HomeMy WebLinkAboutUAF Chiller Grant AppALASKA
Renewable Energy Fund
Grant Application
SECTION 1 — APPLICANT INFORMATION
Name
University of Alaska Fairbanks
Type of Entity
State-controlled institution of higher education (a governmental entity)
Mailing Address
Physical Address
UAF Office of Grants and Contracts Administration
3295 College Road, 109 Administrative Services Center
P.O. Box 757880, Fairbanks, AK 99775-7880
Fairbanks, AK 99775-7880
Telephone
Fax
Email
(907) 474-7301
(907) 474-5506
f arcon(@uaf.edu
1.1 APPLICANT POINT OF CONTACT
Name
Title
Mike Ruckhaus
Senior Project Manager, Division of Design and Construction
Mailing Address
P.O. Box 758160, Fairbanks, AK 99775-8160
Telephone
Fax
Email
(907) 474-5797
(907) 474-7554
mruckhaus fs.uaf.edu
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, or
A local government, or
X
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 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
application.)
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SECTION 2 — PROJECT SUMMARY
Provide a brief 1-2 pace overview of vour oroiect.
2.1 PROJECT TYPE
Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/
Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as
well as the kind of renewable enew you intend to use. Refer to Section 1.5 of RFA.
Constriction.
2.2 PROJECT DESCRIPTION
Provide a one paragraph description of your project. At a minimum include the project location,
communities to be served, and who will be involved in the grant project.
This project will provide a central chilled water system for the West Ridge area of the
University of Alaska Fairbanks campus. This central chilled water system will meet the cooling
needs of the buildings on the West Ridge and the needs of the computer center. This project will
replace the electrically -driven chillers that are in each building with a central absorption chilling
facility. This cooling system will utilize steam heat that is curTently being wasted as its energy
source.
2.3 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. Include a project cost summary that includes an estimated total cost
through construction.
This project will be funded by a $10 million dollar grant from the State of Alaska. The
University of Alaska will bond the remaining $5 million dollars.
2.4 PROJECT BENEFIT
Briefly discuss the financial benefits that will result from this project, including an estimate of economic
benefits(such as reduced fuel costs) and a description of other benefits to the Alaskan public.
• The campus electric costs will be reduced by $400,000.
• The campus building maintenance expenditures will be reduced by $100,000.
• Cost of future buildings on West Ridge will be lower because less mechanical equipment will
need to be installed. The buildings can also be smaller as less space is needed to house the
mechanical equipment. This savings is estimated to be at least $200,000 per building
• Over a thousand tons of CO2/year will not be generated.
• Thousands of pounds of ozone depleting refrigerants will be removed from campus.
2.5 PROJECT COST AND BENEFIT SUMARY
Include a summary of your project's total costs and benefits below.
2.5.1 Total Project Cost
(Including estimates through construction.)
$
15,000,000
2.5.2 Grant Funds Requested in this application.
$
10,000,000
2.5.3 Other Funds to be provided (Project match)
$
5,000,000
2.5.4 Total Grant Costs (sum of 2.5♦2 and 2.5.3) - -
$
15,000,000
2.5.5 Estimated Benefit (Savings)
$
500,000 /year
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2.5.6 Public Benefit (If you can calculate the benefit in terms of $ 500,000/year
dollars, please provide that number here and explain how
you calculated that number in your application.)
All of the saving from this project will be a public benefit. Some of the money saved will
be less money that the University will ask the State to fund in operating fund request. Also the
future capital requests to the State will be lower. The rest of the money saved will be savings for
the students, faculty and staff.
The other public benefit is an environmental one. This project will cause a reduction in
electric power generation. The estimated reduction in emissions is over 1,100 tons of CO2 per
year. This is in addition to the reduction of other pollutants such as NO, and SO,
This same technology can be used in other parts of the state that have both a heating
and a cooling need.
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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 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 entitv. state that in this section.
Mike Ruckhaus, Sr. Project Manager with UAF Facilities Services, Division of Design and
Construction, will be the project manager. See attached resume.
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.)
Select A/E
2 months
Schematic Design
2 months
Design Development
3 months
Construction Documents
6 months
Bid and Award
2 months
Construction
24 months
Commissioning
3 months
Project Completion 42 months after receipt of grant
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them_
The project milestones are planned on common practice for project management. Total
project cost will be evaluated as design progresses to ensure the project stays within the funded
amount. The project is using proven technology and standard principles of engineering, so there
is no need to periodically assess the technical feasibility of the project.
Milestone 1: Design
The University will contract an A/E consultant to perform all elements of the design
including absorbtion chiller specifications, civil and foundation, architectural, electrical and
mechanical. The design will include the distribution system design and conversion of existing
buildings to the district cooling system.
Milestone 2: Construction
The University will select and contract with a qualified contractor for the construction of the
facility. The construction will include the procurement of major equipment (i.e chillers).
Milestone 3: Commissioning
The University will use a team with mcmbcrs from UAF, the A/E, chiller manufacturer, and
construction contractor to start up the system and adjust the system for optimum efficiency.
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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 University intends to hire an A/E finn to perform design services on this project. The
construction services will be procured by the University in accordance with AS36.30.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The Project Manager will send monthly reports that document the progress of the project to
the Authority. The monthly reports will document the current project costs as well as any
updated cost estimates during design. The monthly reports will also assess the status of project
risks.
3.6 Project Risk
Discuss potential problems and how you would address them.
The project is using proven technology that is available from multiple manufacturers. This
reduces the technical risk of the project to a minimal level.
The primary project risk is the cost estimating and cost growth. Although professional cost
estimators will be part of the A/E team, market conditions can escalate costs above estimated
amounts. This risk will be mitigated by adding an estimating contingency that is appropriate for
the level of design to each estimate.
During construction, the cost risks are from unknown underground conditions, and
errors/omissions in the construction documents. These risks mitigated by having a contingency
of about 9% of the construction costs included in the budget. A geotechnical investigation of the
proposed site will be perfonned during design in order to identify conditions for the contractor.
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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 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 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.
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.
To meet the summer electric loads the University of Alaska Fairbanks has to waste over 180
million pounds of steam. Of that amount, 130 million pounds has the potential to be reused for the
operation of an absorption chiller. An absorption chiller takes the heat from low pressure steam
and generates chilled water that can be used for cooling buildings or equipment.
At the present time, the West Ridge area of campus uses electric -powered chillers to cool the
buildings. This electric power is being purchased (and generated) by the local utility (GVEA).
The amount of power that is used to cool the West Ridge is over 2 million kilowatt hours per
year.
By utilizing the heat that is currently being wasted, the University will save money by
reducing its electric load. The environment is positively affected, as GVEA will not have to
generate as much electric power.
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.
The University of Alaska Fairbanks operates a combined heat and power plant. The plant was
built in 1964 and has been upgraded many times. This plant burns a combination of coal, fuel oil
and natural gas in industrial boilers. The steam from the boilers is sent to steam turbines to meet
the electric needs of campus. The steam from the turbines is either used to heat campus or is
wasted in a condenser. The overall plant efficiency in the winter is 70%. Since there is not as
much need for steam heat in the summer, the efficiency drops to 55%. By providing a use for low
pressure steam, this project will increase the efficiency of the plant in the summer.
The existing power plant can not meet all of the electric need of campus. To meet this
additional electric power demand„ the university purchases power from the local utility. (GVEA)
Our current avoided electric power rate is $0.20 per kilowatt hour. This rate includes demand
charges.
4.2.2 Existing Energy Resources Used
Briefl discuss your understanding of the existing energy resources. Include a brief discussion of
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any impact the project may have on existing energy infrastructure and resources.
This project will add a steam load to an existing combined heat and power plant. This load
will occur during the summer where the current steam load is at its low point. This change will
allow the current infrastructure to be utilized to a better extent. In addition, this will also improve
the overall cycle efficiency of the combined heat and power plant.
This change will also remove a large electric power load from an already undersized electrical
power distribution system.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
This will lower the utility operating expenses of the University of Alaska Fairbanks. This
savings will be passed on to the "customers" of the University. This saving will be reflected in
lower costs charged to grant issuing agencies, the rental tenants of the University space, as well as
the students, faculty, and staff.
The load reduction will have little to no impact of the customers of GVEA.
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
The West Ridge chilling facility will have three 1000-ton absorption chillers installed during
this initial phase of construction. The facility and the distribution system will be sized for
projected campus growth. The projected load is 1.7 million ton-hrs. per year. The total connected
load is estimated to be 2,900 tons. Due to a load diversity, the system will have a capacity factor
of 0.7.
The buildings are currently using chilled water for cooling, so they will not need a large
amount of work to make the conversion to a district chilled water system. The newer utilidor was
designed with a district chilled water system in mind, so the installation of the chilled water
piping will not be difficult. The steam to operate the absorption chillers will be delivered with the
same steam pipes that are currently being used to deliver heat to the building in the winter. Since
the heating load drops before the cooling load increases, there will be no capacity problems by
using the existing steam system.
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.
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There are no land ownership issues. All land to be used by this project is owned by the
University of Alaska.
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
There are no permitting issues that apply to this project.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
• Threatened or Endangered species
• .Habitat issues
• Wetlands and other protected areas
• Archaeological and historical resources
• Land development constraints
• Telecommunications interference
• Aviation considerations
• Visual, aesthetics impacts
• Identify and discuss other potential barriers
There are no environmental issues associated with this project. The facility will be built on previously
disturbed ground.
4.4 Proposed New System Costs (Total Estimated Costs and proposed 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
The estimates for this grant application were developed using historic costs from a similar project
recently completed on the UAF campus with escalation and estimating contingency costs added.
The total project -cost -would be funded by a combination of AEA Grant funds and University bond
financing. The University will provide 33% of the total project cost and the AEA Grant would provide
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67% of the total costs. The total project cost is $15M and $5M will be funded by University bonds and
$10M would be funded from the AEA Grant.
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.
• Total anticipated project cost for this phase
None of the requested grant funding is to be used for operation or maintenance costs. This
project will result in a net reduction of operating and maintenance costs.
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 rant -funded project
At the present time, the University of Alaska Fairbanks is not directly charging for chilled
water used on campus. We do not anticipate direct charging for chilled water after this project is
complete.
4.4.4 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.
4.4.5 Business Plan
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.
The University of Alaska Fairbanks operates its utilities as a recharge center. This means that
all costs incurred by the utilities are accounted for in the rates that are charged. The business
structure that is already in place for the operation of the utilities is sufficient to take on this
additional effort.
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work.
The West Ridge central chilling facility is one of the recommendations of the recently
completed UAF Utility) Development Plan. This $250,000 study evaluated all the utilities on the
Fairbanks campus and developed a plan to meet the campus utility needs for the next 20 years.
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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 avoided cost of ownership)
• 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
• This project will offset over 1,100 tons of COz per year. This has the potential to be sold as a
green tag credit.
• This project will remove over a thousand of pounds of HCFC (R-22) refrigerant from campus
• This project will save the University 2 million kilowatt hours per year.
• This project will save the University $100,000 per year in chiller maintenance.
• Future construction projects on the West Ridge will no longer need to be designed with
individual electric power chillers. This will reduce the costs of construction, as well as reduce
the size of the building, meaning lower initial costs and lower operating and maintenance
costs. Less state money is needed.
SECTION 6 — GRANT BUDGET
Tell us how much your total project costs. Include any investments to date and funding sources,
how much is requested in grant funds, and additional investments you will make as an
applicant.
Include an estimate of budget costs by tasks using the
UAF is strongly committed to energy conservation on their campus. The commitment started
in 1964 when a combined heat and power plant was constructed that increased efficiencies by
30%. UAF is continuing the commitment to increasing our efficiency by investing in this project
using bond finds. UAF invested $250,000 to produce the "UAF Utilities Development Plan"
that identified a path for the future of UAF's energy production. This plan addressed all aspects
of energy production at the Fairbanks campus including the recommendation to construct a
central chilled water facility for the West Ridge area of campus. UAF is committed to the
further investment in energy efficiency in the future in order to be an example to the community
and the State.
The estimates for this grant application were developed using historic costs from a similar
project recently completed on the UAF campus (2005) with escalation and estimating
contingency costs added.
The total project cost would be funded by a combination of AEA Grant funds and University
bond financing. The University will provide 33% of the total project cost and the AEA Grant
would provide 67% of the total costs. The total project cost is $15M and $5M will be funded by
University bonds and $1 OM would be funded from the AEA Grant.
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SECTION 7 — ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Resumes of Applicant's Project Manager, key staff, partners, consultants, and
suppliers per application form Section 3.1 and 3.4
B. Cost Worksheet per application form Section 4.4.4
C. Grant Budget Form per application form Section 6.
D. An electronic version of the entire application per RFA Section 1.6
E. Governing Body Resolution per RFA Section 1.4
Enclose a copy of the resolution or other formal action taken by the applicant's
governing body or management that:
- authorizes this application for project funding at the match amounts indicated in
the application
- authorizes the individual named as point of contact to represent the applicant for
purposes of this application
- states the applicant is in compliance with all federal state, and local, laws
including existing credit and federal tax obligations.
F. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations.
Print Name
Andrew Parkerson-Gray
Signature
y y
Title
Director, UAF Office of Sponsored Programs fvoso a()uaf.edu
Date
November 7, 2008
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Application Cost Worksheet
Please note that some fields might not be applicable for all technologies or all project
phases. 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. 130 Million pounds of low pressure waste steam,
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. Existing Energy Generation
a) Basic configuration (if system is part of the Railbelt' grid, leave this section blank)
i. Number of generators/boilers/other
ii. Rated capacity of generators/boilers/other
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
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
L Annual O&M cost for non -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
Diesel [gal]
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
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.
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iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
a) Installed capacity 3000 tons of refrigeration
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
Ill. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
a) Total capital cost of new system 15,000,000
b) Development cost $0
c) Annual O&M cost of new system Net saving of $100,000
d) Annual fuel cost Reduction of $400,000
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 2 million kw-hrs per year
N. Heat
iii. Transportation
b) Price of displaced fuel $400,000 per year
c) Other economic benefits $100,000 per year
d) Amount of Alaska public benefits $500,000 per year
6. Power Purchase/Sales Price
a) Price for power purchase/sale $0,20 per kw-hr
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ALASKA
EN AUTHORITY Renewable Energy Fund
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7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
Payback
1.04 for the life of the project
30 years
RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 3
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Division of Design and Construction
590 Uniticrsity Avcnuc
P.O. Box 758160
�.. Fairbanks, Alaska 99775-8160
(907) 474-5299. FAX (907) 474-7554
November 7, 2008
Alaska Energy Authority
813 West Northern Lights Blvd.
Anchorage, Alaska 99503
Attention: Butch White
Grant Manager
Dear Mr. White:
The executive management of the University of Alaska formally approves and endorses this grant
application as a government entity. In preparation for this application the University has made its Board
aware of its intent to file this application and will present the Project to its Board for formal approval
concurrent with the Legislature's review process.
The West Ridge Energy Conservation Project will replace the existing electric driven chillers located in
each building with a central steam driven absorption chiller facility. The chilled water will then be
distributed to the individual buildings with pipes located in the existing utilidor system. Waste steam will
be used as the energy source.
The University will reduce their electricity consumption by approximately 2,000,000 kW-hrs per year and
CO, emissions will be reduced by over 1,100 tons per year. This is a significant benefit from both an
economic and environmental perspective.
The University has authorized Mike Ruckhaus, Sr. Project Manager, as the point of contact to represent
the applicant for purposes of this application.
Furthermore, the executive management states that the University is in compliance with all federal, state,
and local laws including existing credit and federal tax obligations.
We look forward to a positive review of this grant request and bringing this project to fruition for the
benefit of all Alaskans.
Sincerely,
Mark Hamilton President
University of Alaska