HomeMy WebLinkAboutCity OF Seward - Round 9_REF Application HEAT - FINALRenewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 1 of 29 7/8/15
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 Heat Projects only. If your application is for energy
projects that will not primarily produce heat, please use the standard application form (see RFA
section 1.5). An electronic version of the Request for Applications (RFA) and both application
forms are available online at: http://www.akenergyauthority.org/Programs/Renewable-Energy-
Fund/Rounds#round9.
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 (e.g. final design, construction) 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 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. Supporting
documentation may include, but is not limited to, reports, conceptual or final designs,
models, photos, maps, proof of site control, utility agreements, power sale agreements,
relevant data sets, and other materials. Please provide a list of supporting documents in
Section 11 of this application and attach the documents to your application.
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. Please
provide a list of additional information; including any web links, in section 12 of this
application and attach the documents to your application. For guidance on application best
practices please refer to the resource specific Best Practices Checklists; links to the
checklists can be found in the appendices list at the end of the accompanying REF Round
IX RFA.
In the sections below, please enter responses in the spaces provided. 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.
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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In accordance with 3 AAC 107.630 (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 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.
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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SECTION 1 – APPLICANT INFORMATION
Please specify the legal grantee that will own, operate and maintain the project upon completion.
Name (Name of utility, IPP, local government or other government entity)
City of Seward, Alaska
Type of Entity: Fiscal Year End:
Local Government December 31st
Tax ID # 92-600086
Tax Status: ☐ For-profit ☐ Non-profit x Government (check one)
Date of last financial statement audit: 6/15/2014
Mailing Address: Physical Address:
P.O. Box 167 410 Adams Street
Seward, AK 99664 Seward, AK 99664
Telephone: Fax: Email:
907-224-4020 907-224-4038 rlong@cityofseward.net
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name: Ron Long Title: Assistant City Manager
Mailing Address: same as above
Telephone: Fax: Email:
Same as above Same as above Same as above
1.1.1 APPLICANT SIGNATORY AUTHORITY CONTACT INFORMATION
Name: Jim Hunt Title: City Manager
Mailing Address: same as above
Telephone: Fax: Email:
907 224 - 4012 907-224-4038 jhunt@cityofseward.net
1.1.2 APPLICANT ALTERNATE POINTS OF CONTACT
Name Telephone: Fax: Email:
Stefan Nilsson 907-224-4060 907-224-4038 snilsson@cityofseward.net
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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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
x A local government, or
☐ A governmental entity (which includes tribal councils and housing authorities)
1.2 APPLICANT MINIMUM REQUIREMENTS (continued)
Please check as appropriate.
x 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)
x 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)
x 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/Programs/Renewable-Energy-Fund/Rounds#round9. (Any
exceptions should be clearly noted and submitted with the application.) (Indicate by
checking the box)
x 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)
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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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.
Heat Pump System For City Owned Buildings
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 (preferred), 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.
City Hall: 60.06.19 N x 149.26.33 W
Borehole Field: 60.06.17 N x 149.25.97 W
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Seward, AK
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
☐ Wind to Heat ☐ Biomass or Biofuels
☐ Hydro to Heat ☐ Solar Thermal
☐ Heat Recovery from Existing Sources X Heat Pumps
☐ Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
☐ Reconnaissance x Final Design and Permitting
☐ Feasibility and Conceptual Design x Construction and Commissioning
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Grant Application – Heat Projects
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2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed heat project.
Design and construction of a ground source heat pump system to displace approximately
96% of the heating oil usage of four existing City buildings (24,323 sq ft Library; 8,192 sq ft
City Annex; 20,532 sq ft City Hall; 7,262 sq ft Fire Hall) and one future building (800 sq ft
Adams Street Shower House). A field of sixteen vertical boreholes, 6” diameter x 300 ft
depth, will be drilled on City land adjacent to the existing waterfront bike path. Vertical
double u-bend 1” HDPE loops will be installed in each of these boreholes. A single u-bend
loop will be installed in the existing 300 ft deep x 4” diameter test hole that was constructed
by the City in August 2015. The vertical loops will be charged with a 20% methanol/80%
water heat transfer fluid. The loops will serve as 50 year+ design life underground heat
exchanger that will be warmed by the ocean tides of Resurrection Bay.
The test borehole already installed by the City indicates that warm subsurface ocean water
is moving thru the existing 300 ft deep alluvial gravel twice per day at a temperature ranging
from 42F to 52F. The vertical loops will connect via a reverse return manifold to buried
insulated supply and return trunk mains that will deliver ground heat to the four City
buildings via loop pumps. A pair of blank tees will be provided on the trunk mains to allow
connection of laterals to serve heat pumps in the new year round Adams Street Shower
House. The shower house is anticipated to be built in the fall of 2016 at the same location
as the existing Adams Street Restroom on the water front park adjacent to the proposed
trunk mains.
Four high efficiency water to water heat pumps, one buffer tank, and loop pumps will be
installed in the existing mechanical rooms of the Library and City Hall. One buffer tank will
be installed in the Annex and the Fire Hall. One existing heating oil boiler will remain in each
building to serve as a standby and lag boiler. On the load (hot) side of the heat pumps,
buffer tanks will be heated from 125F to 145F, these will in turn supply heat to existing
hydronic space heating and domestic hot water systems in the buildings. A heat
pump/boiler controller will integrate the heating oil boiler such that supplemental oil boiler
heat will be provided only when the heat pump capacity is exceeded on the coldest winter
days, or when one or more heat pumps are out of service.
The goal of the ground source heat pump project is to displace 96% of the heating oil
currently used annually in the four City buildings for space heating and domestic hot water
heating (18,570 gallons/yr heating oil displacement), and to displace all heating oil that will
be require for the new year round Adams Street Shower House planned for construction in
2016 (1,450 gallons/yr heating oil displacement). An additional goal is to provide this heat
for these public buildings at a lower cost than oil boilers or straight electric heat options.
The total quantity of #1 heating oil anticipated to be displaced annually is 20,020 gallons,
which equates to 2,146 MMBTU @80% oil boiler efficiency.
2.5 Scope of Work
Provide a scope of work detailing the tasks to be performed under this funding request. This
should include work paid for by grant funds and matching funds or performed as in-kind match.
- Advertising and soliciting proposals for professional design services; review of proposals,
notice of award to successful design team.
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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- Design scoping meeting in Seward. Design Memo to confirm design team and preliminary
construction cost opinion. Engineering design of vertical loop field; buried manifold piping,
buried trunk mains, buried laterals to buildings; loop pumps and source side piping, heat
pumps, buffer tanks, load side piping connections to existing hydronic systems; integration
of heat pump controls with existing oil boiler controls, electrical power panels and wiring;
instrumentation for web based data monitoring. 100% complete plans, specifications,
updated cost opinion and updated economic analysis.
- Advertising and soliciting bids for construction services; pre-bid conference in Seward;
review of bids, award to successful bidder.
- Consultant to provide construction phase services including review and approval of
contractor’s submittals; construction inspection; assistance to City and contractor with
start up, testing and commissioning, and completion of punch list items.
- Construction of proposed ground source heat pump project including borehole drilling
and vertical loop field installation; buried manifold piping; buried insulated HDPE trunk
mains; insulated HDPE laterals to buildings; source side loop pumps and piping; heat
pumps; buffer tanks; load side piping connections to existing hydronic systems; integration
of heat pump controls with existing oil boiler controls; electrical power panels & wiring;
instrumentation for data monitoring.
- Pressure testing and flushing of the entire closed loop system; charging loop with heat
transfer fluid. Start up, testing, commissioning of the entire ground source heat pump
system to meet project specifications. Completion of punch list items and adjustments to
reach contract close out.
SECTION 3 – Project Management, Development, and Operation
3.1 Schedule and Milestones
Criteria: Stage 2-1.A: The proposed schedule is clear, realistic, and described in adequate detail.
Please fill out the schedule below (or attach a similar sheet) for the work covered by this funding
request. 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. Add additional rows as needed.
Milestones Tasks
Start
Date
End
Date
Deliverables
Design Phase: Select Design Team 3/1/16 3/22/16 Solicitation, NTP
Design Team Scope Mtg 3/25/16 3/28/16 Scoping Mtg Minutes
Complete Design Memo 4/1/16 4/10/16 Memo w/cost opinion
Complete 65% Design 4/15/16 5/15/16 Plans, Specs, cost opinion
Complete 100% Design 5/20/16 5/31/16 Plans, Specs, cost opinion
Update Economic Analysis 5/20/16 5/31/16 Economic Analysis
Construction Phase: Prepare Bid Package 6/1/16 6/15/16
Advertise For Bids 6/16/16 7/15/16 Bid Advertisement
Review Bids 7/16/16 7/23/16
Award Bid 7/24/16 7/31/16 Notice Of Award
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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Pre-Con Conference 8/1/16 8/2/16 Pre-Con Mtg Minutes
Submittal Reviews 8/3/16 9/2/16 Progress Report
Contractor Mobilizes 9/6/16 9/12/16 Progress Report
Stake Out/Line Locates 9/6/16 9/10/16 Progress Report
Drill/Install 16 Vertical Loops 9/8/16 10/31/16 Progress Report
Construct Mains/Laterals 9/11/16 10/31/16 Progress Report
Mech/Elect Inside Bldgs 9/11/16 10/31/16 Progress Report
Construct Loop Manifold 11/1/16 11/5/16 Progress Report
Pressure Test System 11/6/16 11/7/16 Progress Report
System Start Up/Testing 11/8/16 11/15/16 Progress Report
Punch List Items/Testing 11/16/16 11/22/16 Progress Report
Final Punch List/Close Out 11/28/16 12/15/16 Close Out Certificate
3.2 Budget
Criteria: Stage 2-1.B: The cost estimates for project development, operation, maintenance, fuel,
and other project items meet industry standards or are otherwise justified.
3.2.1 Budget Overview
Describe your financial commitment to the project. List the amount of funds needed for project
completion and the anticipated nature and sources of funds. Consider all project phases, including
future phases not covered in this funding request.
- City of Seward has completed in recent years energy efficiency improvements to buildings
in the proposed system that were invoiced at a total of $32,497.
- City of Seward has installed, for the sum of $24,999, a 4” diameter x 300 ft screened test
borehole in the deep alluvial gravel formation along the bike path at the base of Adams
Street (completed by Denali Drilling, August 2015). In August & September 2015 the City
has profiled the water column in the test borehole for temperature and salinity at various
depths during high and low tides using a Cast Away data logger ($780 instrument rental
cost). These measurements have confirmed that warm subsurface ocean water is flowing
into the gravel twice per day to a depth of 200 feet.
- City of Seward has completed for the sum of $48,000 an Economic Evaluation of Ground
Source Heat Pump System For City Buildings (by YourCleanEnergy LLC, September 2015)
for the proposed ground source heat pump system.
- The City of Seward has established a Total Project Cost of $850,000 for the subject project
and the City Council committed by unanimous vote (7-0) a Council Resolution of August 31,
2015 to allocate a cash match of $85,000 toward the design phase of the proposed project.
- City of Seward has committed, by authority of the City Manager, a $16,000 in-kind match
for administration of the project via the City’s Project Manager.
- City of Seward has committed, via the authority of the City Manager, a $2 4,000 in-kind
construction labor/excavation match toward the construction phase of the project. The City
plans to install the laterals from the trunk lines to inside the Library and City Hall; and the
insulated hot water supply and return laterals between the Library and Annex, and the City
Hall and Fire Hall.
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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- City of Seward is requesting a grant amount of $725,000 from AEA to enable completion of
the design phase; solicitation and evaluation of bids; construction phase; and data
monitoring phase of the proposed project.
- City of Seward will finance operation and maintenance of the project throughout its design
life from City General funds and from heating oil savings accrued by the proposed project.
The economic analysis for the project includes a one time cost of $125,000 at year 25 for
replacement of heat pumps and loop pumps. This cost would be covered by the City
general fund thru savings over heating oil accrued over that time period.
3.2.2 Budget Forms
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). Please use the tables provided below to detail your
proposed project’s total budget. Be sure to use one table for each phase of your project . The
milestones and tasks should match those listed in 3.1 above.
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
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 sections 2.3 thru
2.6 of the RFA )
$ $ $
Design Phase: $ $ $
Secure Design Consultant Team $ $ 1,000 In-kind (City PM) $ 1,000
Complete Design Documents $ $ 87,880 $83,880 Cash +$4,000 In-
kind (City PM) $ 87,880
$ $ $
Construction Phase: $ $ $
Advertise & Award Bids $ $ 2,000 In-kind (City PM) $ 2,000
Construct Project $ 725,000 $ 34,120
$1,120 Cash + $9,000 In-
kind (City PM) + $24,000
In-kind (City crew)
$ 759,120
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ 725,000 $ 125,000 $ 850,000
Budget Categories:
Direct Labor & Benefits $ 21,000 $ 30,000 $
Travel & Per Diem $ $ $
Equipment $ $ 10,000 (city
excavator) $
Materials & Supplies $ $ $
Contractual Services (Consultant) $ 19,356 $ 83,880 $
Construction Services (Contractor) $ 684,644 $ 1,120 $
Other $ $ $
TOTALS $ 725,000 $ 125,000 $ 850,000
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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3.2.3 Cost Justification
Indicate the source(s) of the cost estimates used for the project budget.
Cost estimate for the project design and construction budgets were derived from the
detailed Economic Evaluation completed by YourCleanEnergy LLC in September 2015. The
Economic Evaluation is attached as a PDF separate to the application; the cost estimate for
ALT B (includes Library, Annex, City Hall, Fire Hall) is for this project.
3.2.4 Funding Sources
Indicate the funding sources for the phase(s) of the project applied for in this funding request.
Grant funds requested in this application $725,000
Cash match to be provided $ 85,000
In-kind match to be provided $ 40,000
Total costs for project phase(s) covered in application (sum of above) $850,000
For heat projects using building efficiency completed within the last 5 years as in-kind match, the
applicant must provide documentation of the nature and cost of efficiency work completed.
Applicants should provide as much documentation as possible including:
1. Energy efficiency pre and post audit reports,
2. Invoices for work completed,
3. Photos of the building and work performed, and/or
4. Any other available verification such as scopes of work, technical drawings, and payroll for
work completed internally.
3.2.5 Total Project Costs
Indicate the anticipated total cost by phase of the project (including all funding sources). Use
actual costs for completed phases.
Reconnaissance (Construct Test Well, Collect Water Column Data) $ 24,999
Feasibility and Conceptual Design (Economic Evaluation) $ 48,000
Final Design and Permitting $ 88,880
Construction $761,120
Total Project Costs (sum of above) $922,999
3.2.6 Operating and Maintenance Costs (non-fuel) (City Labor)
Estimate annual non-fuel O&M costs associated with the proposed system
$ 1200 for heat
pumps + $1200 for
oil boilers= $2,400
3.2.7 Fuel Costs
Estimate annual cost for all applicable fuel(s) needed to run the proposed system
Fuel type Annual cost ($)
Electricity for loop pumps (@Large General
Service Rate of $0.184/KWH), 3%/yr escalation)
$2,290
Electricity for heat pumps (@Large General
Service Rate of $0.184/KWH), 3%/yr escalation)
$37,210
Electricity for oil boiler burners (@Large General
Service Rate of $0.184/KWH), 3%/yr escalation)
$120
Total Annual Fuel Cost (2015) $39,620
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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3.3 Project Communications
Criteria: Stage 2-1.C: The applicant’s communications plan, including monitoring and reporting, is
described in adequate detail.
Describe how you plan to monitor the project and keep the Authority informed of the status.
The City Project Manager will have on-line access to web based data for the heat pump
systems. Specifically, the web based data will include KWH meters and BTU meters for
heat pump systems included in this project. The Project Manager will compile a monthly
on-site inspection report of the heat pump systems with field notes and include the power
usage and energy production data of the heat pump systems. This information can be
transmitted to AEA in report form as part of the required reporting program during the first
heating season of operation.
3.4 Operational Logistics
Criteria: Stage 2-1.D: Logistical, business, and financial arrangements for operating and
maintaining the project throughout its lifetime and selling energy from the completed project are
reasonable and described in adequate detail.
Describe the anticipated logistical, business, and financial arrangements for operating and
maintaining the project throughout its lifetime and selling energy from the completed project.
Operation and maintenance costs of the heat pump system will be derived throughout the
design life from the City’s general fund, similar to the O&M now performed for all City
buildings.
All energy produced by the systems will be utilized within the City buildings, no
arrangement for the selling of heat to others is required.
SECTION 4 – QUALIFICATIONS AND EXPERIENCE
4.1 Project Team
Criteria: Stage 2-2.A: The Applicant, partners, and/or contractors have sufficient knowledge and
experience to successfully complete and operate the project. If the applicant has not yet chosen a
contractor to complete the work, qualifications and experience points will be based on the
applicant’s capacity to successfully select contractors and manage complex contracts.
Criteria: Stage 2-2.B: The project team has staffing, time, and other resources to successfully
complete and operate the project.
Criteria: Stage 2-2.C: The project team is able to understand and address technical, economic, and
environmental barriers to successful project completion and operation.
Criteria: Stage 2-2.D: The project team has positive past grant experience.
4.1.1 Project Manager
Indicate who will be managing the project for the Grantee and include contact information, and a
resume. 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.
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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The City keeps a project manager on staff for mid and high level projects; the position has
recently become vacant. The City is accepting applications and expects to fill the position
before project construction. The individual selected will meet the qualifications outlined in
the attached position description. In the interim the City contracts necessary project
management functions to qualified private firms on an as needed basis.
4.1.2 Expertise and Resources
Describe the project team including the applicant, partners, and contractors. Provide sufficient
detail for reviewers to evaluate:
• the extent to which the team has sufficient knowledge and experience to successfully
complete and operate the project;
• whether the project team has staffing, time, and other resources to successfully complete
and operate the project;
• how well the project team is able to understand and address technical, economic, and
environmental barriers to successful project completion and operation.
If contractors have not been selected to complete the work, provide reviewers with sufficient detail
to understand the applicant’s capacity to successfully select contractors and manage complex
contracts. Include brief resumes for known key personnel and contractors as an attachment to
your application. In the electronic submittal, please submit resumes as separate PDFs if the
applicant would like those excluded from the web posting of this application
The City of Seward has experience in contracting various projects through a competitive
procurement process for capital projects, and qualifications process for professional
services. The City plans to secure a professional consultant experienced in similar heat
pump systems to lead the design and construction phase services of the project. Post
construction operations for this project are expected to be equal to or less than with the
current systems, and are within the current capacity of the City.
The City’s current project team routinely administers, executes and completes capital and
public works projects and contracts of similar scope and complexity.
The City’s project team will be assisted by the consulting engineer with any technical
issues throughout the construction period, and on an as needed basis thereafter. More
routine barriers both during construction and in operations are within the ability of the
current staff.
Resumes for key City Staff are attached: Ron Long, Stefan Nilsson, Naneth Ambrosiani.
4.1.3 Project Accountant(s)
Indicate who will be performing the accounting of this project for the grantee and include a resume.
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 financial accounting support.
The City’s Finance Department will designate the individual to perform the accounting
functions for this project.
Resume for the City Finance Director, Chris Erchinger is attached.
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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4.1.4 Financial Accounting System
Describe 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.
The project will be assigned a unique account code, where all costs are recorded and
reported. All accounts are to Governmental Accounting Standards Board requirements, as
well as any additional requirements specific to the grant, and are independently audited
annually.
4.2 Local Workforce
Criteria: Stage 2-2.E: The project uses local labor and trains a local labor workforce.
Describe how the project will use local labor or train a local labor workforce.
Operations over the life of the project will be almost exclusively by the local workforce, i.e.
those within a reasonable commuting distance of the completed system, and will be a
modification of position responsibilities within positions historically filled with area
residents.
Construction contractors will be independently responsible for fulfilling hiring goals; the
City does however offer a 5% contract preference for bidders whose primary offices are
within the service area.
SECTION 5 – TECHNICAL FEASIBILITY
5.1 Resource Availability
Criteria: Stage 2-3.A: The renewable energy resource is available on a sustainable basis, and
project permits and other authorizations can reasonably be obtained.
5.1.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available, including average
resource availability on an annual basis. Describe the pros and cons of your proposed energy
resource vs. other alternatives that may be available for the market to be s erved 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.
The energy resource available is warm subsurface ocean water from Resurrection Bay that
flows via tides into the 300 foot deep alluvial gravel shoreline adjacent to the bay. This is
the same subsurface ocean heat source that has successfully supplied the Alaska SeaLife
Center heat pump system since 2011. The warm ocean water originates at the equator and
is transported by the North Pacific Gyre into the Alaska current that passes in front of the
bay. The shoreline closest to the project area is owned by the City. The City installed a 300
foot deep x 4” diameter test borehole in the deep alluvial gravel of the waterfront in August
2015; the water profile (temperature and salinity) was then measured with a professional
submersible marine data logger (CastAway).
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These measurements confirmed that the static water level is 18ft to 22 ft below grade and
that warm sea water (42F to 52F) is influencing the top 180 ft of the water column as tides
move in and out of the deep gravel. The measurements also show that deeper levels of the
gravel aquifer (180ft to 300 ft) have a stable water temperature of 42F with higher salinity.
This data indicates that 300 ft long vertical loops of 1” HDPE installed in the deep gravel will
be in full contact with the water column from a depth of 18 to 22 ft below grade and will
experience optimal heat transfer characteristics for a closed loop water source heat pump
system.
By using double u-bends and proven “quad-bone” vertical pipe spacers in each 300ft deep
borehole, the anticipated useful winter yield is 3.4 tons heat pump capacity per double u-
bend borehole installed. A field of 16 double u-bend boreholes + one single u-bend is
anticipated to provide a total system heat pump capacity of 56 tons (672,000 BTU/hour). A
total of eight high efficiency water to water heat pumps, each with a capacity of 7 tons
(84,000 BTU/hour), are proposed for installation in City buildings to meet winter heat loads
and displace approximately 96% of recent years heating oil usage.
The use of ocean source heat pumps has already proven to provide significant reduction in
heating cost at the Alaska SeaLife Center over both heating oil boilers and straight electric
resistance heat. While the SeaLife Center utilizes an existing ocean intake pipe and
titanium heat exchanger to transfer heat into their source side loop, this approach is less
attractive than the proposed use of ground loops adjacent to the ocean. The ground loop
approach effectively places the heat transfer process in a subsurface location protected
from storms, floods, silt, bio-fouling, boat anchors, and freezing. The ground loop is
essentially one large closed loop that the City can pump from the City buildings and
therefore no above grade infrastructure is required in the waterfront area.
5.1.2 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 describe potential barriers
All elements of the project will be constructed on City land, City rights-of-way, or in City
buildings. There will be a building permit required for at least the interior works i.e.,
mechanical, electrical, & seismic.The Building Permit will be issued out of the Building
Departments office at City Hall, turnaround time usually takes max 14 days. No other
permits will be required for the proposed project.
5.2 Project Site
Criteria: Stage 2-3.B: A site is available and suitable for the proposed energy system.
Describe the availability of the site and its suitability for the proposed energy system. 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.
The vertical loop field will be located on City Parks & Rec shoreline land that is currently
open field. Once constructed, the loop manifold will be buried 6 ft below grade and the land
will return to its use for public recreation. Insulated HDPE trunk lines will be buried in a 4 ft
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deep trench along City streets in the City R.O.W. All heat pump equipment will be located
inside City buildings.
5.3 Project Risk
Criteria: Stage 2-3.C: Project technical and environmental risks are reasonable.
5.3.1 Technical Risk
Describe potential technical risks and how you would address them.
Potential technical risks associated with drilling in the waterfront gravel formation have
been assessed by drilling the 300 ft deep test hole in August 2015. With moderate effort,
the driller was able to drill and drive 6” steel casing down hole, install a 4” PVC screened
well, and then hydraulically extract the full length of 6” steel casing. This is a similar
procedure that will occur with installation of vertical loops, and accordingly the technical
risk of this procedure is anticipated to be very low and manageable by an experienced
driller.
A second potential risk is freezing of the source side loop in winter. This risk is mitigated
by using a heat transfer fluid with 20% methanol / 80% water mixture; and using insulated
HDPE trunk mains and laterals that will be buried in 4 ft deep trenches. The City electric
utility has full standby diesel power generation for the downtown grid area so outages are
rarely more than a few hours.
In the event of a failure of one or more heat pumps in any one of the buildings, one existing
oil boiler of the best condition will be retained as a lag/standby unit for that building. This
approach was used successfully in the Seldovia House heat pump system (constructed
under REF Round 7) that has been on-line since December 2014. Several spare loop pumps
and motors can be procured under the project to ensure rapid replacement should one of
the loop pumps fail.
5.3.2 Environmental Risk
Explain 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
Aviation considerations
Visual, aesthetics impacts
Identify and describe other potential barriers
The vertical ground loops will be 1” HDPE (SDR 11) with electro fusion weld joints, pressure
tested in the factory, and then pressure tested again in the field after installation. The
manifold and trunk mains are also HDPE SDR 11 with electro fusion weld joints that will be
pressure tested upon installation. Therefore, barring a significant seismic event that shears
the entire shoreline, the risk of a heat transfer fluid leak from the buried low pressure
source side loop is very small.
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The vertical ground loops and loop field manifold will be buried at a minimum depth of six
feet after installation. Trunk mains and laterals will be installed in 4 ft deep trenches. The
use of City Parks & Rec land, and City street R.O.W.s will return to their normal use and
appearance after construction is completed. Therefore no aesthetic impacts are introduced
by the project.
The heat pumps use only electricity as fuel, so there is no liability of fossil fuels (storage,
transport, combustion, emissions) associated with their use, with the exception of the
existing oil boiler that will be retained at each building for standby redundancy.
5.4 Existing and Proposed Energy System
Criteria: Stage 2-3.D: The proposed energy system can reliably produce and deliver energy as
planned.
5.4.1 Basic Configuration of Existing Energy System
Describe the basic configuration of the existing energy system. Include information about the
number, size, age, efficiency, and type of generation.
All four City buildings currently have oil fired hydronic boilers of various age, size and MFG
as detailed in the attached Economic Evaluation. The Library also has an electric boiler that
will be placed off-line at any time the heat pumps are operating to stay within power
capacity of the facility. Basic info on the boilers is as follows:
City Building No of Boilers Type Net MBH Age Efficiency
Library/Museum 1 main Oil Fired 242,567 2012 82.6%
1 standby Electric 460,000 2012 100%
City Annex 1 main Oil Fired 194,928 1998 78.6%
City Hall 1 main Oil Fired 255,029 2007 73.2%
1 standby Oil Fired 250,000 1996 68.2%
Fire Hall 1 main Oil Fired 110,550 2009 85.0%
1 standby Oil Fired 110,550 2006 82.5%
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
ii. Rated capacity of generators/boilers/other
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
v. Efficiency of generators/boilers/other
vi. is there heat recovery and is it operational?
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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b) Annual O&M cost
i. Annual O&M cost for labor $2,400 labor for annual clean & tune of all oil boilers
ii. Annual O&M cost for non-labor $900 for electricity for burners/blowers on oil boilers (4,900
KWH/year) + $600/yr parts = $1,500/year total
c) Annual electricity production and fuel usage (fill in as applicable)
i. Electricity [kWh]
ii. Fuel usage
Diesel [gal]
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]
19,344 gallons #1 heating oil / year for
all four existing City Buildings:
Library/Museum = 6,064 gallons
City Annex = 2,475 gallons
City Hall = 7,480 gallons
Fire Hall = 3,325 gallons
5.4.2 Future Trends
Describe the anticipated energy demand in the community over the life of the project.
The design life of a ground source heat pump project is taken to be 50 years, as
recommended by AEA in previous REF rounds, and by the US Department of Energy, due to
the significant amount of below ground HDPE piping infrastructure involved. It is
anticipated that heat pumps and loop pumps will be replaced at year 25. The proposed
project will serve City buildings in the downtown area that are anticipated to remain in
heavy usage and occupation throughout the design life of this project.
A near future addition to the heat pump system is anticipated. The City is planning to
construct a new shower house to replace the existing Adams Street Restroom that serves
the public during summer months. The shower house will be approximately 24 x 30 feet in
footprint and will be equipped with radiant floor heat and envelope insulation for winter use.
This project is anticipated to be built in the fall of 2016 at the same time the proposed
ground source heat pump system will be constructed if grant funding allows. The shower
house will be within 140 feet of the source side trunk mains leaving the vertical loop field
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and the plan is to connect this new shower house to the mains with buried insulated HDPE
SDR11 laterals. Therefore blank tees will be installed in the trunk mains under the proposed
project to allow connection of the Adams Street Shower House.
The future shower house is anticipated to provide approximately 3,000 showers per year to
the public, and will also include both men’s and women’s restrooms with toilets and sinks.
The annual hot water heating load is anticipated to be approximately 30 MMBTU, and the
annual space heating load is anticipated to be 125 MMBTU. The total annual heat load is
thus anticipated to be 155 MMBTU; the use of heat pumps to serve this load would offset
1,450 gallons of heating oil each year if produced with an 80% efficient oil boiler. The
addition of these shower house heat loads will increase the utilization and public benefit of
the proposed ground source heat pump system. Most of the shower house utilization will
occur in summer months when the campground and waterfront are heavily occupied with
visitors.
5.4.3 Impact on Rates
Briefly explain what if any effect your project will have on electrical rates in the proposed benefit
area over the life of the project. For PCE eligible communities, please describe the expected
impact would be for both pre and post PCE.
The proposed heat pump system is not anticipated to have any direct effect on electrical
rates in the benefit area over the life of the project. However the success of the system may
stimulate an increased use of heat pumps in the City and that associated increase in base
load may allow for rate reduction if revenue to the City electric utility rises substantially
over the design life period.
5.4.4 Proposed 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
Integration plan
Delivery methods
A ground source heat pump system will be utilized to displace 96% of heating oil now
consumed in four City buildings. As described in the attached Economic Evaluation, the
optimum installed capacity of the system will be 56 tons. There will be a total of 16 double
u-bend and one single u-bend vertical ground loops of 300 ft depth that will warm supply
and return source side trunk mains to the four buildings. A total of eight heat pumps will be
required, each with 7 tons of heating capacity. Four heat pumps (7 tons each) and one 360
gallon buffer tank will be installed in the Library (to serve Library and Annex); four heat
pumps and one 360 gallon buffer tank will be installed in City Hall (to serve the City Hall and
Fire Hall); one 240 gallon buffer tank will be installed in the Annex and Fire Hall. The high
efficiency heat pumps are anticipated to run with an annual average COP of 2.9. One
existing oil boiler will be retained in each building and will be piped in parallel to the heat
pump load supply and return to the buffer tank. In the event that the heat pumps are unable
to maintain buffer tank set point temperature, the oil boiler will fire and warm the buffer tank
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as required. Experience from the Seldovia House ground source heat pump project placed
on-line in December 2014 indicates that the oil boiler will only fire during extreme cold days,
or as a result of high domestic hot water demand.
The capacity factor of the eight heat pumps is the ratio of anticipated annual production
divided by the production if the heat pumps were operating at full capacity all year long.
That ratio is then 1,991 MMBTU / 5,887 MMBTU = 0.34 or 34%. This capacity factor will allow
each bank of four heat pumps in the Library and City Hall to rotate units evenly throughout
the year and equalize running hours. This even rotation will ensure longer compressor life
of the heat pump units, and will reasonably allow 25 years of useful service before
replacement of all heat pumps and loop pumps will be required.
The anticipated annual heat generation by the heat pump system for the Library, City Hall,
Annex and Fire Hall is 1,991 MMBTU. An additional heat generation of 155 MMBTU per year
will occur with addition of the Adams Street Shower House to the system.
Given the recent success with borehole drilling in the deep gravel, and the large amount of
public support expressed for the project, no significant barriers to the project are
anticipated at this time.
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]
Eight heat pumps, each 84,000 BTU/hour, for a
total system capacity of 760,000 BTU/hour.
Anticipated average annual COP = 2.9, annual
capacity factor of heat pumps = 34%
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh]
ii. Heat [MMBtu] 2,146 MMBTU
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu] Existing oil boilers anticipated to carry 4% of
annual heat load @80% efficiency = 80 MMBTU =
746 gallons #1 heating oil
ii. Coal [tons or MMBtu]
iii. Wood or pellets [cords, green tons,
dry tons]
iv. Other 12,440 KWH for loop pump electricity + 202,220
KWH for heat pump electricity + 650 KWH for exist
oil boilers = 215,310 KWH total
5.4.5 Metering Equipment
Please provide a short narrative, and cost estimate, identifying the metering equipment that will be
used to comply with the operations reporting requirement identified in Section 3.15 of the Request
for Applications.
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For the proposed heat pump system, metering equipment with web based monitoring
capability will be included to track the heat production (BTU meters) and electrical energy
usage (KWH meters) of heat pump banks in both the Library and City Hall. Hot water
hydronic branches to the Annex and Fire Hall will also be equipped with BTU meters. Thus
heat production utilized by each building can be accounted for, as well as the system COP
for each bank of heat pumps. The costs for the BTU and KWH meters are incorporated in
the project cost estimate for Alternative B in the attached Economic Evaluation.
SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS
6.1 Economic Feasibility
Criteria: Stage 2-4.A: The project is shown to be economically feasible (net positive savings in fuel,
operation and maintenance, and capital costs over the life of the proposed project).
6.1.1 Economic Benefit
Explain the economic 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:
Anticipated annual and lifetime fuel displacement (gallons and dollars)
Anticipated annual and lifetime revenue (based on i.e. a Proposed Power Purchase Agreement
price, RCA tariff, or cost based rate)
Additional incentives (i.e. tax credits)
Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or
programs that might be available)
The economic model used by AEA is available at
http://www.akenergyauthority.org/Programs/Renewab le-Energy-Fund/Rounds#round9. This
economic model may be used by applicants but is not required. The final benefit/cost ratio used
will be derived from the AEA model to ensure a level playing field for all applicants. If used, please
submit the model with the application.
The anticipated annual total displacement of #1 heating oil is 18,570 gallons for the Library,
Annex, City Hall and Fire Hall. Heat pumps in the Adams Street Shower House (to be
connected to ground source trunk mains in fall of 2016) will afford an additional annual
savings of 1,450 gallons of #1 heating oil. The total annual savings of #1 heating oil for this
project is anticipated to be 18,750 + 1,450 = 20,020 gallons. At the current price of
$3.02/gallon (delivered to City buildings) this would be a total annual savings to the City of
$60,461 in 2015 dollars. Over the 50 design life of the project, the savings from this project
would equate to 1,001,012 gallons of #1 heating oil with a present worth value of $4,466,560,
assuming an average annual escalation rate of heating oil price of 4.5%/year and discount
rate of 3%/year over the project life.
The heat from this system is anticipated to be used only in City buildings. The savings from
heating oil displacement is the primary driver of economic benefit anticipated, although the
possibility exists that additional heat from this system could be sold to adjacent customers
if a heat utility were established by the City in future years. A leveraging of carbon credits
as revenue from the project may also be possible in future years if a stable market price for
carbon emissions emerges in the Alaska. In the meantime, the project will serve to build
public and private investor confidence in the practice of ocean source heat pumps for
broader district heating in Seward and other Alaska coastal communities.
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6.1.2 Power Purchase/Sale
The power purchase/sale information should include the following:
Identification of potential power buyer(s)/customer(s)
Potential power purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
Identify the potential power buyer(s)/customer(s) and anticipated power purchase/sales price
range. Indicate the proposed rate of return from the grant -funded project.
No sales of power of heat are associated with this project at this time.
6.1.3 Public Benefit for Projects with Private Sector Sales
For projects that include sales of power to private sector businesses (sawmills, cruise ships, mines,
etc.), please provide a brief description of the direct and indirect public benefits derived from the
project as well as the private sector benefits and complete the table below. See section 1.6 in the
Request for Applications for more information.
N/A
Renewable energy resource availability (kWh per month)
Estimated sales (kWh)
Revenue for displacing diesel generation for use at private sector businesses ($)
Estimated sales (kWh)
Revenue for displacing diesel generation for use by the Alaskan public ($)
6.2 Financing Plan
Criteria: Stage 2-4.B: The project has an adequate financing plan for completion of the grant-
funded phase and has considered options for financing subsequent phases of the project.
6.2.1 Additional Funds
Identify the source and amount of all additional funds needed to complete the work in the phase(s)
for which REF funding is being applied in this application. Indicate whether these funds are
secured or pending future approvals. Describe the impact, if any, that the timing of additiona l
funds would have on the ability to proceed with the grant.
REF funding is being requested for design and construction phases. The City has
committed via Council Resolution of August 31 2015 a cash match of $85,000 towards the
design phase. The City has committed thru authorization of the City Manager an in-kind
labor match of $16,000 for administration cost of the City’s designated project manager, and
an in-kind labor match of $24,000 for excavation/installation of buried laterals required for
the project. These funding matches are secured and are not pending future approvals. The
funds have already been allocated and thus they will allow the design and construction
phases to proceed as required to coordinate with the availability of REF funds if an award if
made for the project.
6.2.2 Financing opportunities/limitations
If the proposed project includes final design or construction phases, what are your opportunities
and/or limitations to fund this project with a loan, bonds, or other financing options?
No limitations to fund the City’s portion of match funding currently exists as the funds have
already been allocated by Council Resolution and City Manager authorization.
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6.2.2 Cost Overruns
Describe the plan to cover potential cost increases or shortfalls in funding.
The project budget, as described as ALT B in the attached Economic Evaluation, includes a
contingency equal to 10% of the estimated construction cost of the project. Unanticipated
project cost overages that might exceed the planned contingency could be covered from
the City’s general fund upon approval by the City Council.
6.2.3 Subsequent Phases
If subsequent phases are required beyond the phases being applied for in this application,
describe the anticipated sources of funding and the likelihood of receipt of those funds.
This project does anticipate including the heat load associated with the new City owned and
operated campground shower house. The construction cost of the new Adams Street
Shower House and its connection to the ground source heat pump system described herein
is a scope not included in this application. Its construction is anticipated to be as early as
the fall of 2016 and will be a project undertaken by the Parks & Recreation Department of
the City. The project currently has favorable consideration of the City Council and is viewed
as a self-evident addition to the waterfront ground source loop system. By using heat
pumps for both space heating and hot water heating in the new shower house, the City will
be afforded significant year round cost savings over in comparison to the use of oil boiler
or straight electric heat for this facility. The shower house project will increase public
benefit to the thousands of campers and visitors to the City waterfront each summer.
6.3 Other Public Benefit
Criteria: Stage 3-4.C: Other benefits to the Alaska public are demonstrated. Avoided costs alone
will not be presumed to be in the best interest of the public.
Describe the non-economic public benefits to Alaskans over the lifetime of the project. For the
purpose of evaluating this criterion, public benefits are those benefits that would be considered
unique to a given project and not generic to any renewable resource. For example, decreased
greenhouse gas emission, stable pricing of fuel source, won’t be considered under this category.
Some examples of other public benefits include:
The project will result in developing infrastructure (roads, trails, etc.) that can be used for
other purposes
The project will result in a direct long-term increase in jobs (operating, supplying fuel, etc.)
The project will solve other problems for the community (waste disposal, food security, etc.)
The project will generate useful information that could be used by the public in other parts
of the state
The project will promote or sustain long-term commercial economic development for the
community
This ground source heat pump project is essentially the first ocean source district heat
project undertaken in Alaska. Thus the evolution and development of innovative
technology and construction methods unique to this project will serve as a path forward for
future district heat projects in areas of coastal Alaska that have ice free bays, low to
moderate cost electricity, heating oil usage, and clusters of closely spaced buildings that
are heated thru the sub-arctic winter.
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The project will serve to employ the City Project Manager part time thru the design,
construction, and thru the design life of the project. Any future expansion of ocean source
district heat by the City will increase the employment potential for City employees, and
those who sell, monitor and service the heat pump system equipment included in this
project.
The project solves a problem for the community not previously solved. It demonstrates
cost effective extraction of subsurface ocean heat with waterfront ground loops that
eliminate the need for a ocean intake system and the costs and risks associated with
seawater pumping, corrosion, siltation, fouling from marine growth, storm surges and
impacts from marine mammals, subsurface debris, and boat anchors. With the large
number of buildings in Seward located on or near Resurrection Bay and its immense year
round natural heat source, the interest in tapping into this resource for lower cost space
and water heating is increasing steadily among building owners and residents alike.
Successful execution of this project will generate information useful to cities, residents, and
businesses in other parts of the state that may have a similar natural resource and energy
costs. A working system that is maintained and operated successfully by the City will
inspire confidence in other coastal towns to consider this approach and evaluate its
economic and technical merits.
The project will promote and sustain long term commercial economic development for the
community by lowering City expense over time on heat energy costs. If district heat were
expanded to serve the downtown businesses, the winter heat costs that now force many to
close or reduce hours and employment could be mitigated by a more stable and lower cost
source of heat. This is also true for the schools, swimming pool, community center and
other buildings that provide an increased quality of life for residents and business es.
Residential buildings that spend less money on heating costs will have more money to
spend in the local economy.
SECTION 7 – SUSTAINABILITY
Describe your plan for operating the completed project so that it will be sustainable throughout its
economic life.
Include at a minimum:
Capability of the Applicant to demonstrate the capacity, both administratively and financially, to
provide for the long-term operation and maintenance of the proposed project
Is the Applicant current on all loans and required reporting to state and federal agencies?
Likelihood of the resource being available over the life of the project
Likelihood of a sufficient market for energy produced over the life of the project
The City currently operates and maintains multiple facilities with elements similar to those
making up the proposed project. City staff routinely works with pumps, underground
utilities, hydronic heating systems, electrical components and connections and other
features common to this project. City administrative offices provide budget, financial,
payroll, purchasing, accounts receivable and payable, and all other financial and
accounting services to the utilities and the general fund services of the City. The Finance
Department consistently receives a Certificate of Excellence in Financial Reporting, issued
by the Government Financial Officers Association.
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The project economic analysis includes present worth cost of $125,000 for replacement of
all heat pumps and loop pumps at year 25. Because the capacity factor is 34% and the
running hours of heat pump units will be kept even, this expectation of useful operating life
is reasonable given that large buffer tanks are included to eliminate short cycle operation of
the heat pumps.
The source of energy for this project is as sustainable and predictable as the Alaska
Current and the ocean tides, and the 50 year design life of the proposed system aligns with
the need into the foreseeable future for the existence of the publicly owned facilities served.
SECTION 8 – PROJECT READINESS
Describe what you have done to prepare for this award and how quickly you intend to proceed with
work once your grant is approved.
Specifically address your progress towards or readiness to begin, at a minimum, the following:
The phase(s) that must be completed prior to beginning the phase(s) proposed in this
application
The phase(s) proposed in this application
Obtaining all necessary permits
Securing land access and use for the project
Procuring all necessary equipment and materials
Improving the thermal energy efficiency of the building(s) to be served by the heat project
The Recon Phase of this project, completed in August 2015, was installing a test borehole
to determine thermal conductivity and temperatures of ground water present in the 300 ft
deep alluvial gravel along the waterfront ($24,999). The Feasibility Phase of this project,
completed in September 2015, was an Economic Evaluation ($48,000) of the ground source
heat pump system that incorporated the results of the test borehole data collection. The
Evaluation also presented preliminary vertical loop design, borehole field location, trunk
main and lateral alignment routes, schematic of piping and mechanical equipment, and
scope of integration into existing buildings. Heat loads of the existing building were
evaluated, trunk main sizes were estimated, and heat pump and buffer tank capacities were
estimated. A detailed Opinion of Probable Cost was also included.
Readiness toward the upcoming Design and Construction Phases: The City’s Project
Manager will facilitate the tasks required for these phases in the event that a grant award is
expected. Because the City cash contribution ($85,000) will cover all of the design phase
work, it is anticipated that this work could start as early as March 2016, so that the
construction phase can start in August when a grant agreement with AEA is expected to be
in place. The City has also committed a $24,000 in-kind match in the form of excavation
crew and excavator for the installation of laterals in the construction phase.
The permits that will be required for the project are from the City Building Department for
mechanical, electrical, and seismic work inside the buildings. These permits can be
obtained typically with 14 days of submittal of completed design documents.
The City owns all land and R.O.W.s in the project area. Both the Public Works and Parks &
Recreation Departments of the City are familiar with the scope of the project and have
written a Letter of Support on behalf of the project (attached).
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All equipment and materials needed for the project will be procured by the successful
contractor after the construction contract is awarded. The City will provide in-kind match of
excavation crew ($14,000) and excavator ($10,000) to construct laterals to the buildings; the
labor crew and excavator required are already present in the Public Works Department.
The City has recently improved the energy efficiency of the structures to be served by this
project as follows:
Annex building (8,192 SQFT). Exterior walls furred out with 1 ½ Styrofoam and
resided. All windows (Single pane) replaced with vinyl double pane gas filled
windows. Improvements were completed as of 2010.
City Hall (20,532 SQFT) original 1960’s cast iron boiler replaced with an Energy
Kinetic system 2000 EK-3 oil boiler.
Fire Hall (7,262 SQFT) 18 single pane wood frame windows replaced in 2011 with
triple pane vinyl windows. An old (1963) very inefficient and oversized basement air
handling unit was replaced in 2013 with an much smaller HRV sized properly for the
SQFT served.
New Library (24,323 SQFT) built in 2012: many efforts for envelope efficiency during
building planning stages resulted in R-28 exterior walls as well as in-floor heat,
which have made this building an ideal candidate for the proposed renewable
heating system.
No permits for this project are required from other agencies, and the City complies with
applicable City permit requirements in every case. The lands, buildings and rights of way
used for and served by the project are owned by the City and available for the project. All
materials and equipment not provided by the City will be through procured through the
competitive process as required by Code and Statute.
SECTION 9 – LOCAL SUPPORT AND OPPOSITION
Describe local support and opposition, known or anticipated, for the project. Include letters,
resolutions, 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
7, 2015
City Council Resolution of August 31, 2015 is attached. Letters of Support are attached as
follows:
Letter of Support from Public Works Director, City of Seward
Letter of Support from Parks & Rec Director, City of Seward
Letter of Support from CEO of the Alaska SeaLife Center
Letter of Support from Executive Director of AVTEC Seward
There have been no known documented or observed expressions of public opposition to
this project as of the date of this application. News stories that document the public
support for the project as it evolved are attached as follows:
June 1, 2014 – Seward City News
December 12, 2014 – Seward City News
July 27, 2015 – Seward City News
September 2, 2015 – Alaska Dispatch News
September 8, 2015 – Alaska Public Radio Network
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 26 of 29 7/8/15
September 13, 2015 – Seward City News
SECTION 10 – COMPLIANCE WITH OTHER AWARDS
Identify other grants that may have been previously awarded to the Applicant by the Authority for
this or any other project. Describe the degree you have been able to meet the requirements of
previous grants including project deadlines, reporting, and information requests.
ARRA – Alaska Energy Authority grant for energy efficiency and conservation – CY2009 =
$115,800 grant. Of this, $6,358 was spent in 2009, $8,421 was spent in 2010; $46,724 was
spent in 2011, $36,387 was spent in 2012.
Alaska Energy Authority REF Round III – Sealife Center Heat Pump Project - $286,580 grant,
spent according to the following schedule: $113,645 in 2010; $153,399 in 2011; $19,536 in
2012.
The project deadlines, reporting and information requests for the above projects were met
by the City of Seward.
SECTION 11 – LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES
In the space below please provide a list additional documents attached to support completion of
prior phases.
Invoice to City for $18,000 for installation of new energy efficient windows and doors in the
FireHall in 2011.
Invoice to City for $6,322 for installation of new HRV in the Fire Hall in 2014.
Invoice to City for $8,175 for installation of new energy efficient oil boiler in City Hall.
Recon Phase - Invoice to City of $24,999 from Denali Drilling for installation of thermal
conductivity test well in August 2015.
Feasibility Phase – Resolution 2014-103 from City Council authorizing $48,000 for
professional engineering services to complete Economic Evaluation. Invoice to City for
$40,200 and $7,800 from YourCleanEnergy LLC for this work effort.
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below please provide a list of additional information submitted for consideration
Economic Evaluation of Ground Source Heat Pump System completed September 12 by
YourCleanEnergyLLC.
RCA Certificate Of Public Convenience & Necessity – Seward Electric Utility
Invoice from ShoreSide Petroleum for August 5 2015 heating fuel delivery to City bldgs =
$3.02/gallon.
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 27 of 29 7/8/15
Invoice from City Electric Department to City Finance Department for electricity sold to City
Hall in August 2015 @$0.184/KWH.
Concept floor plan of Adams Street Shower House planned for construction in fall of 2016
by Parks & Recreation Department.
SECTION 13 – AUTHORIZED SIGNERS FORM (see attached signed pages)
Community/Grantee Name:
Regular Election is held:
Date:
Authorized Grant Signer(s):
Printed Name Title Term Signature
I authorize the above person(s) to sign Grant Documents:
(Must be authorized below by the highest ranking organization/community/municipal
official)
Printed Name Title Term Signature
Grantee Contact Information:
Mailing Address:
Phone Number:
Fax Number:
E-mail Address:
Federal Tax ID #:
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 28 of 29 7/8/15
Please submit an updated form whenever there is a change to the above information.
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 29 of 29 7/8/15
SECTION 14 – 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 9.
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
Signature
Title
Date