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HomeMy WebLinkAbout08142019 PACAB Packet City of Seward Port and Commerce Advisory Board Regular Meeting 64th Annual SEWARD SILVER SALMON DERBY JJJ J , August 10-18, 2019 Seward,Alaska Wednesday, August 14, 2019 City Council Chambers Beginning at 12:00 p.m. SEWARD PORT AND COMMERCE ADVISORY BOARD MEETING AGENDA August 14,2019 12:00 p.m. Council Chambers Christy Terry 1 . CALL TO ORDER Chair Term Expires 2022 2. PLEDGE OF ALLEGIANCE Bruce Jaffa Vice Chair 3. ROLL CALL Term Expires 2021 Carl Hughes 4. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT Board Member THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Term Expires 2020 [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 time for this agenda Colby Lawrence item.] Board Member Term Expires 2022 5. APPROVAL OF AGENDA AND CONSENT AGENDA [Approval of Consent Agenda passes all routine items indicated by asterisk Laura Schneider (*). Consent Agenda items are not considered separately unless a council Board Member member so requests. In the event of such a request, the item is returned to the Term Expires 2020 Regular Agenda] Lynda Paquette 6. SPECIAL ORDERS,PRESENTATIONS AND REPORTS Board Member A. Other Reports and Presentations Term Expires 2021 1. Alaska Railroad Report by Christy Terry Erin Lemas 2. Chamber of Commerce Report by Cindy Clock Board Member 3. Harbormaster Report by Norm Regis ........... Pg. 3 Term Expires 2021 4. Administration Report by Brennan Hickok 5. Update from the Climate Action Plan Committee Scott Meszaros City Manager Brennan Hickok Assistant City Manager Norm Regis Harbor Master Brenda Ballou City Clerk City of Seward, Alaska PA CAB Agenda August 14, 2019 Page I 1 7. UNFINISHED BUSINESS —None 8. NEW BUSINESS A. Resolutions 1. Resolution 2019-003, Recommending City Council Continue With The Seward Chamber Of Commerce, Conference And Visitor's Bureau As The Designated Lead Marketing Entity For The City Of Seward. (Terry) ..................................... Pg. 5 B. Other New Business Items *1. Approval of the July 24, 2019 PACAB Meeting Minutes. ............................ Pg. 7 2. Review and discuss the results and findings of the Lowell Canyon Hydroelectric Study. ....................................................................................... Pg. 11 3. Discuss the status of the city's Interconnect Policy. (Paquette) 4. Review and edit the draft advertisement for the September 24, 2019 Climate Action Plan Community Meeting, and direct the clerk to place advertisement(s). Pg. 31 10. INFORMATIONAL ITEMS AND REPORTS (No Action Required) A. PACAB 2019 Goal Calendar ........................................................... Pg. 32 B. PACAB Resolution 2019-01, PACAB Priorities from February, 2019 to February, 2020 ........................................................................................ Pg. 34 C. PACAB Meeting& Work Session Schedule for September, 2019 ................ Pg. 36 It. BOARD COMMENTS 12. CITIZEN COMMENTS 13. BOARD AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS 14. ADJOURNMENT City of Seward, Alaska PACAB Agenda August 14, 2019 Page 2 2 PACAB Report July 31, 2019 Harbormaster Norm Regis 1. The Harbor has hired a new Harborworker II to replace the one who moved south so his wife can finish her college education. 2. The transfer site has been working with the harbor on the increase of garbage that is being dump at most of the harbor locations. 3. The 50 ton was down for one day doing routine maintenance,we are on our two year cycle to replace the cables, change all the fluids in the gear boxes. 4. The 330 ton lift all the gear box fluids have been replaced, service the sheaves and changed the hydraulic fluid. 5. We have received a lot of compliments on the new South harbor launch ramp. 6. Trying to finish up on the punch list for the South Harbor Launch ramp,just some fine tuning mostly the as-builts and completion paperwork. 7. We are currently working with ADF&G to replace the North East Boat Launch Ramp,funding is currently available through the same grant, waiting on the 2020 State budget to be approved. 8. The harbor is still preparing for the Salmon Derby which takes place from August 10 - 18t",the chamber is still looking for volunteers. 9. The harbor met with the port of Port Angeles to look at and discuss the infrastructure at SMIC. 10. Picture attached of the first mishap on the South Launch Ramp. 3 PACAB Report r a r x - ,A .. .` � � �.w,,.r: �w, �+,. ,...,^�..-"` "- �j✓.+✓ � mow"' 4 Sponsored by: Terry CITY OF SEWARD,ALASKA RESOLUTION 2019-003 A RESOLUTION OF THE SEWARD PORT AND COMMERCE ADVISORY BOARD RECOMMENDING CITY COUNCIL CONTINUE WITH THE SEWARD CHAMBER OF COMMERCE,CONFERENCE AND VISITOR'S BUREAU AS THE DESIGNATED LEAD MARKETING ENTITY FOR THE CITY OF SEWARD WHEREAS,the City of Seward implemented a 4%bed tax on January 1, 1996, and from 1996 through 2000,contributed varied amounts of the bed tax to the Seward Chamber of Commerce, Conference and Visitors Bureau(Chamber)to fund specific activities,such as improvements to the visitors' center, visitor brochure, feasibility study, convention center study, etc; and WHEREAS,beginning in 2001,the Seward City Council agreed to split half of the budgeted bed tax with the Chamber for the express purpose of providing marketing services on behalf of the community; and WHEREAS,beginning in 2002 the Seward City Council began basing the contribution to the Chamber of half of the previous full year's actual bed tax collected; and WHEREAS,since 2005,the City Budget has included an appropriation to the Chamber from the second previous full year's bed tax revenue at 50%; and WHEREAS,in 2013,Council reaffirmed its intent to have the Chamber continue as the lead marketing entity, and to continue its intent to annually fund with half of the actual Bed Tax Revenue from each second prior year; and WHEREAS,the City's Strategic Plan and Comprehensive Plan clearly state the City's desire to expand its business base and generate year-round employment; and WHEREAS, the City obtains significant benefits from marketing efforts, both direct and indirect, as demonstrated by the quality of life for the citizens of Seward and the surrounding areas, as a direct result of a stable, vibrant, year round economy; and WHEREAS, marketing is an important effort that must take place to achieve the goals of attracting new business and industry, supporting and growing existing businesses, and increasing customers coming to Seward; and WHEREAS,the Chamber has the experience,professional contacts, and ability to provide marketing services for the community, and the acumen to focus resources and target specific marketing groups to react to changing markets and demands more efficiently and expertly than PACAB or the City; and 5 CITY OF SEWARD,ALASKA RESOLUTION 2019-003 WHEREAS, the Chamber provides monthly updates on activities to PACAB and works collaboratively on items, such as the SMIC Relaunch; and WHEREAS,PACAB recognizes that a coordinated marketing effort,to include the Chamber at the community-wide level, is critical to a successful economy. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The Port and Commerce Advisory Board (PACAB) recommends City Council continue with the Seward Chamber of Commerce,Conference and Visitors Bureau as the designated lead marketing entity for the City of Seward. Section 2. This resolution shall take effect immediately and be provided to Seward City Council. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14t' day of August, 2019. THE CITY OF SEWARD,ALASKA Christeffal Terry, Chair AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda J. Ballou, MMC City Clerk (City Seal) 6 City of Seward,Alaska Port and Commerce Advisory Board Special Meeting Minutes July 24, 2019 Volume 3,Page x CALL TO ORDER The July 24, 2019 regular meeting of the Port and Commerce Advisory Board was called to order at 12:00 p.m. by Chair Christy Terry. OPENING CEREMONY Harbormaster Norm Regis led the pledge of allegiance to the flag. ROLL CALL There were present: Christy Terry presiding, and Bruce Jaffa Colby Lawrence Laura Schneider Lynda Paquette Erinri comprising a quorum of the board; and Norm Regis, Harbormaster GeNeil Flaherty, Executive Liaison Excused—Hughes, Lemas Absent—None CITIZEN'S COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING—None APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Jaffa/Lawrence) Approval of Agenda and Consent Agenda Terry added an item under Other New Business to discuss having a meeting in August. Motion Passed Unanimous Consent Terry read the following approved consent agenda items: Approval of the December 19, 2018 PACAB Regular Meeting Minutes. Approval of the January 2, 2019 PACAB Regular Meeting Minutes. Approval of the February 6, 2019 PACAB Regular Meeting Minutes. Approval of the March 6, 2019 PACAB Regular Meeting Minutes. City of Seward,Alaska Port and Commerce Advisory Board Special Meeting Minutes July 24, 2019 Volume 3,Page x Approval of the April 3, 2019 PACAB Regular Meeting Minutes. Approval of the May 15, 2019 PACAB Regular Meeting Minutes. SPECIAL ORDERS,PRESENTATIONS AND REPORTS Alaska Railroad Report by Christy Terry Chamber- of Commer-ee Report by Cindy Cleek Harbormaster Report by Norm Regis Administration Report by Brennan Hickok UNFINISHED BUSINESS Update on status of Community Meeting for the Seward Airport Runway Development Terry said she wanted to make sure everyone was aware that there would be a meeting on August 15, 2019 from 5:00 —7:30 p.m. at the K.M. Rae Building. In response to Terry, City Manager Scott Meszaros said anyone could attend the airport site visit on August 1, 2019 with the Alaska Department of Transportation representative. NEW BUSINESS Other New Business Discuss and schedule a Stakeholder Community Meeting to move forward with work on the Seward Climate Action Plan. Terry reminded everyone that PACAB had created an ad hoc committee to address a Climate Action Plan, and the committee's first recommendation was to host a public meeting to introduce the concept and educate the community about what a climate action plan was, and to identify the stakeholders involved in the process. Schneider added that the committee wanted to include as many people or groups as possible on the stakeholders list; she said the University of Fairbanks had conducted a semester- long course on creating a Climate Action Plan for Fairbanks, and she wanted to reach out to ask if they would conduct another course and have Seward be the focus. Motion (Terry/) Schedule a Community Open House to introduce the Seward Climate Action Plan on September 24, 2019 at 6:30 p.m. in the Community Room. 8 City of Seward,Alaska Port and Commerce Advisory Board Special Meeting Minutes July 24, 2019 Volume 3,Page x Motion Passed Unanimous The Board scheduled committee meetings on August 7, 2019 and August 21, 2019 at 12:00 p.m. in council chambers. Discuss having a meeting in August. The Board scheduled a regular PACAB meeting on August 14, 2019 at 12:00 p.m. INFORMATIONAL ITEMS AND REPORTS Congratulations to Deputy Harbormaster Matt Chase for achieving the International Association of Maritime and Port Executives professional certification. The Board also congratulated Assistant City Manager Brennan Hickok for achieving the designation, as well. PACAB Goals and Priorities PACAB 2019 Goals Calendar The Board scheduled a work session on September 4, 2019 and a regular meeting on September 18, 2019. BOARD COMMENTS Lawrence was pleased to be re-appointed to PACAB. Jaffa had a good meeting with the city manager and was happy with the way things were going. He enjoyed driving into Seward every morning and hoped to continue working cooperatively. Paquette appreciated the opportunity to serve on this board, and thought the work being done was important. Schneider congratulated Lawrence and Terry for being re-appointed to PACAB. She asked that an update on the city's interconnect policy be provided at the August meeting, as well as an update on the sewer and water rate and classification study. Terry encouraged residents of Seward and the surrounding community to attend the August 15, 2019 public hearing about the Seward airport. She thanked Jaffa and administration for the work they did on moving the airport project forward. Terry stated she would be out of state from August 1-7, 2019. CITIZEN COMMENTS —None 9 City of Seward,Alaska Port and Commerce Advisory Board Special Meeting Minutes July 24, 2019 Volume 3,Page x BOARD AND ADMINISTRATIVE RESPONSE TO CITIZENS' COMMENTS—None ADJOURNMENT This meeting was adjourned at 1:05 p.m. Brenda J. Ballou, MMC Christeffal Terry City Clerk Chair (City Seal) The city clerk was not present for this meeting; the minutes were drafted from the audio recording. 10 CONCEPT DESIGN AND ECONOMIC EVALUATION OF LOWELL CREEK HYDRO PROJECT TO PROVIDE CLEAN GRID ELECTRICITY FOR CITY OF SEWARD, ALASKA FINAL REPORT COMPLETED JUNE 21, 2019 BY ANDY BAKER, PE "Celebrate the power of nature"rM ... with YourCleanEnergy LLc ■ ■ 308 G Street#215, Anchorage ff 99501 907-350-2084 www.yourcleanenergy.us TABLE OF CONTENTS SCOPE OF CONCEPT DESIGN AND ECONOMIC EVALUATION.......................................................................................................3 LIMITATION IN SCOPE OF THIS CONCEPT DESIGN AND ECONOMIC EVALUATION EFFORT.....................................................3 SUMMARY AND CONCLUSIONS........................................................................................................................................................4 SUMMARY AND CONCLUSIONS(CONT'D)........................................................................................................................................5 INTRODUCTION...................................................................................................................................................................................6 ANTICIPATED BENEFITS TO THE CITY FROM LOWELL CREEK HYDRO PROJECT......................................................................6 COST OF POWER FOR CITY OF SEWARD-2019.............................................................................................................................7 EXISTING HYDRO-ELECTRIC FACILITIES.........................................................................................................................................7 HYDROLOGY.......................................................................................................................................................................................8 PROJECTED FLOWS BASED ON EXISTING DATA...........................................................................................................................8 PROJECTED FLOWS BASED ON EXISTING DATA(CONT'D)..........................................................................................................9 RUN OF RIVER COANDA STYLE INTAKE WITH BURIED INFILTRATION GALLERY.....................................................................10 RUN OF RIVER COANDA STYLE INTAKE WITH BURIED INFILTRATION GALLERY(CONT'D)....................................................11 PENSTOCK MATERIAL SELECTION................................................................................................................................................11 HYDRO-ELECTRIC ENERGY PRODUCTION....................................................................................................................................12 ESTIMATED HYDRO-ELECTRIC ENERGY BASED ON PROJECTED STREAM FLOWS................................................................12 HYDRO-ELECTRIC TURBINE EQUIPMENT SELECTION.................................................................................................................13 TURBINE HOUSE CONCEPT DESIGN..............................................................................................................................................14 TURBINE HOUSE CONCEPT DESIGN(CONT'D)..............................................................................................................................15 TURBINE HOUSE CONCEPT DESIGN(CONT'D)..............................................................................................................................16 EVALUATING HYDRO PROJECT COSTS VS BENEFITS.................................................................................................................17 OPINION OF PROBABLE CAPITAL COSTS—PROPOSED HYDRO-ELECTRIC PROJECT-2019.................................................17 OPINION OF PROBABLE PROJECT COST—PROPOSED HYDRO-ELECTRIC PROJECT-2019..................................................18 ESTIMATION OF PROBABLE ANNUAL COSTS—HYDRO-ELECTRIC FACILITY-2019................................................................19 OPERATIONS.....................................................................................................................................................................................19 WATERRIGHTS.................................................................................................................................................................................20 ■ ■ "Celebrate the power of nature"T'. ...with YourCleanEnergy LLC 12 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 3 OF 20 SCOPE OF CONCEPT DESIGN AND ECONOMIC EVALUATION 1. Development of concept designs to support the installation of a run of river small hydro-electric project with intake at elevation @460 ft along Lowell Creek; and pelton wheel turbine near sea level to generate grid power in Seward,Alaska.The concept design and associated economic evaluation will be based on addressing the following: 2. How to safely divert year-round stream flow into a settling / de-sander tank at elevation 460 ft without bringing in the bed load sediment during flood events. The solution may be in part the installation of infiltration gallery french drain piping that collects flow from under the stream bed, similar to what Alaska SeaLife Center does for water collection at the base of Bear Mountain along Lowell Point Road. A self-cleaning coanda style screen in the stream channel may also be part of the intake solution. A de-sander settling tank could catch most of the fines that make it through, and keep the erosion of stainless steel pelton wheel buckets to a minimum. There will be a need to weld re-build the buckets periodically and spare pelton wheels must be available for installation as part of ongoing maintenance. 3. How to route the buried penstock (range of 36 to 48 inch diameter) from the base of Lowell Creek Canyon to a generator station location at shoreline that makes good sense. The penstock could be routed straight down Jefferson Street and be sited in the Waterfront Park campground area (creates a conflict of land use and continuous noise issue); or the penstock could gradually bend 90 degrees to the south to a generator plant adjacent to Alaska SeaLife Center(may require some tunneling but probably a more suitable location to generate power). 4. How to integrate the small hydro generation into the City of Seward electric grid in a simple and cost effective manner; how to design a hydro generation system that will impart the lowest O&M cost and highest reliability, stability, and safety to the City. Address the benefits and liabilities of operating the hydro when the City is isolated from Chugach Electric Association (CEA)transmission and is operating diesel generators. Address the benefits and liabilities of shutting down the hydro plant when the stream reaches pre-flood and flood stages; and re-starting the hydro plant once the flooding subsides. 5. Based on the concept design above, update the Economic Evaluation first developed by YourCleanEnergy (YCE) in 2007 to determine a Opinion of Probable Capital Cost of the project; opinion of what O&M costs to operate the hydro plant could be; and what the cost of power would be to the City once the hydro plant is built and operating, assuming a conventional mix of grants, bonding, sales revenue and other debt service structures. 6. Produce deliverable Economic Evaluation report in PDF format that includes above items, schematics, graphs, technical information, cost estimates, etc, in a simple easy to read format. 7. Make one public presentation in Seward to communicate the results of the evaluation. LIMITATION IN SCOPE OF THIS CONCEPT DESIGN AND ECONOMIC EVALUATION EFFORT It is understood that the above effort is at a concept level only and if project feasibility is identified, would be followed up by a more detailed engineering evaluation; exploration of the Federal Energy Regulatory Commission (FERC) permit path and costs; addressing the costs and path of navigation with current Army Corps (ACOE)efforts regarding the Lowell Canyon Tunnel;the costs and paths of securing other applicable state and federal permits; the cost implication of integration of the hydro power with CEA who currently supplies power to Seward via long distance transmission; and other relevant factors that may impact a hydro project operating year round on Lowell Creek. ■ ■ "Celebrate the power of nature"TI,, ...with YourCleanEnergy LLC 13 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 4 OF 20 SUMMARY AND CONCLUSIONS A concept design for a small hydro-electric system has been developed for Lowell Creek in Seward, and economic evaluation of that system has been completed. This effort was made because of the rapidly increasing cost of fossil fuel electricity generation available to Seward; and because new technologies and approaches are available that will increase the cost effectiveness of both design and construction of such a system. It will be necessary for the City to begin an effort to gage the stream flow in the upper area of Lowell Canyon (elevation 460 ft) since very minimal historic or recent data is available for this resource in that location. Several years of flow data will be needed to confirm the resource for DNR and FERC permits, and to fine tune the concept design and economic evaluation to reflect the anticipated stream flows. The primary goal of the evaluation presented herein is to identify a small hydro-electric system that will reliably collect stream flow year-round at elevation 460 feet up the Lowell Creek Canyon; transport that flow down the canyon and thru City streets in a buried penstock to a turbine house close to sea level; and produce affordable, reliable and safe electricity from a spinning turbine with a grid-tied synchronous generator. Two alternative locations for the low elevation turbine house were considered. Alternative A. The primary and least complex alternative is to route the penstock from the intake straight down the right of way of Lowell Canyon Road and Jefferson Street, and locate the turbine house at elevation 26 feet in the existing 100 foot wide ROW in the Waterfront Park area.The stream intake would be designed for a maximum of 60 CFS and consist of a surface flow diversion and coanda style surface screens. An infiltration gallery upstream of the diversion with below grade French drain collectors would be included to collect flow during low flow periods in winter. The penstock would be 42" diameter, 7,200 foot length, with the upper portion HDPE material, and the lower portion welded steel. In Lowell Canyon, the penstock would be buried below a benched gravel access road routed along the north side of the canyon, with sheet piling and large rip rap to protect against seasonal flooding. The penstock would pass thru the north end of the existing concrete diversion dam, adjacent to the existing Marathon Creek hydro plant. The penstock would then be routed down the right of way of Lowell Canyon Road and Jefferson Street to a low profile turbine house located adjacent to existing seasonal RV and tent camping areas. Electricity from the turbine generator would be synchronized with the City's 12.5 KV distribution system; and connected to the grid at a power pole across Ballaine Avenue. The tail race of the turbine house would allow flow to drain from the turbine into a buried concrete box culvert tailrace extending to a submerged outlet to be located adjacent to the historic wood flume at beach elevation. Alternative B. A second option for the turbine house location alternative was adjacent to the Alaska SeaLife Center (ASLC) on University of Alaska Fairbanks (UAF) property. This alternative was not pursued to concept design or economic evaluation. It proved to be very complicated and problematic due to: multiple sharp bends in penstock alignment required; crowded utility corridors in narrow streets and alleys; and acquisition of University property and associated easements that would be required for both the penstock and turbine house. It is the preference of the City to keep as much of the proposed hydro-electric system within City land and within City R.O.W. as possible; this alternative does not afford that preference. Alternative A was developed to the level of concept design and economic evaluation.This concept suggests a maximum turbine generator capacity of 1.8 MW (@60 CFS flow); and estimated annual electricity production of 9,202,000 KWH. This would satisfy approximately 15% of the City's current grid electricity needs. The hydro-electric system would cost approximately $17.9 million to build (in 2019 dollars); and produce electricity at about$0.1139 per KWH (if built in 2019). The stream intake and upper portion of the penstock would be constructed with permits on DNR land. Access to the upper portion of the system would be by new gravel road on the north side of the canyon. The lower portion of the penstock, the turbine house, and the tailrace would be constructed on City land. Electricity would flow directly into the City distribution system without transmission line loss. The turbine house would be easily accessed for monitoring and maintenance via the existing Waterfront Park access roads. Waste heat from the turbine house could be used as valuable source energy for the ground source heat pump system planned for the City Library. Extra expense and design consideration will be required to prevent noise from the turbine house and tailrace from disturbing summer campground use. This concept can be further refined and improved once a stream flow gage is installed in the upper canyon and monitored for at least two years. ■ ■ "Celebrate the power of nature"T10 ...with YourCleanEnergy LLC 14 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 5 OF 20 SUMMARY AND CONCLUSIONS (CONT'D) For the purpose of this concept level evaluation, a simplified schematic of Alternative A with the proposed stream intake, penstock, and turbine house with outfall to Resurrection Bay is shown below: ■ PROPOSED ► TURBINE HOUSE AX9 WITH OUTFALL PROPOSED # 42' DIAMETER PROPOSED PENSTOCK Seward RUN-OF-RIVER INTAKE r. D N R LAND CITY LAND e° L LL CREEK DRO PROJECT COMPILED BY ANDY BAKER,PE Cente�Township. ' 1" ,R'„,t a u=u JAN 10,2019 Alternative A: This design concept affords the straightest penstock alignment and greatest elevation drop (from 460 ft elevation at stream diversion to 27 ft elevation at turbine house). Red circles on the map indicate the location of water rights already secured by the City of Seward. ■ ■ "Celebrate the power of nature"T'. ...with YourCleanEnergy LLC 15 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 6 OF 20 INTRODUCTION On September 11, 2018, the City of Seward secured the services of YourCleanEnergy (YCE)to prepare a Concept Design and Economic Evaluation to support the installation of a run of river small hydro-electric project with intake at elevation @460 ft along Lowell Creek; and a pelton wheel turbine generator near sea level to generate grid power in Seward, Alaska. On February 29, 2019 the City of Seward secured the services of YCE for engineering time anticipated with on-going coordinating for compliance with following state/federal agencies: Alaska Department of Natural Resources (DNR); Alaska Department of Fish & Game (ADF&G); Army Corps of Engineers (ACOE); and Federal Energy Resource Commission (FERC). The coordination is required for initial permits, meetings and information exchange to support the development of a small hydro-electric system on Lowell Creek for the City. This coordination time effort is additional to the YCE proposal of September 11, 2018 to perform a concept design and economic evaluation for the same project. BACKGROUND This evaluation reflects that fact Seward already had operational experience with small hydro from Lowell Canyon from 1905 to 1938; and with the nearby Marathon Creek Hydro Project for several years in the mid 1980's. In 2019,the residents of Seward are very interested in slowing the rate of increase in grid electricity cost by supplementing their energy needs with cost effective small hydro. Lowell Creek remains one of the closest small hydro resources to the City of Seward; it has a steep drop in grade within the City limits from elevation 460 feet to sea level; and no fish species are present in the drainage. The waterfall outflow from the tunnel thru Bear Mountain is visible year-round to all who travel the road to Lowell Point. Acknowledgements. YCE would like to thank City Council, City Electric Department, and City Administration in Seward for taking this long awaited step towards developing a local hydro-electric project that taps the powerful and lucrative natural energy resource that is Lowell Creek. The support for this project by customers of the Seward electric system and greater community is also acknowledged. ANTICIPATED BENEFITS TO THE CITY FROM LOWELL CREEK HYDRO PROJECT • The City of Seward develops its own source of affordable, reliable and safe electrical power— to hedge off the increasing cost of CEA power generated primarily from fossil fuel sources — and to distribute the energy without transmission line loss. • Electrical costs in Seward will be reduced and stabilized over the 40 year project life with local hydro-electric power, especially if a majority of the project capital costs are funded by state and federal grants. • The City will have a reduced cost in standby / emergency power generation when local hydro- electricity is available. Every unit of hydro-electric energy produced can offset expensive fuel consumption by the City's back up diesel generators. • Hydro-electric power does not have the liability of pollution, and low impact run-of-river hydro- electric projects like the proposed one herein on Lowell Creek are typically very favorable to the public and state / federal agencies. Additionally, Lowell Creek has no fish species in the canyon drainage. • The City of Seward will be eligible for federal and/or state appropriations and/or grants for clean energy projects —once DNR & FERC permits are applied for, and in an active status. ■ ■ "Celebrate the power of nature"T10 ...with YourCleanEnergy LLC 16 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 7 OF 20 COST OF POWER FOR CITY OF SEWARD -2019 The City of Seward currently has a Certificate of Convenience with the Regulatory Commission of Alaska (RCA) to operate its own electricity generation and distribution system. The primary source of energy for customers is long distance transmission delivered under a wholesale contract from Chugach Electric Association (CEA). CEA generates electricity primarily at their combined cycle natural gas facilities, with about 10% of total generation coming from large hydro-electric plants along the Railbelt. In recent years, the wholesale cost electricity from CEA has increased aggressively due to CEA's rate increases and fuel surcharges. The single long-distance transmission line that serves the Seward area remains vulnerable to interruption by seasonal avalanches. There also remains a section of 69KV transmission line supplying Seward that is undersized and imposes a line loss of up to 9% for every KWH purchased by the City from CEA. According to the City Electric Department, the City currently purchases CEA generation via long distance transmission at average wholesale price of approximately$.108 / KWH. It would be advantageous for the City to generate grid electricity with local hydro, if that local hydro was close in price to CEA's current wholesale price. Because the fuel for hydro-electricty is free and most annual cost components are fixed over the life of the project, the cost of local hydro-electricity will become increasingly attractive over the life of the project. In the event the City electric system becomes isolated from the CEA transmission due to avalanche or other event, the City must rely solely on its own Fort Raymond 15 MW diesel generation plant for standby generation. According to the City Electric Department, the cost of the City's diesel generation is typically in the range of $0.30/KWH. This high cost is due to fuel costs, labor costs, and emission requirements imposed by the federal government thru the Environmental Protection Agency (EPA). The City of Seward has a contract to directly purchase 1% of Bradley Lake hydro-electric generation at a wholesale price of approximately $.045 / KWH. This is a very low and attractive price for clean electricity on the Railbelt, however this allocation from Bradley Lake cannot be increased under the current contract. EXISTING HYDRO-ELECTRIC FACILITIES There are several components of the 1923 Seward Power& Light hydro-electric system that still remain in Lowell Canyon; none of these are still operational or useful. The reinforced concrete intake structure that was used from 1923 thru 1938 remains intact and in fair condition on bench above the stream channel in the upper canyon at approximate elevation of 450 feet. Stream flow was diverted into a shallow channel upstream of the structure; this flow then passed into a serpentine channel tank within the structure that ensured a water level above the three steel penstocks that exited the structure. Gravel, silt and debris were filtered and settled to a great extent within the tank of the structure, and the water flowed down the canyon in a single steel penstock that was suspended above grade level with wooden structural supports. In practice, the operators of that time period encountered challenges with flood stage gravel inundation of the intake structure; low surface flows in winter; and occasional ice formation on the interior walls of the penstock. The penstock terminated downstream in a concrete powerhouse that was located close to the intersection of Jefferson Street and 7th Avenue.This concrete powerhouse was heavily damaged by several large flood events that occurred in the period of 1923 thru 1938; these floods exceeded the capacity of the wooden flume channel that existed at that time down the Jefferson Street corridor. In addition to the concrete intake structure, heavily corroded sections of the old steel penstock can still be found at grade level down slope from the intake structure, and in scattered locations along the stream bed. The vertical support members have long rotted away; many of them were removed by the floods, landslides and snow slides that have occurred since this system was decommissioned in 1938. In credit to the designers of the 1923 intake structure, they identified a location that has remained free of landslides, snow slides, and flood waters for nearly 100 years. Tall trees and thick brush have established in the immediate area around the structure, this vegetation has stabilized the native soils and slopes in the same area. This location at elevation 460 feet remains today the most ideal for collecting the maximum stream flow from Lowell Creek at the highest elevation within the City limits of Seward. ■ ■ "Celebrate the power of nature"TI,, ...with YourCleanEnergy LLC 17 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 8 OF 20 HYDROLOGY The Lowell Creek canyon has a drainage area of approximately 4 square miles that is predominantly steep grade slopes that include significant snow fields into summer months at higher elevations. The steep sloping canyon walls have exposed layers of soft silty graywacke gravel that are easily eroded during flood events, transporting significant volumes of this same silty gravel down the canyon and thru the existing concrete tunnel thru Bear Mountain. The bottom of the stream channel consists of heavily weathered hard metamorphic bedrock shelves and large loose boulders. The variation of natural stream flow in Lowell Creek is significant between cold winter months when surface flow may freeze; and the heavy and extended rainfall and runoff events that typically occur each year in the months of September and October. With the advent of a warming climate and ever changing and unusual weather patterns in recent years, the streams flow in Lowell Creek is anticipated to be different in current years than was last measured by USGS 1965 thru 1968, and 1991 thru 1993, with a gage at the tunnel outlet. USGS re-installed a flow gage on the tunnel outlet in April 2019 and the flow data is available on-line. However, the hydrology that is most significant to the hydro-electric project proposed herein is the stream flow that occurs in the upper canyon at elevation 460 feet where a new intake would be located. There is no available stream flow data for this location from past or current years. A primary conclusion of this evaluation report is that it will be necessary for the City of Seward to establish a stream gaging station on Lowell Creek at elevation 460 feet; and monitor this flow for a continuous period of at least two years. From this new flow data,a more accurate duration curve can be developed to refine the proposed hydro-electric system design, and to secure the necessary water allocation permit from Alaska DNR. PROJECTED FLOWS BASED ON EXISTING DATA The most recent duration curve available that is based on stream gage flows in Lowell Creek can be found in the Feasibility Study completed in 1979 by CH2M-Hill. The duration curve presented in this study was based on flow measured at the tunnel outlet, and not at any higher elevations. No known gaging of stream flow has been done at the upper canyon intake before, during or since the time of the 1979 study. 1979 Study also suggested that approximately 60% of the surface flow observed at elevation 460 feet could be lost to the underground gravel aquifer before it ever reaches the tunnel entrance. This suggestion was based on a single set of flow estimations taken at the same time at elevation 460 feet and the tunnel outlet. Further measurements of surface and sub-surface flows are needed for a continuous period of several years in order to confirm the presence of underground flow in the porous gravel of the creek bed. Such measurements would also confirm whether some of this underground flow can be intercepted year-round with an infiltration gallery to supplement a surface screen intake for hydro-electric power production. For this evaluation, the 1979 duration curve was extrapolated to include additional underground flow based on estimates provided in the same 1979 study. This extrapolated duration curve suggests that it may be possible to collect at elevation 460 feet an average of 40 CFS flow for up to eight months of the year; an average of 10 CFS flow for up to two winter months of the year; and an average of 50 CFS flow for up to 2 months in late summer and early fall. The maximum flow thru the intake system, 7200 foot long penstock, and turbine house would be 60 CFS. ■ "Celebrate the power of nature"T'. ...with YourCleanEnergy LLC 18 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 9 OF 20 PROJECTED FLOWS BASED ON EXISTING DATA(CONT'D) A duration curve was developed and included in the 1979 Lowell Creek Feasibility Study prepared by CH2MHill. This curve was for stream flow measured at the Bear Mountain tunnel outlet. The 1979 Study also suggested that 60% additional flow may be available in the upper canyon at elevation 460 feet due to the fact that a significant portion of the stream flow seeps down through porous alluvial gravel before it reaches the tunnel entrance. For the purposes of this evaluation, a more conservative estimate of 50% additional flow at elevation 460 ft was used, and the duration curve was extrapolated accordingly. The best way to confirm and update this duration curve is to gather and compile several years of current flow data at elevation 460 feet. This flow data is also needed to secure the necessary DNR water rights permit to divert stream flow at this location. 11 60 _. 1 so 1 1 1, ly%nwed Flow 1966.6d 1 T 1 �l 40 Ertlmme For No LL �r Rainfall 1 30 _ - ` r ✓✓EXTRAPOLATED FOR INTAKE LOCATED AT ELEV 460 FT INCLUDES ADDITIONAL 5G°�FLOW 20 - r � I 0 20 40 60 89 100 PERCFNT OF TIME ■ ■ "Celebrate the power of nature"T'. ...with YourCleanEnergy LLC 19 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 10 OF 20 RUN OF RIVER COANDA STYLE INTAKE WITH BURIED INFILTRATION GALLERY The method of collecting stream flow from elevation 460 feet in the upper canyon proposed in this concept design consists of two independent systems. The first is to construct a stream diversion that will direct surface flow over a series of parallel coanda style runoff river intake screens. These screens allow a portion of the surface flow to pass thru the screen area and fall into a collection box that keeps water level above the penstock entrance. Under low to moderate flows, these screens are self-cleaning because that portion of the flow that passes over the screen surface will carry with it gravel and debris that may otherwise come to rest on the screen. However, during very low flows and cold winter conditions, these surface screens are prone to frazil ice formation which often blocks the openings thru which water can pass. During these low flow winter months, it appears more advantageous to collect some portion of the flow needed for a hydro-electric facility from warmer water found flowing below grade. The second method of collecting stream flow that is considered in this concept design is to install a French drain style infiltration gallery that is located upstream of the surface screens, and adjacent to the stream bed. It appears that warmer water that is migrating underground thru the gravel stream bed can be intercepted in a flow range of 10 to 20 CFS during winter months. Collection of this flow could allow the hydro plant to remain operational at part load flows when the surface water and coanda style screens are prone to freezing. A recent aerial photo of the project site, showing proposed intake location, is shown below: Lowell Creek Intake Concept to yo-.hyJFo 2.n 9 ,I Proposed Intake L ocation t { 0 25D AO t,pp[¢c1 ■ ■ "Celebrate the power of nature"T'. ...with YourCleanEnergy LLC 20 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 11 OF 20 RUN OF RIVER COANDA STYLE INTAKE WITH BURIED INFILTRATION GALLERY(CONT'D) LAM Fihr Aid BSmas I _ Rpdne ,-Infiltration Galley Sluice Gates !1 Intake Screens Existing Ciaek Pond Penstock Lowell Creek Intake Concept Canyon Hydro-21812019 A conceptual illustration of the proposed two-part intake system at elevation 460 feet is shown above. The infiltration gallery will collect underground flow at an elevation above that of the surface screens. PENSTOCK MATERIAL SELECTION The proposed hydro-electric system concept design includes a 42-inch diameter penstock of 7,200 foot length. This diameter is proposed to keep friction and hydraulic losses less than 15% of the total available elevation head at the maximum flow of 60 CFS thru the penstock . The following pipe material is considered for the project at this time: High Density Polyethylene (HDPE): the flexibility of this pipe material, along with the option of field fused joints, make this an ideal pipe material for the upper portion of the penstock alignment. To reduce construction time, long sections of the penstock can be pre-assembled in the field, then dragged into the excavation trench. This pipe material is very smooth wall and ensures low friction loss over long distances. Additionally, this pipe material is highly resistant to corrosion and abrasion. However, the pressure class of the pipe is also limited due to the lower tensile strength of HDPE, and accordingly this material can only be used in higher elevation section of the penstock where static pressure and surge pressures will not exceed the safety factor of the pipe material. Welded Steel: the high tensile strength of this material, and competitive cost, make this material an ideal choice for the lower elevation portion of the penstock. The pressure class of the welded steel pipe will increase as the static head increases down the penstock, up to the connection with the pre-fabricated turbine assembly in the turbine house. This pipe requires straight alignment due to very limited flexibility at joints; and may also require a cathodic protection system to prevent long term corrosion of the pipe material. ■ ■ "Celebrate the power of nature"T,,, ...with YourCleanEnergy LLC 21 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 12 OF 20 HYDRO-ELECTRIC ENERGY PRODUCTION • Initial turbine sizing would be one vertical shaft five jet pelton wheel, rated for 60 CFS flow = 1.8 MW capacity. • During low flow periods in winter, the turbine can be run as low as 10% of rated capacity and still produce stable grid power (6 CFS = 0.18 MW= 180 KW). • A below grade infiltration gallery upstream of the surface screen intake may allow continuous minimum winter flows of 10 CFS, enough to keep one turbine running from December through March and keep intake box and penstock from freezing. Hydro Power= Elevation Drop x Flow Thru Turbine specifically: Theoretical Power (kW) = HEAD (feet) x FLOW (cfs) 11.81 Actual power must account for: Energy losses thru screen intake & collection channel Energy losses thru penstock, bends, valves, nozzles Energy losses in turbine, shaft, drives, generator, wiring ESTIMATED HYDRO-ELECTRIC ENERGY BASED ON PROJECTED STREAM FLOWS The quantity of hydro-electric energy (KWH) that could be produced annually from the proposed concept design can be estimated as follows: Total head available above sea level =460 ft elevation minus screen intake loss (5 ft), minus friction loss in (35 ft) minus tailrace drop to sea level (15 ft) = @405 ft net head Hydro mechanical/electrical system efficiency (turbine to grid) = 92% (turbine) x 96% (alternator)x 96% (grid tie) = @84.7% - For 8 months avg flow @ 40cfs = 6,692,300 KWH - For 2 winter months, avg flow @10cfs = 418,300 KWH - For remaining 2 months, avg flow @ 50cfs = 2,091,400 KWH --------------------- ESTIMATED ANNUAL HYDRO-ELECTRIC ENERGY = 9,202,000 KWH ■ ■ "Celebrate the power of nature"TI,, ...with YourCleanEnergy LLC 22 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 13 OF 20 HYDRO-ELECTRIC TURBINE EQUIPMENT SELECTION The net head available at the turbine house for the proposed project is approximately 405 feet. With a design flow of 60 CFS, the ideal turbine selection would be a single five jet vertical pelton wheel turbine system. These turbine systems are currently available for Alaska projects through both Canyon Hydro of Deming, Washington; and Gilkes Hydro (UK)who have offices in the Seattle area. The pelton wheel is a high efficiency impulse turbine that converts kinetic energy from one or more high pressure water jets into rotation of the turbine wheel. The water jet is split by a knife edge divider between two stainless steel buckets that can absorb over 90% of the kinetic energy from the water jet. Pelton wheel turbines with multiple jets are capable of producing stable grid electricity with flow as low as 10% of their rated capacity. A five jet vertical pelton system would allow the Lowell Creek Hydro turbine to stay operational in winter months with flows from the upper canyon as low as 6 CFS. High efficiency Pelton wheel turbine with stainless steel split bucket design -,-•ter-- w : Five jet vertical pelton wheel turbine system installed (photo courtesy of Canyon Hydro) ■ ■ "Celebrate the power of nature"T10 ...with YourCleanEnergy LLC 23 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 14 OF 20 TURBINE HOUSE CONCEPT DESIGN The east end of Jefferson Street continues an existing 100 foot wide right-of-way into the RV and tent camping area that is managed by the City's Parks and Recreation Department. This corridor is clear of utilities or permanent structures with the exception of an existing 24" drain culvert that parallels Jefferson Street, and the remains of the historic wooden/steel flume from the late 1930's still located on the beach. The proposed 42" penstock could be routed straight down Jefferson Street to a new turbine house located between the two camping areas. This location affords the maximum drop in elevation from the upper canyon to sea level; the floor level of the proposed turbine house would be approximately +27 ft. The proximity to campers and recreational visitors would require that the turbine house and tailrace structures be heavily insulated to prevent turbine noise from migrating out from these structures. Park Single M ram ily Residential Institutional Institutional n UrbanResidential s , LILA 1 Park Central: The east end of the Jefferson Street R.O.W. corridor extends in the City's Waterfront Park CZ 40, N89 59 22"W 368.1012, ' �`� 1 � u JEFFERSON S T J Ss.10 a.as ,g S89 5922'E 408.06 j J 7 ov 40' i 40' 232 R1) 232.00' 59.92' 2.00' Mc 1 TF S89 5922'E 353.92' ■ ■ "Celebrate the power of nature"TM ...with YourCleanEnergy LLC 24 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 15 OF 20 TURBINE HOUSE CONCEPT DESIGN (CONT'D) The Jefferson Street R.O.W. corridor is 100 feet wide through the Waterfront Park area to the edge of Resurrection Bay. It appears feasible to locate the turbine house for the hydro-electric project within this R.O.W. without significant modification of the City's existing RV and tent camping activities. Flow leaving the turbine house would be routed straight down to the ocean in a below grade insulated tailrace with submerged outlet below low tide level. This design approach would afford the greatest sound mitigation and provide safe discharge of turbine house flow in an area heavily used by visitors and residents. 100 FT ROW EXTENDED INTO CAMPGROUND POWER HOUSE,FLOOR ELEV+27 FT HISTORIC WOOD FLUME!IRON TURBINE RAILS REMAINS y 42"PFNSTOCK ASSEMBLY 48"OUTFALL 1` EXISTING 24"CMP STORM DRAIN W16"INSULATION AND 36"CMP JACKET COMBINED OUTLET TO OCEAN COMPILED BY ANDY BAKER 1212118 Leger A turbine house located in the Waterfront Park allows for a straight penstock alignment down Jefferson St; maximum elevation drop for energy production; and safe and easy access to the turbine equipment. 32 FT X 40 FT HYDRO TURBINE HOUSE CONCEPT FLOOR PLAN HYDRO CONTROL PAD PANELS MOUNTED V 4160 1fi0VI 12.5 KV TRANS- FIVE.JET �. FORMER VERTICAL — —. PELTON GENERATOR �j I SWITCHGEAR 30"BALL VALVE e f ■ ■ "Celebrate the power of nature"T'. ...with YourCleanEnergy LLC 25 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 16 OF 20 TURBINE HOUSE CONCEPT DESIGN (CONT'D) The proposed turbine house concept design is one that presents an attractive, low profile, and well insulated structure that can integrate into the existing campground area with minimal visual and operational impact. The pad-mounted step up transformer would be enclosed in an attached shed structure on the west side of the turbine house. The primary access door to the turbine house would be on the east (ocean) side, along with site parking for utility staff. The entire turbine house and subsurface concrete tailrace would be heavily insulated to mitigate turbine noise. Below are renderings that show the proposed turbine house design concept when placed into site photos of the City right-of-way of Jefferson Street: �Ln l I`1 Looking east across�Ballaine Avenue. (Site photo and rendering by YourCleanEnergy LLC). 0. r il Looking west from Waterfront bike path. (Site photo and rendering by YourCleanEnergy LLC). ■ ■ "Celebrate the power of nature"T10 ...with YourCleanEnergy LLC 26 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 17 OF 20 EVALUATING HYDRO PROJECT COSTS VS BENEFITS The proposed hydro-electric project concept can be evaluated in two fundamental ways: A. Life Cycle Cost (how many years to fully pay back initial capital investment?) B. Annual Energy Cost ($ per kwh over the anticipated project life) Typically, once a hydro-electric power resource is developed,the projects are run as long as the community can maintain them, often more than 50 years. What will be most important to the City of Seward is to keep the annual energy cost of hydro-electric energy as low as possible to stabilize overall grid power costs. The Lowell Creek Hydro Project, if built, is anticipated to have a 40 year project life. Therefore, in this evaluation, the method of Annual Energy Cost is used to evaluate the proposed concept design. OPINION OF PROBABLE CAPITAL COSTS— PROPOSED HYDRO-ELECTRIC PROJECT- 2019 An itemized breakdown of anticipated project construction components is given below: Construction Phase Component Cost Opinion DNR land lease and land easements $ 40,000 Access road to new intake site at elevation 460 feet $ 616,000 Stream diversion, intake screens and collection channel $ 500,000 Groundwater Infiltration gallery piping and collection $ 300,000 Penstock (7,200ft x 42 inch dia), including selected buried utility relocations $ 5,120,000 Turbine House/power plant building $ 1,800,000 Turbine and generator equipment $ 1,500,000 Electrical control equipment $ 300,000 Miscellaneous power plant equipment $ 84,000 Pad Mounted 4160 V/ 12.5 KV Transformer $ 40,000 Buried conductors and devices $ 60,000 Overhead conductors and devices $ 60,000 Communications equipment $ 80,000 Insulated concrete culvert tailrace and submerged ocean outfall $ 500,000 CONSTRUCTION SUB-TOTAL $11,000,000 ■ ■ "Celebrate the power of nature"T10 ...with YourCleanEnergy LLC 27 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 18 OF 20 OPINION OF PROBABLE PROJECT COST—PROPOSED HYDRO-ELECTRIC PROJECT-2019 The following are components included to estimate the total project cost: CONSTRUCTION COST SUB-TOTAL $11,000,000 CONTINGENCY AND UNLISTED ITEMS (15%) $ 1,650,000 --------------- TOTAL DIRECT COST $12,650,000 INDIRECT COSTS: TEMP FACILITIES, BOND, INSURANCE, OHEAD (17%) $ 2,150,500 --------------- TOTAL CONSTRUCTION COSTS $14,800,500 ENGINEERING, LEGAL, ADMINISTRATION (15%) $ 2,220,100 NET INTEREST DURING CONSTRUCTION (6%) $ 888,000 --------------- TOTAL HYDRO-ELECTRIC PROJECT COST $17,908,600 The project will become financially attractive to the City Of Seward with the assistance of grant funds to offset the initial capital cost. The project has a high public benefit and profile and represents a positive step forward for the City to produce a portion of its power from renewable energy. Therefore, both state and federal grant agencies may show interest in supporting the project when political will for the project is clearly expressed by the community. These grant funds will reduce the amount of general obligation bond that the City will have to issue to supplement the available state and federal grant funds. This evaluation includes an opinion of probable grant funding in order to arrive at an estimated bond issue amount,which in turn will determine the estimated cost of producing hydro-electric power from the project. TOTAL HYDRO-ELECTRIC PROJECT COST $17,908,600 LESS STATE (@$5 MILLION) AND FEDERAL (@$6 MILLION) GRANT FUNDS ($11,000,000) ------------------- TOTAL INVESTMENT BY CITY OF SEWARD $ 6,908,600 CITY OF SEWARD BOND ISSUE (110% OF TOTAL INVESTMENT) $ 7,600,000 ■ ■ "Celebrate the power of nature"T10 ...with YourCleanEnergy LLC 28 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 19 OF 20 ESTIMATION OF PROBABLE ANNUAL COSTS— HYDRO-ELECTRIC FACILITY -2019 CITY OF SEWARD BOND ISSUE (110% OF TOTAL INVESTMENT) $ 7,600,000 INTEREST &AMORTIZATION (40 YEARS @ 4% INTEREST RATE) $ 383,770 INTERIM REPLACEMENTS (1.0% OF TOTAL CONSTRUCTION COSTS) $ 148,000 INSURANCE (0.4% OF TOTAL CONSTRUCTION COSTS) $ 59,200 OPERATION AND MAINTENANCE $ 320,000 ADMINISTRATIVE AND GENERAL (50% OF O&M COSTS) $ 160,000 LESS INTEREST EARNED ON RESERVE FUNDS (@ 6%) ($ 23,000) --------------- TOTAL ANNUAL COSTS $ 1,048,000 TOTAL KWH PRODUCED PER YEAR (FROM PREVIOUS SECTION): 9,202,000 KWH ANNUAL ENERGY COSTS =TOTAL ANNUAL COSTS/KWH PER YEAR: $ 0.1139 /KWH OPERATIONS The proposed hydro-electric system concept design is a run-of-river type system that includes no impoundments for high elevation storage. It would provide no storage for daily peaking operation. The hydro-electric turbine generator cannot operate when penstock flow is lower than 10% of the rated flow capacity of 60 CFS. It is anticipated that the hydro-electric turbine may need to be taken off-line during flood events when the stream flow exceeds 75 CFS as the bed load of silt and gravel in Lowell Creek during these short-term events can be destructive to intake surface screens. It is also anticipated that there may short periods in mid to late winter of some years when the total stream flow may not be greater than the minimum 6 CFS required to keep the hydro-electric turbine operating. This is again why it will be necessary for the City to collect flow data on the stream for several years at the proposed intake location at elevation 460 feet. With a warming climate and changing winter temperatures, rainfall, and snow melt patterns, having current flow data will give more accurate indication of the expected frequency of both flood events, and periods of low flow in winters. Periodic inspection and cleaning of debris from the intake diversion channel,surface screens, and collection box will be part of the operation of the proposed hydro-electric system. The gravel access road in the upper canyon will pass thru several slide areas that will likely require some clearing and re-grading with heavy equipment each year. In the turbine house, the high velocity jet nozzles and pelton wheel will experience accelerated abrasion from fine glacial silt particles suspended in the flow that cannot be screened or settled out. Replacement of the turbine wheel every five to eight years is anticipated, the worn turbine wheel can be factory repaired by weld re-building of the stainless steel buckets. The synchronous generator will require regular inspection and lubrication, similar to most other large three phase grid tied generator units. ■ ■ "Celebrate the power of nature"T10 ...with YourCleanEnergy LLC 29 LOWELL CREEK HYDRO PROJECT EVALUATION CITY OF SEWARD 6/21/19 PAGE 20 OF 20 WATER RIGHTS The proposed concept design for a hydro-electric system includes a stream diversion and intake at elevation 460 feet in Lowell Canyon. This intake location lies on a parcel of land owned by Alaska DNR that lies within the City limits. The primary agency for adjudicating water rights for this intake location is the Water Resources Section of the Alaska DNR. Conversations with YCE and DNR regarding water rights for the City for this hydro-electric project began in February of 2019. On March 14, 2019, with assistance from YCE, the City submitted an "Application for Water Right"to DNR. This application requested an allocation for diverting up to 75 CFS into a penstock at elevation 460 feet, and release of the same flow into Resurrection Bay at the east end of the Jefferson Street corridor. On March 27, 2019, DNR Water Resources Division advised that the City's "Application for Water Right" had been received, and advised that the following additional information is required from the City to fully complete the application for water right for the proposed intake at elevation 460 feet: "Provide a hydrologic study(of Lowell Creek at elevation 460 feet) as the requested water quantity is more than 100,000 gallons per day from a stream." "Provide documentation in the form of a Lease, Easement, Deed, or notarized and recorded Water Use Agreement, which authorizes access to requested water resource as the requested water resources is not located within the boundaries of the property where the water is to be used." "Provide a copy of an executed deed, lease agreement, or other possessory interest document showing ownership of, or authorization to use, the property where the water will be used." A copy of the March 27 2019 letter from DNR Water Resources Section confirming the City's "Application for Water Right" is a included at the end of this evaluation report. Conversations with DNR since the time of the "Application for Water Right" was made have expanded understanding of the scope of hydrologic study that DNR will accept for this stream diversion at elevation 460 feet. A gaging station is to be established to collect stream flow for a minimum period of two years at the proposed 460 feet elevation intake. An additional suggestion has been made by DNR to install and monitor several groundwater wells in the location where an infiltration gallery could be located, also for a period of two years. This data can be used to develop a new duration curve that reflects the current climate conditions for the Lowell Creek drainage area. Stream flow data collected from elevation 460 feet can be compared to that collected by USGS at the Bear Mountain tunnel outlet to determine how much stream flow is typically lost to the alluvial gravel stream bed before entering the tunnel. In conclusion, it will be in the best interest of the City to engage the USGS, or other qualified professional and experienced hydrologist to begin the necessary stream flow and underground water table measurements at elevation 460 feet in the upper canyon of Lowell Creek. A two year hydrologic study is anticipated to cost in the range of$60,000 to $100,000 depending on the equipment that is used, and the frequency of flow and water level measurements. ■ "Celebrate the power of nature"T'. ...with YourCleanEnergy LLC 30 .06 PORT & COMMERCE ADVISORY BOARD COMMUNITY OPEN HOUSE on SEWARD CLIMATE ACTION PLAN NOTICE IS HEREBY GIVEN that there will be a Community Open House sponsored by the Port& Commerce Advisory Board to introduce the concept and identify stakeholders involved in the process: Tuesday, September 24, 2019 Seward Community Library, Community Room 6:30 p.m. All public is invited. The Seward Community Library is located at 239 Sixth Avenue in Seward, Alaska. POSTED: [DATE] City Hall bulletin board U.S. Post Office Harbormaster's Building Seward Community Library Museum 31 Port & Commerce Advisory Board 2019 GOALS CALENDAR DATE SUGGESTED AGENDA ITEMS January 2 • Review and discuss RES 2019-01 PACAB priorities Meeting • Review and discuss RES 2019-02 Seward Rate Study January 22 • Joint work session with P&Z commission Work Session February 6 • Presentation by Justin Sternberg, Seward Blue Pipeline Manager Meeting . Discuss Commercial Fishing Trawler Fleet impact on Seward • Discuss the follow up direction from the January 22 joint work session with P & Z • Discuss the Anchorage Climate Action Plan February 20 • Discuss and set 2019 PACAB priorities and meeting schedule Work Session March 6 • Fishing Trawler Fleet Meeting • Seward Airport March 20 • Alternative Energy work session with City Council— discussing the Andy Baker Work Session Heat Loop April 3 • Vessel Property Tax Meeting • Continue exploration of energy alternatives, sponsor energy fair and/or other continuing community education, develop a Seward Renewable Energy Plan, review Title 15 including process and procedures for alternative energy connection to city infrastructure. • Community Development Quota(CDQ)update April 17 • Housing Work Session . Climate Action Plan May 1 • Vessel Property Tax • Continue exploration of energy alternatives, sponsor energy fair and/or other continuing community education, develop a Seward Renewable Energy Plan, review Title 15 including process and procedures for alternative energy connection to city infrastructure. • Community Development Quota(CDQ)update? • Review utility infrastructure for future growth and development/Rate Study • Housing May 15 • Climate Action Plan Work Session June to end of • HIATUS -MEET AS NEEDED August 32 Port & Commerce Advisory Board 2019 GOALS CALENDAR DATE SUGGESTED AGENDA ITEMS August 14 Meeting The order for meetings in September were switched to allow the Board to freely discuss the events of the summer and prepare action items for the September 18 agenda. September 4 • Legislative Priorities Work Session . Budget September 18 • Housing Meeting October 2 • AML Meeting • Review SMIC development and tariff • Budget • Prioritize City, State and Federal Priorities for Port& Commerce Initiatives October 16 • Review SMIC development and tariff Work Session November 6 • Review utility infrastructure for future growth and development/Rate Study Meeting November 27 • Work Session December 4 • Approve Resolution for PACAB priorities (2020) Meeting December 18 • Work Session 33 11 r °f Sponsored by: PACAB l CITY OF SEWARD,ALASKA PORT AND COMMERCE ADVISORY BOARD RESOLUTION 2019-01 A RESOLUTION OF THE SEWARD PORT AND COMMERCE ADVISORY BOARD (PACAB) RECOMMENDING COUNCIL APPROVAL OF PACAB PRIORITIES FROM FEBRUARY 2019 to FEBRUARY 2020 WHEREAS, PACAB's responsibilities are listed in SCC§ 2,30.325 Powers and Duties; and WHEREAS, City Council and PACAB held a joint work session on March 27, 2018 to review and update the current Priorities List; and WHEREAS,at its December 19,2.018 Regular Meeting the PACAB reviewed and refined the Priorities List. j NOW, THEREFORE,BE IT RESOLVED by the Port and Commerce Advisory Board that: f ' Section 1. The following List of Priorities through February 2020 is hereby approved by the Board and recommended to Council for their approval: 'i PRIORITIES • RevieNv taxes, especially vessel property tax ■ Rcvi ew the 14arbor Tariff as needed • Work to support industries to Seward including the Community Development Quota (CDQ)fleets and related industries,oil &gas related industries,transportation,vessel maintenance and repair facilities and commercial/sport fishing industry • Help lead 5c\%;ird Marine Industrial Center(SMIC) development * Prioritize: City, State and Federal Priorities for Port&Commerce Initiatives(October) • Continue i\ 7loration of energy alternatives, sponsor energy fair and/or other continuinL, corimunity education, develop a Seward Renewable Energy Plan, review Title 15 in,�1A,:=.ng process and procedures for alternative energy connection to city infrastructure • Continue to send a board member to the Alaska Municipal League Annual Conference (AML) • Create a Climate Action Plan (2020) Support the Blue Pipeline Initiative • Review utility infrastructure for future growth and development_ 34 {E '�4 1 Port and Commerce Advisory Board Resolution 2019-01 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 2nd day of January, 2019. THE CITY7.2 ALASKA W I fV Christeffal Terry, Chai. AYES: Hughes, Schneider, Paquette, Lemas, Terry NOES: ABSENT: Jaffa, Lawrence ABSTAIN: VACANT: ATTEST: renda J. all4,/MMC City Clerk (City Seal) •■`*`�`"• ,,,� of �* SE L OF 35 PACAB Goals Calendar 2019 Meeting Schedule Regular Meeting Work session REGULAR MEETING SUGGESTED AGENDA ITEMS January 2 * Review and discuss RES 2019-01 PACAB priorities * Review~and discuss RES 2019-02 Seward. Rate Study lrymrrr"� ' '" 22 * Joint work session with P&Z commission. February 6 * Presentation by Justin ,Sternberg, Seward Blue Pipeline Manager * Discuss Commercial Fishing Trawler fleet impact on Seward Discuss the follow up direction from the January 22 joint work session. with P & * Discuss the Anchorage Climate Action Plan F&iruar"y 20 * Discuss and set 2019 PACAB priorities and meeting schedule March 6 * Fishing Trawler fleet * Seward Airport 1441 rr e h ^�0 * Alternative Energy work session with City Council---discussing the Andy Baker bleat hoop April 3 * Vessel Property Tax * Continue exploration of energy alternatives, sponsor energy fair and/or other continuing community education, develop a Seward Renewable Energy Plan, review Title 15 including process and procedures for alternative energy connection to city infrastructure. * Community Development Quota "CDQ) update .pr^il17 * Housing * Climate Action Plan. May 1. * Vessel. Property Tax * Continue exploration of energy alternatives, sponsor energy fair and/or other continuing community education, develop a Seward Renewable Energy Plan, review Title 15 including process and procedures for alternative energy connection to city infrastructure. * Community Development Quota (C DQ) update` * Review utility infrastructure for future growth and development/Rate Study * Housing 2'r'l:ry 15 * Climate Action Plan S(WE to end of August * I IATLJS- MEEIl' AS NEEDED 36 42 REGULAR.MEETING SUGGESTED AGENDA ITEMS September 4 . Legislative Priorities 0 Budget The meetings for this month have been switched.. September 18 + Il�using October 2 . AMI, • Review SMIC development and tariff • Budget Prioritize City, State and Federal Priorities for Part & C"ornmeree Initiatives OctoIl[)er 16 0 Review SMIC development and tariff November 6 • Review utility infrastructure for future growth and development/Rate Study December • Approve Resolution for PAC'AB priorities (2020) December lS 37 43 August 2019 August 2019 Su Mo Tu We Th Fr 5a 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY Jul 28 29 30 31 Aug 1 2 10:OOam CC-Seward 6:OOpm Welcor Airport Tour(Seward for Obihiro S Air ort) (Seward Libr 4 5 6 7 8 9 7:OOpm P&Z Mtg 12:OOpm PACAB Ad Hoc 12:OOpm CC W' Council Chambers) Committee(Council Council Cha Chambers 11 12 13 14 15 16 S:OOpm CC Work 12:0Opm PACAB Session(Council Meeting(Council Chambers Chambers 7:OOpm CC Mtg Chambers 18 19 20 21 22 23 6:OOpm P&Z WS 12:OOpm PACAB Ad Hoc 12:OOpm CC W' Chambers) (Council Chamber) Council Cha 25 26 27 28 29 30 7:OOpm CC Mtg Chambers Council Calendar 1 38 September 2019 September 2019 Su Mo Tu We Th Fr 5a 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRI DAY Sep 1 2 3 4 5 6 8:OOam LABOR DAY 7:OOpm P&Z Mtg 12:OOpm PACAB WS 12:OOpm CC W. HOLIDAY-Offices Council Chambers Council Chambers Council Cha Closed 8 9 10 11 12 13 7:OOpm CC Mtg (7:30pm Opm HPC WS Mtg Chambers Council Chamber HPC Mtg Council Chambers 15 16 17 18 19 20 6:OOpm P&Z WS 12:OOpm PACAB Reg 12:OOpm CC W. Chambers Mtg(Council Council Cha. Chambers 22 23 24 25 26 27 7:OOpm CC Mtg 6:30pm PACAB Ad Hoc Chambers Committee Meeting Seward Libra 29 30 Oct 1 2 3 4 Council Calendar 2 39 October2019 October 2019 Su Mo Tu We Th Fr 5a 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRI DAY Sep 29 30 Oct 1 2 3 4 7:00am Municipal F-12,0012m PACAB Mt Election(KME Rae Bld 7:00pm P&Z Mtg CCouncil Chambers 6 7 8 9 10 11 12:00pm CC W, Session(Cot, Chambers 13 14 15 16 17 18 7:00pm CC Mtg r(Cha2m &Z WS 12:00pm PACAB Work Chambersbers Session Chambers 20 21 22 23 24 25 12:00pm CC W, Session(Cot, C ha 27 28 29 30 31 Nov 1 7:00pm CC Mtg Chambers Council Calendar 3 40