HomeMy WebLinkAboutCentenial Hall grant applicationRenewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 2 of 22 7/2/2013
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City and Borough of Sitka
Type of Entity: Borough Government Fiscal Year End: June 30
Tax ID # 92‐0041163 Tax Status: For-profit Non-profit X Government ( check one)
Date of last financial statement audit:
Mailing Address
100 Lincoln Street, Sitka AK 99835
Physical Address
--same--
Telephone
(907) 747-1883
Fax
(907) 747-3158
Email
davidl@cityofsitka.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
David Longtin, P.E.
Title
Senior Engineer
Mailing Address
100 Lincoln Street, Sitka AK 99835
Telephone
(907) 747-1883
Fax
(907) 747-3158
Email
davidl@cityofsitka.com
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
or
No
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
or
No
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
or
No
1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as
identified in the Standard Grant Agreement template at
http://www.akenergyauthority.org/veep/Grant-Template.pdf. (Any exceptions
should be clearly noted and submitted with the application.)
Yes
or
No
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.
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Grant Application - Heat Projects
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SECTION 2 – PROJECT SUMMARY
This section is intended to be no more than a 2-3 page overview of your project.
2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below.
Sitka: Centennial Hall Air Source Heat Pump
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.
The project is located in Sitka at 330 Harbor Drive.
The Latitude and Longitude are: 57.049543, -135.334893
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Sitka, AK
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind to Heat Biomass or Biofuels
Hydro to Heat Solar Thermal
Heat Recovery from Existing Sources X Heat Pumps
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
I. Reconnaissance X III. 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.
Design and construction of an air source heat pump system to displace approximately 95% of
the heating oil usage of the expansion and renovation of the 19,000 sq ft Harrigan Centennial
Hall at a seasonal efficiency of 220%. The expansion and renovation, which will increase floor
space approximately 5,000 sq. ft, will require the replacement of the current ventilation system.
While the HVAC must be replaced, the base case assumptions include the retaining of the
current fuel oil boilers, the use of natural cooling supplemented with air-cooled compressor unit,
separate conventional variable air volume ventilation systems for the museum, auditorium, and
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Grant Application - Heat Projects
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office units, and thermal upgrades that would decrease energy consumption by 20% relative to
the current structure.
The six air-to-water heat pump units would be situated outdoors and a variable refrigerant flow
(VRF) system would pipe refrigerant to the 16 indoor fan coils to provide heating or cooling to
the building. Ventilation air would be supplied by energy recovery ventilators that transfer heat
from the exhaust or relief air to the fresh air being supplied to each fan coil unit. The outdoor
heat pump assembly would be housed within a louvered enclosure to protect the equipment and
lessen noise issues.
Backup heat would be supplied by electric heating coils with a total capacity of 930 MBH.
This proposal is a direct result of the attached Renewable Energy Feasibility Analysis, which
was completed July 2012 under a RE Fund Round 3 grant. See Attachment 1.
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 proposed heat pump project will displace approximately 95% of the annual heating oil
usage in the renovated and expanded building; the remaining 5% will be supplied by electric
resistance heating. This equates to an estimated 12,200 gallons of heating oil and $49,000 per
year at the current price of $4.01/gallon. The heat pump system will consume approximately
158,541 kWh of electricity (costing approximately $17,915 per year at current price of
$0.113/KWH), and the anticipated net energy savings is $31,600 per year. The heat pump will
also supply building cooling. A contract technician will be utilized to monitor and maintain the
heat pump system. The estimated reduction in annual greenhouse gas emissions will be 124
tons of CO2.
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss amount of funds needed, the anticipated sources of funds, and the nature and source of
other contributions to the project.
The Centennial Hall HVAC replacement project has a total cost of $2,268,095. Due to the
renovation and expansion of Centennial Hall, the HVAC system will need to be replaced. The
base case is to maintain the current oil fired boilers, but this application is to install air source
heat pumps to replace the-oil fired boilers. The incremental project cost, and here the grant
cost, is for the renewable energy system. The City and Borough of Sitka will provide $2,035,476
in construction funds (assumed to be in 2015 dollars).
The Grant Request amount is $232,620 which will cover the incremental design, construction
and required inspection and oversight.
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 $ 232,620
2.7.2 Cash match to be provided $ 2,035,476
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2.7.3 Total In-kind match to be provided (sum of lines below) $ 1,021,393
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)
$ 1,021,393
Other In-Kind match to be provided $
2.7.4 Other grant funds to be provided $
2.7.5 Other grant applications not yet approved $
2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $ 3,289,489
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.7 Total Project Cost Summary from Cost Worksheet, Section
4.4.4, including estimates through construction.
$ 2,268,095
2.7.8 Additional Performance Monitoring Equipment not covered
by the project but required for the Grant Only applicable to
construction phase projects.
$
2.7.9 Estimated Direct Financial Benefit (Savings) $ 29,282/year vs. base
case of oil-fired boilers
2.7.10 Other Public Benefit If you can calculate the benefit in terms
of dollars please provide that number here and explain how you
calculated that number in Section 5 below.
$
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.
Project manager – David Longtin, P.E., Senior Engineer for the City and Borough of Sitka
100 Lincoln Street, Sitka AK 99835
(907) 747-1883 (p) (907) 747-3158 (f) davidl@cityofsitka.com
See Attachment 2 for resume.
3.2 Project Schedule and Milestones
Please fill out the schedule below. Be sure to identify key tasks and decision points in in your
project along with estimated start and end dates for each of the milestones and tasks. Please
clearly identify the beginning and ending of all phases of your proposed project.
Please fill out form provided below. You may add additional rows as needed.
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Milestones Tasks
Start
Date
End
Date
Project scoping and contractor solicitation completed 7/14 8/14
Permit applications completed 8/14 9/14
Final EA and mitigation plans completed NA NA
Resolution of land use, right-of-way issues NA NA
Permitting, rights-of-way, site control completed 9/14 10/14
Final system design completed 8/14 11/14
Final cost estimate completed 10/14 11/14
Updated economic and financial analyses completed 12/14 12/14
Power or heat sale agreements in place note: this is a heating project NA NA
Final business and operational plan completed 10/14 12/14
Design and feasibility requirements completed 12/14 12/14
Bid documents completed 1/15 3/15
Vendor selected and award in place 3/15 5/15
Construction 5/15 10/15
Integration and testing 10/15 10/15
Decommissioning of old system complete 10/15 10/15
Final acceptance, commissioning and start-up
complete
10/15 10/15
Required operations reporting 10/15 10/25
3.3 Project Resources
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 any
existing contracts and the selection process you may use for major equipment purchases or
contracts. Include brief resumes and references for known, key personnel, contractors, and
suppliers as an attachment to your application.
The City and Borough of Sitka (CBS) will utilize the Finance and Public Works Departments to
execute this project. The accounting staff of the Finance Department will provide grant
accounting services, and the engineering staff of the Public Works Department will provide a
project manager. The Public Works engineering staff consists of the municipal engineer, two
civil engineers, one architect/project manager, one CAD technician and two clerical staff
members.
The work will be designed by a consultant selected in a performance-based procurement. When
the design is complete, the consultant will prepare bid documents that will result in the selection
of the general contractor that satisfies the minimum qualifications and submits the lowest bid. All
invoices and pay requests will be reviewed and, when acceptable, approved by the CBS project
manager.
The project manager will oversee the work, review and approve pay requests and submit them
to the accounting staff for payment and recordkeeping. If any owner-furnished materials will be
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used on the project, they will be procured and tracked according to established CBS
procedures. The resume for the CBS project manager and the grant accountant are attached.
The CBS owns, operates and maintains the Harrigan Centennial Hall.
3.4 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Please provide an alternative contact person and their contact information.
The CBS project manager will be the sole point of contact for the design consultant, the general
contractor and the Authority. In this way, all project communication will be funneled through one
individual who will be well-informed of the project status. The project manager will report to AEA
on milestones and submissions on a monthly basis. These reports will be augmented by a grant
funding expenditures report prepared by the grant accountant.
In the absence of the project manager, a temporary project manager will be assigned. The
project manager will brief the temporary project manager on the status of the project and
upcoming milestones. The project manager will formally notify all interested parties of the
change, and will provide contact information for the temporary project manager. The temporary
project manager will be a qualified individual from the CBS Public Works Department.
If the project manager is not available in the event of an emergency, call Stephen Weatherman
at (907) 747-4042.
3.5 Project Risk
Discuss potential problems and how you would address them.
The heat pump installation project is part of a larger renovation project at Centennial Hall.
Problems with other components of the design and construction of the overall renovation project
could impact the schedule and, as a result, the budget of the heat pump installation.
The CBS project manager will work with the CBS architect responsible for the Centennial Hall
project regularly to track the progress of the overall design and construction project. We will
track AEA costs separately, so that overruns for non-AEA-related aspects of the project will not
spill over into the AEA grant.
SECTION 4 – PROJECT DESCRIPTION AND TASKS
The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases
are satisfied and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be
available for the market to be served by your project. For pre-construction applications, describe
the resource to the extent known. For design and permitting or construction projects, please
provide feasibility documents, design documents, and permitting documents (if applicable) as
attachments to this application.
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Grant Application - Heat Projects
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The proposed renewable heat resource is the air outside of Harrigan Centennial Hall. The amount
of heat available from the air is technically restrained by the size and number of heat pumps and
the temperature and humidity of the air, but is essentially inexhaustible. The performance of air
source heat pumps, of which there are approximately 80 in Sitka, decreases with temperature, but
many commercially available units are available that will work effectively near 0 degrees
Fahrenheit. New advances in technology have improved the efficiency and cold weather
performance of the units. The Cold Climate Housing Research Center's April 2013 publication Air
source Heat Pumps in Southeast Alaska, provides an excellent summary of the potential benefits
and recent technological improvements. The report shows the expected COPs to be found in
Alaskan weather conditions, with COPs of nearly 2 all the way down to 0°F. The figure below from
the report provides the expected performance for one model. Given the figure below, the
assumed seasonal efficiency for Centennial Hall is conservative.
The feasibility of air source heat pumps was compared to ground source heat pumps and
seawater heat pumps in a July 2012 report by Alaska Energy Engineering, LLC. This feasibility
report is included as an attachment, and serves as the technical and financial basis for
proceeding with air source heat pumps as a viable alternative to heating oil or electric heat for the
facility. The ASHP had the lowest life cycle cost of the three alternatives studied.
4.1.2 For Biomass Projects Only
Identify any wood inventory questions, such as:
Ownership/Accessibility. Who owns the land and are their limitations and restrictions to
accessing the biomass resource?
Inventory data. How much biomass is available on an annual basis and what types
(species) are there, if known?
N/A
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4.2.1 Basic configuration of Existing Heating Energy System
Briefly discuss the basic configuration of the existing energy system. Include information about the
number, size, age, efficiency, and type of generation.
Harrigan Centennial Hall is currently heated by two 704 MBH fuel oil boilers and an air-cooled
chiller. The boilers are assumed to have an efficiency of 68%. The fuel oil boilers have 22 years of
remaining life. Natural cooling is possible when outside temperatures are below 60°F, otherwise
the chiller provides cooling.
4.2.2 Existing Heating Energy Resources Used
Briefly discuss your understanding of the existing energy resources. Include a brief discussion of
any impact the project may have on existing energy infrastructure and resources.
The existing energy resource used is #1 heating oil with a current price to CBS of $4.01 per
gallon. The price of heating oil is driven heavily by the global price of oil, which is estimated to
escalate at a minimum of 6% per year of the 20 year life of this project. Grid electricity is supplied
by the City and Borough of Sitka, the power is nearly 100% hydropower from Blue Lake with
supplemental diesel being consumed in years with lower rainfall. CBS is in the process of
increasing the storage and capacity of Blue Lake Hydro, which will greatly decrease the need for
intermittent diesel generation.
The current effective price of grid electricity paid by Harrigan Centennial Hall is $0.113/KWH.
Electricity is estimated to escalate at a rate of 2.5% per year over the 20-year life of the project.
4.2.3 Existing Heating Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
70% of space heating in Sitka is supplied by heating oil, but 20% is supplied by electric
resistance. With the highest proportion in Alaska, 3% of all heating in Sitka is provided by heat
pumps. There is no plan to bring natural gas to Sitka so expensive heating oil makes a logical
target for displacement with cost-effective renewable energy heat sources. Approximately 80
ASHP installations are in operation in Sitka, including a new unit at Blatchley Middle School and a
30-year-old unit at the Forest Service. The project is not expected to have an impact on the rate of
local electricity because the electricity consumption is approximately 0.1% of the local yearly
consumption.
4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, energy efficiency and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
A description of renewable energy technology specific to project location
Optimum installed capacity
Anticipated capacity factor
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Anticipated annual generation
Anticipated barriers
Basic integration concept
Delivery methods
Energy efficiency measures (building envelope)
As described in the July 2012 Renewable Energy Feasibility Analysis by Alaska Energy
Engineering, LLC, the most cost-effective renewable energy technology specific to the project
location is an air source heat pump.
The optimum installed capacity is six outdoor high efficiency air-to-water heat pumps, each with
9.1 tons capacity. The total capacity of the proposed heat pump system is 54.25 tons, or 651
BTU/hour (651 MBH). This will provide 70% of the design heating load and 95% of the seasonal
heating requirement. 930 MBH of electric resistance heating coils will provide supplemental and
backup heating for the entire design load and supply 5% of the seasonal heating requirement.
The anticipated annual capacity factor for the six heat pumps is approximately 18%, with higher
use in winter and lower use in summer. The anticipated annual heat generation is 1,036 MMBtu at
an average COP of 2.2, the remaining 51.8 MMBtu will be produced by electric resistance
heating. The system would also supply 155 MMBtu of cooling at an average COP of 3.9.
Auditorium: Two ASHPs will provide heat and cooling to four fan coil units supplied by one
energy recovery ventilator (ERV).
Meeting rooms/Offices/Storage: Two ASHPs will provide heat and cooling to eight fan coils on
the east side and nine fan coil units on the west side, each supplied by a separate ERV.
Museum: Two ASHPs will provide heat and cooling to six fan coil units supplied by an ERV.
No barriers are anticipated in the integration of the ASHP into the renovated building, as air
source heat pumps have already been integrated by CBS into the Blatchley Middle School.
As part of renovations planned for completion prior to ASHP installation, improvements to the
building envelope worth $1,021,393 are anticipated to improve energy efficiency by at least 20%.
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the project
or how you intend to approach land ownership obtain harvest contracts and access issues.
The entire project will be located on the Harrigan Centennial Hall property, so there are no known
land ownership issues.
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
List of applicable permits
Anticipated permitting timeline
Identify and discussion of potential barriers
No specific permitting requirements exist for ASHPs. It is anticipated that a mechanical
construction permit will be required from the City and Borough of Sitka for the building renovation
and expansion, and heat pump installation. It is anticipated that the required permits can be
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obtained in a timely manner prior to construction. No serious challenges to obtaining the required
permits are anticipated at this time.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will be
addressed:
Threatened or endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
There are no environmental or land use issues anticipated in regards to this project. The project
will not impact endangered species, affect wetlands or habitat, encroach on archeological or
historical buildings. No land development constraints will be encountered. ASHPs will not impact
telecommunications or aviation. The potential noise of the ASHP will be mitigated by placing the
outdoor units in a louvered outbuilding.
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants records or analysis, industry standards,
consultant or manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
Total anticipated project cost is $2,268,095 for design and construction. The requested grant
funding is $232,620.
The AEA grant will provide the incremental funding for the design and construction of the ASHP.
CBS will provide the balance of funds equal to the cost of the base case of maintaining the
existing oil fired boilers but replacing the rest of the HVAC system. These will be paid for by
various funding sources secured by CBS. See Attachment 3.
As the anticipated incremental capital cost of the proposed air source heat pump system relative
to the construction cost of the base case is $232,620; the proposed capital cost for the project is
equal to the grant cost, $232,620. The costs are derived from the July 2012 Renewable Energy
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Feasibility Analysis performed by Alaska Energy Engineering LLC.
4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these would be funded by
the applicant.
(Note: Operational costs are not eligible for grant funds however grantees are required to meet
ongoing reporting requirements for the purpose of reporting impacts of projects on the
communities they serve.)
Anticipated O&M costs beginning in 2015 for the proposed air source heat pump system are as
follows:
Parts & maintenance = $ 3,610/year
Electricity for six 9.1 ton heat pumps @ 18% capacity factor = $ 19,009/year
Total anticipated O&M costs = $22,619/year (in year 1)
O&M costs will be funded by CBS from heating oil avoided by using the heat pumps.
4.4.3 Heat Purchase/Sale
The heat purchase/sale information should include the following:
Identification of potential energy buyer(s)/customer(s)
Potential heat purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
All heat will be used on site by Harrigan Centennial Hall; no heat will be sold to others.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in
evaluating the project.
Please fill out the form provided below and provide most recent heating fuel invoice that supports
the amount identified in “Project Benefits” subpart b below.
Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. The two air source heat pumps (ASHP) will ensure
a heat pump output capacity of up to 651,000
BTU/hour thru the entire heating season. The total
annual output for the ASHP will 1,036 MMBtu of
heat and 155 MMBtu of cooling.
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
Existing Heating Energy Generation and Usage
a) Basic configuration
i. Number of generators/boilers/other Two oil boilers
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ii. Rated capacity of generators/boilers/other 704,000 BTU/hour each
iii. Generator/boilers/other type
iv. Age of generators/boilers/other 22 years remaining in life expectancy
v. Efficiency of generators/boilers/other Estimated AFUE = 68%
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $8,347
ii. Annual O&M cost for non-labor $1,743
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh]
ii. Fuel usage
Diesel [gal]
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] 12,200 gallons of #1 heating oil per year
ii. Electricity [kWh] 24,761 kWh
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity
(Wind, Hydro, Biomass, other)
[kW or MMBtu/hr]
Capacity of 6 outdoor ASHPs = 651,000 BTU/hour
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh]
ii. Heat [MMBtu] 1,151 MMBtu/year = 1,035 MMBtu/year from ASHP
and 51.8 MMBtu/year from resistance heaters (+155
MMBtu cooling)
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood or pellets [cords, green tons,
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dry tons]
iv. Other Electricity: 158,541 kwh/year (ASHP heating &
cooling, and resistance heating)
Project Cost
a) Total capital cost of new system $3,289,489
b) Development cost $17,313 for feasibility study completed July 2012
(funded by RE Fund Round 3 grant)
c) Annual O&M cost of new system $3,610 per year
d) Annual fuel cost $19,009 per year for electricity for heat pumps
Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat 12,200 gallons #1 heating oil will be displaced per year
iii. Transportation
b) Current price of displaced fuel $4.01/ gallon
c) Other economic benefits 124 tons of CO2 emissions avoided per year
d) Alaska public benefits Air source heat pumps demonstrated in high profile
heavy use public building, and performance data
collected in Alaska maritime climate
Heat Purchase/Sales Price
a) Price for heat purchase/sale N/A
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 1.89
Payback (years) 10 years
4.4.5 Building Efficiency
Please address the following items related to the proposed location of the heating project. If
more than one building will be impacted, please address this information for each building.
Building name: Harrigan Centennial Hall
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Type or primary usage of the building: Community Museum, Auditorium, and Meeting
Space
Location: Harbor Drive, Sitka
Hours of operation: 10AM-9PM M-F, 1PM-9PM Sat & Sun
Single structure or multiple units: Single Structure
Total square footage: 19,000 sq. ft (to be expanded to 24,000 sq. ft.)
Electrical consumption per year: average of 240,00 KWH/year (in 2009)
Heating oil/fuel consumption per year: 12,200 gallons #1 heating oil/year (est. 2012)
Average number of occupants: Highly variable depending on auditorium use,
conferences schedules, and tourism. There are, on average, over 1,000 meetings at the
facility per year.
Has an energy audit been performed? When? Please provide a copy of the energy audit,
if applicable.
o A Level I (walk thru) energy audit was performed in 2009. It included multiple
buildings for CBS. The relevant parts of the audit are printed out and can be
found at Attachment 4. The entire energy audit is included with the electronic
submittal. A partial audit listing of recommended energy upgrades was performed
in 2012; the spreadsheet of recommended projects is included at Attachment 3.
Have building thermal energy efficiency upgrades been completed? No
o If applicable, please provide evidence of efficiency improvements including cost
and anticipated savings associated with upgrades: N/A
o Estimated annual heating fuel savings: N/A
If the building is not yet constructed please provide evidence of the value of planned
building envelope efficiency investments beyond typical construction practices. Include
anticipated savings associated with efficiency investments if available.
Not estimated in 2012 partial audit.
SECTION 5– PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings, and
how the people of Alaska will benefit from the project.
The benefits information should include the following:
Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated
renewable energy project. In order for the applicant to receive credit for heating fuel
displaced the applicant must provide the most recent invoice for heating fuel purchased.
Anticipated annual revenue (based on i.e. a Proposed Heat Purchase Agreement price,
RCA tariff, or cost based rate)
Potential additional annual incentives (i.e. tax credits)
Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
Discuss the non-economic public benefits to Alaskans over the lifetime of the project
Renewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 16 of 22 7/2/2013
Potential Annual Fuel Displacement: 12,200 gallons of #1 heating oil/year usage will be
displaced over the lifetime of the project. At current rates ($4.01/gallon), the annual cost of fuel
oil is $48,922. The NPV of fuel oil costs over the 20 year lifespan is $1.24M assuming a 5.5%
discount rate. Per the Renewable Energy Feasibility Analysis by Alaska Energy Engineering,
the cost of fuel oil is assumed to increase at 6.6% per year.
There are no anticipated revenue/incentives since the heat recovered is not sold to others.
Non-economic benefits to Alaskans: Estimated CO2 reduction in Sitka area of 124 tons/year
from the proposed project. The maintenance of the project will require new maintenance skills
specific to air source heat pumps to be developed by CBS maintenance workers or contracted
out.
Additional benefit is that this air source heat pump project will demonstrate, in a high-profile
heavy-use community facility, how air source heat pumps can work, and what overall savings
are possible from using them. As more residences and buildings in Sitka have moved towards
electric resistance heating, putting an occasional strain on Sitka's hydroelectric resources, the
increased efficiency of ASHPs could help reduce the times that power demands outstrip the
hydro resource.
SECTION 6– SUSTAINABILITY
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
Proposed business structure(s) and concepts that may be considered.
How you propose to finance the maintenance and operations for the life of the project
Identification of operational issues that could arise.
A description of operational costs including on-going support for any back-up or existing
systems that may be require to continue operation
Commitment to reporting the savings and benefits
The City and Borough of Sitka owns and operates multiple buildings and utilities in Sitka. The
project budget allocates daily, quarterly, and annual service on the heat pumps, fans and energy
recovery ventilating system, as well as replacement of the outdoor units every 12 years.
Operation and maintenance costs will be funded from avoided fuel costs from the proposed air
source heat pump system.
Operational issues that can arise with air source heat pumps are typically related to icing events
on exterior equipment during cold weather, which is handled through defrosting cycles and proper
maintenance. The heat pump technology proposed is mature market technology and the units are
essentially plug-and-play with multiple built-in alarm systems designed to protect from over-
cooling or over-heating of compressors or refrigerant loops.
The City and Borough of Sitka is committed to reporting ongoing performance and savings for the
purposes of this grant, and for application on other buildings that they own and operate.
Temperatures, electrical energy use, heat production (MBH, MMBTU), and COP will be
monitored for the new heat pump system.
Renewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 17 of 22 7/2/2013
SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS
Discuss what you have done to prepare for this award and how quickly you intend to proceed
with work once your grant is approved.
Tell us what you may have already accomplished on the project to date and identify other grants
that may have been previously awarded for this project and the degree you have been able to
meet the requirements of previous grants.
To prepare for this award, CBS worked with Alaska Energy Engineering LLC to complete a
Renewable Energy Feasibility Analysis for Harrigan Centennial Hall in July 2012. The study
developed and compared alternatives to provide heat using renewable energy, provided a
conceptual-level design and recommended a project. The CBS project manager utilized the
report in assembling this grant application.
The design project for the overall Centennial Hall renovations project is under way. We will not
slow the design project down to wait for the AEA grant funding, but will pay for it with other
funding sources if the timing requires it. If awarded the design grant, we would continue with our
design work and fund it with the AEA grant when it is available.
CBS has met the requirements of two previous AEA Renewable Energy Fund grants – one for
the feasibility study mentioned above and one for a similar feasibility study at the wastewater
treatment plant. CBS certified that the AEA funds were spent in accordance with the grant terms
and conditions on July 6, 2012, for the Centennial Hall and Kettleson Library study and on July
23, 2013, for the wastewater treatment plant study.
SECTION 8 – LOCAL SUPPORT AND OPPOSITION
Discuss local support and opposition, known or anticipated, for the project. Include letters of
support or other documentation of local support from the community that would benefit from this
project. The Documentation of support must be dated within one year of the RFA date of July 2,
2013.
See attached resolution from the Sitka Assembly. Also attached are letters of support from the
Sitka Conservation Society, the Sitka Economic Development Association and the Sitka Tribe’s
Natural Resources Program. All documents of support can be found at Attachment 5.
Overall, the concept of using heat pumps has been embraced by the community. Many
individuals have realized cost savings at their own homes after installing heat pumps.
There is no known opposition to this project.
SECTION 9 – GRANT BUDGET
Tell us how much you are seeking in grant funds. Include any investments to date and funding
sources, how much is being requested in grant funds, and additional investments you will make
as an applicant.
Renewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 18 of 22 7/2/2013
Provide a narrative summary regarding funding sources and your financial commitment to the
project
Please provide a short narrative, and cost estimate, identifying the metering equipment, and its
related use to comply with the operations reporting requirement identified in Section 3.15 of the
Request for Applications.
Applications MUST include a separate worksheet for each project phase that was identified in
section 2.3.2 of this application, (I. Reconnaissance, II. Feasibility and Conceptual Design, III.
Final Design and Permitting, and IV. Construction and Commissioning). Please use the tables
provided below to detail your proposed project’s budget. Be sure to use one table for each
phase of your project.
If you have any question regarding how to prepare these tables or if you need assistance preparing the
application please feel free to contact AEA at 907-771-3031 or by emailing the Grant Administrator,
Shawn Calfa, at scalfa@aidea.org.
Renewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 19 of 22 7/2/2013
PHASE III: Final Design and Permitting
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds*
Source of
Matching
Funds:
Cash/In-
kind/Feder
al
Grants/Ot
her State
Grants/Ot
her
TOTALS
Project scoping and contractor
solicitation for planning and
design
8/2014 $4,187.16
$ 36,638.57
cash & in-
kind $ 40,825.73
Permit applications 9/2014 $2,093.58 $ 18,319.28 C&IK $ 20,412.86
Final environmental
assessment and mitigation
plans
NA $0
$ 0
NA
$ 0
Resolution of land use, right-
of-way issues NA $0 $ 0 NA $ 0
Permit approvals 10/2014 $6,280.74 $ 54,957.85 C&IK $ 61,238.59
Final system design 11/2014 $18,842.22 $ 164,873.56 C&IK $ 183,715.78
Engineer’s cost estimate 11/2014 $6,280.74 $ 54,957.85 C&IK $ 61,238.59
Updated economic and
financial analysis 12/2014 $2,093.58 $ 18,319.28 C&IK $ 20,412.86
Negotiated power sales
agreements with approval
rates
NA $0
$ 0
NA
$ 0
Final business and operational
plan 12/2014 $2,093.58 $ 18,319.28 C&IK $ 20,412.86
TOTALS $41,871.60 $ 366,385.68 $ 408,257.28
Budget Categories:
Direct Labor & Benefits $7,536.89 $ 65,949.42 C&IK $ 73,486.31
Travel & Per Diem $418.72 $ 3,663.86 C&IK $ 4,082.57
Equipment $293.10 $ 2,564.70 C&IK $ 2,857.80
Materials & Supplies $125.61 $ 1,099.16 C&IK $ 1,224.77
Contractual Services $29,310.12 $ 256,469.98 C&IK $ 285,780.10
Construction Services $0 $ 0 NA $ 0
Other $4,187.16 $ 36,638.57 C&IK $ 40,825.73
TOTALS $41,871.60 $ 36,638.57 $ 408,257.28
* Does not include $1,021,393 in funds committed to building thermal envelope improvements.
See Attachment 3.
Renewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 20 of 22 7/2/2013
PHASE IV: Construction and Commissioning
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds*
Source of
Matching
Funds:
Cash/In-
kind/Feder
al
Grants/Ot
her State
Grants/Ot
her
TOTALS
Confirmation that all design
and feasibility requirements
are complete
12/2014 $0 $0 NA $0
Completion of bid documents 3/2015 $9,537.42 $ 83,454.52
cash & in-
kind $ 92,991.94
Contractor/vendor selection
and award 5/2015 $9,537.42 $ 83,454.52 C/IK $ 92,991.94
Material procurement 8/2015 $51,502.07 $ 450,654.39 C/IK $ 502,156.45
Rough-in construction 9/2015 $40,057.16 $ 350,508.97 C/IK $ 390,566.13
Finish construction 10/2015 $47,687.10 $ 417,272.58 C/IK $ 464,959.68
Integration and testing 10/2015 $15,259.87 $ 133,527.23 C/IK $ 148,787.10
Decommissioning old systems 10/2015 $9,537.42 $ 83,454.52 C/IK $ 92,991.94
Final acceptance,
commissioning and start-up 10/2015 $3,814.97 $ 33,381.81 C/IK $ 37,196.77
Operations Reporting 10/2025 $3,814.97 $ 33,381.81 C/IK $ 37,196.77
TOTALS $190,748.40
$1,669,090.32 $1,859,838.72
Budget Categories:
Direct Labor & Benefits $34,334.71 $ 300,436.26 C/IK $ 334,770.97
Travel & Per Diem $1,907.48 $ 16,690.90 C/IK $ 18,598.39
Equipment $1,335.24 $ 11,683.63 C/IK $ 13,018.87
Materials & Supplies $572.25 $ 5,007.27 C/IK $ 5,579.52
Contractual Services $133,523.88
$1,168,363.22 C/IK $1,301,887.10
Construction Services $0 $0 NA $0
Other $19,074.84 $ 166,909.03 C/IK $ 185,983.87
TOTALS $190,748.40
$1,669,090.32 $1,859,838.72
* Does not include $1,021,393 in funds committed to building thermal envelope improvements.
See Attachment 3.
Renewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 21 of 22 7/2/2013
SECTION 10 – AUTHORIZED SIGNERS FORM
Community/Grantee Name: City and Borough of Sitka
Regular Election is held: first Tuesday in October
(two of seven Assembly members up for re-
election)
Date: October 1, 2013
Authorized Grant Signer(s):
Printed Name Title Term Signature
Jay Sweeney Interim Municipal
Administrator
NA
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Mim McConnell Mayor 10/2014 see Resolution 2013-15
in Attachment 5
Grantee Contact Information:
Mailing Address: City and Borough of Sitka
100 Lincoln Street
Sitka AK 99835
Phone Number: (907) 747-1883
Fax Number: (907) 747-3158
E-mail Address: davidl@cityofsitka.com
Federal Tax ID #: 92-0041163
Please submit an updated form whenever there is a change to the above information.
Renewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 22 of 22 7/2/2013
SECTION 11 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Contact information, resumes of Applicant’s Project Manager, key staff, partners,
consultants, and suppliers per application form Section 3.1 and 3.4. Applicants
are asked to provide resumes submitted with applications in separate electronic
documents if the individuals do not want their resumes posted to the project web
site.
B. Letters or resolutions demonstrating local support per application form Section 8.
C. For heat projects only: Most recent invoice demonstrating the cost of heating fuel
for the building(s) impacted by the project.
D. Governing Body Resolution or other formal action taken by the applicant’s
governing body or management per RFA Section 1.4 that:
- Commits the organization to provide the matching resources for project at the
match amounts indicated in the application.
- Authorizes the individual who signs the application has the authority to
commit the organization to the obligations under the grant.
- Provides as point of contact to represent the applicant for purposes of this
application.
- Certifies the applicant is in compliance with applicable federal, state, and local,
laws including existing credit and federal tax obligations.
E. One paper copy and one electronic version of the entire application on CD or other
electronic media, per RFA Section 1.7.
F. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations and
that they can indeed commit the entity to these obligations.
Print Name
Signature
Title
Date