HomeMy WebLinkAboutOuzinkie AEA RoundVRequest
RENEWABLE ENERGY FUND
ROUND V GRANT APPLICATION
AEA 12-001
Mahoona Hydroelectric Dam Replacement
Submitted By: City of Ouzinkie
26 August 2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 1 of 99 7/1/2011
Application Forms and Instructions
The following forms and instructions are provided to assist you in preparing your application for
a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA)
and the forms are available online at: http://www.akenergyauthority.org
Grant Application
Form
GrantApp5.doc Application form in MS Word that includes an outline of
information required to submit a complete application.
Applicants should use the form to assure all information is
provided and attach additional information as required.
Application Cost
Worksheet
Costworksheet
5.doc
Summary of Cost information that should be addressed by
applicants in preparing their application.
Grant Budget
Form
GrantBudget5.
doc
A detailed grant budget that includes a breakdown of costs by
milestone and a summary of funds available and requested to
complete the work for which funds are being requested.
Grant Budget
Form Instructions
GrantBudgetIn
structions5.doc
Instructions for completing the above grant budget form.
Authorized
Signers Form
Authorized
signers
form5.doc
Form indicating who is authorized to sign the grant, finance
reports and progress reports and provides grantee information.
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 completion of each phase.
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.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 2 of 99 7/1/2011
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City of Ouzinkie
Type of Entity: Fiscal Year End
Municipal Government - 2nd Class City 30 June
Tax ID # Tax Status: For-profit or X non-profit ( check one)
Mailing Address
POB 109
Ouzinkie AK 99644
Physical Address
3rd & C Street
Ouzinkie AK 99644
Telephone
907.680.2209
Fax
907.680.2223
Email
cityofouzinkie@ouzinkie.org
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Dan Clarion
Title
Mayor
Mailing Address
POB 109
Ouzinkie AK 99644
Telephone
907.680.2209
Fax
907.680.2223
Email
ouzinkiemayor@ouzinkie.org
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
x 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 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
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.
Yes
or
No
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
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.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 3 of 99 7/1/2011
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)
Type in your answer here and follow same format for rest of the application.
Mahoona Hydroelectric Dam Replacement
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.
Location – latitude and longitude or street address or community / communities served:
City of Ouzinkie, Spruce Island, 3rd & C Street, Ouzinkie, AK 99644
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind Biomass or Biofuels
x Hydro, including run of river Transmission of Renewable Energy
Geothermal, including Heat Pumps Small Natural Gas
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)
Reconnaissance Design and Permitting
x Feasibility Construction and Commissioning
x Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The City of Ouzinkie (“City”) proposes to replace an existing timber buttress dam at Mahoona
Lake, located approximately 1.5 miles east of the City on Spruce Island near Kodiak, Alaska.
Funds requested in this Renewable Energy Grant application are needed to perform a feasibility
analysis and conceptual design for a proposed replacement dam located downstream of the
existing wooden dam. The feasibility analysis will include evaluation of the existing 6,000 foot,
18-inch diameter PVC penstock, a 1.5 mile access road, and a (125 kW) hydroelectric
powerhouse.
The replacement dam will be designed to allow for an increase of holding capacity from a
current 400 acre-feet, to a post-construction capacity of 600 acre-feet. This 50% increase in
capacity will provide uninterrupted use of the hydroelectric generators, a potential increase in
power production capacity, and eliminate the need for supplemental diesel-generated power.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 4 of 99 7/1/2011
The scope of this project will be consistent with the requirements of Phase II Feasibility
Analysis, Conceptual Design, as set forth in Section 2.4 of the Round V grant application
instructions dated 1 July 2011.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 5 of 99 7/1/2011
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.)
When fully functional, the Mahoona Dam will support power generation for the entire electric
utility customer base, and a projected increase in demand (see Section 4.2.3, below). In
addition, water from the Mahoona Dam impoundment is used for the City water supply.
Replacement of the existing timber buttress dam will ensure the long -term stability of the City’s
electric and water utilities, and will significantly lower the cost of power to consumers. Specific
benefits of the project include:
Improved public safety
Reduced cost of diesel fuel, resulting in lower cost to consumers
Reduction of Power Cost Equalization (PCE) subsidies from the State of Alaska
Support for economic development and job creation
Continuity of utility operations with reduced cost of operations and maintenance
Additional discussion of project benefits is presented in Section 5 of this application.
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source
of other contributions to the project.
The City intends to complete Phase 1 Reconnaissance of the project with a combination of cash
contributions, grant/appropriated funds and in-house resources. This will include a Periodic
Safety Inspection, permitting for dam repairs, design and construction of dam repairs, and
access road repairs. The estimated cost of these activities is $410,000. Some of this work will
directly benefit the Phase II activities described in this grant application (see Section 4.4.1,
below).
Phase II Feasibility and Conceptual Design is expected to cost $527,500. Much of this cost is
driven by the significant geotechnical and field investigation requirements for obtaining a
Certificate of Approval to Construct, Modify, Remove or Abandon a Dam, pursuant to State of
Alaska dam safety regulations. Other costs are related to the engineering evaluation of the
access road, penstock, saddle dike and powerhouse, all corollary requirements of the permitting
and design process.
The City is requesting Renewable Energy Grant funds in the amount of $467,500. Matching
funds from the City are $60,000.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 6 of 99 7/1/2011
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. $467,500
2.7.2 Other Funds to be provided (Project match) $60,000
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $527,500
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.4 Total Project Cost (Summary from Cost Worksheet
including estimates through construction)
$5,882,000*
2.7.5 Estimated Direct Financial Benefit (Savings) $5,500,000
2.7.6 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.)
$
*Planning level estimates from City adopted Capital Improvement List, FY 2011 – 2016.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 7 of 99 7/1/2011
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.
The City of Ouzinkie is currently pursuing a variety of capital improvement projects to support
public safety, economic development and overall sustainability of the community. These
include community road improvements, water/wastewater system upgrades, construction of
dock and industrial area improvements, and renewable energy projects, including Mahoona
Dam hydroelectric system. Many of these projects are being implemented throug h
partnership with Ouzinkie Native Corporation (ONC), and Spruce Island Development
Corporation (SIDCO), a 501(c)3 entity formed by the community to support overall
development.
In view of the broad range of project and program requirements, the City has engaged the
services of RMA Consulting Group, LLC (RMA) as program managers. For purposes of the
Mahoona Dam project described in this Renewable Energy grant application, RMA is
partnered with R&M Consultants, an Anchorage-based firm specializing in earth sciences,
environmental and civil engineering. R&M has particular experience with hydroelectric
facilities, dam safety, permitting and construction (See Section 3.4, below).
This highly qualified project team will work under the direction of Mayor Dan Clarion, the City’s
grant administrator. RMA will provide project oversight, act as liaison to State agencies, and
support integration of the Mahoona Dam project with the City’s capital improvements program
and economic development priorities. R&M will provide engineering services and project
management support for the project, including direct interface with the Department of Natural
Resources Dam Safety and Construction Unit (DSCU).
In preparation for the feasibility study and conceptual design which are the subject of this
grant application, R&M will be conducting a Periodic Safety Inspection of the Mahoona Dam
hydroelectric system in order to obtain a Certificate to Construct, Modify, Remove or Abandon
a Dam.
Both RMA Consulting Group and R&M Consultants are currently under contract to the City of
Ouzinkie to support the Mahoona Dam Project.
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.
Project Manager for the Mahoona Dam Feasibility Study and Conceptual Design will be Mr.
Matthew J. Morrow, P.E. Mr. Morrow is Group Manager for Construction Administration and
Industrial Projects for R&M Consultants. He is a Senior Civil Engineer with more than 30 years
of experience with public works projects, including dam inspections, airport design, value
engineering, bridge foundation studies, and construction administration.
Mr. Morrow has performed a preliminary dam and site inspection for Mahoona Dam and has
reviewed the results with ADNR DSCU. He will be the lead engineer for R&M Consultant’s
performance of the Mahoona Dam Periodic Safety Inspection, expected to be completed by
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 8 of 99 7/1/2011
November 2011. He will also manage the interface with DSCU for obtaining a certificate to
repair the dam (see Section 4.3, below).
Mr. Morrow is a Professional Civil Engineer (Alaska #CE9465), an Alaska Certified Erosion and
Sediment Control Lead (AGC), and a member of the Association of Dam Safety Officials,
Society of American Military Engineers, and National Society of Professional Engineers. His
complete resume is provided in Section 10-A.
3.2 Project Schedule
Include a schedule for the proposed work that will be funded by this grant. (You may include a
chart or table attachment with a summary of dates below.)
The City is currently completing Phase I Reconnaissance for the project, including the Periodic
Safety Inspection (PSI) required by 11 AAC 93.159. In addition, a field inspection report by
Department of Natural Resources Dam Safety and Construction Unit (DSCU) indicates that the
structural integrity of the existing dam is a concern and should be corrected as soon as
practicable. Completion of the PSI will allow the City to obtain a certificate to repair the existing
dam in order to maintain structural integrity until a new dam is constructed. Completion of
Phase I will also ensure that DSCU is fully aware of the proposed dam replacement and able to
provide guidance and assistance during the feasibility and conceptual design tasks described in
this grant application.
The overall project schedule is shown in Table 1, below.
Phase I Reconnaissance Completion Date
Periodic Safety Inspection 15 September 2011
Structural Evaluation of Existing Dam 15 September 2011
Draft Periodic Safety Inspection Report 15 October 2011
Final Periodic Safety Inspection Report 1 November 2011
Structural Evaluation Report and Recommendations 15 October 2011
Complete Update of O&M Manual 15 November 2011
Write Emergency Action Plan 15 November 2011
Engineering Evaluation Report 15 November 2011
Phase II Feasibility and Conceptual Design Period of Work
Project Startup 5 - 6 July 2012
System Review 10 July – 15 July 2012
Site Investigation and System Evaluation 10 July - 30 August 2012
Geotechnical Services, Survey, Mapping 1 August – 15 December 2012
Engineering Evaluation of Access Road, Penstock
and Saddle Dike
15 August – 1 October 2012
Environmental Review 1 August – 1 October 2012
Permitting 1 August – 1 October 2012
Conceptual Design and Cost Estimating 15 October 2012 - 10 January 2013
Final Report and Recommendations 10 January – 10 February 2013
Table 1. Project Schedule
3.3 Project Milestones
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 9 of 99 7/1/2011
Define key tasks and decision points in your project and a schedule for achieving them. The
Milestones must also be included on your budget worksheet to demonstrate how you propose to
manage the project cash flow. (See Section 2 of the RFA or the Budget Form.)
Milestones and tasks for this project will be consistent with Section 2.4 Phase II Feasibility
Analysis, Conceptual Design Requirements of the grant application instructions, dated 1 July
2011. Milestone and task descriptions for the proposed project are provided below:
1. Project Startup – Includes grant execution and setup for grant
management/administration. Meetings with City and project team to finalize scope and
schedule and prepare for project mobilization.
2. System Review – includes the initial data collection, plan review, review of engineering
reports, and analysis of the existing system, including on-site review, needed as part of
the startup of the project. This work will allow the project team to become familiar with
the sizing of the reservoir, powerhouse requirements, water system
connections/requirements, etc., prior to getting into the detailed work of site investigation
and system evaluation.
3. Site Investigation and System Evaluation – Conduct field inspection and evaluation of
the Mahoona Dam hydroelectric system, including the existing dam, saddle dike,
embankments, spillway, penstock and powerhouse. Evaluate and define requirements
for expansion of the impoundment area from the current 400 acre-feet to the proposed
600 acre-feet. Verify conditions and requirements of the Periodic Safety Inspection and
certificate to repair a dam, as issued by DSCU. Collect field data required for conceptual
design and cost estimating.
4. Geotechnical Services, Survey, Mapping - Perform a complete geotechnical survey of
the site in order to select the preferred location for the replacement dam. As indicated,
conduct soils analysis, seismic hazard analysis, geologic mapping, test drilling and
surveying sufficient to support the conceptual design and cost estimating tasks.
5. Engineering Evaluation of Access Road and Penstock and Saddle Dike – In
conjunction with the site investigation and system evaluation tasks of Milestone #3,
perform an engineering evaluation of the Mahoona Dam access road, the hydroelectric
system PVC penstock piping and controls, and the existing saddle dike. Determine
repair, replacement or upgrade requirements for the road and penstock as related to
replacement of the existing Mahoona Lake dam. Coordinate these efforts with DSCU in
order to identify requirements for obtaining a Certificate of Approval to Construct, Modify,
Remove or Abandon a Dam. Include necessary improvements to the road and/or
penstock in the conceptual design and cost estimating for the proposed dam
replacement.
6. Environmental Review – Assess potential environmental impacts of the proposed
project, with special attention to fish and wildlife habitat. Recommend solutions for
addressing potential environmental impacts and incorporate in final feasibility and
conceptual design report.
7. Permitting – Obtain permits and authorizations for conducting field operations related to
the proposed feasibility study. Evaluate permit requirements for the proposed dam
replacement and include findings in the final feasibility and conceptual design report.
8. Conceptual Design and Cost Estimating – Prepare conceptual design at the planning
level of detail (10 percent completion). Provide recommended approach for dam
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 10 of 99 7/1/2011
replacement and system improvements, including the access road, penstock, saddle
dike and powerhouse. Develop planning level budget estimates for recommended
designs. Ensure that design criteria and proposed construction methodology are
consistent with DSCU statutory and regulatory requirements.
9. Final Report and Recommendations – Prepare a written report of findings and
recommendations. Include design criteria used, evaluation of alternatives, conceptual
design drawings, budget breakdown, project schedule, and recommendations for
implementation of Phase III Final Design and Permitting.
3.4 Project Resources
Describe the personnel, contractors, 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 has engaged a project team that is highly qualified to perform the work described in
this grant application. In addition, the City has an experienced management and administrative
team that will oversee the project and manage grant administration. City-owned equipment and
staff will be available to support site survey and field investigation activities for the dam, access
road, penstock and saddle dike. These efforts will be coordinated to ensure cost-effective
completion of all milestones and tasks.
The City is currently completing Phase I Reconnaissance for the Mahoona Dam project using
the team of RMA Consulting Group and R&M Consultants. The City intends to use its existing
team for continuation of the project in Phase II Feasibility and Conceptual Design. The project
team will perform all tasks required for the successful completion of Phase II. In addition, the
team will assist the City with the acquisition of any specialized support or equipment needed to
perform the field investigations.
The City’s project team approach has been highly successful for recent projects, including the
$11 million Ouzinkie Airport Construction (DOT&PF, Pruhs Construction) and the $9 million
Ouzinkie Dock/Industrial Area construction project (West Construction). The City intends to
provide the same high level of support and services to ensure the success of the Mahoona Dam
replacement project.
RMA will provide project oversight and administrative support as the City’s representative. This
will include interface with State agencies, funding entities, project stakeholders (e.g., tribal
organizations, SIDCO, Kodiak Island Borough) and the R&M engineering team. Mr. Ray Mann,
President and Senior Consultant for RMA, will perform these and other functions as directed by
Mayor Clarion.
Mr. Robert Kirkman, Technical Services Manager for RMA, will provide support for logistical
operations, permitting, mapping and survey.
As described in Section 3.1, above, Mr. Matthew Morrow, P.E. will act as Project Manager. He
will oversee all engineering, geotechnical, survey, design and cost estimating activities for the
project, as well as directing and managing field operations related to the site investigations and
system evaluation tasks of the project. Mr. Morrow will have an experienced engineering and
technical team to support the project. It includes:
John K. Magee, P.E., Senior Civil Engineer*
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 11 of 99 7/1/2011
Duane H. Anderson, P.E., Senior Structural Engineer
Robert M. Pintner, P.E., Senior Geotechnical Engineer
H. Hank Brinker, PLS, CFedS, Senior Land Surveyor
*(It should be noted that John Magee will be available for consultation and senior engineering
support throughout the project. Mr. Magee is one of the most experienced hydroelectric and
water control engineers in Alaska (40+ years). His project experience and expertise will be
invaluable to the Mahoona Dam replacement project.)
A team organization chart is provided, below. Company profiles and resumes for all key
personnel are provided in Section 10-A.
Organization Chart
City provided equipment will include any of the following items, as needed to support field
operations:
Four wheel drive loader/backhoe
Link-Belt L 120 track hoe
Four wheel drive pickup trucks (2)
Honda four wheel drive ATV
12 cubic yard dump truck (Ouzinkie Native Corporation)
The City is also prepared to provide the following services to support fieldwork and on-site visits:
Portable toilets with pumping service
Solid waste collection
Utility services: water, sewer, electricity
Lodging: private residence, Bayview Bed and Breakfast
3.5 Project Communications
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 12 of 99 7/1/2011
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The City has identified Mr. Matthew Morrow, PE as the Project Manager and primary point of
contact for communications with AEA’s project manager. He will ensure an effective,
continuous flow of communications throughout the project period. The Project Manager will be
responsible for conducting weekly project team review meetings and written status reports.
Mayor Dan Clarion, or his designated representative, will participate in status review meetings
and will be kept informed on progress and any unresolved issues.
The Project Manager will prepare and submit AEA monthly progress reports to the City for
approval and submission to the AEA project manager. Internet communications will be
maintained throughout the project period, supplemented by teleconferences on an as needed
basis. All data, findings, recommendations, reports, and related communication will be fully
documented and made available to the City and AEA, as required.
3.6 Project Risk
Discuss potential problems and how you would address them.
This phase of the project is considered to be low risk. The greatest potential risks are weather
and field conditions, which could potentially cause project delays for personnel, equipment and
supplies. Equipment failure also presents a low-level risk of project delay. The City and all
project team members are familiar with operating in extreme weather conditions and in
challenging field environments. Contingency planning is an integral part of the field
investigation tasks described in this grant application, and potential risks have been considered
in the development of milestones, tasks and schedule for this project.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 13 of 99 7/1/2011
SECTION 4 – PROJECT DESCRIPTION AND TASKS
Tell us what the project is and how you will meet the requirements outlined in Section 2 of
the RFA.
The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
If you are applying for grant funding for more than one phase of a project provide a
plan and grant budget form for completion of each phase.
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.
The 2nd Class City of Ouzinkie (ū-zinc-kee) is located on Spruce Island, ten miles off the
northerly coast of Kodiak Island and 247 air miles from Anchorage. The 2010 U.S. Census
records a population of 161, with 79.5% American Indian or Alaska Native and 20.5% non-
Native.
Spruce Island
The community also includes the Native Village of Ouzinkie (tribal council) and Ouzinkie Native
Corporation (ONC), recognized tribal organizations under the Alaska Native Claims Settlement
Act. The City, tribal council and ONC are members of the non-profit community development
organization, Spruce Island Development Corporation (SIDCO), which supports effective long-
term economic development, project planning and implementation.
Ouzinkie is only accessible by water or air. A new 3,780-foot airport runway was completed in
2010, and the City dock and industrial area are currently being upgraded with the expectation
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 14 of 99 7/1/2011
that State ferry service by the M/V Tustamina will be initiated in the near future. These
improvements, along with the economic development efforts of SIDCO will promote both
population and economic growth over the next several years.
The City of Ouzinkie operates water, wastewater and power utilities to serve public necessity
and convenience. The water system and a 125 kW hydroelectric power plant rely on the
impoundment of approximately 400 acre-feet of water at Mahoona Lake, approximately 1.5 miles
east of the city.
Mahoona Lake Dam and Reservoir
A field inspection of the Mahoona Lake Dam was conducted by the Alaska Department of
Natural Resources Dam Safety and Construction Unit on 10 June 2011 (see Appendix J). The
report noted that the Mahoona Dam is in poor condition, including a degradation of structural
integrity. Although some deficiencies can be corrected “through aggressive maintenance”, the
report concludes, “It is unlikely that even a very good repair procedure will alleviate the need for
similar repair efforts in the future.”
The deteriorated and potentially unsafe condition of the dam indicates the need for construction
of a new dam. This conclusion is further supported by two additional priorities of the community:
1. Increased holding capacity of the Mahoona Dam impoundment to stabilize year-
round power production, thus avoiding excess fuel cost for diesel power
generation.
2. Use of excess power generation to support the new airport, harbor development
and commercial/industrial growth.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 15 of 99 7/1/2011
Replacement of the Mahoona Dam and its ancillary benefits to the community have been
recognized by the Ouzinkie City Council in its adopted FY 2011 – 2016 Capital Improvements
List (see Section 4.3, below). Economic development impacts are detailed in The Community of
Ouzinkie, Strategies for Economic Development and Integrated Business Plans, published by
the Spruce Island Development Corporation in April 2007.
This grant application addresses the need to replace the Mahoona Dam and discusses the steps
being taken by the City to plan for a temporary repair of the existing structure, while pursuing the
design and construction of the new facility.
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.
The proposed energy resource is Mahoona Lake, located in Protracted Sections 14, 15 and 23
of Township 26 South, Range 20 West, Seward Meridian, and an unnamed stream, a tributary of
Katmai Creek, located in Section 13, Township 26 South, Range 20 West, Seward Meridian.
The Mahoona Dam impoundment provides a current resource of approximately 400 acre-feet.
The proposed feasibility study and conceptual design will examine the potential for increasing
the size of the impoundment to 600 acre-feet.
Alaska Department of Natural Resources Water Rights Certificates have been issued as follows:
1. Unnamed Tributary of Katmai Creek: File Number 39832
2. Mahoona Lake: File Number 13917
4.2 Existing Energy System
Mahoona Lake Dam was constructed in 1987 to provide hydroelectric power and a water supply
to the City of Ouzinkie. It is a timber buttress dam composed of wooden lagging (tongue and
groove) running the height of the dam, which is supported by a series of horizontal girts
(stringers) running parallel to the major axis of the dam.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 16 of 99 7/1/2011
Mahoona Dam
The dam was modified in 1996 to include raising the timber portion of the dam, lengthening the
dam with sheetpile walls on each end, constructing a new concrete spillway to the north of the
dam structure and the addition of a small earthen saddle dam about 100 meters south of the
main dam (Source: Mahoona Lake Dam Periodic Safety Inspection, HDR Alaska, Inc., 20
November 2007).
The Ouzinkie hydroelectric power system was developed by Focus Energy Corporation, a wholly
owned corporation of the City of Ouzinkie (“the Utility”), in 1984. The existing system consists of
Mahoona Lake Dam, an approximately 6000 foot, 18-inch diameter PVC penstock, a 125 kW
hydroelectric generator, and associated power transmission and distribution system.
Backup power is provided by a utility-owned diesel power plant with an output capacity of 200
kW (see Section 4.,2.1, below). The control system provides automatic switchover when
hydroelectric generation is interrupted.
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.
The configuration of the Ouzinkie utility power system is as follows:
Mahoona Dam and associated impoundment of Mahoona Lake
A 6000-foot, 18-inch diameter PVC penstock
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 17 of 99 7/1/2011
Hydroelectric powerhouse containing 125 kW Kato Engineering/Reliance Electric
generator
Power transmission and distribution system
Backup diesel generation powerhouse containing:
190 kW John Deere
100 kW John Deere
45 kW John Deere
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.
Existing energy resources are hydroelectric power generation from the Mahoona Lake
impoundment, and the backup diesel power generation system described in Section 4.2.1,
above.
Current peak demand for power in Ouzinkie is approximately 110 kW. This demand can be met
(with excess power available for expansion) by the 125 kW capacity of the hydroelectric system.
However, water usage for hydroelectric generation must be balanced with the need for City
water supply. In addition, water volume can be affected during periods of low precipitation.
Therefore, power supply must be supplemented by diesel power generation from the generation
facilities described in Section 4.2.1, above.
The Power Cost Equalization (PCE) report for FY 2010 shows a fuel consumption of 24,536
gallons, with an average cost of fuel of $3.29. When combined with the cost of diesel plant
operations and maintenance, the annual cost for supplemental power is approximately $100,000.
(It should be noted that the most recent monthly PCE report reflects a cost of fuel of $4.52, or an
increase of more than 37 percent over the prior year.)
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
As indicated above, the City provides a combination of hydroelectric and diesel generated power
to its customers, based on the operating conditions of the hydroelectric system. The goal of this
project is to maximize the availability of hydroelectric power in order to lower the cost of power
for utility customers, and reduce, or eliminate, State subsidy through PCE.
The PCE Report for Nonregulated Utilities filed with the Alaska Regulatory Commission for the
period July 2009 to June 2010 provides the following market data:
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 18 of 99 7/1/2011
Market Data
Class Customers Revenue
Residential 77 $95,248
Commercial 9 $94,775
Community Facilities 7 $4,055
Federal/State Facilities 1 $1,564
Total: $195,642
Total kWh generated: 675,430 kWh
Total utility operating expense: $266,258
Cost of power related to fuel: $79,877
Total cost of power: $0.4823 kWh
PCE subsidy to residential customers: $0.2482 kWh
Table 2. Market Data
With diesel fuel prices currently at $4.52 per gallon, the cost of power operations has increased
drastically, and will likely continue to increase. The proposed dam replacement and expansion
of Mahoona Lake holding capacity is the most cost-effective way to increase the year-round use
of renewable energy and to substantially reduce the cost of power to residents and customers.
Lower cost power will also support the City and SIDCO plans for commercial and industrial
expansion.
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.
The deterioration and safety deficiencies of the Mahoona Lake Dam have been well
documented, including a recent Field Inspection by DSCU (see Appendices I and J). DSCU has
identified Mahoona Dam as among its top priorities in the State for remediation/replacement, and
the agency strongly supports the proposed replacement described in this application. The City
of Ouzinkie has identified dam safety improvements as its number one capital improvement
priority, and is currently seeking funds for the following projects:
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 19 of 99 7/1/2011
CITY OF OUZINKIE
CAPITAL IMPROVEMENT LIST
FY 2011-2016
1. Hydroelectric Power System
A. Mahoona Dam Repair
B. Mahoona Dam Access Road
C. Mahoona Dam Replacement
A. Mahoona Dam Repair $350,000
The Alaska Department of Natural Resources Dam Safety and Construction Unit (“Dam
Safety”) conducted a field inspection of the Mahoona Dam on 10 June 2011. The resulting
Field Inspection Report concludes in part:
At this point the deficiencies at the Mahoona Dam could likely be corrected through
aggressive maintenance. The repair of the timber section would almost certainly require a
drawdown of the reservoir, which will impact the City of Ouzinkie’s water and power supply
operations. It is unlikely that even a very good repair procedure will alleviate the need for
similar repair efforts in the future.
The safety issues identified in the report are of the highest concern to the City, both for
protecting the City’s water supply and its hydroelectric generation system. If the dam were to
fail, significant damage would occur to the powerhouse, other facilities and to important fish
habitat. The City should seek federal and State funding to repair the dam during the next
construction season (FY 2013). The engineering cost estimate for the repair is $350,000.
[Note: The City will need to identify funding ($10,000 - $15,000) for a Periodic Safety
Inspection (PSI) as required by 11 AAC 93.159. The PSI is necessary to obtain a Certificate
of Approval to Repair a Dam.]
B. Mahoona Dam Access Road $750,000 - $1,100,000
The City intends to repair the Mahoona Dam and eventually replace it. Access to the site
must be upgraded in order to complete the repair and replacement projects. The City is
currently working on the lower segment of roadway; however, the upper segment will require
substantial improvement to allow heavy equipment and materials to reach the construction
site. Engineers have estimated the cost between $750,000 and $1,100,000.
C. Mahoona Dam Replacement $2,800,000
Recent inspection of the Mahoona Dam by DNR Dam Safety and R&M Engineers confirms
that the dam needs near-term rehabilitation, but more importantly, these findings support dam
replacement as the safest long-term solution. There is also a need to increase the holding
capacity of the dam to meet future demands for water and power. An engineering cost
estimate for design and construction of the new dam is $2,800,000.
Excerpt from City of Ouzinkie Capital Improvement List FY 2011 - 2016
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 20 of 99 7/1/2011
In order to prevent any potential failure of the dam, the City is proceeding with plans for an
interim repair of the existing structure. R&M Consultants has been engaged to conduct a
Periodic Safety Inspection to determine requirements for the repair, and to obtain a certificate to
repair the dam from DSCU. This effort will also result in an updated cost estimate for the repair
project, which will be used to support federal and State funding requests, including emergency
mitigation funds. The goal is to effect the needed repairs during the 2012 construction season.
(It should be noted that the Mahoona Lake access road is in serious disrepair. Construction of
the dam repairs will likely require some level of upgrade to the road. Any extensive upgrade to
the road will be considered as part of the dam replacement project described herein.)
Although it is prudent to plan for and construct needed repairs, the long-term solution is to design
and construct a new dam, and to address the condition of the access road, penstock, saddle
dike and powerhouse configuration. Therefore, the City is seeking funds for the feasibility and
conceptual design phase of the dam replacement project.
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
The City is proposing to design and construct a dam from durable materials such as roller
compacted concrete or concrete faced rock fill, for example, located a short distance
downstream of the existing wooden dam. The new dam will be 4 to 8 feet higher than the
existing dam to increase reservoir storage capacity and alleviate recurring water shortages. The
existing dam will be used for water control during construction of the new dam, and
decommissioned when the new dam is in place.
The proposed feasibility study will evaluate the technical, economic, financial and operational
viability of replacing the existing dam. Other system components have been identified as integral
to the feasibility evaluation. These include:
1. Improvement of the Mahoona Dam access road to support construction of the
replacement dam and for long-term maintenance and operation of the hydroelectric
system.
2. Replacement of the existing 6000 foot, 18-inch PVC penstock to support improved power
generation and water distribution.
3. Replacement or reconstruction of the saddle dike to support the proposed enlargement of
the Mahoona Lake reservoir.
The feasibility study will help determine the level of repair or replacement required for all system
components, and will establish the parameters for the final design and permitting phase of the
project (Phase III). Resulting cost estimates will also be used to formulate funding requests for
various components.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 21 of 99 7/1/2011
Determining design criteria and costs will require a complete site investigation, geotechnical data
collection, and analysis. These activities will likely include:
Geotechnical Requirements
Soils analysis
Seismic hazard analysis
Geologic mapping
Seismic refraction
Test drilling
Support Requirements
Surveying
Photography
Mapping
Table 3. Geotechnical and Support Requirements
The resulting data collection and analysis will be used to support independent engineering
evaluations for the access road, penstock and saddle dike. When these are completed, a
conceptual design and cost estimate for recommended system improvements will be finalized
and presented the City and AEA.
Costs associated with completing the above-described tasks are presented in Section 4.4.1,
below.
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 City of Ouzinkie owns the land needed to perform site review and field investigation. It also
owns the water rights to Mahoona Lake and the tributary stream of Katmai Creek. Ouzinkie
Native Corporation has agreed to provide access to any Corporation lands needed for the
feasibility and conceptual design project.
Land issues associated with any proposed dam construction and potential expansion of the
Mahoona Lake impoundment will be addressed during the feasibility study portion of the project.
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
Activities related to the field investigation and feasibility study are not likely to require permits or
agency authorizations. In the absence of the Coastal Management review process, the project
team will coordinate with State and federal agencies to ensure this is the case.
An integral part of the feasibility study and conceptual design effort will be to obtain a Certificate
to Construct, Modify, Remove or Abandon a Dam from DSCU. This effort will ensure compliance
with State guidelines and regulations and will allow DSCU to participate in the planning process
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 22 of 99 7/1/2011
for replacement of the dam.
The feasibility study will also evaluate permit requirements for the dam replacement and any
activities associated with repair or replacement of the access road, penstock and saddle dike.
Findings will be incorporated in the final feasibility and conceptual design report.
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 known or anticipated environmental impacts of the proposed feasibility study and
conceptual design. There are anadromous streams in the area and special care will be given to
avoiding any potential impacts. These efforts will be coordinated with the Alaska Department of
Fish and Game.
The feasibility study will evaluate potential environmental impacts related to the dam
replacement, enlargement of the Mahoona Lake reservoir, and any activities associated with the
repair or replacement of the access road, penstock and saddle dike. Findings will be
incorporated in the final feasibility and conceptual design report.
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
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 23 of 99 7/1/2011
The anticipated project costs for Mahoona Hydroelectric Dam Replace Feasibility and
Conceptual Design are as follows:
Phase I Reconnaissance (Funded by City and Other Sources)
Task Funds required
Periodic Safety Inspection $15,000
Dam Safety Permitting 10,000
Access Road Repairs 35,000
Interim Dam Repairs 350,000
Total $410,000
Table 4. Phase I Reconnaissance
Phase II Feasibility and Conceptual Design (AEA Funding with City Match)
Task Funds required
Project Startup $7,500
System Review 14,000
Site Survey, System Evaluation 63,000
Geotechnical Services, Survey, Mapping 213,000
Engineering Evaluation of Access Road and
Penstock
32,000
Environmental Review 20,000
Permitting 25,000
Conceptual Design and Cost Estimating 125,000
Final Report and Recommendations 28,000
Total $527,500
Table 5. Phase II Feasibility and Conceptual Design
The City is requesting Renewable Energy Grant funds for Phase II in the amount of $467,500.
With City matching funds of $60,000*, the total cost for Phase II is $527,500.
* The City is currently improving the lower portion of the Mahoona Dam access road, up to the
powerhouse, with in-house labor and material from a City-owned gravel pit. In support of field
activities related to Phase I and Phase II of the dam replacement project, the City will continue
this basic-level improvement for access to the project site. Consequently, approximately 60
percent of the City’s in-kind match is for labor, equipment and materials needed to ensure
adequate access for the Phase II field investigation and geotechnical work.
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.)
Operating and maintenance costs for the proposed new dam and related system infrastructure
will be determined under the Analysis and Recommendations Milestone of Phase II
requirements.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 24 of 99 7/1/2011
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 grant-funded project
At least 75 -80% of all power produced from the proposed new Mahoona Dam will be sold to
customers of the Ouzinkie electric utility (Focus Energy Corporation). Excess power will be
devoted to several new commercial and industrial projects. Further analysis of excess power
utilization will be completed as part of the feasibility study.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form, which provides summary information that will be considered
in evaluating the project.
Download the form, complete it, and submit it as an attachment. Document any conditions or
sources your numbers are based on here.
The Project Cost Worksheet is provided in Section 10-B.
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 (gal and $) 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 initial benefit of the proposed dam replacement is public safety. The City plans to construct
interim repairs to the existing dam to avoid any potential failure of the structure. However,
replacement of the dam will serve to protect life and property below Mahoona Lake. There is
also substantial benefit to protecting important fish and wildlife habitat in the Mahoona Lake
drainage.
Assuming a 95% post-construction availability rate for the Mahoona Lake hydroelectric system,
and a 20-year project life, direct savings from the project could include:
600,000 gallons of diesel fuel
$3,000,000 of avoided fuel cost (based on a 20-year average $5.00 - $5.50 per gallon)
Potential savings of $2,500,000 State of Alaska PCE subsidy (based on a 20-year
average $0.25 - $0.30/kWh PCE rate)
These and other benefits of the project contribute to the future sustainability of the Ouzinkie
community, tribal organizations, the business community, and current and future residents.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 25 of 99 7/1/2011
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
Operations and maintenance of the Mahoona Dam hydroelectric system will remain the
responsibility of the Ouzinkie electric utility, under its current business structure. Any operational
or financial issues arising from the dam replacement project and/or associated infrastructure
improvements will be addressed during the feasibility study and included in the draft operational
and business plan.
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.
As indicated in the grant application, the City is proceeding with Phase I of the project by
initiating a Periodic Safety Inspection (PSI) of the Mahoona Dam and working with DSCU to
develop a plan of action for interim repairs. Based on the approved PSI, the City will obtain a
certificate to repair the dam and seek funding through legislative appropriation, grants, and/or
loans to construct the repairs in summer – fall of 2012.
The City expects that resources mobilized for the dam repair project will also be able to support
the field investigation and system evaluation tasks of the feasibility study (see Section 3.4,
above). This will ensure a timely and cost-effective startup of the Feasibility and Conceptual
Design project described in this application.
The Alaska Native Health Consortium and U.S. Public Health Service have previously funded
construction and improvements related to the City water supply. These included increasing the
height of the dam and construction of the penstock. These projects were successfully completed
with the participation of the City. ANTCH is currently completing construction of a $1.3 million
Ouzinkie water treatment facility in cooperation with the City.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 26 of 99 7/1/2011
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.
There is community-wide support for the proposed dam replacement project, and no known
opposition. In view of the public safety priority of the project and the importance of maintaining
an adequate supply of water and power, community-based organizations plan to work with the
City throughout the repair and replacement phases of the project, including sharing of available
local resources.
Letters of support have been received from:
The Native Village of Ouzinkie
Ouzinkie Native Corporation
Spruce Island Development Corporation
Copies are provided in Section 10-D.
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.
Include an estimate of budget costs by milestones using the form – GrantBudget5.doc
Provide a narrative summary regarding funding sources and your financial commitment to the
project.
As shown in Section 4.4.1, Project Development Cost, the City of Ouzinkie is committed to the
Mahoona Dam replacement project in the interest of public safety and improved utilization of a
valuable renewable energy resource. The project has multiple components including dam
replacement, road improvements, possible replacement of the penstock and other important
tasks. The City’s 2011 – 2016 Capital Improvement List estimates the overall cost of the
combined project elements at $5,882,000.
The City has begun direct funding of Phase I Reconnaissance and is seeking funds for interim
repair of the dam. The funds requested in this grant application are critical for moving beyond
the repair stage to a much needed replacement of the dam.
Phase II of the project is estimated to cost $527,500, including a City match of $60,000. A
detailed breakdown of milestones and tasks is provided in the attached Grant Budget Form.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 27 of 99 7/1/2011
SECTION 10 – 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.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 28 of 99 7/1/2011
RMA Consulting Group
RMA Consulting Group, an Alaska company, is founded on many years of consulting and
management for a variety of corporations and municipalities and goes beyond traditional project
management. We provide analysis, coordination, negotiation, facilitation, planning, team
formation, strategy development, and execution. We partner with clients, assess the needs or
objectives, and set about to develop and implement a project or program.
Our most recent work is in successfully securing funding and coordinating renewable energy
work in southwest Alaska, including hydroelectric power and geothermal exploration. The
projects are part of a program of infrastructure, transportation, and energy improvements.
Our experience illustrates a variety of initiatives that we have successfully managed. Often the
work involves a comprehensive assessment and approach: forming and leading teams,
managing issues and risks, and helping executive management to examine trade-offs due to
limited time, money, or resources.
Representative Experience
Management
Renewable Energy
Program
Managed a new program to develop hydroelectric and geothermal energy
sources. Secured over $5,000,000 in Alaska state grants to explore
geothermal energy and repair existing hydroelectric infrastructure.
Capital Projects Program
Management
Provided management and negotiation support for major capital projects
involving grant requests, procurement policy, bids and contracts, capital
programming, and land entitlements.
Ground Water Monitoring
and Enforcement
Provided analysis, process assessment, and systems design for database and
web-based applications. Provided capacity building, consensus development,
and on-site project management for system implementation.
Public Works
Organization
Management
Served as director for a multi-division public works department including street
maintenance, design/construction, facilities management, survey and platting,
communications, and building safety.
Maintenance Operations
Improvement
Conducted reorganization and performance improvement of all city
maintenance support operations, including equipment and record-keeping
automation.
Packaging and Product
Launch
Led operations team and third party suppliers to launch food products in
remote markets. Work involved changes to food assembly, packaging, case -
size, handling procedures, and coordinating pre- and post-launch activities.
Organizational
Development
Provided organizational assessment, process improvement and strategic
planning support. Involved team building, executive coaching, and
program/project development.
Governance and
Regulatory Reform
Conducted regulatory analysis, organizational assessment, and accountability
review. Included stakeholder interviews and consensus building to improve
and streamline processes.
Enterprise-wide Reporting
and Analysis
Served as director of enterprise reporting systems, managing issues with
legacy data platforms and successfully funding and managing development of
a new business information system.
Planning
Water Master Plan Developed new water system and automation plans involving team
coordination and stakeholder facilitation. Created thematic maps, conducted
data analysis, performed system design, and provided on-site project
management.
Municipal Waste Developed City’s first waste reduction and recycling plan to comply with new
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 29 of 99 7/1/2011
Reduction Plan state laws. Involved analyzing current operations, identifying new programs,
and obtaining approval at city, county and state levels.
Capital Improvement
Program and Plan
Developed City’s first comprehensive CIP, documenting community
infrastructure priorities, timing, and funding requirements for the next several
years.
Analysis
Community Impact
Analysis
Evaluated projects and made recommendations to address potential impacts
to the community. Recommendations included preparing for housing needs,
securing job opportunities, preparing for changes to municipal operations, and
others.
Cost Analysis and
Modeling
Facilitated multiple meetings and created financial models to assign overhead
operating costs among joint owners of Alaska’s North Slope oil fields.
Cost-to-Serve Analysis of
Retail Channels
Designed financial models to estimate the cost incurred to sell to and support
major retail customers. Enabled the client to better negotiate product pricing
and shipping and to improve how it invested its marketing funds.
Systems
Mobile Radio
Communications System
Determined requirements from participating federal, state, and local agencies
for a consolidated public safety mobile radio system. Provided training support
for national incident command systems and prepared documentation and
manuals for system implementation.
Database Security
System
Led team to define requirements, evaluate product vendors, and implement a
new database security system to meet certain federal health information
regulations. Negotiated contract, managed implementation, and hosted
project briefings.
Borrower Information
System
Managed cross-functional team to define, design, and deploy new business
information system. The new application was rolled-out to loan officers to
improve how and whether to approve commercial loans.
Forecast and Planning
Systems
Facilitated process improvement, requirements definition, and system
implementation for many financial forecasting and reporting systems.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 52 of 99 7/1/2011
B. Cost Worksheet per application form Section 4.4.4.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 53 of 99 7/1/2011
Please note that some fields might not be applicable for all technologies or all project
phases. The level of information detail varies according to phase requirements.
1. Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. Year-round flow with 95% availability
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other 1 hydro generator, 3 diesel
ii. Rated capacity of generators/boilers/other Hydro: 125 kW, Diesel 45 kW , 100 kW, 190 kW
iii. Generator/boilers/other type
iv. Age of generators/boilers/other Hydrogenation, 24 years, all diesel generators, 5
years
v. Efficiency of generators/boilers/other Combined hydro and diesel = 100%
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor FY 2010 - $77,317
ii. Annual O&M cost for non-labor FY 2010 - $188,941
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] 675,430
ii. Fuel usage
Diesel [gal] 24,536
Other
iii. Peak Load 110 kW
iv. Average Load 85 kW
v. Minimum Load 65 kW
vi. Efficiency 13 kWh/gallon
vii. Future trends Increasing demand over next 24 – 36 months related harbor, airport and
commercial/industrial expansion
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
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.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 54 of 99 7/1/2011
3. 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]
125 kW
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kW h] 750,000 kWh
ii. Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood [cords, green tons, dry tons]
iv. Other
4. Project Cost
a) Total capital cost of new system
b) Development cost
c) Annual O&M cost of new system
d) Annual fuel cost
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 30,000 gallons #2 diesel
ii. Heat
iii. Transportation
b) Current price of displaced fuel $4.52/gallon
c) Other economic benefits Minimum 40% reduction in total cost of power
d) Alaska public benefits $2.5 million estimated reduction of State PCE
subsidies over 20-year project life
6. Power Purchase/Sales Price
a) Price for power purchase/sale $0.2482/kWh, residential; $0.483/kWh
commercial/industrial
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 55 of 99 7/1/2011
Payback (years) Estimated $5 million over 20 year project life (avoided cost of diesel
and PCE subsidy savings)
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 56 of 99 7/1/2011
C. Grant Budget Form per application form Section 9.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 57 of 99 7/1/2011
Milestone or Task Anticipated
Completion Date
RE- Fund
Grant Funds
Grantee Matching
Funds
Source of Matching
Funds:
Cash/In-kind/Federal
Grants/Other State
Grants/Other
TOTALS
(List milestones based on phase and type of project.
See Attached Milestone list. ) $ $ $
1. Project Startup 5 - 6 July 2012 $7,500 $ $7,500
2. System Review 10 – 15 July 2012 $12,000 $2,000 City of Ouzinkie, In-kind $14,000
3. Site Investigation, System Evaluation 10 July – 30
August 2012 $55,000 $8,000 City of Ouzinkie, In-kind $63,000
4. Geotechnical Services, Survey, Mapping 1 August – 15
December 2012 $175,000 $38,000 City of Ouzinkie, In-kind $213,000
5. Engineering Evaluation of Access Road
and Penstock
15 August – 1
October 2012 $20,000 $12,000 City of Ouzinkie, In-kind $32,000
6. Environmental Review 1 August – 1
October 2012 $20,000 $ $20,000
7. Permitting 1 August – 1
October 2012 $25,000 $ $25,000
8. Conceptual Design and Cost Estimating
15 October 2012
– 10 January
2013
$125,000 $ $125,000
9. Final Report and Recommendations 10 January – 10
February 2013 $28,000 $28,000
$
TOTALS $467,500 $60,000 $527,500
Budget Categories:
Direct Labor & Benefits $ $8,500 City of Ouzinkie, In-kind $8,500
Travel & Per Diem $ $1,200 City of Ouzinkie, In-kind $1,200
Equipment $ $9,800 City of Ouzinkie, In-kind $9,800
Materials & Supplies $ $35,000 City of Ouzinkie, In-kind $35,000
Contractual Services $467,500 $ $467,500
Construction Services $ $ $
Other: Housing and Utilities $ $5,500 City of Ouzinkie, In-kind $5,500
TOTALS $467,500 $60,000 $527,500
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 58 of 99 7/1/2011
D. Letters demonstrating local support per application form Section 8.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 59 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 60 of 99 7/1/2011
E. An electronic version of the entire application on CD per RFA Section 1.7.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 61 of 99 7/1/2011
A CD is included with this packet as prescribed in RFA Section 1.7
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 62 of 99 7/1/2011
F. Authorized Signers Form.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 63 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 64 of 99 7/1/2011
G. 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.
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 65 of 99 7/1/2011
-
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 66 of 99 7/1/2011
-
H. CERTIFICATION
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 67 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 68 of 99 7/1/2011
I. Mahoona Lake Dam Periodic Site Inspection June 20, 2007
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 69 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 70 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 71 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 72 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 73 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 74 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 75 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 76 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 77 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 78 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 79 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 80 of 99 7/1/2011
J. Field Inspection Report – Mahoona Dam June 10, 2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 81 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 82 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 83 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 84 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 85 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 86 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 87 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 88 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 89 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 90 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 91 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 92 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 93 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 94 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 95 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 96 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 97 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 98 of 99 7/1/2011
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Application Page 99 of 99 7/1/2011