents www.OceanRenewab/ePower.com Page 13 of 20 Tidal Current Project Sites 6' ORPC is assessing the development of tidal current projects at sites in the upper Cook Inlet adjacent to Anchorage, AK, in Resurrection Bay adjacent to Seward, AK and elsewhere in Alaska, as well as in the Western Passage adjacent to Eastport, ME )( Applications for Preliminary Permits for all three identified site areas have been submitted to FERC )( All the ORPC site areas will accommodate the development of projects consisting of a large arrays of OCGen™ modules and it is ORPC's intent to develop commercial-size projects at all sites )( Studies are underway to evaluate additional tidal sites in Alaska (from Cook Inlet through Southeast Alaska), British Columbia, Maine and Canada )( Projects developed within the identified Alaska site areas will be connected to the electrical grid which serves the Anchorage area and Kenai Peninsula )( Additional sites in Alaska may serve remote coastal communities )( Projects developed within the Maine site area will be connected to the electrical grid in Maine through Bangor Hydro )( The tidal currents at all of the Alaska sites are under study to determine which specific sites have the best tidal current velocities and other desirable site characteristics www.OceanRenewablePower.com Page 14 of 20 . ~ ~ orpc Tidal Current Project Site Info ....J www.OceanRenewablePower.com Page 15 of 20 ..--.- o\) Alaska Development Plan orpc ORPC's development plan for Alaska includes the following steps: ~ Identify potential sites and submit FERC Preliminary Applications ~ Meet and seek input from site host communities, state officials & agencies, electric utilities, the environmental community and other Alaska stakeholders ~ Gather all available data and other information related to tidal current velocities, bathymetry, aquatic species, marine uses, navigation, etc. for Cook Inlet, Resurrection Bay and other Alaska sites ~ Perform any studies required to acquire information that is needed but not currently available ~ Evaluate all site areas for suitability as sites for commercial OCGen™ projects and as a preferred site for an OCGen™ prototype module ~ Determine environmental and regulatory requirements for prototype and commercial projects ~ Obtain funding for one or more tidal current prototype projects ~ Engineer, manufacture, assemble, install, operate and monitor a prototype module for 12 months (at a site to be determined) ~ Based on results of the prototype project, develop, permit, finance, build, install and operate commercial-size OCGen™ projects in all viable Alaska project sites (currently identified and new sites) www.OceanRenewablePower.com Page 16 of 20 Although electricity generated from tidal currents offers many benefits, it also has limitations and uncertainties that must be considered in a comprehensive electricity plan for Alaska, including: . Tidal power is not the whole solution - it is an important component of a comprehensive solution . The generation of electricity from tidal currents ebbs and flows with the speed of the currents, i.e., it is predictable but not a base load resource and requires other resources for load following . The jurisdictions and specific requirements for licensing and environmental permitting of tidal energy projects is subject to variable interpretations, agency disputes, ambiguities and other adverse impacts which make it very hard to predict implementation schedules . Since OCGen™ technology (and all other tidal power technologies) are not mature technologies, there is a risk of delay in the commercialization and implementation of the technology -P www.OceanRenewablePower.com Realities of Tidal Power Page 1 7 of 20 orpc Benefits to Alaska If built, the OCGen™ projects would bring significant economic, environmental and other benefits to host communities and to all of Alaska, including: . A reliable and predicable supply of electricity to communities that are connected to the Anchorage transmission system as well as to large and small remote coastal communities t5 . An affordable and sustainable electricity supply without the price volatility of fossil fuels . Jobs and services needed to assemble, install, operate and maintain the OCGen™ modules . Emission-free electricity that is generated with no liquid or gaseous discharges to the environment . A renewable energy supply with no visibility (view shed) issues (The view before is the same as the view after.) . Efficient utilization of one of Alaska's most abundant natural resources (tidal currents) in an environmentally acceptable and sustainable manner . Establishment of Alaska as a major hub of eco-friendly ocean current energy www.OceanRenewablePower.com Page 18 of 20 orpc ORPC's AQProach . ORPC is early in the development process for the Cook Inlet, Resurrection Bay and other Alaska sites and many challenges remain so ORPC can make no guarantees, at this point, that the OCGen™ projects will be built. .. Given the uncertainties of the licensing and permitting process, the schedules for project implementation will likely vary. . ORPC will do everything in its power to try to make the OCGen™ projects a reality on a reasonable schedule. . We welcome the support and involvement of local and state officials, electric utilities, the environmental community and other key Alaska stakeholders in the planning and execution phases of the OCGen™ projects. tJ www.OceanRenewablePower.com Page 19 of 20 ~ ~ Thank You orpc On behalf of Ocean Renewable Power Company, thank you for your time, consideration and your interest in the OCGen™ technology as a diversification option for Alaska's future electricity supply portfolio. Generating Emission-Free Electricity from the Boundless Energy of the Ocean www.OceanRenewablePower.com orpc www.OceanRenewablePawer.cam Page 20 af 20 PORT AND COMMERCE ADVISORY BOARD On-Going Project List July 5, 2006 & I CURRENT PROJECTS WITHIN SIX MONTHS OR LESS REVISIT DATE UPDATE BOARD WITH STIP PROJECTS ANNUALLY EASTWARD EXPANSION SOUTH FLOATS IN SMIC NEW COMMERCE GRANT MONEY REC'D FOR FIRE TRAINING CENTER@SMIC DOWNTOWN REVITALIZATION MULTI-AGENCY IN PLANNING STAGE FISH RESTORATION HELD WORK SESSION, ASLC LOOKING FOR $ & HAS PEN IDEA HARBOR IMPROVEMENT INFRASTRUCTURE CONTINUING DISCUSSIONS NORTH DOCK PROPOSAL IS AT THE CORP, PROJECT IS BEING REVIEWED SHIPLlFT EXPANSION TRANSFER PIT WORK RAIL AND FINISH EXPANDING ALTERNATIVE ENERGY SOURCES RESOLUTION 2006-02 TO COUNCIL HIGHWAY IMPROVEMENTS 0-8 WORK BEGAN 4/25/06 ROCK QUARRY ENCOURAGE ROCK SALES NEW FIVE ACRE FILL AREA CONTINUING DISCUSSIONS PRISON CONTINUING DISCUSSIONS LONG-TERM PRIORITIES OVER SIX MONTHS REVISIT DATE HARBOR DEFERRED MAINTENANCE SOUTH HBR. RENOVATION/IMPROVEMENTS CAPITAL REQUESTS FOR 2007 AIRPORT IN CAPITAL REQUESTS FOR 2007 COAL FACILITY FUTURE MASTER PLAN MEETING FOR ROAD TO AIRPORT HELD MARKETING CONTRACT SIGNED VENEER PLANT BRAND ANNOUNCED ROAD TO SMIC KPB/EDD'S PROJECT PRISON COMPLETED City of Seward, Alaska June 7, 2006 Port and Commerce Advisory Board Minutes Volume 3. Paf?e 220 CALL TO ORDER The regular June 7, 2006 meeting of the Seward Port and Commerce Advisory Board was called to order at 12:04 p.m. by Chair Altermatt. PLEDGE OF ALLEGIANCE TO THE FLAG Was led by Board member Martin. ROLL CALL There were present: Deborah Altermatt, presiding, and DRAFT D. J. Whitman Jerry Waliezer Bruce Martin Ron Long Absent: Karl Van Buskirk Comprising a quorum ofthe Board; and Scott A. Ransom, Harbormaster Robert Valdatta, Councilmember/KPB/EDD Representative Louis Bencardino, Alaska Railroad Corporation Representative Judi Sweeney, PACAB Secretary SPECIAL ORDERS, PRESENTATIONS AND REPORTS Louis Bencardino, ARRC Representative reported that business is good and has nearly doubled. He said they are upgrading the tracks from Fairbanks to Seward. The Navy ship U.S.S.ChafJee was in port for the last few days. He said they were happy with their visit to Seward and presented a picture to the American Legion. He thanked the City for providing sewer service to the ship. He mentioned that a special roof coating was applied to the building and has a ten-year guarantee. He reported on a meeting with Totem Ocean Trailer Enterprises, (T.O.T.E.). discussing the logistics of loading and unloading freight from barges and ships. He spoke in favor of the Coal-fired generation plant saying that the Railroad would like see a contract signed by the City before they commit to a land lease. They are supportive of the coal plant. ~L( City of Seward, Alaska June 7, 2006 Port and Commerce Advisory Board Minutes Volume 3, Paf?e 220 Robert Val datta, Council representative on EDD, said he did not have anything to report concerning EDD at this time. He said that the fish weir (Cook Inlet Aquaculture) facility had 45,000 red salmon return to date. Harbormaster Ransom reported on the May 24 work session with the full Council, three from the U.S. Army Corps, Kim Nielsen from TNH, Ron Long and three Congressional representatives via telephone. He said it was a very productive session. He said the Corps admitted they made a mistake on the design of the breakwater and they have a willingness to resolve the issue. Ransom said the Corps visited the City's rock quarry and felt it was organized well enough to do the project. Kim Nielsen, TNH Engineer gave a report on the progress of the harbor project. She said the final inspection with Lash Construction is scheduled and the projected closeout should be by the end ofthe month. She said they are working on float water, sewer and the design of the uplands. CITIZEN'S COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING: NONE DRIJ f'!'~i APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (LonglWaliezer) Approve the Agenda and Consent Agenda including the minutes of May 3,2006. Motion passed by unanimous consent. UNFINISHED BUSINESS Alternative Energy Ransom said there had been a good turnout for the (May 29) work session held with Council. Mark Marlow, Seward Co-Generation suggested that a five-member committee be formed consisting of the following: one P ACAB member, Marlow, Resurrection Bay Conservation group member, a council member and a member of administration. A1termatt said she would be giving a presentation to Council per their request for information on other avenues of alternative energy options and asked if anyone from the board had any information they would like to share with her. Long will be the PACAB representative with Waliezer and Martin as alternates. Goals and Priorities - on going list mention that the Corps is about to sign off on the upland. NO CHANGES NEW BUSINESS Seward Economic Development Plan Altermatt explained that this was just an on the agenda for discussion. Long gave an overview ofthe Seward Economic Development Plan booklet and the figures and charts were taken from the KPB's of the third and fourth quarter oflast year showing values rather than permits. He explained that (building) permits are required for things that never used to require permits like inside structural improvements. Fish Head Processing Plant Ransom explained this is a group from Korea that is interested in buying fish heads. Ransom said he made some phone calls and was waiting for a reply. 1,.5 City of Seward, Alaska June 7, 2006 Port and Commerce Advisory Board Minutes Volume 3, Pa{;e 220 Modular Housing Martin explained that this group is just inquiring about manufacturing modular homes in Seward. He said they would be meeting with A VTEC on Tuesday, June 13,2006. The interested party liked how Seward is the railhead, deep-water port and can get material from anywhere to here. CORRESPONDENCE, INFORMATIONAL ITEMS AND REPORTS: NONE BOARD COMMENTS: Following discussion, Waliezer volunteered to give the presentation regarding alternative energy to the Council. CITIZENS COMMENTS: Willard Dunham asked about the plans for the upland area created by the harbor expansion. Harbormaster Ransom said that there was an opinion paper written by City attorney, Brad Meyen with suggestions for the land use of the upland area. Dunham commented the plan is strictly up to us (Council) and we are not going to rush this plan through. BOARD AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS: ADJOURNMENT The work session ended at 1 :30 p.m. ~~ ~~ Judi Sweeney Board Secretary Deborah Altermatt Chairman (City Seal) w