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HomeMy WebLinkAboutJuneau Dimond Park Aquatic Center App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 18 9/2/2008 Application Forms and Instructions The following forms and instructions are provided for 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/RE_Fund.html The following application forms are required to be submitted for a grant recommendation: Grant Application Form GrantApp.doc Application form in MS W ord 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.doc Summary of Cost information that should be addressed by applicants in preparing their application. Grant Budget Form GrantBudget.xls A detailed grant budget that includes a breakdown of costs by task and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget Form Instructions GrantBudgetInstr.pdf Instructions for completing the above grant budget form. • 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 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. • 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. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 2 of 18 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City & Borough of Juneau Type of Entity: Local Government Mailing Address 155 South Seward Street, Juneau AK 99801 Physical Address 155 South Seward Street, Juneau AK 99801 Telephone (907) 586-5240 Fax (907) 586-5385 Email Rod_Swope@ci.juneau.ak.us 1.1 APPLICANT POINT OF CONTACT Name Rod Swope Title City Manager Mailing Address 155 South Seward Street, Juneau AK 99801 Telephone (907) 586-5240 Fax (907) 586-5385 Email Rod_Swope@ci.juneau.ak.us 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 X A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If 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.) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 3 of 18 9/3/2008 SECTION 2 – PROJECT SUMMARY Provide a brief 1-2 page overview of your project. 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 energy you intend to use. Refer to Section 1.5 of RFA. The City & Borough of Juneau is proposing the design (Phase III) and construction (Phase IV) of a hybrid ground source heat pump system to serve the heating needs at the City & Borough of Juneau’s new Dimond Park Aquatic Center. The Dimond Park Aquatic Center is a new competition, recreation, and educational swimming facility in Juneau with construction to begin in the spring of 2009 and be completed in the fall of 2010. The hybrid system will consist of a ground source heat pump system that will meet 81% of the facility’s heating needs and a supplemental electric heat system to make up the difference during periods when the facility’s heat loads exceed the capacity of the ground source heat pump system. The hybrid system was selected over a stand alone ground source heat pump system sized for 100% of the facility’s heating loads because: 1. The decrease in well field size and removal of a heat pump significantly reduced initial construction cost of the hybrid system. 2. The hybrid system only increased annual energy expenditures 14.6% over a stand alone ground source heat pump system while providing a 118% and 164% decrease in annual energy costs when compared with an electric or oil heat system respectively. 3. The stand alone system also required electric back-up heaters; the hybrid system merely increased their size. 4. The hybrid system has a lower life cycle cost than the stand alone ground source heat pump system. The Renewable Energy Fund Grant request herein is for the additional design and construction costs for the hybrid ground source heat pump system. The grant funding requested is only for the costs associated with the ground source heat pump system portion of the hybrid system; the costs associated with the supplemental electric boiler and water heaters are excluded from this request. 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. The proposed hybrid ground source heat pump system at the new Dimond Park Aquatic Center is to be located in Juneau’s Mendenhall Valley, adjacent the new Thunder Mountain High School and Riverbend Elementary on the Dimond Park site. The facility will primarily serve Juneau residents, but will also serve visitors from nearby southeast Alaska communities and other visitors to Juneau. The City & Borough of Juneau Engineering and Parks and Recreation Departments are directly involved with the design and construction of the facility, as is the Juneau School District. A professional design team led by local architectural firm Jensen Yorba Lott, Inc. is responsible for the project design and construction administration. The City & Borough of Juneau Engineering Department is responsible for design and construction Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 18 9/3/2008 management and progress reports to grant agencies as required. The City & Borough of Juneau Finance Department is responsible for project funding and financial reporting to grant agencies as required. A “Pool Advisory Task Force” consisting of twelve community representatives is also participating in the oversight of the project design. The project’s construction contractor will be selected by competitive bid per the City & Borough of Juneau ordinances and is not known at this time. The use of a hybrid ground source heat pump system in lieu of conventional oil or electric heat systems at the Dimond Park Aquatic Center is supported by the Pool Advisory Task Force, the City & Borough of Juneau Engineering and Parks Departments, the Juneau School District, and the City & Borough of Juneau Assembly and Administration. 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. On October 2, 2007, Juneau voters approved $19.8 million for the construction of a new swimming pool in Dimond Park adjacent to the Thunder Mountain High School. The Department of Education & Early Development approved 60% debt reimbursement of $8,650,853, thus reducing the share of the project costs borne by Juneau residents to $14,609,488. Both of these approvals occurred prior to the energy anal ysis during the project design that led to the decision to use a hybrid ground source heat pump systems rather than conventional oil or electric heat systems. While the hybrid ground source heat pump system will reduce operation costs over the life of the facility, it is estimated to increase initial design and construction costs by $1,950,000. The City & Borough of Juneau submitted a $500,000 grant request to the Rasmuson Foundation to assist in covering the additional cost of the hybrid ground source heat pump system, but the outcome of this request is not known at this time. Design and Construction Administration by Consultant $113,447 Design and Construction Management by CBJ $61,456 Construction Cost* $1,775,097 Total Cost of Ground Source Heat Pump System $1,950,000 * Please see attached HMS construction cost estimate dated 09/24/08 for details 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. When the new Dimond Park Aquatic Center was originally proposed to Juneau voters in October 2007, it was assumed that the pool would use a conventional oil or electric heat system. However, during schematic design a value engineering study explored the potential of a hybrid ground source heat pump system in lieu of a conventional heat system and found that, while the initial construction cost was higher, the h ybrid ground source heat pump system was projected to reduce annual energy expenditures approximately $130,000 to $180,000 when compared to electric and oil systems respectively. The operational savings will enable the City & Borough of Juneau to reduce the entry fee to the Dimond Park Aquatic Center, making it available to more individuals. Also, the decrease in the admission price will increase the ability of the City & Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 18 9/3/2008 Borough of Juneau and other local organizations to provided discounted or free admission to disadvantaged individuals. The site specific nature of the hybrid ground source heat pump s ystem reduces the environmental footprint of the Dimond Park Aquatic Center. When compared to a traditional oil fired heat system, the h ybrid ground source heat pump system eliminates oil combustion exhaust fumes, the hazards associated with transportation and storage of fuel oil, and the pollution and energy expenditure associated with shipping of fuel oil. When compared to a traditional electrical heat system, the h ybrid ground source heat pump system places a lighter burden on the community’s overtaxed electrical infrastructure and capacity, thus reducing the need for new development of the region’s hydro-electric resources. The use of a hybrid ground source heat pump system at such an eagerly awaited public facilit y will increase public awareness of renewable energy alternatives within the community and possibly on a larger scale. The construction and operation of the h ybrid ground source heat pump system will provide experience to local contractors and City & Borough of Juneau maintenance staff that could translate to reduced construction and maintenance costs for future ground source heat pump systems. 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.) $ 1,950,000 2.5.2 Grant Funds Requested in this application. $ 1,450,000 2.5.3 Other Funds to be provided (Project match) $ 500,000 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 1,950,000 2.5.5 Estimated Benefit (Savings over 25 year period)* $ 3,000,000 vs. Oil Boilers $ 1,100,000 vs. Elec Boiler 2.5.6 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.) $ ** *Please see attached Alaska Energy Engineering’s Energy and Life Cycle Cost Analysis Report dated 06/17/08 for details of estimated life cycle benefits **It is difficult to calculate the public benefit of this project in terms of dollars. Please refer to the project benefits noted in paragraph two and three of response to question 2.4. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 18 9/3/2008 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 entity, state that in this section. Nathan Coffee, City & Borough of Juneau Project Manager, is overseeing the design of the project. His resume and references are attached. Catherine Wilkins, City & Borough of Juneau Construction Manager, will oversee the construction of the project. Her resume and references are attached. Helen Davies CPA, City & Borough of Juneau Accountant, is overseeing the project funding and will provide financial reporting to grant agencies. Her resume and references are attached. 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.) Project design is to be completed by December 1, 2008. Project will be advertised for bid as part of the larger Dimond Park Aquatic Center construction project January 8, 2009. Bids will be opened for the project on February 5, 2009. Barring any unforeseen circumstances, Notice to Proceed with construction should be issued by March 12. Construction is expected to begin as soon as the winter weather allows with site work most likely beginning in early April. It is anticipated that the ground source heat pump system well field will be installed in conjunction with the building site work in the summer of 2009. Construction of the Dimond Park Aquatic Center is anticipated to be completed in the fall of 2010. 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. Submit AEA Renewable Energy Fund Grant Application – October 6, 2008 Complete 95% construction documents and specifications – December 1, 2008 Submit 95% construction documents and specifications to EED for review – December 1, 2008 Submit 95% construction documents and specifications to DEC for review – December 1, 2008 Receive feedback from AEA regarding GSHP grant request – December 1, 2008 Submit 95% construction documents and specifications to AEA for review – December 5, 2008 (if necessary) Receive feedback from Rasmuson Foundation regarding GSHP grant request – December 8, 2008 Complete review of 95% construction documents and specifications – December 15, 2008 Complete review of 95% construction cost estimate - December 18, 2008 ***If necessary, based on results of grant request and cost estimate, begin redesign or Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 18 9/3/2008 seek additional funding from different sources – December 19, 2008*** Submit signed construction documents to CBJ Permit Center – January 5, 2009 Advertise for construction bids – January 9, 2009 Open bids and issue Notice of Intent to Award construction contract - February 5, 2009 Issue Notice to Proceed with construction – March 12, 2009 Receive construction permit from CBJ Permit Center – March 12, 2009 Begin construction – April 1, 2009 or thereabouts Substantial Completion of Construction – August 20, 2010 Final Completion of Construction – September 3, 2010 Begin Facility Commissioning – September 3, 2010 Certificate of Occupancy – September 10, 2010 Grand Opening – September 17, 2010 Please note that most of the decisions involving the use of a hybrid ground source heat pump system rather than conventional oil or electric heat systems have already been made. The City & Borough of Juneau is committed to the use of hybrid ground source heat pump system at the new Dimond Park Aquatic Center due to the many benefits previously identified in this application. The only major decision that remains is how to fund construction of the hybrid ground source heat pump system. 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 & Borough of Juneau Engineering Department has contracted with Jensen Yorba Lott, Inc. for the design of the new Dimond Park Aquatic Center. Jensen Yorba Lott’s project design team is led by Wayne Jensen, AIA, and the team is comprised of the following individuals and firms: Civil – R&M Engineering, Inc. – Mark Pusich, P.E. Structural – PND Engineers, Inc. – Chris Gianotti, P.E. Mechanical – Murray & Associates, P.C. – Doug Murray, P.E. Electrical – Haight & Associates, Inc. – Barry Begenyi, P.E. Energy/Commissioning – Alaska Energy Engineering – Jim Rehfeldt, P.E. Pool Consultant – Richard Scott, AIA, NCARB Economics – The Sports Management Group – Lauren Livingston Cost Estimator – HMS, Inc. – Ehsan Mughal The construction contactor and subcontractors will be selected through the competitive bid process per the City & Borough of Juneau’s procurement regulations; therefore, information regarding the construction contractors who will undertake the work is not available at this time. Major equipment purchases are to be included in the construction contract. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 18 9/3/2008 Catherine Wilkins’ office will be on the construction job site. She will monitor and record project progress for the duration of the Dimond Park Aquatic Center’s construction. She will provide one or two page monthly status reports by email to the Authority that identify the project progress, regulatory and compliance issues, possible delays, and pictures of the work. She will work with Helen Davies of the City & Borough of Juneau Finance Department to include an accounting of the monthly and overall project grant income and expenditures in the monthly report. Quarterl y reports will also be furnished that summarize the same project information on a quarterl y basis. Catherine and Helen will also be responsible for providing additional submittal items as defined in the Authority’s project agreement. 3.6 Project Risk Discuss potential problems and how you would address them. Lack of sufficient funding for the construction of the hybrid ground source heat pump system is a potential problem for the project. In addition to needing to garner financial assistance from Rasmuson Foundation and the Alaska Energy Authority, the City & Borough of Juneau needs to have favorable construction bids for the work. Assuming funding is available, the City & Borough of Juneau intends to bid the Dimond Park Aquatic Center in conjunction with Airport Expansion & Renovation project in hopes that increasing the amount of drilling work will attract more than one drilling contractor to bid on the projects. If sufficient funding is not secured through the City & Borough of Juneau’s grant requests, the project team has considered petitioning the CBJ Assembly for a low interest loan for the hybrid ground source heat pump system. Given the estimated long term benefit of the hybrid ground source heat pump system, a good case could be made that it is in the City & Borough of Juneau’s best interest to provide additional funds for the hybrid ground source heat pump system. Another potential problem is the drilling of the well field. Unforeseen subsurface conditions could be encountered that could impact the depth or layout of the wells. While a test well has not been drilled on site, test wells have been drilled at the Thunder Mountain High School site (~one quarter mile away) and at the Juneau Airport (~one and half miles away). Design parameters for the Dimond Park Aquatic Center well field have been based on conservative conclusions drawn from review of the test well data for at the nearby sites to reduce the potential for problems with subsurface well drilling. Relocation of well field or increasing number of wells and reducing their depth are potential mitigation strategies should the well field construction encounter subsurface problems. Another potential problem is generating the anticipated design heat transfer rates from the ground source heat pump system. Again, conservative estimates based on the observed conditions at adjacent test wells were used for design of the ground source heat pump system to reduce the potential for shortfalls in anticipated heat transfer rates. Based on the performance of adjacent test wells, the project engineers anticipate heat generation from the system will exceed design estimates. Ultimately, greater reliance on back-up electric boiler or increasing the size of the well field are potential mitigation strategies should the heat transfer rates generated by the ground source heat pump system prove to be below design expectations. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 18 9/3/2008 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. Due to the Mendenhall Valley’s favorable soil conditions and the high water table, the amount of potential energy that can be extracted utilizing a ground source heat pump system is virtually limitless. However, the high initial capital investment required for a heating loop and well field has limited the use of ground source heat pumps in the Juneau area. As energy costs have risen in recent years, the anticipated payback period for the investment of initial construction capital for a ground source heat pump system has decreased to the point where ground source heat pump systems are economically viable. The primary con of the ground source heat pump system is the high initial capital investment required to construct the system. This factor has limited the use of ground source heat pumps in the Juneau area. Another con of the ground source heat pump system is the higher annual maintenance expenditures required to operate the system when compared with conventional electric heat systems. Unfamiliarity with ground source heat pump systems could pose a bit of a con as compared to traditional heat systems until City & Borough of Juneau maintenance staff become accustom to the maintenance and repair activities associated with the ground source heat pump system. The primary pro of the hybrid ground source heat pump system is the low energy consumption of the heat source. The hybrid ground source heat pump system is projected to reduce annual energy expenditures approximately $130,000 to $180,000 when compared to electric and oil systems, respectively. A reduction in energy consumption is especially important in an aquatic facility that maintains higher ambient temperatures than most other building types. Another pro of the hybrid ground source heat pump system at the Dimond Park Aquatic Center is the public acceptance and recognition that will be brought to sustainable alternative energy technologies that could lead to broader use of similar heat systems in the region. Such a trend could reduce the import of fuel oil for heating and the exhaust associated with its combustion. A reduction in electrical consumption would allow AEL&P to reduce the amount of diesel generated power provided to the area and maintain the adequacy of the existing hydroelectric infrastructure. While the attached Energy Analysis specifically compares the hybrid ground source heat pump Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 18 9/3/2008 system with conventional oil and electric heat system, some consideration was also given to other renewable energy technologies, in particular biomass energy. Due to the project’s site location (in a park, between two schools, adjacent residential areas) and the winter air quality issues present in the Mendenhall Valley area, the construction of an onsite biomass incinerator was not practical. 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 hybrid ground source heat pump system is a new system designed specifically to serve the heating needs of the new Dimond Park Aquatic Center. The facility does not exist at this time and the heat system will not serve any facilities other than the Dimond Park Aquatic Center. The ground source heat pump system will be comprised of a well field, a closed loop piping system, and heat pump equipment to extract heat from the circulating fluid. The well field will be comprised of (96) 250’ deep wells spaced 10 feet apart. The well field will be divided into to two independent segments; each of which will be connected to the building mechanical room by a 2.5” inch diameter piping loop. Heat will be extracted from the fluid in the piping loop by a single water-to-water heat pump to heat the pool water and portions of the building; five water-to- air heat pumps to heat the remaining portions of the building; and two water-to-water heat pumps for the building’s domestic hot water system. The heat pump equipment will be provided with electrical back-ups to supplement the system during high demand events, such as refilling of the pools or cold weather, and when the ground source heat pump system is shut down for maintenance. The combined efficiency of the heat pumps is 270% so for each purchased BTU, 2.7 BTUs will be delivered to the building. This compares to 95% efficiency for electric and 77% efficiency for oil systems. 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. The proposed hybrid ground source heat pump system will use more electricity than an oil fired heat system, but far less electricity than an all-electric system. Alaska Electric Light & Power (AEL&P) is a privately owned, publicly regulated utility that provides power to Juneau. Currently, AEL&P generates hydroelectric power at the Snettisham Dam and provides the power to Juneau via suspended and underwater transmission lines. Diesel generators provide additional power to Juneau in periods of outage or high demand. AEL&P is currently constructing a second hydroelectric facility at Lake Dorothy that is anticipated to come online in the fall of 2009 and to increase the hydroelectric power capacity of the Juneau area by 20%. Currently, AEL&P utilizes diesel generators during the winter to supplement hydroelectric supply. This will most likely increase in the future as the high cost of heating oil drives residents to use electrical heat in lieu of oil. AEL&P’s hydroelectric capacity is currently overtaxed by Juneau’s demand, so the addition of Lake Dorothy’s power will help to align the hydroelectric infrastructure capacity with that of local demand. Since the Dimond Park Aquatic Center is not scheduled to open until fall of 2010 (a year after the completion of the Lake Dorothy project), its electrical power consumption should not adversely impact AEL&P’s electrical power distribution throughout the community. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 18 9/3/2008 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Alaska Electric Light & Power (AEL&P) is a privately owned, publicly regulated utility that provides power to Juneau and some surrounding communities. AEL&P also sells electrical power to cruise ships and Greens Creek Mine. Due to the addition of the Lake Dorothy hydroelectric supply, the use of hybrid ground source heat pumps at the Dimond Park Aquatic Center is projected to have little or no impact on AEL&P customer rates. The use of hybrid ground source heat pumps at the new pool will have a positive impact on pool customers and the City & Borough of Juneau by keeping operating costs low. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 18 9/3/2008 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 This project proposes the design and construction of a hybrid ground source heat pump system to serve the heating needs at the new Dimond Park Aquatic Center. The proposed system is a hybrid of ground source heat pumps and electricity with electric boilers supplementing the ground source heat pump system in times of high demand. It is anticipated that the ground source heat pumps in the hybrid s ystem will produce 81% of the facilit y’s heating load. Thus, the electric water heaters and boilers will only be utilized when the facility’s heating load exceeds the maximum capacity of the ground source heat pump system, which is projected to occur onl y during colder winter temperatures. The h ybrid system allows the capacity of the well field to be reduced b y 44%, thus significantly reducing the initial construction cost of the system while negligibly impacting the operational cost savings of the system. The silty, sandy, gravell y soil; the absence of bed rock; and the high water table on the site, make the site naturally suited to the use of ground source heat pump well field. 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 Dimond Park Aquatic Center site is located within the Dimond Community Complex in the Mendenhall Valley which is owned by the City & Borough of Juneau. The master plan for the complex designates this site for a mix of recreational and educational facilities to meet the needs of the community. Although the overall Dimond Community Complex is approximately 70 acres, the actual acreage to be used for the pool facility and well field will be approximately 2 acres. There is strong public support for the construction of the new pool facility and for the use of a renewable energy source to meet its heating needs, especially after the electrical crisis suffered by Juneau residents with the avalanche damage to AEL&P’s Snettisham transmission lines last spring. There are not any known land ownership or access issues that would jeopardize the construction of the Dimond Park Aquatic Center or a hybrid ground source heat pump system to meet its heating needs. 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 13 of 18 9/3/2008 • Anticipated permitting timeline • Identify and discussion of potential barriers Construction of the Dimond Park Aquatic Center and associated hybrid ground source heat pump system will require the following permits: • Conditional Use Permit from City & Borough of Juneau Community Development Department - acquired • Building Permit from City & Borough of Juneau Community Development Department • Swimming Pool Permit from Alaska Department of Environmental Conservation 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 The site for the Dimond Community Complex has experienced a fair amount of development with soccer and baseball fields, an elementary school, a high school, and a field house constructed on the site. The Dimond Park Aquatic Center is another piece of the long range plan for the site, which also includes a recreational facility and a library, so land development constraints are not anticipated during the Conditional Use permitting for the new pool. Environmental or land use conflicts with threatened or endangered species, habitat issues, archaeological and historical resources should not arise due to the developed nature of the site. Wetlands delineation was performed on the site and no wetlands were present. The scale of the proposed Dimond Park Aquatic Center is in keeping with surrounding forested area and the nearby high school so aviation conflicts and telecommunication interference are not anticipated. Since the majority of the proposed hybrid ground source heat pump system at the Dimond Park Aquatic Center is concealed below grade or within the pool building, no visual or aesthetic impacts are anticipated. The proposed hybrid ground source heat pump system is a closed loop system so environmental impacts are minimal. 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 14 of 18 9/3/2008 • Requested grant funding • Applicant matching funds – loans, capital contributions, in-kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system Total Anticipated Project Cost = $1,950,000 Total Project Cost Phase III Design & Permitting = $86,604 Total Project Cost Phase IV Construction, Commissioning, Operating = $1,863,396 Requested Grant Funding = $1,450,000 Applicant Matching Funds = $500,000 Other Funding Sources Rasmuson Foundation and/or City & Borough of Juneau Projected Capital Cost of Proposed Renewable Energy System = $1,775,097 Projected Development Cost of Proposed Renewable Energy System = $174,903 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 • Requested grant funding The projected operating and maintenance costs for the proposed hybrid ground source heat pump system at the Dimond Park Aquatic Center are $113,220; $110,000 for electricity and $3,220 for routine maintenance. The hybrid ground source heat pump system is projected to decrease annual energy costs 118% and 164% when compared with electric and oil heat systems, respectively. Grant funding for operations and maintenance of the hybrid ground source heat pump system at the Dimond Park Aquatic Center is not requested. Operations and maintenance of the system will be funded from facility revenue and the City & Borough of Juneau Parks and Recreation Department. 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 This project does not provide the opportunity to purchase or sell electrical power. 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. See attached cost worksheet. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 15 of 18 9/3/2008 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 City & Borough of Juneau has received economic guidance regarding the operation of the new Dimond Park Aquatic Center from The Sports Management Group, Inc. The Sports Management Group, Inc. provided an in-depth analysis of potential operating strategies to maximize cost recovery at the new swimming facility. The use of a hybrid ground source heat pump system to meet the heating needs of the facility dovetails with The Sports Management Group’s analysis by substantially reducing the energy costs associated with operation of the facility. A copy of The Sports Management Group’s operational analysis for the Dimond Park Aquatic Center is attached to this application. 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 operations of the completed Dimond Park Aquatic Center will be handled by the City & Borough of Juneau Parks and Recreation Department. The maintenance of the facility will be handled City & Borough of Juneau Building Maintenance Division. It is anticipated that the facility will be managed in a similar manner to that suggested by the Sports Management Group’s operational analysis. Key decisions regarding marketing, staffing, and admission pricing will be critical to determining the success of the facility’s cost recovery efforts. Monitoring of the facility’s user revenue from season pass sales and daily admission is recommended to provide insight into Juneau’s market characteristics that may not be fully represented in the Sports Management Group’s economic analysis. The City & Borough of Juneau Parks and Recreation Department should adjust pricing as required to create the appropriate balance between revenue generation and public use. Monitoring of the facility staffing is recommended to identify times of overstaffing. Streamlining the facility’s staffing based on observed use patterns is recommended. Commissioning of the hybrid ground source heat pump system and other building mechanical, electrical, and control systems has been included in the professional services agreement for the project. The commissioning of all integrated building systems is essential for the building systems to interact as designed and function in their most efficient manner. Commissioning is not just recommended, it is mandatory. Monitoring of the facility’s energy consumption and costs is also recommended to determine the effectiveness of the hybrid ground source system and as a means to gage the potential of ground source heat pumps at other City & Borough of Juneau facilities. Also, monitoring and reporting of ground source heat pump system operations to AEA as required by the grant agreement will be provided. Further energy conservation measures should be considered if the facility is exceeding its projected energy consumption. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 16 of 18 9/3/2008 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 The proposed hybrid ground source heat pump system is projected to save $2,800,000 and $4,700,000 in energy costs when compared with conventional electric and oil heat systems over a 25 year period. It is projected that a conventional oil heat system will require 63,200 gallons of fuel oil to meet the Dimond Park Aquatic Center’s annual heating load. Over a 25 year period the proposed hybrid ground source heat pump system will eliminate the consumption of 1,580,000 gallons of fuel oil. The proposed hybrid ground source heat pump system is projected to reduce annual energy expenditures approximately $130,000 to $180,000 when compared to conventional electric and oil heat systems, respectively. While the project does not generate revenue through the generation of electrical power, the ability of the ground source heat pump system to meet the heating needs of the Dimond Park Aquatic Center utilizing an inexpensive renewable energy resource will save the City & Borough of Juneau and local residents plenty. The City & Borough of Juneau is not aware of additional annual incentives or revenue streams that might be available due to the use of the proposed ground source heat pump system, but with the increasing focus on energy independence such additional benefits may soon become available. As manager of the Dimond Park Aquatic Center, the City & Borough of Juneau Parks and Recreation Department will continue to monitor these opportunities in an effort to enhance the facility’s cost recovery efforts. This project provides an opportunity for the City & Borough of Juneau staff and public to learn a great deal about the economic sustainability and viability of ground source heat pumps. This project could help change the way the City & Borough of Juneau and the private sector address the heating needs of future facilities. The renewable nature of this plentiful energy resource is especially attractive to Juneau residents who recently experienced, albeit temporarily, the economic hardship due to the loss of inexpensive hydroelectric power. Just as those hardships brought greater awareness among all ages as to the importance of energy conservation, the use of ground source heat pumps at the Dimond Park Aquatic Center could bring greater enlightenment regarding alternative renewable energy sources. The lessons learned from the construction and operation of the proposed hybrid ground source heat pump system will invariably increase local familiarity with the technology and should reduce construction costs of future projects. In addition to the great educational benefit to be derived from the proposed project, the environmental benefit of eliminating the consumption of 1,580,000 gallons of fuel oil over 25 years of facility operation is staggering. From the elimination of environmental hazards Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 17 of 18 9/3/2008 associated with oil extraction, to elimination of the environmental hazards associated with transporting crude oil, transporting refined product and then storing it on site, to the elimination of the air pollution associated with its combustion, it makes the project seem worthwhile even if the ground source heat pump system wasn’t providing an economic benefit. 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 form - GrantBudget.xls On October 2, 2007, Juneau voters approved $19.8 million for the construction of a new swimming pool in Dimond Park adjacent to the Thunder Mountain High School. The Department of Education & Early Development approved 60% debt reimbursement of $8,650,853, thus reducing the share of the project costs borne by Juneau residents to $14,609,488. Both of these approvals occurred prior to the energy anal ysis during the project design that led to the decision to use a hybrid ground source heat pump systems rather than conventional oil or electric heat systems. While the hybrid ground source heat pump system will reduce operation costs over the life of the facility, it is estimated to increase initial design and construction costs by $1,950,000. The City & Borough of Juneau submitted a $500,000 grant request to the Rasmuson Foundation to assist in covering the additional cost of the hybrid ground source heat pump system, but the outcome of this request is not known at this time. It is estimated that $40,000 has been invested in consultant analysis of heating options, soil conditions, and City & Borough of Juneau staff time while researching the potential of a ground source heat pump system for the Dimond Park Aquatic Center. The Cit y & Borough of Juneau considers this work Phase I Reconnaissance and Phase II Feasibility Analysis and has not included these costs in the grant request, but would appreciate an y consideration due these preliminary expenditures in the review of this grant request. Design and Construction Administration by Consultant $113,447 Design and Construction Management by CBJ $61,456 Construction Cost* $1,775,097 Total Cost of Hybrid Ground Source Heat Pump System $1,950,000 Total Amount of AEA Renewable Energy Grant Request $1,450,000 Amount to be provided from other funding sources (either Rasmuson Foundation or City & Borough of Juneau) $ 500,000 * Please see attached HMS construction cost estimate dated 09/24/08 for details Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 18 of 18 9/3/2008 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 Rod Swope Signature Title City Manager Date Please note that the following attachments are provided in support of the grant application: 1. Ground Source Heat Pump Construction Cost Estimate by HMS, Inc. 2. Energy and Life Cycle Cost Analysis by Alaska Energy Engineering LLC 3. Operational Analysis by The Sports Management Group, Inc. 4. Design Development Drawings by Jensen Yorba Lott, Inc.