HomeMy WebLinkAboutAEA Round VII Grant Application City of Kotzebue Sept 2013 PDF #1P.O. Box 46
Kotzebue, Alaska 99752
City Hall
(907) 442-3401
Police Dept.
(907) 442-3351
Fire Dept.
(907) 442-3404
Public Works
(907) 442-3401
Mr. Shawn Calfa, Grant Manager
Alaska Energy Authority
813 West Northern Lights Boulevard
Anchorage, Alaska 99503
September 23, 2013
RE: Application for Renewable Energy Grant (Round VII) for the City of Kotzebue Paper and
Wood Waste-to-Energy Project
Dear Alaska Energy Authority and Mr. Calfa:
The City of Kotzebue is pleased to submit the enclosed Application package for the 2013 AEA Renewable
Energy Grant Fund (Round VII). The objective of the project is to implement an innovative approach to
reducing the fuel oil usage for heating purposes at City Public Works Dept. buildings, while at the same
time reducing the City's waste landfilling burden. This system will replace the usage of fuel oil fired boilers
with refuse derived fuel (RDF) and wood fired boilers for two city owned buildings. The project is anticipated
to save $184,620 in heating and landfilling costs annually.
The City is requesting $2.495,189 in grant funds to implement Phase Ill and Phase IV of the project, Final
Design, Permitting, Construction, and Commissioning, culminating in successfully operating equipment as
a model project for the City.
The City of Kotzebue began working on the project in 2010, and has to date contributed significant time and
effort in project development and garnering widespread community support for its implementation. The City
is also prepared to contribute $125,000 as matching funds in a combination of in-kind and cash for
equipment purchases:
1. City will make the land available (80X100 lot appraises at $40,000). The full lot is roughly 100X140
which would equate to 80-90,000 in-kind. Conservatively $75,000 is used for cost budgeting.
2. City will purchase additional carts for source separation and collection of project feedstock (30,000).
3. City will contribute in-kind labor ($20,000).
As City Manager, I will have overall authority over this project. Thank you for your consideration of this
grant, and we look forward to working with you for its implementation. If you have any questions regarding
the application or the project, please do not hesitate to contact me at (907) 442-3401.
AEA RQund VII Application
Cover letter-page 2
Sincerely ,
City of Kotzebue
~-6f?~
Derek Martin , City Manager
AttachmenUAEA Round VII Application
Cc: Kotzebue City Council
Randy Walker, Public Works Director
Jason Jessup, Capital Projects Manager
Ernest Hyatt, Refuse Supervisor
Renewable Energy Fund Round VII
Grant Application -Heat Projects
Application Forms and Instructions
~~ENERGY AUTHORITY
This instruction page and the following grant application constitutes the Grant Application Form
for Round VII 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 is available online at: www.akenergyauthority.org/REFund7.html.
• If you need technical assistance filling out this application, please contact Shawn Calfa,
the Alaska Energy Authority Grant Administrator at (907) 771-3031 or at
scalfa@aidea .org.
• If you are applying for grants for more than one project, provide separate application
forms for each project.
• Multiple phases for the same project may be submitted as one application.
• If you are applying for grant funding for more than one phase of a project, provide
milestones and grant budget for each phase of the project.
• In order to ensure that grants provide sufficient benefit to the public, AEA may limit
recommendations for grants to preliminary development phases in accordance with 3
ACC 107.605(1).
• If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit information sufficient to demonstrate that the
preceding phases are completed and funding for an advanced phase is warranted.
• If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
• In the sections below, please enter responses in the spaces provided, often under the
section heading . You may add additional rows or space to the form to provide sufficient
space for the information, or attach additional sheets if needed.
REMINDER:
• Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
• All applications received will be posted on the Authority web site after final
recommendations are made to the legislature .
• In accordance with 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 is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential it will be treated as a
public record in accordance with AS 40.25 or returned to the applicant upon
request.
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Renewable Energy Fund Round VII
Grant Application -Heat Projects
SECTION 1 -APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City of Kotzebue
Type of Entity: Municipality Fiscal Year End 06130
Tax ID # 92-6001350 Tax Status: __ For-profit __ Non-profit ...lL..Government ( check one)
Date of last financial statement audit: December 1, 2012
Mailing Address Physical Address
P.O. Box46 258A 3'd Avenue
Kotzebue, AK 99752 Kotzebue, Alaska
Telephone Fax Email
(907) 442-3401 (907) 442-3742 dmartin@kotzebue.org
1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER
Name Title
Derek Martin City Manager
Mailing Address
P.O. Box46
Kotzebue, AK 99752
Telephone Fax Email
(907) 442-3401 (907) 442-3742 dmartin@kotzebue.org
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
X A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes 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 Yes or No in the box )
Yes 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).
Yes 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
htt12 :/ /www. akenerg~a uthorit~.org/vee1;2/G rant-T em 12late .1;2df. (Any exceptions
should be clearly noted and submitted with the application.)
Yes 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
AEA 2014-006 Grant Application Page 2 of 26 71212013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
l j project and who will be the primary beneficiaries.
SECTION 2-PROJECT SUMMARY
This section is intended to be no more than a 2-3 page overview of your project.
2.1 Project Title -(Provide a 4 to 7 word title for your project). Type in space below.
Kotzebue Paper and Wood Waste to Energy Project
2.2 Project Location -
Include the physical location of your project and name( s) of the community or communities that will
benefit from your project in the subsections below.
2.2.1 Location of Project-Latitude and longitude, street address, or community name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project's location on the map
and then right clicking with the mouse and selecting What is here? The coordinates will be displayed in the Google
search window above the map in a format as follows: 61. 195676.-149.898663. If you would like assistance obtaining
this information please contact AEA at 907-771-3031.
258 Third Avenue Kotzebue, Alaska
66.897263 ,-162 .592764
2.2.2 Community benefiting -Name(s) of the community or communities that will be the
beneficiaries of the project.
City of Kotzebue
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind to Heat X Biomass or Biofuels
Hydro to Heat Solar Thermal
Heat Recovery from Existing Sources Heat Pumps
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
I. Reconnaissance X Ill. Final Design and Permitting
II. Feasibility and Conceptual Design X IV. Construction and Commissioning
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed heat project.
The objective of the Kotzebue Paper and Wood Waste to Energy Project is to replace fuel oil
fired boilers with refuse derived fuel (RDF) and wood fired boilers in two city owned buildings.
Feedstock for this system will consist of sorted and separated cardboard, newspaper, mixed
paper, and wood materials from the city of Kotzebue waste stream. The city's waste
management equipment will be used to collect materials, either as source-separated material
from the producers or mixed with the city's MSW waste stream. RDF fuel will be separated from
the waste stream in the Bailer building, in conjunction with an aluminum and tin recycling
program.
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Renewable Energy Fund Round VII
Grant Application -Heat Projects
2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this heat project, (such as reduced fuel
costs, lower energy costs, local jobs created etc.)
The financial benefits of the project include the following:
• Reduced Cost of Utilities. City of Kotzebue customers will see reduced utility costs
through lower heating costs associated with operating the RDF heating system.
• Avoided Cost of Kotzebue Landfill /Expansion Upgrade. The need to expand
the Kotzebue landfill is imminent, but can be delayed by reducing the amount
waste entering the landfill.
• Reduced Site Development and Construction Costs. All waste generated in
Kotzebue is brought to the City of Kotzebue Bailer building where it is compacted,
bailed and sealed in plastic. City land is available adjacent to the bailer building
where the paper/waste stream can be segregated for the rm a I conversion in to
heat. The heat in the form of hot water can then be piped to two city owned
buildings, the Water Treatment Building and city Maintenance Shop to provide
heating for the buildings.
The public benefits of the project include the following:
• Jobs Creation. Additional workforce will be need to collect and process the
wood/paper waste. Costs previously associated with purchasing the heating fuel
could now go to wages for operation and maintenance staff of the plant.
Other Benefits to the Alaskan public will also exist. An important benefit of installing the
proposed paper/wood energy conversion system would be to reduce the direct and indirect
costs of using fossil fuels in the region. This project could help stabilize energy costs and
provide long-term socio-economic benefits to businesses and households. Locally produced,
affordable energy will empower community residents and may help avert rural to urban
migration. This project would have many environmental benefits resulting from a reduction
of hydrocarbon use. These benefits include:
• Reduced potential for fuel spills or contamination during transport, storage, or use
(thus protecting vital water and subsistence food sources);
• Application of the project results and lessons learned to other communities in Rural
Alaska.
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source
of other contributions to the project.
The City is requesting $2,495,189 in grant funds to implement Phase Ill and Phase IV of the
project, Final Design, Permitting, Construction, and Commissioning, culminating in successfully
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Renewable Energy Fund Round VII
Grant Application -Heat Projects
operating equipment as a model project for the City.
I~ ENERGY AUTHORITY
The City of Kotzebue began working on the project in 2010, and has to date contributed
significant time and effort in project development and garnering widespread community support
for its implementation. The City is also prepared to contribute $125,000 as matching funds in a
combination of in-kind and cash for equipment purchases:
1. City will make the land available (80X1 00 lot appraises at $40,000). The full lot is roughly
100X140 which would equate to 80-90,000 in-kind. Conservatively $75,000 is used for cost
budgeting.
2. City will purchase additional carts for source separation and collection of project
feedstock (30,000).
3. City will contribute in-kind labor ($20,000).
The total project budget of $2,620,189 has been developed and refined through multiple
iterations of cost estimating. A quote for project equipment by technology supplier Blue Flame
Stoker is supplied in Appendix G, as well as an equipment delivery quote to Kotzebue by Linden
Transportation. In addition, project consultant Tetra Tech reviewed existing documentation and
provided professional engineering and cost estimating support for the development of the
project budget, also included in Appendix G.
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project's total costs and benefits below.
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application $2,495,189
2.7.2 Cash match to be provided $30,000
2.7.3 Total In-kind match to be provided (sum of lines below) $95,000
Biomass or Biofuel inventory on hand $
Energy efficiency improvements to buildings to be $
heated (within past 5 years or committed prior to
proposed project completion)
Other In-Kind match to be provided $95,000
2.7.4 Other grant funds to be provided $0
2.7.5 Other grant applications not yet approved $0
2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $2,620,189
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.7 Total Project Cost Summary from Cost Worksheet, Section $2,692,700
4.4.4, including estimates through construction.
2.7.8 Additional Performance Monitoring Equipment not covered $ 40,000 (Grant Request
by the project but required for the Grant Only applicable to for Operations
construction phase projects. Equipment, $24,920 for
reporting)
2.7.9 Estimated Direct Financial Benefit (Savings) $ 184,620
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Renewable Energy Fund Round VII
Grant Application -Heat Projects
2. 7.1 0 Other Public Benefit If you can calculate the benefit in terms $
of dollars please provide that number here and explain how you
calculated that number in Section 5 below.
SECTION 3-PROJECT MANAGEMENT PLAN
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope, schedule and budget proposed in the application.
3.1 Project Manager
Tell us who will be managing the project for the Grantee and include contact information, a
resume and references for the manager(s). In the electronic submittal, please submit resumes
as separate PDFs if the applicant would like those excluded from the web posting of this
application. If the applicant does not have a project manager indicate how you intend to solicit
project management support. If the applicant expects project management assistance from
AEA or another government entity, state that in this section.
The City of Kotzebue will provide overall project management and oversight.
Jason Jessup, Capital Projects Manager, will take the lead role as project manager. He has
worked for the City of Kotzebue since 2005, where he manages the development of
infrastructure improvement projects.
3.2 Project Schedule and Milestones
Please fill out form provided below. You may add additional rows as needed.
AEA 2014-006 Grant Application Page 6 of 26 7/2/2013
Re newab le Energy Fund Round VII
Gra nt Application -Heat Proj ects f
Engi neering Phase (III) Schedule:
Milestones Tasks
1 . Project scoplng and contractor sollcltatJo·n complero·d
Oavelop & O:lnflrm fro]l!cl Scope
Soile ll RFP for Engine@rlng Conlrac tor
)'ilgo!l.1te and Ex ecute Con tt actar A gree<rent
2. Po<m II appiiCiltlons com plotod
Rlrml Scoplng, s ~e Ran
P&r rril AP I)Iie alioll Repwallon and Sub!Ti~slal
3 .• Fi nal environmental assessment and mitigation plans completed
O:lnf~m Resource Avaiab~l y
Oavelop M ligallon Flans (as· nece:ssary)
4. Rnsolutlon of land use·, r ight of way Issues
Site SUJvey
Gootechnieal Evalualio<i
5. Pormlttlng , rlghts-of•way, site control compleled
COOflim Land 'and Sile R an
Obkliin A!miiS
6. Anal system design completed
Ftocess E:tulpmen t Engineering
Qvij /A reh[tectura181glneerlng
Engineering of ~!..-connect tc f:<l$1lng Energy SyStem
7.Aoal cost estimate completed
Corrplete COs t ES!imlle
8. ~dated economic and financial analyses completed
L\Od ale ~omc and Financial A na~s\5
9. Power or heat sale agree ments-In place-
Conl~mUkallon ana COst Slluoture of Roduced Et1e,-gy
10. Anal busi ness and operational plan compl elod
Qavelop BU~iness Ran
Oavelop Oper aroons Ran
Construction Phase (IV) Schedule:
Milestones Tasks
1. De! sign end foaslbllfty requ lremenls completed
COnflrrn ()on-plellon of Design ana Feaslbi lly Raqulrements
Con!Tm Resou•ce·Avallabillly
2. Bid documonts c:ompletod
~H RFO 101' COnSituc non and nswllalion
3. Vendor selected and award in p lace
Negolialo Vendor Con lrac t
Cons~uelloo Ran and Sc~edule
14.. Cons tructl on
CBuild"'g = 75 days) Site Gradi ng
Bu l uldlng Const r uc tion
(Ei:tuipf"'J nl & lrlterconnects ~SO dl')'s) Process E:tul pm ont
Utility Hook-ups
Constru ction Mon i toring
Mod lflcollons to final desi gn during conslructlon
Actlvoty track pr oj ect costs agalnSI t ho proj ect budget
EnvJronmo nlat Monitoring
S.lntogrollon and t es ting
Aping and ~t orconnec t lon to Energy Users
Co rrmssloning Flarf aod S c~edule
Coor:dlnaUon 01 conver~lon . W11egralJon , or surplus of e•IS~ng s ystem
7. Anal acc eptance, comm issioni ng and start-up complete
COrmisisonlng ol Equipmen t • Start up
\.Pdate burt)oss pla~s_ana power-gurc~ase ag reerren ls (as needed)
ij, 0 pN3tlo ns-roportlng "
Op"rallons and RepO(tilg EQulpm!nl
COnlinu ous mon~O<ing 10 •erify and upllate projecUons and syslem
elllclency
3.3 Project Resources
SIMIOato Anticipate a
Completion Date
7/1/2014 8/1512014
7/112014 7/1512014
711SI201 4 8/1512014
8/1SI2014 91 112014
911/2014 10/1512014
8/1/20 14 911120 14
911/20 14 l(l/11/2014
711512014 10/112014
7115/2014 9/11201 4
911120 14 101112014
811/2014 911512014
811120 14 9/1/20 14
911/20 14 91151201 4
9/1/2014 111112014
911/2 01 4 1011/20 14
1011120 14 11/11201 4
9/1/2014 1213112014
911/20 14 1111/20 14
9/1/20 14 1111120 14
\0/1120 14 12131/2014
1111512014 1211512014
11115120 14 12/1512014
11 11512014 1211512014
11/lsr.t014 12/1512014
1111512014 1211512014
11115120 14 1211512014
11/1.5/2014 1213112014
11115120 14 12131120 14
1 1/15120 14 12131/2014
Start Data Anticipated
Completion Dato
11112015 211 12015
111/2015 1115120 15
11 112015 :111 /20 15
211 12015 311 /2015
2/1/2015 311120 15
311 /2015 51'1 /2015
31112015 411/20 15
4[112015 5,'1120 15
511 /2015 9/1512015
51ll2015 512012015
512012015 7/1512015
7/1512015 811512015
811 !i/2015 911 512015
51112015 91 1512015
511 12015 91151Z015
51 1/201 5 911 51Z015
711 51201$ 9/1512015
7/151201 $ 9/1512015
811512015 9/1512015
711512015 9/1512015
711(;/2()15 9115/2015
911 5/2015 101 31/2015
911512015 1011512015
911$120t5 1013112015
7/1/2014 10/31 /20 i 5
711/201 4 10/31/2015
10/31/2015 nlo
Describe the personnel, contractors, accounting or bookkeeping personnel or firms, equipment,
and services you will use to accomplish the project. Include any partnerships or commitments
with other entities you have or anticipate will be needed to complete your project. Describe a ny
AEA 2014-006 Grant Application Page 7 of26 7/2/2013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
existing contracts and the selection process you may use for major equipment purchases or
contracts. Include brief resumes and references for known, key personnel, contractors, and
suppliers as an attachment to your application.
The City of Kotzebue will use a team of City staff and external consultants. City of
Kotzebue staff and their role on this project includes the following:
• Derek Martin, City Manager, will act as Project Executive and will maintain ultimate
authority programmatically and financially.
• Jason Jessup, City Capital Projects Manager, will be the project manager. Specific
duties of the project manager will include the following:
• Coordination with City staff for collection of energy and financial data for use
in the feasibility report.
• Selecting, coordinating, and managing the engineering consultant.
• Communicating with Kotzebue residents to ensure that the community
is informed.
• Keith Greene, Finance Director, will provide support in accounting, payables,
financialreporting, and capitalization of assets in accordance with AEA guidelines.
• Ernie Hyatt, City of Kotzebue Refuse Department Manager and 14 year City
Employee, will be a key information source and will help in collection of paper and
cardboard waste data.
The implementation of the proposed project will be implemented using the following:
• Engineering consultant. The City of Kotzebue will employ an engineering consultant
who will assist in all project milestones.
• Construction firm. The City of Kotzebue will select a construction firm who will construct
and commission the project. Selection Process for Contractors: The contractor
selection will be based upon technical competency, past performance, written
proposal quality, cost, and general consensus from the technical steering committee.
The selection of the consultant will occur in strict conformity with municipal
procurement policies, conformance with OMB circulars, and DCAA principles.
Contractors for this project will be integral to the implementation of this project. The recent
feasibility study conducted on behalf of the City of Kotzebue was done by Tetra Tech (2012).
Tetra Tech is a $2.78 publicly traded firm with 330 offices and 14,000 staff. We have full
renewable science and engineering capabilities. Specifically, we offer the industry
outstanding resources and assurance in its integrated suite of biomass, bioenergy and waste
to energy project capabilities. Beginning with a detailed assessment of the best available
feedstock(s) and the best-fit technologies that match site-specific situations, Tetra Tech will
plan, develop, permit, design, build, operate and maintain renewable bioenergy, wastewater
treatment, and biomass management systems. We have completed more than 150 projects
over the last 10 years producing hundreds of megawatts of electricity, millions of cubic feet of
natural gas, and billions of BTUs of heat energy.
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