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HomeMy WebLinkAboutKlawock Alaska Energy Application Round IVRenewable Energy Fund Round IX Grant Application-Heat Projects Application Forms and Instructions -'j A' AQJfA p I~ ENERGY AUTHORITY 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 1 07.605(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. AEA 15003 Page 1 of28 7/8/15 Renewable Energy Fund Round IX Grant Application -Heat Projects -AI A,'i!Z'Lt j -;ENERGY AUTHORITY • 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. AEA 15003 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. Page 2 of28 7/8/15 Renewable Energy Fund Round IX Grant Application-Heat Projects ··~A' a.sw ·a I~ ENERGY AUTHORITY Tax 10 # Tax Status: 0 For-profit D Non-profit X Government (check one) Date of last financial statement audit: 11/3/14 Mailin Address: PO Box 9 Klawock, AK 99925 Klawock, AK 99925 Mailing Address: PO Box 9 Klawock, AK 99925 1.1.1 APPLICANT SIGNATORY AUTHORITY CONTACT INFORMATION I Name: Jim Holien Title: Superintendent Mailing Address: PO Box 9 Klawock, AK 99925 Telephone: Fax: Email: 907-755-2917 907-755-2320 Jim.holien@klawockschool.com 111 2 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: Yodean Armour 907-755-2220 907-755-Y odean.armour@klawockschool.com 2329 1.2 APPLICANT MINIMUM REQUIREMENTS . · .. Please che¢k as appropriate. If you d.o not to meet the minimum applicant requirern~nts, .your application will be rejected. .• . . ·.• "-• ·. · >· ... • · AEA 15003 Page 3 of28 7/8/15 ·. Renewable Energy Fund Round IX Grant Application-Heat Projects 11.2.1 As an Applicant, we are: (put an X in the appropriate box) D An electric utility holding a certificate of public convenience and necessity under AS 42.05, or D An independent power producer in accordance with 3 AAC 107.695 (a) (1), or D A local government, or X 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 htt[!://www.akenergl(authority.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) AEA 15003 Page 4 of28 7/8/15 Renewable Energy Fund Round IX Grant Application -Heat Projects Klawock School Biomass Fuel Boiler Project 2.2 Project Location - 1-'. AI AB'"t. ~ 7 · il'i -=>ENERGY AUTHORITY Include the physical location ofyour project and name(s) of the community or communities that will benefit from 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 Goog/e 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. 55-33-11.92 N 133-05-57.27 w 715 Bayview Blvd Klawock, AK 99925 2.2.2 Community benefiting -Name(s) of the community or communities that will be the beneficiaries of the Klawock is the primary city and would be the location of the project. However, it would be good for the island as a whole. Additionally, we have students from many of cities on POW that attend Klawock School and those students would be benefitted as well. 2.3 PROJECT TYPE Put X in boxes as appropriate I 2.3.1 Renewable Resource Type I D Wind to Heat X Biomass or Biofuels I D Hydro to Heat 0 Solar Thermal D Heat Recovery from Existing Sources 0 Heat Pumps D Other (Describe) I 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction 0 Reconnaissance X Final Design and Permitting AEA 15003 Page 5 of28 7/8/15 Renewable Energy Fund Round IX Grant Application -Heat Projects ·-J:J.I~"A I .. Lmd\J~ stt ~ENERGY AUTHORITY Feasibility and Conceptual Design X Construction and Commissioning AEA 15003 Page 6 of28 7/8/15 Renewable Energy Fund Round IX Grant Application -Heat Projects : .J A I A@Bit' ., I-=: ENERGY AUTHORITY 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed heat project. This project will install a wood fired (proposed dried chips) boiler to heat the two main school buildings. This wood boiler will connect to the existing system and drastically reduce diesel fuel consumption. The gymnasium boiler will be decommissioned and the existing main building boilers will be used only during peak heating needs and I or as a backup system. 2.5 Scope of Work . . .· ·•· ·. •.·· ••· ···•···. Provide a scope of work detailing the tasks to be performed underthisfunding request. This should include work paid for by grant funds and matching funds or performed as in-kind match. This request is for design, engineering, contractor, equipment, construction, and inspection of project. The pre-feasibility study is complete and Klawock Schools will contribute $10,000. I SECTIOt·f3L Project Managernellt, Development and Operation . • 3.1 Schedule and Milestones Criteria: Stage 2-1.A: The proposedsc/Jedu/e 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. Start End Milestones Tasks Date Date Deliverables Engineering Bid Advertise and approval 1/1/16 1131/16 Equipment Bid Advertise and approval 3/1/16 3/15/16 Construction Bid Advertise and approval 3/15/16 4/1/16 Construction Complete project as planned 5/30/16 8/26/16 Inspection Verify compliance 8/29/16 9/2/16 Startup All involved in this process 9/5/16 9/6/16 AEA 15003 Page 7 of28 7/8/15 Renewable Energy Fund Round IX Grant Application-Heat Projects 3.2 Budget , , A' A-S% ·> I~ ENERGY AUTHORITY Criteria: Stage 2-1.8: 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. The overall proposed budget for this system is approximately $856,000. The pre-feasibility study is already completed ($15,000). $250,000 has been requested in CAPSIS for this year. The remaining funding is yet to be determined and that leads to this request to Renewable Energy Fund. 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, Ill. 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 Ca/fa, at scalfa@aidea.org. $ $ $111,986 $111,986 AEA 15003 Page 8 of28 7/8/15 Renewable Energy Fund Round IX Grant Application-Heat Projects J Other I~ I~ AEA 15003 Page 9 of28 I . ··~AI WBiAvt ~ENERGY AUTHORITY I ~111.986 7/8/15 Renewable Energy Fund Round IX Grant Application -Heat Projects Equipment Bid rnnotrnrtinn Bid ''ion inn " ( TOTALS Direct Labor & Travel & Per Diem ,&<:: TOTALS AEA 15003 $422,000 $ •ooa 7nn $ $ >67,870 $ $ $ $ $ $ $ $ $ $ $ $ $ $ Page 10 of28 ···~ A I A.Sii'A I ~ . w ) _., ENERGY AUTHORITY $422,000 $ $256,700 $ $ $67,870 $ $ $ 7/8/15 Renewable Energy Fund Round IX Grant Application -Heat Projects 1-=.' A I A,SJZrA -=:; %1??t -;ENERGY AUTHORITY ( _ist , base_d on ph~se 2.3 thru ~~r~~J~:~FA) sections $ $ $ TOTALS Direct Labor & Travel & PeiOieiil ;& I i r i Other TOTALS AEA 15003 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Page 11 of28 7/8/15 Renewable Energy Fund Round IX Grant Application-Heat Projects -' > . . . / <I ______ •. _ .• _ .. _ •• _-._·. __ ·...:-_-_·-_-__ -._-._-._ •. __ ·._-._·. __ -._-. __ -._·. __ -_._-.• _-•. __ .•• __ -. __ -.. -. -_. -_ T---_._-._ .. __ .,. __ ._ ·_ (. ·-·-·-·--··----. "II ·.-.•. ········T···M_;,.,:-·):·K-• [ ___ < . . . . .. -___ •---• _ .. __ . ___ ... -Grantee I . --· . _ > >' I { !.'[''t or Task >_I M~:::.~:g ~-·-··(··-··· .•...••• ···--·· ···-\ rv.To,~~S, \! I ({cf' .I.>. __ u · ---• --·••·-·----·-• ••-·• .. -.--__ . --, ~,_: ' (List• i based on phase 2 :~~~e; ~ ~~o/~Z'RFA) sections $ $ $ AEA 15003 Page 12 of28 7/8/15 Renewable Energy Fund Round IX Grant Application-Heat Projects 3.2.3 Cost Justification 1... ·.,AI A~§i)JZ:A 0 ~ENERGY AUTHORITY Indicate the source(s) of the cost estimates used for the project budget A pre-feasibility study was performed by WES Energy & Environment in August of 2014. 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 $833,556 Cash match to be provided $10,000 In-kind match to be provided $15 000 Total costs for project phase(s) covered in application (sum of above) $858,556 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 k I t d . t II wor comp1e e 1n ernaiiV. 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 $ Feasibility and Conceptual Design $ Final Design and Permitting $111,986 Construction $746,570 Total Project Costs_tsum of above) $858,556 3.2.6 Operating and Maintenance Costs (non-fuel) $7430 Estimate annual non-fuel O&M costs associated with the proposed system 3.2.7 Fuel Costs Estimate annual cost for all applicable fuel(s) needed to run the proposed system Fuel type Annual cost ($) Oil $7380 (reduction of 90% oil usage) Wood Biomass $22,560 $ AEA 15003 Page 13 of28 7/8/15 Renewable Energy Fund Round IX Grant Application -Heat Projects ' }) AI ASflj;A 3 I-=> ENERGY AUTHORITY 3.3 Project Communications Criteria:. Stage 2-1. C: The applicant's communications plan, inclucling monitoring ancl reporting, is .. · clescribed in aclequate cletail. .· ·•· · .• ·. Describe how you plan to monitor the project and keep the Authority informed of the status We will monitor this project with existing staff. We have qualified administration to oversee the project. The Superintendent will be responsible for keeping the Authority informed. The Superintendent will work closely with Klawock's Head of Maintenance and Business Manager to assure compliance and scope of work is accurate. Monthly reports will be formed (with input from the Authority) and generated by the Business Manager and those reports will be shared with the Authority. 3.4 Operational Logistics .·} .• Criteria: Stage 2-1.0: 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 theproject througl)out its lifetime and selling energy from the completed project. The primary use of this system is for our internal use in the district. Preliminary discussions have occurred with ANB/ANS and I'm confident a mutual agreement would be made rather easily. The model we anticipate using for our project will be similar to the one currently being used successfully by City of Craig and Craig Schools. They use the same wood supplier we plan to use and many of the logistics and start-up issues have already been addressed as Craig has refined their process. j:SECTION 4 "-QJ,.!ALIFICATIONS 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 2c2.8: 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 2-2.0: 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. AEA 15003 Page 14 of28 7/8/15 Renewable Energy Fund Round IX Grant Application-Heat Projects The Project Manager would be Superintendent Jim Holien. Although he has no direct formal experience, he has experience with two major renovation jobs at the school while he was the Principal. If funded, Klawock Schools would look to contract with SERRC and their Construction Management Services. Assistance from AEA would still be welcomed. 14.1.2 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 pre-feasibility survey was completed by WES Energy & Environment. They would be a valuable resource in this matter. SERRC (Don Hiley) would be a knowledgeable resource. AEA (Karen Peterson) would be another valuable resource in this matter. Maintenance Supervisor, Ken Armour, and Business Manager, Yodean Armour have been part of grant projects in the past and have knowledge of such projects. A priority will be given to engineering firms and construction companies that have experience in biomass fuel boiler systems. I 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. Klawock Schools Business Manager Yodean Armour would be the primary accountant in this project. These duties fit her day-to-day duties at the district. I 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 Grants Manager, Jim Holien, would approve all expenses to this grant. We manage many grants at the district on a daily basis and have lots of experience. Klawock Schools has not had a single finding during program audits since 2006. AEA 15003 Page 15 of28 7/8/15 Renewable Energy Fund Round IX Grant Application -Heat Projects ' ) AI Aa'hA i? j ~ENERGY AUTHORrTY 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 ldCallabor Workforce, .· Local hire will be a criteria for contractor selection and Klawock School feels this is an important factor in selecting a contractor. AEA 15003 Page 16 of28 7/8/15 Renewable Energy Fund Round IX Grant Application-Heat Projects l·sect(ON· 5 '-' TECHNICALFEASIBILITY·c.c>•· ,<>.; 5.1 Resource Availability . ·.· ·.··. 'c AI A@ffiA 7 f ~ENERGY AUTHORITY .. ···· .. •••••••• > . 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 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. Viking Lumber is located about a half mile from the proposed Klawock School location of the biomass fuel boiler. Viking has adequate resources to provide our school with biomass fuels into the foreseeable future. The anticipated biomass fuel type would be dried sawdust or wood chips. Pellets are not produced locally and would incur shipping costs. 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 We would need a permit from the fire marshal. We will consult with engineers and assure the system we install will be compliant. We have local support and City of Klawock support so obtaining any other permits (if needed) would be supported locally. 5.2 Project Site . . ••.. · . . · •••• Criteria: Stage 2-3.8: 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 potentia/land ownership issues, including whether site owners have agreed to the project or how you intend to approach land owmership and access issues. The location of the boiler would be on existing property and in existing buildings. It is anticipated to be installed in our current boiler room with biomass fuel brought to it via an auger system. 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. There is little known environmental risk. Most of system would be in existing buildings and the only changes to the environment would be to build an area in which to park the trailers used to transport the biomass fuel. AEA 15003 Page 17 of28 7/8/15 Renewable Energy Fund Round IX Grant Application -Heat Projects 1--~. AI A£JZ>A ~) AiSC'h ~ENERGY AUTHORITY Technical Risks: Engineering a system that will effectively and automatically transport biomass fuel to the boiler in the boiler room. Additionally, connecting the main school building to the gymnasium. 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 No environmental concerns known. The only planned alteration would be a parking area for the trailer. 5.4 Existing and Proposed Energy System Cn1eria: Stage 2-3.0: 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. Klawock School has two oil fired boilers in the main school building. They were new in 2001. One oil fired boiler in the gym. It was new in 1999. a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other 4 ii. Rated capacity of generators/boilers/other 943,000 each (main) and 704,000 each (gym) iii. Generator/boilers/other type Weil Mclain model 88 iv. Age of generators/boilers/other main new in 2001, gym new in 1999 v. Efficiency of generators/boilers/other vi. is there heat recovery and is it operational? b) Annual O&M cost i. Annual O&M cost for labor ii. Annual O&M cost for non-labor c) Annual electricity production and fuel usage (fill in as applicable) i. Electricity [kWh] ii. Fuel usage Diesel [gal] AEA 15003 Page 18 of28 7/8/15 Renewable Energy Fund Round IX Grant Application-Heat Projects 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] 18,000 gal ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other AEA 15003 Page 19 of28 '' -:J AI fflfZA 2 I~ ENERGY AUTHORITY 7/8/15 Renewable Energy Fund Round IX Grant Application-Heat Projects ·· .. ··.·.AI W@ 2 I~ ENERGY AUTHORITY 5.4.2 Future Trends Describe the anticipated energy demand in the community over the life of the project. I do not anticipate increased energy demands at this time. However, fuel prices are inconsistent which makes budgeting difficult. Biomass supplies are strong and would be much more consistent making budgeting much easier on the district. 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. I No impact expected. 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 Option 2A (in prefeasibility survey) consists of a 500,000 BTU unit with a 1000 gallon thermal storage tank that is connected to both the main building and gymnasium. This unit will cover all heating requirements of both buildings 91% of the time. The peak times would be supplemented with existing boilers in the main building. The gymnasium boilers would be decommissioned. Currently the two buildings are not connected so thermal piping would have to connect the buildings (and the ANBIANS hall if connected). Both buildings currently have water systems so integration will be simply connecting them. Delivery methods: Thermal pipe to deliver heated water. Fuel (wood) would be delivered via truck and automated auger system would deliver fuel to the boiler. Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, 500,000 btus Hydro, Biomass, other) [kW or MMBtulhr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii. Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] AEA 15003 Page 20 of28 718/15 Renewable Energy Fund Round IX Grant Application-Heat Projects ii. Coal [tons or MMBtu] ··· .,, AI A·SJZ;A 3 I~ ENERGY AUTHORITY iii. Wood or pellets [cords, green tons, dry tons] Proposed $22,500 annually iv. Other 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. We have a reporting system already in place. We record and monitor our fuel and heating costs and can compare years to see actual savings. Additionally, we have an existing maintenance plan that would include this system. It would be anticipated that the proposed system will have a metering measure built into the system. We contract SERRC services to help maintain our computer program and keep our maintenance records up to date. AEA 15003 Page 21 of28 7/8/15 Renewable Energy Fund Round IX Grant Application-Heat Projects f SECTION 6-ECONOMIC FEASIBiliT¥AND BENEFITS ·. 6.1 Economic Feasibility Criteria: Stage 2-4.A: The project is shown to be economically feasible (net positive savings in fulf!l, operation I!Jnd maintenance, and capital costs over the life ofthe 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 httQ:i/www.akenergyauthority.org/Programs/Renewable-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. It's estimated that annual fuel costs will be reduced by $66,420. Biomass fuel costs are estimated at $22,560 and increased O&M costs are $7,430. Annual savings to the district is estimated to be $36,430. Over the period of 20 years, fuel oil consumption would be reduced by 360,000 gallons. Potential revenue streams could come from a partnership with ANB and ANS. They could pay some costs if their building is connected with our system. This would help the district while benefitted that organization at the same time. Additionally, it's possible to construct a greenhouse, which could produce food for our students. This would decrease food costs and improve food quality immensely. 6.1.2 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)/customer(s) • Potential power purchase/sales price -at a minimum indicate a price range • Proposed rate of return from grant-funded project Identify the potential power buyer(s)/customer(s) and anticipated power purchase/sales price range. Indicate the proposed rate of return from the grant-funded project. NA 6.1.3 Public Benefit for Projects with Private Sector Sales For projects that include sales of power to private sector businesses (sawmills, cruise ships, mines, etc.), please provide a brief description of the direct and indirect public benefits derived from the AEA 15003 Page 22 of28 7/8/15 Renewable Energy Fund Round IX Grant Application -Heat Projects ':·-'. A I A£" A I ~) . 'WI ·p _,; ENERGY AUTHORITY project as well as the private sector benefits and complete the table below. See section 1.6 in the Request for Applications for more information. The biomass fuel would be purchased locally. This will have a positive impact on our community. Renewable energy resource availability (kWh per month) Estimated sales (kWh) Revenue for displacing diesel Qeneration for use at private sector businesses ($) Estimated sales (kWh) Revenue for displacing diesel generation for use by the Alaskan public ($) 6.2 Financing Plan Criteria: Stage 2-4.8: The project has an adequate financing plan for completion of the grant- funded phase and has considered options for financing subsequentphases 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 additional funds would have on the ability to proceed with the grant. The pre-feasibility study has already been completed (valued at $15,000). Funds have been requested via CAPS IS from Alaska Legislature. District will contribute up to $10,000 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? Klawock is a community that struggles with financial issues. Seventy five percent of the students qualify for free and reduced lunches and illustrates the hardships in our community. Klawock School is faced with reduced budgets and to take on more financial burden (loans), it would negatively impact the programs we provide to our students. 6.2.2 Cost Overruns Describe the plan to cover potential cost increases or shortfalls in funding. If this situation arose, we would look at using limited district funds as well as look for financial support from the City of Klawock. The school district is apprehensive of the idea of loans as the district's budget is tight and to assume any more liabilities could have very negative impacts on our programs for our students. 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. AEA 15003 Page 23 of28 7/8/15 Renewable Energy Fund Round IX Grant Application -Heat Projects I -.. A 'r 48'6iA ~ENERGY AUTHORITY 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: o The project will result in developing infrastructure (roads, trails, etc.) that can be used for other purposes o The project will result in a direct long-term increase in jobs (operating, supplying fuel, etc.) o The project will solve other problems for the community (waste disposal, food security, etc.) o The project will generate useful information that could be used by the public in other parts of the state o The project will promote or sustain long-term commercial economic development for the community The community of Klawock and the general public will see many positive impacts from this project. Partnering with ANB/ANS would be a huge benefit in our community. The ANB/ANS has deep roots in Klawock, Alaska and this historic building will benefit. The organization struggles with costs to heat so partnering with us on this project will allow them to use money to restore and improve their building. The use of local wood products will ensure employment and will positively impact our economy. Finally, this project would open the door to a school-operated green house. This has been proven to work and it would not only have financial benefits to our district, but health benefits for our students. AEA 15003 Page 24 of28 7/8/15 Renewable Energy Fund Round IX Grant Application-Heat Projects I ') AI AS& 2 --;ENERGY AUTHORITY This new system would be fully integrated into our day-to-day operations. We currently have a very robust system in place to sustain our equipment and this would be added into that system. We have a good track record and have proven to effectively maintain our equipment and systems. The forestry industry on the island is sustainable. The biomass fuel should be a very consistent fuel source for this project for many years. We have completed a pre-feasibility survey. We've identified and have sufficient room on our existing property. The building infrastructure is in place and will connect relatively simply to the new system. The main school building had a major renovation in 2010. The main upgrades during that renovation were new and efficient lighting and new windows. Our building is much more efficient after this renovation. Additionally, the gymnasium building had some major improvements in 2012. This consisted of foundational work, a new gym floor, and roof improvements, which make it a more efficient building too . . SECTION.~'+ I..OCAL. SUPPOR.TAt4D OPPOSITION · Describelg(;;!lsupport·and opposi.tip~.l<nown or anticipatea.fJI"t~e.projectlnci€CIIIiilltwFs. ··•········•···· resolutionso'orother documentatiortpflocal. supportfrolllt!"l~c9rnmunity.thafwPI.II.<:f:l;>enefiffrorl) this proje(;t• The Documentation of support must•be dat(!d \1/~IJIIl•one year of the Rff~d.t~te ofJ1.dy · · ·. 7;2015;· .•.. · ... .. . . ... . . . . .·... .. . . . I See attached letters and resolution. AEA 15003 Page 25 of28 7/8/15 Renewable Energy Fund Round IX Grant Application -Heat Projects The pre-feasibility survey was done as part of a grant. We fulfilled the requirements of that grant and the whole process was timely and went smoothly. See attached Pre-Feasibility Study Resumes: Maintenance Director-Ken Armour, Business Manager-Yodean Armour, and Project Director-Jim Holien Letters of Support: Sealaska, Klawock ANB, Klawock ANS, City of Klawock Resolution and meeting minutes: Klawock City School Board AEA 15003 Page 26 of28 7/8/15 Renewable E nergy Fund Round IX / Grant Application-Heat Projects I SECTION 13-AUTHORIZED SIGNERS FORM Community/Grantee Name: Klawock Ci ty School District Regular Election i s held: first Tuesday in October I Date: 10/6/15 I Authorized Grant Signer(s): Pri nted Name Title Term "s·g,.~ture Jim Holien Superintendent f\~ ~ v 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 Jim Holien Superintendent v I Grantee Contact Information: Mailing Address: PO Box 9 Klawock , AK 99925 Phone Number: (907) 755-291 7 Fax Number: (907) 755 -2320 E-ma i l Address: Jim . holien@klawockschool . com Federal Tax ID #: 92-6000105 Please submi t an updated form whenever there is a change to the above information. AEA 15 003 Page 27 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application -Heat Projects EN ERGY AUTHORITY SECTION 14-ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact informat ion 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 as ke d to provide resumes s ubm itted with applications in sepa rate electronic documents if the individua ls do not want their resum es posted to the proj ect web s ite . 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 RF A Section 1.4 that: Commits the organization to provide the matching resources for project at the match amounts indi cated 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 electroni c version of the entire application on CO 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 J im H olien • Signature ~ ;~ ~ Title Superinte'rl'dent I I Date i/ts/t> AEA 15003 Page 28 of 28 7/8/15 9/9/2014 Jim Holien Klawock School District Re: Sealaska Support for Biomass Heating at the Klawock School Dear Mr. Holien: I am writing this letter to support the Klawock School District's effort to heat the school with biomass. This will not only create a cost savings to the District but will create local employment and community benefits through the use oflocally available resources. Sealaska is a Native institution owned by more than 21,000 tribal member shareholders whose core cultural values guide all that Sealaska does and represent the rich heritage of our Tlingit, Haida and Tsimshian people. As the largest private landowner in Southeast Alaska, Sealaska is the steward of our land and carries its responsibility to future generations to protect and nourish our resources. Sealaska is also a leader in habitat research, managing the land and forest resources to ensure the viability of streams, soil and wildlife. Our land is one of our most precious assets, and Sealaska is committed to maintaining and developing it responsibly. Please contact me at 907-586-9275 if I can be of any further assistance. Natural Resour s Manager Sealaska Corporation Sealaska • One Sealaska Plaza, Suite 400, Juneau, Alaska 99801-1276 • Tel: 907.586.1512 • Fax: 907.586.2304 PO Box469 Klawock AK 99925 September 11, 2015 CITY OF KLAWOCK ALASKA "Site of the First Salmon Cannery in Alaska" To Whom It May Concern: Phone# (907)755-2261 (907)755-2262 Fax# (907)755-2403 On behalf of the City of Klawock, I am writing this letter to lend our support to the efforts of the Klawock City School District to secure funding for installation of a wood burning boiler system . The Klawock School, as in many rural Alaskan cities, is the center of community activity serving as a meeting place for the community and for all school activities . The community takes pride in the accomplishments of our students, whether it be cheering for our kids at the basketball games or applauding our children's achievements academ ically . As a 'City School District', the Klawock City School District submits its budget each year to the Klawock City Council. It is very clear that the cost to heat the buildings (classroom s, gym , etc.) has skyrocketed. We also provide funding to the district via a ded ica ted sales tax and local contribution. It is i mportant to our community that the funds provided to the sc hoo l are maximized to provide a well-rounded education to our children . An efficient wood burning boiler system will allow the school to budget more funds for actually educating students instead of heating the buildings. In addition, it is our understanding that the boiler system will be tied into heating the ANB Hall , which sits adjacent to the school. This will again help meet the needs of our commun ity. Sincerely, Mayor City of Klawock Irving Langmaid President Klawock Alaska Native Brotherhood Klawock, AK To Whom It May Concern: September 10, 2015 The Klawock City School District is pursuing funding to install a wood burning boiler system to heat their school buildings. This letter is to express the Klawock Alaska Native Brotherhood's (ANB) support of those efforts. Our ANB Hall is located adjacent to the school and will directly benefit from the wood burning boiler system as our building will be tied into the system for heating of our facility. Costs of heating the ANB Hall are extremely high and prohibit the use of the building on many occasions. It takes a number of hours to heat the building for just a couple of hours of use. Many groups who would like to use the building for various events find the heating costs simply too high and go elsewhere to hold their activities. The ANB Hall is centrally located and ideal for holding community meetings as well as funerals and other events, but over the years the use has declined as fuel costs have increased. Being tied into the Klawock City School District's wood burning boiler system would revitalize the community's traditional use of the ANB Hall. We appreciate the opportunity to partner with the Klawock City School District in bringing an efficient heating system to our facilities. Sincerely, A-~ Irving Langmaid Klawock ANB President Lisa George President Klawock Alaska Native Sisterhood Klawock, AK To Whom l May Concern: September 11.2015 This letter is to express the Klawock Alaska Native Sisterhood's (ANS) support of the Klawock City School District's efforts to pursue funding for a wood burning boiler. Our ANB I ABS Hall is situated next to the school and our heating system will be incorporated into the wood burning boiler system at the school. Our costs to heat the ANB I ANS Hall are huge and often prevent the use of the building by our ANB I ANS Camp as well as other groups. k literal~takes most of the day to heat the building for just a couple of hours of use. Many groups that would like to use the building for various events decide to take their activities elsewhere simply because the heating costs are too high. Our ANS does a lot of fundraising but we cannot cover the cost of heating the building. Traditionally the ANB Hall. because of its central location, has been ideal for holding community meetings, memorial services, funerals and other events, but over the years the use has drastically diminished as fuel costs have increased. Being tied into the Klawock City School District's wood burning boiler system would breathe life back into the community's traditional use ofthe ANB Hall. We appreciatetheopportunitytowork with the KlawockCtty School District in bringing an efficient heating system to both of our facilities ~cerely, /(\I ~-1 ( r\ isa G•eorge ' Klawock ANS ident Whereas Klawock City School District P.O . Box 9 Klawoc k , Alaska 99925 907 -755-2220 F ax : 907-755-2913 Jim Ho li en Superintendent Resolution 2015-1 Ke lli Larson K -12 Principa l Support for Wood Boiler Heating System The Klawock City School District looks to effectively use district funds to best meet the needs of its students . School funding is becoming increasingly difficult to obtain so spending our monies efficiently is important. The district can save considerable money each year by utilizing local wood resources to heat its facilities and provide hot water; Whereas The Klawock City School District Board of Education supports converting from current fuel oi l boilers to a more cost efficient wood boiler system; Therefore Be It Resolved The Klawock City School District Board of Education supports efforts to obtain funding for a new boiler system. This board recognizes the positive impacts this system would have on the finances ofthe district, which leads to positive impacts on KCSD students. Karen Cleary Board President Date M E ET ING TOMORROW'S C HALLENGES TODAY www .k lawockschool .com Klawock City School District School Board Meeting Conference Room January 27, 2015 SPM I. CALL TO ORDER, ROLL CALL, VERIFY QUORUM, PLEDGE, READING OF MISSION STATEMENT Karen Cleary called the meeting to order at 5 PM. Roll Call Karen Cleary Yes Mary Edenshaw Yes Lisa George Yes JeffNickerson Yes Ruby Smith No Quorum Present Also Present: Supt. Jim Holien, Val Steward, Yodean Armour, Kelli Larson, Laura Steward, Jodi Mar, Corby Weyhmiller, Eliana Rubio, Taya Marvin-Looney, and Mike Cleary Eliana Rubio read the Mission Statement. II. APPROVAL OF AGENDA Mary Edenshaw made a motion, seconded by Lisa George, to approve the agenda with the addition of Action Item F-Acceptance of Resignations letters of Jason England and Samantha Morgan. Motion Carried. III. PUBLIC COMMENT (Related to Agenda Items) None IV. REPORTS A. Student Report-Middle School Trip The Middle School students, represented by Eliana Rubio and Taya Marvin- Looney, along with teachers Corby Weyhmiller and Jodi Mar, explained their proposed trip to D.C. and fundraising plans for this year's 6'h and 7'h grade classes. There are 23 kids plus sponsors who would be part of the Explore America Program for a cost $80,000 ($2900 per student). If the group does not have two-thirds of the funds raised by December of2015 they will switch to the back-up plan of going to the State Capital in Juneau. Either way the trip scheduled for the spring of2016 will tie in with the American History curriculum slated for next year. In addition the trip and fund-raising efforts are designed to motive the students toward eligibility and leadership development. The fundraising efforts include two grant opportunities ($60,000 and $20,000) for which Ms. Mar will apply; concessions; a $10,000 raffle; and individual student scholarships thru the Explore America program. Staff will soon hold a parent meeting and move forward. B. Board The Board congratulated Lisa George and Jared Barlow on their wedding held during the recent home basketball games. C. Principal-Kelli Larson Principal Kelli Larson highlighted her Principal's Report, including a brief update regarding professional development for the new teacher evaluation system. Grades 3-10 will this week pilot the state-wide testing system on AMP It Up Day. This is a state-wide attempt to familiarize students with the new testing system prior to the spring testing window. Elizabeth Peratrovich Day is February 16. We will plan a dessert social for the elders with the theme of 'respect' during that week. D. Athletic Director-Kelli Larson I Laura Steward Laura Steward briefly discussed her written report and highlighted the AD meeting held the last two days in Juneau. The Board would like the AD's to request starting on Sunday or Monday to eliminate the open day on Sunday during the State Tournament. Yodean Armour added that we have great representatives from Region V who bring these scheduling issues to the table each year at the State level, but with little success. E. Business Manager-Yodean Armour Business Manager Yodean Armour referred to her Board report provided in the packet. She added that she will be submitting soon the district e-rate form 470, which will be posted for 28 days. F. Superintendent-Jim Holien Superintendent Jim Holien discussed his report and added the following: I) The Log Cabin duplex has just been rented meaning all rental units will be occupied beginning February I. 2) Carving shed-The Four Square Church group is very interested in donating the labor to construct a new Native Arts Building in the future. They have met with Jim. Jim will pursue donation of the materials. 3) We have received resignation letters !Tom Jason England and Samantha Morgan. We have posted the openings and it appears we may have several applicants. Interviews will occur next Wednesday. Karen Cleary indicated she could serve on the interview committee. 4) The AASB Board training with Timi Tullis will be March 23 !Tom 5 PM to 9 PM per the Board's request. Mr. Holien will convey the wishes of the Board to Ms. Tullis. 5) Mr. Holien plans to discuss with Craig Superintendent Jack Walsh the possibility of sharing a band teacher. Mr. Holien hopes to have more information regarding this and other options for discussion at the budget work session. V. CONSENT AGENDA A. Approval of Minutes of December 9, 2014 B. Approval ofVouchers C. Correspondence I. Acknowledgement of Confidential Correspondence Received: None Mary Edenshaw made a motion, seconded by Lisa George to approve the Consent Agenda as presented. Motion Carried. VI. ACTION ITEMS A. Colleen Webb Contract~ temporary contract starting 1/19/15 to 5/30115 Mary Edenshaw made a motion, seconded by Lisa George, to approve the hire of Colleen Webb from 1/19/15 to 5130115. Motion Carried. B. Spencer Beckman Contract~ Long-term Sub Contract for Corby Wehymiller 1/19/15 to 3113/15 Mary Edenshaw made a motion, seconded by Lisa George, to approve the hire of Spencer Beckman as a long-term sub from 1/19/15 to 3/13/15. Motion Carried. C. Budget Revision #3 D. Mary Edenshaw made a motion, seconded by Lisa George, to approve Budget Revision #2. Mr. Holien discussed Budget Revision #2. Revenues have increased because Foundation funding was higher than anticipated. Health insurance has been adjusted to reflect a lower percentage increase. Equipment increase is due to the copier and phone system purchase. SPED increases reflect the increase in the intensive population. Student purchases technology include replacement funding for the laptops on an annual basis. Mr. Holien indicated that if we have a draw on reserves we can re-code this line item to the Capital Projects- Technology at the end of the year. At this time we are looking at a draw on reserves of $84,000, significantly less than anticipated in the initial FY 15 budget. We have yet to receive Impact Aid monies. Impact Aid is always a moving target. Roll Call Mary Edenshaw Yes Lisa George Yes Karen Cleary Yes Jeff Nickerson Yes Motion Carried. Superintendent Contract Mary Edenshaw made a motion, seconded by Lisa George, to approve the Superintendent Contract as presented. Roll Call Mary Edenshaw Yes Lisa George Yes Karen Cleary Yes JeiTNickerson Yes Motion Carried. E. Resolution 2015-1: Support for Wood Boiler Project Lisa George made a motion, seconded by Mary Edenshaw, to approve Resolution 2015-1: Support for Wood Boiler Project. Motion Carried. F. Acceptance of Resignations letters of Jason England and Samantha Morgan. Mary Edenshaw made a motion, seconded by Lisa George, to accept the resignations letters of Jason England and Samantha Morgan. Motion Carried. VII. BOARD COMMENT A. Next Meeting Date-February 19,2015 at 5 PM with staff and budget work session immediately following. VIII. ADJOURNMENT Mary Edenshaw made a motion, seconded by Lisa George, to adjourn the meeting. Motion Carried Meeting adjourned at 6 PM High Efficiency Low Emission Wood Fired Heating System Pre-Feasibility Report August 26, 2014    Version: Final  WES Energy & Environment, LLC 902 Market Street • Meadville, PA  16335  (814) 337‐8223    Prepared for:       Klawock City School District    In Partnership  with :  Fairbanks  Economic Development CorporaƟon  Alaska Wood  Energy Development Task  Group  Prepared By:  Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska  WES Energy & Environment      Table of Contents 1.0 Executive Summary .............................................................................................................. 1  2.0 Existing Fuel Usage & Heating System ................................................................................. 2  2.1 Main Building ................................................................................................................... 2  2.2 Gymnasium ....................................................................................................................... 4  2.3 Modular Buildings ............................................................................................................ 6  2.4 Native Arts Building .......................................................................................................... 8  3.0 Forest Resource and Fuel Availability ................................................................................ 10  4.0 Proposed Biomass System Options ................................................................................... 11  4.1 Main Building Biomass System Options ......................................................................... 13  4.1.1 Option 1a : 300,000 Btu/hr Wood Pellet System ................................................... 13  4.1.2 Option 1b : 300,000 Btu/hr Dry Fuel System .......................................................... 15  4.2 Gymnasium ..................................................................................................................... 17  4.2.1 Option 2a : 510,000 Btu/hr Wood Pellet System ................................................... 18  4.2.2 Option 2b : 500,000 Btu/hr Dry Fuel System .......................................................... 19  4.3 Modular Buildings .......................................................................................................... 20  4.3.1 Option 3a : 570,000 Btu/hr Wood Pellet System ................................................... 21  4.3.2 Option 3b : 500,000 Btu/hr Dry Fuel System .......................................................... 23  4.4 Native Arts Building ........................................................................................................ 24  4.0 Benefit/Cost Analysis ......................................................................................................... 24  5.0 Conclusions & Recommendations ..................................................................................... 29  6.0 General Biomass Technology Information ........................................................................ 30  Appendix A – Conceptual Drawings  Appendix B – Capital Cost Estimates   Appendix C – 20 Year Financing at 4% APR Cash Flow Analysis  Appendix D – Sensitivity Analysis of Annual Savings to Oil and Biomass Prices  Appendix E – Alaska Department of Education & Early Development 20 Year LCCA         Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 1 of 32  1.0 EXECUTIVE SUMMARY This preliminary feasibility study evaluates options for Klawock City Schools to utilize high  efficiency low emission wood fired technologies for space heating and domestic hot water in  the Main Building, Gymnasium, Modular Buildings, and Native Arts Building. Installation of a  wood fired heating system would present the Klawock City Schools with the opportunity to  reduce operating costs, utilize a renewable fuel, and keep fuel expenditures within the regional  economy.    Four buildings were evaluated for interconnection with a biomass heating system including the  Main Building, Gymnasium, Modular Buildings, and Native Arts Building.  Figure 1 shows an  aerial picture of the school identifying the buildings considered in this report.    Figure 1 – Aerial View of Klawock City School District  Image source: Bing Maps    The Native Arts Building is planned  for replacement in the near future and is not considered as  a viable option for interconnection.  Two biomass boiler technologies including wood pellet and  dry fuel (dry sawdust, dry wood chips, or wood pellets) systems were considered for each of the  three remaining building combinations.  Dry sawdust is the best value for the dry fuel system  Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 2 of 32  and is used for generation costs and savings for this report.  A summary of the costs and  benefits for each option are listed in Table ES1.  Table ES1 – Cost and Benefit Summary  Option Estimated  Capital Cost  1st Year Net  Annual  Operating  Savings  Simple  Payback,  Years  20 Year Net  Present  Value  20 Year  B/C Ratio  1a – Main Building Wood Pellet  System $297,781 $8,056 37.0 ($115,801) 0.61   1b – Main Building Dry Sawdust  System $721,493 $23,540 30.6 ($240,194) 0.67   2a – Main Building & Gymnasium  Wood Pellet System $420,929 $11,326 37.2 ($162,675) 0.61   2b – Main Building & Gymnasium  Dry Sawdust System $858,556 $36,430 23.6 ($114,859) 0.87   3a – Main Building, Gymnasium, &  Modulars Wood Pellet System $573,994 $10,778 53.3 ($322,974) 0.44   3b – Main Building, Gymnasium, &  Modulars Dry Sawdust System $983,791 $39,834 24.7 ($170,769) 0.83    Notes:  1 – Net Annual Operating Savings include costs for wood fuel, supplemental fossil fuel, and operation &  maintenance (O&M) costs.  2 – 20 Year Net Present Value takes the present value of the operating savings over 20 years with annual inflations  of 3.3% for oil and 3.0% for remaining O&M costs and the initial capital outlay of the total project cost using a  discount rate of 3.0% as published in the “Energy Price Indices and Discount Factors for Life‐Cycle Cost Analysis ‐ 2013”. A value greater than zero means that savings are greater than expenses over 20 years in the value of  today’s dollars.  3 – 20 Year Benefit/Cost (B/C) Ratio is calculated by dividing the present value of net annual operating savings over  a 20 year period with a discount rate of 3.0% by the Estimated Capital Cost. A value greater than 1 means the  benefits exceed the costs over a 20 year period.  2.0 EXISTING FUEL USAGE & HEATING SYSTEM The Klawock School District uses #1 fuel oil to heat buildings on the campus.  Four buildings  were evaluated during the site visit.  This section gives an overview of the fuel use and heating  systems for each of the four buildings.  2.1 MAIN BUILDING The Main Building contains most of the classrooms, library, and administration offices for the  school.  This building is 60 years old, houses 130 students, and has two floors with 32,280 ft2 of  heated floor space.   The Main Building uses approximately 12,000 gallons of #1 fuel oil annually  at an approximate price of $4.10 per gallon for an annual expenditure of $49,200 for heating  and domestic hot water.  Two above ground 550 gallon fuel oil tanks are used for onsite fuel  storage.    The Main Building has two model 88 Weil McLain hot water boilers firing on #1 fuel oil and  rated at 943,000 Btu/hr output and 50 psig.  The boilers were installed in 2001 and are in good  Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 3 of 32  condition.  The hot water heating distribution system is a primaryͲsecondary piping system.  Unit ventilators provide heating and ventilation to classrooms and are controlled by wall  mounted thermostats.  A combination of Johnson Controls pneumatics (1983 vintage) and low  voltage controls (1954 vintage) from an unknown manufacturer are installed throughout the  building and are unable to be serviced.  Domestic hot water is heated indirectly using the Weil  Mclain boilers and stored in a hot water storage tank that is boosted by electric heat when  needed.  There is potential room in the existing boiler room to locate hot water thermal storage  tanks, however the biomass boilers will likely have to be located in another location.    Fuel deliveries for calendar year (CY) 2013 are used for the purposes of load modeling and  boiler sizing in this memorandum.  The heating degree days for CY 2013 were fairly close to the  30 year average for the region.  Thus, CY 2013 weather data from Klawock, Alaska is used with  the 12,000 gallon annual fuel oil use for the purposes of load modeling and boiler sizing in this  study.  Figure 2 shows how the daily average heating demand for the Main Building would be  expected to vary over the course of a year.  During a 24Ͳhr period, the actual load will vary  above and below this average value.  Peak loads are estimated at 150% of the average load.   Peak loads would be experienced for short durations over a 24 hour period.    Figure 2 – Main Building Estimated Average Daily Heating Demand for CY 2013  Note: The daily average heating demand model is based on local weather data and annual fuel usage provided  by Klawock City School District.  Actual demand would fluctuate above and below the average heating demand  0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 Heating Demand (mmBtu/hr)Estimated Daily Average Heating Demand Estimated Daily Peak Heating Demand Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 4 of 32  values shown over a 24‐hr period.  The peak demand is estimated as 150% of the average demand and would  only be experienced for short durations over a 24 hour period.    A load duration curve was developed using the daily average heating demand curves.  Load  duration curves sort the daily average heating demand over the course of a year from highest  to lowest and plot it over the number of days to show the annual range of facility heating  demand. Figure 3 shows the estimated load duration curve for CY 2013.    Figure 3 – Main Building Estimated Load Duration Curve for CY 2013  Note: The daily average heating demand model is based on local weather data and annual fuel usage provided  by Klawock City School District.  Actual demand would fluctuate above and below the daily average heating  demand values shown over a 24‐hr period.  The peak demand is estimated as 150% of the average demand and  would only be experienced for short durations over a 24 hour period.  2.2 GYMNASIUM The Gymnasium contains the basketball court and locker rooms.  This building has 11,500 ft2 of  floor space and is 40 years old.   The Gymnasium uses approximately 6,000 gallons of #1 fuel oil  annually at an approximate price of $4.10 per gallon which results in an annual expenditure of  $24,600.  An above ground 2,000 gallon fuel oil tank is used for onsite storage.    0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 11325374961738597109121133145157169181193205217229241253265277289301313325337349361Heat Demand of Boiler Output (mmBtu/hr)Date Estimated Daily Average Heating Demand Estimated Peak Heating Demand Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 5 of 32  The gymnasium has two model 88 Weil McLain hot water boilers firing on #1 fuel oil, each rated  at 704,000 Btu/hr output and 50 psig.  The boilers were installed in 1999 and are in good  condition.  The distribution piping is connected to baseboard radiators in the locker rooms and  to air handling units for heating the gym. The piping system has one set of boiler pumps that  circulate water through the boiler and through the distribution system.  Flow and balancing of  the piping has been an issue.  Domestic hot water is heated indirectly using the heating boilers  and a storage tank that is boosted by electric heat as needed.    There is not enough room in the  existing boiler room to install a biomass boiler or thermal storage tanks.  An addition would  have to be constructed to house the biomass system or the heating system would have to be  connected to the Main Building distribution system.  Pipes are capped and abandoned in place  that used to heat the Gymnasium from the Main Building boiler system.  These pipes were  abandoned due to inadequate insulation.  These pipes are not considered for reuse in this  study. Figure 4 shows how the daily average heating demand for the Gymnasium would be  expected to vary over the course of a year.      Figure 4 – Gymnasium Estimated Average Daily Heating Demand for CY 2013  Note: The daily average heating demand model is based on local weather data and annual fuel usage provided  by Klawock City School District.  Actual demand would fluctuate above and below the daily average heating  demand values shown over a 24‐hr period.  The peak demand is estimated as 150% of the average demand and  would only be experienced for short durations over a 24 hour period.  0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 Heating Demand (mmBtu/hr)Estimated Daily Average Heating Demand Estimated Daily Peak Heating Demand Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 6 of 32    Figure 5 shows the load duration curve for the Gymnasium.    Figure 5 – Gymnasium Estimated Load Duration Curve for CY 2013  Note: The daily average heating demand model is based on local weather data and annual fuel usage provided  by Klawock City School District.  Actual demand would fluctuate above and below the daily average heating  demand values shown over a 24‐hr period.  The peak demand is estimated as 150% of the average demand and  would only be experienced for short durations over a 24 hour period.    2.3 MODULAR BUILDINGS Two 1,920 ft2 Modular Buildings were constructed in 1989 as temporary structures for  classrooms.  They each use Lennox oil fired furnaces rated at 134,000 Btu/hr input located in  closets with forced air distribution systems.  The furnaces were installed in 1989 and are well  maintained. One gallon domestic hot water heaters are located in the closets next to each  furnace. The Modular Buildings used 1,600 gallons total of #1 fuel oil annually at an  approximate price of $4.10 per gallon which results in an annual expenditure of $6,560 for  heating and DHW.  An above ground 550 gallon fuel oil tank serves both buildings.  There is not  enough room in the modular buildings to install a biomass boiler and thermal storage tanks.  An  addition would have to be constructed or heating pipes would have to be extended from the  0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 11325374961738597109121133145157169181193205217229241253265277289301313325337349361Heating Demand (mmBtu/hr)Date Estimated Daily Average Heating Demand Estimated Daily Peak Heating Demand Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 7 of 32  Main Building and hot water coils installed in the ductwork.  Figure 6 shows how the daily  average heating demand for the Modular Buildings would be expected to vary over the course  of a year.      Figure 6 – Modular Buildings Estimated Average Daily Heating Demand for CY 2013  Note: The daily average heating demand model is based on local weather data and annual fuel usage provided  by Klawock City School District.  Actual demand would fluctuate above and below the daily average heating  demand values shown over a 24‐hr period.  The peak demand is estimated as 150% of the average demand and  would only be experienced for short durations over a 24 hour period.    Figure 7 shows the load duration curve for the Modular Buildings.  0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.10 Heating Demand (mmBtu/hr)Estimated Daily Average Heating Demand Estimated Daily Peak Heating Demand Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 8 of 32    Figure 7 – Modular Buildings Estimated Load Duration Curve for CY 2013  Note: The daily average heating demand model is based on local weather data and annual fuel usage provided  by Klawock City School District.  Actual demand would fluctuate above and below the daily average heating  demand values shown over a 24‐hr period.  The peak demand is estimated as 150% of the average demand and  would only be experienced for short durations over a 24 hour period.    2.4 NATIVE ARTS BUILDING The Native Arts Building is a modular building used for carving and woodworking.  A small Toyo  fuel oil fired space heater provides building heat.  Domestic hot water is not currently available  in the building.  The Native Arts Building used 400 gallons of #1 fuel oil annually at an  approximate price of $4.10 per gallon which results in an annual expenditure of $1,640 for  space heating.  An above ground 550 gallon fuel oil tank serves the building.  The building is  planned for replacement in the near future.  There is not enough room in the Native Arts  Building to install a biomass boiler or thermal storage tanks. Figure 8 shows how the daily  average heating demand for the Native Arts Building would be expected to vary over the course  of a year.  0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.10 11325374961738597109121133145157169181193205217229241253265277289301313325337349361Heating Demand (mmBtu/hr)Date Estimated Daily Average Heating Demand Estimated Daily Peak Heating Demand Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 9 of 32    Figure 8 – Native Arts Building Estimated Average Daily Heating Demand for CY 2013  Note: The daily average heating demand model is based on local weather data and annual fuel usage provided  by Klawock City School District.  Actual demand would fluctuate above and below the daily average heating  demand values shown over a 24‐hr period.  The peak demand is estimated as 150% of the average demand and  would only be experienced for short durations over a 24 hour period.    Figure 9 shows the load duration curve for the Native Arts Building.    0.000 0.005 0.010 0.015 0.020 0.025 Heat Demand of Boiler Output (mmBtu/hr)Estimated Average Heating Demand Estimated Peak Heating Demand Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 10 of 32    Figure 9 – Native Arts Building Estimated Load Duration Curve for CY 2013  Note: The daily average heating demand model is based on local weather data and annual fuel usage provided  by Klawock City School District.  Actual demand would fluctuate above and below the daily average heating  demand values shown over a 24‐hr period.  The peak demand is estimated as 150% of the average demand and  would only be experienced for short durations over a 24 hour period.  3.0 FOREST RESOURCE AND FUEL AVAILABILITY Prince of Wales Island is heavily forested with the majority of the land owned by the US Forest  Service and smaller tracts owned by and State and private owners.  There are currently no  known forest stewardship plans in place for management.  Potential fuel suppliers were  contacted for pricing and availability of biomass fuel.  Table 1 lists the companies contacted,  location, contact information, and fuels available.  Table 1 – Contacted Fuel Supplier’s  Company Location Phone Fuels  Welcome Inn B&B Thorne Bay 907Ͳ828Ͳ3950  Palletized Split Cordwood  Viking Lumber Klawock 907Ͳ755Ͳ8880 Dry wood chips, Dry Sawdust, Wet Wood  Chips, Compressed Bricks  Tongass Forest Enterprises Ketchikan 907Ͳ617Ͳ4542 Wood Pellets    0.000 0.005 0.010 0.015 0.020 0.025 11325374961738597109121133145157169181193205217229241253265277289301313325337349361Heat Demand of Boiler Output (mmBtu/hr)Date Estimated Daily Average Heating Demand Estimated Peak Heating Demand Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 11 of 32  The biomass fuels considered for evaluation in this report are dry sawdust, dry wood chips, and  wood pellets.  Fuel prices used for evaluation are $120 per ton for dry sawdust, $260 per ton  for dry wood chips, and $330 per ton for wood pellets.  Table 2 summarizes the available fuels  for heating as well as their cost per mmBtu output comparison.    Table 2 – Fuel Pricing and Cost per mmBtu  Fuel, Unit Cost per  Unit  Input Heating  Value, mmBtu  per Unit  Estimated Boiler  Efficiency  Boiler Output  Heating Value,  mmBtu/Unit  Boiler Output  Heating Cost,  $/mmBtu  1Dry Sawdust, Ton $120.00 13.2 75% 9.9 $12.12   1Dry Wood Chip, Ton $260.00 13.2 75% 9.9 $26.26   1Wood Pellets, Ton $330.00 15.2 80% 12.16 $27.14  #1 Fuel Oil, Gallon $4.10 0.134 80% 0.1072 $38.25   Note:  1 ‐  Input heating values assumes 8% moisture content wet basis for wood pellets and 20% moisture content wet  basis for chips and sawdust with an average High Heating Value of 8,255 Btu/lb of bone dry wood based on a  mixture of Sitka Spruce(8,100 Btu/lb) and Western Hemlock (8,410 Btu/lb)1.    Dry sawdust is the lowest cost fuel per unit of energy and is therefore used in this report to  generate fuel costs and savings for the dry fuel options.  The dry fuel system would also be able  to utilize dried wood chips or wood pellets if fuel prices became more competitive in the future  or if dry sawdust became unavailable.  4.0 PROPOSED BIOMASS SYSTEM OPTIONS Options for using high efficiency low emission biomass systems were evaluated for heating the  Main Building, Gymnasium, Modular Buildings, and Native Arts Building.  There is not adequate  space to locate new wood fired heating systems in the Gymnasium, Modular Buildings, and  Native Arts Building.  Because of this each building is evaluated for interconnection with the  biomass system evaluated for the Main Building.  Preliminary pipe routing for interconnecting  buildings to determine lengths required are shown in Figure 10.                                                          1 Avery, Robert B., Funck, James W., & Wilson, Pamela L. (2010). Fuelwood Characteristics of Northwestern Conifers  and Hardwoods (updated). Portland, Or.: U.S. Department of Agriculture, Forest Service, Pacific Northwest  Research Station.  Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 12 of 32    Figure 10 – Preliminary Building Connection Piping Routes     Additional wood fuel use would be required due to heat loss through the buried distribution  pipes.  Piping heat losses are estimated and resulting wood volumes are calculated for these  losses.  Additional wood use resulting from piping heat losses are included in the total volumes  required for each option.  A summary of estimated piping heat losses and additional wood  requirements due to heat losses are provided in Table 3.              Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 13 of 32  Table 3 – District Piping Lengths, Heat Losses, and Heat Loss Fuel Use Summary  Option  Supply and  Return Total  Heating Pipe  Length, Feet  Heat Loss per  Foot, Btu/hr  per Foot  Annual Hours  of Operation Annual Heat Loss  from Piping,  mmBtu  Additional Fuel  Required for  Piping Heat Loss,  Tons/Year  1a – Main Building Wood Pellet System 240 23 6,500 35.1 2.9  1b – Main Building Dry Sawdust System 240 23 6,500 35.1 3.6  2a – Main Building & Gymnasium Wood  Pellet System 800 23 6,500 117.0 9.7  2b – Main Building & Gymnasium Dry  Sawdust System 800 23 6,500 117.0 11.9  3a – Main Building, Gymnasium, &  Modulars Wood Pellet System 1,100 23 6,500 160.9 13.3  3b – Main Building, Gymnasium, &  Modulars Dry Sawdust System 1,100 23 6,500 160.9 16.3   Note: Assumes 9 months of operation for all options.    4.1 MAIN BUILDING BIOMASS SYSTEM OPTIONS Two high efficiency low emission biomass fired boiler systems are evaluated for  interconnection with the existing heating system serving the Main Building.  Option 1a  considers a boiler system that would fire exclusively on wood pellets.  Option 1b considers a  boiler system that would fire on dried sawdust since it is the lowest cost per unit of energy.   This system could also utilize dried wood chips or wood pellets if the prices for these fuels  became more economical in the future.   4.1.1 Option 1a : 300,000 Btu/hr Wood Pellet System Two advanced combustion wood pellet boilers each sized at approximately 0.15 mmBtu/hr of  heat output would be combined with approximately 500 gallons of thermal storage to  efficiently meet the school's range of heating needs.  The rated operating range of the system  would be from ~0.05 to ~0.3 mmBtu/hr with thermal storage allowing short term peaks to be  met.  The hot water thermal storage would be heated to a preset temperature (typically 195°F  or higher) that is higher than distributed for building heat.  The thermal storage tank would use  a 3Ͳway mixing valve to blend hot water in the tank with colder return water from the school to  maintain a range of supply water temperatures (160°F – 190°F) determined by an outside air  temperature reset schedule.  The storage would allow the system to meet a 1Ͳhr peak of ~0.36 mmBtu/hr and a 15 minute  peak of ~0.54 mmBtu/hr.  The storage would also allow one boiler to operate efficiently to  provide domestic hot water heating.  The storage will hold approximately 220,000 Btu for  domestic hot water usage.  This allows one pellet boiler to fire for a period of approximately 1Ͳ ½  hours within its efficient firing range to charge the storage.  The heat in the storage is then  Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 14 of 32  used to provide domestic hot water needs, until the temperature drops to ~140oF and the  system has to fire to charge it once more.    The wood pellet boilers, metering bin, expansion tank, valves, fittings, and distribution pumps  will be factory installed in a roll off shipping container.  The container can vary depending on  the manufacturer selected, but can be a roll off shipping container or wood paneled storage  box.  A fuel storage bin capable of holding 45 tons of wood pellets will be located next to the  roll off container to accept bulk deliveries of wood pellets pneumatically or with an auger.   Wood pellets will be automatically transferred using a flexible auger or pneumatic hose from  the storage bin to a metering bin that feeds the three wood pellet boilers.  Heating distribution  pipes will be installed from the wood pellet heating plant to the existing fuel oil fired boiler  plant.  The thermal storage system will be located in the existing fuel oil boiler plant and tieͲin  with the existing hot water heating system. The existing fuel oil fired heating boilers would  remain to supplement the biomass system during periods of maintenance and if the heating  demand is outside the range of the biomass system.  Appendix A contains a conceptual site  plan, floor plan, and schematic for the biomass system. Figure 11 shows the estimated wood  pellet system coverage of the FY 2013 load duration curve.    Figure 11 – Estimated Biomass System Coverage of Load Duration Curve   Note: The load duration curve model is based on local weather data and annual fuel delivery volumes provided by  Klawock City School District.  Potential coverage of 97% is shown.  Actual coverage will depend on management of  0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 11325374961738597109121133145157169181193205217229241253265277289301313325337349361Heat Demand of Boiler Output (mmBtu/hr)Days Biomass Coverage Daily Average Heating Demand Daily Peak Heating Demand Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 15 of 32  loads and the use of thermal storage.  The system can be used as described in the text to cover approximately 100%  of the annual demand.  Management of loads, the use of thermal storage, and operations will determine actual  biomass coverage.      Figure 11 shows 97% biomass coverage of the FY 2013 load duration curve.  Actual coverage  will vary depending on weather conditions, peak demands, equipment operation schedules,  and periods when the boilers are shut down for maintenance.  This report assumes 95%  coverage of fuel oil usage for estimating the potential fuel use and savings for this  memorandum.    4.1.2 Option 1b : 300,000 Btu/hr Dry Fuel System An advanced combustion unit and hot water boiler capable of firing on dry sawdust, dry wood  chips, or wood pellets sized at approximately 300,000 Btu/hr of heat output is evaluated.  The  boiler would be combined with approximately 750 gallons of thermal storage to efficiently  meet the school's range of heating needs.  The rated operating range of the system would be  from ~0.09 to ~0.3 mmBtu/hr with thermal storage allowing short term peaks to be met.  The  storage would allow the system to meet a 1Ͳhr peak of ~0.4 mmBtu/hr and a 15 minute peak of  ~0.65 mmBtu/hr.  The storage will hold approximately 330,000 Btu for domestic hot water  usage.  This allows the boiler to fire for a period of approximately one hour within its efficient  firing range to charge the storage.  The heat in the storage is then used to provide domestic hot  water needs, until the temperature drops to ~140oF and the system has to fire to charge it once  more.    Wood chips do not convey as easily as wood pellets, require additional storage space since they  are less dense, and typically require screening to eliminate rocks and other foreign materials  from the fuel.  Site constraints of the school property limit the cost effective options available  for installing sufficient onsite fuel storage.  A silo style storage bin is not recommended for  wood chips or sawdust in an institutional setting. Since the material is not free flowing it can  bridge, freeze, or clog the outlet of the silo style bin and can be dusty or noisy to convey from  the delivery truck to the storage silo.   The storage system recommended would be two selfͲunloading walking floor tractor trailers  purchased by Klawock City Schools for use as onsite storage and for fuel delivery.  One trailer  would be “plugged in” to the fuel handling system at the school and the second trailer would be  at the sawmill or pellet plant waiting to be swapped out when needed. The storage trailer at  the school would unload out of the back to keep a small storage building (~120 ft2) filled with  dry wood chips, wood pellets, or dry sawdust.  A hydraulic rake system would pull fuel from the  bottom of the storage building onto a vibrating conveyor with a perforated holes at the end  allowing “right sized” wood fuel to fall through and oversized materials to be separated out of  the fuel stream.  The “right sized” fuel would continue on through a series of augers into a  metering bin that would feed the boiler to satisfy the heating demand of the Main Building.  The dry wood chip boiler, metering bin, valves, fittings, and distribution pumps will be factory  installed in a container.  The container can vary depending on the manufacturer selected, but  can be a roll off shipping container or wood paneled storage box.  The thermal storage tanks  could be located in the existing fuel oil fired boiler room to reduce the outdoor footprint of the  Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 16 of 32  system.  Heating distribution pipes will be installed from the wood chip heating plant to the  thermal storage tank(s) and tieͲin with the existing hot water heating system. The existing fuel  oil fired heating boilers would remain to supplement the biomass system during periods of  maintenance and if the heating demand is outside the range of the biomass system.  Appendix  A contains a conceptual site plan, floor plan, and schematic for the biomass system. Figure 12  shows the estimated wood pellet system coverage of the FY 2013 load duration curve.      Figure 12 – Estimated Biomass System Coverage of Load Duration Curve   Note: The load duration curve model is based on local weather data and annual fuel delivery volumes provided by  Klawock City School District.  Potential coverage of 92% is shown.  Actual coverage will depend on management of  loads and the use of thermal storage.        The single wood chip boiler would not be as responsive to load fluctuations as multiple smaller  pellet boilers and is sized to maximum the time spent in the efficient operating range of the  boiler.  Figure 12 shows 92% biomass coverage of the FY 2013 load duration curve as the red  shaded portion.  The existing fuel oil system will supplement the wood chip boiler during peak  loads, low loads, and during periods of maintenance.   Actual coverage will vary depending on  weather conditions, peak demands, equipment operation schedules, and periods when the  0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 11325374961738597109121133145157169181193205217229241253265277289301313325337349361Heat Demand of Boiler Output (mmBtu/hr)Days Biomass Coverage Daily Average Heating Demand Daily Peak Heating Demand Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 17 of 32  boilers are shut down for maintenance.  This report assumes 90% coverage of fuel oil usage for  estimating the potential fuel use and savings for this memorandum.  There are currently limited manufacturers who offer a boiler capable of firing with a dry wood  chip or dry sawdust in the optimal size recommended for the Main Building.  Many  manufacturers offer their smallest boiler at ~500,000 Btu/hr output.  Use of a 500,000 Btu/hr  system may result in excessive cycling during the shoulder seasons but could be mitigated  through increased thermal storage sizing.  4.2 GYMNASIUM The gymnasium is a standalone building currently using #1 fuel oil fired boilers for space  heating and domestic hot water.  There is not enough room to locate wood fired boilers in the  existing boiler room, build an addition, or install a containerized system in the vicinity of the  Gymnasium.   Because of this the Gymnasium is evaluated for interconnection with the heating  system in the Main Building if a wood fired system was installed.  All costs and savings for the  Gymnasium are estimated assuming that a wood fired system is being installed for the Main  Building.  Insulated heating pipes would be installed from the Main Building boiler room to the  Gymnasium boiler room to tie into the existing heating system.  Buried pipes that run between  the Gymnasium and the Main Building were previously abandoned in place and capped due to  inadequate insulation. This analysis assumes using new buried preͲinsulated PEX piping for  interconnection.   The oil boiler located in the Gymnasium could likely be decommissioned and removed since the  existing fuel oil boilers in the Main Building would be large enough for backup capacity for the  system.  Figure 13 shows the Gymnasium (Blue Shading) and Main Building (Green Shading)  average daily heat demand stacked on top of each other for an estimated combined heating  demand and the estimated combined daily peak demand in yellow.  Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 18 of 32      Figure 13 – Estimated Load Duration Curve for the Main Building & Gymnasium  Note: The load duration curve model shows the estimated daily average heating demands for the Main Building  and Gymnasium stacked on top of each other.  The daily peak heating demand is represented for both buildings  combined in yellow.  4.2.1 Option 2a : 510,000 Btu/hr Wood Pellet System If the Gymnasium were connected to the heating distribution system for the Main Building, the  recommended wood pellet system would have 510,000 Btu/hr of capacity and 750 gallons of  hot water thermal storage.  The biomass system would be located in the same location as  Option 1a and hot water distribution pipes would be extended from the boiler room in the  Main Building to tie into the boiler room in the Gymnasium. Three 170,000 Btu/hour advanced  combustion units and hot water boilers firing on wood pellets could be used with cascading  operation. The rated operating range of the system would be from ~0.05 to ~0.51 mmBtu/hr.  The hot water thermal storage would allow the system to meet a 1Ͳhr peak of ~0.6 mmBtu/hr  and a 15 minute peak of ~0.87 mmBtu/hr.    The storage will hold approximately 330,000 Btu for domestic hot water usage.  This allows one  boiler to fire for a period of approximately two hours within its efficient firing range to charge  the storage.  The heat in the storage is then used to provide domestic hot water needs, until  the temperature drops to ~140oF and the system has to fire to charge it once more.  Figure 14  0.00 0.20 0.40 0.60 0.80 1.00 1.20 11325374961738597109121133145157169181193205217229241253265277289301313325337349361Heat Demand of Boiler Output (mmBtu/hr)Days Main Heating Demand Gym Heating Demand Daily Peak Heating Demand Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 19 of 32  shows the potential coverage of the total combined load duration curve for the Main Building  and Gymnasium using the wood pellet system.    Figure 14 – Estimated Biomass System Coverage of Load Duration Curve   Note: The load duration curve model is based on local weather data and annual fuel delivery volumes provided by  Klawock City School District.  Potential coverage of 98% is shown.  Actual coverage will depend on management of  loads and the use of thermal storage.  The system can be used as described in the text to cover approximately 100%  of the annual demand.  Management of loads, the use of thermal storage, and operations will determine actual  biomass coverage.  Figure 14 shows 98% biomass coverage of the FY 2013 load duration curve for both buildings  combined.  Three boilers operating as a cascading system with the use of thermal storage  would allow efficient operation throughout the range of heating loads expected for the Main  Building and Gymnasium combined. Actual coverage will vary depending on weather  conditions, peak demands, equipment operation schedules, and periods when the boilers are  shut down for maintenance.  This report assumes 95% coverage of fuel oil usage for estimating  the potential fuel use and savings for the Main Building and Gymnasium combined.  4.2.2 Option 2b : 500,000 Btu/hr Dry Fuel System Option 2b would interconnect the Gymnasium with the Main Building boiler plant as described  in Option 2a and use a 500,000 Btu/hr dry fuel system with 1,000 gallons of hot water thermal  storage.  The dry fuel system location, fuel storage, and fuel handling arrangement would be  0.00 0.20 0.40 0.60 0.80 1.00 1.20 11325374961738597109121133145157169181193205217229241253265277289301313325337349361Heat Demand of Boiler Output (mmBtu/hr)Days Biomass Coverage Daily Average Heating Demand Daily Peak Heating Demand Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 20 of 32  would be identical to Option 1b.  The differences would be a larger, 500,000 Btu/hr boiler and  distribution piping interconnecting the Gymnasium.  The estimated coverage of the combined  load duration curve for both buildings is shown in Figure 15.    Figure 15 – Estimated Biomass System Coverage of Load Duration Curve   Note: The load duration curve model is based on local weather data and annual fuel delivery volumes provided by  Klawock City School District.  Potential coverage of 91% is shown.  Actual coverage will depend on management of  loads and the use of thermal storage.        Figure 15 shows 91% coverage of the FY 2013 load duration curve using the dry fuel system.   The existing fuel oil system in the Main Building boiler room will supplement the biomass  system as needed.  Actual coverage will vary depending on weather conditions, peak demands,  equipment operation schedules, and periods when the boilers are shut down for maintenance.   This report assumes 90% coverage for the dry wood chip system for estimating the potential  fuel use and savings for the Main Building and Gymnasium.  4.3 MODULAR BUILDINGS The Modular Buildings consist of two side by side buildings that each have a #1 fuel oil fired  forced air furnace for space heating and one gallon domestic hot water heaters.  There is not  enough room to locate wood fired boilers in the modular buildings, build an addition, or install  a containerized system with storage in the vicinity of the modular buildings.   Because of this  0 0.2 0.4 0.6 0.8 1 1.2 11325374961738597109121133145157169181193205217229241253265277289301313325337349361Heat Demand of Boiler Output (mmBtu/hr)Days Biomass Coverage Daily Average Heating Demand Daily Peak Heating Demand Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 21 of 32  the Modular buildings are evaluated for interconnection with the heating system in the Main  Building if a wood fired system was installed.    All costs and savings for the Modular Building are estimated assuming that a wood fired system  is being installed for the Main Building.  Insulated heating pipes would be installed from the  Main Building boiler room to the Modular Buildings and tie into the ductwork using hot water  coils.  The fuel oil furnaces would remain for backup. Figure 15 shows the load duration curves  for all three buildings.     Figure 16 – Estimated Load Duration Curve for the Main Building, Gymnasium, & Modular Buildings   Note: The load duration curve model shows the estimated daily average heating demands for the Main Building,  Gymnasium, and Modular Buildings stacked on top of each other.  The daily peak heating demand is represented  for all three buildings combined in yellow.    4.3.1 Option 3a : 570,000 Btu/hr Wood Pellet System If the Modular Buildings were added to Option 2a, connecting the Main Building, Gymnasium,  and Modular Buildings to a district heating system, the recommended wood pellet system  would have 570,000 Btu/hr of capacity and 750 gallons of hot water thermal storage.  The  biomass system would be located in the same location as Options 1a and 2a and hot water  distribution pipes would branch off from the pipes between the Main Building and Gymnasium.  Three 190,000 Btu/hour advanced combustion units and hot water boilers firing on wood  0.00 0.20 0.40 0.60 0.80 1.00 1.20 11325374961738597109121133145157169181193205217229241253265277289301313325337349361Heating Demand (mmBtu/hr)Days Main Average Heating Demand Gym Average Heating Demand Modular Average Heating Demand Daily Peak Heating Demand Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 22 of 32  pellets could be used with cascading operation. The rated operating range of the system would  be from ~0.06 to ~0.57 mmBtu/hr. The hot water thermal storage would allow the system to  meet a 1Ͳhr peak of ~0.66 mmBtu/hr and a 15 minute peak of ~0.93 mmBtu/hr.    The storage will hold approximately 330,000 Btu for domestic hot water usage.  This allows one  boiler to fire for a period of approximately two hours within its efficient firing range to charge  the storage.  The heat in the storage is then used to provide domestic hot water needs, until  the temperature drops to ~140oF and the system has to fire to charge it once more.  Figure 17  shows the potential coverage of the total combined load duration curve for all three buildings  using the wood pellet system.    Figure 17 – Estimated Biomass System Coverage of Load Duration Curve   Note: The load duration curve model is based on local weather data and annual fuel delivery volumes provided by  Klawock City School District.  Potential coverage of 98% is shown.  Actual coverage will depend on management of  loads and the use of thermal storage.  The system can be used as described in the text to cover approximately 100%  of the annual demand.  Management of loads, the use of thermal storage, and operations will determine actual  biomass coverage.  Figure 17 shows 98% biomass coverage of the FY 2013 load duration curve for both buildings  combined.  Three boilers operating as a cascading system with the use of thermal storage  would allow efficient operation throughout the range of heating loads expected for the Main  Building and Gymnasium combined. Actual coverage will vary depending on weather  0 0.2 0.4 0.6 0.8 1 1.2 11223344556677889100111122133144155166177188199210221232243254265276287298309320331342353364Heat Demand of Boiler Output (mmBtu/hr)Days Biomass Coverage Daily Average Heating Demand Daily Peak Heating Demand Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 23 of 32  conditions, peak demands, equipment operation schedules, and periods when the boilers are  shut down for maintenance.  This report assumes 95% coverage of fuel oil usage for estimating  the potential fuel use and savings for the Main Building, Gymnasium, and Modular Buildings  combined.  4.3.2 Option 3b : 500,000 Btu/hr Dry Fuel System Option 3b would interconnect the Modular Buildings, Gymnasium, and Main Building boiler  plant as described in Option 3a and use a 500,000 Btu/hr dry fuel system with 1,000 gallons of  hot water thermal storage. The dry wood chip system location, fuel storage, and fuel handling  arrangement would be would be identical to Option 2b.  The differences would be installing a  distribution piping branch from the pipe connecting the Gymnasium and Main Building to tie  into the furnaces in the modular buildings.  The estimated coverage of the combined load  duration curves for all three buildings is shown in Figure 18.    Figure 18 – Estimated Biomass System Coverage of Load Duration Curve   Note: The load duration curve model is based on local weather data and annual fuel delivery volumes provided by  Klawock City School District.  Potential coverage of 90% is shown.  Actual coverage will depend on management of  loads and the use of thermal storage.        Figure 18 shows 90% coverage of the FY 2013 load duration curve using the dry fuel system.   The existing fuel oil system in the Main Building boiler room will supplement the biomass  system as needed.  Actual coverage will vary depending on weather conditions, peak demands,  equipment operation schedules, and periods when the boilers are shut down for maintenance.   0 0.2 0.4 0.6 0.8 1 1.2 11325374961738597109121133145157169181193205217229241253265277289301313325337349361Heat Demand of Boiler Output (mmBtu/hr)Days Biomass Coverage Daily Average Heating Demand Daily Peak Heating Demand Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 24 of 32  This report assumes 90% coverage for the dry fuel system for estimating the potential fuel use  and savings for the Main Building and Gymnasium.  4.4 NATIVE ARTS BUILDING The Native Arts Building is a modular building that uses a Toyo space heater.  A wood fired  heating system would not be practical to tie into the existing heating system or cost effective  due to the small amount of oil use (400 gallons/year).  The Klawock School District has  suggested that the Native Arts Building will be replaced in the near future and is therefore not  further considered in this study.    4.0 BENEFIT/COST ANALYSIS The estimated capital costs for each Option are listed in Table 4.    Table 4 – Estimated Project Capital Costs  Option Estimated Capital Cost  1a – Main Building Wood Pellet System $297,781  1b – Main Building Dry Sawdust System $721,493  2a – Main Building & Gymnasium Wood Pellet System $420,929  2b – Main Building & Gymnasium Dry Sawdust System $858,556  3a – Main Building, Gymnasium, & Modular Buildings Wood Pellet System $573,994  3b – Main Building, Gymnasium, & Modular Buildings Dry Sawdust System $983,791    Project cost estimates are based on recent quotations and bids provided by boiler  manufacturers and recent bids for similar projects.  These costs include the fuel storage and  handling system, biomass combustion unit, boiler, accessory equipment, installation,  integration with the existing heating and domestic hot water systems, professional fees, and  contingency. Tables showing the detailed cost breakdowns are found in Appendix B.  It is assumed that existing staff would coordinate deliveries, empty ash bins, and check on the  system.  Ash removal costs have been estimated at $70 per ton of ash and $220 per container  delivery.  Option 3b would generate the largest quantity of ash and would result in  approximately 4 cubic yards annually.  Wood ash can be used as a direct replacement for lime  and costs for removal could be reduced if it is used as a soil amendment on school grounds or  other locations.    An increase in electricity use would occur from the circulation pumps and fuel handling system.   Electricity costs using a price of $0.23/ kWh have been estimated considering motors for pumps  and augers for the wood pellet system and the hydraulic system and screening for the dry fuel  system. Annual operation and maintenance (O&M) costs are estimated for each option and are  listed in Table 5.          Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 25 of 32  Table 5 – Estimated Annual O&M Costs  Task Option 1a Option 1b Option 2a Option 2b Option 3a Option 3b  Electricity $2,450 $3,730 $3,650 $4,880 $4,810 $4,940  Ash Removal $410 $490 $500 $530 $500 $560  Annual Service $1,500 $2,000 $1,500 $2,000 $1,500 $2,000  Totals $4,360 $6,220 $5,650 $7,410 $6,810 $7,500    Annual operating savings are estimated considering fuel costs and O&M costs.  Table 6 shows  the estimated annual operating savings for each option.    Table 6 – Estimated Annual Operating Savings  Option  Current  Annual Fuel  Oil Cost  Estimated  Annual  Biomass Cost  Estimated  Annual Fuel  Oil Cost with  Biomass  System  Estimated  Additional  Annual  O&M Costs  Estimated  Annual  Savings  1a – Main Building Wood Pellet  System $49,200 $34,320 $2,464 $4,360 $8,056  1b – Main Building Dry Sawdust  System $49,200 $14,520 $4,920 $6,220 $23,540  2a – Main Building & Gymnasium  Wood Pellet System $73,800 $53,130 $3,694 $5,650 $11,326  2b – Main Building & Gymnasium  Dry Sawdust System $73,800 $22,560 $7,380 $7,430 $36,430  3a – Main Building, Gymnasium, &  Modulars Wood Pellet System $80,360 $58,740 $4,022 $6,820 $10,778  3b – Main Building, Gymnasium, &  Modulars Dry Sawdust System $80,360 $24,960 $8,036 $7,530 $39,834   Note: Assumes dry sawdust is used for Options 1b, 2b, and 3b due to the energy cost advantage and wood pellets  for Options 1a, 2a, and 3a.    A benefits summary is listed in Table 7 showing the estimated capital cost, 1st year net  operating savings, simple payback, 20 year Net Present Value, and 20 Year Benefits to Cost  (B/C) ratio.  A sensitivity analysis of estimated first year annual operating savings over a range  of biomass and oil costs are provided in Appendix D.              Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 26 of 32  Table 7 – Cost and Benefit Summary  Option Estimated  Capital Cost  1st Year Net  Annual  Operating  Savings  Simple  Payback,  Years  20 Year Net  Present  Value  20 Year  B/C Ratio  1a – Main Building Wood Pellet  System $297,781 $8,056 37.0 ($115,801) 0.61   1b – Main Building Dry Sawdust  System $721,493 $23,540 30.6 ($240,194) 0.67   2a – Main Building & Gymnasium  Wood Pellet System $420,929 $11,326 37.2 ($162,675) 0.61   2b – Main Building & Gymnasium  Dry Sawdust System $858,556 $36,430 23.6 ($114,859) 0.87   3a – Main Building, Gymnasium, &  Modulars Wood Pellet System $573,994 $10,778 53.3 ($322,974) 0.44   3b – Main Building, Gymnasium, &  Modulars Dry Sawdust System $983,791 $39,834 24.7 ($170,769) 0.83    Notes:  1 – Net Annual Operating Savings include costs for wood fuel, supplemental fossil fuel, and operation &  maintenance (O&M) costs.  2 – 20 Year Net Present Value takes the present value of the operating savings over 20 years with annual inflations  of 3.3% for oil and 3.0% for remaining O&M costs and the initial capital outlay of the total project cost using a  discount rate of 3.0% as published in the “Energy Price Indices and Discount Factors for Life‐Cycle Cost Analysis ‐ 2013”. A value greater than zero means that savings are greater than expenses over 20 years in the value of  today’s dollars.  3 – 20 Year Benefit/Cost (B/C) Ratio is calculated by dividing the present value of net annual operating savings over  a 20 year period with a discount rate of 3.0% by the Estimated Capital Cost. A value greater than 1 means the  benefits exceed the costs over a 20 year period.    A cash flow analysis was completed for financing the projects assuming a 20 year financing term  at a 4.0% interest rate.  None of the Options had a positive first year cash flow after annual  payments. The detailed analyses are shown in Appendix C.   A 20 year Life Cycle Cost Analysis (LCCA) complying with the requirements for the Alaska  Department of Education & Early Development was conducted for the Options 2a and 2b since  they had the shortest simple payback.  The spreadsheet is provided in Appendix E and the  results of the LCCA are listed in Table 8.                Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 27 of 32  Table 8 – 20 Year Life Cycle Cost Analysis for Options 2a and 2b  Item  Alternate #1  (Using Oil  Boilers)  Alternate #2  (Option 2a)  Alternate #3  (Option 2b)  Initial Investment Cost $0 $420,929 $858,556  Operations Cost $1,097,958 $906,891 $526,212  Maintenance & Repair Cost  $7,439 $22,316 $29,755  Replacement Cost $74,409 $0 $0  Residual Value $0 $0 $0  Total 20 Year Life Cycle Costs $1,179,806 $1,350,136 $1,414,522  Notes:    1 ‐ Values generated using the Alaska Department of Education & Early Development LCCA spreadsheet.   2 – Alternate #1 assumes the two oil boilers in the Main Building and one boiler in the Gymnasium will be replaced  in ten years.    The 20 year life cycle costs indicate that capital costs and maintenance costs for Options 2a and  2b outweigh the savings in operations costs. It is noted that a discount rate of 3.0% was used as  required by the Alaska Department of Education & Early Education.  This model does not take  into consideration the high rates of fuel oil price inflation experienced in recent years and may  not represent the true costs of future operation for the fuel oil system.  A sensitivity analysis  was completed comparing 20 year net present value for each option over a range of annual oil  inflation rates and 3.0% for remaining O&M costs.  Table 9 shows the results of the 20 year net  present value sensitivity analysis.     Table 9 – 20 Year Net Present Value Sensitivity to Oil Inflation Rate  Option  20 Year NPV  with Oil  Inflation at  3.0% Annually  20 Year NPV  with Oil  Inflation at  3.3% Annually  20 Year NPV  with Oil  Inflation at  4.0% Annually  20 Year NPV  with Oil  Inflation at  6.8% Annually  1a – Main Building Wood Pellet  System ($141,356) ($115,801) ($52,572) $259,586   1b – Main Building Dry Sawdust  System ($264,405) ($240,194) ($180,287) $115,467   2a – Main Building & Gymnasium  Wood Pellet System ($201,008) ($162,675) ($67,828) $400,422   2b – Main Building & Gymnasium  Dry Sawdust System ($151,177) ($322,974) ($24,999) $418,632   3a – Main Building, Gymnasium, &  Modulars Wood Pellet System ($364,714) ($322,974) ($219,695) $290,180   3b – Main Building, Gymnasium, &  Modulars Dry Sawdust System ($210,315) ($170,769) ($72,921) $410,144   Note:  Net Present Values are calculated using annual inflation rates of 3% for wood fuel and O&M costs, the  inflation rate for oil stated in the table, the initial capital cost, and a discount rate of 3%.    Table 10 lists the assumptions and values used to develop costs and savings in this study.  Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 28 of 32    Table 10 – Assumptions and Values Used in the Report  Item Value and Unit Source  Main Building annual #1 fuel oil use 12,000 gallons Klawock City Schools  Gymnasium annual #1 fuel oil use 6,000 gallons Klawock City Schools  Modular Buildings annual #1 fuel oil use 1,600 gallons Klawock City Schools  Native Arts Building annual #1 fuel oil use 400 gallons Klawock City Schools  Option 1a portion of fuel oil replaced  95%WES E&E estimate  Option 1b portion of fuel oil replaced  90%WES E&E estimate  Option 2a portion of fuel oil replaced  95%WES E&E estimate  Option 2b portion of fuel oil replaced  90%WES E&E estimate  Option 3a portion of fuel oil replaced  95%WES E&E estimate  Option 3b portion of fuel oil replaced  90%WES E&E estimate  #1 Fuel oil heat content 134,000 Btu/gal WES E&E assumption  Dry wood chip moisture content wet basis 20%WES E&E assumption  Dry sawdust moisture content wet basis 20%WES E&E assumption  Wood pellet moisture content wet basis 8%WES E&E assumption  Dry wood chip high heating value 13.2 mmBtu/ton WES E&E assumption  Dry sawdust high heating value 13.2 mmBtu/ton WES E&E assumption  Wood pellet high heating value 15.2 mmBtu/ton WES E&E assumption  #1 Fuel oil boiler efficiency 80%WES E&E assumption  Dry sawdust/wood chip boiler efficiency (HHV)75%WES E&E assumption  Wood pellet boiler efficiency (HHV) 80%WES E&E assumption  #1 Fuel oil price $4.10/gallon Klawock City Schools  Electricity price $0.23/kWh Klawock City Schools  Dry wood chip price $260.00/ton Budget quote Wood pellet price $330.00/ton Budget quote Dry sawdust price $120.00/ton Budget quote Discount rate 3.0%NISTIR 85Ͳ3273Ͳ28  #1 Fuel oil inflation rate  3.3%WES E&E assumption  Wood pellet inflation rate 3.0%WES E&E assumption  O&M inflation rate 3.0%WES E&E assumption  Dry sawdust inflation rate 3.0%WES E&E assumption     Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 29 of 32  5.0 CONCLUSIONS & RECOMMENDATIONS This study concludes that the Klawock City Schools can reduce annual operating costs for space  heating and domestic hot water heating by installing a high efficiency, low emission wood fired  heating system.  Based on the current economics, capital costs may be too high for the school  district to justify proceeding with a project.  The proposed systems will generate hot water to  offset 90% Ͳ 95% of the current fuel oil use for space heating and domestic hot water within  school buildings at capital costs ranging from ~$300,000 Ͳ ~$1,000,000 depending on the option  selected.  This would provide Klawock City School District with net operating savings ranging  from ~$8,000 to ~$40,000 in the first year of operation. If 80% of the project costs were funded  through grants, the simple payback for School District funds would range from 8 Ͳ 10 years for  the proposed wood pellet options and 6 years or less for the proposed dry sawdust options.   Additional benefits that would be provided by a high efficiency, low emission wood fired system  include:  x Purchase of dried wood chips or dried sawdust will immediately impact the local  economy since the fuel is planned for production on Prince of Wales Island;  x Purchase of wood pellets will impact the regional economy, with pellet production  currently operational in Ketchikan, AK;   x Decreased dependence on imported oil by replacing 10,800 to 18,600 gallons of #1 fuel  oil with renewable biomass fuel;  x A hedge against volatility of the fossil fuel market;  As Klawock City Schools continues to pursue biomass energy options, WES Energy &  Environment recommends that the next level of evaluation includes detailed consideration of  the following items:  x Siting of the biomass plant and fuel storage.  x Biomass system capital costs based on detailed site investigations, initial plant layout  and design, and direct quotes from manufacturers.    x Alternative funding sources (low interest loans, grants, and incentives).     Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 30 of 32  Source: http://www.woodboilers.com/products/pelletͲ boilers/frolingͲp4Ͳpellet.html 6.0 GENERAL BIOMASS TECHNOLOGY INFORMATION This section describes technologies that can be used for efficiently using wood for space  heating and domestic hot water heating.  Manufacturers of each technology are available both  domestically and abroad. A partial list of manufacturers is provided for technologies and does  not constitute an endorsement.  Other manufacturers are available and individual  investigations should be completed prior to purchase. Local codes and regulations may require  modifications or additional components for compliance depending on the system considered.    High Efficiency Indoor Wood Pellet Boiler  High efficiency indoor wood pellet boilers utilize  premium wood pellets as a renewable biomass fuel  source for hot water space heating systems. Wood  pellets are automatically fed from an adjacent storage  hopper into the firebox based on heating demand.   Efficiencies can exceed 80% when coupled with a hot  water thermal storage system that allows the boiler to  operate at high fire to charge the hot water thermal  storage tank. Multiple boilers can be operated to  increase heating capacity.  Equipment costs can vary  depending on the heating capacity required.  Annual  savings can range from $3,000 to $6,000 per year based  on a facility using 5,000 gallons of #1 fuel oil per year at  current prices. Manual and automatic hopper loading is  available. Ash removal is manual. A partial list of  manufacturers include ACT Bioenergy, Froling, MESys,  Evo World, Windhager, Kedel, and Wood Master.         High Efficiency Indoor Cord Wood Boiler  High efficiency indoor cordwood boilers utilize split  cordwood as a renewable biomass fuel source for hot  water space heating systems. Efficiencies can exceed  70% when coupled with a hot water thermal storage  system that allows the cordwood boiler to operate at  high fire to charge the hot water thermal storage tank.  Equipment costs can range from $7,000 to $15,000 plus  installation.  Annual savings can range from $1,800 to  $2,200 per year based on an average building using  1,500 gallons of #1 fuel oil per year at current prices.  Manual loading and ash removal are required. A partial  list of manufacturers include Wood Gun, Econoburn,  Froling, Windhager, and Wood Master.  Source:  http://www.woodboilers.com/product s/woodboilers/froelingͲfhg.html Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 31 of 32  Source: http://www.afsenergy.com/Biomass%20Energy.htm   Advanced Biomass Combustion Units and Boilers  Advanced biomass combustion units and boilers are  typically an engineered product capable of firing on  wood chips, saw mill residue, wood pellets, and saw  dust. Fuel is typically delivered in bulk semiͲtrailer  loads and automatically conveyed to the  combustion unit. Efficiencies can exceed 70% when  coupled with a hot water thermal storage system.   Emission controls are typically required to clean up  exhaust gasses.  Capital costs are high and vary  depending on many factors. Annual fuel cost savings  can range from $100,000 to $120,000 per year  based on a facility using 50,000 gallons of #1 fuel oil  per year at current prices.  The greater the fossil fuel  costs and usage the greater the savings to pay back  capital costs. A partial list of manufacturers include  Viessman, ACT Bioenergy, Froling, MESys, Evo  World, Wood Master, Messersmith Manufacturing,  AFS Energy Systems, Solagen, Wellons FEI, and Hurst.  Hot Water Thermal Storage System  Thermal storage tanks, also known as accumulator  tanks or buffer tanks, can raise the efficiency of hot  water heating systems firing on wood.  Solid fuels  burn more efficiently at higher firing rates than at  lower rates or idle modes where the fuel smolders,  smokes, and wastes energy.  Hot water thermal  storage allows the solid fuel boiler to fire efficiently  at full output to store the heat at elevated  temperatures in storage tanks. For optimum  operation a mixing valve is installed to blend cold  water returning from the facility with hot water  stored in the thermal storage tank.  Hot water is sent  back to the facility at a temperature that is lower  than the storage tanks, providing heat storage and a  buffer for short periods of high demand.  This  method of operation reduces: smoldering and  smoking from inefficient operation, fuel use,  creosote buildup, and the need for frequent stoking.  Source: http://www.viessmannͲ us.com/en/District_Heating/Products/dhw/Stor age_Tanks.html Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska    WES Energy & Environment  Page 32 of 32  Source: WES Energy & Environment File Photo District Piping Systems  It can often be cost effective to connect multiple  buildings to one central wood fired heating plant.   Long runs of buried piping can be installed cost  effectively using preͲinsulated PEX piping.  It is  important to use factory injected close cell foam  insulation with a High Density Polyethylene (HDPE)  insulation jacket to prevent the insulation from being  compromised from ground water or leaks.   Pipe sizes  can range from 3/4” to 5” with roll lengths up to 600  feet.  Pipe material costs can be more expensive than  traditional iron pipe, however installation costs can  be reduced due to longer runs between splices and  connections.               Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska  WES Energy & Environment                Appendix A  Conceptual Drawings                                  SCALE 100'0'50' 100' Klawock City School District WESEEKlawock City SchoolKlawock, AKSite Plan SCALE 50'0'25' 50' Options 1A & 1B Options 2A & 2BOptions 3A & 3B New Boiler System WESEEKlawock City SchoolKlawock, AKPiping Run Diagram Hot Water Supply Pipe Hot Water Return Pipe Existing School Packaged Boiler UnitConcrete Pad Boiler (Typ.) Metering Bin (Typ.) Fuel Storage Stack (Typ.) Fuel Auger Fuel Hopper Concrete Pad SCALE 5'0'2.5' 5' Existing Roll Up Door WESEEKlawock City SchoolKlawock, AKOption 1A Plan ViewNote: This drawing is a conceptual plan view for the purposes of showing a general biomass system arrangement. Equipment, final sizing, and pressures will vary depending on the engineer, manufacturer and contractor installing the biomass system. To Existing Heating System 500 Gallon Thermal Storage Tank Boiler Protection Valve Valve to be controlled to maintain at least 140° to boilers. VFD TT TI Variable Frequency Drive Temperature Transmitter Pump Three Way Mixing Valve Legend From Existing Heating System TT TI VFD Temperature Indicator TT TI To School Boiler Room From School Boiler Room 150,000 Bth/hr Biomass Boiler 150,000 Bth/hr Biomass Boiler From Load To Load Existing 943,000 Btu/hr Fuel Oil Boiler Existing 943,000 Btu/hr Fuel Oil Boiler WESEEKlawock City SchoolKlawock, AKOption 1A SchematicNote: This drawing is a conceptual schematic for the purposes of showing a general biomass system arrangement. Equipment, final sizing, and pressures will vary depending on the engineer, manufacturer and contractor installing the biomass system. Fuel Conveyor Fuel Auger Overs Bin BiomassBoilerMetering Bin Existing School SCALE 5'0'2.5' 5' Existing Roll Up Door Stack Retaining Wall Fuel Trailer WESEEKlawock City SchoolKlawock, AKOption 1B Plan ViewNote: This drawing is a conceptual plan view for the purposes of showing a general biomass system arrangement. Equipment, final sizing, and pressures will vary depending on the engineer, manufacturer and contractor installing the biomass system. To Existing Heating System 300,000 Btu/hr Biomass Boiler 750 Gallon Thermal Storage Tank VFD TT TI Variable Frequency Drive Temperature Transmitter Pump Three Way Mixing Valve Legend From Existing Heating System TT TI VFD Temperature Indicator TT TI To School Boiler Room From School Boiler Room From Load To Load Existing 943,000 Btu/hr Fuel Oil Boiler Existing 943,000 Btu/hr Fuel Oil Boiler Boiler Protection Valve Valve to be controlled to maintain at least 140° to boilers.WESEEKlawock City SchoolKlawock, AKOption 1B SchematicNote: This drawing is a conceptual schematic for the purposes of showing a general biomass system arrangement. Equipment, final sizing, and pressures will vary depending on the engineer, manufacturer and contractor installing the biomass system. Packaged Boiler Unit Boiler (Typ.) Metering Bin (Typ.) Fuel Storage Stack (Typ.) Fuel Auger Fuel Hopper Concrete Pad Hot Water Supply Pipe Hot Water Return Pipe Existing School SCALE 5'0'2.5' 5' Existing Roll Up Door Concrete Pad WESEEKlawock City SchoolKlawock, AKOption 2A Plan ViewNote: This drawing is a conceptual plan view for the purposes of showing a general biomass system arrangement. Equipment, final sizing, and pressures will vary depending on the engineer, manufacturer and contractor installing the biomass system. To Existing Heating System 750 Gallon Thermal Storage Tank VFD TT TI Variable Frequency Drive Temperature Transmitter Pump Three Way Mixing Valve Legend From Existing Heating System TT TI VFD Temperature Indicator TT TI To School Boiler Room From School Boiler Room 170,000 Btu/hr Biomass Boiler 170,000 Btu/hr Biomass Boiler 170,000 Btu/hr Biomass Boiler From Load To Load Existing 943,000 Btu/hr Fuel Oil Boiler Existing 943,000 Btu/hr Fuel Oil Boiler From Gym To Gym Boiler Protection Valve Valve to be controlled to maintain at least 140° to boilers.WESEEKlawock City SchoolKlawock, AKOption 2A SchematicNote: This drawing is a conceptual schematic for the purposes of showing a general biomass system arrangement. Equipment, final sizing, and pressures will vary depending on the engineer, manufacturer and contractor installing the biomass system. Fuel Conveyor Fuel Auger Overs Bin BiomassBoilerMetering Bin Existing School SCALE 5'0'2.5' 5' Existing Roll Up Door Stack Retaining Wall Fuel Trailer WESEEKlawock City SchoolKlawock, AKOption 2B Plan ViewNote: This drawing is a conceptual plan view for the purposes of showing a general biomass system arrangement. Equipment, final sizing, and pressures will vary depending on the engineer, manufacturer and contractor installing the biomass system. To Existing Heating System 500,000 Btu/hr Biomass Boiler 1,000 Gallon Thermal Storage Tank VFD TT TI Variable Frequency Drive Temperature Transmitter Pump Three Way Mixing Valve Legend From Existing Heating System TT TI VFD Temperature Indicator TT TI To School Boiler Room From School Boiler Room From School Existing 943,000 Btu/hr Fuel Oil Boiler Existing 943,000 Btu/hr Fuel Oil Boiler From Gym To Gym To School Boiler Protection Valve Valve to be controlled to maintain at least 140° to boilers.WESEEKlawock City SchoolKlawock, AKOption 2B SchematicNote: This drawing is a conceptual schematic for the purposes of showing a general biomass system arrangement. Equipment, final sizing, and pressures will vary depending on the engineer, manufacturer and contractor installing the biomass system. Packaged Boiler UnitConcrete Pad Boiler (Typ.) Metering Bin (Typ.) Fuel Storage Stack (Typ.) Fuel Auger Fuel Hopper Concrete Pad Hot Water Supply Pipe Hot Water Return Pipe Existing School Existing Roll Up Door SCALE 5'0'2.5' 5'WESEEKlawock City SchoolKlawock, AKOption 3A Plan ViewNote: This drawing is a conceptual plan view for the purposes of showing a general biomass system arrangement. Equipment, final sizing, and pressures will vary depending on the engineer, manufacturer and contractor installing the biomass system. To Existing Heating System 750 Gallon Thermal Storage Tank VFD TT TI Variable Frequency Drive Temperature Transmitter Pump Three Way Mixing Valve Legend From Existing Heating System TT TI VFD Temperature Indicator TT TI To School Boiler Room From School Boiler Room 190,000 Btu/hr Biomass Boiler 190,000 Btu/hr Biomass Boiler 190,000 Btu/hr Biomass Boiler Existing 943,000 Btu/hr Fuel Oil Boiler Existing 943,000 Btu/hr Fuel Oil Boiler To Gym And Modular Buildings To Gym And Modular Buildings From School To School Boiler Protection Valve Valve to be controlled to maintain at least 140° to boilers.WESEEKlawock City SchoolKlawock, AKOption 3A SchematicNote: This drawing is a conceptual schematic for the purposes of showing a general biomass system arrangement. Equipment, final sizing, and pressures will vary depending on the engineer, manufacturer and contractor installing the biomass system. Fuel Conveyor Fuel Auger Overs Bin Metering Bin Existing School SCALE 5'0'2.5' 5' Existing Roll Up Door Retaining WallBiomassBoiler Stack Fuel Trailer WESEEKlawock City SchoolKlawock, AKOption 3B Plan ViewNote: This drawing is a conceptual plan view for the purposes of showing a general biomass system arrangement. Equipment, final sizing, and pressures will vary depending on the engineer, manufacturer and contractor installing the biomass system. To Existing Heating System 500,000 Btu/hr Biomass Boiler 1,000 Gallon Thermal Storage Tank VFD TT TI Variable Frequency Drive Temperature Transmitter Pump Three Way Mixing Valve Legend From Existing Heating System TT TI VFD Temperature Indicator TT TI To School Boiler Room From School Boiler Room From School To School Existing 943,000 Btu/hr Fuel Oil Boiler Existing 943,000 Btu/hr Fuel Oil Boiler To Gym And Modular Buildings To Gym And Modular Buildings Boiler Protection Valve Valve to be controlled to maintain at least 140° to boilers.WESEEKlawock City SchoolKlawock, AKOption 3B SchematicNote: This drawing is a conceptual schematic for the purposes of showing a general biomass system arrangement. Equipment, final sizing, and pressures will vary depending on the engineer, manufacturer and contractor installing the biomass system. Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska  WES Energy & Environment                          Appendix B  Preliminary Capital Cost Estimates                                    Appendix B Klawock City Schools Line Item Cost1&2 Two (2) Ͳ 150,000 Btu/hr wood pellet hot water boilers  containerized 120,000$                 45 ton storage bin 15,000$                    Storage bin site work 5,000$                      Thermal storage 500 gal with insulation 15,000$                    Interconnection with existing boiler room, pumps, installation 10,000$                    Electrical 15,000$                    Mechanical 10,000$                    Distribution Piping, 120 linear feet @ $200/linear foot 24,000$                    SubͲTotal 214,000$                 Contractor Profit 10%21,400$                   SubͲTotal 235,400$                Contingency 10%23,540$                   SubͲTotal 258,940$                Profesional Services 15%38,841$                   Total 297,781$                 Notes: 4 Ͳ Estimate is based on competitive bidding. Option 1a ‐ Conceptual Cost Estimate ‐ Main Building Wood Pellet Boilers 1 Ͳ The boiler system is to be provided in a containerized preͲpackaged system.  Output range is from ~0.045 Ͳ  0.3 mmBtu/hr.  Pricing is based on a twoͲboiler solution.  There are multiple manufacturers that can provide  varying boiler sizes.  Other boiler sizing combinations to meet a similar output range may also be selected.  3 Ͳ Professional Services includes permitting, legal, engineering, & project management. (Assumed that  2 Ͳ Assumes pipe route as shown.  Connections should be evaluated in additional detail as the project moves  forward. WES Energy & Environment Appendix B Klawock City Schools Line Item Value Units $/Unit Cost1&2 One (1) Ͳ 300,000 Btu/hr dry wood fuel boiler (sawdust, chips, pellets), containerized 120,000$                 Two 30' length by 8' wide self unloading trailers, freight, hydraulic unit 140,000$                 80,000$                    Earth removal, retaining wall, concrete floor 40,000$                    Stick frame unloading bin poured concrete floor, 120 ft2 @ $100/ft2 12,000$                    Two hydraulic cylinders, scrapes, and embedment 30,000$                    Thermal storage 750 gal with insulation 17,500$                    Interconnection with existing boiler room, pumps, installation 10,000$                    Electrical 25,000$                    Mechanical 20,000$                    Distribution Piping, 120 linear feet @ $200/linear foot 24,000$                    SubͲTotal 518,500$                 Contractor Profit 10%51,850$                   SubͲTotal 570,350$                Contingency 10%57,035$                   SubͲTotal 627,385$                Profesional Services 15%94,108$                   Total 721,493$                 Notes: 4 Ͳ Estimate is based on competitive bidding. Option 1b ‐ Conceptual Cost Estimate ‐ Main Bulding Dry Fuel Boilers 1 Ͳ The boiler system is to be provided in a containerized preͲpackaged system.  Output range is from ~0.09 Ͳ  0.3 mmBtu/hr.  Pricing is based on a oneͲboiler solution.  There are multiple manufacturers that can provide  varying boiler sizes.  Other boiler sizing combinations to meet a similar output range may also be selected.  2 Ͳ Assumes pipe route as shown.  Connections should be evaluated in additional detail as the project moves  forward. 3 Ͳ Professional Services includes permitting, legal, engineering, & project management. (Assumed that  minimal engineering is required.) Material handling including vibrating conveyer, shaker screener, two metering bins and  conveyor augers WES Energy Environment Appendix B Klawock City Schools Line Item Cost1&2 Three (3) Ͳ 170,000 Btu/hr wood pellet hot water boilers  containerized 140,000$                 45 ton storage bin 15,000$                    Storage bin site work 5,000$                      Thermal storage 750 gal with insulation 17,500$                    Interconnection with existing boiler room, pumps, installation 10,000$                    Electrical 20,000$                    Mechanical 15,000$                    Distribution Piping, 400 linear feet @ $200/linear foot 80,000$                    SubͲTotal 302,500$                 Contractor Profit 10%30,250$                   SubͲTotal 332,750$                Contingency 10%33,275$                   SubͲTotal 366,025$                Profesional Services 15%54,904$                   Total 420,929$                 Notes: 4 Ͳ Estimate is based on competitive bidding. Option 2a ‐ Conceptual Cost Estimate ‐ Main Building & Gymnasium  Wood Pellet Boilers 1 Ͳ The boiler system is to be provided in a containerized preͲpackaged system.  Output range is from ~0.051 Ͳ  0.51 mmBtu/hr.  Pricing is based on a threeͲboiler solution.  There are multiple manufacturers that can  provide varying boiler sizes.  Other boiler sizing combinations to meet a similar output range may also be  selected.  2 Ͳ Assumes pipe route as shown.  Connections should be evaluated in additional detail as the project moves  forward. 3 Ͳ Professional Services includes permitting, legal, engineering, & project management. (Assumed that  WES Energy & Environment Appendix B Klawock City Schools Line Item Value Units $/Unit Cost1&2 One (1) Ͳ 500,000 Btu/hr dry wood fuel boiler (sawdust, chips, pellets), containerized 140,000$                 Two 30' length by 8' wide self unloading trailers, freight, hydraulic unit 140,000$                 80,000$                    Earth removal, retaining wall, concrete floor 40,000$                    Stick frame unloading bin poured concrete floor, 120 ft2 @ $100/ft2 12,000$                    Two hydraulic cylinders, scrapes, and embedment 30,000$                    Thermal storage, 1,000 gallon with insulation 20,000$                    Interconnection with existing boiler room, pumps, installation 20,000$                    Electrical 30,000$                    Mechanical 25,000$                    Distribution Piping, 400 linear feet @ $200/linear foot 80,000$                    SubͲTotal 617,000$                 Contractor Profit 10%61,700$                   SubͲTotal 678,700$                Contingency 10%67,870$                   SubͲTotal 746,570$                Profesional Services 15%111,986$                Total 858,556$                 Notes: 4 Ͳ Estimate is based on competitive bidding. Option 2b ‐ Conceptual Cost Estimate ‐ Main Bulding & Gymnasium  Dry Fuel Boilers Material handling including vibrating conveyer, shaker screener, two metering bins and  conveyor augers 1 Ͳ The boiler system is to be provided in a containerized preͲpackaged system.  Output range is from ~0.15 Ͳ  0.5 mmBtu/hr.  Pricing is based on a oneͲboiler solution.  There are multiple manufacturers that can provide  varying boiler sizes.  Other boiler sizing combinations to meet a similar output range may also be selected.  2 Ͳ Assumes pipe route as shown.  Connections should be evaluated in additional detail as the project moves  forward. 3 Ͳ Professional Services includes permitting, legal, engineering, & project management. (Assumed that  minimal engineering is required.) WES Energy & Environment Appendix B Klawock City Schools Line Item Cost1&2 Three (3) Ͳ 190,000 Btu/hr wood pellet hot water boilers  containerized 150,000$                 45 ton storage bin 15,000$                    Storage bin site work 5,000$                      Thermal storage 750 gal with insulation 17,500$                    Interconnection with existing boiler room, pumps, installation 20,000$                    Hot water coils, interconnection with Modular Building furnaces, installation 40,000$                    Electrical 35,000$                    Mechanical 20,000$                    Distribution Piping, 550 linear feet @ $200/linear foot 110,000$                 SubͲTotal 412,500$                 Contractor Profit 10%41,250$                   SubͲTotal 453,750$                Contingency 10%45,375$                   SubͲTotal 499,125$                Profesional Services 15%74,869$                   Total 573,994$                 Notes: 4 Ͳ Estimate is based on competitive bidding. Option 3a ‐ Conceptual Cost Estimate ‐ Main Building, Gymnasium, &  Modular Buildings Wood Pellet Boilers 1 Ͳ The boiler system is to be provided in a containerized preͲpackaged system.  Output range is from ~0.051 Ͳ  0.57 mmBtu/hr.  Pricing is based on a threeͲboiler solution.  There are multiple manufacturers that can  provide varying boiler sizes.  Other boiler sizing combinations to meet a similar output range may also be  selected.  2 Ͳ Assumes pipe route as shown.  Connections should be evaluated in additional detail as the project moves  forward. 3 Ͳ Professional Services includes permitting, legal, engineering, & project management. (Assumed that  WES Energy & Environment Appendix B Klawock City Schools Line Item Value Units $/Unit Cost1&2 One (1) Ͳ 500,000 Btu/hr dry wood fuel boiler (sawdust, chips, pellets), containerized 140,000$                 Two 30' length by 8' wide self unloading trailers, freight, hydraulic unit 140,000$                 80,000$                    Earth removal, retaining wall, concrete floor 40,000$                    Stick frame unloading bin poured concrete floor, 120 ft2 @ $100/ft2 12,000$                    Two hydraulic cylinders, scrapes, and embedment 30,000$                    Thermal storage, 1,000 gallon with insulation 20,000$                    Interconnection with Gym boiler room, pumps, installation 20,000$                    Interconnection with Modular Furnaces, installation 40,000$                    Electrical 45,000$                    Mechanical 30,000$                    Distribution Piping, 550 linear feet @ $200/linear foot 110,000$                 SubͲTotal 707,000$                 Contractor Profit 10%70,700$                   SubͲTotal 777,700$                Contingency 10%77,770$                   SubͲTotal 855,470$                Profesional Services 15%128,321$                Total 983,791$                 Notes: 4 Ͳ Estimate is based on competitive bidding. Option 3b ‐ Conceptual Cost Estimate ‐ Main Building, Gymnasium, &  Modular Buildings Dry Fuel Boilers Material handling including vibrating conveyer, shaker screener, two metering bins and  conveyor augers 1 Ͳ The boiler system is to be provided in a containerized preͲpackaged system.  Output range is from ~0.15 Ͳ  0.5 mmBtu/hr.  Pricing is based on a oneͲboiler solution.  There are multiple manufacturers that can provide  varying boiler sizes.  Other boiler sizing combinations to meet a similar output range may also be selected.  2 Ͳ Assumes pipe route as shown.  Connections should be evaluated in additional detail as the project moves  forward. 3 Ͳ Professional Services includes permitting, legal, engineering, & project management. (Assumed that  minimal engineering is required.) WES Energy & Environment Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska  WES Energy & Environment                      Appendix C  20 Year Financing at 4% APR Cash Flow Analysis                                        Appendix C Option 1a ‐ Main Building Wood Pellet Boilers 20 Year, 4% Financing Klawock City Schools Input Variables Value Units Year  #1 Fuel Oil  Cost, Current  System  Wood Pellet  Cost   #1 Fuel Oil  Cost, w/  Wood  System   Added  O&M Cost   Net  Operating  Savings   Annual  Financing  Payment   Net Cash  Flow   Present Value  of Cash Flow  Project Costs Financed 297,781 $149,200$         (34,320)$     (2,464)$          (4,360)$     8,056$        (21,911)$     (13,855)$     (13,855)$          Financing Term 20 # years 2 50,824$         (35,350)$     (2,545)$          (4,491)$     8,438$        (21,911)$     (13,473)$     (13,081)$          Financing Rate (apr)4.0% Percent 3 52,501$         (36,410)$     (2,629)$          (4,626)$     8,836$        (21,911)$     (13,075)$     (12,325)$          Current #1 Fuel Oil Usage 12,000 gal 454,233$         (37,502)$     (2,716)$          (4,764)$     9,250$        (21,911)$     (12,661)$     (11,586)$          Year 1 #1 Fuel Oil Average Price $4.10 $/gal 5 56,023$         (38,627)$     (2,806)$          (4,907)$     9,683$        (21,911)$     (12,229)$     (10,865)$          Proposed Annual Wood Pellet Usage 104 tons/yr 6 57,872$         (39,786)$     (2,898)$          (5,054)$     10,133$     (21,911)$     (11,779)$     (10,160)$          Year 1 Wood Pellet Purchase Price $330 $/ton 7 59,782$         (40,980)$     (2,994)$          (5,206)$     10,602$     (21,911)$     (11,310)$     (9,472)$            Annual #1 Fuel Oil Usage w/ Wood System 601 gal/yr 8 61,754$         (42,209)$     (3,093)$          (5,362)$     11,090$     (21,911)$     (10,821)$     (8,799)$            Fossil Fuel Inflation Rate (apr)3.3% Percent 9 63,792$         (43,476)$     (3,195)$          (5,523)$     11,599$     (21,911)$     (10,313)$     (8,141)$            Wood Pellet Inflation Rate (apr)3.0% Percent 10 65,897$         (44,780)$     (3,300)$          (5,689)$     12,128$     (21,911)$     (9,783)$       (7,498)$            O&M Inflation Rate 3.0% Percent 11 68,072$         (46,123)$     (3,409)$          (5,859)$     12,680$     (21,911)$     (9,231)$       (6,869)$            Discount Rate (apr)3.0% Percent 12 70,318$         (47,507)$     (3,522)$          (6,035)$     13,254$     (21,911)$     (8,657)$       (6,254)$            Added Annual O&M Costs for Biomass Plant 4,360$         $/yr 13 72,639$         (48,932)$     (3,638)$          (6,216)$     13,852$     (21,911)$     (8,059)$       (5,652)$            14 75,036$         (50,400)$     (3,758)$          (6,403)$     14,475$     (21,911)$     (7,436)$       (5,064)$            15 77,512$         (51,912)$     (3,882)$          (6,595)$     15,123$     (21,911)$     (6,788)$       (4,488)$            16 80,070$         (53,469)$     (4,010)$          (6,793)$     15,798$     (21,911)$     (6,114)$       (3,924)$            17 82,712$         (55,074)$     (4,143)$          (6,997)$     16,500$     (21,911)$     (5,411)$       (3,372)$            18 85,442$         (56,726)$     (4,279)$          (7,206)$     17,230$     (21,911)$     (4,681)$       (2,832)$            19 88,261$         (58,428)$     (4,420)$          (7,423)$     17,991$     (21,911)$     (3,920)$       (2,303)$            20 91,174$         (60,180)$     (4,566)$          (7,645)$     18,782$     (21,911)$     (3,129)$       (1,784)$            Present Value (148,324)$        WES Energy & Environment Appendix C Option 1b ‐ Main Bulding Dry Fuel Boilers 20 Year, 4% Financing Klawock City Schools Input Variables Value Units Year  #1 Fuel Oil  Cost, Current  System  Dry Sawdust  Cost   #1 Fuel Oil  Cost, w/  Wood  System   Added  O&M Cost   Net  Operating  Savings   Annual  Financing  Payment   Net Cash  Flow   Present Value  of Cash Flow  Project Costs Financed 721,493 $149,200$          (14,520)$     (4,920)$          (6,220)$     23,540$     (53,089)$     (29,549)$     (28,688)$          Financing Term 20 # years 2 50,824$          (14,956)$     (5,082)$          (6,407)$     24,379$     (53,089)$     (28,710)$     (27,062)$          Financing Rate (apr)4.0% Percent 3 52,501$          (15,404)$     (5,250)$          (6,599)$     25,248$     (53,089)$     (27,841)$     (25,479)$          Current #1 Fuel Oil Usage 12,000 gal 454,233$          (15,866)$     (5,423)$          (6,797)$     26,147$     (53,089)$     (26,942)$     (23,938)$          Year 1 #1 Fuel Oil Average Price $4.10 $/gal 5 56,023$          (16,342)$     (5,602)$          (7,001)$     27,078$     (53,089)$     (26,011)$     (22,437)$          Proposed Annual Dry Sawdust Usage 121 tons/yr 6 57,872$          (16,833)$     (5,787)$          (7,211)$     28,041$     (53,089)$     (25,047)$     (20,977)$          Year 1 Dry Sawdust Purchase Price $120 $/ton 7 59,782$          (17,338)$     (5,978)$          (7,427)$     29,039$     (53,089)$     (24,050)$     (19,555)$          Annual #1 Fuel Oil Usage w/ Wood System 1,200 gal/yr 8 61,754$          (17,858)$     (6,175)$          (7,650)$     30,071$     (53,089)$     (23,017)$     (18,170)$          Fossil Fuel Inflation Rate (apr)3.3% Percent 9 63,792$          (18,394)$     (6,379)$          (7,879)$     31,140$     (53,089)$     (21,949)$     (16,822)$          Sawdust Inflation Rate (apr)3.0% Percent 10 65,897$          (18,945)$     (6,590)$          (8,116)$     32,247$     (53,089)$     (20,842)$     (15,508)$          O&M Inflation Rate 3.0% Percent 11 68,072$          (19,514)$     (6,807)$          (8,359)$     33,392$     (53,089)$     (19,697)$     (14,229)$          Discount Rate (apr)3.0% Percent 12 70,318$          (20,099)$     (7,032)$          (8,610)$     34,577$     (53,089)$     (18,511)$     (12,983)$          Added Annual O&M Costs for Biomass Plant 6,220$         $/yr 13 72,639$          (20,702)$     (7,264)$          (8,868)$     35,805$     (53,089)$     (17,284)$     (11,770)$          14 75,036$          (21,323)$     (7,504)$          (9,134)$     37,075$     (53,089)$     (16,014)$     (10,587)$          15 77,512$          (21,963)$     (7,751)$          (9,408)$     38,390$     (53,089)$     (14,699)$     (9,435)$            16 80,070$          (22,622)$     (8,007)$          (9,691)$     39,751$     (53,089)$     (13,338)$     (8,312)$            17 82,712$          (23,300)$     (8,271)$          (9,981)$     41,159$     (53,089)$     (11,929)$     (7,217)$            18 85,442$          (23,999)$     (8,544)$          (10,281)$   42,618$     (53,089)$     (10,471)$     (6,151)$            19 88,261$          (24,719)$     (8,826)$          (10,589)$   44,127$     (53,089)$     (8,962)$       (5,111)$            20 91,174$          (25,461)$     (9,117)$          (10,907)$   45,689$     (53,089)$     (7,400)$       (4,097)$            Present Value (308,527)$        WES Energy & Environment Appendix C Option 2a ‐ Main Building & Gymnasium Wood Pellet Boilers 20 Year, 4% Financing Klawock City Schools Input Variables Value Units Year  #1 Fuel Oil  Cost, Current  System  Wood Pellet  Cost   #1 Fuel Oil  Cost, w/  Wood  System   Added  O&M Cost   Net  Operating  Savings   Annual  Financing  Payment   Net Cash  Flow   Present Value  of Cash Flow  Project Costs Financed 420,929 $ 1 73,800$          (53,130)$     (3,694)$          (5,650)$     11,326$     (30,973)$     (19,647)$     (19,075)$          Financing Term 20 # years 2 76,235$          (54,724)$     (3,816)$          (5,820)$     11,876$     (30,973)$     (19,097)$     (18,000)$          Financing Rate (apr)4.0% Percent 3 78,751$          (56,366)$     (3,942)$          (5,994)$     12,450$     (30,973)$     (18,523)$     (16,951)$          Current #1 Fuel Oil Usage 18,000 gal 481,350$          (58,057)$     (4,072)$          (6,174)$     13,047$     (30,973)$     (17,925)$     (15,926)$          Year 1 #1 Fuel Oil Average Price $4.10 $/gal 5 84,035$          (59,798)$     (4,206)$          (6,359)$     13,671$     (30,973)$     (17,302)$     (14,925)$          Proposed Annual Wood Pellet Usage 161 tons/yr 6 86,808$          (61,592)$     (4,345)$          (6,550)$     14,320$     (30,973)$     (16,652)$     (13,946)$          Year 1 Wood Pellet Purchase Price $330 $/ton 7 89,672$          (63,440)$     (4,489)$          (6,746)$     14,997$     (30,973)$     (15,975)$     (12,989)$          Annual #1 Fuel Oil Usage w/ Wood System 901 gal/yr 8 92,631$          (65,343)$     (4,637)$          (6,949)$     15,703$     (30,973)$     (15,270)$     (12,054)$          Fossil Fuel Inflation Rate (apr)3.3% Percent 9 95,688$          (67,303)$     (4,790)$          (7,157)$     16,438$     (30,973)$     (14,535)$     (11,140)$          Wood Pellet Inflation Rate (apr)3.0% Percent 10 98,846$          (69,323)$     (4,948)$          (7,372)$     17,204$     (30,973)$     (13,769)$     (10,245)$          O&M Inflation Rate 3.0% Percent 11 102,108$       (71,402)$     (5,111)$          (7,593)$     18,001$     (30,973)$     (12,971)$     (9,371)$            Discount Rate (apr)3.0% Percent 12 105,478$       (73,544)$     (5,280)$          (7,821)$     18,833$     (30,973)$     (12,140)$     (8,515)$            Added Annual O&M Costs for Biomass Plant 5,650$         $/yr 13 108,958$       (75,751)$     (5,454)$          (8,056)$     19,698$     (30,973)$     (11,275)$     (7,677)$            14 112,554$       (78,023)$     (5,634)$          (8,297)$     20,600$     (30,973)$     (10,373)$     (6,858)$            15 116,268$       (80,364)$     (5,820)$          (8,546)$     21,538$     (30,973)$     (9,434)$       (6,056)$            16 120,105$       (82,775)$     (6,012)$          (8,803)$     22,516$     (30,973)$     (8,457)$       (5,270)$            17 124,068$       (85,258)$     (6,210)$          (9,067)$     23,534$     (30,973)$     (7,439)$       (4,501)$            18 128,163$       (87,816)$     (6,415)$          (9,339)$     24,593$     (30,973)$     (6,380)$       (3,747)$            19 132,392$       (90,450)$     (6,627)$          (9,619)$     25,696$     (30,973)$     (5,277)$       (3,009)$            20 136,761$       (93,164)$     (6,846)$          (9,907)$     26,844$     (30,973)$     (4,128)$       (2,286)$            Present Value (202,542)$        WES Energy & Environment Appendix C Option 2b ‐ Main Bulding & Gymnasium Dry Fuel Boilers 20 Year, 4% Financing Klawock City Schools Input Variables Value Units Year  #1 Fuel Oil  Cost, Current  System  Dry Sawdust  Cost   #1 Fuel Oil  Cost, w/  Wood  System   Added  O&M Cost   Net  Operating  Savings   Annual  Financing  Payment   Net Cash  Flow   Present Value  of Cash Flow  Project Costs Financed 858,556 $173,800$          (22,560)$     (7,380)$          (7,430)$     36,430$     (63,174)$     (26,744)$     (25,965)$          Financing Term 20 # years 2 76,235$          (23,237)$     (7,624)$          (7,653)$     37,722$     (63,174)$     (25,452)$     (23,991)$          Financing Rate (apr)4.0% Percent 3 78,751$          (23,934)$     (7,875)$          (7,882)$     39,060$     (63,174)$     (24,114)$     (22,068)$          Current #1 Fuel Oil Usage 18,000 gal 481,350$          (24,652)$     (8,135)$          (8,119)$     40,444$     (63,174)$     (22,730)$     (20,195)$          Year 1 #1 Fuel Oil Average Price $4.10 $/gal 5 84,035$          (25,391)$     (8,403)$          (8,363)$     41,877$     (63,174)$     (21,297)$     (18,371)$          Proposed Annual Dry Sawdust Usage 188 tons/yr 6 86,808$          (26,153)$     (8,681)$          (8,613)$     43,360$     (63,174)$     (19,814)$     (16,594)$          Year 1 Dry Sawdust Purchase Price $120 $/ton 7 89,672$          (26,938)$     (8,967)$          (8,872)$     44,895$     (63,174)$     (18,279)$     (14,862)$          Annual #1 Fuel Oil Usage w/ Wood System 1,800 gal/yr 8 92,631$          (27,746)$     (9,263)$          (9,138)$     46,484$     (63,174)$     (16,690)$     (13,175)$          Fossil Fuel Inflation Rate (apr)3.3% Percent 9 95,688$          (28,578)$     (9,569)$          (9,412)$     48,129$     (63,174)$     (15,045)$     (11,531)$          Sawdust Inflation Rate (apr)3.0% Percent 10 98,846$          (29,436)$     (9,885)$          (9,694)$     49,831$     (63,174)$     (13,343)$     (9,928)$            O&M Inflation Rate 3.0% Percent 11 102,108$       (30,319)$     (10,211)$      (9,985)$     51,593$     (63,174)$     (11,581)$     (8,366)$            Discount Rate (apr)3.0% Percent 12 105,478$       (31,228)$     (10,548)$      (10,285)$   53,417$     (63,174)$     (9,757)$       (6,844)$            Added Annual O&M Costs for Biomass Plant 7,430$         $/yr 13 108,958$       (32,165)$     (10,896)$      (10,593)$   55,304$     (63,174)$     (7,870)$       (5,359)$            14 112,554$       (33,130)$     (11,255)$      (10,911)$   57,257$     (63,174)$     (5,917)$       (3,912)$            15 116,268$       (34,124)$     (11,627)$      (11,239)$   59,279$     (63,174)$     (3,895)$       (2,500)$            16 120,105$       (35,148)$     (12,011)$      (11,576)$   61,371$     (63,174)$     (1,803)$       (1,124)$            17 124,068$       (36,202)$     (12,407)$      (11,923)$   63,536$     (63,174)$     362$           219$                 18 128,163$       (37,288)$     (12,816)$      (12,281)$   65,778$     (63,174)$     2,604$        1,529$              19 132,392$       (38,407)$     (13,239)$      (12,649)$   68,097$     (63,174)$     4,923$        2,807$              20 136,761$       (39,559)$     (13,676)$      (13,029)$   70,497$     (63,174)$     7,323$        4,055$              Present Value (196,174)$        WES Energy & Environment Appendix C Option 3a ‐ Main Building, Gymnasium, & Modular Buildings Wood Pellet Boilers 20 Year, 4% Financing Klawock City Schools Input Variables Value Units Year  #1 Fuel Oil  Cost, Current  System  Wood Pellet  Cost   #1 Fuel Oil  Cost, w/  Wood  System   Added  O&M Cost   Net  Operating  Savings   Annual  Financing  Payment   Net Cash  Flow   Present Value  of Cash Flow  Project Costs Financed 573,994 $ 1 80,360$          (58,740)$     (4,022)$          (6,820)$     10,778$     (42,235)$     (31,458)$     (30,541)$          Financing Term 20 # years 2 83,012$          (60,502)$     (4,155)$          (7,025)$     11,330$     (42,235)$     (30,905)$     (29,131)$          Financing Rate (apr)4.0% Percent 3 85,751$          (62,317)$     (4,292)$          (7,235)$     11,907$     (42,235)$     (30,329)$     (27,755)$          Current #1 Fuel Oil Usage 19,600 gal 488,581$          (64,187)$     (4,434)$          (7,452)$     12,508$     (42,235)$     (29,727)$     (26,412)$          Year 1 #1 Fuel Oil Average Price $4.10 $/gal 5 91,504$          (66,112)$     (4,580)$          (7,676)$     13,136$     (42,235)$     (29,099)$     (25,101)$          Proposed Annual Wood Pellet Usage 178 tons/yr 6 94,524$          (68,096)$     (4,731)$          (7,906)$     13,791$     (42,235)$     (28,445)$     (23,822)$          Year 1 Wood Pellet Purchase Price $330 $/ton 7 97,643$          (70,139)$     (4,887)$          (8,143)$     14,474$     (42,235)$     (27,762)$     (22,573)$          Annual #1 Fuel Oil Usage w/ Wood System 981 gal/yr 8 100,865$       (72,243)$     (5,048)$          (8,388)$     15,186$     (42,235)$     (27,049)$     (21,353)$          Fossil Fuel Inflation Rate (apr)3.3% Percent 9 104,194$       (74,410)$     (5,215)$          (8,639)$     15,929$     (42,235)$     (26,306)$     (20,161)$          Wood Pellet Inflation Rate (apr)3.0% Percent 10 107,632$       (76,642)$     (5,387)$          (8,899)$     16,704$     (42,235)$     (25,531)$     (18,998)$          O&M Inflation Rate 3.0% Percent 11 111,184$       (78,942)$     (5,565)$          (9,166)$     17,512$     (42,235)$     (24,723)$     (17,861)$          Discount Rate (apr)3.0% Percent 12 114,853$       (81,310)$     (5,749)$          (9,440)$     18,354$     (42,235)$     (23,881)$     (16,750)$          Added Annual O&M Costs for Biomass Plant 6,820$         $/yr 13 118,643$       (83,749)$     (5,938)$          (9,724)$     19,232$     (42,235)$     (23,003)$     (15,664)$          14 122,559$       (86,262)$     (6,134)$          (10,015)$   20,147$     (42,235)$     (22,088)$     (14,603)$          15 126,603$       (88,850)$     (6,337)$          (10,316)$   21,101$     (42,235)$     (21,134)$     (13,565)$          16 130,781$       (91,515)$     (6,546)$          (10,625)$   22,095$     (42,235)$     (20,141)$     (12,551)$          17 135,097$       (94,260)$     (6,762)$          (10,944)$   23,131$     (42,235)$     (19,105)$     (11,559)$          18 139,555$       (97,088)$     (6,985)$          (11,272)$   24,209$     (42,235)$     (18,026)$     (10,588)$          19 144,160$       (100,001)$   (7,215)$          (11,611)$   25,333$     (42,235)$     (16,902)$     (9,639)$            20 148,918$       (103,001)$   (7,453)$          (11,959)$   26,504$     (42,235)$     (15,731)$     (8,710)$            Present Value (377,337)$        WES Energy & Environment Appendix C Option 3b ‐ Main Building, Gymnasium, & Modular Buildings Dry Fuel Boilers 20 Year, 4% Financing Klawock City Schools Input Variables Value Units Year  #1 Fuel Oil  Cost, Current  System  Dry Sawdust  Cost   #1 Fuel Oil  Cost, w/  Wood  System   Added  O&M Cost   Net  Operating  Savings   Annual  Financing  Payment   Net Cash  Flow   Present Value  of Cash Flow  Project Costs Financed 983,791 $180,360$          (24,960)$     (8,036)$          (7,530)$     39,834$     (72,389)$     (32,555)$     (31,607)$          Financing Term 20 # years 2 83,012$          (25,709)$     (8,301)$          (7,756)$     41,246$     (72,389)$     (31,143)$     (29,355)$          Financing Rate (apr)4.0% Percent 3 85,751$          (26,480)$     (8,575)$          (7,989)$     42,708$     (72,389)$     (29,682)$     (27,163)$          Current #1 Fuel Oil Usage 19,600 gal 488,581$          (27,274)$     (8,858)$          (8,228)$     44,220$     (72,389)$     (28,169)$     (25,028)$          Year 1 #1 Fuel Oil Average Price $4.10 $/gal 5 91,504$          (28,093)$     (9,150)$          (8,475)$     45,786$     (72,389)$     (26,603)$     (22,948)$          Proposed Annual Dry Sawdust Usage 208 tons/yr 6 94,524$          (28,935)$     (9,452)$          (8,729)$     47,407$     (72,389)$     (24,982)$     (20,922)$          Year 1 Dry Sawdust Purchase Price $120 $/ton 7 97,643$          (29,804)$     (9,764)$          (8,991)$     49,084$     (72,389)$     (23,305)$     (18,949)$          Annual #1 Fuel Oil Usage w/ Wood System 1,960 gal/yr 8 100,865$       (30,698)$     (10,087)$      (9,261)$     50,820$     (72,389)$     (21,569)$     (17,027)$          Fossil Fuel Inflation Rate (apr)3.3% Percent 9 104,194$       (31,619)$     (10,419)$      (9,539)$     52,617$     (72,389)$     (19,772)$     (15,153)$          Sawdust Inflation Rate (apr)3.0% Percent 10 107,632$       (32,567)$     (10,763)$      (9,825)$     54,477$     (72,389)$     (17,912)$     (13,328)$          O&M Inflation Rate 3.0% Percent 11 111,184$       (33,544)$     (11,118)$      (10,120)$   56,402$     (72,389)$     (15,987)$     (11,549)$          Discount Rate (apr)3.0% Percent 12 114,853$       (34,550)$     (11,485)$      (10,423)$   58,394$     (72,389)$     (13,995)$     (9,816)$            Added Annual O&M Costs for Biomass Plant 7,530$         $/yr 13 118,643$       (35,587)$     (11,864)$      (10,736)$   60,456$     (72,389)$     (11,933)$     (8,126)$            14 122,559$       (36,655)$     (12,256)$      (11,058)$   62,590$     (72,389)$     (9,799)$       (6,478)$            15 126,603$       (37,754)$     (12,660)$      (11,390)$   64,799$     (72,389)$     (7,590)$       (4,872)$            16 130,781$       (38,887)$     (13,078)$      (11,731)$   67,085$     (72,389)$     (5,304)$       (3,306)$            17 135,097$       (40,053)$     (13,510)$      (12,083)$   69,450$     (72,389)$     (2,939)$       (1,778)$            18 139,555$       (41,255)$     (13,955)$      (12,446)$   71,898$     (72,389)$     (491)$          (288)$                19 144,160$       (42,493)$     (14,416)$      (12,819)$   74,432$     (72,389)$     2,043$        1,165$              20 148,918$       (43,768)$     (14,892)$      (13,204)$   77,054$     (72,389)$     4,665$        2,583$              Present Value (263,944)$        WES Energy & Environment Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska  WES Energy & Environment                              Appendix D  Sensitivity Analysis of Estimated Annual Operating Savings   to Oil and Biomass Fuel Prices                               Appendix D Option 1a ‐ Main Building Wood Pellet Boilers Sensitivity Analysis of 1st Year Operating Savings to Fuel Costs Klawock City Schools 8,056$  $3.50 $3.75 $4.00 $4.10 $4.25 $4.50 $4.75 $5.00 $225 $12,137 $14,986 $17,836 $18,976 $20,686 $23,536 $26,385 $29,235 $250 $9,537 $12,386 $15,236 $16,376 $18,086 $20,936 $23,785 $26,635 $275 $6,937 $9,786 $12,636 $13,776 $15,486 $18,336 $21,185 $24,035 $300 $4,337 $7,186 $10,036 $11,176 $12,886 $15,736 $18,585 $21,435 $330 $1,217 $4,066 $6,916 $8,056 $9,766 $12,616 $15,465 $18,315 $350 ($864) $1,986 $4,836 $5,976 $7,686 $10,536 $13,385 $16,235 $375 ($3,464) ($614) $2,236 $3,376 $5,086 $7,936 $10,785 $13,635 *Note: Excludes financing costs. Price of Fuel Oil per Gallon Price of Wood Pellets per TonWES Energy & Environment Appendix D Option 1b ‐ Main Bulding Dry Fuel Boilers Sensitivity Analysis of 1st Year Operating Savings to Fuel Costs Klawock City Schools 23,540$    $3.50 $3.75 $4.00 $4.10 $4.25 $4.50 $4.75 $5.00 $25 $28,555 $31,255 $33,955 $35,035 $36,655 $39,355 $42,055 $44,755 $50 $25,530 $28,230 $30,930 $32,010 $33,630 $36,330 $39,030 $41,730 $75 $22,505 $25,205 $27,905 $28,985 $30,605 $33,305 $36,005 $38,705 $100 $19,480 $22,180 $24,880 $25,960 $27,580 $30,280 $32,980 $35,680 $120 $17,060 $19,760 $22,460 $23,540 $25,160 $27,860 $30,560 $33,260 $150 $13,430 $16,130 $18,830 $19,910 $21,530 $24,230 $26,930 $29,630 $175 $10,405 $13,105 $15,805 $16,885 $18,505 $21,205 $23,905 $26,605 *Note: Excludes financing costs. Price of Fuel Oil per Gallon Price of Wood Pellets per TonWES Energy & Environment Appendix D Option 2a ‐ Main Building & Gymnasium Wood Pellet Boilers Sensitivity Analysis of 1st Year Operating Savings to Fuel Costs Klawock City Schools 11,326$    $3.50 $3.75 $4.00 $4.10 $4.25 $4.50 $4.75 $5.00 $225 $17,972 $22,246 $26,521 $28,231 $30,796 $35,071 $39,345 $43,620 $250 $13,947 $18,221 $22,496 $24,206 $26,771 $31,046 $35,320 $39,595 $275 $9,922 $14,196 $18,471 $20,181 $22,746 $27,021 $31,295 $35,570 $300 $5,897 $10,171 $14,446 $16,156 $18,721 $22,996 $27,270 $31,545 $330 $1,067 $5,341 $9,616 $11,326 $13,891 $18,166 $22,440 $26,715 $350 ($2,154) $2,121 $6,396 $8,106 $10,671 $14,946 $19,220 $23,495 $375 ($6,179) ($1,904) $2,371 $4,081 $6,646 $10,921 $15,195 $19,470 *Note: Excludes financing costs. Price of Fuel Oil per Gallon Price of Wood Pellets ‐ per TonWES Energy & Environment Appendix D Option 2b ‐ Main Bulding & Gymnasium Dry Fuel Boilers Sensitivity Analysis of 1st Year Operating Savings to Fuel Costs Klawock City Schools 36,430$    $3.50 $3.75 $4.00 $4.10 $4.25 $4.50 $4.75 $5.00 $25 $44,570 $48,620 $52,670 $54,290 $56,720 $60,770 $64,820 $68,870 $50 $39,870 $43,920 $47,970 $49,590 $52,020 $56,070 $60,120 $64,170 $75 $35,170 $39,220 $43,270 $44,890 $47,320 $51,370 $55,420 $59,470 $100 $30,470 $34,520 $38,570 $40,190 $42,620 $46,670 $50,720 $54,770 $120 $26,710 $30,760 $34,810 $36,430 $38,860 $42,910 $46,960 $51,010 $150 $21,070 $25,120 $29,170 $30,790 $33,220 $37,270 $41,320 $45,370 $175 $16,370 $20,420 $24,470 $26,090 $28,520 $32,570 $36,620 $40,670 *Note: Excludes financing costs. Price of Fuel Oil per Gallon Price of Wood Pellets ‐ per TonWES Energy & Environment Appendix D Option 3a ‐ Main Building, Gymnasium, & Modular Buildings Wood Pellet Boilers Sensitivity Analysis of 1st Year Operating Savings to Fuel Costs Klawock City Schools 10,778$    $3.50 $3.75 $4.00 $4.10 $4.25 $4.50 $4.75 $5.00 $225 $17,972 $22,246 $26,521 $28,231 $30,796 $35,071 $39,345 $43,620 $250 $13,947 $18,221 $22,496 $24,206 $26,771 $31,046 $35,320 $39,595 $275 $9,922 $14,196 $18,471 $20,181 $22,746 $27,021 $31,295 $35,570 $300 $5,897 $10,171 $14,446 $16,156 $18,721 $22,996 $27,270 $31,545 $330 $1,067 $5,341 $9,616 $11,326 $13,891 $18,166 $22,440 $26,715 $350 ($2,154) $2,121 $6,396 $8,106 $10,671 $14,946 $19,220 $23,495 $375 ($6,179) ($1,904) $2,371 $4,081 $6,646 $10,921 $15,195 $19,470 *Note: Excludes financing costs. Price of Fuel Oil per Gallon Price of Wood Pellets ‐ per TonWES Energy & Environment Appendix D Option 3b ‐ Main Building, Gymnasium, & Modular Buildings Dry Fuel Boilers Sensitivity Analysis of 1st Year Operating Savings to Fuel Costs Klawock City Schools perating Sa $3.50 $3.75 $4.00 $4.10 $4.25 $4.50 $4.75 $5.00 $25 $44,570 $48,620 $52,670 $54,290 $56,720 $60,770 $64,820 $68,870 $50 $39,870 $43,920 $47,970 $49,590 $52,020 $56,070 $60,120 $64,170 $75 $35,170 $39,220 $43,270 $44,890 $47,320 $51,370 $55,420 $59,470 $100 $30,470 $34,520 $38,570 $40,190 $42,620 $46,670 $50,720 $54,770 $120 $26,710 $30,760 $34,810 $36,430 $38,860 $42,910 $46,960 $51,010 $150 $21,070 $25,120 $29,170 $30,790 $33,220 $37,270 $41,320 $45,370 $175 $16,370 $20,420 $24,470 $26,090 $28,520 $32,570 $36,620 $40,670 *Note: Excludes financing costs. Price of Fuel Oil per Gallon Price of Wood Pellets ‐ per TonWES Energy & Environment Biomass Prefeasibility Report Date: August 26, 2014 Klawock School District   FINAL Klawock, Alaska  WES Energy & Environment                        Appendix E  Alaska Department of Education & Early Development  20 Year Life Cycle Cost Analysis    Life Cycle Cost Analysis - Summary District:Klawock City Schools School:Main Building and Gymnasium Project:Biomass Heating System Project #:N/A Study Period:20 Discount Rate:3.00% Alternate #1 Alternate #2 Alternate #3 Initial Investment Cost $0 $420,929 $858,556 Operations Cost $1,097,958 $906,891 $526,212 Maintenance & Repair Cost $7,439 $22,316 $29,755 Replacement Cost $74,409 $0 $0 Residual Value $0 $0 $0 Total Life Cycle Cost $1,179,806 $1,350,136 $1,414,522 GSF of Project 43,780 GSF 43,780 GSF 43,780 GSF Initial Cost/GSF $0.00 $9.61 $19.61 LCC/GSF $26.95 $30.84 $32.31 Life Cycle Costs of Project Alternatives 1 of 1 Life Cycle Cost Analysis - Alternate #1 (Existing Oil Boilers) District:Klawock City Schools School:Main Building and Gymnasium Project:Biomass Heating System Project #:N/A GSF:43,780 GSF Quantity Unit Unit Cost Total Cost Years Present Value Initial Expenses Initial Investment Cost (one time start-up costs) Construction Management 1 LPSM $0 $0 0 $0 Land Acquisition 1 LPSM $0 $0 0 $0 Site Investigation 1 LPSM $0 $0 0 $0 Design Services 1 LPSM $0 $0 0 $0 Construction 1 LPSM $0 $0 0 $0 Equipment 1 LPSM $0 $0 0 $0 Technology 1 LPSM $0 $0 0 $0 Indirect/Administration 1 LPSM $0 $0 0 $0 Art 1 LPSM $0 $0 0 $0 Contingency 1 LPSM $0 $0 0 $0 Future Expenses Operations Cost (annual costs) Heating Fuel 18,000 GALS $4.10 $73,800 20 $1,097,958 Electricity 0 KWH $0.23 $0 20 $0 Water and Sewer 0 LPSM $0 $0 20 $0 Garbage Disposal 0 LPSM $490 $0 20 $0 Custodial 0 LPSM $0 $0 20 $0 Grounds 0 LPSM $0 $0 20 $0 Lease 0 LPSM $0 $0 20 $0 Insurance 0 LPSM $0 $0 20 $0 Other 0 LPSM $330 $0 20 $0 Maintenance & Repair Cost (upkeep costs…estimate on annual basis) Site Improvements 0 LPSM $0 $0 20 $0 Site Utilities 0 LPSM $0 $0 20 $0 Foundation/Substructure 0 GSF $0.00 $0 20 $0 Superstructure 0 GSF $0.00 $0 20 $0 Exterior Wall Systems 0 EWSF $0.00 $0 20 $0 Exterior Windows 0 GLSF $0.00 $0 20 $0 Exterior Doors 0 LEAF $0.00 $0 20 $0 Roof Systems 0 RFSF $0.00 $0 20 $0 Interior Partitions 0 PTSF $0.00 $0 20 $0 Interior Doors 0 LEAF $0.00 $0 20 $0 Interior Floor Finishes 0 FFSF $0.00 $0 20 $0 Interior Wall Finishes 0 WFSF $0.00 $0 20 $0 Interior Ceiling Finishes 0 CFSF $0.00 $0 20 $0 Interior Specialities 0 GSF $0.00 $0 20 $0 Conveying Systems 0 LPSM $0 $0 20 $0 Plumbing Piping 0 GSF $0.00 $0 20 $0 Plumbing Fixtures 0 FIXT $0.00 $0 20 $0 Fire Protection Systems 0 GSF $0.00 $0 20 $0 HVAC Distribution 0 GSF $0.00 $0 20 $0 HVAC Equipment 1 LPSM $500 $500 20 $7,439 HVAC Controls 0 GSF $0.00 $0 20 $0 Special Mechanical Systems 0 GSF $0.00 $0 20 $0 1 of 3 Life Cycle Cost Analysis - Alternate #1 (Existing Oil Boilers) District:Klawock City Schools School:Main Building and Gymnasium Project:Biomass Heating System Project #:N/A GSF:43,780 GSF Quantity Unit Unit Cost Total Cost Years Present Value Electrical Service/Generation 0 LPSM $0 $0 20 $0 Electrical Distribution 0 GSF $0.00 $0 20 $0 Electrical Lighting 0 GSF $0.00 $0 20 $0 Special Electrical Systems 0 GSF $0.00 $0 20 $0 Equipment & Furnishings 0 LPSM $1,500 $0 20 $0 Other 0 LPSM $0 $0 20 $0 Replacement Cost (scheduled replacement of building system or component) Site Improvements 0 LPSM $0 $0 1 $0 Site Utilities 0 LPSM $0 $0 1 $0 Foundation/Substructure 0 GSF $0.00 $0 1 $0 Superstructure 0 GSF $0.00 $0 1 $0 Exterior Wall Systems 0 EWSF $0.00 $0 1 $0 Exterior Windows 0 GLSF $0.00 $0 1 $0 Exterior Doors 0 LEAF $0.00 $0 1 $0 Roof Systems 0 RFSF $0.00 $0 1 $0 Interior Partitions 0 PTSF $0.00 $0 1 $0 Interior Doors 0 LEAF $0.00 $0 1 $0 Interior Floor Finishes 0 FFSF $0.00 $0 1 $0 Interior Wall Finishes 0 WFSF $0.00 $0 1 $0 Interior Ceiling Finishes 0 CFSF $0.00 $0 1 $0 Interior Specialities 0 GSF $0.00 $0 1 $0 Conveying Systems 0 LPSM $0 $0 1 $0 Plumbing Piping 0 GSF $0.00 $0 1 $0 Plumbing Fixtures 0 FIXT $0.00 $0 1 $0 Fire Protection Systems 0 GSF $0.00 $0 1 $0 HVAC Distribution 0 GSF $0.00 $0 1 $0 HVAC Equipment 1 LPSM $100,000 $100,000 10 $74,409 HVAC Controls 0 GSF $0.00 $0 1 $0 Special Mechanical Systems 0 GSF $0.00 $0 1 $0 Electrical Service/Generation 0 LPSM $0 $0 1 $0 Electrical Distribution 0 GSF $0.00 $0 1 $0 Electrical Lighting 0 GSF $0.00 $0 1 $0 Special Electrical Systems 0 GSF $0.00 $0 1 $0 Equipment & Furnishings 0 LPSM $0 $0 1 $0 Other 0 LPSM $0 $0 1 $0 Residual Value (value of facility at end of study period) Site Improvements 0 LPSM $0 $0 1 $0 Site Utilities 0 LPSM $0 $0 1 $0 Foundation/Substructure 0 GSF $0.00 $0 1 $0 Superstructure 0 GSF $0.00 $0 1 $0 Exterior Wall Systems 0 EWSF $0.00 $0 1 $0 Exterior Windows 0 GLSF $0.00 $0 1 $0 Exterior Doors 0 LEAF $0.00 $0 1 $0 Roof Systems 0 RFSF $0.00 $0 1 $0 Interior Partitions 0 PTSF $0.00 $0 1 $0 Interior Doors 0 LEAF $0.00 $0 1 $0 Interior Floor Finishes 0 FFSF $0.00 $0 1 $0 Interior Wall Finishes 0 WFSF $0.00 $0 1 $0 Interior Ceiling Finishes 0 CFSF $0.00 $0 1 $0 Interior Specialities 0 GSF $0.00 $0 1 $0 2 of 3 Life Cycle Cost Analysis - Alternate #1 (Existing Oil Boilers) District:Klawock City Schools School:Main Building and Gymnasium Project:Biomass Heating System Project #:N/A GSF:43,780 GSF Quantity Unit Unit Cost Total Cost Years Present Value Conveying Systems 0 LPSM $0 $0 1 $0 Plumbing Piping 0 GSF $0.00 $0 1 $0 Plumbing Fixtures 0 FIXT $0.00 $0 1 $0 Fire Protection Systems 0 GSF $0.00 $0 1 $0 HVAC Distribution 0 GSF $0.00 $0 1 $0 HVAC Equipment 1 LPSM $50,000 $50,000 1 $0 HVAC Controls 0 GSF $0.00 $0 1 $0 Special Mechanical Systems 0 GSF $0.00 $0 1 $0 Electrical Service/Generation 0 LPSM $0 $0 1 $0 Electrical Distribution 0 GSF $0.00 $0 1 $0 Electrical Lighting 0 GSF $0.00 $0 1 $0 Special Electrical Systems 0 GSF $0.00 $0 1 $0 Equipment & Furnishings 0 LPSM $0 $0 1 $0 Other 0 LPSM $0 $0 1 $0 Total Life Cycle of Alternate #1 $1,179,806 3 of 3 Life Cycle Cost Analysis - Alternate #2 (Opt. 2a Wood Pellet System) District:Klawock City Schools School:Main Building and Gymnasium Project:Biomass Heating System Project #:N/A GSF:43,780 GSF Quantity Unit Unit Cost Total Cost Years Present Value Initial Expenses Initial Investment Cost (one time start-up costs) Construction Management 1 LPSM $18,301 $18,301 0 $18,301 Land Acquisition 1 LPSM $0 $0 0 $0 Site Investigation 1 LPSM $0 $0 0 $0 Design Services 1 LPSM $36,603 $36,603 0 $36,603 Construction 1 LPSM $80,250 $80,250 0 $80,250 Equipment 1 LPSM $252,500 $252,500 0 $252,500 Technology 1 LPSM $0 $0 0 $0 Indirect/Administration 1 LPSM $0 $0 0 $0 Art 1 LPSM $0 $0 0 $0 Contingency 1 LPSM $33,275 $33,275 0 $33,275 Future Expenses Operations Cost (annual costs) Heating Fuel 901 GALS $4.10 $3,694 20 $54,959 Electricity 15,840 KWH $0.23 $3,643 20 $54,202 Water and Sewer 0 LPSM $0 $0 20 $0 Garbage Disposal 1 LPSM $490 $490 20 $7,290 Custodial 0 LPSM $0 $0 20 $0 Grounds 0 LPSM $0 $0 20 $0 Lease 0 LPSM $0 $0 20 $0 Insurance 0 LPSM $0 $0 20 $0 Other 161 LPSM $330 $53,130 20 $790,440 Maintenance & Repair Cost (upkeep costs…estimate on annual basis) Site Improvements 1 LPSM $0 $0 20 $0 Site Utilities 1 LPSM $0 $0 20 $0 Foundation/Substructure 43,780 GSF $0.00 $0 20 $0 Superstructure 43,780 GSF $0.00 $0 20 $0 Exterior Wall Systems 1 EWSF $0.00 $0 20 $0 Exterior Windows 1 GLSF $0.00 $0 20 $0 Exterior Doors 1 LEAF $0.00 $0 20 $0 Roof Systems 1 RFSF $0.00 $0 20 $0 Interior Partitions 1 PTSF $0.00 $0 20 $0 Interior Doors 1 LEAF $0.00 $0 20 $0 Interior Floor Finishes 1 FFSF $0.00 $0 20 $0 Interior Wall Finishes 1 WFSF $0.00 $0 20 $0 Interior Ceiling Finishes 1 CFSF $0.00 $0 20 $0 Interior Specialities 43,780 GSF $0.00 $0 20 $0 Conveying Systems 1 LPSM $0 $0 20 $0 Plumbing Piping 43,780 GSF $0.00 $0 20 $0 Plumbing Fixtures 1 FIXT $0.00 $0 20 $0 Fire Protection Systems 43,780 GSF $0.00 $0 20 $0 HVAC Distribution 43,780 GSF $0.00 $0 20 $0 1 of 3 Life Cycle Cost Analysis - Alternate #2 (Opt. 2a Wood Pellet System) District:Klawock City Schools School:Main Building and Gymnasium Project:Biomass Heating System Project #:N/A GSF:43,780 GSF Quantity Unit Unit Cost Total Cost Years Present Value HVAC Equipment 1 LPSM $0 $0 20 $0 HVAC Controls 43,780 GSF $0.00 $0 20 $0 Special Mechanical Systems 43,780 GSF $0.00 $0 20 $0 Electrical Service/Generation 1 LPSM $0 $0 20 $0 Electrical Distribution 43,780 GSF $0.00 $0 20 $0 Electrical Lighting 43,780 GSF $0.00 $0 20 $0 Special Electrical Systems 43,780 GSF $0.00 $0 20 $0 Equipment & Furnishings 1 LPSM $1,500 $1,500 20 $22,316 Other 1 LPSM $0 $0 20 $0 Replacement Cost (scheduled replacement of building system or component) Site Improvements 1 LPSM $0 $0 1 $0 Site Utilities 1 LPSM $0 $0 1 $0 Foundation/Substructure 43,780 GSF $0.00 $0 1 $0 Superstructure 43,780 GSF $0.00 $0 1 $0 Exterior Wall Systems 1 EWSF $0.00 $0 1 $0 Exterior Windows 1 GLSF $0.00 $0 1 $0 Exterior Doors 1 LEAF $0.00 $0 1 $0 Roof Systems 1 RFSF $0.00 $0 1 $0 Interior Partitions 1 PTSF $0.00 $0 1 $0 Interior Doors 1 LEAF $0.00 $0 1 $0 Interior Floor Finishes 1 FFSF $0.00 $0 1 $0 Interior Wall Finishes 1 WFSF $0.00 $0 1 $0 Interior Ceiling Finishes 1 CFSF $0.00 $0 1 $0 Interior Specialities 43,780 GSF $0.00 $0 1 $0 Conveying Systems 1 LPSM $0 $0 1 $0 Plumbing Piping 43,780 GSF $0.00 $0 1 $0 Plumbing Fixtures 1 FIXT $0.00 $0 1 $0 Fire Protection Systems 43,780 GSF $0.00 $0 1 $0 HVAC Distribution 43,780 GSF $0.00 $0 1 $0 HVAC Equipment 1 LPSM $0 $0 1 $0 HVAC Controls 43,780 GSF $0.00 $0 1 $0 Special Mechanical Systems 43,780 GSF $0.00 $0 1 $0 Electrical Service/Generation 1 LPSM $0 $0 1 $0 Electrical Distribution 43,780 GSF $0.00 $0 1 $0 Electrical Lighting 43,780 GSF $0.00 $0 1 $0 Special Electrical Systems 43,780 GSF $0.00 $0 1 $0 Equipment & Furnishings 1 LPSM $0 $0 1 $0 Other 1 LPSM $0 $0 1 $0 Residual Value (value of facility at end of study period) Site Improvements 1 LPSM $0 $0 1 $0 Site Utilities 1 LPSM $0 $0 1 $0 Foundation/Substructure 43,780 GSF $0.00 $0 1 $0 Superstructure 43,780 GSF $0.00 $0 1 $0 Exterior Wall Systems 1 EWSF $0.00 $0 1 $0 Exterior Windows 1 GLSF $0.00 $0 1 $0 Exterior Doors 1 LEAF $0.00 $0 1 $0 Roof Systems 1 RFSF $0.00 $0 1 $0 Interior Partitions 1 PTSF $0.00 $0 1 $0 2 of 3 Life Cycle Cost Analysis - Alternate #2 (Opt. 2a Wood Pellet System) District:Klawock City Schools School:Main Building and Gymnasium Project:Biomass Heating System Project #:N/A GSF:43,780 GSF Quantity Unit Unit Cost Total Cost Years Present Value Interior Doors 1 LEAF $0.00 $0 1 $0 Interior Floor Finishes 1 FFSF $0.00 $0 1 $0 Interior Wall Finishes 1 WFSF $0.00 $0 1 $0 Interior Ceiling Finishes 1 CFSF $0.00 $0 1 $0 Interior Specialities 43,780 GSF $0.00 $0 1 $0 Conveying Systems 1 LPSM $0 $0 1 $0 Plumbing Piping 43,780 GSF $0.00 $0 1 $0 Plumbing Fixtures 1 FIXT $0.00 $0 1 $0 Fire Protection Systems 43,780 GSF $0.00 $0 1 $0 HVAC Distribution 43,780 GSF $0.00 $0 1 $0 HVAC Equipment 1 LPSM $0 $0 1 $0 HVAC Controls 43,780 GSF $0.00 $0 1 $0 Special Mechanical Systems 43,780 GSF $0.00 $0 1 $0 Electrical Service/Generation 1 LPSM $0 $0 1 $0 Electrical Distribution 43,780 GSF $0.00 $0 1 $0 Electrical Lighting 43,780 GSF $0.00 $0 1 $0 Special Electrical Systems 43,780 GSF $0.00 $0 1 $0 Equipment & Furnishings 1 LPSM $0 $0 1 $0 Other 1 LPSM $0 $0 1 $0 Total Life Cycle of Alternate #1 $1,350,136 3 of 3 Life Cycle Cost Analysis - Alternate #3 (Opt. 2b Dry Fuel System) District:Klawock City Schools School:Main Building and Gymnasium Project:Biomass Heating System Project #:N/A GSF:43,780 GSF Quantity Unit Unit Cost Total Cost Years Present Value Initial Expenses Initial Investment Cost (one time start-up costs) Construction Management 1 LPSM $37,329 $37,329 0 $37,329 Land Acquisition 1 LPSM $0 $0 0 $0 Site Investigation 1 LPSM $0 $0 0 $0 Design Services 1 LPSM $74,657 $74,657 0 $74,657 Construction 1 LPSM $176,700 $176,700 0 $176,700 Equipment 1 LPSM $502,000 $502,000 0 $502,000 Technology 1 LPSM $0 $0 0 $0 Indirect/Administration 1 LPSM $0 $0 0 $0 Art 1 LPSM $0 $0 0 $0 Contingency 1 LPSM $67,870 $67,870 0 $67,870 Future Expenses Operations Cost (annual costs) Heating Fuel 1,800 GALS $4.10 $7,380 20 $109,796 Electricity 21,216 KWH $0.23 $4,880 20 $72,597 Water and Sewer 1 LPSM $0 $0 20 $0 Garbage Disposal 1 LPSM $550 $550 20 $8,183 Custodial 1 LPSM $0 $0 20 $0 Grounds 1 LPSM $0 $0 20 $0 Lease 1 LPSM $0 $0 20 $0 Insurance 1 LPSM $0 $0 20 $0 Other 188 LPSM $120 $22,560 20 $335,636 Maintenance & Repair Cost (upkeep costs…estimate on annual basis) Site Improvements 1 LPSM $0 $0 20 $0 Site Utilities 1 LPSM $0 $0 20 $0 Foundation/Substructure 43,780 GSF $0.00 $0 20 $0 Superstructure 43,780 GSF $0.00 $0 20 $0 Exterior Wall Systems 1 EWSF $0.00 $0 20 $0 Exterior Windows 1 GLSF $0.00 $0 20 $0 Exterior Doors 1 LEAF $0.00 $0 20 $0 Roof Systems 1 RFSF $0.00 $0 20 $0 Interior Partitions 1 PTSF $0.00 $0 20 $0 Interior Doors 1 LEAF $0.00 $0 20 $0 Interior Floor Finishes 1 FFSF $0.00 $0 20 $0 Interior Wall Finishes 1 WFSF $0.00 $0 20 $0 Interior Ceiling Finishes 1 CFSF $0.00 $0 20 $0 Interior Specialities 43,780 GSF $0.00 $0 20 $0 Conveying Systems 1 LPSM $0 $0 20 $0 Plumbing Piping 43,780 GSF $0.00 $0 20 $0 Plumbing Fixtures 1 FIXT $0.00 $0 20 $0 Fire Protection Systems 43,780 GSF $0.00 $0 20 $0 HVAC Distribution 43,780 GSF $0.00 $0 20 $0 1 of 3 Life Cycle Cost Analysis - Alternate #3 (Opt. 2b Dry Fuel System) District:Klawock City Schools School:Main Building and Gymnasium Project:Biomass Heating System Project #:N/A GSF:43,780 GSF Quantity Unit Unit Cost Total Cost Years Present Value HVAC Equipment 1 LPSM $0 $0 20 $0 HVAC Controls 43,780 GSF $0.00 $0 20 $0 Special Mechanical Systems 43,780 GSF $0.00 $0 20 $0 Electrical Service/Generation 1 LPSM $0 $0 20 $0 Electrical Distribution 43,780 GSF $0.00 $0 20 $0 Electrical Lighting 43,780 GSF $0.00 $0 20 $0 Special Electrical Systems 43,780 GSF $0.00 $0 20 $0 Equipment & Furnishings 1 LPSM $2,000 $2,000 20 $29,755 Other 1 LPSM $0 $0 20 $0 Replacement Cost (scheduled replacement of building system or component) Site Improvements 1 LPSM $0 $0 1 $0 Site Utilities 1 LPSM $0 $0 1 $0 Foundation/Substructure 43,780 GSF $0.00 $0 1 $0 Superstructure 43,780 GSF $0.00 $0 1 $0 Exterior Wall Systems 1 EWSF $0.00 $0 1 $0 Exterior Windows 1 GLSF $0.00 $0 1 $0 Exterior Doors 1 LEAF $0.00 $0 1 $0 Roof Systems 1 RFSF $0.00 $0 1 $0 Interior Partitions 1 PTSF $0.00 $0 1 $0 Interior Doors 1 LEAF $0.00 $0 1 $0 Interior Floor Finishes 1 FFSF $0.00 $0 1 $0 Interior Wall Finishes 1 WFSF $0.00 $0 1 $0 Interior Ceiling Finishes 1 CFSF $0.00 $0 1 $0 Interior Specialities 43,780 GSF $0.00 $0 1 $0 Conveying Systems 1 LPSM $0 $0 1 $0 Plumbing Piping 43,780 GSF $0.00 $0 1 $0 Plumbing Fixtures 1 FIXT $0.00 $0 1 $0 Fire Protection Systems 43,780 GSF $0.00 $0 1 $0 HVAC Distribution 43,780 GSF $0.00 $0 1 $0 HVAC Equipment 1 LPSM $0 $0 1 $0 HVAC Controls 43,780 GSF $0.00 $0 1 $0 Special Mechanical Systems 43,780 GSF $0.00 $0 1 $0 Electrical Service/Generation 1 LPSM $0 $0 1 $0 Electrical Distribution 43,780 GSF $0.00 $0 1 $0 Electrical Lighting 43,780 GSF $0.00 $0 1 $0 Special Electrical Systems 43,780 GSF $0.00 $0 1 $0 Equipment & Furnishings 1 LPSM $0 $0 1 $0 Other 1 LPSM $0 $0 1 $0 Residual Value (value of facility at end of study period) Site Improvements 1 LPSM $0 1 $0 Site Utilities 1 LPSM $0 $0 1 $0 Foundation/Substructure 43,780 GSF $0.00 $0 1 $0 Superstructure 43,780 GSF $0.00 $0 1 $0 Exterior Wall Systems 1 EWSF $0.00 $0 1 $0 Exterior Windows 1 GLSF $0.00 $0 1 $0 Exterior Doors 1 LEAF $0.00 $0 1 $0 Roof Systems 1 RFSF $0.00 $0 1 $0 Interior Partitions 1 PTSF $0.00 $0 1 $0 2 of 3 Life Cycle Cost Analysis - Alternate #3 (Opt. 2b Dry Fuel System) District:Klawock City Schools School:Main Building and Gymnasium Project:Biomass Heating System Project #:N/A GSF:43,780 GSF Quantity Unit Unit Cost Total Cost Years Present Value Interior Doors 1 LEAF $0.00 $0 1 $0 Interior Floor Finishes 1 FFSF $0.00 $0 1 $0 Interior Wall Finishes 1 WFSF $0.00 $0 1 $0 Interior Ceiling Finishes 1 CFSF $0.00 $0 1 $0 Interior Specialities 43,780 GSF $0.00 $0 1 $0 Conveying Systems 1 LPSM $0 $0 1 $0 Plumbing Piping 43,780 GSF $0.00 $0 1 $0 Plumbing Fixtures 1 FIXT $0.00 $0 1 $0 Fire Protection Systems 43,780 GSF $0.00 $0 1 $0 HVAC Distribution 43,780 GSF $0.00 $0 1 $0 HVAC Equipment 1 LPSM $0 $0 1 $0 HVAC Controls 43,780 GSF $0.00 $0 1 $0 Special Mechanical Systems 43,780 GSF $0.00 $0 1 $0 Electrical Service/Generation 1 LPSM $0 $0 1 $0 Electrical Distribution 43,780 GSF $0.00 $0 1 $0 Electrical Lighting 43,780 GSF $0.00 $0 1 $0 Special Electrical Systems 43,780 GSF $0.00 $0 1 $0 Equipment & Furnishings 1 LPSM $0 $0 1 $0 Other 1 LPSM $0 $0 1 $0 Total Life Cycle of Alternate #1 $1,414,522 3 of 3