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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. Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 3 of 22 7/2/2013 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 Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 4 of 22 7/2/2013 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 Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 5 of 22 7/2/2013 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. Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 6 of 22 7/2/2013 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 Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 7 of 22 7/2/2013 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. Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 8 of 22 7/2/2013 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 Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 9 of 22 7/2/2013 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 Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 10 of 22 7/2/2013  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 Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 11 of 22 7/2/2013 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 Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 12 of 22 7/2/2013 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 Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 13 of 22 7/2/2013 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, Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 14 of 22 7/2/2013 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 Renewable Energy Fund Round VII Grant Application - Heat Projects AEA 2014-006 Grant Application Page 15 of 22 7/2/2013  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