The URL can be used to link to this page

Home My WebLink AboutPedro Bay Fuel Storage & Electrical Generation Facilities July 8, 2003CONCEPT DESIGN REPORT AND CONSTRUCTION COST ESTIMATE FOR CONSOLIDATION AND RENOVATION OF FUEL STORAGE AND ELECTRICAL GENERATION FACILITIES IN THE COMMUNITY OF: PEDRO BAY PREPARED FOR:© STATE OF ALASKA ALASKA ENERGY AUTHORITY/ RURAL ENERGY GROUP PREPARED BY: Alaska Energy and Engineering,Inc.Mailing Address -P.O.Box 111405Anchorage,AK 99511-1405 (907)349-0100349-8001 FAX A§ act. Pgs: as asS,ie2OeghaeSe see ma i.) - "ADef Lame fe Ae ae, we Are 3 sy Dit S Ts q Ls ge MS. A Ree, ke Ere ae, i Pent: et: Sm}¥ =ax. Fx, +Ses de: Te:Ayee 2 , Lerha The€: &; rane Bae tt Ray, aN if Say SE .Lh Gans=e Beg.sc ge wr, '&Fes, A, ht 28 of Bite & tog ae pri EeWaaabs Fe Ang SE,oe +Cy. er i, BAS 3. we <i Ute a ee Pherat £te a rH£: 8,44 -aeveelgaaewetJuly 8,2003 reeeasresiB CONCEPT DESIGN REPORT AND CONSTRUCTION COST ESTIMATE FOR CONSOLIDATION AND RENOVATION OF FUEL STORAGE AND ELECTRICAL GENERATION FACILITIES IN THE COMMUNITY OF: PEDRO BAY PREPARED FOR: STATE OF ALASKA ALASKA ENERGY AUTHORITY/ RURAL ENERGY GROUP PREPARED BY: Alaska Energy and Engineering,Inc.Mailing Address -P.O.Box 111405Anchorage,AK 99511-1405 (907)349-0100349-8001 FAX Brian C.Gray : ME-8210 July 8,2003 Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Design Report Alaska Energy and Engineering EXECUTIVE SUMMARY This report has been prepared by Alaska Energy and Engineering,Inc.(AE&E)fortheAlaskaEnergyAuthority/Rural Energy Group (AEA/REG).The purpose of thisstudyistoprovideaconceptdesignandconstructioncostestimateforconsolidationandupgradeofalldieselfuelandgasolinestorageaswellasforconsolidationandupgradeofvillagepowergenerationanddistributioninthecommunityofPedroBay.The participants in the project include the Pedro Bay Village Council (PBVC)and theLakeandPeninsulaSchoolDistrict(LPSD). On Thursday October 10,2002,David Lockard of the Alaska Energy Authority /Rural Energy Group (AEA/REG)and John Dickerson of Alaska Energy andEngineering(AE&E)performed a site investigation for the proposed new bulk fuelupgradeprojectinPedroBay.A meeting was held at 5:00 PM with PBVCAdministratorJohnBaalkeandLPSDMaintenanceSuperintendentVinceWebstertodiscusstheproject.Village Administrator John Baalke was the only localrepresentativepresentatthemeeting. LPSD and PBVC each currently operate their own power generation and bulk fuelstoragefacilities.The PBVC tank farm is in poor condition and in need ofreplacement.The PBVC tank farm site has.adequate area for consolidation of allrequiredvillagefuelstorageaswellasadequateset-backs for fuel dispensing andbulktransferfacilities.new code compliant LPSD tank farm,constructed insummer2000,is located adjacent to the school mechanical building.The schoolmechanicalbuildingwasconstructedin2001andcontainselectricalgeneration,heating,waste heat recovery,and water utility equipment for the schoo!complex.LPSD has agreed to lease this building,including the recently installed tanks andgenerationequipment,to PBVC on the condition that all village power generation beconsolidatedattheschoolsiteandallwasteheatbemadeavailabletotheschool.This proposal is contingent on LPSD and PBVC drafting an agreement on powerplantoperationsandbulkpowerrates.PBVC has agreed in principle to thisproposal.This consolidation has the potential to reduce annual diesel fuelconsumptionbyapproximately11,000 gallons within the community by maximizinggeneratingefficienciesandbycapturingallavailablewasteheat. The existing LPSD tank farm is fully code-compliant and will remain in service in itspresentconfiguration.None of the existing PBVC tanks are suitable for reuse.Fivenewtankswillberequiredtomeettheprojectedfuelstorageanddispensingrequirementsforthecommunity,four at the PBVC bulk fuel site and one at thePBVCCommunityCenter.The consolidated tank farm will have a gross storage{tank shell)capacity of 56,600 gallons of diesel fuel and 8,000 gallons of gasoline,or a combined gross storage capacity of 64,600 gallons.Fuel will be brought intoPedroBaybybargeandbyairplanebutallfuelwillbedeliveredtothetanksbytruck. The village power generation consolidation and upgrade project will include theconstructionofa16'x20'addition onto the school mechanical building,the relocationofoneexistingvillagegeneratorandoneschoolgenerator,the purchase andinstallationofonenewgenerator,the purchase and installation of new switchgear,and miscellaneous mechanical and electrical work. The proposed project schedule cails for design and permitting to be completed bythewinterof2003/2004,construction from June through August 2004,and thefacilityfullyfunctionalbySeptember2004. The total project cost including all design,supervision,inspection,permitting,anda15%contingency is estimated to be $1,564,700.The estimated cost of the bulk fuelupgradeportionis$831,000 which equates to a unit cost of $12.86 per gallon basedonagrossstoragecapacityof64,600 gallons.This is within the Denali Commissionbenchmarkcostrangeof$14 to $12 per gallon for 50,000 gallon to 100,000 galloncapacitytankfarms.The estimated cost of the electrical upgrade portion is$733,700 which equates to a unit cost of $2,127 per kW based on a total installedcapacityof345kW.This is well under the Denali Commission benchmark cost rangeof$3,500 to $2,900 per installed KW for 201kW to 400kW capacity power plants. Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Design Report Alaska Energy and Engineering INDEX Executive SUMIMALY..........ccccccccsseeteccecceessceneeeeeseesseeeeceeseaeeeeesesaaeeerssanesesegeeseereeaaes Page i INOX .oeseeecccccesseccessnseneeeessneeeneeessenacececesensanaaaeatensnaaaseeeeesaeeseesaadeceessaeeesenenaaeeseasees Page ii Acronyms and Abbreviations ..........ececcencececeesssseeseeesceeceeeeaeeeeessaeesssnaeeetseesees Page iii 1.0 INtrOGUCTION 0.0...eee eetceeeeesetteneeeeeeesseseneeeeeeteenaeees beceetesencecesensaeeteseeeeeeeeestanees Page 1 1.1 Program OVErVieW..........::cccccesesssececeeseessneeecesnaeeeeessenaeeserseeeeseeaaeeeeetenaaes Page1 1.2 Community DeSCTIPtION ..0............cceesseeeeseteceeessseeeeeeseeaeeeesse edeaaeeeesessnnneees Page 2 1.3 Site INVEStIGAtiON 00.0...ee ee eee eeceeeeeeeeeenaceeeseesaaeeneesaeeeeseeeeeseeesaaaeerenees Page 2 1.4 Code AnalySis 0.0.0...cccecssseccceeeeesesssseeeeeesceneeeessaaeeeseeeeanesescaseresnseaeneeeene Page 3 2.0 Existing Fuel Storage Facilities -Function and Capacity 0.00...eeeeeeeseeees Page 4 2.1 Existing Equipment Suitable for REUSC ............ee ceeceeccesneeeeeetneeceeessaaes Page 4 2.2 Demolition of Existing Tanks .0..........cceeesecessssseeeeesseeeeesesseeeens Veeeeeneeeeeees Page 5 3.0 Current Fuel CONSUMPTION...sees eecceeeeeeeneeeeeeeaeeeeeeeneaeeeeeeaeesesessaaaeeeses Page 5 3.1 Planned Infrastructure Improvement ...........:c:csccccseeeeecesseeesereesssseeeessaes Page 5 3.2 Alternative Energy/Efficiency Improvements............::::scccccssssscsscsseeeees Page 6 3.3 Tank Capacity REquireMent ...............cccsssssseeceeeecesseseseaeeeeeessssssaneueeeees Page 6 4.0 Site SeleCtion uo...ee ccssceceetesssseeeececeeeenaeeeessnseeserensanaeeceesneesenssaneneeeseees Page 7 4.1 Village Site oe eee cecceeeeeeessaceeeeeeseseeneeeeassaeeeetesscsneeesessaaeeetssaasaneesesees Page 7 4.2 SCHOO!Site oo...eee ecescseececesssseaneeeecesssnceecessecececsseseceeeessseueeessssaueeeeees Page 8 4.3 Village Office Site...ce ecsesenneeeeessaeeeetecceneeeerseneeecesseeteessssaneeeess Page 9 4.4 Site Control ooo...eee eeeeeaeeeesesaaneeeeeessanenseseneaeeeeessageeesseteeteeessneeesenses Page 9 5.0 Proposed Facility D@SCTIPtiON ................cccceeccecsssessesessssessssssssensecsseeceeesenseeenes Page 9 5.1 Bulk Fuel Storage Consolidation and Upgrade ..............c:cccccsssssssseseeceees Page 9 _5.1.1 Secondary ContainMent ............ccccssssseccsesseeccetseseeceesssneecesenseenenes Page 10 5.1.2 Tanks...eeesceeeessssceeeseesessaceeereeecnsneecessnsaeeeeeesneeeetessaneetesseneeseeeeses Page 10 5.1.3 Piping/Valves/PUMPS/ACCESSOTIES ...........ccccccssssesssseeeeteessssssneneeeens Page 11 5.1.4 S@CUIty......cccsccsssssesssscesecssessecseessesessesesssesseesseseesessessecseeesseeasseresess Page 11 5.2 Electrical Generation Consolidation and Upgrade ...............ccssseeeenees Page 11 5.2.1 Generation Site and Bullding................c:eccccccesecsessesscteceeeesssssseaenes Page 12 5.2.2 Generation EQuipMment............cccessecceeesesseceetesseaceeesesseeesesseneneeenees Page 12 5.2.3 Electrical Distribution Improvements ............ccccccccececcecceeeeeeeeeeeeeess Page 13 5.3 Proposed Operating SC@nario............cscccccssssscceeeseecceeeesseeeeessenseeeessesees Page 14 6.0 Permitting and Spill RESPONSE.............ee ceeeeeesececeeeereeeeseeeneeeeneeseesseenseaeneeeeees Page 14 6.1 Environmental ASSESSMENL..........ccsceceeccececcceeeeeceeeseneeeeeeeeseeeeeenenseeesens Page 14 6.2 Fire COG .......ccccccccsecsecceceeceeeceeccccescaccaaeaceneeseceseseecaneceeceseseneeeseeeeteceeeneas Page 15 6.3 Spill RESPONSE ........cee eesecseeeceeeeeeeecceeeeneeeeeececeeeeeeeeseneeseeseceeseseeeeseseteeess Page 15 7.0 Construction Plan............cccccssssceccesescnecceceeseneeeecessaceeetessaaeeseeeeeeneeeneneeeeeeees Page 15 7.1 Local JOD SKINS ........cece ccccccececeeeeceeceesssseenaeeeeseesesessenaeaaeeeeeeesaneaeeneeeeeees Page 16 7.2 Local EQuipment ..............cceesceeeeeeseseneeeeeseeseeeeseesseeeeesenaeesesseuaeseeensneeees Page 16 7.3 Material SOUPCES ..........ccceeeesssceceseeseeeeeeeseesaaseneeesensesecssssntesseueessessseuseess Page 17 8.0 SCHECUIC.........:.cccccccccsssssceeeeeceeeeeesseseeseseneesereeesssaasaeeeeeseusesennnaseeeeeessaesneeaees Page 17 9.0 Cost Estimate...cccecccccccesseeesssensesssssceeeeceseesseseeeeecereeereetesseaesseseseeeoese Page 19 Preliminary Design DrawingS..............::cssssecsccsssesssssseseesesssaeessseeeseseeeeeseeeeeees Appendix A Construction Cost Estimate ............:csssscsceeeeseesneeseeesssseeaecessacasenesseesseneeateenees Appendix B Site Control Document ........cccceeeeeee vaeaesavassssesacsescstecsessescsceussencseseeeecaeseeees Appendix C Meeting Summary Letters 2.0.0...eescsssssesessseesresesesssneeecsseeeessseesssnseeseneesenes Appendix D Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Design Report Alaska Energy and Engineering ACRONYMS AND ABBREVIATIONS ADCED Alaska Department of Community and Economic Development ADEC Alaska Department of Environmental Conservation AEA/REG _Alaska Energy Authority/Rural Energy Group AIDEA Alaska Industrial Development and Export Authority API American Petroleum Institute ANTHC Alaska Native Tribal Health Consortium CDR Conceptual Design Report COE U.S.Army Corps of Engineers DOT Alaska Department of Transportation and Public Facilities F degrees Fahrenheit EPA U.S.Environmental Protection Agency HUD Housing and Urban Development IFC International Fire Code LPSD Lake and Peninsula School District NEC National Electric Code NFPA National Fire Prevention Association NFS non-frost susceptible PBVC Pedro Bay Village Council SHPO State Housing Preservation office SPCC Spill Prevention Control and Countermeasures USCG United States Coast Guard USS United States Survey VSW Village Safe Water WTP Water Treatment Plant Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Design Report Alaska Energy and Engineering 1.0 INTRODUCTION This report has been prepared by Alaska Energy and Engineering,Inc.(AE&E)for the Alaska Energy Authority /Rural Energy Group (AEA/REG).The purposeofthisstudyistoprovideaconceptdesignandconstructioncostestimateforconsolidationandupgradeofallpublicdieselfuelandgasolinestorageinthecommunityofPedroBay.For the purpose of this study,the term "diesel fuel"refers to all fuel oil products used for space heating,electrical generation,andheavyequipmentoperation.The participants in the project include: e The Pedro Bay Village Council (BPVC) e The Lake and Peninsula School District (LPSD) Currently the PBVC and the LPSD operate separate electrical generationsystems,each with its own fuel storage system.This results in poor energyefficiencyandtheneedforredundantsystems.The two facilities are locatedapproximately800'apart.A comprehensive solution to the fuel storage needs ofthecommunitymustalsoaddresstheelectricalgenerationneeds.Consolidationeffuelstorageandelectricalgenerationfortheentirecommunityisaddressedinection5. 1.1.Program Overview The Alaska Energy Authority (AEA),Rural Energy Group is pursuing grant fundstoupgraderuralbulkfueltankfarms.Following is a brief outline of the program: e Most of the funds are federal and provided through the Denali Commission.Other federal funding may be available from HUD (ICDBG)and theEnvironmentalProtectionAgency(EPA).Additional funds may be availablefromtheStateofAlaska,through the Department of EnvironmentalConservationandtheDepartmentofEducation. e In order to receive grant funds,each community must demonstrate that theproposedfacilitywillbesustainablebyacceptingabusinessplan.Thebusinessplanshalldescribewhowillownthefacility,and how it will beoperated,maintained and replaced. e New tank farms are funded,designed,and constructed in three phases:Phase 1,Conceptual Design;Phase 2,Design Completion;and Phase 3,Construction. e During Phase 1,Conceptual Design,staff from AEA will visit a community,discuss the program,and work with residents and the local government toselectasiteforthenewtankfarm. e At the completion of Phase 1 Conceptual Design,the community will be requested to review and approve the location of the collocated tank farm,thenumberandvolumeoffueltanks,and a draft business plan. e During Phase 2,Design Completion,the design for the new tank farm will becompleted.An environmental assessment will be prepared and site controldocumented.A business plan will be prepared for signing. e Each community will be requested to provide "in kind”contributions byprovidingthelandforthenewtankfarmandfreeuseoflocalheavyequipment.The grant funds pay for equipment fuel,maintenance,andrepairsofequipmentduringconstruction. Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Design Report Alaska Energy and Endgineering e Project may include local hire and construction trade training programs,subject to Denali Commission funding. e If construction funding is awarded then the business plan will be sent forsignatureandconstructionprocurementwillstart. e Ineligible Projects:Funding is not available through AEA for buildings,propane facilities,fuel tank trucks or trailers,fuel to fill the tank farm, operation &maintenance costs,or residential tank upgrades.Loans for fueltanktrucksandtrailersmaybeavailablethroughUSDA. e Training Available:AEA has several training programs available forcommunities. 1.2 Community Description Pedro Bay is located on the east end of Illiamna Lake at the head of Pedro Bay,176 air miles southwest of Anchorage on the Alaska Peninsula.It lies atapproximately59.78722°North Latitude and -154.10611°West Longitude.(Sec.33,T004S,RO28W,Seward Meridian.)The area encompasses 17.3 sq.miles oflandand1.6 sq.miles of water.Pedro Bay lies in a transitional climatic zonewithstrongmaritimeinfluences.Average summer temperatures range from 42 to62;winter temperatures range from 6 to 30.Annual rainfall is 26 inches,with 64 inches of snowfall.The population was estimated at 50 residents in 2000.The only local government is the Pedro Bay Village Council (PBVC).Pedro Bay islocatedwithinthelliamnaRecordingDistrict,the Lake and Peninsula Borough,the Lake and Peninsula School District (LPSD),and the Bristol Bay RegionalNativeCorporation. 1.3 Site Investigation On Thursday October 10,2002,David Lockard of the Alaska Energy Authority/Rural Energy Group (AEA/REG)and John Dickerson of Alaska Energy andEngineering(AE&E)performed a site investigation for the proposed new bulkfuelupgradeprojectinPedroBay.At 5:00 PM we met with PBVC Administrator John Baalke and LPSD Maintenance Superintendent Vince Webster to discusstheproject.Village Administrator John Baalke was the only local representativepresentatthemeeting. Prior to the field investigation,available information was obtained and analyzed,including a prior Bulk Fuel Assessment prepared for the AEA/REG,aerialphotographs,community profile,survey plats,PCE fuel use data,Corps of Engineers wetlands and flood information,and other relevant data.Additionalinformationandinputwasobtainedfromthefollowingindividuals: e Keith Jensen,President,PBVC,850-2225,850-2221 fax e John Baalke,Administrator,PBVC,850-2225,850-2221 fax e Dennis Niedermeyer,Business Manager,LPSD,246-4280 ph,246-4473 fax e Vince Webster,Maintenance Super.,LPSD,246-4280 ph,246-4473 fax e Mat Sweetsir,Yukon Fuels,777-55767 ph,777-5550 fax e Shane Carter,Yukon Fuels,777-55767 ph,777-5550 fax e Karen Everts,Everts'Air Fuel,478-0802 ph Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Design Report Alaska Energy and Engineering 1.4 Code Analysis Prior work performed by the State of Alaska Division of Energy (DOE)included acodeevaluationofexistingfacilitiesandpreparationofadatabasesummarizing results.The existing facilities were reviewed and information in the database verified.The following is a summary of existing facility deficiencies observed: e Improper Secondary Containment (Diking)-Many of the tanks are not withinaproperliquidtightsecondarycontainmentsystemofadequatecapacityasrequiredbytheFireCodeandEPAregulationsandsomeofthetankshave no containment. e Improper Tank Foundations -Several of the tanks are installed on improperfoundations,in violation of the Fire Code. e No Emergency Vents -None of the PBVC tanks have emergency vents,inviolationoftheFireCode. e No Security Fence -Some of the tanks are currently accessible to thegeneralpublicwithnosecurityfencing.This presents a hazard to thecommunityaswellasincreasingthechanceofaspillorfireduetovandalismandtheft. e Improper Piping and Valves-Existing piping systems consist of steel pipingwithacombinationofweldedandthreadedjoints.The threaded joints areparticularlypronetoleaking.Some valves are made of bronze,in violation of the Fire Code. e Wiring Not in Compliance With National Electrical Code-The wiring for thedispensersdoesnotmeetcodeandpresentsapotentialexplosionitirehazardforemployeesandcustomers. The combination of deficiencies poses a significant threat to public safety andtheenvironment.A major project is required to construct a new code and regulation compliant tank farm to meet the long-term needs of Pedro Bay. The concept design for the new facility has been prepared to meet current code and regulatory requirements which include: e The 2000 Edition of the International Fire Code,including State of Alaska Amendments e The 2002 Edition of the National Electrical Code e 40 CFR,Part 112.1-12,U.S.Environmental Protection Agency Spill Prevention Requirements e 33 CFR,Part 154.30 &154.1030,U.S.Coast Guard Spill Prevention Requirements The design also incorporates appropriate industry standards such as NationalFireProtectionAssociation(NFPA)and American Petroleum Institute (API)aswellasprovenmethodsandmaterialsthathavebeenusedsuccessfullyonotherruralbulkfuelfacilitiesinsimilarlocationsandclimates. Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Design Report Alaska Energy and Engineering 2.0 EXISTING FUEL STORAGE FACILITIES -FUNCTION AND CAPACITY The existing fuel storage facilities are located at two separate sites -oneapproximately800'south of the community center and one approximately 500'west of the community center.Locations of existing facilities are shown onattacheddrawingM1.Tank farm numbers below correspond to the numbersassignedintheDOEdatabase.[Each individual facility was evaluated todeterminespecificneedsanddeficiencies.Tanks were visually examined todeterminesuitabilityforre-use.The following paragraphs summarize findings foreachtankfarm: e LPSD -School (#1).The LPSD tank farm is located on the school site.It was constructed in 2001.It is fully code compliant and consists of two 10,000gallongrossshellcapacityhorizontalskidmounteddoublewalltanksinalinedtimberdike.The tanks are truck-filled from airplane or barge deliveries.The fuel is used to provide space heat and power generation for the schoolfacility.LPSD Business Manager Dennis Niedermeyer has stated that theschooldistrictwouldsupportupgradingtheschoolpowerplantforconsolidationofVillagepowergenerationandbulkfuelstorage. e PBVC -Community Center/Clinic (#2).The PBVC has two each 1,000gallonsinglewalltanksattheCommunityCenter/Clinic site.There is nosecondarycontainmentorsecurityfencing.Fuel is used for on-site spaceheatingonly. e PBVC -Retail Sales (#3).The PBVC owned retail sales facility consists of apairofdoublewall1,000 gallon capacity diesel fuel tanks and three eachsinglewall500galloncapacitygasolinetanks.The facility is located justnorthoftheVillagemaintenanceshop.Fuel is dispensed by 110V portable,tank mounted,metering pumps using a rubber hose and nozzle.None ofthesetanksaresuitableforreuseinanyfutureupgradeprojects.There is nosecondarycontainmentorsecurityfencing.There are inadequate offsetsfromtanksanddispenserstobuildingsandpropertylines.The tanks aretruck-filled from barge or airplane deliveries.The fuel is used for retail sales of gasoline and diesel fuel as well as for Village heavy equipment and facilityheating. e PBVC -Power Plant (#4).The PBVC owned power plant tank farm consists of four each self-diked 6,000 gallon capacity diesel fuel storage tanks whicharelocatedbetweentheVillagemaintenanceshopandthepowerplant.The tanks are not equipped with overfill prevention devices.An existing buried 2” fiberglass barge delivery pipeline has failed and has been abandoned.Thetanksarecurrentlytruckfilledfromairplaneorbargedeliveries.The fuel is used for Village power generation only. 2.1 Existing Equipment Suitable for Reuse The entire existing LPSD tank farm will be able to be reused,including the dike,fencing,tanks,valves,appurtenances,and distribution pipeline to the schoolmechanicalbuilding.One of the existing self-diked 6,000 gallon PBVC powerplanttankswillberetainedforuseasoilspillcontingencystorage.The rest ofthePBVCtanksandassociatedpipingsystemsareinmarginalconditionand would not be cost effective to renovate. July 8,2003 Alaska Energy and Engineering Pedro Bay Bulk Fuel Consolidation &Upgrade Concept Design Report 2.2.Demolition of Existing Tanks The scope of this project will also include removal from service of all PBVC existing tanks.All abandoned tanks will be drained of product,the piping will beremoved,and the tank connections will be plugged or blind flanged.Finaldispositionoftheabandonedtankswillbeperformedinaccordancewithcurrent AEA standards and procedures. 3.0 CURRENT FUEL CONSUMPTION Fuel use records were obtained from the facility owners and fuel carriers for1997through2001.The following table summarizes average and peakconsumptionandexistingstoragecapacity.All capacities are in gallons.Netcapacityiscalculatedas90%of the tank gross (shell)capacity. CURRENT CONSUMPTION VERSUS EXISTING CAPACITY Owner/Product Average Peak Existing ExistingAnnualAnnualNetGross Use Use Capacity Capacity LPSD (1)13,500 13,500 18,000 20,000 PBVC Elec.Gen.(2)22,000 23,000 21,600 24,000 PBVC Diesel Use & Sales (3)19,000 22,000 1,800 2,000 PBVC Gasoline Sales (3)5,750 6,000 1,350 1,500 Existing Total 64,500 42,750 47,500 (1)New facility -no previous fuel use history. (2)The year 2001 not included in electric generation analysis because new LPSD school was under construction and operated for part of the year onVillagepower.The increase use for Village electric generation was offsetbyadecreaseuseforschoolelectricgeneration. The years 2000 and 2001 not included in fuel use and sales analysisbecauseofmuchhighergasolineanddieselconsumptionduetomajor construction projects both years. (3) 3.1.Planned Infrastructure Improvements It is important to evaluate the impact of recent installations and planned near-term infrastructure improvement projects on existing utility systems.Schooladditions,water and sewer expansions,new homes,as well as other communityimprovementsallcanadverselyimpacttheadequacyofexistingutilities.Planned infrastructure for future growth includes up to 4 new houses and a newsolidwastefacilitywithincinerator.Following is the estimated impact of these projects: Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Design Report . Alaska Energy and Engineering e Heating for New Homes -3,000 Gallon Increase in PBVC Diesel Sales. e Power for New Homes -1,000 Gallon Increase in PBVC Generation Use. e Solid Waste Facility/Incinerator-1,000 Gallon Increase in PBVC Diesel Use. e New school and housing could attract new residents resulting in an increase in gasoline consumption -Allow 1,000 Gallon Increase in PBVC Sales. 3.2 Alternative Energy/Efficiency Improvements Some wind and hydro data has been collected and studies are underway to determine the feasibility of alternative energy projects for Pedro Bay.In the Draft Rural Energy Plan,Pedro Bay is listed as an attractive candidate for wind power despite being only a Class 4 wind regime.However,this is due mainly toinefficienciesintheoperationofthecurrentsystem.As discussed in more detail below,consolidation of power generation with residual heat capture will greatlyimproveefficiencyandmitigatetheneedforothersourcesofenergy. An investigation into possible efficiency improvements in generation equipmentandheatrecoverysystemstoreducedieselconsumptionwasconducted.TheVillageandschoolcurrentlygeneratetheirownelectricalpowerandstoretheir own bulk fuel at separate facilities.Both plants are currently operating at lowefficiencywithlightlyloadedgeneratorsandredundantstationservicelosses. Because the existing Village generation facility is old and in need of significantrepairwhiletheschoolhasanewbuildingwithaheatrecoverysystem,the most logical place to consolidate the power generation is at the school site.The LPSD has indicated a willingness to purchase power in bulk (wholesale rate)from thecommunityifgenerationisconsolidatedattheirfacilityandtheycanutilize recovered waste heat.The specific terms and conditions of the power sales agreement and use of the school building would need to be worked out duringdevelopmentofthedesignandbusinessplan.This consolidation has the potential to provide the following benefits: e Reduce annual diesel fuel consumption by approximately 11,000 gallons bymaximizinggeneratingefficienciesandbycapturingallavailablewasteheat. e Increase local electric utility net revenue by nearly $18,000/year providing thepotentialforbetteroperation/maintenance and possibly reduced rates. e Decrease bulk fuel upgrade costs by reducing total fuel storage volumerequiredinthecommunityandfullyutilizingtheexistingcode-compliant school!tank farm. e Provide a new generation facility at a reduced cost by utilizing the new LPSD power plant building and infrastructure. 3.3.Tank Capacity Requirements The tank farm must be designed to meet the combined needs of all users withsufficientcapacitytoaccommodatefuturegrowth.It is assumed thatconsolidationoffuelstoragewillnecessarilybeaccompaniedbytheconsolidationofthetwoelectricalpowerplants,with the associated reduction infuelconsumption.Since the community has a history of receiving a largepercentageoffuelbyairdeliverythefacilityhasbeensizedtoprovideforone Pedro Bay Bulk Fuel Consolidation &Upgrade Concept Design Report July 8,2003 Alaska Energy and Engineering year of storage to allow barge deliveries.Periods of unusually high consumptioncanbeaccommodatedbysupplementingbargedeliverywithairdelivery. The following table compares the combined annual use of each product to the proposed net useable tank capacity for the new facility: ESTIMATED CONSUMPTION VERSUS PROPOSED CAPACITY Owner/Product Current Estimated Proposed /|ProposedPeakFuturePeak|Net Gross Annual Use |Annual Use |Capacity Capacity Diesel (Combined)58,500 47,750}50,400 (1)56,600(1) Gasoline 6,000 7,000 7,200(2)8,000(2) Proposed Total 54,750 58,140 64,600 (1)Includes 18,000 gallons net (20,000 gallons gross)at the existing LPSD tankfarmand32,400 gallons net (36,000 gross)new this project. (2)Increased seasonal demands for gasoline or diesel due to occasional large projects or other extraordinary conditions can be met by additional airplane deliveries. 4.0 SITE SELECTION Consolidation of all fuel onto a single site was not deemed practical due toseveralfactors.The existing code-compliant LPSD tank farm will be reused andwillprovidestorageforapproximately80%of the annual diesel fuel consumptionofthenewconsolidatedcommunitypowerplantlocatedattheschoolsite.Adding storage capacity to this facility in order to consolidate all fuel storage ontothissitewouldrequireenlargingtheexistinggravelpad,which would negativelyimpactdrainageofthepropertyabovetheexistingsite.Locating the PBVC dispensing and bulk transfer facilities at the school site would also bringunwantedtrafficandhazardsontotheschoolgrounds.Therefore,to meet the fuel storage and handling needs of the community the new "facility”will belocatedattwosites:(1)A bulk fuel storage,bulk transfer,and dispensing site which will be referred to as the "Village Site',and (2)The existing LPSD bulk diesel fuel storage site which will be referred to as the "School Site”.The selected sites have been discussed with project participants and were identifiedinaletterissuedonOctober22,2002.All participants have indicated acceptance of the proposed sites.The sites are identified on attached drawing M1. Both sites are well above the level of Lake Iliamna and there is no known flooding hazard at either site.Based on existing construction both sites appeartobesuitableforconventionalgravelpadconstruction.A limited geotechnicalinvestigationshouldbeperformedpriortodevelopmentofthefinaldesign. 4.1 Village Site Community officials requested the new Village tank farm be located in the vicinityoftheVillageshopandpowerplantwherefueliscurrentlystoredanddispensed. 7 Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Design Report Alaska Energy and Engineering The existing village shop,retail dispensing tanks,village power plant and tankfarm,and equipment storage area are located within a triangular tract of landwithinANCSA14(c)Survey,Tract 7 bound on the northeast and northwest byrecordedroadrights-of-ways and on the south by U.S.Survey No.7962. There are two lease sites within this triangular area:Equipment Storage andShopFacility(Lease 34-0355)and Bulk Fuel Storage and Electrical Generation(Lease 34-0354).These un-surveyed lease sites were issued in the mid-1980'spriortodevelopmentoftheadjacentroadrights-of-ways.Some of the community improvements are located outside of the lease site boundaries,and the shop was constructed within the Bulk Fuel and Electrical Generation lease site,rather than the Shop Facility lease site.Additionally,the Shop Facility leasesiteencroachesintotheroadright-of-way to the northeast. An existing gravel access road runs along the northwest edge of the two leasesites.Originally,this road provided access to residential properties along thelakeshoreline.With the development of the recorded road rights-of-ways andimprovementstotheairportroad,dedicated access to residential properties hasbeenprovidedandtheexistinggravelaccessroadisnowusedprimarilyforaccesstotheVillagefacilitieslocatedonthesite.A gravel pad for villageequipmentstoragehasbeenconstructedtothewestofthegravelaccessroadadjacenttothetwoleasesites. In order to meet Fire Code setback/separation requirements to property lines,correct facility encroachments,and to fully utilize the available land,the existingshopandpowerplantleaseswillbereplacedbyacommunityfacilitiesleasethatincorporatestheentiretriangularareaoflandandprovidesadequatespacefortheVillageTankFarm.This site will need to be surveyed to establish propertyboundariesasshownondrawingM1,a plat prepared and a new lease executed. The existing gravel pad to the west of the shop will be extended to provide space for and access to the proposed bulk fuel storage,bulk transfer,and gasolinedispensingfacility.The area to be filled slopes gently to the west and hasvegetativecoverconsistingofgrassandsmallbrushwithsomesprucetreeson the perimeter.All surface vegetation and organic materials will be removed prior to placing gravel fill on the site.Test pits will be dug in this area prior to the final design to determine the depth of the organic layer and the type of substrate.The new pad and earthen berm containment dikes will be constructed of localpit-run gravel placed in 8”maximum lifts and compacted to 90%minimum density. 4.2.School Site The existing School tank farm and power plant building are located on Tract A ofBigHillSubdivision.LPSD has indicated it is willing to make the School tankfarmandpowerplantavailableforthePBVCtooperatethenewconsolidatedcommunitypowerplant.The specific terms and conditions for the use of theschoolsitebythePBVCforcommunitypowergenerationwillbenegotiatedduringdevelopmentofthedesignandbusinessplan. Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Design Report Alaska Eneray and Engineering 4.3 Village Office Site The existing Community Center/Clinic is located on Lot 1 of Big Hill Subdivision. The existing heating fuel tank will be replaced with a new tank adjacent to theCommunityCenter. 4.4 Site Control A Certificate to Plat was prepared by Pacific Northwest Title of Alaska onDecember9,2002.A copy of the Certificate to Plat is included in Appendix C.The proposed Village site is located on property identified as held in trust by theStateofAlaska,Municipal Land Trustee Program (MLT):the "Shop”site isleasedtothePedroBayVillageCouncil,while the Bulk Fuel and Electric Generation site is leased to the Pedro Bay Improvement Corporation. The existing School site,including the tank farm and power plant,are located onpropertyidentifiedasownedbytheMunicipalLandTrusteeProgramandleasedtotheLakeandPeninsulaSchoolDistrict. The Pedro Bay Community Center/Clinic building is located on property alsoidentifiedasownedbytheMunicipalLandTrusteeProgramandleasedtothePedroBayVillageCouncil. 5.0 PROPOSED FACILITY DESCRIPTION As mentioned previously,the proposed bulk fuel facility concept is contingent ontheconsolidationofVillagepowergenerationtotheschoolsite.Without Villagepowergenerationconsolidation,an alternate tank farm site would need to be selected for the Village tanks and new community fuel consumption calculationswouldberequired.Therefore,a description of the Village power generationconsolidationandupgradeportionofthisprojectisalsoincludedinthissection. 5.1.Bulk Fuel Storage Consolidation and Upgrade The proposed new Village tank farm will provide for storage of diesel fuel for Village space heating,heavy equipment operation and Village electrical generation as well as gasoline for retail sales.The design provides for a linedearthenbermdiketocontainthreedieselfuelbulkstoragetanksof12,000gallonscapacityeachandan8,000 gallon double wall fire rated gasolinedispensingtank.A diesel fuel bulk transfer area with secondary containment forreceivingtruckdeliveriesandforfillingfueltrucksandportabletankswillalsobeconstructedadjacenttothedike.A security fence will enclose the dike and bulktransferarea.A gasoline dispenser will be located within a security enclosure.All work at this location is shown on attached drawing M2. The school tank farm contains two existing 10,000 gallon single wall diesel fuel storage tanks within an existing lined tertiary containment dike.The fuel at thissiteisforVillagepowergeneration,school emergency generation,and schoolspaceheating.An existing 100 gallon automatic fill day tank will service theVillagegeneratorsandwillfillautomaticallytomeetVillagegenerationdemand.A new 100 gallon automatic fill day tank will be installed in the school boiler roomtoservicetheschoolboilerandemergencygeneratorandwillfillautomaticallytomeetschoolspaceheatandemergencygenerationdemand.Both day tanks will Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Design Report Alaska Eneray and Engineering be equipped with redundant overfill protection devices.All work at this location is shown on attached drawings M5 and E2. 5.1.1 Secondary Containment The International Fire Code and E.P.A.regulations require fuel tanks to be installed within a secondary containment structure that is capable of holding thecontentsofthelargesttankplussufficientfreeboardtoholdaccumulated precipitation.The regulations include provisions for alternative secondarycontainmentutilizingdoublewalltankswithredundantoverfillprotection equipment.The Lake and Peninsula Borough Coastal Management Planrequiresthesecondarycontainmenttobecapableofcontaining115%of thecapacityofthelargesttankplus12"of freeboard for precipitation.Based uponlocalsoilsconditionsandavailabilityofgravel,an earthen berm with a membrane liner was determined to be the most practical means of providingsecondarycontainment. The Village tank farm earthen berm dike will be sized to contain 115%of the contents of the largest tank within it (12,000 gallons)plus 15"of freeboard for precipitation.It will be lined with a membrane liner compatible with both #1 diesel fuel and gasoline.A non-woven geotextile fabric will be installed above and below the liner to minimize the risk of puncture and damage and a 4”deeplayerofgravelcoverwillbeplacedovertheliner.A 4”deep cellular confinement grid will be installed over the liner on the interior dike walls to hold the gravelcoverinplaceonthesideslopes.A drainage sump will be provided for storm water removal via a siphon hose or portable pump. The existing school tanks are of double wall construction and are equipped with appropriate overfill protection devices to meet alternative secondary containmentrequirements.Therefore,the existing school tank farm lined timber dike is for tertiary containment only and is not sized to meet International Fire Code,E.P.A., or Lake and Peninsula Borough capacity requirements. 5.1.2 Tanks The new Village tank farm diesel bulk storage tanks will be shop built single wallhorizontalweldedsteeltanksbuiltandlabeledinaccordancewithUL142and equipped will steel saddie and skid foundations.The new gasoline dispensingtankisrequiredtobeatwo-hour fire rated tank due to its proximity to propertylinesandroadright-of-ways and will be built and labeled in accordance with UL2085.This type of tank is only available in a horizontal double wall configurationandwillbeequippedwithanoverfillprotectiondevice.The existing school tankfarmdieselbulkstoragetanksareshopbuiltdoublewallhorizontalweldedsteeltanksbuiltandlabeledinaccordancewithUL142andareequippedwillsteel saddle and skid foundations as well as overfill protection devices.All new and existing tanks will be equipped with level gauges,pressure/vacuum whistle vents,emergency vents,manholes,water draws,and_flanged _fill/withdrawalconnections.The Village tank farm tank skids will be placed on concretefootingssizedtolimitsoilbearingpressureto1,500 pounds per square foot.The existing school tank farm tank skids are on timber mudsills sized to limit soilbearingpressureto1,500 pounds per square foot. 10 Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Desiqn Report Alaska Energy and Engineering 5.1.3 Piping/Valves/Pumps/Accessories All piping will be schedule 80 black steel that is pre-primed and painted.It will beinstalledabovegradeonconcretepadsorsupportedfromtanksorbuildingsand secured with steel pipe straps or hangers.All piping joints will be welded or flanged except for connections to pumps and specialty valves which may bethreaded.Sufficient flanged joints will be provided to allow service of pumps and other devices.All connections to pumps and tanks will be made with stainless steel flexible connectors.Each isolated section of piping will be provided withpressurerelievingdevicestoaccountforthermalexpansionofproductcaused by temperature fluctuations.Provisions for movement of the piping caused bythermalexpansionandcontractionwillalsobeincluded.All valves will be steel body industrial grade valves intended for use with fuels. A service station style gasoline dispenser will be installed in a security enclosureneartheVillagetankfarm.A key-access type inventory control system will beinstalledtoallowlocalresidentsaccesstogasolinewithoutrequiringaVillageemployeetooverseesales.This system has separate keys for each party(family or business).A key is required to activate the dispensing system.Adjacent to each key switch is a mechanical totalizing meter that maintains apermanenttotalofgasolinedispensedbyeachparty. A bulk fuel transfer area with secondary containment will be provided at theVillagetankfarmtoallowtruckdeliveriestothebulktanksandtoallowportabletanksandtankertruckstobefilledwithdieselfuelfromtheCommunitybulkstoragetanksforfueldeliveries.The bulk transfer equipment will include acentrifugalpump,filter,custody transfer meter,hose,bulk transfer nozzle,and static grounding line. Both the new (School)and existing (Village)automatic fill day tanks at the schoolpowerplantarefilledthrough2"welded steel pipelines that connect to the school tank farm manifold.The day tanks will be equipped with a suction pump, automatic controls,and level gauge.Identical actuated ball valves located at the pipeline/manifold connections will be controlled independently by the two day tank contro!panels to prevent accidental discharge. 5.1.4 Security The school tank farm dike,Village tank farm dike,and drive-through bulk transferareawillbeenclosedbya6'tall chain link fence with a 1'high barbed wire top. Two 3'wide personal access gates and two 12'wide vehicle access gates will beprovidedintothefencedenclosure.The dual product dispenser will be installedwithinapoststructurewithconcretefloorslab,metal roof,and full-height chainlinkfencewalls.All valves will be provided with lockable handles to prevent theft and vandalism.Pump controls will be installed within fenced security areas orbuildings.Area lighting controlled by photocell will be provided at the dispensers,pump controls,and dike for security and spill detection and to enhance winter operation. 5.2.Electrical Generation Consolidation and Upgrade As mentioned in prior Section 3.2,it has been determined that consolidation ofallVillagepowergenerationattheschoolsitewillresultinsubstantialfuelsavingswithinthecommunity.By using existing code-compliant facilities,this 11 Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Desiqn Report Alaska Eneray and Engineering consolidation will also lower the cost of this Bulk Fuel and Power SystemUpgradeproject. 5.2.1 Generation Site and Building The existing LPSD school power plant is located in a utility building south of themainschoolbuilding.It is a 20'by 48'insulated metal structure with concrete slab-on-grade foundation that was constructed in 2001.It is partitioned into two main sections,with school heating and water utility equipment in the back one-third.The remaining space is allocated to power generation and shop/utilityspace.The school power plant building was constructed new in 2001 and wasdesignedwithconsiderationtothepotentialforfutureVillagepowergenerationconsolidation.Since the school complex is the only large single point heatingdemandinPedroBayandisalreadyequippedwithwasteheatrecovery,it is theonlypracticalfacilitytoutilizewasteheatfromtheconsolidatedgenerationplant.In addition,the LPSD tank farm is a new,fully code compliant 20,000 gallon bulkstoragefacilitylocatedadjacenttotheschoolpowerplant.The existing PBVCpowerplantislocatedapproximately600'from the school.It is an older 20'by40'metal structure with concrete slab-on-grade foundation and is in need ofmajorrenovation.There would be high heat loss and pumping energyassociatedwiththelongdistancetransmissionofwasteheatfromthissitetothe school building.Based on this,the school site is the most practical location forconsolidationofgeneration. The school power plant currently houses two each 60kW generators and there isanemptyspacedesignatedforonefuturegenerator.LPSD district staff hasindicatedadesiretoretainoneexistinggeneratorforschoolemergencygeneration.Village power generation would require a total of three generators.The school facility does not have adequate space to house a total of fourgeneratorsandthenewVillageswitchgearinthepresentconfiguration.Therefore,an additional 16'long bay will be added to the north end of the building to replace the school utility space given up and to house the school emergency generator.The gravel pad around the building will need to be extended on the northwest corner of the building to facilitate access to the new school bay overhead door as well as for traffic flow around the enlarged power plant.The school heating and water utility equipment will remain in the southern bay.The remaining two central bays form an area measuring 32'x20'and will be used to house the three Village generators,switchgear,and distribution equipment.See drawing E2 for the proposed renovated power plant and equipment layout. 5.2.2 Generation Equipment The combined peak generation load of the Village and school is estimated at115kW.The new system will need to have a single generator capable ofcarryingthemaximumpeakload,a second generator that is sized for the normaldailywinterload,and one smaller generator sized for summer load.Themediumandsmallgeneratorswillbeabletobeoperatedinparalleltomeetthemaximumpeakloadifrequired.Prior to final selection of generation equipment,power monitoring and recording equipment should be installed in the Village andschoolpowerplantsduringfall/winter of 2003 in order to more accuratelydetermineelectricaldemandinPedroBay. 12 Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Design Report Alaska Energy and Engineering The existing Village power plant has three engine/generator sets capable ofoperatingat240V,single phase.The largest was purchased in 2000 and has a 125 kW prime power rating.This unit has a John Deere model 6059TFG01 diesel engine and a Newage generator.It will be relocated to the new powerplant.The other two units are older 112.5 kW and 100 kW rated units and will not be reused.The school also has two 60kW John Deere 4045T150 engine/generator sets purchased new in 2001.The school generators operate at 240V,single phase.As mentioned before,one of the existing school 60kW unitswillberelocatedtoserveasschoolemergencystandbygenerationandonewill serve as the Village small summer load generator.A new 100kW genset will beinstalledastheprimaryVillagegenerator.All generators will operate at 240Vsinglephase. New switchgear will be installed in the Village power plant.There will be a totalof4sections-one for each generator and one for the master control anddistribution.The switchgear will be fully automatic with paralleling capability andwillutilizeaprogrammablelogiccontroller(PLC)to automatically match therunninggeneratortothecommunityload.Optimum fuel efficiency is achieved bymatchingthegeneratortotheload.This style of switchgear has been usedsuccessfullyonseveralrecentEnergyAuthorityprojects.|The distributionsectionwillincludethreefeederseachwithseparatecircuitbreakersandmetering-one for power plant station service,one for the school,and one fortheVillagedistribution.A totalizing meter will also be installed to record the total power generated. The existing school power plant has one relatively new radiator and one olderradiatorthatarebothsuitableforre-use.The new one will serve the new Villagepowerplantandtheolderonewillberelocatedtoservetheschoolemergencygenerator.One additional radiator will be installed for the new Village powerplant.New cooling piping sized for the larger generation capacity will need to beinstalledinthenewVillagepowerplant,as well as for the school emergencygenerator.The existing heat exchanger and associated pumps,controls, instrumentation,and alarms will be reused. 5.2.3 Electrical Distribution Improvements The electric utility throughout Pedro Bay is a 7,200V single phase buried cable system.The existing Village power plant generates at 480V,single phase. There is a 100kKVA 480V/7,200V transformer and a three-way sectionalizer cabinet adjacent to the Village power plant for distribution throughout thecommunity.The existing school power plant is not currently capable of supplying power to the Village grid due to the unidirectional service connection through a50kVA,7,200V/240V transformer located near the school power plant.A manual transfer switch inside the existing school power plant allows the school to selectbetweenVillageserviceandselfgeneration. The existing 100kVA Village transformer will be removed.The existing 50kVAschooltransformerwillbereplacedwithanew100kVA,240V/7,200VtransformerforVillagepowerdistribution.The existing pair of 2"feeder conduitswith#4/0 triplex each from the new power plant to the new Village transformer aswellastheexisting#1/0 buried primary distribution cable from the newtransformertotheexistingVillagetapboxwillremaininservice.The existingVillagetapboxneartheschoolhasload-break elbows and will also serve as asectionalizerforpowerdistributiontothesouthernportionoftheVillageaswell 13 Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Design Report Alaska Eneray and Engineering as back to the existing sectionalizer cabinet near the old power plant.Theschooldistributionequipmentwillremaininserviceincludingthemanualtransfer switch which will allow the school to operate on its emergency generator. 5.3.Proposed Operating Scenario The PBVC is currently providing local retail fuel sales as well as operating thelocalelectricutilityandistheprimarycandidateforoperatingthenewtankfarm and power plant. The proposed new power plant is located on property currently leased by theDepartmentofEducationandoccupiedbyLPSD.LPSD is willing to deed orleasethenewpowerplanttothePBVC,including the recently constructed LPSDbulkfuelstoragefacility,providing a contract can be drafted that addresses the following issues and is agreed to by all parties: e All Village electrical power generation consolidated at school site.Power plant to be operated by the PBVC Power Utility. e LPSD to purchase all electrical power from the PBVC Power Utility at along-term bulk rate agreed to by all parties. e LPSD to receive all waste heat from the power plant. e LPSD to purchase fuel from the PBVC,metered at the school boiler room day tank,under terms agreed to by all parties. Under this scenario,the PBVC will be responsible for management of the newcommunitytankfarm.Management responsibilities include:maintenance andoperationofalltanks,pumps,and piping systems:removal of storm water from the dikes;annual pressure testing of pipelines;maintenance and replacement of spill response equipment and supplies;and snow removal. These operating costs should be determined on a per gallon of throughput basis(as part of the required Denali Commission Facility Business Plan)and the priceoffueladjustedtocoverthefacilityoperatingcosts. 6.0 PERMITTING AND SPILL RESPONSE The new facility will be subject to Regulations of both State and FederalagenciesincludingtheDivisionofGovernmentalCoordination,the Division ofFirePrevention,and the U.S.Environmental Protection Agency.Dependinguponlocalconditions,additional permitting agencies such as the U.S.Fish andWildlifeService,the U.S.Army Corps of Engineers,the State HistoricPreservationOffice,and the Alaska Department of Natural Resources may become involved. 6.1 Environmental Assessment An Environmental Assessment (EA)will be completed prior to construction of theproject.An EA is required for all projects that are federally funded or require afederalpermit(such as a Corps of Engineers Wetlands Permit).The EAconfirmsthereisnosignificantimpacttotheenvironmentcausedbytheproject.As part of the EA,a Coastal Zone Management Project Questionnaire will be 14 Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Design Report Alaska Energy and Enqineering completed and submitted to the Division of Governmental Coordination.Pedro Bay is not located in a Coastal Management area.However,a Coastal Zone Management Project Questionnaire will be completed to help identify state orfederalpermitsthatmayberequired.A Corps of Engineers wetlands permitshouldnotberequiredforconstructionasallfillmaterialwillbeplacedinexistingdevelopedareas,and not in navigable waters.However,the need for a permitwillbeinvestigatedfurtherwiththeCorpsofEngineersearlyinthepermittingphase..If required,this project should qualify for review under the Department oftheArmyGeneralPermit96-07 for Village bulk fuel facilities.The general permitstreamlinestheapprovalprocess.Similar projects have been permitted in lessthantwomonthsunderthegeneralpermit. A Development Permit will be required from the Lake and Peninsula Borough toconstructtheconsolidatedtankfarm.This permit usually requires a publichearingandwaitingperiod.The process is expected to take approximately 3monthsandshouldbegininDecembertoensurecompletionintimeforspringconstruction. 6.2.Fire Code A Plan Review permit from the State Fire Marshal is required.Final stampeddesigndrawingswillbesubmittedforreviewandapprovalpriortoconstruction.Plans will be reviewed for conformance with the International Fire Code and portions of related codes including the International Building Code and theNationalElectricalCode.In prior years the review process has only taken 3 to 4weeks;however,recent projects have taken over 6 months.Generally site workandmobilizationisallowedtoproceedpriortoapprovalbutthepermitmustbeinplacepriortoplacementoftanksorsimilarinstallation.Plans should be submitted by December 2003 to ensure approval in time for spring 2004construction. 6.3 Spill Response Because Pedro Bay does not receive fuel delivery by marine vessel,the new facilities will not be subject to U.S.Coast Guard regulations.However,since both tank farm sites have oil storage tanks in excess of 660 gallons,they will besubjecttoU.S.Environmental Protection Agency regulations and will requirepreparationofaSpillPreventionControlandCountermeasures(SPCC)plan.Since ail deliveries will be received by truck (no direct marine deliveries)thefacilitywillnotbesubjecttoU.S.Coast Guard regulation and will not require aFacilityResponsePlanoranOperationManual. Spill response gear including sorbent material and protective safety gear will bepurchasedandlefton-site upon project completion along with a refurbishedexistingtanktoserveasoil-spill contingency storage. 7.0 CONSTRUCTION PLAN The AEA/REG has a history of administering similar projects on a "modified"force-account basis.Force-account construction involves the owner or grantee acting as the employer and utilizing primarily local labor.This method tends toachieveahigherpercentageoflocalhireandisstronglysupportedbymanycommunitiesandfundingagencies.The highly technical nature of tank farmprojectsrequiresalimitednumberofworkerswithspecificexperienceand 15 Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Design Report Alaska Energy and Engineering expertise to be brought in for the project when not available locally.All workmustbesupervisedandmanagedbyasuperintendentwithextensiveexperienceintheconstructionofruralfuelfacilities.All specialty work,such as pipe weldingandelectricalinstallationmustbeperformedbyskilledcraftsmenwithappropriatecertifications.An experienced construction manager will be required to recruit the necessary skilled labor,coordinate the construction team,and oversee procurement and project logistics.The design engineer will provide quality control through communication with the construction manager andperiodicon-site inspections. 7.1 Local Job Skills An inquiry was made for information regarding the availability of specialty skilledlaborinPedroBay.The following table summarizes the results: Skilled Trades Number Available Certified Welder 0 Welder Helper 1 Journeyman Electrician 0 Electrician Helper 0 Carpenter 0 Heavy Equipment Operator 6 Heavy Equipment Mechanic 2 In addition to the specialty trades listed,there are a number of local residentswithgenerallaborexperienceinvarioustypesofconstruction.It appears that ataminimumaprojectsuperintendent,a pipe welder/mechanical foreman,a journeyman carpenter,and a journeyman electrician will need to be brought intoPedroBayforthisproject. 7.2 Local Equipment A preliminary inventory was performed on local heavy equipment in Pedro Bayaslistedinthefollowingtable: Unit Model #Owner/Lessee Ford 5yd Dump Truck PBVC GMC 5yd Dump Truck PBVC International 10yd Dump Truck PBVC Case Dozer with Backhoe 850B PBVC Case Dozer 450 PBVC Case Loader with Forks 621B PBVC John Deere Road Grader PBVC Cat Excavator 320 PBVC Bobcat Skidsteer,Chipper,Forks,Auger 763 PBVC Hamm Roller/Compactor 2410 PBVC Mark Il Power Screen PBVC 16 Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Design Report Alaska Energy and Engineering The equipment is all in fair to good condition and should be adequate for all other work required.The community appears to be responsible in maintainingthelocalequipment.Prior to the start of construction an experienced fleetservicemechanicwillneedtobesenttoPedroBaytogothroughtheequipment with the local mechanics to ensure that it is all in proper operating condition. 7.3.Material Sources Pit run and screened gravel is available from a local gravel pit near the PedroBayairportapproximately1milefromtheprojectsite.The Bristol!Bay NativeCorporationownstherightstothegravelandhascharged$4/cubic yard in the past. 8.0 SCHEDULE The construction schedule must take into account freight options,school vacancy,fuel delivery schedule,and other factors.Line-haul barge deliveries originating inSeattleorAnchoragedonotusuallymakeitintoLakelliamnauntilearlyAugust.Alternatively,ail materials and equipment for this project can be transported bybargetoWilliamsportonCookInlet,by truck from Williamsport to Pile Bay,andthenmovedtoPedroBayonthelocalflexi-float barge.This freight option isavailableassoonastheiceisoutonlliamnaLake,usually by late May.Tools,miscellaneous supplies,and smaller materials can be brought directly to PedroBaybysmallfreightaircraft(Casa or DC-3).Barge fuel deliveries typically occurfrommicAugustthroughtheendofSeptemberandaircraftfueldeliveriesoccuryear-round. All construction materials and equipment should arrive at the project site by earlyJune.The tank farm should be substantially complete and functional by mid-August,in time for a barge delivery.All punch list items should be completed bytheendofAugust. The existing Village power plant can be used to provide power to the communityduringconstructionofthenewtankfarmandpowerplant.The removal of the largest generator for installation in the new power plant will leave adequategenerationcapacityonlineaslongasthisisaccomplishedinthesummerwhile electric loads are low and the school is not in use.The school power plant buildingadditionshouldbeperformedfirst,followed by relocation of the GOkW school emergency generator,connection of emergency generator service to school,installation of the new 100kW Village generator,relocation of the existing 125kWVillagegenerator,installation of new switchgear,installation of the new Village100kWtransformer,and then installation of all additional mechanical and electrical systems.Switchover to the new power plant including reconnections at Villagesectionalizers.and connection to the new Village transformer will occursimultaneouslyduringaplannedVillagepoweroutageafterthenewplanthasbeentestedandcommissioned. The schedule on the following page has been developed on the basis of this proposed work plan: 17 Pedro Bay Bulk Fuel Consolidation &Upgrade Concept Design Report July 8,2003 Alaska Energy and Engineering PROPOSED PROJECT SCHEDULE AUG-OCTNOVDECJANFEBMARAPRMAYJUNJULAUGSEP-OCTPH.Il TASKS (2003) 65%DESIGN Xon=-X REVIEW &FUNDING Xan=-X FINAL DESIGN X===-X PH.Ill TASKS (2003/4) PERMITTING ORDER TANKS XX ORDER REST OF MATL'S ,rn FREIGHT &MOBILIZATION Xne=X POWER PLANT ADDITION XaeeeX INSTALL/MOVE GENSETS POWER PLANT MECH/ELEC ELECTRICAL DISTRIBUTION COMMISSION POWER PLT. TANK FARM SITE/DIKE PLACE NEW TANKS PIPING,DISPENSER,ETC.. FENCE,ELECTRICAL,ETC. RECEIVE FUEL PUNCH LIST COMPLETION SPILL PLANS &CLOSE OUT Xan=-X 18 Pedro Bay Bulk Fuel Consolidation &Upgrade July 8,2003 Concept Design Report Alaska Energy and Engineering 9.0 COST ESTIMATE The construction cost estimates have been developed based on a "modified" force-account approach utilizing a combination of local labor,certified craftsmen, and specialty sub-contractors under the direction of an experienced constructionmanager.Labor rates are based on Title 36 equivalent wages for certifiedspecialtylaborandprevailinglocalforce-account wage rates for general labor and equipment operation.Separate construction cost estimates were developedforthebulkfuelandthepowergenerationportionsofthisprojectsincetheseprojectsmaybefundedfromdifferentsources.Detailed cost estimates areincludedinAppendixB.The total project cost including all design,supervision,inspection,permitting,and a 15%contingency is estimated to be: e $831,000 Bulk Fuel Upgrade (64,600 gallons at $12.86/gallon) e $733,700 Electrical Upgrade (345kW at $2,127/kW) e $1,564,700 Project Total The bulk fuel upgrade unit cost of $12.86/gallon is within the Denali Commissionbenchmarkcostrangeof$14 to $12 per gallon for 50,000 gallon to 100,000galloncapacitytankfarms.The electrical upgrade unit cost of $2,127/kW is wellundertheDenaliCommissionbenchmarkcostrangeof$3,500 to $2,900 perinstalledkWfor201kWto400kWcapacitypowerplants.The primary reason forthelowelectricalupgradecostisthecontributionoftheexistingschoolbuildingandequipment. 19 APPENDIX A CONCEPT DESIGN DRAWINGS I)REMAINDER ANCSA 14(c) __TRACT 7 _/ NEW ROAD RIGHT-OF-WAY,TYP - -,1 =150 Fe ae oD | Sy VILLAGE 'SHOP [2>ee S LoT 1,BLK1. =oS]BIG HILLEXISTING77SgOT]}SUBDIVISION GRAVEL YL VILLAGE OFFICE 1 i SEE SHEET M2 @ WELLFORALLWORK AT VILLACE TANK EXISTING A VILLAGE OFFICE /FARM SITE POWER PLANT TO BUILDING BE ABANDONED | PROPOSED VILLAGE TANK FARM uss PROPERTY BOUNDARY TRACT A BIG HILL 26972|SUBDIVISION PROPERTY LINE//|” EASMENT,TYP ON, ma NOTE:SEE SHEET E1 FOR / 'TEACHER /ELECTRICAL DISTRIBUTION WORK SEE SHEET M4 HOUSING i /FOR ALL WORK AT SCHOOL SITE , \ ;SCHOOL /'WELL REMAINDER |=ANCSA 14(c)'Vo \y RENOVATED SCHOOL S.TRACT 7 POWER PLANT /bw Ww EXISTING SCHOOL /.TANK FARM SPECIFIC NOTES: [T>4 EA.EXISTING 6,000 GALLON VILLAGE POWER PLANT TANKS TO BE TAKEN OUT OF SERVICE. [2>EXISTING VILLAGE GASOLINE AND DIESEL TANKS TO BE TAKEN OUT OF SERVICE. [3>2 EA.EXISTING 1,000 GALLON TANKS AND 1”BURIED FUEL LINE TO BE TAKEN OUT OF SERVICE. [4_>NEW 600 GALLON TANK V-5 WITH CATCH BASIN AND DOUBLE WALL ABOVE GROUND FUEL PIPING TO BUILDING BOILER proect:PEDRO BAY BULK FUEL STORAGE pRAWN BY:JT SCAE 1"=150' &POWER SYSTEM UPGRADE DESIGNED BY:BCG ore:7/08/03 [*»Depa of Commi 'ondetconomic Development PBAY-CDR-M1 5 " THLE:FILE NAME SHEET OF sap rural Group SALASKABULKFUELUPGRADEOVERALLSITEPLANM1esatestaFROi / \,'/ / / /NEW/DRIVE-THROUCH /FOR GASOLINE DISPENSING =,ACCESS / ,1=30 |'/12'x20' /VEHICLE SLAB y ABOVE /GRADE m0/PIPELINE TOyDISPENSER / // // // /1/6'HIGH CHAIN/LINK FENCE / //60'ROAD // //EASEMENT , ||//CONCRETE x / /// / / - \/7A \EXISTING \/\\GASOLINE /\\_DISPENSING \ \\TANKS TO BE \ABANDONED |\//NO apd rh 8'x8'SECURITY &71 ENCLOSURE FOR SL GASOLINEJ""\7 DISPENSER ELEVATION APPROX.61.0' EXISTING EQUIPMENT PAD ELEVATION APPROX.66.0' FILL AREA FOR DRIVE-THROUGH ACCESS AND BLEND TO EXISTING ROAD GRADE,TYP EDGE OF EXISTING ROADS / / /7 /// AND GRAVEL PADS,TYP P|\S DRIVE-THROUGH//: _ //'oor WW BULK FUEL ///TOP OF NH]|pike YA|||TRANSFER AREA DIKE IKE PIPING |/ELEVATION Me}PLAN k | ' 67.0°1 BULK FUEL///°a Ga j i TRANSFERCONDARY/2 (CFy D1 CONTAINMENTa\aeE=A!REA// //--_,//OeTH an THROUGHDIKEWITH- fe,MEMBRANE L FINISHED FLOOR /ACCESS / //LINER OF DIKE // /ELEVATION 64.5'// /PROPOSED TANK \//FARM SITE PROPERTY / !BOUNDARY /;a provect:PEDRO BAY BULK FUEL STORAGE DRAWN BY:UTD SCAE:1"=30'Stote of Aloske &POWER SYSTEM UPGRADE neseBr:BCG |owe:7/08/03 |*Deportpent of Comm VAEA Development mi nm set |"ME tus aw oe,FBALASIAVILLAGETANKFARMAREASITEPLAN=|onav-cor-w2IM2 5 ae re,hes Basa tTl 210 GASOLINE DISPENSER Vid 7 TANK V1 8'-0"dx22'L 5 a om)©OO pray ome 8,000 GALLONS ,1°=10'|GASOLINE DISPENSING LO j | TANK V2 9'-6"0x23'L ON1°O SO oo fetes L TANK FILL12,000 GALLONS °/|CONNECTIONSDIESELFUEL| |( TANK V3 i.9'-6"¢x23'L \bee C)©O 0 0 Jo fea 9”u12,000 GALLONS |L BULK DIESEL FUEL TRANSFER HOSE STAND ! TANK V4 9'-6"0x23'L -H-<|||>>odo C)oO 0°fo [ea12,000 GALLONS BoDIESELFUEL- Ne PUMP SCHEDULE TANK SCHEDULE LABEL |FUNCTION STYLE MOTOR TANK |NEW PREVIOUS |NEW/TYPE |FUNCTION |DIESEL GASOLINE P-1 |GASOLINE DISPENSING SUBMERSIBLE |3/4HP,230VOWNER_|OWNER |EXISTING |(2)CAPACITY(1)|CAPACITY(1)1/p-2 |DIESEL TRUCK LOADING |CENTRIFUGAL |1HP,230V$1 VILLAGE SCHOOL {EXISTING |DW BULK 0,000$2 [VILLAGE {SCHOOL |EXISTING [DW [BULK 0,000 GENERAL NOTES: NE Ne STORE TOT et aan]1.THE NET TANK FARM DIKE CAPACITY IS 35,000 V2__|VILLAGE NEW SW {BULK 2,000 GALLONS,115%OF THE VOLUME OF THE V3 |VILLAGE NEW SW __|BULK 2,000 LARGEST TANK PLUS 15”FREEBOARD FORV4VILLAGENEWSWBULK2,000V5|VILLAGE NEW SW__{BULK 600 PRECIPITATION. ee TIN.ae aed 2.THE NET BULK TRANSFER DIKE CAPACITY ISPROJECTSTORAGECAPACITYBYPRODUCT56,600 8,000 |2. PROJECT TOTAL GROSS STORAGE CAPACITY 4,600)5,600 GALLONS -ADEQUATE TO HOLD THE NOTES:1)ALL CAPACITIES ARE GROSS SHELL CAPACITY IN GALLONS CONTENTS OF THE LARGEST TANKER 2)SW =SINGLE WALL,DW =DOUBLE WALL,FR =TWO-HOUR FIRE RATED POTENTIALLY USED FOR FILLING TANKS. prosect:PEDRO BAY BULK FUEL STORAGE DRAWN BY:JTD |SCWE:1°=10"State of Aloska &POWER SYSTEM UPGRADE bese er:BCG |owe:7/08/03 |*w Departgent of ComiAIDEA/A Economic Development TLE VILLAGE TANK FARM PIPING PLAN FLE NAME SHEET OF a.oe eee oe.JS ALASKA&SCHEDULES PBAY-CDR-M3|M@3 5 -*Neste 89503 i tby||/|i _|aN !!EXISTING CULVERT,TYP(3)NJ"SLY ee \LoS!anian|1 \i ;SRY Les|i \|¢LYPLNPrtLNFUeeseTREENRRS'mii ff |EXTEND PAD.|EX Yor SNSwowWN'{AROUND BUILRING Sy |PROVIDE =1%!|\ADDITION AS LY Opry "CLOSING THIS 1K}oe?XS RS/7 -',i !END OF <A SINS y ho GY foCULVERTFOR{h\\\\%LOS foot ok LL Nt 20'x16'\POWER |!CONTAINMENT Wil p60 [POET 75 |\PLANT ADDITION |;\!SEE \tof td H\ee {Popo Fo tyio! !",|DURING BULK Wik)188 {ez ft 106 tos.SHEET E2FUELWtTRANSFERSIsjoyour Pia ff!"4 f I to}(||PLANT Prag |i |PLAN ph i po t /PAD MOUNT ("7|TRANSFORMER),'Var/ PSEOSSOGNeateeceeeee% /// DIESEL BULK|TRANSFER ,|SURFACE FLOM'CONTAINMENTAREAf /H!/NEW UNLINED|EARTHEN /BERM DIKE|FOR SURFACE FLOW ||CONTAINMENT,TOP OFDIKE\ELEVATION 97.0! \| I i i'i a (7 ©EDGE OF EXISTING "a->->ROAD/PAD,TYP Ibay||\toyi|'1 y|4|Ytrey! oe prosect:PEDRO BAY BULK FUEL STORAGE paw ey:JTD |some:1°=30"Stote of Aleska &POWER SYSTEM UPGRADE pesenen or:BCG |owe.7/08/03 Pw,Deparyyent of ComAIDEA/AEA Developrnent AE Wa |"yA sl Eee Son,SBALASISATLE:SHEET SCHOOL AREA SITE PLAN ppay-cor-m4|M4 5 {SCHOOL BOILER ROOM NEW 2”SUPPLY PIPELINE TO NEW SCHOOL DAY TANK f 4”CONTAINMENT PIPE,i J SLOPE TO DIKEWl TuMIN.3”HIGH CURB IHTHREESIDESul i EXISTING 2”DAY TANK |xX M SUPPLY PIPELINE TO 14'_POWER PLANT DAY TANK_\uf 7 .+H yo Te De sg Yl pon Bomnnn }2 <.Ne oa y Lt s -: ee fhe 1”ACTUATED BALL VALVES CONTROLLED BY ' ey Ae AUTOMATIC FILL DAY TANK CONTROL PANEL,T =Se Fee Oe (1 EXISTING &1 NEW)al a 0)Mae ae _f,-=}+b*4 AS Pa na|°.aon ttt.Y]Ord OC)0 oO Om.'4 46,ae ae .";I at fee EY EXISTING SCHOOL TANK S1 ety Ane anes 10,000 GALLON DIESEL !_we _oO "Aye 4 ! ta Yott i teed SLOPE ta |EXISTING LINED TIMBER EXISTING 5MOKoeeeTERTIARYCONTAINMENTDIKEPIPING,TYP $ NE ee aT:aN a a re i | +ar Noe a.@.oC ,_:7 t ome 4 rn ©I Pa .:.'4 .-el:{ se aw 4:I oa 7 oes Di:wt ."y ght [|Oo]C)O 0 ©Ops a ND EXISTING SCHOOL TANK S2 Oe aN ah,10,000 GALLON DIESEL erGaeees ONTVbye4_>=oN aNNXNEWCONCRETEDRIVE-THROUGH TRUCK SLAB FOR SURFACE FLOW SPILL CONTAINMENT prec:PEDRO BAY BULK FUEL STORAGE prawn BY:JTD SCAE:1"=10!StateofAlo&POWER SYSTEM UPGRADE pesonen a BCG |va:7/08/03 /*eK +contaome we cucaFAEDralrou;= SCHOOL TANK FARM MODIFICATIONS Peay -CDR-MS M5 ae on}wet ow a CaS Nein CONNECT TO EXISTING - SECONDARY FOR SERVICE TO NEW VILLAGE TANK FARM EXISTING SECTIONALIZER TO REMAIN IN SERVICE. 4 AIRPORTayBieTOVILLAGE 'SHOP BUILDINGve | ! VILLAGE OFFICE / REMOVE EXISTING 100kVA TRANSFORMER EXISTING VILLAGE POWER PLANT TO BE ABANDONED EXISTING 7,200V SINGLE PHASE BURIED DISTRIBUTION TO REMAIN,TYP , EXISTING SCHOOL POWER PLANT TO BE CONVERTED TO \\VILLAGE POWER PLANT -SEE SHEET E2 FOR POWER / / EXISTING SCHOOL SERVICE TO , REMAIN FOR VILLAGE FEEDERS TO iN PLANT MODIFICATIONS TRANSFORMERS,2 EACH 2”GRC WITH #4/0 TRIPLEX OONEW 100kVA TRANSFORMER r EXISTING SCHOOLEXISTINGPRIMARYTO TANK FARMREMAININSERVICE\ EXISTING PRIMARY TAP BOX TO SERVE AS NEW SECTIONALIZER FOR VILLAGE DISTRIBUTION | proect:PEDRO BAY BULK FUEL STORAGE &DRAWN By:JTD scale:1"=150"act ot Comsat of Aoaka |fe DevePOWERGENERATIONUPGRADEneseBCG|ome 7/08/03 [*».sP AGRAyaER OooPLEWasetOF|Sy Rural Eneiay Group FERAL ASK APOWERDISTRIBUTIONUPGRADESpeay-cor-€t IF |2 om socheres aad i808 NEW 20°x16'BUILDINGfoEXTENSION RELOCATE EXISTING 8"y WIDE OVERHEAD DOOR ySOOSTUY)j NEW EXHAUST FAN GENERATOR ROOM NEW SCHOOL y GENERATOR y Z RELOCATE ONE COMBUSTION AIR [Te HY /EXISTING SCHOOL INTAKE HOOD 4 g d]RADIATOR[I cqREMOVEEXISTINGnw L-RELOCATE ONE EXISTING OVERHEAD DOOR a SCHOOL 60kW GENERATOR WOE DOUBLE DOOR LI \petocare EXISTING VILAGE .COMBUSTION AIR.INTAKECENERATORHOODFROMNORTHWALL Z ROOM NEW POWER PLANT STATION SERVICE PANEL4 RELOCATE EXISTING ---HN \ VILLAGE 125kW DN \ GENERATOR 8:|NEW VILLAGE SWITCHGEAR AND DISTRIBUTION PANELbs NEW VILLAGE 100kW ---GENERATOR |LEXISTING SCHOOL BOILER ROOM PANEL -REMOVE ALL POWER PLANT CIRCUITS EXISTING STATION co EXISTING 100 ieSERVICE/DISCONNECT GALLON DAY SCHOOL MAIN DISTRIBUTIONTOBEREMOVED--=ys |TANK FOR =[]LY_-PANEL TO.REMAIN J VILLAGE EXISTING 60kW ae GENERATORS '\-REMOVE EXISTING SCHOOL SCHOOL GENERATOR A Ik GENERATOR TRANSFER SWITCH\-existING MANUAL TRANSFERTOBECOMEVILLAGEGENERATORy,L SWITCH TO REMAINEXISTINGEXHAUST:[p Ty OTN ra FAN [b V7 .- | EXISTING SCHOOL Ha )mae EXISTING SCHOOL HEATING RADIATOR TO REMAIN A "YS j=,sw 27 [SCHOOL)1 4 &WATER UTILITY )7 BOILER ||!EQUIPMENT,TYPROOM|1 4NEWRADIATORLIBOILER4RAhaNoeTTboOD[|try.AE 4 - NEW SCHOOL 100 GALLON DAY - ta TANK TO SERVICE EXISTING ys SCHOOL BOILER AND RELOCATED 1 1=8 | SCHOOL GENERATOR proect:PEDRO BAY BULK FUEL STORAGE praw ey:JTD |sow:1/8°=1"State of Aloska &POWER SYSTEM UPGRADE pesicnen gy:BCG oe:7/08/03 re Deport of wTAIDEA/AEA Development A7FILENAMESHEETOFyoB13WoatNortherthaSALASKARENOVATEDPOWERPLANTEQUIPMENTLAYOUT|ppay-cpr-c2 E2 2 *anchorage,Maka 89508 APPENDIX B CONSTRUCTION COST ESTIMATE ALASKA ENERGY AND PEDRO BAY BULK FUEL CONSOLIDATION &UPGRADE JULY 8,2003 ENGINEERING COST ESTIMATE SUMMARY CONCEPT DESIGN REPORT 1.FOUNDATION,DIKE,&SITE $63,835 2.TANKS $99,360 3.PIPING SYSTEM $43,038 4.PUMPS,DISPENSER,POWER,CONTROLS,ETC.$65,905 5.MISCELLANEOUS $43,020 6.OVERHEAD $113,700 7.FREIGHT $82,852 8.CONSTRUCTION SUB-TOTAL $511,709 9.CONSTRUCTION INSURANCE $3,480 10.FIRST YEAR OPERATIONS INSURANCE $7,420 11.DESIGN AND CONSTRUCTION ADMIN.$100,000 12.CONSTRUCTION MANAGEMENT $100,000 13.PROJECT SUB-TOTAL $722,609 14.CONTINGENCY $108,391 15 % 15.TOTAL PROJECT COST $831,000 16.TOTAL STORAGE CAPACITY 64,600 GAL.GROSS CAPACITY 17.COST PER GALLON OF GROSS CAPACITY $12.86 Page B-1 of 5 ALASKA ENERGY AND PEDRO BAY BULK FUEL CONSOLIDATION &UPGRADE JULY 8,2003 ENGINEERING FORCE ACCOUNT CONSTRUCTION COST ESTIMATE CONCEPT DESIGN REPORT ITEM QUAN |UNIT}UNIT MATL |UNIT}LAB |LAB|LABOR |CONTR |FREIGHT]TOTAL |UNIT}TOTAL COST COST HRS|HRS |RATE]COST COST COST COST WT |WT(#) FOUNDATION,DIKE,&SITE Clear &Prep Site 1}lump $0 $0 50 50|$60 $3,000 $3,000 0 Gravel 1,500}cu.yd}$4.00 $6,000 |0.250 375)$60}$22,500 $28,500 0 Select Gravel (Top Cover Only)100jcu.yd.|$4.00 $400 |0.500 50]$60 $3,000 $3,400 0 Dike Membrane Liner 5,000|sq.ft.$1.30 $6,500 |0.005 25|$60 $1,500 $8,000 |0.17 850 Non-Woven Geotextile (Dike)|15,000}sq.ft.$0.09 $1,350 }|0.001 15}$60 $900 $2,250 |0.08 1200 Woven Geotextile (Pad)7,000]sq.ft.$0.07 $490 |0.001 7}$60 $420 $910 |0.04 280 4"Ceilular Confinement 2,400}sq.ft.$1.05 $2,520 |0.01 18}$60 $1,080 $3,600 |0.35 840 6'Chain-Link Fence 350}lin.ft.|$10.50 $3,675 |0.50 1751 $60 |$10,500 $14,175 |15.00 5250 TANKS Drain Existing Tanks 9}ea.$100 $900 10 90|$80 $7,200 $8,100 0 Paint Contingency Tank 800}sq.ft.$0.60 $480 |0.05 40}$60 $2,400 $2,880 |0.20 160 New 12,000 Gal Bulk Tanks 3]ea |$15,000 $45,000 0 O|$60 $0 $45,000 [12000 36000 New 8,000 Fireguard Tank 1}ea |$30,000 $30,000 0 O|$60 $0 $30,000 130000 30000 New 600 Gal Diked Tank 1]ea $3,000 $3,000 0 0}$60 $0 $3,000 |1000 1000 Emergency Vents 5}ea $300 $1,500 2 10]$60 $600 $2,100 75 375 Pressure/Vacuum/Whistle Vents 4|ea $250 $1,000 2 8)$60 $480 $1,480 20 _80 Clock Type Gauges 5|ea $280 $1,400 2 10]$60 $600 $2,000 20 100 Place Tanks in Dike 4|ea $0 $0 20 80;$60 $4,800 $4,800 0 PIPING SYSTEM Demolish Old Piping 1|lump $0 $0 20 20}$60}$1,200 $1,200 0 2"Sch 80 Weided Above Grade 400]lin.ft.$5.00 $2,000 |0.10 40|$60 $2,400 $4,400 5 2000 1"Sch 160 Welded Above Gradq 100}lin.ft.$5.00 $500 |0.10 10}$60 $600 $1,100 3 300 Paint Piping 500|sq.ft.$0.60 $300 |0.10 50|$60 $3,000 $3,300 |0.20 100 4x12 Treated Timber Sleepers 50]tin.ft.$4.00 $200 |0.10 5|$60 $300 $500 13 650 2"Pipe Straps 10]ea $1.75 $18}0.10 1}$60 $60 $78 |0.60 6 Misc Strut &Pipe Clamps 1]lump |$2,000 $2,000 40 40}$60|{$2,400 $4,400 |400 400 Flexible Connectors 8]ea $125 $1,000 1 8]$60 $480 $1,480 10 80 Manifold &Dispensing Fittings 1|lump |$4,000 $4,000 150 200}$60]$12,000 $16,000 |3000 3000 2"Flanged Gate Valves 2|ea $200 $400 2 4|$60 $240 $640 50 100 2"Flanged Check Valves 4|ea $150 $600 2 8]$60 $480 $1,080 50 200 2"Flanged Ball Valves 5]ea $175 $875 1 5}$60 $300 $1,175 30 150 1-1/2"Flanged Ball Valves i]ea $150 $150 1 1}$60 $60 $210 20 20 1"Flanged Piston Check i{|ea $200 $200 1 1{$60 $60 $260 20 20 1"Flanged Ball Valves i]ea $100 $100 1 1;$60 $60 $160 15 15 Misc Threaded Ball Valves 1}lump $200 $200 10 10}$60 $600 $800 50 50 Page B-2 of 5 ALASKA ENERGY AND PEDRO BAY BULK FUEL CONSOLIDATION &UPGRADE JULY 8,2003 ENGINEERING FORCE ACCOUNT CONSTRUCTION COST ESTIMATE CONCEPT DESIGN REPORT ITEM QUAN |UNIT)UNIT MATL UNIT]LAB LAB |LABOR |CONTR |FREIGHT TOTAL UNIT!TOTAL COST COST HRS|HRS |RATE|COST COST COST COST WT |WT(#) 2"Strainers 2|ea $300 $600 1 2|$60 $120 $720 50 100 1"Strainers 1j ea $225 $225 1 1}$60 $60 $285 30 30 {"Flanged PRV 1|ea $475 $475 1 1}$60 $60 $535 10 10 1"Threaded PRV 1]ea $225 $225 2 2|$60 $120 $345 20 20 2"Anti-Syphon Valves 1)ea $150 $150 2 2|$60 $120 $270 10 10 1-1/2"Shear/Fusible Valves 1}ea $80 $80 2 2}$60 $120 $200 40 10 1"Actuator Valves 1]ea $1,400 $1,400 2 2|$60 $120 $1,520 35 35 2"Fill Limiters 1}ea $700 $700 4 4]$60 $240 $940 20 20 2"Pipeline Filter 1]ea.$1,200 $1,200 4 4|$60 $240 $1,440 100 100 PUMPS,DISPENSER,POWER,CONTROLS,ETC. 3/4 HP Submersible Pump 1]ea $1,000 $1,000 6 6}$60 $360 $1,360 |100 100 1 HP NV Centrifugal Pump 1)ea $1,300 $1,300 4 4|$60 $240 $1,540 75 75 Grounding Reel 1]ea $200 $200 2 2}$60 $120 $320 20 20 4-1/4"Bulk Transfer Hose 25}lin.ft.$11 $275 |0.10 3]$60 $150 $425 1.5 38 Bulk Transfer Nozzle &Acces.1]ea $300 $300 4 1}$60 $60 $360 10 10 Custody Transfer Meter 1]ea $2,800 $2,800 10 10}$60 $600 $3,400 100 100 Single Prod Mech.Dispnsr 1)ea $3,000 $3,000 30 30]$80 $2,400 $5,400 |400 .400 Key Control System 1{ea |$1,000 $1,000 20 20|$80 $1,600 $2,600 |100 100 Pump Control Panel 1]ea $7,500 $7,500 100 400]$80 $8,000 $15,500 100 100 Meter Base &Panel Board 1]lump |$1,000 $1,000 60 60]$80 $4,800 $5,800 |200 200 Area Lighting 4]lump |$1,000 $1,000 40 40|$80 $3,200 $4,200 300 300 Conduit,Conductors,&Devices 1}lump |$5,000 $5,000 {250 250|$80]$20,000 $25,000 |2000 2000 MISCELLANEOUS Concrete 21]cu.yd.$100 $2,100 7 147{$60 $8,820 $10,920 |600]12600 Misc.Steel (Shelters,Stairs..)4}lump {$2,000 $2,000 40 40|$60 $2,400 $4,400 |2000 2000 Form Lumber,Lags,Nails,Etc 1}lump |$1,000 $1,000 40 40|$60 $2,400 $3,400 |1000 1000 Portable Dike Drainage Pump 2)ea $500 $1,000 0 0}$60 $0 $1,000 {100 200 Signs &Valve Tags 1}lump |$1,500 $1,500 30 30{$60 $1,800 $3,300 100 100 Spill Response Supplies 1j lump |_$5,000 $5,000 0 0;$60 $0 $5,000 |600 600 Portable incinerator 1|ea.$5,000 $5,000 0 0}$60 $0 $5,000 200 200 Misc Hardware 1}lump |$2,000 $2,000 0 O|$60 $0 $2,000 500 500 Misc Tools &Safety Gear 1]lump |$5,000 $5,000 0 0}$60 $0 $5,000 500 500 Welding Rod,Gases,Etc.4]lump |$3,000 $3,000 0 0}$60 $0 $3,000 |1000 1000 OVERHEAD Audit Grants 1|lump $6,000 $6,000 0 Replat,ROW,Legal Work 1}lump $15,000 $15,000 0 Page B-3 of 5 ALASKA ENERGY AND PEDRO BAY BULK FUEL CONSOLIDATION &UPGRADE JULY 8,2003 ENGINEERING FORCE ACCOUNT CONSTRUCTION COST ESTIMATE CONCEPT DESIGN REPORT {ITEM QUAN |UNIT]UNIT MATL |{UNIT|LAB {|LAB}LABOR |CONTR |FREIGHT]TOTAL |UNIT]TOTALCOSTCOST|HRS}HRS |RATE]COST COST COST COST WT |WT(#) Service Heavy Equip 1]lump $10,000 |100 100}$60 $6,000 |$15,000 $31,000 0 Misc.Tool/Equip Rent/Purch.1}jump $20,000 $20,000 0 Commission System &Training 30}hr 1 30]$80 $2,400 $2,400 0 Superintendent Overhd Off-Site 100}hr 1 100}$80 $8,000 $8,000 0 Superintendent Overhd On-Site 100}hr 1 100]$80 $8,000 $8,000 0 Crew Travel Time 80}hr 1 80{$80 $6,400 $6,400 0 Crew Airfares 8|trips $4,000 $4,000 0 Crew Per Diem 200}mn.dy $8,400 $8,400 0 Housing Rent 3]mo.$4,500 $4,500 0 FREIGHT 105,704 Freight Anch-Pedro Bay 105704 |Ib.$0.50 $52,852 Airplane Tool Mob/De-Mob 2]ea.|$10,000 $20,000 Misc Small Freight 41 |lump |$10,000 $10,000 CONSTRUCTION SUB-TOTAL $183,/88 2,570 $172,170|$72,900 |$82,852 |__$511,/09| Construction Insurance 0.680%}Construction Cost $3,480 First Yr.Ops.Insurance 1.450%{Construction Cost $7,420 Engineering (Design &CCA)1jlump $100,000 Construction Management dflump $100,000 PROJECT SUB-TOTAL $183,788 $172,170 |$283,799 |$82,852 |$722,609|Contingency 15|%|$108,391 [TOTAL PROJECT COST $831,000 Page B-4 of 5 ALASKA ENERGY AND PEDRO BAY ELECTRIC UTILITY CONSOLIDATION &UPGRADE JULY 8,2003 ENGINEERING COST ESTIMATE SUMMARY CONCEPT DESIGN REPORT WORK ITEM MATERIAL LABOR TOTAL 1.ADD NEW 16'x20'BAY TO BUILDING (WITH HEAT/LIGHT)$25,000 $35,000 $60,000 2.MOVE &RE-INSTALL EXISTING SCHOOL 60kW UNIT $2,000 $20,000 $22,000 3.MOVE &INSTALL EXISTING 125kW UNIT $6,000 $25,000 $31,000 4.INSTALL NEW 100kW UNIT $30,000 $25,000 $55,000 5.INSTALL NEW SWITCHGEAR $100,000 $40,000 |$140,000 6.INSTALL NEW 100kKVA TRANSFORMER $4,000 $4,000 $8,000 7.RADIATOR &COOLING PIPING FOR SCHOOL EMER.UNIT $5,000 $10,000 $15,000 8.NEW COOLING SYSTEM PIPING &RADIATOR $15,000 $20,000 $35,000 9.INSTALL NEW FUEL OIL DAY TANK,PIPING,&METERING $7,000 $5,000 $12,000 10.INSTALL NEW FIRE SUPPRESSION SYSTEM $35,000 $15,000 $50,000 11.RELOCATE EXIST &INSTALL NEW VENTILATION $4,000 $6,000 $10,000 12.INSTALL NEW POWER PLANT STATION SERVICE $5,000 $10,000 $15,000 13.FREIGHT $25,000 $0.50/# 14.CONSTRUCTION SUB-TOTAL $238,000 |$215,000 |$478,000 15.DESIGN AND CONSTRUCTION ADMIN.$80,000 16.CONSTRUCTION MANAGEMENT $80,000 17.PROJECT SUB-TOTAL $638,000 18.CONTINGENCY $95,700 15 % 19.TOTAL PROJECT COST $733,700 20.TOTAL GENERATION CAPACITY 345 kW 21.COST PER kW GENERATION CAPACITY $2,127 Page B-5 of 5 APPENDIX C SITE CONTROL DOCUMENTS PACIFIC NORTHWEST TITLE OF ALASKA,INC.A\\ CERTIFICATE TO PLAT ORDER NO.:00062836 Date:December 19,2002 ALASKA ENERGY &ENGINEERING,INC. 1217 E.KLATT ROAD STE A ANCHORAGE,AK 99511 Atm:STEVEN STASSEL Reference:PEDRO BAY This is a Certificate as of December 09,2002 at 8:00 a.m.on the following described property: See Exhibit A Attached hereto and made a part hereof u A search of the records of the Iliamna Recording Office by this Company reveals that title to the property described herein isvestedonthedateshownabovein: See Exhibit A Attached hereto and made a part hereof SUBJECT only to the exceptions shown herein:wPwnoGENERAL EXCEPTIONS: Encroachments or questions of location,boundary and area,which an accurate survey may disclose;public or private easements, claims of easements or encumbrances which are not disclosed by the public records including but not limited to rights of the state and/or public in and to any portion of the land for right of way as established by federal statute RS 2477;rights or claims of persons in possession,or claiming to be in possession,not disclosed by the public records;material or labor liens or statutory liens under State Acts not disclosed by the public records;water rights or matters relating thereto;any service,installation or construction charges forsewer,water or electricity. Right of use,control or regulation by the United States of America in the exercise of powers over navigation;defects,liens, encumbrances,or other matters created or suffered by the insured;rights,claims based upon instruments or upon facts not disclosed by the public records but of which rights,claims,instruments or facts the insured has knowledge. General taxes not now payable;matters relating to special assessments and special levies,if any,preceding the same becominga lien.Mining claims,reservations or exceptions in patents or in Acts authorizing the issuance thereof. Any law,ordinance or governmental regulation (including but not limited to building and zoning laws,ordinances,or regulations) restricting,regulating,prohibiting or relating to (i)the occupancy,use or enjoyment of the land;(ii)the character,dimensions or location of any improvement now or hereafter erected on the land;(iii)a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part;or (iv)environmental protection,or the effect of any violation of these laws,ordinances or governmental regulations,except to the extent that a notice of the enforcement thereof or a notice of a defect,lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Certificate. "Consumer Credit Protection,""Truth in Lending”or similar law,or failure to comply with said law(s). Any claim by reason of the operation of federal bankruptcy,state insolvency,or similar creditors'rights laws. 3201 C Street,Suite 110,Anchorage,AK 99503, PHONE (907)561-5122 @ Fax:(907)261-2201 CERTIFICATE TO PLAT Printed on Recycled Paper Page 1 Order No.:00062836 SPECIAL EXCEPTIONS: 1,EXCEPTIONS,RESERVATIONS,AGREEMENTS,EASEMENTS AND USE RIGHTS as set forth in interim conveyance: Recorded:November 4,1980 Book/Page:9/555 2.TERMS,COVENANTS,CONDITIONS AND PROVISIONS,including rights of way and easements,as contained in the Alaska Native Claims Settlement Act,dated December 18,1971,U.S.Public Law 92-203, (85 Stat.688,704;43 U.S.C.1601,et seq.). NOTE:No assurance is given as to the vertical delineation of the surface and subsurface estates in said land as provided in said Act. 3.ANY DEFECT OR INVALIDITY of the title to said land based on the fact that no patent has been issued by the United States of America.Upon the issuance of said patent and recordation thereof in the herein named recording district,said land will be subject to all the provisions and reservations contained therein Recording District:Tliamna 4.GRANT OF RIGHT OF WAY,including the terms and conditions thereof _In Favor.Of:._State of Alaska,DepartmentofTransportation and Public FacilitiesRecorded:January 29,1986 Book/Page:13/943 For:Right-of-Way for the use and maintenance of an access road serving the Pedro Bay Airport Affects:Portion of Parcel 1,See instrument 5.LEASE (Equipment Storage and Shop Facility),including the terms and conditions thereof Lessor:State of Alaska,Department of Community and Regional Affairs,as trustee for any future first or second class city in Pedro Bay,Alaska Lessee:Pedro Bay Village Council Term:30 years commencing on April 8,1986 and ending at midnight on April 8,2016Dated:April 8,1986 Recorded:April 11,1986 Book/Page:-14/89 ot Affects:Portion of Parcel 1,See instrument AMENDMENT NO.1,including the terms and conditions thereof Dated:January 17,1991 Recorded:February 6,1991 Book/Page:19/424 CERTIFICATE TO PLAT Printed on Recycled Paper Page 2 Order No.:00062836 SPECIAL EXCEPTIONS (Continued) 6.LEASE (Bulk Fuel Storage and Electrical Generator Facilities),including the terms and conditions thereof Lessor: Lessee: Term: Dated: Recorded: Book/Page: Affects: State of Alaska,Department of Community and Regional Affairs,as trustee for any future first or second class city in Pedro Bay,Alaska Pedro Bay Improvement Corporation 30 years commencing on July 3,1986 and ending at midnight on July 3,2016 July 3,1986 . 'July 9,1986 14/337 Portion of Parcel 1,See instrument. 7.LEASE (Community Hall),including the terms and conditions thereof Lessor: Lessee: Term: Dated: Recorded: Book/Page: Affects: State of Alaska,Department of Community and Regional Affairs,as trustee for any future first or second class city in Pedro Bay,Alaska Pedro Bay Village Council 30 years commencing on January 17,1991 and ending at midnight on January17,2021 January 17,1991 February 6,1991 19/428 Portion of Lot 1 of Parcel 2,See instrument 8.EASEMENT AGREEMENT,including the terms and conditions thereof In Favor Of: Recorded: Book/Page: For: Affects: Telephone Utilities of the Northland d/b/a PTI Communications December 27,1994 22/345 Cable system for the provision of telephone service Portion of Parcels 1 and 2,See instrument 9.RIGHT-OF-WAY EASEMENT,including the terms and conditions thereof In Favor Of: Recorded: Book/Page: For: Affects: Pedro Bay Village Council March 12,1996 22/985 Use and maintenance of a public access road in the village...60 feet in width Not defined of record,See instrument 10.RIGHT-OF-WAY EASEMENT,including the terms and conditions thereof In Favor Of: Recorded: Book/Page: For: Affects: Pedro Bay Village Council August 13,1996 23/335 Use and maintenance of a public access road in the village...60 feet in width Portion of Parcel 1,See instrument 11.ELECTRIC RIGHT-OF-WAY EASEMENT,including the terms and conditions thereof In Favor Of: Recorded: Book/Page: For: Affects: CERTIFICATE TO PLAT Printed on Recycled Paper PEDRO BAY VILLAGE COUNCIL March 3,1999 28/394 Electric transmission and/or distribution line or system Portions of Parcel 1 and 2,See instrument Page 3 Order No.:00062836 SPECIAL EXCEPTIONS (Continued) 12.ELECTRIC RIGHT-OF-WAY EASEMENT,including the terms and conditions thereof In Favor Of:PEDRO BAY VILLAGE COUNCIL Recorded:June 16,1999 Book/Page:28/661 For:Electric transmission and/or distribution line or system Affects:Portions of Parcel 1 and 2,See instrument 13.PUBLIC SCHOOL LEASE,including the terms and conditions thereof Lessor:State of Alaska,Department of Community and Economic Development Lessee:Lake and Peninsula School District Term:55 years Dated:March 12,2001 Recorded:March 15,2001 Book/Page:30/159 Affects:Tract A of Parcel 2 14.EFFECT of the notes as shown on Plat No.92-10,93-8,95-2. Note:Not within a taxing area. This report is restricted to the use of the addressee and is not to be used as a basis for closing any transaction affecting title to said property.Liability of the Company is limited to the compensation received therefor. CHARGE:$650.00 PACIFIC NORTHWEST TITLE OF ALASKA,INC. »LUV Authorized Signature Howard Hancock,Phone:261-2230 Hh Attachments December 18,2002 CERTIFICATE TO PLAT Printed on Recycled Paper Page 4 Exhibit A PARCEL 1: VESTING: STATE OF ALASKA,DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS,as Trustee for any future municipal corporation that may be established in the village of Pedro Bay,Alaska,an estate in fee simple. LEGAL DESCRIPTION: A Triangular shaped portion of Tract 7,of PEDRO BAY ANCSA 14(c)SURVEY,according to Plat 92-10,records of the Hliamna Recording District,Third Judicial District,State of Alaska, LYING Southwesterly of a 60 foot Right-of-Way created by Book 13,Page 943 and Southeasterly of a 60 foot Right-of- Way depicted on Plat 93-8,Big Hill Subdivision and Northerly of U.S.Survey No.7962. EXCEPTING THEREFROM the subsurface estate and all rights,privileges,immunities and appurtenances of whatsoever nature,accruing unto said estate pursuant to the Alaska Native Claims Settlement Act of December 18, 1971 (85 Stat.688,704;43 U.S.C.1601,1613 (f)(1976),as reserved by the United States of America. PARCEL2: VESTING: STATE OF ALASKA,DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT,as Trustee for any future municipal corporation that may be established in the village of Pedro Bay,Alaska,an estate in fee simple. LEGAL DESCRIPTION: Lot 1 and Tract "A”,of BIG HILL SUBDIVISION,according to Plat 93-8,records of the Iliamna Recording District, Third Judicial District,State of Alaska, EXCEPTING THEREFROM the subsurface estate and all rights,privileges,immunities and appurtenances of whatsoever nature,accruing unto said estate pursuant to the Alaska Native Claims Settlement Act of December 18, 1971 (85 Stat.688,704;43 U.S.C.1601,1613 (f)(1976),as reserved by the United States of America. APPENDIX D MEETING SUMMARY LETTERS 11711722 8:02pm P.@@2 Pedro Bay Village Council P.O.Box 47020 Pedro Bay,AK 99647 907.850.2225 /907.850.2221 (fax) November 11,2002 TheCouncil@pedrobay.com John Dickerson,Project Engineer Alaska Energy &Engineering,Inc. P.O.Box 111405 Anchorage,AK 99511-1405 Dear Mr.Dickerson: The Pedro Bay Village Council held a special meeting on October 28,2002 to review your Site investigation Summary and Preliminary Recommendations,and to develop consensus on a preferred option for the Pedro Bay Bulk Fuel Upgrade project.The Council would prefer the following course of action for the project: 1.Consolidation of Power Generation and Fuel Storage with LPSD. An MOA will be developed between PBVC and LPSD which specifies that PBVC will operate and maintain power generation facilities,LPSD will receive waste heat and power at a reduced rate.A tanker truck secondary containment area will be developed at the existing LPSD tank farm,alleviating the need for an underground pipeline between bulk storage areas.Cost to construct a secondary containment area should be less than cost to construct a pipeline.The PBVC feels that underground pipelines should not be a part of the project at all,reducing underground spill possibilities and maintenance costs. 2.New Bulk Storage Area at Village Shop Site. A new bulk storage facility would be developed near the Village Shop Site per your description (32,000 gals diesel and 8,000 gals gasoline).A tanker truck secondary containment area and transfer facility would be constructed as part of this site.There would be no pipeline.All fuel dispensing services would occur at this site. It appears to be a fairly straightforward project.Your Preliminary Recommendations were very helpful in aiding the Council with its decision.Hopefully,this will be enough direction to keep the project moving forward at this time. Sincerely, \abbaJohnM.Baalke Village Administrator Alaska Energy and Engineering,Inc. 1301 East Klatt Road P.O.Box 111405 Anchorage,AK 99511-1405 Kenai Office Phone (907)283-8031 Fax 283-7527 October 22,2002 7 pages total sent via fax to: e Keith Jensen,Pedro Bay Village Council,850-2221(original sent by mail) e John Baalke,Pedro Bay Village Council,850-2221 e Dennis Niedermeyer,Lake and Peninsula School District,246-4473 e David Lockard,AEA/REG,269-3044 Re:Pedro Bay Bulk Fuel Upgrade Site Investigation Summary and Preliminary Recommendations On Thursday October 10,2002,David Lockard of the Alaska Energy Authority / Rural Energy Group (AEA/REG)and John Dickerson of Alaska Energy and Engineering (AE&E)performed a site investigation for the proposed new bulk fuel upgrade project in Pedro Bay.At 5:00 PM we met with Village Administrator John Baalke and Lake &Peninsula School District (LPSD)Maintenance Superintendent Vince Webster to discuss the project.Village Administrator John Baalke was the only local representative present at the meeting.During our meeting several issues were identified that need to be resolved in order to define the project scope so that it can advance to the conceptual design phase.These issues include: 1)Current annual village fuel consumption 2)Status of existing community fuel storage facilities 3)Bulk fuel upgrade project costs and business plan requirements 4)Consolidation of power generation and fuel storage with LPSD 5)Fuel delivery options and relative costs 6)Description of consolidated facility 7)Description of optional stand-alone village facility This letter is provided to summarize and analyze these findings and to present a list of issues and possible options for the community to consider. 1)Current Annual Village Fuel Consumption Village electric utility fuel use was obtained from PCE data and represents athreeyearaveragefromFY1999toFY2001.FY 2002 was omitted because theschoolpurchasedpowerfromtheVillageforseveralmonthsduringconstructionofthenewschoolbuildingandpowerplant.Village fuel sales volumes wereobtainedfromtheVillageCouncil.The total of electric utility fuel and village fuelsalesagreedcloselywithdeliverytotalsobtainedfromEvert's Air Fuel for the same three years. Pedro Bay Bulk Fuel Upgrade Site Investigation Summary &Project Scope There is no data available for fuel usage at the new school facility.Totals wereestimatedusingtheschoolgeneratorfuelconsumptioncurve,spot checks of theschoolgeneratorcurrentoutput,and comparisons with other similar schoolfacilitieswithselfgenerationandwasteheatrecovery.The assumptions usedarelistedintheattachedanalysisinAppendixA. CURRENT ANNUAL FUEL CONSUMPTIONracty|UnleadedGas |#Diese Fuel LPSD 13,500 (1) Village Elec.Gen.22,200 Village Use &Sales 5,750 (2)22,000 Total 5,750 57,700 (1)Estimated total for power generation and heat,see Appendix A. (2)Based records for 1998 and 1999.Sales for 2000 and 2001 were unusually high due to large construction projects. 2)Status of Existing Community Fuel Storage Facilities Non of the village owned fuel storage,dispensing and bulk transfer facilities meetcurrentInternationalFireCode,National Electric Code,or EPA requirements.AcompletelistofdeficiencieswillbeincludedintheConceptDesignReport.These existing tanks and associated piping systems are in poor condition andwouldnottobecosteffectivetorenovate.The new 20,000 gallon LPSD tankfarmisfullycodecompliantandshouldremaininservice. 3)Bulk Fuel Upgrade Project Cost and Business Plan Requirements If approved,the Denali Commission will be providing funding for this project.Inordertoreceivefunding,projects must pass a cost benchmark test or provideadequatejustificationfortheunitcost.Small-scale projects tend to have higherunitcostsandthereforeattentionmustbepaidtolimitingtheprojectscopeandemployingcost-effective solutions to ensure funding viability. All Denali Commission funded community bulk fuel storage projects costing over$500,000 are required to have a business plan approved by the community.Requirements of the business plan include a surcharge on fuel adequate to create a fund for renewal and replacement over the life of the facility.Thisdirectlytiesthelong-term operational cost of the facility to the initial construction cost.This is another reason to carefully define a project that meets the long- term needs of the community without excess costly features. 4)Consolidation Of Power Generation And Fuel Storage with LPSD The village and school currently generate their own electrical power and storetheirownbulkfuelatseparatefacilities.The potential for consolidation ofvillage/school power generation and bulk fuel storage was discussed at themeeting.An analysis of the potential energy savings is included in Appendix A.Since the existing community generation facility is old and in need of significantrepairandtheschoolhasanewbuildingwithaheatrecoverysystem,the mostlogicalplacetoconsolidatethepowergenerationisattheschoolsite.The LakeandPeninsulaSchoolDistricthasindicatedawillingnesstopurchasepowerin bulk (wholesale rate)from the community if generation is consolidated at theirfacilityandtheycanutilizerecoveredwasteheat.The specific terms and Page 2 of 5 Pedro Bay Bulk Fuel Upgrade Site Investigation Summary &Project Scope conditions of the power sales agreement and use of the school building wouldneedtobeworkedoutduringdevelopmentofthedesignandbusinessplan.This consolidation has the potential to provide the following benefits: e Reduce annual fuel consumption by nearly 11,000 gallons by maximizinggeneratingefficienciesandbycapturingallavailablewasteheat. e Increase local electric utility net revenue by nearly $18,000/year providingthepotentialforbetteroperation/maintenance and possibly reduced rates. e Decrease bulk fuel upgrade costs by reducing total fuel storage volumerequiredinthecommunityandfullyutilizetheexistingcode-compliantschooltankfarm. e Provide a new generation facility at a reduced cost by utilizing the newLPSDpowerplantbuildingandinfrastructure. COMPARISON OF ANNUAL FUEL CONSUMPTION Facility Current |Estimated ConsumptionConsumptionwithConsolidation LPSD 13,500 1,600 Village Elec.Gen.22,000 23,000 Village Use &Sales 22,000 22,000 Total 57,500 46,600 5)Fuel Delivery Options And Relative Costs Fuel delivery airplanes with 2,000 gallons capacity and fuel barges are both available for fuel deliveries to Pedro Bay.The iliamna Lake fuel barge price is typically lower than the price of airplane delivered fuel.However,the fuel barge is only available for deliveries between August and October,requiring that a village purchase virtually an entire years worth of fuel in the fall to take full advantage of the fuel cost savings.Another consideration is that barge access to Lake Iliamna is dependent on adequate water levels in the Kvichak River.As recently as 1997 and 1998,no barges were able to access the lake and no fuel was delivered to any of the lliamna Lake communities by barge.In addition,the Pedro Bay Village Council has been purchasing all of it's fuel by airplane delivery in recent years even when the barge has been able to make deliveries. The fuel barge has two optional fuel delivery methods.It can pump through a marine header and pipeline or it can deliver fuel with a tanker truck that is carried on deck.At this time there is no delivery fee added to the fuel price when the tanker truck is used to offload fuel to a bulk fuel storage facility or residential tank.Historically,few villages in the Iliamna region have had barge fill pipelines or adequate bulk fuel storage facilities to receive a full winter supply of fuel without also filling all residential tanks.Therefore,the tanker truck has been an integral and necessary part of the fuel barge operation.The cost associated with the operation of the tanker truck and the longer offload times per village have been incorporated into the overall area barge fuel prices.This policy may change in the future as more communities construct adequate bulk storage facilities.However,at this time there is no requirement that a community have a marine header and barge fill pipeline in order to receive fuel from the barge. Page 3 of 5 Pedro Bay Bulk Fue!Upgrade Site Investigation Summary &Project Scope It is approximately 1,500'from the barge landing to the tank farm site.The estimated cost of installing a buried 3”pipeline is approximately $100 per foot, for a total estimated cost of $150,000.This would be a very expensive pipeline considering the relatively small volume of fuel to be delivered through it,the history of most fuel being received by airplane,and the ability of the barge to haul by truck.There would also be additional operational costs to the community because a marine pipeline will cause the facility to be regulated by the Coast Guard.These include additional spill plans,spill response and recovery equipment,annual pipeline pressure testing,and additional training. In September,2002 both the Village of Kokhanok and the Pedro Bay school paid $1.57 per gallon for #1 diesel fuel from the fuel barge,including truck delivery to their tank farms.In October of 2002 the Village of Pedro Bay paid $2.13 per gallon for airplane delivered #1 diesel fuel,not including delivery to the tank farm. Labor and other costs for handling this fuel and delivering it to the village tank farm are estimated to be around $0.20 per gallon,bringing the total price of airplane fuel for comparison purposes to approximately $2.33 per gallon.Based on these figures,barge fuel currently costs approximately $0.76 per gallon less than the true cost of airplane delivered fuel.With a current annual village consumption (not including the school)of around 44,000 gallons of #1 diesel fuel,this represents a potential savings of approximately $33,000. Based on this analysis,it appears the bulk fuel facility needs to be sized to hold a year's supply of fuel in order to take advantage of the fuel cost savings when barge fuel is available.During periods of unusually high consumption, supplementary deliveries can be received by airplane as required.Due to the level of inconsistent history of barge deliveries,the high cost of a pipeline,and the availability of tanker truck deliveries from the fuel barge,it appears that a marine pipeline is not justified.The facility should be designed to receive fuel from both the barge tanker truck and the local truck used to haul from the airport. 6)Description of Consolidated Facility An as-built survey of the entire area to be encompassed by this project is scheduled for the near future.At this time there is insufficient site data to provide drawings of any specific proposed facility.The consolidated facility description assumes that all village electrical generation will occur at a village operated power plant located on the school site with power system renovations and upgrades provided as a separate project concurrent with the bulk fuel upgrade project.The existing school fuel storage tanks will become part of a consolidated village bulk fuel storage facility. The new facility would have bulk storage located on two separate sites.The existing 20,000 gallon school tank farm (18,000 gallons net total)would be used for diesel storage.Two new 18,000 gallon single wall diesel storage tanks (32,000 gallons net total)would be installed in a lined earthen berm dike on the village shop site.This would provide for a total of 50,000 net usable gallons of #1 diesel storage. A tanker truck secondary containment area and bulk fuel transfer facility would be constructed in the vicinity of the new diesel storage tanks on the village shop site.This bulk transfer facility would be used for transferring diesel fuel into and Page 4 of 5 Pedro Bay Bulk Fuel Upgrade Site Investigation Summary &Project Scope out of the new diesel bulk storage tanks.A buried 2"pipeline would run from this facility to the school site.Transfers could be made directly from a tanker truck to the school site tanks or from the new village storage tanks to the school tanks. An 8,000 gallon (7,200 gallon net)fire rated gasoline dispensing tank with integral gasoline dispenser would be installed at a location convenient for retail sales by the village council,either on the shop site or near the community center. 7)Description of Optional Village Stand-Alone Facility This facility description assumes that village and school continue to generate power at two separate facilities.No upgrades or renovations would occur at the village power plant except for the installation of an automatic fill day tank with high and low level alarms. This facility would have bulk storage located at a single site.Two new 25,000 gallon single wall diesel storage tanks (22,500 gallons net)would be installed in a lined earthen berm dike on the village shop site.This would provide for a total of 45,000 net usable gallons of #1 diesel storage. A tanker truck secondary containment area and bulk fuel transfer facility would be constructed in the vicinity of the new diesel storage tanks on the village shop site.This bulk transfer facility would be used for transferring diesel fuel into and out of the new diesel bulk storage tanks.A transfer pipeline would be installed to the existing school facility to allow use of the truck secondary containment during deliveries to the school. An 8,000 gallon (7,200 gallon net)fire rated gasoline dispensing tank with integral gasoline dispenser would be installed at a location convenient for retail sales by the village council,either on the shop site or near the community center. Please review the issues presented and call me at 283-8031 to discuss or fax your comments to 283-7527.|look forward to working with you on this project. Sincerely, Alaska E ae)pene Inc. ohn Dickerson Project Engineer Enclosure -Appendix A,Analysis Page 5 of 5 Pedro Bay Bulk Fuel Upgrade Site Investigation Summary &Project Scope e School Generator Annual Fuel Consumption Estimate Per school maintenance technician Paul Taylor,the generator output peaks during lunch preparation at approximately 100A (24kW @ 240V).After school hours the load falls to around 15A (less than 4kW).Per engine fuel consumption data:24kW=1.9gal/nr,4kW=1.3gal/hr (assumed because no data below 15kW). A step function was used to estimate fuel consumption based on the following assumptions: 9 months (39 weeks)operation per year 8 hrs/day,5 days/week @ 1.9 gal/hr (24kW) 16 hrs/day,5 days/week @ 1.3 gal/hr (4 kW) 24 hrs/day,2 days/week @ 1.3 gal/hr (4 kW) Estimated annual school generator fuel consumption =9,500 gallons/year. e School Annual Electric Load Estimate The same step function was used to estimate annual school electrical energy consumption.Estimated annual school power consumption =60,000 kWH/year. (For comparison purposes,the Igiugig school,which is slightly larger and has older less-efficient systems,purchases an average of 70,000kWH/year from the local electric utility.) e School Generation Efficiency Estimate Using above data,the estimated school generation efficiency =6.3 kWH/gallon. e School Annual Heating Fuel Load Estimate Based on data from other comparable schools in similar communities,it is estimated that total annual consumption of heating fuel at this school without waste heat recovery would be approximately 6,000 gallons.This equates to approximately 0.9 gal fuel/square foot of floor area per year,which is within the expected range for new small school construction in this region of Alaska. e School Annual Heating Fuel Consumption Estimate An efficient waste heat system will recover the heating energy equivalent of approximately 20%of the fuel burned by the generators.Using this rule of thumb,the school generators are currently providing the equivalent of 2,000 gallons of heating fuel annually.Based on this,it is estimated that the current school boiler fuel use =4,000 gallons/year. e School Total Fuel Consumption Estimate The estimated annual total fuel consumption at the school,including power generation and boiler heating (with waste heat credit)=13,500 gallons/year. Appendix A -Fuel Consumption/Efficiency Analysis Page A-1 of 2 Pedro Bay Bulk Fuel Upgrade Site Investigation Summary &Project Scope e Current Village Generator Annual Fuel Consumption Per PCE data,3 yr average '99-'01,fuel consumption =22,200 gallons/year (Note that fiscal year 2002 is not used for average due to unusually high loads caused by school construction and temporary power service to school). e Current Village Annual Electric Sales Per PCE data,3 yr average '99-'01,electric sales =158,000 kWH/year. e Current Village Generation Efficiency Estimate Based on the above data the village generation efficiency =7.1 kWH sold/gallon. e Consolidated Village Generation Efficiency Estimate The typical generation efficiency for comparable communities where the school receives power from the local utility is approximately 10 kWH sold/gal.For comparison purposes,in FY 2001 the Igiugig Electric Company had an efficiency of 11.0 KWH sold/gal.Pedro Bay has lower total loads and a longer distribution system (higher line losses);therefore,the average generation efficiency should be slightly lower.Per PCE data,the village generation efficiency increased to 9.8 kWH sold/gal for fiscal year 2002,when the school was on village power from June 2001 through November 2001 (6 months total).School construction was completed just before school started in September and the school operated on village power until the end of November,when the school power plant came on line.Based on this period and data from comparable communities,the estimated generation efficiency for Pedro Bay if the village and school generation is consolidated =9.5 KWH sold/gal fuel. e Consolidated Village Generation Fuel Savings Estimate The combined annual electric power consumption is 158,000 kWH (village)plus 60,000 KWH (school)=218,000 kWH.The combined current annual fuel consumption for electrical generation is 22,000 gallons (village)plus 9,500 gallons (school)=31,500 gallons.If all electrical generation is consolidated in a single plant with an overall efficiency of 9.5 kWH sold/gal the estimate annual fuel consumption would be 23,000 gal,a reduction of 8,500 gal/year. The current estimated waste heat recovered from the school generators is 2,000 gal/year.Using the same estimated recovery rate for a new consolidated plant the potential recoverable heat is 20%x 21,800 gal =4,400 gal.This equates to a reduction of 2,400 gal/year in heating fuel consumption at the school. It appears that consolidating electrical power generation at the school!site could reduce overall community fuel consumption by nearly 11,000 gal/year. e Net Earnings on Electric Sales to School With Consolidation With estimated annual school electric consumption of 60,000KWH at an estimated wholesale price of $.33/kWH,total sales to the school would be approximately $19,800.The annual fuel consumption is estimated to increase by only 1,000 gallons due to increased efficiency.At an estimated future fuel price of $2.00/gallon the additional fuel cost is only $2,000/year.The net revenue increase for the utility is estimated to be $17,800/year. Appendix A -Fuel Consumption/Efficiency Analysis Page A-2 of 2 Alaska Energy and Engineering,Inc.Mailing Address -P.O.Box 111405 301 East Klatt Road Anchorage,AK 99511-1405(907)283-8031 (Kenai Office)283-7527 FAX October 4,2002 Keith Jensen,Village Council President Sent via fax to:850-2221 Village of Pedro Bay (3 pages total)PO Box 47020 Pedro Bay,AK 99647 Re:Pedro Bay Bulk Fuel Upgrade -Site Investigation Dear Mr.Jensen, Alaska Energy and Engineering has been selected to prepare the preliminary design fortheproposedconsolidatedbulkfueltankfarminyourcommunity.David Lockard of theAlaskaEnergyAuthority/Rural Energy Group and |will be traveling to Pedro Bay onOctober10,2002 to meet with community officials,inspect existing tanks,and discusstheproject.We intend to arrive around noon of Thursday,October 10 and depart theafternoonofOctober11.We will check in with you at the Village office upon our arrival.We would like to meet with you and other community officials to discuss the project indetailonThursdayafternoonorevening.Items for discussion at the meeting include: e Possible sites for the new tank farm e the possible relocation of the power plant &consolidation with LPSD e fuel spill contamination,assessment,and remediation Please invite owners and operators of the other tank farms to attend.In order to makeourvisitasproductiveaspossibleweneedthemostcurrentandcompleteinformationavailableregardingthefollowingitems: 1.Annual fuel use records from January 1,1998 through December 31,2001 for anyVillagefacilitiesincludingRetailSales,Power Generation,Water &Sewer,VillageOffices,Community Center,Clinic,Post Office,Head Start,Fire Hall,HeavyEquipmentOperation,Equipment Shop,etc..Provide separate gasoline,#1 dieseland#2 diesel (or winter blend)usage if applicable. 2.Names of all fuel vendors and transporters who have sold or delivered fuel to theVillageofPedroBaysinceJanuary1,1998. 3.Planned projects that may affect fuel consumption such as HUD housing,water andsewerexpansion,school addition,airport expansion/runway lighting,new clinic,etc. 4.Local sources of gravel or other fill material including type of fill available,owner,location,method of hauling,seasonal restrictions,etc. 5.Status of local labor pool (please fill out attached list). 6.A list of locally available heavy equipment and information regarding condition(please fill out attached list). We look forward to seeing you at the meeting.If you have any questions please callmeat283-8031. Sincerely,G2T nd paneer Inc.ohn DickersonProjectEngineer cc:David Lockard,AEA/Rural Energy Group PEDRO BAY TANK FARM PROJECT LOCAL LABOR POOL Name 5/23/20031)With Current API Welding Certificate 2)With Current Certificate of Fitness PEDRO BAY TANK FARM PROJECT LOCALLY AVAILABLE EQUIPMENT LIST ATTACHMENTS - CAPACITY |(BACK-HOE,FORKS,CONDITION, OWNER MAKE MODEL |YEAR |(YDS,TONS)AUGER,ETC..)COMMENTS DUMP TRUCKS DOZERS LOADERS TRACK HOES(EXCAVATORS) SKID-STEERS (BOBCATS) CRANES