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HomeMy WebLinkAboutPetersburg AEA Grant Application 2012 Digital CopyRenewable Energy Fund Round 6 .■a Grant Application E-, ENERGY AUTHORrrY Application Forms and Instructions This instruction page and the following grant application constitutes the Grant Application Form for Round 6 of the Renewable Energy Fund. An electronic version of the Request for Applications (RFA) and this form are available online at: http://www.akenergyauthority.org/RE Fund-6.html • If you need technical assistance filling out this application, please contact Shawn Calfa, the Alaska Energy Authority Grant Administrator at (907) 771-3031 or at scalfa@aidea.or . • If you are applying for grants for more than one project, provide separate application forms for each project. • Multiple phases for the same project may be submitted as one application. • If you are applying for grant funding for more than one phase of a project, provide milestones and grant budget for each phase of the project. • In order to ensure that grants provide sufficient benefit to the public, AEA may limit recommendations for grants to preliminary development phases in accordance with 3 ACC 107.605(1). • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. • If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. REMINDER: • Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply. • All applications received will be posted on the Authority web site after final recommendations are made to the legislature. • In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by the Authority. If you want information is to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. AEA 13-006 Application Page 1 of 20 7/3/2011 Renewable Energy Fund Round 6 �® . - Grant Application GOONDENERGY AUTHORITY SECTION 1 — APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City of Petersburg Type of Entity: Local Government Fiscal Year End June 30th Tax ID # 926000142 Tax Status: For -profit or x non- rofit check one Mailing Address Physical Address PO BOX 329 12 North Nordic Petersburg, AK 99833 Petersburg, AK 99833 Telephone Fax Email 907-772- 907-772-3759 cddir@ci.petersburg.ak.us 3302 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Title Steve Giesbrecht Petersburg City Manager Mailing Address PO BOX 329 Petersburg, AK 99833 Telephone Fax Email 907-772- 907-772-3759 steveg@ci.petersburg.ak.us 3302 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or x A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2 Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant's governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3 As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4 If awarded the grant, we can comply with all terms and conditions of the attached __grant form. (Any exceptions should be clearly noted and submitted with the AEA13-006 Grant Application Page 2 of 20 7/3112012 Renewable Energy Fund Round 6 401r) Grant Application GEE= ENERGY AUTHORITY 1.2.5 application.) 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. AEA13-006 Grant Application Page 3 of 20 713/12012 Renewable Energy Fund Round 6 Grant Application 111111111111111111D ENERGY AUTHORrrY SECTION 2 — PROJECT SUMMARY This is intended to be no more than a 1-2 page overview of your project. 2.1 Project Title — (Provide a 4 to 5 word title for your project) Petersburg Community Heating System Retrofit Feasibility Study 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. Petersburg, AK- Numerous locations in the city. School Buildings, Parks and Recreation Facilities, Municipal buildings, etc. 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. (56.815274.-132.953314) 2.2.2 Community benefiting — Name(s) of the community or communities that will be the beneficiaries of the project. City of Petersburg 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind x Biomass or Biofuels x Hydro, including run of river Transmission of Renewable Energy x Geothermal, including Heat Pumps Small Natural Gas x Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre -Construction Construction Reconnaissance Design and Permitting x Feasibility Construction and Commissioning x Conceptual Design AEA13-006 Grant Application Page 4 of 20 713112012 Renewable Energy Fund Round 6 j`4E1Er'D' Grant Application 41111111W)ENERGY AUTHORITY 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The proposed project will evaluate the technical and financial feasibility for integration and optimization of renewable energy based heating technologies to offset heating oil and electricity usage in the following Petersburg facilities: Stedman Elementary School, Mitkof Middle School, Petersburg High School, Petersburg Aquatic Center, Mountain View Manor Elderly Housing, and the City Municipal Building. 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, etc.) The proposed evaluation will lead to reductions in heating oil and grid electricity usage for #five. six city buildings, and demonstrate potential application of heat pumps or other technology for buildings in Petersburg and other small communities. Currently, the city spends approximately $350,000 for oil fuel to heat these facilities each year. The goal of the feasibility study is to evaluate electric boilers, ground: -source heat pumps, air - source heat pumps, wood boilers, etc. technology to reduce our heating oil, and electrical grid usage. The study will determine the best technology for each building that will help to cut our dependence on oil and electricity. If we can find a way to cut the large pull that these facilities take from both of these sources, it can save local tax payers thousands of dollars in recurring operation and maintenance costs and free up valuable KWH for development of new projects or businesses in town. 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. The estimated cost of this project is $56,750 for professional consultant services to evaluate the technical and financial feasibility of integrating renewable energy systems, including energy modeling of the proposed systems installed in the existing buildings. The sources of funds include $10,000 from the City of Petersburg and $46,750 from the Alaska Energy Authority's Renewable Energy Fund. The City of Petersburg will provide all administrative support necessary to complete the project, including grant administration and project management. AEA13-006 Grant Application Page 5 of 20 7/31/2012 Renewable Energy Fund Round 6 aw Grant Application 4W: ENERGY AUTHORITY 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. $46,750 2.7.2 Cash match to be provided $10,000 2.7.3 In -kind match to be provided 2.7.4 Other grant applications not yet approved $0 $0 2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $56,750 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.6 Total Project Cost (Summary from Cost Worksheet $56,750 including estimates through construction) 2.7.7 2.7.8 Estimated Direct Financial Benefit (Savings) 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 your application (Section 5.) $ To be assessed through study I AEA13-006 Grant Application Page 6 of 20 7/382012 Renewable Energy Fund Round 6 Gram APIPllcailon ■ rE-. ENERGY AUTHORITY 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). 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. Leo Luczak, Community Development Director, will oversee the execution of this grant. See Appendix A for resume and contact information. Jody Tow, Finance Director, City of Petersburg, is overseeing the project accounting and provides financial reporting to grant agencies. See Appendix A 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 clear) identify dentify the beginning and ending of all phases of your proposed project. Please fill out form provided below. You may add additional rows as needed. Milestones Tasks Start Date End Date City Council Resolution A resolution to approve the grant application/matching funds 9/3/12 9/3/12 Submit Grant Application Submit for review 9/24/12 9/24/12 AEA Review Complete 9/25/12 1/9/13 Projects Approved for Funding (Contingent on Legislative Action) Monitor and provide additional information as necessary. 6/30/13 6/30/13 Finalize Award Documents Provide all necessary documents to AEA Solicit proposals from qualified firms. 7/1 /13 7/1 /13 Request for proposals 7/2/13 7/31/13 Award Contract Evaluate proposals. Recommend award to City Council Issue Notice to Proceed 8/1/13 8/6/13 Site Visit Meet with contractor, inspect buildings, specify objectives, and provide necessary information. 9/15/12 9/17/12 Preliminary Report Review draft report and provide comments. 2/15/13 2/22/13 Final Report Contractor incorporates comments and presents final report 2/22/13 2/28/13 AEA13-006 Grant Application Page 7 of 20 713H2012 Renewable Energy Fund Round 6 Grant Application M. mic- 4W.:. ENERGY AUTHORITY w 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 project resources include the City of Petersburg's Community Development and Facilities Maintenance staff, the department staff who maintains and operates each building, and the selected consultant who will prepare the feasibility report. The feasibility report will be used to provide direction and design criteria to the future selected architect — Mechanical Engineer to design the heating and cooling facilities for the proposed buildings. The City of Petersburg will also maintain all accounting for this grant through our Finance department. 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. Leo Luczak, Community Development Director, will oversee the execution of this grant. He will send out periodic emails keeping each department and the Authority abreast of timelines, visits from the Energy Auditors, and completion of their feasibility study. See Appendix A for resume and contact information. Jody Tow, Finance Director, City of Petersburg Accountant, is overseeing the project accounting and provides financial reporting to grant agencies. See Appendix A for resume and contact information. 3.5 Project Risk Discuss potential problems and how you would address them. The risks involved will be as follows: • There is not a product out there that is more efficient than our oil and electric boilers. • There will not be additional funding available to institute the suggestions of the report. • The products that are available don't work with our available space, design, or layout of the facilities. AEA13-006 Grant Application Page 8 of 20 7/3//2012 Renewable Energy Fund Round 6 �411111111111111D r Grant Application �ENERGY AUTHORrnr 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 extentlamount 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. The purpose of this grant would be to bring a company in to do a feasibility study on the best applications for each of our individual facilities in the community. We are interested in Heat Pumps; air to air, seawater and ground source, Biomass or even Hydro. We have access to land, water and resources that would be possible fits for each one of these alternative energy sources. The heat pumps in each of their forms would seem to be the best fit with our local climate, available land, and temperatures. We are leaning towards one of these energy sources with the hope that we can find more specific information from this feasibility study. The Heat pump situation would be possible if we are able to take into consideration the latent heat that is found in the Wrangell Narrows or in the ground surrounding the School facilities. These areas keep a predictable temperature range that can be counted on to pull the heat from the water with compressors and refrigerant technology. Other heat sources that are available to our community include heating oil, propane, and cord wood. Many of our facilities already use heating oil and with increasing costs and pollution it is becoming more pressing for us to find additional heating sources. Electric resistance heat in Petersburg is produced from clean hydro electricity; however there are increasing concerns with limited capacity of the City's hydro generation capacity. With the large pull that the Community Center already has on the electrical grid we are in need to find ways to limit our drain on community services. The feasibility study proposed by this application will compare in detail the technical and financial feasibility of these various heat sources. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. We have multiple buildings with multiple boilers that we are looking at finding something more efficient. Below you will find the information on each of these buildings boilers: Municipal building 1959 Gabriel Boiler Fabrication Co. MFR.# 2265 BTU. 5840 EDR AEA13-006 Grant Application Page 9 of 20 7/3//2012 Renewable Energy Fund Round 6 ..141111P Grant Application ® ENERGY AUTHORTY Oil Fired Aquatic Center Boilers 2- 2006 Precision Boilers Inc. Model# PCW3-480D-480-150 Output: 1,680,000 BTU/Hr 3 Phase 480 Volt 577 Amps Electric Petersburg School District 2- 2005 Diesel Boilers Output: 1358 MBH 1984 Weil -McLain Diesel Boiler Output: 4184 MBH 1982 Cleaver Brooks Diesel Boiler Output: 4184 MBH Mountain View Manor — Elderly Housing 2 — 1980's Weil -McLain Diesel Boilers Output: 480 MBH Combustion Efficiency: 77-789'o Municipal Building 1954 Gabriel Oil -Fired Boiler Output: 4-13.6 GPH Combustion Efficiency: Unknown 4.2.2 Existing 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. Most of our facilities are using heating oil and grid electricity. Although we will have adequate heating fuel for the foreseeable future its deliverable price to Petersburg is continuing to rise due to high transportation costs. Grid electricity is generated locally from a couple of different hydro plants but during the winter our cold snaps cause for there to be an increased number of homes, businesses, and community facilities drawing down on the loads. This is cause for concern because we don't have any additional hydro projects online yet to fulfill the demand. If demand increases we will begin to rely on diesel powered generators at an increased price point to all customers. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The School District has used has used an average of 8,845 gallons of heating oil and 234,720 KWH of grid electricity per year for the years 2007 thru 2009. The current delivered price for #2 heating oil in Petersburg is $4.13/gallon which is an incredible jump from just a couple of years ago. While grid electricity is $0.109/KWH produced From our hydro plants. We expect to impact AEA13-006 Grant Application Page 10 of 20 7/1,2012 Renewable Energy Fund Round 6 Grant A[mlication INECD ENERGYAUTHORTY customers in two separate ways. The first will be through the opportunities for more customers to convert to electric as we begin to install projects that are suggested in the feasibility study. The second reason would allow us one more opportunity to show the community that there are effective new ways to cut consumption of fossil fuels. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, 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 • Anticipated annual generation • Anticipated barriers • Basic integration concept • Delivery methods At this point these items will be found out through the feasibility study. We will be looking at many different solutions, and seeking the most realistic option for each building. 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 and access issues. The land surrounding these facilities is owned by either the city or the school district. There will not be any issues that will arrive to this point. 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 Since we are only looking at a feasibility study we do not anticipate coming across any of the problems until we have chosen sites and projects lined up. 4.3.4 Environmental1 AEA13-006 Grant Application Page 11 of 20 713H2012 Renewable Energy Fund Round 6 idNINED �WIND Grant Application ENERGYAUTHORITY 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 Since we are only looking at a feasibility study we do not anticipate coming across any of the problems until we have chosen sites and projects lined up 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 The total cost for the feasibility study will be $56,750. At this time the school district and the city will be putting a combined $10,000 towards the costs associated with the study.(See Council resolution in the appendix) That leaves us requesting $46750 towards the feasibility study. The City will provide Facilities Maintenance staff in -kind assistance as no cost in order to maximize the use of grant funds. 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 At this time there aren't any O&M fees. We will have a better idea once the feasibility study has pointed out the best sources for sustainable heating for each. The city and school district have operated these facilities for many years and expects to continue operating them into the foreseeable future. Funding for operation and maintenance for these facilities comes from a AEA13-006 Grant Application Page 12 of 20 7,13''2012 Renewable Energy Fund Round 6 Grant Application �>ENERGYAUTHORITY combination of state and local funds, including user fees and local property and sales tax. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)/customer(s) • Potential power purchase/sales price - at a minimum indicate a price range • Proposed rate of return from arant-funded proiect N/A 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 Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Depending on which source- all should be continually available. Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt' grid, leave this section blank) i. Number of generators/boilers/other 5 boilers ii. Rated capacity of 4184/1358/1358/480/480 generators/boilers/other iii. Generator/boilers/other type Boilers iv. Age of generators/boilers/other 1982/2005/2005/1980's/1 980's/1 954 v. Efficiency of generators/boilers/other b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $8,000 average ii. Annual O&M cost for non- $5,000 average labor 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 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. AEA13-006 Grant Application Page 13 of 20 7/31/2012 Renewable Energy Fund Round 6 Grant Application Diesel [gal] Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends MEL--7 ENERGY AUTHORITY d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] School district: 84,494 gal, Mt. View Manor Elderly Housing: 11,300 gal Municipal Building: 6,360 gal ii. Electricity [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 To be determined in feasibility study (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] To be determined in feasibility study ii. Heat [MMBtu] To be determined in feasibility study c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] To be determined in feasibility study ii. Coal [tons or MMBtu] To be determined in feasibility study iii. Wood [cords, green tons, dry To be determined in feasibility study tons] iv. Other Project Cost a) Total capital cost of new system b) Development cost c) Annual O&M cost of new system d) Annual fuel cost AEA13-006 Grant Application To be determined in feasibility study To be determined in feasibility study To be determined in feasibility study To be determined in feasibility study Page 14 of 20 7/3//2012 Renewable Energy Fund Round 6 Grant Application M _ miu MME7 ENERGY AUTHORITY Project Benefits a) Amount of fuel displaced for i. Electricity b) ii. Heat To be determined in feasibility study iii. Transportation Current price of displaced fuel c) Other economic benefits d) Alaska public benefits Power Purchase/Sales Price a) Price for power purchase/sale Project Analysis a) Basic Economic Analysis $4.13/gal of Fuel Sustainability for the community Project benefit/cost ratio To be determined in feasibility study Payback (years) To be determined in feasibility study. 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 • Anticipated annual revenue (based on i.e. a Proposed Power 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 The feasibility study will help us to find out the potential savings that could be found by changing our boilers to electric with the opportunity to use alternative power sources. If we are able to displace oil as our main heating source we believe there could be significant savings. Right now AEA13-006 Grant Application Page 15 of 20 7/3//2012 Renewable Energy Fund Round 6 410r) doc-) Grant Application 4f®ENERGY AUTHORITY we incur $358,043.25 in fossil fuel costs each year. These 5 community facilities have boilers that are from the 1950's in some cases. Their efficiency is low and should be replaced. With the cost of heating oil at $4.13/gal we can hope that this feasibility study can point us in the direction of which sources would provide the most benefit financially to the community. The non -economic public benefits of evaluating heat pump systems for these high profile City buildings are numerous. A primary benefit will be the reduction of pollution from heating oil combustion in the downtown area. A second benefit will be a decreased dependency on heating oil as a fuel source. A third benefit will be a reduction in electricity demand by The School District/Municipal Building/Mountain View Manor for cooling (existing chiller is currently running throughout the year). A fourth and broader benefit will be that a heat pump system successfully integrated in these public buildings will demonstrate that similar systems may be used throughout Petersburg and the surrounding communities. 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 Since this project is still in the feasibility stages there will not be anything to sustain at this point. Once the study returns to us though the buildings as public facilities are owned entirely by the residents of the city and we will take the findings to the city council for review and further instruction. We are committed to searching out new ways for our community to be self-sustaining. We see this feasibility study as a great way for us to find a guideline for our future projects and milestones. We are committed to sharing our information with the Alaska Energy Authority in an effort to help other communities build for the future. If we can help to show sustainability in our facilities through this process we hope to share our knowledge and findings. 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 date this grant that we are seeking is the baseline for our facilities to build off of. We have AEA13-006 Grant Application Page 16 of 20 7/3//2012 Renewable Energy Fund Round 6 •� GONE; _ Grant Application 411E ENERGY AUTHORITY compiled a list of the facilities that are in the most need for help at this time and we are dedicated to finding solutions that will benefit our community members in the form of lower sustainable costs and maintenance. Once the grant is awarded we expect to act immediately so that we can seek further funding for the enactment of the suggestions found in the feasibility study. SECTION 8— LOCAL SUPORT Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project. See appendix for Letters of Support SECTION 9 — GRANT BUDGET Tell us how much you want 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. This grant has two project funding sources: 1) $10,000 from The City of Petersburg ( $5,000 from the city/ $5000 from the school district) 2) $46, 750 we are seeking as a grant from AEA Source of Matching Funds: Anticipat RE- Fund Grantee Cash/In- Milestone or Task ed Grant Matchin kindaFleder TOTALS Com leti Funds on Date Funds Grants/Ot her State G rants/Ot her Project scoping and contractor solicitation. 7/10/2012 $0 $0 $0 Detailed energy resource 8/31/2012 1 $46,750 $10,000 $56,750 analysis Identification of land 8/31/2012 1 $0 Iso I I $0 AEA13-006 Grant Application Page 17 of 20 7/3//2012 Renewable Energy Fund Round 6 Grant Application aw:_ ENERGY AUTHORITY and regulatory issues, Permitting and environmental analysis Detailed analysis of existing and future energy costs and markets, 8/31/2012 $0 $0 $0 assessment of alternatives Conceptual design analysis and cost estimate, detailed economic and 8/31/2012 $0 $0 $0 financial analysis Final report and 8/31/2012 $0 $0 $0 recommendations TOTALS $56,750 $56,750 $ 56,750 Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ $ See TOTALS $ $ attached proposal AEA13-006 Grant Application Page 18 of 20 7/3/12012 Renewable Energy Fund Round 6 Grant Application i6mr-, GONE)ENERGYAUTHORTY SECTION 10 —AUTHORIZED SIGNERS FORM Community/Grantee Name: City of Petersburg Regular Election is held: Date: September 17, 2012 1st Tuesday in October Each Year Authorized Grant Sianer(s): Printed Name Title Term Signature Stephen Giesbrecht City Manager Full Time Employee Kathy O'Rear City Clerk Full Time Employee Jody Tow Finance Director Full Time Employee D I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Stephen Giesbrecht City Manager Full Time Emglovee � A� Grantee Contact Information: Mailing Address: ' PO Box 329 Petersburg, Alaska 99833 Phone Number: 907 772.4425 Fax Number: 907 772.3759 E-mail Address: steve ci. petersburg. ak.us Federal Tax I D #: 92-6000142 Please submit an updated form whenever there is a change to the above information. AEA13-006 Grant Application Page 19 of 20 7/3//2012 Renewable Energy Fund Round 6 Grant Application ,tea Ej ENERGY AUTHORITY 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 separate resumes submitted with applications, if the individuals do not want their resumes posted. B. Letters demonstrating local support per application form Section 8. C. An electronic version of the entire application on CD per RFA Section 1.7. 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. 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 �1 . A) �l-na�SeY' Date 6)j if 1 2 AEA13-006 Grant Application Page 20 of 20 7/3/12012 /� /& AEA12-001 Grant Application Page 20 of 32 7/1//2011 Petersburg Municipal Power & Light P.O. Box 329 Petersburg, Alaska 99833 Phone: 907-772-4203 11 South Nordic Petersburg, AK 99833 9/ 10/2012 Renewable Energy Fund C/O Alaska Energy Authority 813 West Northern Lights Blvd. Anchorage, AK 99503 To whom it may concern, Energy, and specifically energy conservation, has come to the forefront in this community as our old hydro resources are overcome by load growth. The continued high price of heating fuel makes fuel switching to electricity an on -going trend. It's imperative, therefore that the community aggressively pursue demand side management measures, and explore alternate fuel sources. These efforts need to be realistic and sustainable. One such option is the use of heat pumps rather than conventional boilers (oil or electric fired). With our public schools and municipal buildings operating on oil fired boilers which are 25 or more years old, decision time is here. Studies must be made, followed by investment in more energy efficient equipment. Sincerely, Joe Nelson Petersburg Municipal Power and Light Superintendent Dr. Robert Thomason Telephone: (907) 772-4271 Superintendent i i Fax: (907) 772-4719 P.O. Box 289 Thomason@pcsd.us Petersburg, AK 99833 website: www.pcsd.us Iwta$ike. "Relieve. Ackteve. September 7, 2012 Mr. Donn Hayes, Director Petersburg Parks and Recreation Petersburg, AK 99833 Dear Mr. Hayes, The purpose of this letter is to express very strong support, on behalf of Petersburg City School District, for the energy efficiency grant that is being submitted on behalf of the City of Petersburg. Energy costs are an exceptionally large expenditure for Petersburg City School District. Every dollar spent on fuel oil is one dollar less that can be devoted to instruction or direct services to students. PCSD currently uses four (4) oil -fueled boilers consuming in the 2011 school year 84,494 gallons of fuel oil. The total cost of fuel oil for the district in the 2011 school year was $348,960. The District is very careful with its heating. Using current boilers it is unlikely the District will be able to reduce consumption. It assumed that the cost of fuel will continue to increase over time. Two of the boilers currently in service are over 25 years old. Petersburg City School District welcomes the opportunity to be one of the first school districts in Southeast Alaska to benefit from the benefits of heat pump technology. Installation of a more efficient heating system will release funds, due to savings, which can be applied to our primary enterprise, student learning. Sincerely, Robert 9'homason Robert Thomason Superintendent I � Alk- PETERSBURG ECONOMIC DEVELOPMENT COUNCIL ALASKA September 10, 2012 To Whom It May Concern: We are writing in support of the City of Petersburg's renewable energy grant application to fund a heating system retrofit feasibility study for several community buildings. While the city of Petersburg has access to relatively inexpensive electric energy, many of our heating systems are inefficient and rely on fossil fuels. Of particular concern is the heating expenses associated with the school district and the Mountain View Manor elderly housing facility. These facilities operate with very limited budgets and a good portion is dedicated to heating. While conversion to electric boilers is a possibility, we have limited hydropower available and adding significant additional loads to the existing system may exceed available capacity, especially during the winter months, and require use of our back-up diesel generators. This would drive up costs for every homeowner and business in our community. We realize there are renewable energy technologies available that could significantly increase the efficiency of our heating systems and move us toward a more cost-effective and sustainable path for operating these important public facilities. We appreciate the Alaska Energy Authority providing an opportunity for our community to access experts in the field to determine where we can realize the most savings for our investment and encourage the Authority to recommend this project to the Legislature for funding. Sincerely, Liz Cabrera Coordinator PO Box 750, Petersburg, Alaska 99833 P. 907.772.4042 - Email: petersburgedc®gmail.com www. petersbu rgecic . org Alaska Energy Engineering LLC 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 May 21, 2012 Juneau, Alaska 99801 jim@alaskaenergy.us SCOPE OF WORK Alaska Energy Engineering LLC will be the lead consultant for this project. The project manager and point of contact will be James Rehfeldt, P.E., who will be the prime consultant on all aspects of the work. The project team includes: • Doug Murray, P.E. of Murray and Associates P.C.: Will provide conceptual mechanical design and cost estimating • Ben Haight, P.E. of Haight & Associates, Inc. will provide conceptual electrical design and cost estimating. • Wayne Jensen, AIA of Jensen Yorba Lott, Inc. will provide architectural conceptual design and cost estimating services. We propose to provide a heating system retrofit analysis for the following buildings: • Stedman Elementary School • Mitkof Middle School • Petersburg High School • Petersburg Medical Center • Petersburg Aquatic Center • Mountain View Manor • Municipal Building The project team will apply their experience with optimizing building heating systems to pare down the multiple heating options for each building to the most feasible. This approach will be essential to providing this work at a reasonable cost. We will utilize our extensive experience to determine which buildings likely offer the greatest financial incentive for alternative heating investment. This will allow us to learn as we move down the priority list, dropping heating options for buildings when the investment potential becomes unfavorable. Buildings that have aged heating plants that are in need of replacement will offer the best incentive for alternative heating systems. For wood heating systems, buildings with high heat loads are most likely to generate the energy savings needed to offset higher construction and maintenance costs. It is likely that the ground source heat pump conversions will not be physically feasible or will not be easily retrofitted into some of the buildings. We anticipate applying ground source heat pump analyses to only favorable buildings. For air -source heat pumps, the analysis will likely be limited to air handling units with high outside air rates or hydronic heating systems that can be easily converted to heat pump systems such as in -floor heat. Alaska Energy Engineering LLC Preliminary Tasks Page 2 Upon receipt of notice to proceed, our first task will be to gather energy data and construction drawings for the schools. This information will be compiled electronically or assembled for pick-up during the site visit. Doug Murray will research equipment for the wood and heat pump heating systems. Research will be performed on heat pumps, wood boilers, pellet storage, operating and maintenance requirements, equipment service life, and product support. The research will be used to finalize the conceptual design of each heating system. Our equipment recommendations will be submitted prior to the site visit and discussed during the kickoff meeting. Jim Rehfeldt will research energy and economic criteria for the analysis. Our recommendations will be submitted and discussed during the kick-off meeting. Site Visit Jim Rehfeldt, Doug Murray, and Ben Haight will visit the buildings to gather information needed to assess the existing heating systems and conceptualize new systems. A kick-off meeting will be attended by the project team. The agenda will include an introduction of the project team, direction from the City of Petersburg on their objectives for the work, discussion of equipment standards, and energy and economic criteria. During the site visit, we will gather the following information: • Gathering data on building use, occupancy, and energy consumption. • Collecting drawings, O&M manuals, and other documentation on the existing heating systems and service life. ■ Determine ground source heat pump feasibility of each site. • Determining wood boiler and pellet storage locations and gaining Haines Borough concurrence. • Determining available electrical services and the capacity for each plant. • Determining the preliminary conceptual design of the wood heating systems. The site visit will also be an opportunity to meet with Petersburg Light & Power on hydroelectric availability and electricity costs and inflation projections. Conceptual Design The information from the site visit will form the basis of selecting equipment for the heating systems. Doug Murray will conceptualize the design and provide a narrative for each system. Ben Haight will assist with electrical conceptual design, a narrative, and cost estimates. Wayne Jensen will assist with architectural design and cost estimates. Jim Rehfeldt will perform a life cycle cost analysis compares the capital, maintenance, replacement, and energy costs of heating each building. Not all heating systems options —electric boiler, ground source heat pump, air -source heat pump, wood boiler, etc. —will be suitable to each school. Upon selection of preferred heating systems, an analysis will compare the life cycle cost of the existing systems with the preferred alternative energy systems. A sensitivity analysis will be applied to each option to show how the findings vary with changes in energy inflation. Alaska Energy Engineering LLC Draft Report Page 3 The information will be compiled into a draft report with appendixes showing cost estimates, energy calculations, and life cycle cost spreadsheets. Final Report The project team will incorporate comments and finalize the report. The report will be delivered electronically. Jim Rehfeldt and Doug Murray will present the findings of the study to the City of Petersburg and answer questions. Schedule The draft report will be delivered 120 days after notice to proceed. The presentation and final report will be delivered 30 days after the draft. by: Jim Rehfeldt, P.E. Alaska Energy Engineering LLC 25200 Amalga Harbor Road Tel/Fax 907 7891226 Juneau, Alaska 99801 jim@alaskaenergy us Fee Estimate May 21, 2012 City of Petersburg Facility Heating System Retrofit Study Task 1: Retrofit Study Scope of Work: In accordance with attached scope of work Engineering Services I Cty Unit Unit Cost Total General Work Alaska Energy Engineering Corrspondance and coordination 12 hr $140 $1,680 Equipment Standards, Technical memo 2 hr $140 $280 Energy and Economic Criteria, Technical memo 8 hr $140 $1,120 Murray & Associates Equipment Standards, Technical memo 6 hr $140 $840 Corrspondance and coordination 8 hr $140 $1,120 Gathering documents 8 hr $140 $1,120 Haight & Associalies Gathering documents 4 hr $170 $680 Corrspondance and coordination 8 hr $170 $1,360 Jensen Yorba Lott Corrspondance and coordination 4 hr $140 $560 Site Visit Alaska Energy Engineering 24 hr $140 $3,360 Expenses 1 LS $1,500 $1,500 Murray & Associates 24 hr $140 $3.360 Expenses 1 LS $1,250 $1,250 Haight & Associalies 10 hr $170 $1,700 Expenses 1 LS $900 $900 Jensen Yorba Loll Petersburg Medical Center Alaska Energy Engineering Energy analysis, life cycle cost analysis, report draft 12 hr $140 $1,680 Murray & Associates Conceptual mechanical design, narrative, cost estimate, review 6 hr $140 $840 Haight & Associalies Conceptual electrical design, narrative, cost estimate 3 hr $170 $510 Jensen Yorba Lott Conceptual design, narrative 1 5 hr $140 $210 Mountain View Manor Alaska Energy Engineering Energy analysis, life cycle cost analysis, report draft 12 hr $140 $1,680 Murray & Associates Conceptual mechanical design, narrative, cost estimate, review 6 hr $140 $840 Haight & Associalies Conceptual electrical design, narrative, cost estimate 3 hr $170 $510 Jensen Yorba Lott Conceptual design, narrative 1.5 hr $140 $210 Alaska Energy Engineering LLC 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy us Fee Estimate May 21, 2012 City of Petersburg Facility Heating System Retrofit Study Stedman Elementary School Alaska Energy Engineering Energy analysis, lite cycle cost analysis, report draft 12 hr $140 $1.680 Murray & Associates Conceptual mechanical design, narrative, cost estimate, review 6 hr $140 $840 Haight & Associaties Conceptual electrical design, narrative, cost estimate 3 hr $170 $510 Jensen Yorba Lott Conceptual design, narrative 1.5 hr $140 $210 Petersburg Middle/High School Alaska Energy Engineering Energy analysis, life cycle cost analysis, report draft 12 hr $140 $1,680 Murray & Associates Conceptual mechanical design, narrative, cost estimate, review 6 hr $140 $840 Haight & Associaties Conceptual electrical design, narrative, cost estimate 3 hr $170 $510 Jensen Yorba Lott Conceptual design, narrative 1 5 hr $140 $210 Petersburg Aquatic Center I Alaska Energy Engineering { Energy analysis, life cycle cost analysis, report draft I 12 hr $140 $1,680 Murray & Associates Conceptual mechanical design, narrative, cost esllmate, review 6 hr $140 $840 Haight & Associaties Conceptual electrical design, narrative, cost estimate 3 hr $170 $510 Jensen Yorba Lott Conceptual design, narrative i 1.5 hr $140 $210 Municipal Building Alaska Energy Engineering Energy analysis, life cycle cost analysis, report draft { 12 hr $140 $1,680 Murray & Associates Conceptual mechanical design, narrative, cost estimate, review 6 hr $140 $840 Haight & Associaties Conceptual electrical design, narrative, cost estimate 3 hr $170 $510 Jensen Yorba Loll Conceptual design, narrative 1.5 hr $140 $210 2 Alaska Energy Engineering LLC 25200 Amalga Harbor Road Tel/Fax: 907 7891226 Juneau, Alaska 99801 jim@alaskaenergy.us City of Petersburg Facility Heating System Retrofit Study Fee Estimate May 21, 2012 Report Draft Alaska Energy Engineering 40 hr $140 $5,600 Murray & Associates 6 hr $140 $840 Haight & Associaties 5 hr $170 $850 Jensen Yorba Lott 3 hr $140 $420 Incorporate comments Alaska Energy Engineering 8 hr $140 $1,120 Final report Alaska Energy Engineering 24 hr $140 $3,360 Presentation Alaska Energy Engineering 10 hr $140 $1,400 Expenses 1 LS $800 $800 Murray & Associates 10 hr $140 $1.400 Expenses 1 LS $700 $700 subtotal I 364 I $56,760 PROJECT TOTAL 364.0 $ 56,760 3 CITY OF PETERSBURG Resolution # 2025 A RESOLUTION IN SUPPORT OF THE CITY OF PETERSBURG'S APPLICATION TO ALASKA ENERGY AUTHORITY'S RENEWABLE ENERGY FUND FOR FUNDING OF A FEASIBILITY STUDY EVALUATING RENEWABLE HEATING SYSTEMS FOR CERTAIN PUBLIC BUILDINGS WHEREAS, the City of Petersburg (which also includes the Petersburg City School District but will be known here -in as part of the City of Petersburg for purposes of this resolution) currently heats 5 buildings using fossil fuels and incurs in excess of $358,043.25 in total heating costs each year; and WHEREAS, the City of Petersburg intends to install more efficient heating systems that makes direct use of renewable energy if these systems will result in an overall energy savings to the city; and WHEREAS, the Alaska Energy Authority has advertised for Renewable Energy Grant Round 6 requests pursuant to House Bill 152 (Chapter 31 Session Laws of Alaska 2008) with a deadline of September 26, 2012; and WHEREAS, the City of Petersburg is an applicant for a grant from the Alaska Energy Authority for the funding of a feasibility study to evaluate renewable energy heating systems and potential cost savings; and WHEREAS, the City of Petersburg ($5000 of that coming from the Petersburg City School District) has allocated $10,000 to be designated as a match for the costs of the feasibility study; and WHEREAS, Council is aware of the requirement of providing matching funds and the obligations and responsibilities that will be incurred by the City upon acceptance of the grant; and NOW THEREFORE BE IT RESOLVED THAT the Petersburg City Manager is hereby authorized to negotiate and execute any and all documents required for granting and managing funds on behalf of the City of Petersburg in accordance with all federal state, and local, laws including existing credit and federal tax obligations. FURTHER BE IT RESOLVED THAT the Petersburg City Manager is established as the agent for the City administration of this project and is also authorized to execute subsequent amendments to said grant agreement to provide for adjustments to the project within the scope of services or tasks, based upon the needs of the project. Passed and Approved by the Petersburg City Council on September 3, 2012. AI wyer, Mayor Kathy O'Rear, City Clerk