HomeMy WebLinkAboutCommunity Solar Project Round VIII Grant Application Packet
Corporate Office Central Peninsula Service Center
3977 Lake Street 280 Airport Way
Homer, Alaska 99603-7680 Kenai, Alaska 99611-5280
Phone (907) 235-8551 Phone (907) 283-5831
FAX (907) 235-3313 FAX (907) 283-7122
September 19, 2014
Alaska Energy Authority
813 W. Northern Lights Boulevard
Anchorage, Alaska 99503-2495
Attn: Round VIII Renewable Energy Grant Application, Community Solar Project
To Whom It May Concern:
Enclosed is Homer Electric Association’s (HEA) Round VIII Renewable Energy Grant
Application for a Community Solar Project located in Homer, Alaska.
HEA is pursuing grant funds to construct a 100 kW solar photovoltaic (PV) community-oriented
project. Community members will be given an opportunity to purchase a partial equity interest.
The value of each member’s share of the project’s generation would be credited to their monthly
electric bill.
For this renewable energy project, HEA is seeking $342,600 in grant funds with approximately
20% ($85,000) in matching grant funds provided by participating members.
Thank you for your consideration. Please contact Kathy McDonough at 907-235-3389, 907-283-
6222 or kmcdonough@homerelectric.com if you require additional information,
Sincerely,
Bradley P. Janorschke
General Manager
Enclosures
Renewable Energy Fund Round VIII
Grant Application - Standard Form
AEA 15003 Page 1 of 22 7/2/14
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form for
Round VIII of the Renewable Energy Fund. A separate application form is available for projects
with a primary purpose of producing heat (see RFA section 1.5). This is the standard form for all
other projects, including projects that will produce heat and electricity. An electronic version of the
Request for Applications (RFA) and both application forms is available online at:
http://www.akenergyauthority.org/REFund8.html.
If you need technical assistance filling out this application, please contact Shawn Calfa, the
Alaska Energy Authority Grants Administrator at (907) 771-3031 or at scalfa@aidea.org.
If you are applying for grants for more than one project, provide separate application forms
for each project.
Multiple phases for the same project may be submitted as one application.
If you are applying for grant funding for more than one phase of a project, provide
milestones and grant budget for each phase of the project.
In order to ensure that grants provide sufficient benefit to the public, AEA may limit
recommendations for grants to preliminary development phases in accordance with 3 ACC
107.605(1).
If some work has already been completed on your project and you are requesting funding
for an advanced phase, submit information sufficient to demonstrate that the preceding
phases are completed and funding for an advanced phase is warranted.
If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with your
submission or reference a web link where it can be downloaded or reviewed.
In the sections below, please enter responses in the spaces provided, often under the
section heading. You may add additional rows or space to the form to provide sufficient
space for the information, or attach additional sheets if needed.
REMINDER:
Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
In accordance with 333 (b) Applicants may request trade secrets or proprietary company
data be kept confidential subject to review and approval by the Authority. If you want
information is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept confidential.
If the Authority determines it is not confidential it will be treated as a public record in
accordance with AS 40.25 or returned to the applicant upon request.
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Homer Electric Association, Inc.
Type of Entity: Fiscal Year End:
Electric Utility December 31
Tax ID #92-0014079
Tax Status: ☐ For-profit ☒ Non-profit ☐ Government (check one)
Date of last financial statement audit:
Mailing Address: Physical Address:
3977 Lake Street 3977 Lake Street
Homer, Alaska 99603 Homer, Alaska 99603
Telephone: 907-235-8551 Fax: 907-235-3323 Email:
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name: Kathy McDonough Title: Manager of Engineering Services
Mailing Address:
3977 Lake Street
Homer, Alaska 99603
Telephone: Fax: Email:
907-235-3389 907-235-3323 kmcdonough@homerelectric.com
1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT
1.1.2
Name Telephone: Fax: Email:
Bradley P. Janorschke 907-283-2312 907-283-7122 bjanorschke@homerelectric.com
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1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
☒ An electric utility holding a certificate of public convenience and necessity under AS 42.05, or
☐ An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
☐ A local government, or
☐ A governmental entity (which includes tribal councils and housing authorities)
1.2 APPLICANT MINIMUM REQUIREMENTS (continued)
Please check as appropriate.
☒ 1.2.2 Attached to this application is formal approval and endorsement for the project by the
applicant’s board of directors, executive management, or other governing authority. If the
applicant is a collaborative grouping, a formal approval from each participant’s governing
authority is necessary. (Indicate by checking the box)
☒ 1.2.3 As an applicant, we have administrative and financial management systems and follow
procurement standards that comply with the standards set forth in the grant agreement
(Section 3 of the RFA). (Indicate by checking the box)
☒ 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as
identified in the Standard Grant Agreement template at
http://www.akenergyauthority.org/REFund8.html. (Any exceptions should be clearly noted
and submitted with the application.) (Indicate by checking the box)
☒ 1.2.5 We intend to own and operate any project that may be constructed with grant funds for
the benefit of the general public. If no please describe the nature of the project and who will
be the primary beneficiaries. (Indicate yes by checking the box)
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SECTION 2 – PROJECT SUMMARY
This section is intended to be no more than a 2-3 page overview of your project.
2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below.
Community Solar Project
2.2 Project Location –
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project in the subsections below.
2.2.1 Location of Project – Latitude and longitude, street address, or community name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s
location on the map and then right clicking with the mouse and selecting “What is here? The
coordinates will be displayed in the Google search window above the map in a format as follows:
61.195676.-149.898663. If you would like assistance obtaining this information please contact
AEA at 907-771-3031.
Parcel No. 75, Northeast corner of East Road and Bear Creek Drive, Homer, Alaska
Tract B, Nordby Subdivision, No. 6
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
The residents of the Kenai Peninsula
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
☐ Wind ☐ Biomass or Biofuels (excluding heat-only)
☐ Hydro, Including Run of River ☐ Hydrokinetic
☐ Geothermal, Excluding Heat Pumps ☐ Transmission of Renewable Energy
☒ Solar Photovoltaic ☐ Storage of Renewable
☐ Other (Describe) ☐ Small Natural Gas
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
☐ Reconnaissance ☐ Final Design and Permitting
☐ Feasibility and Conceptual Design ☒ Construction
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2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed project.
In response to strong member-consumer interest, Homer Electric Association (HEA) is pursuing
$342,600 in grant funds to construct a 100 kW solar phovoltaic (PV) community-oriented project.
The general concept would be to develop an economy-of-scale project, and allow members to
participate in that project through matching grant funds.
The size of the project would be nominally 100 kW of photovoltaic panels, with the actual quantity
adjusted to reflect internal system losses. The project would be sited on lands owned by HEA east
of the town of Homer, Alaska. This land is currently leased for use as a sod farm and has an
optimal south-facing slope. HEA distribution lines are adjacent to the site, with a 3 phase 12.5 kV
line on the south side and a single phase 7.2 kV line on the west side.
The following assumptions were made, based on a review of products from several manufacturers:
1. Output per panel: Average of 300 Watts (Vendor Range: 250 to 410 watts)
2. Power delivered to grid: 3 phase, transformed to 12.5 kV at interconnection point
3. Number of Panels required: 360 (will vary depending on vendor)
4. General Panel Layout anticipated: (9 double rows of 20 panels each)
5. 6 ft. X 7 ft. land surface area required for each panel: (7 ft. is largest case, and reflects ten
Solar panels w/reflectors)
6. 12 ft. wide vehicle access between panel rows for maintenance & snow removal
7. Estimated Total Land Surface Area (including inverter): 0.7 Acres
2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced
fuel costs, lower energy costs, local jobs created, etc.)
HEA would build and operate the 100 kW solar project. Members would then be given an
opportunity to purchase a partial equity interest in the solar PV project through matching grant
funds of approximately 20% or $85,000. (34 shares @ $2500 = $85,000).
The value of each member’s share of the project’s generation would be credited to their monthly
electricity bill, less a proportional share of the operating costs of the project. .
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and
source of other contributions to the project.
Capital Cost: $336,692
Engineering: $ 20,202
Project Management: $ 20,202 (assuming 6%)
Admin./Overhead/IDC $ 16,835 (assuming 5%)
Contingency & Misc.: $ 33,669 (assuming 10%)
Total $427,600
2.7 COST AND BENEFIT SUMMARY
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Include a summary of grant request and your project’s total costs and benefits below.
Costs for the Current Phase Covered by this Grant
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application $ 342,600
2.7.2 Cash match to be provided $ 85,000/Member Shares
2.7.3 In-kind match to be provided $
2.7.4 Other grant funds to be provided $
2.7.5 Total Costs for Requested Phase of Project (sum of 2.7.1 through 2.7.4) $427,600
Other items for consideration
2.7.6 Other grant applications not yet approved $ N/A
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.7 Total Project Cost
Summary from Cost Worksheet, Section 4.4.4, including
estimates through construction.
$ 427,600
2.7.8 Additional Performance Monitoring Equipment not
covered by the project but required for the Grant
Only applicable to construction phase projects
$
2.7.9 Estimated Direct Financial Benefit (Savings)
The economic model used by AEA is available at
www.akenergyauthority.org/REFund8.html. This
economic model may be used by applicants but is not
required. Other economic models developed by the
applicant may be used, however the final benefit/cost
ratio used will be derived from the AEA model to ensure
a level playing field for all applicants.
$
2.7.10 Other Public Benefit
If you can calculate the benefit in terms of dollars please
provide that number here and explain how you
calculated that number in Section 5 below.
$
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SECTION 3 – PROJECT MANAGEMENT PLAN
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope, schedule and budget proposed in the application.
3.1 Project Manager
Tell us who will be managing the project for the Grantee and include contact information, a resume
and references for the manager(s). In the electronic submittal, please submit resumes as separate
PDFs if the applicant would like those excluded from the web posting of this application. If the
applicant does not have a project manager indicate how you intend to solicit project management
support. If the applicant expects project management assistance from AEA or another government
entity, state that in this section.
Homer Electric Association will provide overall project management. A contractor has not yet been
selected to construct the project.
Kathy McDonough, Manager of Engineering Services, will be the project manager of HEA staff,
contractors and consultants. Ms. McDonough has been employed with Homer Electric Association
since 2009, overseeing the activities of Distribution Engineering Services, land management, and
geographic information systems. Please see attached resume. Ms. McDonough can be contacted
at 907-235-3389, 907-283-6222 or kmcdonough@homerelectric.com.
3.2 Project Schedule and Milestones
Please fill out the schedule below. Be sure to identify key tasks and decision points in in your
project along with estimated start and end dates for each of the milestones and tasks. Please
clearly identify the beginning and ending of all phases of your proposed project.
Please fill out form provided below. You may add additional rows as needed.
Tasks Estimated Dates
Design & Feasibility requirements 06/30/2015
Completion of Bid Documents
07/30/2015
Contractor / Vendor Selection and Award
08/15/2015
Equipment Procurement
09/15/2015
Construction
10/01/2015
Integration and Testing
11/01/2015
Final Acceptance / Commissioning 12/31/2015
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3.3 Project Resources
Describe the personnel, contractors, personnel or firms, equipment, and services you will use to
accomplish the project. Include any partnerships or commitments with other entities you have or
anticipate will be needed to complete your project. Describe any existing contracts and the
selection process you may use for major equipment purchases or contracts. Include brief resumes
and references for known, key personnel, contractors, and suppliers as an attachment to your
application.
HEA staff will manage this project with the following staff:
Bradley P. Janorschke, General Manager - Will act as the executive of the project and will
maintain ultimate authority.
Carrie Buckley, Director of Finance and Regulatory Affairs - Ms. Buckley will provide
financial and regulatory support.
Diana Imlay, Accounting Supervisor - Under the direction of Ms. Buckley, Ms. Imlay will be
responsible for grant reporting and will oversee all accounting functions.
Harvey Ambrose, Director of Power Fuels & Dispatch – HEA’s environmental
compliance falls within Mr. Ambrose’s responsibility.
Darrell Birkhimer, Director of Operations – Mr. Birkhimer will provide interconnection
oversight.
Mark Peery, Director of Engineering – Mr. Peery will provide technical assistance and
information on HEAs existing power system.
Kathy McDonough, Manager of Engineering Services – Ms. McDonough is the Project
Team Leader and will overseeing HEA staff, consultants and contractors.
Joe Gallagher, Director of Member Relations – Mr. Gallagher will provide all media
communication to the members of the cooperative.
Pat Ferguson, Director of Administration – Ms. Ferguson will provide safety, human
resources, warehouse, purchasing, facilities, and project management services
No official contracts have been entered into as of this date. However, four of the Alaskan solar
contractors contacted have expressed confidence in installing a system of this size. Installation
contractors will be certified by the North American Board of Certified Energy Practitioners
(NABCEP). Further selection criteria will include establishing their ability and willingness to provide
ongoing post-construction maintenance. Other contractors would be required for site survey and
geotechnical investigation.
Selection process for contractor and vendors will be in accordance with HEA’s purchasing and
procurement policies.
3.4 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status. Please
provide an alternative contact person and their contact information.
HEA currently has in place grant reporting procedures which have been used with previous grants.
Updates will be forwarded as required by AEA either monthly or quarterly.
3.5 Project Risk
Discuss potential problems and how you would address them.
No unforeseen risks.
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3.6 Project Accountant(s)
Tell us who will be performing the accounting of this Project for the Grantee and include contact
information, a resume and references for the project accountant(s). In the electronic submittal,
please submit resumes as separate PDFs if the applicant would like those excluded from the web
posting of this application. If the applicant does not have a project accountant indicate how you
intend to solicit project management support.
Diana Imlay, Accounting Supervisor
907-235-3397
dimlay@homerelectric.com
3.7 Financial Accounting System
Discuss the accounting system that will be used to account for project costs and whom will be the
primary user of the accounting system.
South Eastern Data Corporation (SEDC). Diana Imlay, Accounting Supervisor
3.8 Financial Management Controls
Discuss the controls that will be utilized to ensure that only costs that are reasonable, ordinary and
necessary will be allocated to this project. Also discuss the controls in place that will ensure that
no expenses for overhead, or any other unallowable costs will be requested for reimbursement
from the Renewable Energy Fund Grant Program.
Attached:
Board Policy #306, Corporate Services Contracts
Board Policy #401, Contracting & Purchasing
Management Directive #305, Purchasing Authority and Definitions
Management Directive #306, Procurement
SECTION 4 – PROJECT DESCRIPTION AND TASKS
The level of information will vary according to phase(s) of the project you propose to undertake
with grant funds.
If some work has already been completed on your project and you are requesting funding for an
advanced phase, submit information sufficient to demonstrate that the preceding phases are
satisfied and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be
available for the market to be served by your project. For pre-construction applications, describe
the resource to the extent known. For design and permitting or construction projects, please
provide feasibility documents, design documents, and permitting documents (if applicable) as
attachments to this application.
Results from the National Renewable Energy Laboratory’s PVWatts Program indicate
approximately 81,056 kWh per year are expected to be produced with a 100 kW fixed (open rack)
installation, with an array tilt of 59.6 degrees and an array azimuth of 180 degrees, located in
Homer, Alaska. Data was captured at the Homer Airport.
In addition to exploring solar as a renewable energy source, HEA is also exploring hydro and tidal
energy.
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4.2 Existing Energy System
4.2.1 Basic configuration of Existing Energy System
Briefly discuss the basic configuration of the existing energy system. Include information about the
number, size, age, efficiency, and type of generation.
Nikiski Combined Cycle Plant (Steam/Gas) 80 MW CT 1984; ST 2014
Soldotna Combustion Turbine Plant (Gas) 48 MW 2014
Bernice Lake Combustion Turbine Plant (Gas) 80 MW 3 Units 1971, 1978, 1981
Bradley Lake Hydroelectric Project (hydro) 14 MW 1991
4.2.2 Existing Energy Resources Used
Briefly discuss your understanding of the existing energy resources. Include a brief discussion of
any impact the project may have on existing energy infrastructure and resources.
HEA’s power supply portfolio primarily consists of natural gas-fired generation and hydro-electric
power. HEA’s large portion of gas-fired generation strongly influences HEA’s rates and is subject
to wide price volatility.
No impact on existing energy infrastructure or resources foreseen.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Homer Electric serves approximately 26,150 residential consumers on the Kenai Peninsula
As of December 31, 2013, $481,572,764 million –kilowatt hours were sold and $81,056,877 in total
revenue received.
The average residential electric cost between January 1, 2013 and December 31, 2013, was
$120.31/month or $1,443.75 annually.
No impacts on energy customers are anticipated as the member-owner would receive a
proportional share of the electricity produced by the project based on his/her purchased share of
project ownership. The quantity of power allocated to each member owning shares would be
credited on that member’s bill as if the generation had occurred at that member’s location. The
credited value would reflect the quantity of the allocated generation from the project. At the same
time, a proportional share of the operating costs of the project could be deducted from the credit.
Economically, the business case for a solar project is tax driven. While a not-for-profit cooperative
does not have a tax appetite to directly monetize tax incentives, members owning shares of the
project may be able to individually leverage those federal incentives to effectively lower their cost
of ownership.
4.3 Proposed System
Describe the system you are intending to develop and address potential system design, land
ownership, permits, and environmental issues.
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4.3.1 System Design
Provide the following information for the proposed renewable energy system:
A description of renewable energy technology specific to project location
Optimum installed capacity
Anticipated capacity factor
Anticipated annual generation
Anticipated barriers
Basic integration concept
Delivery Methods
Description of renewable energy technology specific to project location:
The primary technologies considered for this project are poly-crystalline silicon and mono-
crystalline silicon panels. Both are readily available in quantities ranging from small residential to
large multi-megawatt applications. Prices of the photovoltaic panels themselves have fallen below
$1.00 a watt, a key benchmark in bringing the technology closer to price parity with other
generation.
The difference between mono-crystalline vs. poly-crystalline solar cells is essentially that one is
produced from a single crystal of silicon and the other is produced from a piece of silicon consisting
of many crystals. While the single crystal provides slightly more efficiency, the polycrystalline cell
typically has a slightly lower cost, but a larger surface area. Since adequate project area is
available, both forms will work in this application, so the selection of cell technology should be
based on the final cost per kWh generated.
Following discussions with equipment vendors, a fixed axis system is recommended, rather than
single or double axis tracking systems. While a tracking system will increase production, the
increased capital and maintenance costs were projected to exceed the value of the increased
production. Furthermore, the extreme sun angle at this latitude raises issues with tracking software
and equipment. However, the final design of the system should provide a method for manual
adjustment of panel angles on a seasonal basis (i.e., spring and fall) by maintenance personnel or
temporary labor. The effort to adjust the panels to seasonal angles is estimated at roughly 4
person-days for each seasonal angle adjustment.
Alternatively, one installer recommended short piles for this application, noting they have the
equipment specifically designed for this type of installation. Both options should be priced during
the design phase.
The dimensions of solar panel assemblies are assumed to be roughly 6 feet by 7 feet (tenK Solar
dimensions), and typically weigh less than 100 pounds each. Screw-in anchors should be
sufficient to support the light loads, including snow load, while providing sufficient tension
resistance to address uplift potential from strong winds causing an airfoil effect on the panels. Use
of screw-in anchors would also avoid the potential for weather, labor and equipment complications
often experienced in concrete placement. The solar panel would then be mounted on the screw-in
anchor supports, using a site-specific structural frame and racking system selected or designed by
the system provider. Final design of the support system should provide sufficient height of the
panels from the ground (i.e., 3-4 feet) to allow for heavy snows and snow clearing
Optimum installed capacity
Analysis of existing residential solar installations already in place within the HEA system, as well as
projections from the Department of Energy’s National Renewable Energy Laboratory (NREL)
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suggest that a realistic capacity factor for a solar PV project using current photovoltaic technology
would be in the range of 9 to 11%.
Anticipated capacity factor
A realistic capacity factor for a solar PV project using current photovoltaic technology would be in
the range of 9 to 11%.
Anticipated annual generation
78,000 to 105,000 kWhs of electricity to the grid annually.
Basic integration concept and delivery methods
HEA would provide the project interconnection point and install a transformer sized for the project
at that point. The project would interconnect at that point with the appropriate solar interconnection
electronics and switchgear to be determined in consultations among the system vendor, a solar
consultant and HEA. The same approach would be taken with regard to the level and type of
communications & controls for the project. While normal utility practice for generation usually
entails fairly sophisticated SCADA communications, it must be recognized that the project size is
comparable to a medium-size commercial load and a more limited communications and controls
may be adequate. Options may include cell phone or local internet connections (fiber or wireless)
to monitor the project. Similarly, the need and scope of a protection study should be evaluated by
a competent electrical engineer familiar with solar projects and taking into account the limited size
of the power flows.
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the project
or how you intend to approach land ownership and access issues.
HEA owns a parcel of land near Homer, Alaska that could provide a fairly optimal location for a
solar PV project on the Kenai Peninsula.
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
List of applicable permits
Anticipated permitting timeline
Identify and discuss potential barriers
An email inquiry to the Kenai Peninsula Borough indicated that no permits or zoning issues would
apply to this project as it is located outside the Homer city limits.
No potential barriers are foreseen.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will be
addressed:
Threatened or endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
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Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
No environmental issues are foreseen.
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants records or analysis, industry standards,
consultant or manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
The project will cost approximately $427,600 of which HEA is requesting $342,600 though this
Renewable Energy Fund application.
4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these would be funded by the
applicant.
(Note: Operational costs are not eligible for grant funds however grantees are required to meet
ongoing reporting requirements for the purpose of reporting impacts of projects on the communities
they serve.)
Publicly available O&M cost data are limited, but the data found in national research by Bolinger &
Weaver at Berkeley suggests $20-$40/kW-year for large projects. That range was confirmed in
other sources. However, for a smaller 100 kW project, a higher cost per kW-year should be
expected, due simply to the fixed costs and overheads required to maintain an inventory of spare
parts and personnel to monitor and maintain the facility.
An annual O&M cost estimate will be $5,000. That estimate should be reviewed internally and with
local solar contractors at the outset of this project to consider options to control these costs.
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4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
Identification of potential power buyer(s)/customer(s)
Potential power purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
The proposed concept would be to design, construct and operate a solar project of modest size,
yet large enough to bring reasonable economy of scale to the project economics. At that size, a
substantial number of members would then have the option to purchase ownership shares in the
project.
With the production of power from the project, the member-owner would receive a proportional
share of the electricity produced by the project, based on his/her purchased share of project
ownership. The quantity of power allocated to each member owning shares would be credited on
that member’s bill as if the generation had occurred at that member’s location. The credited value
would reflect the quantity of the allocated generation from the project. At the same time, a
proportional share of the operating costs of the project could be deducted from the credit.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in
evaluating the project.
Please fill out the form provided below.
Renewable Energy Source The Applicant should demonstrate that the renewable energy
resource is available on a sustainable basis.
Analysis of available production data from 21 individual existing solar installations on the HEA
system shows a wide spread of capacity factors, ranging from 3.2% to 27.7%. The average
capacity factor was 11.7% and the median of the respective capacity factors as 10.6%
A separate analysis was run on NREL’s PVWatts program which projected a 9.3% capacity factor
based on meteorological data from the Homer Airport. As may be expected, the majority of
production (roughly 2/3) occurs from mid-March through mid-September. PV performance, based
on the solar radiation received, may vary from the long-term average by 30% monthly and 10%
yearly.
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Unit depends on project type (e.g. wind speed, hydropower output, biomass fuel)
Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other
N/A
ii. Rated capacity of generators/boilers/other
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
v. Efficiency of generators/boilers/other
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor N/A ii. Annual O&M cost for non-labor
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh]
ii. Fuel usage
Diesel [gal]
N/A
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu] N/A
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric
Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.
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Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity
(Wind, Hydro, Biomass, other)
[kW or MMBtu/hr]
100kW
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 78,000 – 105,000 kWhs
ii. Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
N/A ii. Coal [tons or MMBtu]
iii. Wood or pellets [cords, green tons,
dry tons]
iv. Other
Project Cost
a) Total capital cost of new system $427,600
b) Development cost
c) Annual O&M cost of new system $5,000
d) Annual fuel cost $0
Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat
iii. Transportation
iv. Natural Gas
1,027 Mcf
b) Current price of displaced fuel The current price for one (1.0) Mcf of natural gas is
$7.23
c) Other economic benefits
d) Alaska public benefits
Power Purchase/Sales Price
a) Price for power purchase/sale N/A
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Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
Payback (years)
4.4.5 Impact on Rates
Briefly explain what if any effect your project will have on electrical rates in the proposed benefit
area. If the is for a PCE eligible utility please discuss what the expected impact would be for both
pre and post PCE.
There would be no effect on electric rates.
SECTION 5– PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings, and
how the people of Alaska will benefit from the project.
The benefits information should include the following:
Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated
renewable energy project
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA
tariff, or cost based rate)
Potential additional annual incentives (i.e. tax credits)
Potential additional annual revenue streams (i.e. green tag sales or other renewable energy
subsidies or programs that might be available)
Discuss the non-economic public benefits to Alaskans over the lifetime of the project
Potential Annual Fuel Displacement: $7,425
Anticipated annual revenue: $0
Potential additional annual incentives (i.e., tax credits):
For a non-for-profit cooperative, to realize the tax benefits of a solar project, fairly sophisticated
financial innovation is required. Partnerships with taxable entities with a “tax appetite” and careful
structuring of the project can achieve a major portion of the economic value of the tax benefits and
reduce the cost of the project.
Such structuring involves establishment of special purpose entities (SPEs), such as LLCs or S-
Corps and partnerships with taxable entities. A “blocker” corporation to provide separation
between the coop and the project ownership may be necessary to enable partnering with a taxable
entity. Developing that structure will be more appropriately addressed by organizations with legal,
financial and accounting capabilities.
Potential annual revenue streams: $0
Non-economic public benefits to Alaskans over the lifetime of project:
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The project would provide an opportunity for a member to purchase a partial equity interest in the
solar PV project and benefit from that ownership. By purchasing a share in a larger project,
members could realize the benefits of economy of scale, as well as leverage an optimal solar
location on the Kenai Peninsula. Under the proposed concept, HEA would develop and operate
the facility, and members owning shares of the solar project would have the value of their
proportionate share of the project’s generation credited to their monthly electricity bill.
5.1 Public Benefit for Projects with Private Sector Sales
Projects that include sales of power to private sector businesses (sawmills, cruise ships, mines,
etc.), please provide a brief description of the direct and indirect public benefits derived from the
project as well as the private sector benefits and complete the table below. See section 1.6 in the
Request for Applications for more information.
Renewable energy resource availability (kWh per month)
N/A
Estimated sales (kWh)
Revenue for displacing diesel generation for use at
private sector businesses ($)
Estimated sales (kWh)
Revenue for displacing diesel generation for use by the
Alaskan public ($)
SECTION 6– SUSTAINABILITY
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
Proposed business structure(s) and concepts that may be considered.
How you propose to finance the maintenance and operations for the life of the project
Identification of operational issues that could arise.
A description of operational costs including on-going support for any back-up or existing
systems that may be require to continue operation
Commitment to reporting the savings and benefits
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Business Plan Structure: The community solar plant will be developed and operated by HEA.
Operations and maintenance will be financed through typical utility accounting procedures using
revenue generated by utility cash flows. The facility would be essentially unmanned requiring only
periodic inspection and routine maintenance.
Annual O&M costs are anticipated to be approximately $5,000/year.
SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS
Discuss what you have done to prepare for this award and how quickly you intend to proceed with
work once your grant is approved.
Tell us what you may have already accomplished on the project to date and identify other grants
that may have been previously awarded for this project and the degree you have been able to
meet the requirements of previous grants.
In 2013, Energy Engineering, Inc., prepared a business plan for a 100 kW community solar project.
At its regular meeting of March 11, 2014, the Board of Directors adopted Resolution #45-2014-07
authorizing management to pursue grant funding for this project. If funds are awarded, HEA will
begin construction as soon as possible after approximately $85,000 of matching funds are received
from HEA members.
SECTION 8 – LOCAL SUPPORT AND OPPOSITION
Discuss local support and opposition, known or anticipated, for the project. Include letters of
support or other documentation of local support from the community that would benefit from this
project. The Documentation of support must be dated within one year of the RFA date of July 2,
2014
The HEA board of directors, which represents approximately 31,000 member-owners, has shown
consistent support for renewable energy projects. Additionally, HEA has been encouraged by its
members to explore alternative sources of sustainable power supply, lessen its reliance on natural
gas fuel, and stabilize rates, while providing an opportunity for member-owners to participate in the
development of alternative power supply development.
SECTION 9 – GRANT BUDGET
Tell us how much you are seeking in grant funds. Include any investments to date and funding
sources, how much is being requested in grant funds, and additional investments you will make as
an applicant.
9.1 Funding sources and Financial Commitment
Provide a narrative summary regarding funding source and your financial commitment to the
project
Requested Grant Funds $342,600
Expenditures to Date:
Renewables Consultant $ 17,101
9.2 Cost Estimate for Metering Equipment
Please provide a short narrative, and cost estimate, identifying the metering equipment, and its
related use to comply with the operations reporting requirement identified in Section 3.15 of the
Request for Applications.
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Applications MUST include a separate worksheet for each project phase that was identified in
section 2.3.2 of this application, (I. Reconnaissance, II. Feasibility and Conceptual Design, III. Final
Design and Permitting, and IV. Construction and Commissioning). Please use the tables provided
below to detail your proposed project’s budget. Be sure to use one table for each phase of your
project.
If you have any question regarding how to prepare these tables or if you need assistance preparing
the application please feel free to contact AEA at 907-771-3031 or by emailing the Grants
Administrator, Shawn Calfa, at scalfa@aidea.org.
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on phase
and type of project. See Milestone
list below. )
$ $ $
Design and feasibility
requirements complete 06/30/2015 $ $ $
Completion of Bid Documents 07/30/2015 $ $ $
Contractor/vendor selection and
award 08/15/2015 $ $ $
Order Materials 09/15/2015
$ $ $
Begin Construction 11/01/2015 $ $ $
Integration & Testing
11/01/2015 $ $
Final Acceptance, Commissioning
and Start-Up 12/31/2015 $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $
Equipment $ $ $
Materials & Installation $ 336,692 $ 83,500 $ 420,192
Contractual Services $ $ $
Construction Services $ $ $
Other $ 5,908 $ 1,500 $ 7,408
TOTALS $ 342,600 $ 85,000 $ 427,600
SECTION 10 – AUTHORIZED SIGNERS FORM
Community/Grantee Name:
Homer Electric Association, Inc.
Regular Election is held:
Annually
Date:
May 7, 2015
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Authorized Grant Signer(s):
Printed Name Title Term Signature
Bradley P. Janorschke General Manager N/A
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Bradley P. Janorschke General Manager N/A
Grantee Contact Information:
Mailing Address: 3977 Lake Street, Homer, Alaska 99603
Phone Number: 907-235-8551
Fax Number: 907-235-3323
E-mail Address: Bjanorschke@homerelectric.com
Federal Tax ID #:
92-0014079
Please submit an updated form whenever there is a change to the above information.
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SECTION 11 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Contact information and resumes of Applicant’s Project Manager, Project
Accountant(s), key staff, partners, consultants, and suppliers per application form
Section 3.1, 3.4 and 3.6.
Applicants are asked to provide resumes submitted with applications in separate electronic
documents if the individuals do not want their resumes posted to the project web site.
B. Letters or resolutions demonstrating local support per application form Section 8.
C. For projects involving heat: Most recent invoice demonstrating the cost of heating
fuel for the building(s) impacted by the project.
D. Governing Body Resolution or other formal action taken by the applicant’s governing
body or management per RFA Section 1.4 that:
- Commits the organization to provide the matching resources for project at the
match amounts indicated in the application.
- Authorizes the individual who signs the application has the authority to commit
the organization to the obligations under the grant.
- Provides as point of contact to represent the applicant for purposes of this
application.
- Certifies the applicant is in compliance with applicable federal, state, and local,
laws including existing credit and federal tax obligations.
E. An electronic version of the entire application on CD or other electronic media, per
RFA Section 1.7.
F. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations and
that they can indeed commit the entity to these obligations.
Print Name Bradley P. Janorschke
Signature
Title General Manager
Date September 19, 2014
Section 3.8 Financial Management Controls Documents
BOARD POLICY
306 – Corporate Services Contracts
I. OBJECTIVE(S)
A. To establish procedures for soliciting and retaining certain formal services for the
Cooperative.
II. POLICY CONTENT
A. Formal corporate services agreements for legal services, financial auditing services, and
insurance services should not exceed three years in duration.
B. The Board of Directors shall review the agreement and vendor performance prior to the
expiration of the contract.
C. To the extent possible, corporate services agreement expiration dates during the same
calendar year shall be kept to a minimum.
III. RESPONSIBILITY
A. The General Manager is responsible for ensuring compliance with this policy.
February 12, 2013
DATE BOARD PRESIDENT
POLICY HISTORY
Date Adopted: May, 2004
Reviewed Dates: 05/06; 04/08; 06/10; 01/13; 02/13
Revision Dates: 05/06; 04/08; 06/10; 02/13
DOCUMENT REFERENCE(S)
Board Policy 301, Corporate Banking
Management Directive 305, Purchasing Authority and Definitions
BOARD POLICY
401 – Contracting and Purchasing
I. OBJECTIVE(S)
A. To establish guidelines for procuring materials, equipment, and services from acceptable
vendors.
II. POLICY CONTENT
A. The Board shall annually adopt operating, general plant, and annual work plan budgets.
Those actions provide the General Manager with the authority to make purchases and
other commitments in line with such budgets and work plans.
B. The General Manager has authority to approve purchases of goods or services for
operational, general plant or work plan budgets which have been approved by the
Board. The General Manager also has the authority to issue change orders for contracts
awarded in a formal bidding process in amounts which do not exceed an aggregate
change equal to the lesser of $500,000 or 10% of the original contract price. The General
Manager shall submit a monthly report to the Board for any individual purchases or
services which exceed $100,000.
C. For project costs which are fully reimbursable to HEA, the General Manager has
authority to make necessary purchases of goods and services.
D. The General Manager will determine and delegate other purchasing authorities as
necessary for the smooth and timely operations of the Cooperative in amounts not to
exceed the authorities granted herein.
E. Any purchase for which authority is not delegated pursuant to this policy shall be
presented to the Board for approval in advance of the execution of a contract therefore.
F. Bidding Requirements
1. For all purchases exceeding $25,000 and less than $100,000 a minimum of three
informal bids will be solicited.
2. For all purchases in excess of $100,000, a formal bid process will be followed. This
requirement also applies to blanket purchase orders in excess of $100,000 per year.
BP 401, Page 2 of 3
3. Bidders on construction contracts must demonstrate knowledge of transportation
and communication problems, climatic variations, unusual mobilization costs,
unique topographical and soil conditions, and the local working environment.
4. The General Manager shall maintain Management Directives and pre‐qualification
procedures for related bidding requirements.
5. All purchases of materials made with RUS loan funds shall be made following the
ʺBuy Americanʺ requirements of RUS, as amended by the North American Free
Trade Agreement Implementation Act.
G. When purchasing goods, materials, or services, the Cooperative shall first solicit
quotations from vendors:
1. Possessing an Alaska business license;
2. Maintaining an office and staff within the State of Alaska;
3. Incorporated in the State of Alaska or registered within the State of Alaska as foreign
corporations authorized to do business within the State of Alaska.
H. Where price, quality and quantity are approximately equal, a vendor maintaining an
office or other place of business in the service area shall be given preference within 5
percent. This policy will not apply where the provisions of an applicable statute,
regulation, or grant prohibit local bidder preference; nor will it apply to HEA facilities or
operations located outside of the service area.
I. Waiver of Requirements
1. The General Manager may waive a bidding requirement in the event of an
emergency. If the General Manager declares an emergency he shall report it to the
Board within 30 days of declaring the emergency.
2. The General Manager may waive bidding requirements if documentation is
provided supporting a determination that the purchase can only be made from a
single source or verification of the absence of three responsive formal or informal
bids. If the bidding requirement is waived, the General Manager will report the
waiver to the board within 30 days.
3. The Board may waive any requirements of this policy.
J. Unbudgeted Expenses
BP 401, Page 3 of 3
1. The General Manager shall have the authority to approve unbudgeted purchases
within the approved spending limits which in his judgment are vital to the
operations of the Cooperative. The General Manager shall report unbudgeted
purchases to the board within 30 days.
III. RESPONSIBILITY
A. The General Manager shall be responsible for ensuring compliance with this policy.
June 15, 2010
DATE BOARD PRESIDENT
POLICY HISTORY
Date Adopted: February, 1992 (formerly Policy I‐18)
Reviewed Dates: 04/96; 12/03; 05/04; 12/05; 07/06; 06/08; 06/10
Revision Dates: 04/96; 12/03; 05/04; 12/05; 07/06; 06/08; 06/10
MANAGEMENT DIRECTIVE
305 -Purchasing Authority and Definitions
PURPOSE: To clearly define and establish purchasing authority and the process for
initiating a purchase.
CONTENT
1. Pre-Purchase Planning:
a. Initiator shall work with the Purchasing Agent to develop specifications and
sources which will allow financial preparation for expenditures and to assure
proper procedures are followed.
b. The Engineering Department shall provide the Purchasing Agent an estimated
materials list for the annual order for those construction projects they expect to
perform.
2. Authorized Signatures and Limits:
a. Authorized limits and signers are identified per the attached.
b. In the absence of the General Manager, the General Manager's designee shall
assume the General Manager's purchasing authority and reporting
responsibilities identified in Board Policy #401.
c. All purchases over $25,000 must conform to Management Directive #306,
Procurement.
3. Types of Purchases:
All purchases shall be in compliance with the authorized signatures and limits noted
above and shall be handled as follows:
a. Purchase Requisition (for most purchases):
i. Requestor shall submit a completed "Purchase Requisition," HEA Form
#0132, for items to be purchased. If suggested vendor or prices are not
available, please so state. The Purchasing Department will obtain the
Accounting Department and General Manager's authorizations.
MD 305, Page 2 of 4
ii. If the requisition is processed, a copy of the completed purchase order
(P.O.) will be sent to the requestor.
m. Jf the requisition is rejected, it will be returned to the requestor with an
explanation
IV. If additional information is required, the requestor shall be so advised.
v. If an item is not received shortly after expected delivery date, the
requestor should notify purchasing, who will contact the vendor for an
update on delivery.
b. Items Not Requiring a Purchase Requisition:
Certain administrative items do not require a purchase requisition. A
Department Director, Manager, or Supervisor's signature on a completed check
request may be used for the payment of the following types of purchases:
Airline travels
Air taxi service (all types)
Annual meeting services
Attorney fees
Banking fees
Board meeting expenses
Call out meal expenses
Collection and credit expenses
Courier services
CPA services
Credit card payments
Donations
Dues and membership fees
Employee expense statements
Employee recognition expenses
Freight expenses
Utility bills
Hotel expenses
Insurance premiums & deductibles
Maintenance Agreements
Medical expenses
Newspaper advertisements
One-Call locate services
Payroll taxes/CSED
Permits
Petty cash
Postage
Purchased power
Radio advertisements
Recruitment expenses
Rental cars
Scholarships
Seminars and conferences
Subscriptions & updates
Telephone bills
c. Local Purchase Order (LPO): A local purchase order may be used for purchases
that do not exceed $500. The Purchasing Agent will be responsible for and
issuance of LPO books.
d. Annual (or Blanket) P.O.: A vendor providing materials, supplies, or a service to
the Cooperative on a continuing or monthly basis may be issued an annual
purchase order. Follow purchase requisition procedures above.
MD 305, Page 3 of 4
e. Air Travel: For local air travel, travel vouchers may replace a purchase order.
For out of state travel or special travel arrangements, a check request must be
signed by the General Manager.
f. Meals: For local meals (e.g., call-out meals, travel meals, etc.) a meal voucher
may be submitted for reimbursement and a purchase requisition/order is not
required.
g. Invoices: Invoices $500 or less for goods and services (not including construction
material, construction services or capital budget items) may be approved by the
authorized signer on the invoice.
h. Purchasing cards may be used for purchases included in items b., c., f., and g.
above that are within the current approved budget and spending limits.
4. Emergency Purchases:
Only purchases which meet the qualification of "emergency purchase," as established by
Board Policy #401, may be processed under this provision. In the event of an
emergency, a Department Manager may authorize purchases without following the
required purchase process. All such events, paperwork and justification will be
presented to the General Manager for review.
5. Non-Authorized Purchases:
The Accounting and Purchasing Departments shall work together to resolve non-
authorized purchases or problem invoices to assure timely payment to vendors.
RESPONSIBILITY:
It is the responsibility of each employee to adhere to these guidelines.
DATE ~~-r:~ Bradley P. Janor ke
/Z-/Z..-/1
GENERAL MANAGER
DIRECTIVE HISTORY Formerly MD 601
Date Adopted: March 3, 1994
Revision Dates: 10/15/1994, 10/25/1994, 5/11/2000, 07/07/2004, 09/22/2004, 02/06/2006,
06/13/2006, 05/08/2008, 12/14/2010
BOARD POLICY REFERENCE(S)
BP 401, Contracting and Purchasing
MANAGEMENT DIRECTIVE REFERENCE(S)
MD 306, Procurement Procedures
FORMS REFERENCE(S)
Form 0132, Purchase Requisition
MD 305, Page 4 of 4
MANAGEMENT DIRECTIVE
306 -Procurement
PURPOSE: To set forth specific details on administering the procurement process for Homer
Electric Association operations, maintenance, contractors, or goods and services, and to set forth
specific details on the qualifications of subcontractors for construction contracts.
CONTENT
1. Delegation of Authority
The Projects Group Manager and Purchasing Agent have been delegated the
responsibility and authority to negotiate and enter into contracts and procure goods and
services on behalf of Homer Electric Association using the procedures established herein
as follows:
a. Procure supplies, services and construction materials required by HEA;
b. Sell, trade or otherwise dispose of surplus supplies belonging to HEA;
c. Maintain all records pertaining to the procurement of supplies, services and
construction, and the disposal of supplies by HEA;
d. Join with other cooperatives, subject to the approval of the General Manager, in
joint purchasing ventures where the best interests of HEA would be served;
e. Compile and maintain, to the extent practicable, a qualified bidder list for
maintenance, construction, and professional services utilized by HEA;
f. Compile and maintain a log of all contracts awarded for supplies, services,
professional services or construction, together with any amendments thereto;
and
g. Participate in the development and adoption of standard specifications for
supplies, services, and construction wherever practicable, which shall be in
compliance with RUS and North American Free Trade Agreement (NAFTA)
requirements.
MD 306, Page 2 of 9
2. Pre-Qualification Lists
a. Pre-Qualification Lists may be utilized for procurement via either a formal or
informal bid process. The lists are generally used for major equipment/materials
acquisition or contracting certain services. Examples of such procurement
include annual snow plowing bids, equipment rentals, line materials bids, etc.
b. Pre-Qualification Lists will be developed annually by the Projects Group
Manager or the Purchasing Agent. Development of such lists will be
accomplished by:
1. Publication of the intent to develop a pre-qualification list, specifying the
service I materials involved and deadline for submitting appropriate
information (publication shall include at least one paper of general
circulation located within each service area); or
ii. Written notice to businesses on the Kenai Peninsula known to be
involved in the requested service or materials.
c. Final determination of the businesses on the Pre-Qualification List may include
consideration of such matters as:
i. The timely availability of the goods/materials;
11. The prior history of the firm/vendor in supplying goods, materials,
services, and/or labor to HEA;
iii. Possession of an Alaska business license;
IV. Maintenance of an office and staff within Alaska;
v. Corporate registration within Alaska or corporations authorized to do
business in Alaska;
vi. Regulatory requirements of the federal or state government; and
vn. Other such qualifications as may be periodically determined necessary.
3. Formal Bid Process
A Formal Bid Process, with a minimum of three bids solicited, is required for purchases
exceeding $100,000 in cumulative value (including "blanket" or "annual" purchase orders
for supplies and I or materials). A Formal Bid Process will include the following
procedures.
MD 306, Page 3 of 9
a. Pre-Qualification List
If this step is utilized, the list previously developed for the specific
procurement will be utilized and the formal bid process shall invite only
those names shown on the Pre-Qualification List. Any pre-qualified service
area business will be eligible for the bid process.
b. Invitation to Bid
1. An Invitation to Bid will be developed by the Projects Group Manager, a
consultant or staff member assigned for the purpose of administering or
managing the specific project.
Reference to the Projects Group Manager in this section is intended to
indicate that it is his/her direct responsibility, unless a consultant is
engaged or staff member assigned for a particular project, in which
case the responsibility rests with the consultant or staff member. The
responsibility for reviewing the consultant's or staff member's
product rests with the Department Director or project sponsor who is
responsible for the particular project.)
ii. An Invitation to Bid is a general statement, for publication purposes, of the
Scope of the Project, and also provides details on the availability and costs
of the bid package, the date I time of the pre-bid conference, the date/time
of the bid opening, the contact source at HEA, the architect I engineer, and
other such information as may be required.
c. Bid Package Development
The Bid Package Development generally includes a contract and the plans and
specifications for the project. The Projects Group Manager is responsible for the
Bid Package Development. Development of the bid package shall include, when
applicable, specific sections for evaluation of:
i. Timeliness in responding to warranties and/or repairs;
u. Availability of repair facilities located within the service area;
iii. Availability of replacement parts within the service area; and
iv. Other such matters which may not necessarily involve only the lowest
bid but are none-the-less of value to HEA in its operations.
MD 306, Page 4 of 9
The contract and other documents will be reviewed by the attorney prior to
dissemination, as appropriate.
d. Advertise Bid
Publication of the Invitation to Bid shall be in at least one paper of general
circulation, as defined by Alaska State Statutes, located within the SPSC and
CPSC service areas a minimum of once per week for two consecutive weeks,
unless otherwise approved by the General Manager.
e. Pre-Bid Conference
If it is determined that there is a need for a Pre-Bid Conference, the conference
shall be held at either the Homer or Kenai office of HEA. The conference shall be
conducted by the Projects Group Manager.
f. Bid Period
1. The bid period shall be at least 14 calendar days unless otherwise
approved by the General Manager.
ii. Bids shall be received only at an HEA office, and shall be logged in so as
to show the date and time of receipt. Bids shall be turned over to the
Projects Group Manager for safekeeping until the date of the bid opening.
g. Bid Opening
The Projects Group Manager shall conduct the bid opening and is responsible for
determining responsiveness to bids by:
1. Opening the bids in the order in which they were received;
ii. Reading aloud the name and address of the bidder and the date and time
the bid was received;
iii. Verifying that all required submittals were received;
iv. Setting aside those bids considered not responsive and which do not have
the submittals required;
v. Reading aloud the bid prices for all responsive bids;
vi. Assuring that the bid information is recorded on a Bid Register, for
permanent records;
MD 306, Page 5 of 9
vii. Reading aloud the Cost Estimate completed by I for HEA, if provided;
and
viii. Announcing the close of the Bid Opening and stating that an
award may be made after reviewing and evaluating all bids.
h. Evaluation of Bids
The Project Group Manager is responsible for assuring that:
1. All bids are reviewed for correct pricing and unit extensions;
11. All technical requirements of the bid package are met by the apparent
low bidder, relying upon the evaluation of consultants and HEA staff as
necessary;
iii. If deemed necessary by HEA, the apparent low bidder will submit a
confidential bidder questionnaire or provide a list of references in order
to satisfy HEA that they are responsible and qualified to perform the
contract requirements; and
iv. When applicable, review vendor evaluation file for matters such as
timeliness of warranty work, etc.; and
v. The quality of previous work/services performed for the Cooperative
shall be a component of the bid evaluation.
The Projects Group Manager develops an award recommendation to the
General Manager, based upon such evaluation. Where price, quality and
quantity are approximately equal, a business maintaining an office in the service
area will be given preference in the bid award.
1. Notice of Bid Award
The Projects Group Manager or the Purchasing Agent shall notify the successful
bidder within ten days of the bid opening date, unless otherwise noted in bid
package.
4. Informal Bid Process:
All purchases which exceed $25,000, but are less than $100,000, require an informal bid
process. The process for Informal Bids is as follows:
MD 306, Page 6 of 9
a. Pre-Qualification List
If this step is utilized, the list previously developed for the specific procurement
will be utilized and the informal bid process shall include only those names
shown on the Pre-Qualification List if there is a minimum of three qualified
bidders.
b. Informal Bid Notice
i. The Projects Group Manager shall contact, v1a telecommunications,
businesses qualified to provide the goods/materials required.
ii. At least three bids shall be solicited. Any pre-qualified service area
business shall be eligible for the invited bid process.
c. Informal Bid Register
The Project Group Manager is responsible for assuring that the bid information
received from the contacted business is recorded on a Bid Register, and is kept
on permanent record.
d. Evaluation of Informal Bids
The Project Group Manager and HEA staff, as required, is responsible for
assuring that:
i. All informal bids are reviewed for correct pricing and unit extensions;
ii. All technical requirements are met by the apparent low informal bidder;
and
111. Previous work performed for the Cooperative is considered in the bid
evaluations.
e. Award of Informal Bid
1. The Projects Group Manager and I or Purchasing Agent are authorized to
award informal bids which are within the procurement limits set forth in
Management Directive #305. Where price, quality and quantity are
approximately equal, a business maintaining an office in the service area
will be given preference in the award.
11. Informal Bids which exceed the authority of the Purchasing Agent or
Department Managers for procurement authorization shall be sent to the
MD 306, Page 7 of 9
General Manager for award, with a recommendation of award from the
Purchasing Agent or Projects Group Manager.
f. Notice of Bid Award
The Purchasing Agent or Projects Group Manager shall notify the successful
bidder within ten days of the bid opening date.
5. Single or Sole Source Procurement
Single or sole source procurement is utilized when:
a. A written determination, with supporting documentation, is made that justifies
the purchase should only be made from a single or sole source. A completed
HEA form 393 "Waiver of Bidding Requirements" with appropriate signatures
must be submitted for General Manager authorization.
b. All single or sole source procurements will be authorized by the General
Manager.
6. Request for Proposal
HEA periodically engages consultants in a professional or technical advisory capacity to
provide certain expertise, with an end product normally being a report or
recommendation, a technical service, or plans, specifications or estimates for
construction projects.
Such consultants typically include the following services:
a. Audit Service
c. Legal Services
d. Banking Services
d. Engineering Services
These procurements require a "Request for Proposal" process, which utilizes the steps
outlined in the bid process, except that the bid package is substituted with a Scope of
Services Section.
a. The Scope of Services Section identifies the work or services required by HEA,
and methods of evaluation of the responses to the Request for Proposals.
MD 306, Page 8 of 8
b. Pre-Qualification Lists for these services may be utilized and, if so, must then
conform to the procedures set forth in that section.
c. The term of these services may exceed a one year duration. All services with
annual costs over $100,000 shall be reviewed at least every three years.
d. The General Manager may waive the requirements of this process and the
procurement shall then be considered a single or sole source procurement, and
will follow the requirements of that section.
7. Standard Procurements
Standard or routine procurements for goods or materials under $25,000 shall be
accomplished in accordance with the appropriate Management Directives.
8. Exceptions
Exceptions to these procedures require the authorization of the General Manager.
RESPONSIBILITY
It is the responsibility of each employee to adhere to these guidelines.
1"2:1_?... -II
DATE
DIRECTIVE HISTORY Formerly MD 603
Date Adopted: July 1993
Reviewed Dates:
Revision Dates: 01/94, 10/01, 2/06, 07/06
BOARD POLICY REFERENCE(S)
#401, Contracting and Purchasing
MANAGEMENT DIRECTIVES REFERENCE(S)
MD 305, Purchasing Authority and Definitions
FORMS REFERENCE(S)
# 393, Waiver of Bidding Requirements
~~ BTadJ€YP.Jill10
GENERAL MANAGER
Section 7 Resolution 45.2014.07
Corporate Office Central Peninsula Service Center
3977 Lake Street 280 Airport Way
Homer, Alaska 99603-7680 Kenai, Alaska 99611-5280
Phone (907) 235-8551 Phone (907) 283-5831
FAX (907) 235-3313 FAX (907) 283-7122
RESOLUTION 45.2014.07
AUTHORIZATION TO PURSUE GRANT FUNDING
WHEREAS,the Board of Directors of Homer Electric Association,Inc. (HEA) wishes to
pursue a renewable energy Solar Community Project; and
WHEREAS,the HEA Board wishes to seek a grant from the Renewable Energy Grant Fund
Program, managed by the Alaska Energy Authority (AEA), to help fund the project;and
WHEREAS, the process to pursue AEA project funding requires adequate lead time, staffing,
and resources.
NOW, THEREFORE,
BE IT RESOLVED that the Homer Electric Association, Inc. Board of Directors hereby
authorizes the General Manager to proceed with the Alaska Energy Authority application process
to pursue grant funding for a Solar Community Project.
CERTIFICATION
I, Jim Levine, do hereby certify that I am the Deputy Secretary of Homer Electric
Association, Inc., and that the foregoing resolution was adopted at a meeting of the Directors of
Homer Electric Association, Inc. held on March 11, 2014, at which meeting a quorum was
present.
Jim Levine, Deputy SecretaryLineDeputy Secreta