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Old Harbor PCE - AVEC Bulk Fuel Facility 1992
State of Alaska Walter J. Hickel, Governor Alaska Energy Authority A Public Corporation March 3, 1992 Mr. Charles Walls, General Manager Alaska Village Electric Cooprerative 4831 Eagle Street Anchorage, Alaska 99503 Subject: Notices of Project Completion Grant Agreement No. 2800394 Grant Agreement No. 2800350 Grant Agreement No. 2800397 Grant Agreement No. 2800396 Grant Agreement No. 2800395 Dear Mr. Walls: Enclosed for your files are signed copies of the Notices of Project Completion for the Gambel] Bulk Fuel Repair, bese ar ears pret rmee Improvements, Savoonga Bulk Fuel Repair, Quinhagak Bulk Fuel Repair, and Mekoryuk Bulk Fuel Repair projects. We have enjoyed working with you towards these project accomplishments. Sincerely, © nuk Xl ‘e Y ee": Z Emily K. Nelson Administrative Assistant II Attachment as stated. cc: Brian Gray, Alaska Energy Authority Pat Woodell, Alaska Energy Authority Don Whelan, Alaska Energy Authority Marlys Hagen, Alaska Energy Authority © PO.BoxAM Juneau, Alaska 998141 (907) 465-3575 Q PO. Box 190869 704 East Tudor Road §=Anchorage, Alaska 99519-0869 (907) 561-7877 BAian CNery Alaska Energy Authority A Polic Corooratior February 6, 1991 Mr. Lloyd Hodson General Manager Alaska Village Electric Cooperative 4831 Eagle Street Anchorage, Alaska 99503 Subject: Project Agreement No.2800350 Dear Mr. Hodson: Enclosed for your files is an original signature copy of the subject agreement for the Old Harbor PCE Utilities Efficiency Improvements project. If you have any questions, please contact Gary Smith, Manager of Rural Projects at 261-7311 or at the address marked below. We are-pleased to be able to work with you on this project. avid Denig-Chakrof Director of Rural Programs DOC :ekn Enclosure as stated cc: Senator Fred F. Zharoff, Alaska State Legislature Representative Cliff Davidson, Alaska State Legislature Susan White, Alaska Energy Authority Pat Woodell, Alaska Energy Authority Gary Smith, Alaska Energy Authority Dominic Costanzo, Alaska Energy Authority = PO.Box AM Juneau, Alaska 99814 (907) 465-3575 APO. Box 190869 701 EastTudor Road Anchorage, Alaska 99519-0869 (907) 561-7877 Contract No. 200350 ALASKA VILLAGE ELECTRIC COOPERATIVE PROJECT AGREEMENT PURPOSE AND DESCRIPTION This Agreement entered into this <)~ day of is between the KA ENERGY AUTHORITY aed utho laska Village Electric Cooperative (AVEC). The Agreement provides a Gfant-in-Aid of Construction to AVEC to benefit the community of Old Harbor. The purpose of the Agreement is to provide funds for the purchase, transportation, and installation of four new 10,000 gallon fuel tanks for the Old Harbor power plant. This facility will allow AVEC to purchase fuel directly from the supplier, reducing its current purchase costs. Article A. ALASKA ENERGY AUTHORITY COVENANTS The Energy Authority will: E Subject to appropriation and availability, provide AVEC with a grant- in-aid of construction not to exceed $104,000 for construction of the project. 2. Upon receipt of an invoice requesting payment, provide funds to AVEC to cover the cost of construction in the following manner: @ Upon review and approval of the fuel storage facility’s desi the Energy Authority and the Division of Fire Prevention, Alas partment of Public Safety, provide a 25% advance payment of the base grant amount of $98,200 for purchase of Project materials and initial labor costs. Oy. completion of the project, provide a 50% interim payment don er amount of $98,200. Interim payment will be made upon inspection of the Project by the Energy Authority, and determination that it is constructed in compliance with the plans and specifications submitted by AVEC and app by the Energy Authority. (c) Upon receipt of a copy of the Spill Prevention Counter Measure and Cleanup Plan (SPCC) required by the U.S. Environmental _ Protection Agency; and receipt of a copies of the Letter of Intent and the facility's Operations Manual required by the Coast Guard, and upon completion and demonstration of the Project’s successful operation, provide the remaining 25% of the base it amount. Successful operation is defined as continuous operation of the facility for a period of at least 30 days. (d) Reserve a contingency amount of $5,800 to cover unexpected Project costs. Make contingency funds available to AVEC if the Energy Authority has approved their use before they are spent. AVEC Pres Agreement {arbor ‘ act No. Page 2 of is Article B. ALASKA VILLAGE ELECTRIC COOPERATIVE COVENANTS Alaska Village Electric Cooperative will: il, Expend construction funds only for the purposes provided for under this Agreement. 2 Provide all engineering services necessary for the complete engineering design of the project. 35 Within 30 days after the date of execution of this Agreement, prepare and submit to the Energy Authority, two copies of complete plans, specifications, drawings and other documents required for the construction of the Project. Refrain from ordering materials for the project until notification that the Energy Authority and the State Division of Fire Prevention have reviewed and approved the design. Provide copies of correspondence from the fire marshal showing the Division’s approval of the design. 4. Prepare an SPCC Plan for the Environmental Protection Agency and submit a copy of this Plan to the Energy Authority. D5 Prepare a Letter of Intent and an a. Manual for the Coast Guard, and submit copies of these documents to the Energy Authority. 6. Design the Project to minimize the cost of construction and to be as maintenance-free as economically possible. ie Obtain and maintain all rights-of-way, easements and permits required for construction and operation of the aa in a manner consistent with established utility practices. Where practical, AVEC will seek and obtain permits and rights-of- way on state lands or within Alaska Department of Transportation rights-of-way. as Complete all work associated with the design, permitting and installation prior to September 30, 1991. 8. Bill the Energy Authority for the percentage payments described in Article A, Paragraph 2, but not in excess of actual costs of construction. 9. Refund to the Energy Authority any funds determined to be in excess of actual expenditures. 10. | Account for funds received under this Agreement as contributions-in- aid of construction and, therefore, refrain from including those funds in future rate base calculations. 11. Uponcompletion of the er issue a Notice of Project Completion. A sample of the Notice is in Appendix I. 12. Upon project completion, accept complete responsibility for ownership, operation and maintenance. FN:avecold\ptw AVEC P: Agreement larbor ‘ act No. Page 3 of 6 = 13. Permit the Energy Authority to inspect, in such manner and at all reasonable times, all activities of AVEC related to AVEC’s performance under this Agreement. Such right of examination shall include inspection of AVEC’s offices or plant. 14. If contingency funds are requested, provide cost documentation on project expenditures to date and a description of how contingency funds will be used to complete the Project. Article C. MUTUAL COVENANTS The Energy Authority and AVEC agree to the following: 1. Indemnification. AVEC shall indemnify, save harmless and defend the Energy Authority, its officers, agents, servants, and employees from all liability, including costs and expenses, for all actions or claims resulting from injuries or damages sustained by any person or property arising directly or indirectly as a result of any error, omission or negligent act of the indemnifying party, its officers, agents, servants, or pry» aya or anyone directly or indirectly employed by it in the performance of this Agreement. 2. — Rights to Rescind Grant and Terminate Agreement. AVEC acknowledges the right of the Energy Authority to rescind funds authorized by this Agreement and to terminate this Agreement without payment of liquidated damages to AVEC if it is determined by the Energy Authority to be in the best interest of the State to do so; if funds are no longer available, or for cause. For the purposes of this aragraph, "cause" is defined as the provision of incorrect or misleading information AVEC or AVEC’s failure to provide information that, in the opinion of the nergy Authority, is a material fact that would have influenced Energy or actions. Under these conditions, AVEC waives Tight of recourse and wi reimburse the Energy Authority for all unspent funds C has received according to this Agreement plus all costs, including attorneys’ fees, incurred by the Energy i Authority to perfect its claim or collect those funds. The Energy Authority may also terminate the ment if AVEC fails to complete construction of the line by dune Se ptemb. NG 1991 or if AVEC fails to meet standards or perform services described in Article 3. Availability of Funding. AVEC acknowledges that this Agreement is subject to availability of money from the State of Alaska or other sources to finance performance under this Agreement. If funding is withdrawn, reduced, or limited in any way after the effective date of this Agreement and before the completion of performance, the Energy Authority may terminate the Agreement without incurring damages. The Energy Authority may, in its discretion, renegotiate the terms of this Agreement to comply with any new funding limitations or conditions. 4. Audit Requirements. This Agreement is subject to the audit phe eros of Title 2, Chapter 45 (Grant ee of the Alaska Administrative Code (AAC), commonly referred to as the "Single Audit Regulation." 5. Parties not Being Agents of Each Other It is agreed that the Parties, their officers, agents, servants and employees shall act in an independent capacity and not as agents of the other parties in the performance of this Agreement. FN:avecold\piw AVEC Proj darbor ' Pegs doe eae Agreement act No. 6. Disputes. Either party to this Agreement may bring an action against the other party in the superior court for the State of Alaska to resolve a dispute arising under this Agreement. Any lawsuit involving this Agreement shall be heard by the superior court, Third Judicial District at chorage. All legal costs, including attorneys’ fees not otherwise oa for in this Agreement, shall be allocated pursuant to Alaska Civil Rule 82. 7. Binding Effect. This Agreement and all of its terms, covenants, conditions and appendices represent the entire agreement and shall extend to and be binding upon the respective heirs, executors, administrators, grantees, successors and assigns of the parties to this Agreement. 8. Severability. If any section, paragraph, clause or provision of this ‘eee or any agreement referred to in this Agreement shall be finally adjudicated by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall be unaffected by such adjudication and all the remaining provisions of this Agreement shall remain in full force and effect as if such section, paragraph, clause or provision or any part thereof so adjudicated to be invalid had not been included herein. 9. Declaration of Public Benefit. ie pert acknowledge that the Project is to be constructed for the benefit of the general public and will not deny any person use of Project facilities or use of power produced from Project facilities due to race, religion, color, sex, or national origin. 10. Notices. Any notice required of either party shall be in writing and, unless receipt of such notice is expressly required by the terms of this Agreement, shall be deemed served when deposited in the mail in a sealed envelope, with sufficient first class postage affixed, and addressed to the appropriate Pau! notices shall be sent to each party’s place of business, which in the case of the Energy Authority shall be: Robert E. LeResche, Executive Director Alaska Energy Authority P.O. Box 190869 Anchorage, Alaska 99519-0869 907) 561-7877 and in the case of Alaska Village Electric Cooperative shall be: Mr. Lloyd Hodson, General Manager Alaska Village Electric Cooperative 4831 Eagle Street Anchorage, Alaska 99503 (907) 561-1818 FN:avecold\piw AVEC Proj /Old Harbor eae . Page S ol So ee ato THIS AGREEMENT has been reviewed, agreed to, and executed by the following parties: for the ENERGY AUTHORITY by 2fs { m { (Signature) ate Robert E. LeResche (Name Printed) (Title) { L491 istant Attorn ene STATE OF ALASKA ss. THIRD JUDICIAL DISTRICT The foregoing4,Agreement was acknowledged before me this 5” day by of Rb 1 Esher £. (peeve the QecuTwe Meec toe. ofthe Aluka Energy Authority. / Notary Public, State of Alaska My Commission Expires: (ct , /993 FN:avecold\piw AVEC Project Agreement darbor ‘ act No. Page 6 of — for the ALASKA VILLAGE ELECTRIC COOPERATIVE STATE OF ALASKA ss. THIRD JUDICIAL DISTRICT foregoing Agreement was acknowledged before me this (e day of 1990 by Lloyd Hodson, General Manager of the Village lectric Cooperative. AE; otary tate O My Commission Expires: 3-0-9¢ FN:avecold\piw Appendix I Notice of Project Completion NOTICE OF PROJECT COMPLETION Date: Project Name Contracting Party Contract Agreement Number Agreement Execution Date THE ALASKA VILLAGE ELECTRIC COOPERATIVE certifies that the Project named above is complete in accordance with the terms and conditions referenced in Contract Agreement Number : The ALASKA VILLAGE ELECTRIC COOPERATIVE acknowledges that all expenses incurred under the Agreement have been paid in full, and no further claims for reimbursement can be made. ALASKA VILLAGE ELECTRIC INCORPORATED accepts full responsibility for ownership, operation and maintenance of facilities that were constructed under the terms of this Agreement. ; Date Alaska Village Electric Cooperative The foregoing res » before me this day of General Manager of Alaska Vilage EISCC COOpRTaINE ASSOCIATION oh behat of the STATE OF ALASKA aii ss. THIRD JUDICIAL DISTRICT ALASKA ENERGY AUTHORITY ALASKA ENERGY AUTHORITY acknowledges that the Project referenced above has been com Ee ee re ee ee ee oe in acccordance with terms and conditions of the Project Agreement. Project Manager, Alaska Energy Authority Date STATE OF ALASKA ss. THIRD JUDICIAL DISTRICT The foregoing Agreement was acknowledged before me this day of , 1991 , Project Manager of the Alaska Energy Authority, an Reakan Corporation on behaff of the Corporation. Notary Public, State of Alaska My Commission Expires ° FN:projeom\phy TRIP REPORT - OLD HARBOR AND AKHIOK November 21 & 22, 1991 Date: December 12, 1991 To: Project Files From: Brian Gray da Re: Final Inspection of Old Harbor-AVEC PCE Bulk Fuel Project and Investigation of Existing Power Plant and Bulk Fuel Storage in Akhiok Old Harbor: Thursday, 11/21/91 I departed Anchorage at 7:00 AM and arrived in Old Harbor at 9:30 AM traveling through Kodiak. Weather was clear with a light breeze and temperature around 30F. I was met at the airport by Victor Peterson, the local AVEC plant operator. We went to the water treatment plant first where we met the operator Walter Stanley. Walter was starting the generator to begin pumping. He said that he estimates they are spending approximately $1,000 per month to generate their own electricity. I then walked the route of the potential line extension. It consists of the following: Approximately 700’ of existing single phase (4 poles) along the road that would need to be upgraded to 3 phase. Approximately 900’ across a small valley, moderate brush and slightly swampy with a small creek crossing, grades not exceeding 10%. Note that this section cuts across a switchback in the road and saves approximately 500’. Approximately 1,700’ along the road across level, slightly swampy ground with very light brush. I then went to the AVEC plant to inspect the bulk fuel facility. In general, the facility appears to have been constructed in accordance with the approved design and exhibited good workmanship. The piping welds look rather unorthodox (excessive filler material) but appear to be more than adequate structurally. One fairly significant defect was observed, however. The entire diked area, including the dike, was sloped to the corner with the drain. The low corner of the dike appeared to be approximately 12" lower than the high side. With a nominal dike height of only 18", the effective capacity is reduced to approximately 25% to 30% of the design capacity and will have very little capability to contain a spill, particularly during times of high precipitation. Victor indicated that a after a particularly heavy rainfall one recent evening the dike was filled almost to the top of the low corner. The dike should be raised to the proper level as soon as possible to avoid the potential of a spill. At the time of my sight visit the dike was drained completely and the drain valve was closed. It appears that Victor is very conscientious about operating procedures. All of the tank valves were closed and locked except for the one currently in use. Because of the slope of the dike, various size wood shims of small dimension (2x and 4x) were used to level the tanks. This is a violation of the UFC but probably does not constitute a significant hazard. Another minor deficiency was the lack of secondary containment where the fill pipeline was buried beneath the road. While this does not constitute a code or regulation violation, it does increase the potential for future problems at this facility. The only building within reasonable range for waste heat connection is a cold storage building approximately 300’ down the hill from the power plant. According to Victor, the facility has never been used for its intended purpose and only serves as an unheated storage building at this time. He stated that the fishermen currently buy ice from the tenders but that there would be a good market for ice if a reasonably priced source was available in Old Harbor. The only other bulk fuel facility in town is the bulk and retail outlet belonging to Harold Christiansen. It consists of four 15,000 +/- gallon fuel oil tanks and one 5,000 +/- gallon gasoline storage tank on a wooden platform approximately 10’ high. The tank farm is located right at the edge of the beach and has no diking or protective devices whatsoever. Fuel oil is loaded by gravity into a fuel truck for distribution to smaller "day" tanks throughout the community. Gasoline is dispensed into cars and containers. There is also a 50,000 gallon tank similar to the tank in Karluk up the hill from the main tank farm in an excavated area. The tank has no piping and is reported to not contain any fuel. According to Victor, the Coast Guard was pestering the owner about the hazard of this facility until he contacted his Congressman, at which time the Coast Guard dropped the issue. Given this information and the fact that the owner’s son was wandering around town very drunk and threatening to blow up the airplane for refusing him a ride, I decided to not perform a detailed survey of the facility for my own safety. Akhiok: Thursday, 11/21/91 (continued) I departed Old Harbor at 4:20 PM arriving in Akhiok at 4:40 PM. I was met at the airport by the Mayor, Nick Peterson. We went to the City office and discussed the status of the power plant and bulk fuel facility. Nick stated that they really need a new power plant. The existing Atco trailer is falling apart (the doors recently fell off) and will probably not last much longer. He also indicated that the trailer is so small that it is inconvenient to perform routing maintenance. He would like to have a larger power house. Nick also stated that they really like the new powerstat system. Since its installation they have 100% billings and have even been collecting back bills. He said that it takes the utility out of the "bad guy" role from having to cut power to one of their neighbors and places the responsibility on the customer. The City of Akhiok has a 51,800 gallon capacity fuel oil storage facility located approximately 1-1/2 miles out of town. The fuel is hauled into town in a 300 gallon tank on the back of a pickup truck and is used for power generation and heating public buildings. Most of the public buildings have small "day" tanks. The school has a 5,000 gallon underground storage tank that is shared by the City power plant and the school. The local residents take boats to Alitag to fill drums of gasoline and heating fuel. The City owns a 50,000 gallon tank identical to the tank in Karluk. The tank is currently half buried in town right next to the lagoon. Nick said it has some residual fuel in it and they have to report it as an underground storage tank. He would like to move the tank out to the tank farm and install it in a dike. This would give them enough capacity to meet all the local diesel and heating fuel needs and may enable them to get a lower cost fuel delivery from the same barge that serves Alitaq. I told Nick about the project that we did in Karluk and told him it would be feasible to do a similar bulk fuel project in Akhiok in conjunction with a new power plant. Friday, 11/22/91 Weather was partly cloudy and windy with temperature around 30F. I went to the power plant and surveyed the site, including the condition of the existing plant, the school standby power plant, and the provisions for connection of waste heat to the school. The school standby power plant has a waste heat recovery system connected to the school that primarily serves to heat the power plant from the school boiler. The waste heat system between the City power plant and the school system is reported to have failed several years ago and been disconnected ever since. A new power plant could be constructed in-the general vicinity of the existing one and easily connected into the existing waste heat system or a new waste heat system could be constructed. See the field notes in the Akhiok Bulk Fuel file for a site sketch and detailed notes. I then went with Nick to the bulk fuel facility. The tank farm looked very good with only a few minor deficiencies including small dimension timber foundations, bronze tank drain valves, and no valve on the dike drain. I told Nick that the dike drain was the only serious problem and that it should be corrected as soon as possible. He indicated that if we would send out a valve they would install it (we are currently in the process of sending out a valve.) Nick then provided me with copies of the facility SPCC plan and Operations Manual and a copy of a dock feasibility study which are in the Akhiok Bulk Fuel file. I surveyed the existing 50,000 gallon storage tank. The tank appears to be in fair condition and could probably be refurbished pretty easily. There appears to be adequate space around the tank farm to allow the addition of the 50,000 gallon tank, but a copy of the property survey would need to be obtained to ensure proper siting. Relocation of the tank would require excavation along one side, rolling the tank into the lagoon at high tide, and floating over to the existing tank farm site. The City has a John Deere 450C dozer with backhoe and a rubber tired Case 480 loader with backhoe. The only readily available gravel source is a large pile of broken rock located in town. A dump truck and a small rock crusher (capable of handling rocks up to 12") would need to be brought in for expansion of the bulk fuel facility. Chip Sterbenz arrived on a Penn Air charter from Karluk at 1:40 PM. I wanted to go to Karluk to inspect the bulk fuel facility but the pilot indicated that the weather was getting bad and we would be lucky to make it into Kodiak. I departed Akhiok on the charter at 1:50 PM arriving in Kodiak at 2:50 PM. I departed Kodiak at 5:30 PM arriving in Anchorage at 6:30 PM. OLDHBGR1 State of Alaska DN Walter J. Hicke!. Goverr Alaska Energy Authority November 25, 1991 A Public Corporation Mark Teitzel Assistant General Manager Alaska Village Electric Cooperative, Inc. 4831 Eagle Street Anchorage, AK 99503-7497 Re: Old Harbor PCE Efficiency Improvements Bulk Fuel Project Dear Mr. Teitzel: I inspected the above referenced project on November 21, 1991. It appears that the project meets the requirements of the grant agreement and, in general, the finished product exhibits good workmanship. One fairly significant defect was observed, however. The entire diked area, including the dike, was sloped to the corner with the drain. The low corner of the dike appeared to be approximately 12" lower than the high side. With a nominal dike height of only 18", the effective capacity is reduced to approximately 25% to 30% of the design capacity and will have very little capability to contain a spill, particularly during times of high precipitation. The local power plant operator, Victor Peterson, indicated that a after a particularly heavy rainfall one recent evening the dike was filled almost to the top of the low corner. At the time of my sight visit the dike was drained completely and the drain valve was closed. It appears that Victor is very conscientious about operating procedures. The dike should be raised to the proper level as soon as possible to avoid the potential of a spill. The invoice for the contingency funds is currently being processed. If you have any questions do not hesitate to call me at 561-7877. Sincerely, Mea Brian C. Gray Project Manager cc: Gary Smith, Alaska Energy Authority David Denig-Chakroff, Alaska Energy Authority OLDHBGL4 © PO. BoxAM Juneau, Alaska 99811 (907) 465-3575 A PO. Box 190869 701 EastTudor Road Anchorage, Alaska 99519-0869 (907) 561-7877 State of Alaska Ds WaltargaHievel, Governor Alaska Energy Authority A Public Corporation October 23, 1991 Mark Teitzel Assistant General Manager Alaska Village Electric Cooperative, Inc. 4831 Eagle Street Anchorage, AK 99503-7497 Re: Old Harbor PCE Efficiency Improvements Bulk Fuel Project Dear Mr. Teitzel: We have received your request for us to make the contingency funds available for the above referenced project. We approve the use of the contingency but will withhold payment of the invoice until completion of the final inspection which is tentatively scheduled for mid-November. The 50% interim payment on the base grant amount is currently being processed. If the facility has been successfully operated for a minimum of 30 days in accordance with Article A, Section 2(c) of the agreement, you may invoice for the final 25% of the base grant amount. If you have any questions do not hesitate to call me at 261- 7294. Sincerely, four C Brian C. Gray Project Manager cc: Gary Smith, Alaska Energy Authority OLDHBGL2 O PO.BoxAM Juneau, Alaska 99811 (907) 465-3575 PK PO. Box 190869 701 East Tudor Road ~=Anchorage, Alaska 99519-0869 (907) 561-7877 Alaska Village Electric Cooperative, Inc. SF Eagle Street Anchorage, Alaska 99503 Phone [Main] (907) 561-1818 Phone [Purchasing] (907) 562-2631 °9) JUL 3] Aig-47 FAX (907) 561-2388 DATE:_7-2/-7/ __ _.. MESSAGE NUMBER: A TO: COMPANY NAME As tp Enea TMD TY ATTENTION Sr 17 FROM: DEPARTMENT inde S TRIB | Ey Cot Mb OIE, NAME Met E. (e773 NUMBER OF PAGES TRANSMITTED [including this page] [ Mr. Gary Smith Manager, Rural Projects Alaska Energy Authority P.O. Box 190869 Anchorage, AK 99519-0869 Subject: Old Harbor PCE Efficiency Improvement Project - Contract No. 2800350 Dear Mr. Smith: A total of $89,406.18 has been charged against the Old Harbor PCE Efficiency Improvement Project through June of this year. There is an indication that the total cost of this project may exceed the base grant amount of $98,200. Under Article A, Section 2(d), Alaska Village Electric Cooperative is requesting approval from the Ener Auchority to make the contingency funds of up to $5,800 available should "the total cost exceed the base grant amount. Sincerely, Vad 6 Sebo Mark E. Teitzel Assistant General Manager MET/sm ec: Patricia Stephenson Don Pitts letters .172 T/T 'd BREF T9G YAR ATAMINATA FAHTITA YH Gb:6A TA. Te “nr LAW OFFICES OF KEMPPEL, HUFFMAN AND GINDER A PROFESSIONAL CORPORATION ROGER R. KEMPPEL RICHARD R. HUFFMAN PETER C. GINDER DONALD C. ELLIS ANDREW J. FIERRO GEORGE S. HARRINGTON JR May 7, 1991 BOBBY DEAN SMITH JAY D. DURYCH Dennis Geary Chief, Wage & Hour Administration Department of Labor State of Alaska 3301 Eagle Street P.O. Box 107021 Anchorage, AK 99510-7021 puer 7 FYp ANCHORAGE OFFICE 255 E. FIREWEED LANE, SUITE 200 ANCHORAGE. ALASKA 99503 (907) 277-1604 1-800-478-1605 TELECOPIER (907) 276-2493 CORDOVA OFFICE 520 2ND STREET P.O. BOX 1629 CORDOVA. ALASKA 99574 (907) 424-7410 TELECOPIER (907) 424-7454 RECEIVED MAY 10 1921 ALASKA ENERGY AUTHORITY Subject: Alask i i i Inc.- 2 Improvement Our File No. 91-518.79 Dear Mr. Geary: I write this letter as counsel for Alaska Village Electric Cooperative, Inc. ("AVEC"). As you are aware from other correspondence, AVEC provides electricity as a certificated electric utility to 49 villages located throughout rural Alaska. AVEC is a cooperative organized under the laws of the state of Alaska which is financed by the Rural Electrification Admin- istration. AVEC is regulated by the Alaska Public Utilities Commission. It is a private corporation owned by its members. AVEC is the recipient of a grant-in-aid-of-construction through the Alaska Energy Authority in the approximate amount of $103,949 to be used for purposes of improvement of generation efficiencies in the community of Old Harbor, Alaska. The monies provided are to pay for materials and labor necessary to install underground) fuel storage tanks at Old Harbor. Installation will “pe performed by AVEC employees. After installation, the tanks will be owned, maintained, and operated by AVEC personnel. The tanks will be located on AVEC real estate and will continue to be AVEC property utilized incident to its legal obligations to pro- vide electricity in the community of Old Harbor, Alaska. The tanks installed will consist of four 10,000 gallon bulk fuel storage tanks which will be installed inside a diked area containing an impermeable liner and connecti fuel fill line. The object of installation of the underground storage will Dennis Geary May 7, 1991 Page 2 be to permit the reduction of the purchase cost of fuel by an estimated 34¢ per gallon based upon current retail prices of $1.55 per gallon and current bulk prices of $1.20 per gallon. It is estimated that during the first year after construction, savings in the amount of $21,131 (based upon 1989 fuel consump- tion) will be realized. As in the case of other projects about which this office has corresponded with you, this grant-in-aid- of-construction has been given pursuant to the PCE Fuel Efficiency Program. A requirement of the program is that the cost savings will permit recoupment of the cost of the project within 10 years. Margins of cost savings are quite narrow and, as a result, this project would not be feasible if Title 36.05 were to apply. Our review of the statutory language and the various Attorney General Opinions on this issue lead us to agree with the Alaska Energy Authority that the Act is inapplicable. However, we desire your opinion on the matter before proceeding to expend these funds. Thank you for your attention. If there are any questions, please feel free to contact my office. Sincerely yours, KEMPPEL, HUFFMAN AND GINDER, P.C. C2 ad A qe. el Richard R. Huffman RRH: lka cc: Loyd M. Hodson, General Manager, AVEC Mark E. Teitzel, Assistant General Manager and Manager of Engineering, AVEC Brent L. Petrie, Director of Operations, AEA ll "a State of Alaska DS Walter J. Hickel, Governor Alaska Energy Authority A Public Corporation March 15, 1991 Mark Teitzel Assistant General Manager Alaska Village Electric Cooperative, Inc. 4831 Eagle Street Anchorage, AK 99503-7497 Re: Old Harbor PCE Efficiency Improvements Bulk Fuel Project Dear Mr. Teitzel: We have reviewed your final design drawings and work order and the draft versions of the Spill Prevention Control and Countermeasure Plan, Letter of Intent, and Operations Manual for the above referenced project. We are satisfied with the design as presented, with one minor exception. As discussed in a telephone conversation with David Biegel on March 15, 1991, we think that some means of pressure relief should be provided on the fill line. The best approach would probably be to run a 3/4" diameter relief line from the fill line to the vent line on tank #3. Please keep us informed of your construction schedule as the job progresses. Our intent is perform a progress inspection and a final inspection. Ideally, we would like to schedule the final inspection during the initial fuel delivery if possible. We are pleased with your efforts to date and look forward to successful completion of this project. If you have any questions do not hesitate to call me at 261-7294. Sincerely, ea Brian C. Gray Rural Systems ~ngineer OLDHBGL2 © PO.BoxAM Juneau, Alaska 99811 (907) 465-3575 DA. PO. Box 190869 701 East Tudor Road Anchorage, Alaska 99519-0869 (907) 561-7877 388 Alaska Village Electric Cooperative, Inc. 4831 Eagle Street Anchorage, Alaska 99503-7497 (907) 561-1818 RECE; (907) 561-2388 FAX VED MAY 8 199) March 8, 1991 ALASKA ENERGY Al rUORITY Mr. David Denig-Chakroff Director of Rural Programs Alaska Energy Authority P.O. Box 190869 Anchorage, AK 99519-0869 Subject: Old Harbor PCE Efficiency Improvement Project Dear Mr. Denig-Chakroff: Please find attached two copies of complete plans, specifications, drawings and other documents required for the construction of the above referenced project including copies of the Certificate of Plan Review and Approval from the Office of the State Fire Marshall. Also enclosed are two draft copies of the Spill Prevention Control and Countermeasure Plan for the Environmental Protection Agency and two draft copies of both the Letter of Intent and also the Operations Manual for the U.S. Coast Guard. We are pleased to have received approval from the Alaska Ener Authority to proceed with this project and are hopeful that this program may be continued in order to accomplish other efficiency improvements. Sincerely, Mok ¢ Abd Mark E. Teitzel Assistant General Manager MET/sm cc: Senator Fred F. Zharoff, Alaska State Legislature menrcecmnraernnewmeeRebhesentative clitt Dayidson,-Alaska State Legislatures mez letters.52 Alaska Village Electric Cooperative, Inc. 4831 Eagle Street Anchorage, Alaska 99503-7497 ARE (907) 561-4818 CEIWED (907) 561-2388 FAX Bul Sy February 14, 1991 AUR RAR se AS AFORE Mr. David Denig-Chakroff Director of Rural Programs Alaska Energy Authority P.O. Box 190869 Anchorage, AK 99519-0869 Subject: Old Harbor PCE Efficiency Improvement Project Dear Mr. Denig-Chakroff: We are pleased to have received the fully executed agreement concerning the above referenced project. We are currently in the process of addressing the comments of your staff on the final design and hope to be shipping the additional tanks to Old Harbor soon. We are looking forward to having a sufficient fuel storage capacity at Old Harbor to avoid any supply interruption and to take advantage of quantity purchase discounts. Initially, the additional fuel storage capacity will reduce the cost of fuel in Old Harbor and will help to minimize the impact of increasing fuel prices in the future. We are hopeful that this Efficiency Improvement Program may be continued and that the installation of a more efficient generator at Togiak and New Stuyahok may be considered. Sincerely, Mar ¢ LEK Mark E. Teitzel Assistant General Manager MET/sm cc: Senator Fred F. Zharoff, Alaska State Legislature Representative Cliff Davidson, Alaska State Legilsature letters. 32 —_— NORTHWEST LININGS & GEOTEXTILE PRODUCTS 20222 87th AVE. SOUTH KENT, WA 98031 206-872-0223 August 20, 1985 Alaska Village Electric 4831 Eagle Street Anchorage, AK 99503-7497 ATTENTION: GEORGE ROONEY SUBJECT : OIL CONTAINMENT MEMBRANES Gentlemen: For your application we have supplied OR-CPER. This material is specifically formulated for oil containment and comes with a twenty year warranty (sample enclosed). In earlier correspondence a reference to Hypalon has been made. Hypalon is an excellent product, but does not have the resistance to Hydrocarbons that the OR-CPER does and is, therefore, not generally used for those type applications. Hypalon is used primarily for potable water containment and containment of liquids with moderate levels of acids and other wastes. With high petroleum contents, Hypalon tends to delaminate due to its high liquid absorbtion fate. Both products have the same physical properties and perform otherwise the same. RN/dm Enclosure OrL-RESISTANT CPER IMPERMEABLE MEMBRANES CPER is a very good membrane lining material with an Oil Resistant formula which lends itself to Oil Spill Containment applications. OR-CPER has found use in Waste Containment Ponds, Oil Dike and Pit Liners and areas where hydrocarbons are prevalent. OR-CPER also has been used in Tailings Ponds and Landfill Liners. OR-CPER is available in 30 Mil Non- Reinforced and 36 Mil Reinforced sheets. MANUFACTURING SPECIFICATIONS PROPERTY: SPECIFICATIONS TEST METHOD 10x10—1000 denier Polyester 1. Fabric count 2. Lammate thickness, inch .036 + 10% or ASTM D751 045 + 10% 3. Tensile strength, Ibs. 200 ASTM D751 grab 4. Tear strength, Ibs. 80 ASTM D751 tongue tear 5. Ply adhesion, 16 ASTM D413 Ibs./2-inch wide spec. 6. Hydrostatic resistance, 300 ASTM D751 Ibs./S.E. 7. Low-temperature bend Pass ASTM D2136 8. Dimensional stability, 1 ASTM D1204 % change (max.) @ 212°F. 1 hr. 9. Ozone resistance No effect ASTM D1149 10. Seam strength, factory 170 ASTM D751 & field, Ibs. 11. Oil resistance ASTM 35% ASTM D417 # oil, max. weight gain 3 151 days 12. CPE, as percent of 50% @158°F total polymer, min. Mfr.’s Certification NON-REINFORCED 30 MILL SPECIFICATIONS AVAILABLE UPIN REQUEST aI Oil Resistant L Chlorinated Polyethelene Impermeable Membranes for Water, Chemical and Oil Containment Northwest Linings & Geotextile Products, Inc. 20017 - 89th Ave. So., Kent, WA 98031 , (206) 872-0244 STAFF INDUSTRIES, INC. 78 Dryden Road Upper Montclair, N. J. Standard Specifications for Staff Industrial Grade #3510 OIL-RESISTANT REINFORCED CHLORINATED POLYETHYLENE Plastic Linings and Covers CPE-R-O 07043 The work covered by these specifications consists of installing a reinforced oil-i esist- ant chlorinated polyethylene (CPE-R) plastic lining in the structures where shown on All work shall be done in strict accordance with the drawings and these specifications and be subject to the terms and conditions A. General. The materials supplied under these specifications shall be first quality products designed and manufactured specifically for the purposes of this work, and which have been satisfactorily demonstrated by prior use to be suitable and dura- ble for such purposes. The contractor shall, at the time of bidding, supply the Engi- neer with the name of the lining fabricator and, later, a certified test report from the sheeting producer that the sheeting meets these specifications for durable lining and B. Description of Oil-resistant Reinforced Chlorinated Polyethylene (CPE-R) Materials i i inf =R plastic lini hall consist of widths of calendered CPE-R sheeting fabricated into large sections by STAFF INDUSTRIES, INC., Upper Mont- 07043, by means of CPE-solution-bonded factory seams into a single piece or into the minimum number of large pieces to fit the facility. The CPE-R sheet shall be made by encapsulating reinforcing fabric between two sheets of 15 mil or heavier-gauge CPE-R shéeting, made from a composition of which Dow Chemical CPE is at least 50% by A. The reinforced CPE-R shall be made by calender-laminating CPE sheeting on both sides of polyester fabric to give the following properties for Staff #3510 Industrial SPECIFICATIONS 01 - GENERAL REQUIREMENTS the drawings or directed by the Engineer. of the contract. 02 - MATERIALS cover material. Oil-resistant reinforced CPE-R plastic lining s claire N "J weight of the finished sheeting. 03 - MINIMUM MANUFACTURING. SPECIFICATIONS Grade Oil-resistant ne Min. Manufacturing PROPERTY 1. Fabric count 2. 3. 4. 9. 10. ll. 12. Laminate thickness, inch Tensile strength, lbs. (min.) grab method Tear strength, lbs. (min.) tongue tear method . Ply adhesion, lbs./2-inch wide specimen, (min.) . Hydrostatic resistance, lbs./ sq. inch, (min.) . Low-temperature bend . Dimensional stability, % change (max.) Ozone-resistance 10x10-1000 denier polyester -036 + 10% or -045 + 10% 200 80 —— 16 300 _Pass__ 1 No effect Seam strength, factory & field, lbs. 170 Oil resistance ASTM #3 oil, max. weight gain CPE, as percent of total polymer, min. ane anas 35% 50% TEST METHOD ASTM D751 ASTM D751 ASTM D751 ASTM D413 Machine method Type A 180 deg. peel ASTM D751 ASTM sh or) mandrel ASTM D1404 @212°F, lhr. ASTM D1149, Q@PpPm. @ 30% strain @104°F, 72 hrs. ASTM D751 ASTM D417 151 days @ 158°F Mfr.'s certification ae anor 04 05 - FACTORY FABRICATION The reinforcing fabric shall be laminated between the two chlorinated polyethylene (CPE) sheetings so that the edges of the scrim are encapsulated 1/2" + 1/4" so that no exposed scrim shows on the edge. h-width of rei--“urced CPE so made shall be CPE-solution- bonded to the next width by STAFF INDUSTRIES, INC., Upper Montclair, N. J., utilizing lap joints a minimum of 1 1/2" scrim-to-scrim and with, the encapsulated edges bonded on both top and bottom edges. Seams shall be lengthwise so as to minimize the joining of cut ends of large panels. Seam strength shall be at least 170 pounds by ASTM D751. The lin- ing shall be accordion-folded into heavy cardboard boxes or wooden boxes, for shipping purposes. INSTALLATION OF CPE LINING A. General. The CPE lining shall be placed over the prepared surfaces to be lined in such a manner as to assure minimum handling. It shall be sealed to all concrete structures and other openings through the lining in accordance with details shown on drawings submitted by the contractor and approved by the Engineer. The lining shall be closely fitted and sealed around inlets, outlets, and other projections through the lining. Any portion of lining damaged during installation by any cause shall be removed or re- paired by using an additional piece of lining, as specified hereinafter. 1. Field Joints. Lap joints shall be used to seal factory-fabricated linings of rein- forced CPE together in the field. All field joints between sections of CPE lining shall be made on a supporting smooth surface such as a board and, unless the weath- er is warm and the sun shining brightly, heat guns shall be used to make the sealing temperature at least 100°F. Field seams shall be rolled during heating to effect a satisfactory bond of full strength. The lap joints shall be formed by lapping the edges of pieces a minimum of 1 1/2" scrim-to-scrim. The contact surfaces of the pieces shall be wiped clean to remove all dirt, dust, moisture, or other foreign ma- terials. Sufficient STAFF CPE-to-CPE bonding solution shall be applied to both con- tact surfaces in the joint area and the two surfaces pressed together and rolled. Any wrinkles shall be smoothed out and any cut edges of the reinforced CPE shall be sealed with a flood coat of CPE solution to prevent wicking. 2. Joints to Structures. All curing compounds and coatings shall be completely removed from the joint area. Joining of CPE to concrete shall be made with STAFF CPE-to-concrete adhesive and mechanical fasteners. Unless otherwise shown on the drawings, the minimum width of concrete shelf provided for the cement joint shall be 4 inches. For all shapes like pipe boots that require extensibility, unrein- forced CPE shall be used. 3. Repairs to CPE. Any necessary repairs to the CPE shall be patched with the lining material itself and STAFF CPE-to-CPE bonding solution. The bonding solution shall be applied to the contact surfaces of both the patch and lining to be repaired and the two surfaces pressed together immediately, heated, and rolled. Any wrinkles shall be smoothed out. 4. Quality of Workmanship. All joints, on completion of the work, shall be tightly bonded. Any lining surface showing injury due to scuffing, penetration by for- eign objects, or distress from rough subgrade shall, as directed by the Engineer, be replaced or covered and sealed with an additional layer of CPE of the proper size. B. Technical Assistance. A representative of the company furnishing the plastic lining shall be present during the entire installation procedure and shall provide technical assistance for the installation of the lining. 050381-CPE-R-O STATE OF ALASKA / —-— Richard L. Burt DEPARTMENT OF PUBLIC SAFETY aac | DIVISION OF FIRE PREVENTION REPLY TO: PO. BOX N 5700 EAST TUDOR ROAD 1979 PEGER ROAD JUNEAU, ALASKA 99811-1200 ANCHORAGE, ALASKA 99507-1225 FAIRBANKS, ALASKA 99709 PHONE: (907) 465-4331 PHONE: (907) 269-5604 ; PHONE: (907) 456-4002 January 28, 1991 Ce vie Mr. David R. Biegel r Alaska Village Electric Co-op, Inc. AN 30 199. 4831 Eagle Street Anchorage, Alaska 99503 AVEr SUBJECT: Diesel Tanks TOWN: Old Harbor PLAN REVIEW: 91A-197 FUEL TANK INSTALLATION 1988 UNIFORM FIRE CODE Dear Mr. Biegel: Plans for the subject Tank Installation have been reviewed by this office for conformity with the State Fire Safety Regulations and are hereby approved as submitted. Enclosed is a certificate of approval that must be posted on the premises until completion of the above installation. Approval of submitted plans is not approval of omissions or oversights by this office or noncompliance with any appli- cable regulations of the Municipal Government. It must be understood that the inclusion of and compliance with State Fire Safety Regulations does not preclude the necessity of compliance with the requirements of local codes and ordinances. If we can be of further assistance in this matter, please feel free to contact us at the above address. Sincerely, Ch ¢. Chester E. Wedger Deputy Fire Marshal I Enclosure TL I I State of Alaska Office of the State Fire Marshal Plan Review This is to certify that the plans for-this buildin mare reviewed by the State Fire Marshal on Januery 23, for conformance with AS 18.70.010 — 100; 13 AAC’50.027. This certificate shall be posted in-a pies on the ‘Premises named yvAlaska iWallage posted until constructionyis campleted:s SS eapric Gra SRall téinain NOTICE: Any changes or modifications to theapproved lans must be resubmitted for review by the State Fire.Marshal 91A-197 SS Plan Review # Authority: AS 18.70.080 Form: 12-741 (3/86) seine u 1 TT : RECEIPT __DATE RECEIVED FROM Ex— ADDBESS AE TY TT TOPS © FORM 45808 ® ACCOUNT AMT. PAID ae BALANCE DUE State of Alaska N\ Walter J. Hicke Alaska Energy Authority A Public Corporation February 6, 1991 David Biegel Senior Engineer Alaska Village Electric Cooperative, Inc. 4831 Eagle Street Anchorage, AK 99503-7497 Re: Old Harbor PCE Efficiency Improvements Bulk Fuel Project Dear Mr. Biegel: We have reviewed your design for the above referenced project. Essentially it looks like a good design but we do have the following comments that need to be addressed prior to beginning construction or ordering materials: LETTER (MATERIALS DESCRIPTION) 1. Per my telephone conversation of December 3, 1990 with Mark Teitzel, threaded pipe joints are not acceptable. We have encountered numerous leaks in threaded fuel piping on similar installations. Welded joints will be required. If a limited amount of threaded piping is required for connection to the existing day tank, use 300# or greater fittings. DRAWING # 1-11-0000 2. Terminating the dike into the hillside will cause runoff water to fill the containment area. Either the dike should continue around on the side of the tank farm adjacent to the hill or a drainage ditch should be provided above the dike to divert runoff water. If necessary to reduce excavation requirements, the tank farm could probably be moved closer to the power plant. UFC 79.703 requires a check valve at the fill connection. The check valve should be installed downstream of the gate valve. PO. Box AM Juneau, Alaska 99811 (907) 465-3575 XK. PO. Box 190869 701 East Tudor Road Anchorage, Alaska 99519-0869 (907) 561-7877 Governor Federal Regulations require a means of secondary containment at the point of connection to the fill line. Common practice is to provide a bucket. Ensure that the point of connection is high enough to allow provision for some form of secondary containment. The current fuel supplier for this area uses a camlock fitting for connecting to the fill line. While not required, it would be convenient if you could provide a female camlock fitting at the fill point connection. An OPW 644-D complete with plug is desired. The local vendor is Alaska Rubber and Supply. DRAWING # 1-11-1021 6. 10. 11. UFC 79.508 requires all valves connecting directly to the tank to be steel. Ideally they should be API listed for petroleum service. If approved by the Fire Marshall, the 3" ductile iron valves will be acceptable. The drain valves will also need to be steel or ductile iron. Use flanged connections instead of unions at the flex connections (see comment #1). Ensure that the solenoid valve used is listed for exterior installations. 1" to 2" of fill over the liner may not provide adequate protection. We would prefer to see at least 3" to 4" of cover. Also, you may want to consider installation of a geotextile fabric under the liner to provide additional protection. CPER is not the best liner material for use in a diesel fuel containment application. Ensure that the material used is compatible with long-term exposure to diesel fuel. Provide a boot for sealing the drain pipe penetration of the dike liner in accordance with the liner manufacturer’s recommendations. 12. Since Old Harbor is subject to high precipitation it would be a good idea to provide additional freeboard in the dike to allow for the accumulation of ice and snow which cannot be readily drained. While not required, we would prefer to see the dike be 24" high minimum instead of 18". In accordance with the terms of the project agreement you can now invoice for the advance payment of 25% of the base grant amount of $98,200. The invoice should reference the project name, contract number, and ledger code as follows: Old Harbor-AVEC PCE Efficiency Improvements Contract #2800350, Ledger Code 81827503 25% Advance Payment $24,550 Please forward a copy the approval from the Fire Marshall. We appreciate your efforts to date and look forward to successful completion of this project. If you have any questions do not hesitate to call me at 261-7294. Sincerely, Brian C. Gray Rural Systems Engineer BCG OLDHBGLI Alaska Village Electric Cooperative, Inc. 4831 Eagle Street , -7497 cise RECEIVED (907) 561-2388 FAX JAN 25 1991 January 16, 1991 aed alaska Energy Authority Jack Oxford, Deputy Fire Marshall State of Alaska Division of Fire Prevention 5700 E. Tudor Rd. Anchorage, Alaska 99507-1225 Dear Mr. Oxford: Alaska Village Electric Cooperative Inc. (AVEC), an electric utility serving 49 bush communities throughout Alaska, strives to increase our operating efficiency to allow rural electricity generation to remain feasible in spite of increasing fuel costs. AVEC is currently working with the Alaska Energy Authority (AEA) to reduce the cost of fuel in the city of Old Harbor on Kodiak Island by installing bulk storage facilities so that diesel fuel can be purchased in quantity at wholesale prices. One of the terms of the project agreement is that the State Division of Fire Prevention review and approve the tank farm design. Two prints showing the tank farm design are enclosed: 1. 1-11-0000--0ld Harbor Plant Site, 2. 1-11-1021--0ld Harbor Bulk Fuel Tank Installation. I believe our installation complies with article 79 of the 1985 Uniform Fire Code for stationary tank storage, aboveground, outside of buildings for class II, stable, combustible liquids. Four above-ground, 10,000 gallon, horizontal, cylindrical diesel fuel storage tanks, approximately 8 feet diameter by 28 feet long, shall be ordered built according to UL 142 Standard, which will include required pressure tests, and normal and emergency venting capabilities according to section 79.510. The tanks will be mounted on an 8"-high skid with solid-web steel saddles. Print 1-11-0000 shows that the tanks shall be 30 feet away from the nearest property line that can be built upon and approximately 30 feet away from our generator building, the nearest building on the same property. The slope on the Northwest side of the tank farm has a grade of about 3 run to 1 rise for about 15 feet, then steepens to between 2:1 and 1.5:1 continuing to the top of a mountain. Each tank shall have the word "DIESEL" painted on with characters at least 3" high, with 1/2" stroke width. The minimum distance between the 8-foot diameter tanks shall be 5 feet. Each tank shall be securely supported on five 12" x 12" x 12-foot long timbers laid horizontally on the ground with one timber under each saddle according to the detail on print 1-11-1021. There are several purposes for elevating the tanks: 1. increases the useable volume of the diked area, 2. increases the load area on the ‘liner to reduce the likelihood of puncture, , 3. elevates the piping above the top of the dike, so high-point air traps are not created, or so dike » penetration is not required, 4. elevates the piping so it is above the snow level for more of the year so possible leaks may be detected, 5. elevates the piping so the valves are above the snow level for more of the year requiring less snow removal, 6. hydraulic jacks used occasionally to level the tanks have more room to operate. 7. in case of short-term daytank pump failure, more fuel would be useable by gravity feed. The measurement at the base of the inside of the dike shall be 72 feet by 26 feet. The top of the impermeable part of the dike shall be 18 inches above the top of the liner cover material. Subtracting the volume taken by the 12 x 12 timbers, the dike volume is 19,200 gallons. The dike material shall be reasonably available soil which most impedes the migration of fluids, covered with an oil-resistant, fabric-reinforced, 36 mil., chlorinated polyethylene liner, which will be protected and held in place by earth-filled sand bags. The dike detail is shown on print 1-11-1021. The dike detail shall also be used on the natural slope next to the tanks to an elevation of at least 18". The tanks shall be placed 5 feet away from the interior dike walls. Internal subdivisions of the dike are not required since no tank exceeds 100,000 gallons and the aggregate capacity does not exceed 150,000 gallons. A drain pipe, placed at the lowest point in the dike shall be closed off by a locked valve outside the dike which is opened only when water is drained. No combustible materials shall be placed in the diked area, and the pipe supports shall be constructed of steel. oo”? An isolation valve for each tank, placed next to the tank outlet, shall be closed and locked except when filling the daytank. The piping shall be schedule 40 steel with threaded joints, and 150 psi class fittings. The flexible connection to each tank is a stainless steel flex bellows protected by a double stainless steel wire braid with a pressure rating of 150 psi. A valve isolating the 1-1/2" daytank fill line is kept closed and locked except when filling the daytank. The pipe supports shall be constructed of 1/4"-thick steel plate. The tank farm piping shall be tested air tight to 100 psi, with an expected maximum operating pressure of 50 psi at the fuel-barge-end of the 3" fill line. Your approval of AVEC’s diesel fuel tank farm design for Old Harbor will allow AVEC to complete the project agreement with the Alaska Energy Authority and aliow an economical installation which helps electric energy to continue to be available to rural Alaskans. Please contact me if you have questions, need more information, or expect the approval process to take more than two weeks. The telephone number is 561-1818. Thank you. Sincerely, Qrih Brag David R. Biegel, Senior Engineer Alaska Village Electric Co-op cc: Mark Teitzel, Engineering Manager Brian Gray, AEA W.O. 11G020, file Alaska Village Electric Cooperative, Inc. BE aval 4831 Eagle Street [2 Yifg vi la | Anchorage, Alaska 99503-7497 , , ZS DEC 2 *t 424 ‘ (907) 561-1818 (907) 561-2388 FAX ALASKA ENERGY TY: December 20, 1990 AUTHORIT Mr. David Denig-Chakroff Director, Rural Programs P.O. Box 190869 Anchorage, AK 99519-0869 Subject: Project Agreement for Old Harbor Bulk Fuel Storage Tanks Dear Mr. Chakroff: Please find attached two executed copies of the subject agreement. (Please note the correction of the minor typographic error in Article C, Section 2). We are very pleased to be working with the Alaska Energy Authority on this most vital program for reducing the cost of generating electric energy in rural areas that are dependent upon petroleum based fuel supplies. We are especially anxious to proceed with the Old Harbor project in light of the current uncertainties facing the world petroleum supply and, with timely plan approval, hope to have the additional fuel storage capacity in place before any unexpected supply interruption might occur. It is hoped that this program will be continued into fiscal year 1992 especially if fuel prices continue at their current level. The use of higher fuel prices in the evaluation formula should certainly provide the necessary justification for additional projects including the currently unapproved project for Lower Kalskag. Sincerely, V/s | Mark E. Teitzel Assistant General Manager MET/sm letters.222 Pivk Ro. AU State of Alaska DN Walter J. Hickel, Governor Alaska Energy Authority A Public Corporation December 12, 1990 Mr. re Hodson, General Manager Alaska Village Electric Cooperative 4831 Eagle Street Anchorage, Alaska 99503 Dear Mr. Hodson: Two copies of the agreement for the Old Harbor bulk fuel storage tank project are enclosed for your review and signature. Please contact me if your would like to discuss any of the contract provisions before you sign and return these copies to the Energy Authority. Upon approval of the agreement, please contact Brian Gray at 261-7294 to discuss project schedule. Note that Article B, Paragraph 7 of the contract provides for a completion date of September 30, 1991. I would like to point out that the initial 25% payment to AVEC for this project is contingent upon state review and approval of the facility’s design. This provision is discussed in Article A, Paragraph 2(a) and Article B, Paragraph 3. Please withhold invoicing the Energy Authority for the initial 25% payment until the design has been approved. We look forward to working with you on this project. ial eg David Denig-Chakroff Director of Rural Programs Enclosures as stated FN:oldavec\plw © PO.BoxAM Juneau, Alaska 99811 (907) 465-3575 © PO. Box 190869 704 East Tudor Road = Anchorage, Alaska 99519-0869 (907) 561-7877 Alaska Village Electric Cooperative, Inc. 4831 Eagle Street Anchorage, Alaska 99503 Phone [ ~ er tbor) & -1818 Phone [Purchasin 07) 562-2631 FAX (907)" at. 2388 paTE:_1Z2-3-10 MESSAGE NUMBER: 5@/-SSP4 TO: "COMPANY NAME meen &. Autevds ATTENTION “Be, An Crny : FROM: DEPARTMENT Lo cn. srea To) | Ents Sete NAME Maen Ee. Terza. __.- NUMBER OF PAGES TRANSMITTED [including this page) ¢. #53 749, WT'd 88E2 19S 2406 JINLIZIS JOMTTIA WH TG:ET B6. €@ D3 Berd ({- 30 <1 | Alaska Village Electric Cooperative, Inc. 4831 Eagle Street Anchorage, Alaska 99503 Phone [Ma a} areata: Phone [Purchasing] (907) 562-2631 FAX (907) 561-2388 DATE: ESL MESSAGE NUMBER: Sle!- @os4 TO: “COMPANY NAME Ainsen En stil Autitoecn/ ATTENTION Cet! Sun et : FRON: DEPARTMENT Minis TEATLON) | & NAME Mate & . arTZa. NUMBER OF PAGES TRANSMITTED [including this page] Za MESSAGE/INSTRUCTIONS; Revised Ewo \/ing Arcowances Fou. INT SSENCIES NFLATION “a STMAST AW Iwebenses fo “TeletT Karen ter. Oro % 2/T'd B8E2Z T9S 2486 DIMLIITA JOVTIIA WH 9T:2T OS, BE AON 0 I 79@ 17:16 AK Vv NOV 32 LLAGE ELECTRIC 987 S61 2388 ALASKA VILLAGE ECRRIC co-nP 27 WORK ORDER # VILL Rarcuv fro} DATE WW - 13 FO APPROVED 344 Prine Nover (Engine) & Generator Lreight | cost | Engine cones —s 341.2 Sane Urea Cee jon Isote Ic piping & access, ee Ce ne, anes 1 oor plat I Lat Gane pact 7 Condit wring Pats Heat exchanger 341.6 fantry & access. Totalizn Expansion tank & nccess, 341.16 | Lighting fixtures, cutlets, etc, a in Piping, fittings, valves, etc. 34l.t4 Preaker panels Transforners 5» braces 341.21 | vent. controls, Power tronsforrer ifreeze tesint, fon & notor Statin service transforner Circulating pumps & access. 341.2% | Radiator stand Hiscel taneous ettry ht corti a ae ee ae 36 Wiscellaneous Pouer Plant . . sce eous Power 1) t atte? cobtar © conbeot ae ae ae 250 | $00 a Exhaust Systen le 346.9 Fire Protection) systes Muffler Fence Contrat panet Piping & access. Road Sensors, horns, fixtures ih to and hangers: Site prep. Extinguishing agent, High terperature insulation Hiscet taneous containers, piping Generator — |H6.12 | Vaste of! blending equipment Hiscel loneous 342 Fuel Tanks & Pip! 26.15 | Tools & naintenance equipnent = a2 | teak & weight | cost Hiscel laneous el eee S8o | 2187 Battery charger Itke Eagine/generator control panel rt “foal ue Cora seco BAA} Heters ie ae 342.45 gh FILE piping nein 7 68 _ akers, CIs, k~bank, 1 —— Costrol cables Baytank F1 -_ = ho MATERIAL = 53166 _ Renote radintor control pasel ae ae FREIGHT BtGbt ths, «Sons _18 932 a —— : a Li _ 82 _mis73 _ms__Ge00 | Switchgesr er _22_m 1 41S =__{S00 _ Disconsect switches eabenun tem ps?5 p=__2800 _ Porer cables aad connecttoss TOTAL STAFF LABOR =_7300 @ x 8 Vireny OVERHEAD: 218% STAFF LABOR « SUF Coble tray & supports ATSC. EQUIPMENT = Hiscel [aeous TOTAL =_ 73 $Z5Z COM MO — Eo — i 7 j : i | > oO Ay} | [oy ve FA) ST Alaska Village Electric Cooperative, Inc. 4831 Eagle Street Anchorage, Alaska 89503 Phone [Main] (907) 561-1818 Phone [Purchasing] (907) 562-2631 FAX (907) 561-2388 DATE: tt}30} 4s MESSAGE NUMBER:_5/[- 358+ TO: - ‘company Name__Acasea Sn eegy Aurtoery _ ATTENTION Sant Omurh FROM: DEPARTMENT Minn STOATEMS | EAD Gig areZi iG NAME Pee = Term NUMBER OF PAGES TRANSMITTED [including this page) ___— MESSAGE/INSTRUCTIONS: . EwWO oe HreBoe. TASK 2/T'd 88E2 T9S 2486 DJIALIFTS JOWTTIA YH PE:2T B6. BE AON | { ‘ i | i ' 5 ; i i | | ‘ | { i | boi | = if} foes Py Es ALASKA VILLAGE ELECTRIC CIHIP 27___ESTINA - T WERK ORDER # COIL ENGINEER DATE N83 20 APPROVED 2 Bistribution Station Ground grid Structure/aodules/vans Swi tchgear—to~transformer Vibeotion Isolators ne Piping & access. connections Pod meter ial it hecters 962,16 | Treasclosures Bianoad floor plate Ventilation ducts, dangers 3.18 | Pods H3.A4] Gauge parel Conduit, wiring ates i . rs H3.C.4} Heat exchanger faaeryS ences. Totalizing neter 343.C.6] Expansion tink & access. Lighting fixtures, outlets, etc. Station service aeter Piping, fittings, valves, etc. Breaker patels braces Vent, controls, - énti freeze tsiat, fan & motor Station service transforrer 343.C.7] Circulating pumps & access. Radiator stond Wisce Uaneous 343.C.9| Radtator Safety equipnent 8BE2 T9S 206 DIYNLISTS SOMTTIIA Me PE:2t B6. BE AON 343.0 Battery bonk starting systen Hisc. plant Inprevenent iattey cables & condut Sighs, ra s, tags 343.63 Se ee pecs a = see pe foes ‘a . tenpereture insulation containers, piping 344 ame 3%,12 | Voste ott blending equipnent Kiscei laneous 34.15 | Tools & mintenance equipment Hisce taneous Accessory Electric Battery changer Ine/geasrator control pene! ami section a Enclosure Bs Breakers, CTs, ect Fuet Fill piping & fittings Bulk-tonk pi iping & fittings } 4330] 4707 Control cables Toytank Fil Line HATERIAL = oPs Renote radiator contre! pret ieee astt Wane FREIGHT 20000 ths,a_3S_syt=__7200 ee ee naw 5 VILLAGE LABIR : 89 _wea7ZS_ p=_Govo | Filters ° Hiscellaneous “Fine. Atrrnue slat Figg =} _JO_wesiSO m= exatucenine_f mest?S m= lOSo_ ‘tchgear Disconnect switches TOTAL STAFF LAHIR =_SSSO_ Power cobles ond connections i 2100 $x § Vremy Comments EWO Coxe to bosmee OVERHEAD! 2181 STAFF LABBR ant Z2lOoFlee y & sports Tans t HISC. EQUIPMENT ————— Hiscel \aneous —- a : _ = TOTAL « 77075" . wee. Ree Leo Davina Fe Gus PHS bb (907) 561-1818 (907) 561-2388 FAX DEC 0 6 1999 4831 Eagle Street fg G E j Anchorage, Alaska 99503-7497 November 30, 1990 AUTHORITY, Mr. Gary Smith,Manager Rural Projects Alaska Energy Authority P.o. Box 190869 Anchorage, AK 99519-0869 Subject: Proposed PCE Generation Efficiency Improvement Project for Old Harbor Dear Mr. Smith: Please find attached a copy of the revised cost estimate breakdown for purchasing and installing four 10,000 gallon bulk fuel storage tanks inside a diked area with an impermeable liner and a connecting fuel fill line at Old Harbor. This revised estimate should hopefully cover any unexpected contingencies which might arise based upon our understanding of the final requirements of the project agreement. Your comments regarding the requirements of the project agreement and the initial review of the original estimate were appreciated along with the Energy Authority’s rapid response to this project request. We are very anxious to increase the bulk fuel storage capacity at Old Harbor in order to avoid future supply interruptions and substantial increases in pricing. Sincerely, Dk 6 IAM Mark E. Teitzel Manager, Engineering MET/sm ALAVNA VALEAUG CELLU iKau GUTUP bv LVI WIN INLINE INLINE EIN Ney gene sy ote WORK ORDER #——___ Vitiase Ox Hagbot ENGINEER. DATE: (N= 8 B= FO APPROVED 344 Prime Mover (Engine) & Generator Structures & Improvements {362 Distribution Station Equipment weight | cost welght | cost 343,A.2] Engine 341.1 Foundat!on 362.8 Ground grid r+ 343,A.3] Foundation 341.2 Structure/modules/vans 362.9 Swi tchgear-to-tronsformer cpa eet at oe & access, connections ‘ad materia init heaters Diamond floor plate Ventilation ducts, dampers ie anes Conduit, wiring 362.18 Pads 343.A.4| Gauge panel 362.22 Meters 343.C.4| Heat exchanger 341.6 Gantry & access. ' Total izing peter 343.C.6] Expansion tonk & access. 341,10 | Lighting fixtures, outlets, etc Station service meter Piping, fittings, valves, etc. 341.14 Breaker panels 362.35 Transformers Supports, braces 341.21 | Vent. controls, ~ Power transformer Antifreeze t-stat, fan & motor Station service transformer 343.C.7| Circulating pumps & access. 341.24 | Radiator stand Miscellaneous 343.C.9) Radiator 341.25 | Safety equipment 343.D | Battery bank starting systen 341.26 | Misc. plant Improvement 346 Miscellaneous Power Plant Equipment Battery cables & condul Signs, labels, tags weight | cost 343.E.3] Exhaust System Docks 346.9 Fire protection system 4 Muff ler Fence Control panel Piping & access. Road Sensors, horns, fixtures Supports and hangers Site prep. Extinguishing agent, Hig} ein ng Insulation Miscellaneous containers, piping 344 Generator eee 346.12 Waste oll blending equipment rey Miscellaneous 342 Fuel Tanks & Piping 346.15 | Tools & maintenance equipment — ee o.oo | weight | cost | Miscellaneous 345 Accessory Electric Equipment 342.A.2 a farn prep. S20 | 2187 345.3 | Battery charger j Meso _o2st ge Ha oe Pads THEFT C276_ 345.6 Engine/generator control panel Fuel tanks @ 100504 8100 |33500 Control section : Enclosure 342.A.4] Meters = ' = z 342,A.5 ra - piping ; a gs 2 7 348 reakers, CTs, ec ulk-tank piping & fittings o | 8bS = - Control cables Daytank fill line \ . MATERIAL = 53/66 _ | 345,18 _— radiator control panel ea tne’ Fuel ot FREIGHT 31G64 hse 50 seyt=_/ S832 cessor les : oO Ts = CoO Misc. panels 342.A.6 | Pumps Leagw VAWE Witte | IFO ‘To VILLAGE LABOR go _wmes7ZS_=__@c0o STAFF_- FIELD 32 wpeslSO )=__4S0o | 345.23 Switchgear 342,A.7| Filters LABOR i 175 2.8 00 Disconnect switches Miscellaneous “Trl Arnica | 1G0 | 52K ENGINEERING J mbes t75 /p=__£600 | 345.27 Power cables and connections aaa ; TOTAL STAFF LABOR =_Z300 _ 8 x 8 Wireway Comments EWO Coge To lesmet Pouce [0d00] OVERHEAD: 218% STAFF LABOR =_ (57/4 _ + Cable tray & supports Garco. Ho2r.zoame anes Lwm dee ComTisGENcy =_ 5737 Misce | laneous ue. Ra Les, Daye Gee Le 7 | L TOTAL =L0374¢7 __ “Cont inCenciest T Mavauan *aest Peet */247 Lat 2020 Mztrean ©489 Tanas. 45737 / }— State of Alaska Steve Cowper. Governor Alaska Energy Authority A Public Corporation November 26, 1990 Mark E. Teitzel Assistant General Manager Alaska Village Electric Cooperative, Inc. 4831 Eagle Street Anchorage, Alaska 99503-7497 Subject: Proposed PCE Generation Efficiency Improvement Project for Old Harbor Dear Mr. Teitzel: Your letter of November 20, 1990, concerning a possible upgrade of the Old Harbor Fuel Storage Facilities, has been received.. A cursory review indicates that this project may be fundable as a PCE Efficiency Improvement project and has been assigned to George Matz, Project Analyst, for further analysis. If you have any questions, please call either Gary Smith, Manager of Rural or myself at 561-7877. “\ David Denig-Chakroff y Director of Rural Programs GDS:ekn cc: Gary D. Smith, Alaska Energy Authority George Matz, Alaska Energy Authority O PO.BoxAM Juneau, Alaska 99814 (907) 465-3575 PO. Box 190869 704 East Tudor Road Anchorage, Alaska 99519-0869 (907) 561-7877 Alaska Village Electric Cooperative, Inc. 4831 Eagle Street Anchorage, Alaska 99503-7497 (907) 561-1848 (907) 561-2388 FAX November 20, 1990 Mr. Gary Smith, Manager Rural Projects Alaska Energy Authority P.O. Box 190869 Anchorage, AK 99519-0869 Subject: Proposed PCE Generation Efficiency Improvement Project for Old Harbor Dear Mr. Smith: Alaska Village Electric Cooperative has continued to search for potential projects that would provide a substantial savings to the PCE program. We believe to have determined a project that, upon completion, will result in a rapid payback of the required grant funds. The project involves the installation of bulk fuel _ storage facilities in Old Harbor. Of the 45 power plants that AVEC operates, Old Harbor is the only one where dependence has been placed upon a local retail fuel supplier for the daily supply of fuel. Although the investment in a bulk fuel storage facility has been avoided to-date, the resultant cost of fuel has tended to appreciate higher than necessary. Previously, with the PCE program and the lack of available funding, the installation of a bulk fuel storage facility could neither be justified nor accomplished. However, the new PCE Generation Efficiency Improvement program is an excellent vehicle for completing this project. A summary of the project is as follows: Location: The village of Old Harbor on Kodiak Island Scope: Install four 10,000 gallon bulk fuel storage tanks inside a diked area with an impermeable liner and a connecting fuel fill line. Purpose: To reduce the purchased cost of fuel by $0.3465 per gallon (current retail price $1.55 per gallon, current bulk price $1.2035 per gallon). Result: First year savings of $21131 based upon 1989 fuel consumption of 60984 gallons and a fuel cost reduction of $.3465 per gallon. Cost: $77075 Please let me know what additional information is required before your office can complete an analysis of this project and provide approval. We are very anxious to proceed on this project and will be awaiting word as to when it might be approved. Sincerely, Wer t+ ILA Mark E. Teitzel Assistant General Manager MET/sm MEMORANDUM Date: 12/04/90 To: Gary Smith From: Brian Gray Re: Old Harbor PCE Improvements Bulk Fuel Project I have prepared a budget for the above referenced project of $120,800. The budget is based on AVEC’s estimated design and construction cost of $104,000, which includes approximately 6% contingency. Even with the added contingency I still have some reservations as to the estimated cost (see attached telecon). Therefore I have added an additional 10% contingency to the design/construction cost in preparation of the budget. Possibly after completion of a few similar projects we can refine our cost estimating, but for now I think we need to be conservative. The estimated annual PCE savings is $14,680. Ata construction cost of $104,000 the revised benefit/cost ration is 1.4 and the revised PCE payback period is 7.1 years. Even with AEA costs and contingencies the project is still economically viable. OLDHBGM1 Date: TELEPHONE CONFERENCE LOG 12/03/90 Between: Brian Gray and Mark Tietzel Re: Old Harbor PCE Improvements Bulk Fuel Project Gary Smith called Mark on 11/30/90 to discuss our concern that the cost estimate of $77,000 is too low. Mark submitted a revised estimate of $98,212 at the end of the day on 11/30/90. I called him on 12/3/90 to discuss our concerns. The following points were covered: ae 7. Due to our current involvement in bulk fuel assessment and repair work we will expect compliance with all applicable codes and regulations. This will include as a minimum review of the design by the Fire Marshall and the AEA, preparation of an SPCC Plan for the EPA, and preparation of a Letter of Intent and an Operations Manual for the Coast Guard. Adequate engineering time should be allowed for handling the review and regulatory process. Materials should not be ordered until the design has been reviewed by the Fire Marshall and the AEA. Pipelines should be welded steel. A 3" diameter fill line will be required. Isolation valves will need to be steel. These items need to be considered in the cost estimate. I mentioned that we would not consider sand bags an acceptable dike. Mark explained that their intent was to build an earthen dike with material excavated from the hillside behind their site (on their property) and to use sand bags as a covering over the dike to prevent erosion. I told him I considered that to be a good idea. I questioned the fact that no costs for equipment rental were included. He said that the cost was included in their village labor and that if they couldn’t find equipment they would use shovels and wheelbarrows. I suggested he add an appropriate contingency to the estimate, maybe 10%. I explained that we would set up the grant so that the contingency could only be used after submitting documentation of cost overruns. I concluded by saying that after receipt of their final estimate work order I would begin to set up the grant. 1203BGT1 Alaska Energy Authority To: Dave Denig-Chakroff From: George Matz Re: AVEC - Old Harbor Date: November 28, 1990 SITUATION - The Alaska Village Electric Cooperative (AVEC) has requested PCE Efficiency Improvements funding to construct a bulk fuel storage facility that will serve their power plant in Old Harbor. This facility will allow AVEC to purchase fuel directly from the supplier, rather than through the local retail dealer, at considerable savings. AVEC proposes to install four 10,000 gallon fuel tanks inside a diked area with an impermeable liner and a connecting fuel fill line. The fill line will allow delivery by barge. ANALYSIS - According to AVEC, their current retail fuel price at Old Harbor is $1.55 per gallon. The current bulk fuel price is $1.2035 per gallon which is $0.3465 less per gallon than the retail price. Although the price differential has increased with recent price increases, the differential previous to the price increases was about $0.30 a gallon. AVEC states that their fuel consumption for Old Harbor in 1989 was 60,984 gallons. According to the AEA 's PCE statistics, the fuel consumption for FY 89 was 55,019 gallons and for FY 90 it was 53,511 gallons. To be conservative, the FY 90 data was used in the analysis. AVEC states that the project cost should be $77,075. There will be no significant operation or maintenance costs associated with the project. The analysis determined (see Table 1) that the Old Harbor fuel storage facility, as proposed, would have a benefit/cost of 2.1. The PCE payback is 5.3 years and PCE savings over a period of 10 years should amount to $146,803. TABLE 1 AVEC - OLD HARBOR FUEL STORAGE FACILITY ECONOMIC ANALYSIS PCE ANALYSIS PROJECT COSTS PROJECT COSTS Construction Costs 77,075 Total Costs 77,075 Annual Costs 0 Total Costs 77,075 FY 90 KWH USAGE KWH's Sold 691,606 FUEL SAVINGS PCE KWH's 547,568 Retail Fuel Price ($) 1.5500 PCE Ratio 0.79 Bulk Fuel Price ($) 1.2035 Price Difference ($) 0.3465 PCE BENEFITS Fuel Used (Gallons) 53,511 Annual Benefits ($) 18,542 Annual Savings 18,542 PCE Savings ($) 14,680 BENEFITS PCE PAYBACK (Yrs) 5.3 Annually 18,542 10 Years 185,416 10 YR PCE SAVINGS ($) 146,803 NPV 10 Yrs @ 3% 158,163 Benefit/Cost 2.1 RECOMMENDATION - The fuel ae facility proposed by AVEC for Old Harbor meets both the economy} EB payback test. Therefore, it is recommended that thé =— By; AX " Badeat Praject cc ede eal: AEA Gary Smith, AEA Mark Teitzel, AVEC Lrian ALASKA ENERGY AUTHORITY RURAL PROGRAMS DIRECTORATE PROJECT BUDGET COMMUNITY _@Lp WArese— 7s AVEQ. = TE PROJECTNAME 2Uep HA Bo Ce PREPARER _6. CoAT DATE PREPARED_|Z]/ 04/50 PROJECT Source of Funding PLE TOTAL 71000 Personal Services $_2, 900 $ $s $_ 2,300 72000 TravelandPerDiem _\,700 __ L. Joo 73000 Other Services oni ~ 77730 Grants * 104, Ae 104,009 +% 73140 Grant Handling Fees ra — 73872 Project Contingency 0400 10,400 74000 Material (AEA only) = = 73460 Freight (AEA only) am aon SUBTOTAL $ 1a $s $ $113,965) 70200 Dayan Non-personal 500 le 70100 *Aliocated Personal = 14g _ |, 400 TOTAL slZO,2e> $_ =S_imt = S120. 280 Matrix Code Project AR 22290 Project CC OB1493 10 Project LC 91827503 Project Code BUDGET APPROVALS Manager of Rural Projects YQDECS oO ce: Dir. Acct. & Admin. Mgr. Rural Projects Director of Rural Programs dll Preparer Director of Agency Operations BMP I2f4!Fo Return original to Dir. (If budget greater than $50, ),000) Date of Rural Programs Ey cote D, ecko * If project includes grant funds, see addendum attached. * SEE OTE ON APPES DUM PM - Deon bea ALASKA ENERGY AUTHORITY RURAL PROGRAMS DIRECTORATE PROJECT BUDGET Grant Funding Addendum COMMUNITY _Ov.p HAespofe ~ AVEC PROJECTNAME_OLO HA@Boe PCE PREPARER _®. GEAY DATEPREPARED__\Z/o4/95 77730 Grants Labor $ Travel/Per Diem Material Freight — Contract 28,200 Contingency, 5,@0OoO Tora, «= §_1O4,000 _ Notes COVmTINGENCY Wit NoT BE PrevipED To CLAM TEE WITHOLT Pick AEA APrPRoVAL OF FrReiectT costs. ALASKA ENERGY AUTHC PROJECT BUDGET WORKSHEET Project Information Community: . CLO NAg eee - -NVEC eee ree PeojectName: _OLO RHAZSoe HE ____ stitial BN U8 69) coe ent tte ABA Proj Manager “EAD pay Date prepared: _|1 r? Zo/9O _ __—_— Date of Basis Ban G teeter Prepared by: pal - St 42s Gna Date of Completion Fan! ___..______-_._______ ._ LABOR (field work) | Task WISPELT OW INSPECT ond ae ee 4 | Number | Rate | Sub- | ot Trips total | 4 a = 1 — | T ois i. T te Ls Total oe a3 - ee cali LABOR (office work) | Name | Task j Airs 7 Rate | Snes | ,Bpns | BH. | Deion) Feview | 40 i2096! 1234 | | AT | Pee seee AGteeneT | 4 3739! \50__ | dom %. DEIN PEVIEW/ASISTANE 24.931 _|40 | [pieweep L. | sey ca eee _2@0_. } ! | }.--—-— ——_—___—-_—— —. fs 5 — <= —}— — =} ee | eee t RPoaut-+ ALASKA ENERGY AUTHOn: f PROJECT BUDGET WORKSHEET Project Information MATERIAL |r 2 ~ Description _ CONTRACT _ [ = Description | Notes [ Amount Community equipment rental aoe a _ 4 | FiAnwInG & ENGINEERING Avex ZOCO | | CompetTeoeqivn) _ ____| AVEc. 22,200 | [CONTINGENCY | | — 2 as — | . - L —- 4 po es 1 | | | \ bo —t- -_ =: sossinainee Total SUMMARY Total lo4 200! Personal Services(A+D) _ZB\O Travel & Perdiem (C) LG6O Material (KE) a Fretghr (hy = Contract (+07) 104, 000 Total $/0%, 470 KRUaUI STATEMENT OF WORK Project Name: OLD WARGOK PCE Project L/C: Project Description: NOTA! — E O, aX An N NE w a = Ny) Vv $Tim * NNVA oT sAyv > CE mrs. SAVINGS - SEE Fee A XS \: Number of consumers served, voltage(s), phase(s),kw, etc. Skills/Tasks Required: staff/notes ConfleTED len FLETED PAT - SiMwA2 To ANGOon) 5 s Construction Contractor Equipment Installer Construction Assistance lineman diesel welder/pipefitier electrician mobilization Sales Agreement Material Delivery (AEA) Inventory Recording Project Management Accounting Support Required: Funding Source(s): Federal (HUD) Federal (oth) State app State RSA PCE RE RTA Loan Kddeteetelelere lc KKK KS Trustee Reimbursable AKSAS Funding Restrictions: AEA Direct Chargable AEA Indirect Chargable Davis-Bacon REKK kicks | Feeletstee ete ' * APPLICABLE To AVEC OnTeAcIoeS IF USED sow Page 2 Project Name:_ OLD HA #@oR FE Present Status: vE \S CuZPE Te UF Zom cm (ZETA SALE Prone WwW L ASE From Paeecoe - se ALYSIS oF 1 2/99 Special Considerations: G =i —- nse lon To AVEC Earliest Start Date: DEC 1290 CPLANMING LEN OInceR re), Duration: THE AUG 129) (comsTEuscTions >) Completed by: Date: Alaska Energy Authority To: Dave Denig-Chakroff From: George Matz Re: AVEC - Old Harbor Date: November 28, 1990 SITUATION - The Alaska Village Electric Cooperative (AVEC) has requested PCE Efficiency Improvements funding to construct a bulk fuel storage facility that will serve their power plant in Old Harbor. This facility will allow AVEC to purchase fuel directly from the supplier, rather than through the local retail dealer, at considerable savings. AVEC proposes to install four 10,000 gallon fuel tanks inside a diked area with an impermeable liner and a connecting fuel fill line. The fill line will allow delivery by barge. ANALYSIS - According to AVEC, their current retail fuel price at Old Harbor is $1.55 per gallon. The current bulk fuel price is $1.2035 per gallon which is $0.3465 less per gallon than the retail price. Although the price differential has increased with recent price increases, the differential previous to the price increases was about $0.30 a gallon. AVEC states that their fuel consumption for Old Harbor in 1989 was 60,984 gallons. According to the AEA 's PCE statistics, the fuel consumption for FY 89 was 55,019 gallons and for FY 90 it was 53,511 gallons. To be conservative, the FY 90 data was used in the analysis. AVEC states that the project cost should be $77,075. There will be no significant operation or maintenance costs associated with the project. The analysis determined (see Table 1) that the Old Harbor fuel storage facility, as proposed, would have a benefit/cost of 2.1. The PCE payback is 5.3 years and PCE savings over a period of 10 years should amount to $146,803. TABLE 1 AVEC - OLD HARBOR FUEL STORAGE FACILITY ECONOMIC ANALYSIS PCE ANALYSI PROJECT COSTS PROJECT COSTS Construction Costs 77,075 Total Costs 77,075 Annual Costs 0 Total Costs 77,075 FY 90 KWH USAGE KWH's Sold 691,606 FUEL SAVINGS PCE KWH's 547,568 Retail Fuel Price ($) 1.5500 PCE Ratio 0.79 Bulk Fuel Price ($) 1.2035 Price Difference ($) 0.3465 PCE BENEFITS Fuel Used (Gallons) 53,511. Annual Benefits ($) 18,542 Annual Savings 18,542 PCE Savings ($) 14,680 BENEFITS PCE PAYBACK (Yrs) 53 Annually 18,542 10 Years 185,416 10 YR PCE SAVINGS ($) 146,803 NPV 10 Yrs @ 3% 158,163 Benefit/Cost ol RECOMMENDATION - The fuel sorage facility proposed by AVEC for Old Harbor iC ity/AGs EB payback test. Therefore, it is iericy Improvements funding. cc Brent Petrie, AEA Gary Smith, AEA Mark Teitzel, AVEC MEMORANDUM Date: 12/04/90 To: Gary Smith From: Brian Gray Re: Old Harbor PCE Improvements Bulk Fuel Project I have prepared a budget for the above referenced project of $120,800. The budget is based on AVEC’s estimated design and construction cost of $104,000, which includes approximately 6% contingency. Even with the added contingency I still have some reservations as to the estimated cost (see attached telecon). Therefore I have added an additional 10% contingency to the design/construction cost in preparation of the budget. Possibly after completion of a few similar projects we can refine our cost estimating, but for now I think we need to be conservative. The estimated annual PCE savings is $14,680. Ata construction cost of $104,000 the revised benefit/cost ration is 1.4 and the revised PCE payback period is 7.1 years. Even with AEA costs and contingencies the project is still economically viable. OLDHBGM1 Date: TELEPHONE CONFERENCE LOG 12/03/90 Between: Brian Gray and Mark Tietzel Re: Old Harbor PCE Improvements Bulk Fuel Project Gary Smith called Mark on 11/30/90 to discuss our concern that the cost estimate of $77,000 is too low. Mark submitted a revised estimate of $98,212 at the end of the day on 11/30/90. I called him on 12/3/90 to discuss our concerns. The following points were covered: 1. vi Due to our current involvement in bulk fuel assessment and repair work we will expect compliance with all applicable codes and regulations. This will include as a minimum review of the design by the Fire Marshall and the AEA, preparation of an SPCC Plan for the EPA, and preparation of a Letter of Intent and an Operations Manual for the Coast Guard. Adequate engineering time should be allowed for handling the review and regulatory process. Materials should not be ordered until the design has been reviewed by the Fire Marshall and the AEA. Pipelines should be welded steel. A 3" diameter fill line will be required. Isolation valves will need to be steel. These items need to be considered in the cost estimate. I mentioned that we would not consider sand bags an acceptable dike. Mark explained that their intent was to build an earthen dike with material excavated from the hillside behind their site (on their property) and to use sand bags as a covering over the dike to prevent erosion. I told him I considered that to be a good idea. I questioned the fact that no costs for equipment rental were included. He said that the cost was included in their village labor and that if they couldn’t find equipment they would use shovels and wheelbarrows. I suggested he add an appropriate contingency to the estimate, maybe 10%. I explained that we would set up the grant so that the contingency could only be used after submitting documentation of cost overruns. I concluded by saying that after receipt of their final estimate work order I would begin to set up the grant. 1203BGT1 INQ-OI: ‘ PROCESS DATE 11/27/91 11/@2/91 1@/26/351 @2/26/91 @2/@2/91 ‘ENTER’ TO RETURN OPEN ITEM ACTIVITY REFC @2/18/92 GPEN _._.1 EN-280a350 TRANS SOURCE DOCUMENT CODE DESCRIPTION TRANS AMOUNT RD NUMBER 318-18 5S, S82. Ba— S122 A@S757a50aa3 318-18 24, 558. aa— 8122 A@5696180031 31@-1@ 49, 188. Ga— Size Aasesassaaai 31@-12 24, 55a. a@a—- 6137 A@445a500484 11@-1@ AEA GRANT VIA ALASKA 184, Ga. aa 8137 Ae4S45a5aa464 \ GM i duds mm A a “s counkingenrr, pes PFI=MAIN MENU PFS=FIRST PAGE Ra B@--SESSIONI Ri ci 9:55 2/18/92 sBg 2@47 NO ADDITIONAL FINS TG DISPLAY OVERFLOW? N ING-O1: ENCUMBRANCE DETAIL INQUIRY ENCUMBRANCE NUM 2808350 @2/18/92 DENOMINATOR @ FIN CURRENT-BALANCE CA SY cc FGM Le ACCT FY NMR 1 @.@@ 92 91 8149818 81827583 7773@ 91 DESC: AVEC/OLD HARBOR PCE EFFIC IMPRV GRANT FOR FINANCIAL LINE DETAIL ENTER ==) FIN ___ ('ENTER' BLANK FOR RETURN) PFI=MAIN MENU 3=0/I ACTIVITY S=BASE 6=ADD'L FIN 7=REFS B@--SESSION1 R #3 C 42 9:56 2/18/92 By Ra ING-OI: ENCUMBRANCE DETAIL INQU @2/18/92 ENCUMBRANC . uM 2aaa35a SGURCE RD CODE Q@8137 DATE ESTABLISHED @2/21/91 ORIGINAL PLACED 184, GBA. Ga DATE LAST ACTIVITY 11/27/91 ADJUST TO PLACED Qa, a2 DATE DUE @6/3a/91 TOTAL LIQUIDATIONS 184, BAA. @a- LIQUIDATION RULE: LN CURRENT BALANCE @. aa RETENTION? YES DESCRIPTION SHORT: OLD HARBOR PCE EFFIC DENOMINATOR @ DESCRIPTION LONG: AEA GRANT VIA ALASKA VILL ELECTRIC CO-GF FOR GRANT-IN-AIDE-OF-CONSTRUCTION - 25% ADV PAYMT, S@% INTERIM & 25% @ COMPLTN REF TYPE NUMBER AMOUNT DATE COMMENTS 1 JOB 816275a3 104,002.80 @2/01/91 AVEC/GLD HARBOR PCE EFF IMPRYV 2 AR 32398-95 2, SOG, QAM. @@ O7/Ai/9@ SLAB CH2@B PGE LNZS 3 AWD A 124,002.80 82/91/91 GLD HARBOR VIA AVEC 4 PVN AVES4794 ALASKA VILLAGE ELECTRIC CO-OF FIN CURRENT-BALANCE CA SY cc PEM Lc ACCT FY NMR i @.@@ 92 91 814981@ 81827583 77738 931i FOR FINANCIAL LINE DETAIL ENTER ==) FIN ___ (* ENTER’? BLANK FOR RETURN) PFI=MAIN MENU 3=G/I ACTIVITY 6=ADD'L FIN 7=ADD'L REF ‘By Aa Ba--SESSIONi R #3 C 42 9:55 2/18/92 ING-Ol: ENCUMBRANCE DETAIL INQUIRY ENCUMBRANCE NUM 28@@35@ @2/18/92 REF TYPE NUMBER AMOUNT DATE COMMENTS 1 JOB 818275a3 104, @8@.@@ @2/@1/91 AVEC/GLD HARBOR PCE EFF IMPRV 2 AR 32398-9395 2,500, 920.88 87/81/98 SLAIA CHEWS PGS LNZ6 3 AWD A 104,@@@.@@ @2/@1/91 OLD HARBOR VIA AVEC 4 PYN AVE84794 ALASKA VILLAGE ELECTRIC CO-OP S VEN AVE847394 AVEC FOR OLD HARBOR PCE EFFIC 6 LOC #20350 OLD HARBOR 7 LOC OLD HARBOR VIA AVEC & GRT AVEC 104,008.00 @2/21/91 ALASKA VILLAGE ELECTRIC CO-OP 3 GRT aesaad 104, @00.@@ @2/@1/91 DCED/AEA 1@ UWA 138202 104,000.80 2/01/91 PCE EFFIC IMPRV IN OLD HARBOR 11 ARD G@siea ALASKA ENERGY AUTHORITY 12 13 14 15 i6 i7 SRD @8137 @2/@1/91 18 OD AG4450500464 @2/01/91 7ENTER’ TO RETURN PFIsMAIN MENU 3=0/I ACTIVITY S=BASE 6=FINS 7=ADD'L REF | Ra B@--SESSION1 Ri cil 9:55 2/18/92 Alaska Energy Authority A Public Corporation March 1, 1991 Mark E. Teitzel Assistant General Manager 4831 Eagle Street Anchorage, Alaska 99503-7497 Subject: Advance Payment for Old Harbor PCE Efficiency Grant Dear Mr. Teitzel: Pursuant to the Contract Agreement No. 2800350, for the Old Harbor PCE Efficiency Improvements grant, attached is a check for $24,500.00 for the 25 percent advance payment. Sincerely, | tn ic An Brian Gray Rural Systems Engineer ekn PO. Box AM Juneau, Alaska 99811 (907) 465-3575 PO. Box 190869 701 East Tudor Road Anchorage, Alaska 99519-0869 (907) 561-7877 og This warrant wil be deemed pad wniess redeemed within ~ ——s a eS ee STATE OF ALASKA DATE OF ISSUE TREASURY WARRANT 02 26 91 89-52/71252 NO, 22496371 MO DAY YR $249550+00 PAY $ OR RIK IK 2G 9 550200 TO THE ORDER OF 08137 22496371 22581137 <SE Fr ALASKA VLG ELEC COOP INC 4831 EAGLE ST ANCHORAGE Ak 99503-7497 wme2ehGbs?am waeSe00Sean = ee2hGba?ac REMITTANCE ADVICE - STATE OF ALASKA TREASURY WARRANT - NOT NEGOTIABLE cae, NO.225981137/ WARRANT. MO DAY YR VENDOR VENDOR ID. 2arsess, ‘Se 28 of aLaSKA vic ELEC coop INC AVEBU794 ST 5 OFFICE PHONE DOCUMENT AMOUNT PAID GENOWHELAN acct II1 907 ‘Se1-7877 A04450500484 $247 550000 £ NUMBER DATE COMMENTS MOUNT jee alberses o2 T5 90 avecsovi™HarBoR PCE EFF GRANT 205550000 2800350 06 30 91 GRANT IN AIOE OF CONSTRUCTION 1043000200 inv ireoso 02 12 90 RECV AEA 2714/91 24) 55000 MAKE INQUIRIES ABOUT PAYMENT TO OFFICE LISTED ABOVE 4831 EAGLE STREET PEROT ASign At Ooh 4 99503 -1818 aiaska Energy Authority rer Mr. Gary Smith Alaska Energy Authority P.O, Box 190869 701 East Tudor Rd Anchorage, Ak 99519-0869 DATE? 4712/91 INVOICE NUMBER: QUANTITY DESCRIPTION To bill for PCE Utilities Efficiency Improvements project in Old K Harbor Contract #2800350 25% of $98,200.00 }- i ' i \ Project # acaska vIRURGEE EME EWDIc cooperative INC 6.0) “Hessian. { ! ' Payment Nt eee 116020 UNIT PRICE TOTAL AMOUNT 24,550.00