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KODIAK TWNST BK 1 LT 11A - Variance
LAND PURCHASE STUDY FOR KODIAK ELECTRIC ASSOCIATION, INC. Crews, Maclnnes and Hoffman Consulting Engineers March 26, 1981 TABLE OF CONTENTS 41 TITLE I. INTRODUCTION II. BACKGROUND AND DATA DEVELOPMENT 9 A. Existing Facilities B. Fuel Costs C. Projected Fuel Consumption D. Generation E. Description of Adjacent Property . F. Sale of KEA's Waterfront Property . III. ALTERNATIVES A. No Purchase of Adjacent Property . B. Purchase Lots 17A and 17B C. Purchase Lots 10, 11A and 11B . . IV. DEVELOPMENT OF LOTS 10, 11A AND 11B A. General Comments B. Installation of Additional Fuel C. Fuel Storage Alternatives D. Regulatory Agencies V. CONCLUSIONS AND RECOMMENDATIONS . APPENDIX PAGE NO. .2 3 3 4 5 7 8 10 13 13 . . 13 16 20 . 22' I. INTRODUCTION: Kodiak Electric Association, Inc. has considered for some time the purchase of property adjacent to the existing generating plant site. New land area adjacent to the existing generating plant could allow further development of the generating plant and itsisupporting facilities. The purchase of property to enlarge the existing site on the north side of Tagura Road could also facilitate the sale of valuable waterfront property on which the original plant, four packaged peaking generators, and a small warehouse are now located. The purpose of this study is to evaluate the potential for development of parcels of land adjacentItolthe power plant site and examine alternatives available to KEA. II. BACKGROUND AND DATA DEVELOPMENT: A. Existing Facilities: The generating facilities belonging to Kodiak Electric Association as they exist today are shown on an aerial photograph, Figure 1. The "new" power plant (constructed on 1976), a 20 MVA substa- tion, two 20,000 gallon fuel tanks, and KEA head- quarters building are all located on the north of Tagura Road. A piece of waterfront property on the south of Tagura Road contains the "old" power plant, a small warehouse, and four "packaged" Fairbanks -Morse generators in weatherproof enclosures. KEA also owns a tidelands tract, deeded to,the utility in 1963 by the city of Kodiak. The "old" plant contains five heavy duty Enterprise diesel generators, ranging from 484 to 800IKW in capacity. These units have all been in service for at least 24 years; the oldest units were installed in 1949. Presently, these unitsiare "moth balled" to a certain extent, and some prepara- tion would be required before they could be started and put on line. Each unit has around 100.000 hours running time. The Fairbanks -Morse generators include three with ratings of 2000 KW and one at 2665 KW. All are identical in bore, stroke and number of cylinders, but Unit #8 obtains its higher rating with an operating speed of 900 rpm versus 720 rpm for the other three. The F -M's were installed in 1966 and 1968. Units 6, 7 and 9 have about 60,000 running hours; Unit 8 has about 20,000 hours. All four are maintained in running condition and are employed frequently where system demand exceeds the. available capacity of the "new" plant. The "new" plant is a permanent concrete structure built in 1976. Three Enterprise diesel generators, with ratings of 2500, 5270 and 5270 KW were installed during construction. A fourth unit, No. 13 rated at 7000 KW, is scheduled for start-up in May or June of 1981. The substation steps generation voltage (4.16 KV) up to 7.2/12.5 KV or 69 KV through two 10 MVA multi -winding transformers. A third 10 MVA trans- former may be added within the existing'substation enclosure. The lower floor of the headquarters building and the small warehouse were used for storage of -3 -- 1'11s7a. • • ao.'"t • distribution materials until recently. KEA now leases space for this purpose, and most of the materials have been relocated. Fuel storage consists of two 20,000 gallon horizontal tanks located in a diked area east of the "new" generator building. A buried fuel oil line connects these tanks to bulk fuel storage owned by l Chevron about 1300 feet to the southwest. For the past several years, however, fuel supply contracts have gone to the Union Oil distributor, who makes daily truck deliveries. Very little space remains available for any kind of development on the existing KEA site. The area "uphill" from the new plant has no practical use because of the sharp rise between the plant building and Mission Road. A small area exists on the east of the substation, but this area is used for outside storage of some materials. Part of this area must remain clear to maintain access to the substation. B. Fuel Costs: The dramatic rise in fuel costs has been e painful fact of life for virtually every citizen lof the nation for the past four years or longer. Not only are these costs seen in direct increases to operate cars or heat homes, but indirectly in costs to consumers of electricity where generation depends on a petroleum fuel. KEA's own experience with fuel costs are shown graphically in Figure 2. Each 10 cent increase results in a direct; increase of over 7 mills per KWH in the cost of electrical production. Prediction of future cost increases is complicated, depending on many world-wide influences. Some experts have observed the apparent over -production of refined fuels in the lower 48 and have, concluded that prices may begin to stabilize. Figure 2 shows fuel cost projections if price inflation slows to 12% per year, or if increases stabilize at a flat 22 cents per year. C. Projected Fuel Consumption: Until Terror Lake Hydro is on line, fuel consumption is a direct function of the total electrical energy production of the KEA plant. Past history shows an average of 14 KWH produced per gallon of fuel, and this figure is used for fuel consumption predictions. -4- .. •ii61�C1iee' 06: ' i e ii..i66661 161 666660666=66666606Marl MS 6666666666 =6 66U"6• 66 r .. ■ ion SOME X6,660 6°6606=6■ . _i 1.16E6 11111 6 e:1 0 ee P;P �1.■•fi1 ■ •i i .xhilt i■■"1 •1111.1 O'�6i6666i16 ee' "66 ■i.` ge. 6•:0. 1.1 EgEl Ir ea■.Q�rt°�,7 .•D• 6 ' db.:- . I0 a1 66 d666'166ae i86e6:E J - •..1:•66a...6 ;■11666:6$.1Iz 1.nNE1116u M. annul.: mu saismastii:::: 6 O e"J0 . , After Terror Lake Hydro'is finished, load projections indicate a continued need for diesel generation, both to meet the system peak demand and to make up energy shortfall not available from the Terror Lake watershed. Fuel consumption estimates after Terror Lake Hydro is on line depend on h4r often and for how long diesel generation is required. For purposes of this report, Terror Lake to begin producing power in 1985. This i earliest year the hydro project is likely finished. Later finish dates would incre is assumed s the to be ase fuel consumption and favor any economical advantage that might accrue to constructing bulk fuel storage. The ten year period, 1982 through 1991 is arbitrarily chosen as a reasonable period over which to estimate fuel consumption. Fuel use beyond the ten year period become increasingly unpredictable, and the estimates for this time period should indicate whether construction of bulk fuel storage has a chance to pay off. The estimate of KWH requirements for the next ten years deserves discussion. The projections from the recently completed Long Range Planning Study are significantly steeper than those from KEA's 1980 Power Requirements Study. After reviewing both studies, it is our opinion that the 1.980 PRS is more realistic and takes into account recent downturns in consumer use because of increased cost. Use of the lower estimates from the 1980 PRS also leads to a more conservative answer so far as economics of bulk fuel storage is concerned. The estimated total fuel consumption for the KEA Plant from 1982 through 1991 is over 33 million gallons. The results of estimating generation requirements and fuel consumption are shown in Table 1. D. Generation: Determination of KEA's diesel generation needs depends on estimation of load growth and prediction of when the Terror Lake Hydro project will be completed. Load growth as shown in the 1980 PRS is used as a basis for this study. It is felt that the 1980 PRS properly takes into account recentlanmilies such as slowing or declining of residential consump- tion as a result of higher fuel cost. :The 1980 PRS also takes into account the almost certain -5- YEAR 1979 1980 1981 1982 TABLE 1 PROJECTED DIESEL GENERATION • AND FUEL CONSUMPTION (1) , (2) % PEAK % ENERGY ANNUAL MW HR. GALLONS DEMAND BY HYDRO BY HYDRO MW HR. BY HDD FUEL CONS. 1983-- 1984 TERROR LAKE ON LINE 1985 21.81.7, 87 :-- 93 1986 22.5 84 91 1987 23.7 80 87 1988 24.5 78 84 1989- 25.8 74 .76 1990 26.7 71 69 1991 28.1 68 62 63,240 61,538 76,000 86,000 96,000--- .109,000 112;00.0-- 119,000 123,000 130,000 136,000 142,154 148,588 (1) Assumed peak output of hydro = 19 MW. (2) Assumed production rate = 14 KW hr./gal. Total fuel consumed 1982-1991 = 33,108,656 gallons 63,240. 4,468,785 1,538 4,393,610 6,000 5,429,000 6,000 6,142,857 6,000 6,857,142 109,000 7,785,714 7;840'-' 560;-00.0'''" 10,710 765,000 15,990 1,142,143 0,800 1,485,714 2,640-- 2,331,428 44,067 3,147,700 56,463 4,033,100 transfer of the U.S. Coast Guard loads to the KEA system. The following Figures 3 and 4 show the growth of demand and energy taken from the 1980 PRS, with generation capacities superimposed. If KEA sells the waterfront property, the generators in the old plant should be retired, resulting ina loss of 3200 KW to KEA"S firm capacity. With the completion of construction for Unit 13 (7 MW) and assumed retirement of Units 1 through 5, KEA's installed plant capacity will be 26.2 MW;1 firm capacity will be 19.2 MW. If the new Coalst Guard diesel generator (2.5 MW) and the Coast Guard steam plant (4.2 MW) is included, total firm capacity of the system is actually 25.9 MW, which should be adequate for system demands through 1987. If the Coast Guard should retire the steam plant, firm capacity would be reduced to 21.7 MW, and additional peaking generation may be needed by 1985 or 1986. It is evident that some peaking by diesel, generation will be required from the first year Terrbr Lake Hydro is on line, assuming only two 10 MW turbines are installed. For the purpose of estimating the hours during which peaking from the diesel generation would be needed, it is assumed that a diesel unit would be started and put on line whenever the system load exceeds 19 MW. The duration of diesel generation and the energy supplied by diesel generation was estimated by using characteristic Energy Load Duration curves shown in Figure 5. The estimates thus obtained were used to generate the "MW HR. BY HDD" column of Table 1. The replacement of the F -M generators by (or a single large unit) was considered. costs are difficult to determine with any ew units Salvage accuracy, since everything depends on finding an'interested buyer who is willing to ship the units from Kodiak. Estimates of the value of the units givenlby used equipment dealers ranged from $150,000. to $500,000. Because of the age,of the units and the freight and moving costs facing any buyer, the lower figure is probably more realistic. The price for new 2500 KW units in weatherproof enclosures is between $750,000. and $800,000., F.O.B. the factory. Purchasing and installing three 2500 KW units to replace the four FI -M's would approach $3,000.000. Assuming a salvage -6- • a 4 O_ 3 2.O_ IMPIM,!=11:111• !MI WINIIMI•MIP=IIMI IMO IMMIMM IMMIME 1..111•111 >v_>_.. s,_ _tea=, -tea= �� - IIIIII■� __ ��Msf•0�s MOIMINMEMMMMINMENIM=MMINN � =MM====1.inn l eMMOrooao�Oa =MIMI w�__wEM_____ la___ Minn MMM=UrnMii1=MM=4.1 MMEIMMVIM=IUMMMMMIVIM=MON inniO WNW MMMMMI OMMDIMMI =11=1.111 r -- IMMMOSESm A INIMEIM=MI=IM WIMPMIMENIMIIIE MEM MIMIMil• MEM MEM� -w e r� 1 . 1 S• •Er 1' • MAIMMUMMMUMEN I I I I i 11 1 1 11II (flf 1 I I I Diesel Plant Firm Capacity (Including-USGS)- - 1., • 10 4_ '80 1 1 1 4 • 50 Terror Lake Peak ] 40 Capacity (Ultimate) 1 1# i 1 ;__j 1_1 1 I 1 I• 1 • 1 1 11 , 1174, .. 1 1 1 1 111 1 !I 1 1 1 I I 1 I 1; 1 1 1 l_ 1 1 ' 1 , 1_1, i f1 1 1 1 1I.i 30 20 '�{�1--,---I111111f'I., Terror Lake Peak .. :I Il YI 9 ,1 . Capacity _.(Initial)-_= - '81 '82 '83 '84 '85 '86 '87 '88 YEAR 89 1 I '90 1 10 'g1 4 1 3_ } t 1 I- 2_ 1 1 11 11 11 II 1 I 1 11 1 II i 1_ 1- 1 1�► • 1 1 1 , , I 1 1 1 1 1 1 1 1 1 i9 11 f1 1 1. 1 11 • ;1 1I 1 I 1 , I I I II t : I t 4 r ,1 illi 1-i t# f f 11 J r4 11 i 1 • • • • 1 1 11 1 1 1 1 1 1 I , • I 1 14 1 I. 1 1 II I 1 1 1 1 1 I ' 1 1 11 1 1 11 it 1 11 1 '1 I 1 !1 1 t i 1 1 1 1 111 1 1 1 1 1 1 , 1 1 1 1 1 1 1 4 1 1 1 1 1 , e, 1 11 1 1 1 11 1 1 -111' I 111; • 1 1 1 1 1 1 1 1 • 1 11 14 II _ 1 1 1 111 1 11 11 I I41 4111 111 1111 I ! 1 1 1 1 I 1 1111 1 1 f 11 1 1 1_f 1 1 1 1 } 1 1 (L , 1 1,! . 1 11 11 I 1 1434 1 I I 1] I 1 1 1 1 1I 11 1.1 [It IIII 111 I I I 111 1 11_ 1111 11-11 111141111 MI III 11 III it Ii Ii 4 1'f I I I {- 11 1 Figure 3 Predicted Peak ]errand and Generation Capacities 0 0 r.111 2= 06 Z0 tow 04 )66 Xn obi 41 li Explanation: These curves are used to determine running time and energy delivered by peaking units. Points shown for an example are generated from 1985 predictions. Expected 1985 peak demand is 21.5 NW, of which 19 NW, or 88%, is supplied by hydro. This establishes points "a" and "b" on the load and energy curves. The intersection below point "a" with Percent of Time (point "c") indicates that the peaking generators will run about 4% of the time (8760 x .04 = 350 hrs./yr.) The intersec- tion below point "b" with Percent of Energy (point "d") shows that hydro will supply about 94% of the energy while the peaking inac Ihines will e supply about 6% of the total annual requirements. his processlis repeated for subsequent years to predict usage of the peaking generators. 11 1 i s i 1!1111!1.1 tlti1 L11IT1Ii:!I:: 1 1 1 1 I 11 1 1 1 f I 1 1 1 11 1 1 I i 1 t I i + I l 11 1! I 1.1-1 1 i 1 11" I} 1j I• 1 11 11 t(ilt11 ;11 1 11111 II II 1 l i •1{TI!• 1 !I 11 -t.!1 Ib - Illi 111!, Load- --- t _1 '1 SII 11 1 1 1 1 1 1 1 1 r1 1 1 1 4 r' 1 r 1 r 40 a I -t 11 -1 19 1 111 1 I t 0 11 I F+ 1 1 1 1 1 :; 11 1 1 1 1t :11,0 1 !{ 1 } s ! I s11 • 40 111 60y } 1 1 _ PERCENT OF TIME tlit - PERCENT OF ENI Y 1 1 1 1 1 1 1 1• I 1 1"1 ] F 1 i 1 1 1 4 1 4 1. 4 1 1 1 1!* 1 1 1 111!11: ISA'I•11 �Ilitill i1 t 1111;1.11�1 I ! 1 1 IIF 111 1 1, 1't 1 1 1 I 1,1441111 11 1 1 I l i 1 1 1 1 1 1 1 1, 1 1 1 1 1 1 1 1 Fil En d 80 1 1 1 ri I I 2b 14 1 111 0 { 1 1 1 I :11 1 11 1 1111011.111;11, I i Ir 1;; ,111 11111111111 11 n curves value of $600,000 for the F -M generators,l replace- ment generation would require a capital outlay of well over two million dollars. E. Description of Adjacent Property: The adjacent property under consideration for possible acquisition includes the following lots: On the northeast side of the new generator building: Lot 11A, Block 1 Lot 11B, Block 1 Lot 10, Block 1 6,290 sq. ft. 4,875 sq. ft. 11,179 sq. ft. On the southwest side of the new generator building: ] Lot 17A, Block 1 6,418 sq. ft. Lot 17B, Block 1 6,900 sq. ft. Assessed valuations and appraisals for these parcels are contained in a preliminary report from Warren L. Krotke of Land Field Services, Inc. A copy of the appraisal portion of the report by Alan G. Olson is included in the appendix, of this report. Lots 17A and 17B are now zoned for busineps activity. Lots 11A and 11B are also zoned for business. Lot 10 is zoned for multiple residence use'(RF3). The present use of lot 17A is for storagelof materials; lot 17B is used for residential; lots 11A and 11B are used for residential; and lot 10 does not have improvements. Access to lot 17B is good, but lot 17A is land -locked. Likewipe lot 11A is on Tagura Road, but lot 11B does not have road access. Lot 10 fronts on Mission Road. Lots 17A and 17B appear to offer a suitable building site. With a moderate amount of excavation and other sitework, most of the area of these lots could be used for building at a level even with or above that of the new generator building. Fuel storage on these lots would be severely restricted, however, because the codes dictate clearances that must be maintained. Lots 11A and 11B are moderately sloped up from Tagura Road and both lots are developed with houses. This property would provide a usable building site in either a one level or a two level configuration. Site work for this area would be moderate. Lot 10 is "L" shaped when viewed from -7- Mission Road. The entire lot is quite steep. Very little of the lot is usable from Mission Road because it drops off quickly. The smaller portion adjacent to lot 11B is more suitable for development, but it is land -locked as presently situatled. If all three lots (11A, 11B and 10) can bp considered collectively, the portion of usable area becomes more favorable. The excavation made for !the new generator building could be continued to the northeast taking in portions of lot 10 and lot 11B for one level of a multiple level expansion plan. The rest of lot 11B and all of lot 11A, together with existing KEA property, could be considered for one or more additional development ar,�eas. The unused portion of Lot 10 would remain, as a buffer area to separate the KEA development from the surrounding residential area. Fencing would provide protection and help alleviate trespassing accidents in such a new development. From the appearance of the existing ground surface, it can be estimated that good foundation for structures is available on all the lots being considered. There are varying amounts of weathered rock and other overburden in the area,but existing excavations reveal solid rock underlying much of the site. Any construction program should be preceeded by a thorough soils exploration. F. Sale of KEA's Waterfront Property: Although there have been no recent appraisals of KEA's waterfront property, earlier evaluations indicate that it may be worth between $750,000 and $1,000,000 to a buyer with requirements for docking facilities. On the other hand, KEA's requirements for land area do not include waterfront facilities. Space for generation and other activities could just as well be accomplished on less expensive land at another location. In other words, it is quite likely that KEA could sell the waterfront property, buy land elsewhere, and retain a surplus of income. Sale of the waterfront property will require decisions regarding the old plant, the F -M generators and the warehouse. As mentioned earlier, warehousing for distribution materials is now provided through leased facilities elsewhere. There is no apparent need to replace the storage space lost if the waterfront property is sold. -8- The five generators in the old plant represent a contribution to installed plant capacity of only 3200 KW. As mentioned earlier, these units are maintained in a "moth balled" status and require some preparation before they could be used. All are near the end of the depreciated life. They are physically large and heavy in comparison to their rated output and are installed on concrete bases. Because of their age, small electrical output and the large expense to move and reinstall, these units should be surplused if the waterfront property is sold. There are other utilities in Alaska using nearly identical units whichi may be interested in obtaining these units, either to reinstall or for parts. As an alternative, KEA may wish to sell the plant intact and let the new owner dispose of the generators in anyway he sees fit. In either case, KEA should not expect much return on these units because of the expense to move and reinstall them. The Fairbanks -Morse units are self-contained skid mounted units and are, therefore, much less expensive to move. They are large enough in electrical output to be useful to KEA. They are not, particu- larly satisfactory as base loaded units, but are performing adequately as standby and peaking units. Their fuel efficiency is inferior to the Enterprise units, but this is not a serious defi- ciency so long as operating hours are minimized. As Unit #13 comes on line and, later, Terror Lake Hydro, the F -M's should be called on for only occasional service. If KEA sells the waterfront property, it may consider retaining an easement across the property to give access for a fuel line for barge delivery of fuel. In reviewing this possibility, it has become evident that building a docking facility would be expensive, and the area wouldlbe very difficult to use as a barge landing. A better solution, if barge deliveries are to be considered, would be to extend the 4" buried pipeline now connected to the Chevron tanks westward on Tagura Road to the fuel handling facilities on the ferry dock (see Figure 1). III. ALTERNATIVES: A. No Purchase of Adjacent Property: If KEA sells the waterfront property, it will be faced with the problem of either relocating the F- M generators or replacing them with new units. The existing property north of Tagura Roap does not have enough space available for relocation of the F -M generators. Generation capacity require- ments dictate the continued use of these units or replacement with new generators of like capacity. Relocation of the F -M generators to a new site would require purchase or lease of a lot of at least 1/4 acre or larger, with potential for addition. In addition to relocating the generators, there would be considerable expense in constructing fuel oil storage and a step-up substation of at least 10 MVA. Finally, a remote control system would be required for operation of the generator from the existing control room in the newiplant Fuel storage, substations, and control expenses could be expected to add about $400,000 to the other costs of moving these generators. The greatest disadvantage associated with remote location of the generators would be aggravation of an already difficult maintenance task. To reduce maintenance and increase reliability, KEA could replace the F -M's with new units. However, this alternative could add more than $2,000,000 to the outlay, even with an'estimated $600,000 return for sale of the F -M generators. B. Purchase Lots 17A and 17B: This parcel has not been formally offered for sale, but its usefulness to KEA was investigated as a possible alternative. Although the appraised value of this property is significantly lower than the parcel on the northeast of the power plant, it is severely limited in development possibilities. There is no practical area available for fuel storage within constraints of fire code restrictions. The five F -M's or replacement generators could be located on this parcel. However, they would be so close to remaining residences as to raise,possible objections from these neighbors. Finally, the area on this side of the power plant is und'er consideration by the State of Alaska as an approach -10- for a bridge across the channel to Near Island. For these reasons, this parcel should be dropped from further investigation. C. Purchase Lots 10, 11A and 11B: This parcel of land offers potential of several development possibilities and would permit flexi- bility in meeting KEA's committments for the next several years. Because of the high cost of replacement, it is desirable that KEA retain the F -M generators as peaking units. Relocating these generators to an area near the northeast entrance of the new power plant (see Figure 7.) is an attractive!al'ternative to a location remote from the power plant. This location keeps the generators within convenient access for the operators and maintenance personnel. Fuel could be supplied from the new plant filtering and pumping system. A relatively short underground high voltage cable would reconnect the units to the substation. The F -M generators could be left in their weather- proof enclosures and reinstalled on a concrete pad. As an alternative, KEA may wish to consider constructing a metal building attached to, the new power plant and installing the F -M units inside with their enclosures removed. This would allow maintenance and repairs to be done in any kind of weather. A small overhead crane would greatly enhance overhauls. The area of these lots offers ample room to install bulk fuel storage on the KEA :generating site. As shown below in Section IV, it is possible that any capacity of tankage up to 1,000,000 gallons could be constructed on this parcel. All fire code and regulatory requirements could be met by such a facility. There are several reasons that compel the consideration of this increased fuel storage on the KEA generating site: 1. Any increase in fuel storage helps insulate the operation of the plant from affects of a short term fuel shortage. Average daily use is now about 12,000 gallons; the present storage allows only a little over three days of normal operation without resupply. 2. As an enhancement of reliability, 'additional fuel storage could increase KEA's attractiveness as a source of power to the Coast Guard station and other large power consumers. -11- 3. If large enough, bulk fuel storage could possibly open fuel supply to bids:from suppliers making direct barge deliveries. It is estimated that a savings of about 3 cents per gallon would amortize the capital cost of the storage over the next ten years. Any further savings would accrue to the benefit of the KEA consumers. KEA could also consider use of heavier fuels not normally available in Kodiak,' although it does not appear that these fuels could be presently obtained any cheaper than the grade of fuel now being used. To summarize consideration of this alternative, it is apparent that purchase of these lots could provide KEA with space to improve its existing generating plant while allowing it to sell the waterfront property and realize a capital gain. IV. DEVELOPMENT OF LOTS 10, 11A AND 11B: A. General Comments: Purchase of lots 10, 11A and 11B appears to offer KEA the most economical and practical opportunity for relocating the four F -M generators in preparation for sale of the waterfront property. Relocating the generators onto a concrete slab outside the "new" power plant is estimated to cost $195,000, but this is some $400,000 less than the estimate to motte the generators -to a remote site. Negotiation for acquisition of the lots is justified on these grounds alone. KEA may also wish to consider a steel building for housing the F -M's so that their enclosures can be removed for easier maintenance. This is estimated to cost $385,000. If KEA is successful in its efforts to purchase this property, additional options for development are available and should be investigated. Foremost among these is increased fuel storage,,which was mentioned earlier and discussed in more diepth in this section. B. Installation of Additional Fuel Storage: Several options for additional fuel storage should be explored before proceeding with development plans for the proposed land acquisition. The range of the options considered is from no additional to the largest feasible storage. At this time, there are 40,000 gallons'of storage capacity at the KEA power plant. The two 20,000 gallon tanks can be supplied by either,a pipeline from Chevron Oil or by truck from some other source (Union Oil at present). Daily delivery is needed with the current limited storage capacity in order to keep about two days' fuel reserve. The storage at the supplier's tank farm must be depended upon to provide further reserve. The supplier's equipment for fuel delivery must also be dependable. Fuel consumption records show that nearly 4.5 million gallons of fuel were used for power genera- tion in 1979. During 1980, approximately 4.4 million gallons were consumed for power. Projections of power needs over the next four years, until the Terror Lake project comes on line, indicate a maximum yearly fuel usage of 7.8 million gallons. -13- In order to choose the largest but most economical size of fuel storage, we must consider various factors, including available building space, federal and state regulations, fuel consumption, fuel costs, size of delivery barge and so forth. If we first assume that about two weeks worth of fuel reserve must be maintained in storade for emergencies and that this amount is approximately 300,000 gallons, and if an economical siz barge load of fuel runs about 700,000 gallons, we can start with 1,000,000 gallons of storage for purposes of discussion. A "standard" API 650 tank holding approxiinately 1,000,000 gallons (23,809 Bbls) will be 69 feet in diameter and 48 feet high. Other tank dimensions are possible, such as 70 feet in diameter and 36 feet high, but we run into limitations from other sources. From the contour of the available property, it appears that 48 feet of tank height is,the practical limit in order to avoid objections from adjacent land owners who would lose part of their view from a taller tank. In order to comply with the National Fire Protection Association Code in regard to storage tanks used for No. 2 diesel fuel, the following must be satisfied: 1. Storage tanks must be separated from, adjacent property lines that can be built upon by 100 feet and from any important building on the same site by 35 feet. 2. The distance between tanks must be one-sixth the sum of the diameters of adjacent tanks. The clearances from an adjacent property line or important building may be cut in half if a suitable fire suppression system is installed within the storage tank or tanks. Because the property available for development is limited, even when the proposed land acquisition is made, it is important to. keep the tank diameter to a minimum to be able to provide driveway access to the existing generator building. Another factor that limits the usability of the property is the steepness of the portion near Mission Road. Consideration must also be given to providing sufficient area for spill containment. Both the Federal E.P.A. and Alaska D.E.C. require spill protection and contingency plans for storage facilities of this proposed size. The amount of spill protection necessary consists mainlly of secondary containment for 110% of the volume of the largest storage tank in the installatIlion. It is possible to divide the storage into two or more tanks, thereby reducing the spill containment to one-half or less, but the problems of available area and tank height limitation soon enter into the picture. Two 500,000'gallon capacity storage tanks appear to be the upper size limit for the available area. Examples of possible tan configur- ation for 500,000 gallons capacity are 421.5 feet diameter by 48 feet high and 50 feet diameter by 36 feet high. We have included herein three possible alternatives for storing up to 1,000,000 gallons of fuel. Alternative A (Figure 6) shows a 60 feet diameter tank located on a bench even with the generator building basement. Driveway access to'the generator building is also shown, as well as spill prevention area and an area for relocation of the peaking generators.. Alternative B (Figure 7) shows the same storage tank located at a lower level near Tagura Road and the relocated peaking generators located next to the new generator building. Spill prevention area and driveway access are also shown. Alternative C (Figure 8) includes two 500,000 gallon tanks located near the lower side of the property and the peaking generators located as in B. above. From the examination of these alternative, layouts, it appears that 1,000,000 gallons of storage is about the practical maximum size when considering the available space at the site and the restrictions placed on the installation. It also appears that 1,000,000 storage capacity is about the practical minimum when considering necessary reserve and resupply economics. A further in-depth study of the factors, including bulk fuel prices, would be required to refine this storage capacity figure. Between the above-mentioned extremes of zero and one million gallons of additional storage lie many alternatives. One of these alternatives may be to build additional storage in stages; for example: 500,000 gallons now and 500,000 gallons Jiter. -15- The initial cost would be less, and there would be time to consider future plans while evaluating the effect of having more storage capacity. There is a significant breaking point in storage capacity that should be considered. Although the Environmental Protection Agency requires a spill prevention control and counter-measure plan be implemented for fuel storage down to 1,320 gallons, the State of Alaska does not require a contingency plan or proof of financial responsibility below 10,000 Bbls, or 420,000 gallons of storage. Consideration of any amount of storage in this area should, because of the added costs olf environ- mental protection, be under 420,000 gallons. The construction cost per gallon of storage will increase as the size of storage tank is r1educed. Also, the number of storage tanks is inversely proportional to the construction cost peri gallon of storage. It is, therefore, preferable to keep the size of tank as large as possible and the number of tanks as small as possible. If, however, the funds available for construction are KEA would not have the opportunity to rea possible future savings from owning bulk limited, lize any storage facilities, providing more favorable buying capabilities. The sizing of storage tanks with capacity between zero and 420,000 gallons would depend upon how much reserve is needed for coping with detlivery problems caused by such things as weatheri, strikes or supplier deficiencies. If barge delivery is contemplated, the storage capacity should include both a reserve and a suitable delivery amount. If truck delivery is the method, a reserve should be maintained as well as an amount which allows a convenient delivery schedule. These details will have to be worked out with prospective suppliers. C. Fuel Storage Alternatives: The following drawings show three possible alterna- tives for storing up to 1,000,000 gallons of fuel if the proposed land acquisition is made. Alternative A (Figure 6) contemplates the placement of up to a 60 feet diameter by 48 feet high tank on an excavated bench about 60 feet northeast of the main generator building. The excavation for the tank would extend into the hillside similar to that made for the generator building. The tank bottom would be approximately the same level as the generator building basement. -16- A spill prevention area would surround!the tank and driveway access would be constructed to the door at the generator floor level. Enough space would remain on the property for the placement of generator units #6 through #9 on what is not lot 11A. For the purpose of comparing alternatives for fuel storage, the following preliminary estimate of construction cost for a 1,000,000 gallon storage facility is presented: ITEM COST Excavation and Backfill $ 75,000. Retaining Walls 76,000. Lining, Spill Prevention and Drainage 110,000. Piping and Structural 60,000. Storage Tank 440,090. Tank Fire Protection 55,000. Cathodic Protection 28,000. Fencing, Site Work and Demolition 30,000. TOTAL ESTIMATED CONSTRUCTION COST $865,000. The above estimate does not include fuel transfer facilities from a barge or other transportation. The estimate also does not include engineering costs and the preparation of contingency plan for oil spills. Alternative B (Figure 7) shows the placempnt of up to 1,000,000 gallons of storage at a lower level on the property and the peaking generators (F -M #6 to #9) on a bench constructed'to the northeast of the existing generator building. The driveway access has a different configuration but serves the same purpose as in Alternative A. Spill prevention would be provided by retaining walls and dikes, and would take up a somewhat larger area than in Alternative A. The low tank level in this alternative would require more pumping effort for supplying the generators. The location of units #6 to #9 closer to the generator building would shorten control connections to the main plant. -17- Costwise, Alternative B would not be much different from the first alternative. What would be saved in excavation for the tank would be spent in more spill prevention construction. Other items would not change appreciably. Alternative C (Figure 8) shows a layout using two storage tanks of up to 500,000 gallons capacity on the lower level as in Alternative B. The relocated generators #6 to #9 would be positioned as in Alternative B, above. The driveway access would shift to the northeast side of the property. Spill prevention would encompass both tans, but would be smaller because the volume of only one tank (or the largest tank) would have to be contained. An arrangement such as this would have to be built in two stages in order to preserve the'present oil supply tanks until the first new storage tank would be in operation. There does not,seem to be any other location on the site where two tanks of up to 500,000 capacity could be placed side-by- side, due to clearances and access problems. Smaller tanks could possibly fit into a different plan, but the code restrictions will not allow much deviation from the above alternative. The costs for this alternative, using two 500,000 gallon tanks, would probably run about 10% higher than either Alternative A or B because smaller tanks cost more in relation to their storage capacity. Piping and structures would be more costly as well as the tank shell. There would be a saving in the cost of,spill prevention because less volume is required, but it would be more than offset in the added costs for piping, structures and tank shell area. The following preliminary construction cost estimate is for a 420,000 gallon capacity storage tank located on the lower portion of the site..1 It will give a comparison between a medium size tank and the foregoing 1,000,000 gallon size. ITEM Excavation and Backfill Retaining Walls and Dikes COST $ 16,500. 107,360. Lining, Spill Prevention and Drainage 56,100. -18- ITEM COST Piping and Structural 55,000. Storage Tank 247,170. Tank Fire Protection 44,000. Cathodic Protection 27,500. Fencing, Site Work and Demolition 33,000. TOTAL ESTIMATED CONSTRUCTION COST $586,630. Where the cost per gallon of storage is estimated at $.865 for a one million gallon storage facility, the comparitive amount for a 420,000 gallon storage installation is $1.40 per gallon. This per gallon cost can be expected to increase as the storage capacity decreases because smaller tanks are more costly per gallon to build and the necessary accessories for the storage facility remain a of the cost, no matter what, size is installed. If we were to reduce the size of additional storage to 200,000 gallons, the total estimated construction cost would change to the following: ITEM COST Excavation and Backfill $ 10,000. Retaining Walls and Dikes 50,000. Lining, Spill Prevention and Drainage 35,000. Piping and Structural 45,000. Storage Tank 178,000. Tank Fire Protection 40,000. Cathodic Protection 25,000. Fencing, Site Work and Demolition 30,000. TOTAL ESTIMATED CONSTRUCTION COST $413,000. This estimated cost amounts to $2.065 per, gallon of storage capacity. For a smaller tank, the per gallon cost can be expected to continue to rise. -19- None of the alternatives listed above inc spill clean up equipment, which would be if transfer of oil from a barge would be lude oil required included in the fuel supply system. The production of an operations manual and training of employees would also be a related cost. i If KEA were to have an independent oil supply facility, they would have to run a pipeline to a suitable off-loading point. AT this time, KEA owns a four inch diameter pipeline whichlruns from the Chevron Oil to the 40,000 gallon storage facility at the generating plant. An extension of approximately 600 feet onto this line wound be necessary to reach the City Dock for supply off- loading. A preliminary estimate of such an extension would be about $40,000. The cost of design engineering and construction inspection is not included in the foregoing estimates. D. Regulatory Agencies: The list of governmental regulatory agencies that deal in environmental control is quite, long, and, if combined with the list of agencies that deal with zoning, fire protection, shoreline construction, building inspection and so forth, the task of building a fuel storage facility with such restric- tions looks rather hopeless. Overcoming the regulatory impediments, however, just becomes a matter of time and effort spent in finding out what the rules are and how to comply with them. The three agencies most involved in fuel storage and transfer are the Federal Environmental Protection Agency (EPA), the Alaska Department of Environmental Conservation (DEC), and the U.S. Coast Guard (USCG). All three agencies cover some of the same area and, then, individually cover other areas. For storage of fuel in aboveground tanks,the EPA requires that a Spill Prevention Control and Countermeasure Plan be implemented. This plan involves having a containment area for possible spills or a contingency plan for spills and clean- up The Alaska DEC is charged with the responsibility of controlling hazardous aspects of oil storage and transfer in our state. The Alaska State Code requires that operators having oil storage facilities containing over 10,000 Bbls (420,000 gallons) of oil must prepare and submit a Discharge Contingency -20- Plan and must provide Proof of Financial Responsi- bility. The Proof of Financial Responsibility runs at $10. per barrel of storage for the insurance amount. A 1,000,00 gallon storage facility would require the minimum amount of insurance, or $1,000,000. The USCG has particular jurisdiction over the transfer of fuel from ships to terminal facilities. Their requirements include review of plans, issuance of handling permits, inspection of facilities and the development of a manual for operations of the terminal facilities. All of the foregoing requirements will' cost money. Much of the effort will be in paper work 'such as permit applications. There will have to be training sessions for employees, and there will be recurrent inspections and reports to be made. Insurance of a form suitable to the DEC will have to remain constantly in force. Much of the spill prevention effort will •be included in the original design of facilities, and the extra cost for this is minimal, but the added construction cost is considerable. Spill Contingency Plans can be minimized by good design, but they must still be written and submitted. V. CONCLUSIONS AND RECOMMENDATIONS: A. Purchase of Lots 10, 11A and 11B could; provide satisfactory space for relocation of the F -M generators and allow KEA to prepare the waterfront property for sale. The use of these lots adjacent to the power plant is preferable to relocation of the generators elsewhere and would save about $400,000 that would be required to develop substation, fuel storage, and a remote control systemifor a remote site. B. Considering space, regulations, and the physical properties of the parcel under consideration, it is technically feasible to build bulk fuel storage up to 1,000,000 gallons on the site. C. Construction of large fuel storage facility might allow a savings in the cost of fuel through direct barge deliveries or use of heavy fuel as an alterna- tive to No. 2 diesel. However, there is no way to assure these savings. Construction of any facility with a capacity of 420,000 gallons or more also poses additional problems in complying'with current regulations. D. Additional fuel storage in the range of 100,000 to 200,000 gallons would probably not present any cost saving opportunities but would provide a more comfortable reserve of fuel in case of short term shortages. E. It is recommended that KEA: 1. Proceed with negotiations to purchase lots 10, 11A and 11B. 2. If an agreement is reached to purchase these lots, then proceed with an appraisal and offer the waterfront property for sale. Begin plans for relocating the F -M generators. 3. Continueinvestigation of increased fuel storage as optional development. µ 1 PteA P1� tat' „ I,00a, ttitA wf Iti Ler it • • BY: DATE _313-.51 SUBJECT c1 L_ST"t ze 1 PC Lt ` CHKD. BY DATE MF- CL'GGT21G /\S✓0c., cis- rein 100 CXCA\j (\TIOtJ Fat TA�11�- A1.�0 5 %LL 1712.E VeLITtOEJ Go 0 4 40 1113 SHEET NO. OF JOB NO. 100.5Lf 1)0O01004 ��L STOigAGE TANK Co©' 'AK 4s' iG µ i €x5111 czouNo IZETA1 N t361 t3Att- -� \\Y//�"/,1/Sf/i •:--Yl4Z- om'n/ef\"--C1,4$.1f\","ll'``• i/A-.`YFI�"'r�i�A'� 'D151"AiNi C,E FSM ?-1v .(1 )5 p 20 4o 6o too SGTt-nAzweivkTR IC • 5cALE I" ?_G' AtLreekFST111ErA� .� w-1- 1G\ a.17t 48• pagf to(' 12 APPENDIX Preliminary Appraisal by Alan G. Olson Load Projections, 1980 PRS Gross Production and Fuel Consumption, 1979, 1980 Generator Cost Quotation Cost Estimates ALAN G. OLSON 2701 ASPEN DRIVE, ANCHORAGE, ALASKA 99503 February 10, 1981 Warren L. Krotke Land Field Services, Inc. P.O. Box 10-1705 Anchorage, Alaska 99511 Dear Mr. Krotke: Real Estate Appraiser (907) 243-6609 As you requested in your letter of January 26, 1981, I have made a preliminary study and analysis of five lots in Kodiak which are adjacent on either side of the Kodiak Electric Association, Inc. property along Tagura Road. The purpose of the study is to in- dicate approximate market values of the five lots, as improved, for use with a feasibility study relative to possible expansion by Kodiak Electric Association, Inc. It should be clearly under- stood that this letter constitutes only a preliminary opinion and showild not be construed as an appraisal. Market Value is defined as: .. . . "The highest price estimated •• in terms of money which a property will bring if exposed for sale on the open market allowing a reasonable time to find a buyer who buys with full knowledge of all the uses to which it is adapted and for which it is capable of being used." The study consisted of personal inspection of the five lots on • January 29, 1981 as well as preliminary study of the general area In addition, I have discussed the Subject properties with Mr. Larry Wolf of Kodiak Electric Association, obtained pertinent market data from local realtors and other appraisers who are knowledgeable of property values in Kodiak, reviewed Kodiak Island Borough property files and used information n my files relative to Kodiak values. i With reference to the attached map and photos of the Subject properties, each will be described and analyzed sep!rately as follows: • Southerly Portion of Lot 11, Block 1, Kodiak Townsitie The southerly portion of Lot 11 contains an area of 6,290$U, has 99.63' frontage along Tagura Road and is zoned Business. It is improved with a 1 story, wood -frame, single family residence • containing 672$, built about 1950; and a 1 story, wood -frame rental apartment containing 2880. The site slopes gradually up from near grade along Tagura Road and is accessible from Tagura Road and an existing side street (not dedicated to public use) along the westerly side. The 1980 assessed values for land and buildings are $19,647 and $26,265, respectively, for a total of • $45,912. 1 FULL SERVICE STATEWIDE 1 Warren L. Krotke -2- r February 10, 1981 Research of the real estate market for business zoned properties which can be compared to the southerly portion of Lot 11 revealed a minimum of activity during the immediate past. There have been numerous sales throughout the Kodiak area since 1977 that generally reflect values for business properties ranging between $5/I and $8/1. The most recent sale occurred in early 1980 and involved a 11,082MU lot fronting Tagura Road which was purchased.by Inter- national Seafoods of Alaska, Inc. for a price of $8.14/[. No value was attributed to an old residence located on the site. The grantee purchased the site for parking to comply with City and Borough requirements for their recently developed seafood 1processing facility along. Tagura Road. This sale is considered to represent the upper limit of value in 1980. The southerly portion of Lot 11 is very similar to the $8.14/ sale with respect to potential for development; with an adjustment for size, a value of $10.00/1 is considered reasonable. The existing residence and rental building do not represent the Highest and Best Use of the property, as located and zoned Business; however, they appear to be in good enough condition to be used for rentals for five years, or so, until the property can be normally developed for a business use. Assuming a net rent of $400/mo. for the two buildings, after all expenses are deducted, an interim value of approximately $18,800 is calcullated. The approximate Market Value of the southerly portion of Lot 11 0 is summarized as follows: I Land: 6,290$ @$10.00/1 $62,900 Buildings: 'Interim Value for 5 yrs. 118,800 Total Indicated Value $81,700 4 0 0 The property has been listed for sale in recent months starting no known interest to -date. at $150,000 and reduced to $125,000 with Based on the foregoing analysis, a range of values between $80,000 and $85,000 is considered reasonable. Northerly Portion of Lot 11, Block 1, Kodiak Townsite The northerly portion of Lot 11 contains an area of,4,875$, has approximately 47' frontage along an undedicated, side street on the westerly side and is zoned Business. It is improved with a 12 story, wood -frame, single family residence containing 1,006$ on the main floor and built about 1963-4. The site slopes gradually up from south to north and is easily accessible by the side street a distance of approximately 80' from Tagura Road. The 1980 assessed values for land and building are $15,038 and $19,879, respectively, for a total of $34,917. 1 The site is inferior compared to the southerly portion of Lot 11 for access, but is adjusted up slightly for size and a land value of $8.00/ is considered reasonable, assuming legal access exists • • Warren L. Krotke -3- (--\ February 10, 1981 by prescriptive rights. Similarly, with a net rent of $300/mo. for five years, the residence has an interim value of approximately $14,100. The approximate Market Value of the northerly portion • of Lot 11 is summarized as follows: Land: 4,875$ @$8.00/$ Building: Interim Value for 5 yrs. Total Indicated Value Based on the foregoing analysis, a range and $55,000 is considered reasonable. $39,000 14,100 $53,100 of values between $50,000 40 Lot 10, Block 1, Kodiak Townsite Lot 10 contains an area of 11,179$, has 116.25' frontage along Mission Road, iszoned R-3: Multi -family residential and is vacant. The site slopes steeply down from Mission Road and becomes more gradual sloped at the southerly end near the undedicated street • which connects to Tagura Road- Its 1980 assessed value is $20,188. Compared to the two portions of Lot 11 previously analyzed, Lot 10 is inferior for access, physical characteristics an potential for development as anR-3 zoned lot. The most recent sale of a vacant R-3 zoned lot in the downtown area was Lot 29, Block 3, • Erskine Subdivision (5,498$) at a price of $3.91/$ in early 1980. Except for a mistake in quoting the price, this lot would have sold for a price of $4.55/$. It is superior compared to the Subject, Lot 10. • • The approximate Market Value of Lot 10 is estimated, $3.50/$ and $4.00/$, as follows: to range between 11,179$ @$3.50/J $39,126 11,179$ @$4.00/$ (rounded) (rounded) $40, 000 $44,716 $45,000 Lot 17B, Block 1, Kodiak Townsite Lot 17B contains an area of 6,900$, has 116.45' frontage on an unnamed street connecting between Tagura Road and Mission Road and is zoned Business. It is improved with two sma]11, single family residences. The main residence is a Pi story, wood -frame • building, containing a main floor area of 600$, built about 1950 and is generally in poor condition overall. The second building appears to be approximately 20' x 20' (400$) and is probably used as a rental. Its age and condition are similar. The 1980 assessed values for land and bldgs. are $21,321 and $8,652, respectively, for a total of $29,973. 0 Warren L. Krotke -4- ( ", February 10, 1981 Lot 17B is compared with previously analyzed Lot 11 (southerly portion) and is generally inferior for access, location and potential for development. Compared to the northerly portion of Lot 11, Lot 17B is superior for frontage along a dedicated' street and adjusted for size. A land value for Lot 17B of approximately $7.00/$ is considered reasonable. On the basis that the existing buildings could rent on an interim basis for a combined net rental of $250/mo. for the next five years, or so, until the property would normally be developed for business use, a value of $11,800 is projected. The approximate Market Value of Lot 17B is summarized as follows: Land: 6,900$ @$7.00/[' Buildings: Interim Value for 5 yrs. Total Indicated Value $48,300 11,800 $60,100 Based on the foregoing analysis, a range of values between $60,000 and $65,000 is considered reasonable. Lot 17A, Block 1, Kodiak Townsite Lot 17A contains an area of 6,418$, appears to be land -locked, is zoned Business and is vacant. The site is partially gradual and partially steeply sloped up to the north towards Mission Road. 41 It is separated from Mission Road by Lot 12, which is approximately 30' wide; and it is also separated from the street connecting Tagura Road with Mission Road by Lots 20 and 17B, a distance of approximately 25 feet. Its 1980 assessed value is $19,879. Compared to Lot 17B, which is adjacent to the south, Lot 17A is 4 inferior for access, physical characteristics and potential for development. With a substantial minus adjustment for lack of legal access, an .approximate Market .Value ranging between $3.50/EU and $4.00/ is estimated, as follows: 0 6,418$ @$3.50/$ 6,418$ @$4.00/$ (rounded) (rounded) 22,463 $22,500 $25,672 $26,000 Warren L. Krotke -5- ( February 10, 1981 ' • Summary of Analyses None of the five lots included in this preliminary :study and analysis are presently developed to their highest and best (most profitable) use, as zoned and located close to the center of down- town Kodiak. Several reasons may explain this situation, such as lack of demand for additional business development at this time until the downtown area becomes more intensely developed and close proximity to the Kodiak Electric Association electric generating facility and its constant noise. These are both considered temporary reasons, however, as this area of Kodiak, along Tagura Road, is experiencing industrial and some'business expansion during recent years. Since the stated purpose of this preliminary study and analysis • is to supply valuation information for a feasibility study relative to possible expansion of the Kodiak Electric Association facility, it is recommended that the higher end of the ranges: of indicated values be considered. By doing so, the values will, be more meaningful if the study extends for any period of time during which values would normally increase. • As previously emphasized, this letter is a preliminary study and analysis only. If a complete appraisal is to be required, it is anticipated •that the final estimates of Market Values for the five lots would closely approximate the value ranges indicated at this time. If you have any questions regarding this letter, !p1 me. Sincerely, • --'il - C/ ‘i Alan G. Olson Real Estate Appraiser AGO:ko Attachments: Property Map Subject Photos ase contact SUBJECT PHOTOS January 29, 1981 Main residence on southerly portion o Lot 11, Block 1, Kodiak Townsite Rental unit on southerly portion of Lot 11, Block 1, Kodiak Townsite SUBJECT PHOTOS January 29, 1981 Residence on northerly portion of Lot 11, Block 1, Kodiak Townsite Lot 10, Block 1, Kodiak Townsite SUBJECT PHOTOS January 29, 1981 Two residences on Lot 17B, Block 1, Kodiak Townsite Lot 17A (vacant area), Block 1, Kodiak Townsite_ APPRAISER'S QUALIFICATIONS ALAN G. OLSON EDUCATION B.S. Degree, Michigan College of Mining & Technology, 1959 AIREA Course I, Appraisal Principles, University of. Chicago, 1969 AIREA Course II, Income Properties, Seattle PacificlUniversity, 1971 AIREA Course IV, Condemnation, University of Alaska1971 AIREA Course VIII, Residential Properties, Alaska bilthodist Univ., 1970 SREA Course 101, Appraisal Principles, Reciprocal Credit Received, 1972 SREA Course 201, Income Properties, Anchorage, Alaska, 1973 SREA Course 301, Investment Analysis, Makaha, Hawaii, 1976 Principles of Regional Planning, University of Wisc9nsin, 1973 BUSINESS EXPERIENCE State of Alaska, Department of Highways, Right of Way Agent, 1960-1966 State of Alaska, Division of Lands, Staff Appraiser, 1967-1969 State of Alaska, Division of Lands, Review and Supervising Appraiser, 1970 -May 1974 go State of Alaska, Division of Lands, Chief, Planning and Classification, May 1974 -April 1975 Follett & Associates, Real Estate Appraisers and Consultants, Associate, May 1975 -July 1978 Alan G. Olson, Real Estate Appraiser, May 1972 -Present 1 e TYPICAL CLIENTELE State of Alaska Div. of Lands Div. of Parks Div. of Aviation Div. of Veteran's Affairs Div. of Economic Development U.S. Government Veteran's Administration Bureau of Indian Affairs Corps of Engineers Bureau of Land Management Municipality of Anchorage University of Alaska Kodiak Island Borough Ahtna, Inc. Aleut Corp. Queen Fisheries Pan -Alaska Fisheries, Inc. PROFESSIONAL AFFILIATION 1st National Bank of Anchorage National Bank of Alaska Alaska Bank of Commerce Alaska National Bank of the North Alaska Mutual Savings Bank Arctic First Federal Savings & Loan Alaska USA Federal Credit Union Coast Mortgage Co. (Rainier) Real Estate Services Corporation Charles R. Tunley, Attorney Janigo Construction Co. Dittbrender Construction Co. S. R. Hansen Construction Co. Robert 0. Denny Lewis E. Dickinson William P. Fell,, DDS James R. Scott, DVM Spenard Builders Supply American Institute of Real Estate Appraisers - Candidate for MAI Kodiak Area r'ORM APPROVED OMB NO. 40-R3881 USDA - REA • SUMMARY OF CONSUMERS AHD kwh ESTIMATES SYSTEM DESk TION Alaska 3 Kodiak NAME OF SYSTEM Kodiak Electric, Association, Inc. DATE October 10, 1980 CLASS OF CONSUMER NO. OF CONSUMERS kwh ESTIMATES* 19' .84 19 89 1984 1989 1. RURAL RESIDENTIAL 2,900 3,600 560 650 2. SEASONAL (Ann.) ( months) • • 3. TOWN RESIDENTIAL . . 4. IRRIGATION (Ann.)hp.) . . , . 5. SECURITY LIGHTS (Ann.) , . 6. SMALL COMMERCIAL 865 1,030 1,250 .d° 1.,240 7. PUBLIC STREET & HIGHWAY LIGHTING (Ann.) ' 2 2 434,348 -456,065 EL PUBLIC BUILDINGS , 9. OIL WELLS (Ann.) ( hp.) . 10. BORROWER'S OWN USE (NON -REVENUE PRODUCING) (Ann.) (1) (1) 66,382 69,701 11. LARGE COMMERCIAL (Ann.) (Under 350 kw 48 63 402,35 . 422,872 TOTAL POWER REQUIREMENTS ITEM . 19 /9 19 84 19 Ril iv ANNuAL kwh REQUIREMENTS 60,300,000 , 109000,000 136,000,000 • 1 -13. INCLUDING LOSSES@ 7.3 % 6.1 % 61 14. ANNUAL LOAD FACTOR (Based on non -coincident monthly system peek demand) 60.9 % 60.4 % 60.4% 15. NON -COINCIDENT MONTHLY SYSTEM PEAK DEMAND Om) 11,300 ' 20600- 25,700 16. SOURCE(S) OF SUPPLY Self Genaratinn *REVISION OF kwh ESTIMATES DATED May 1977 -- . . . ESTABLISHED BY Edwin K. Kozak, Staff Engineer REVIEWED BY David S. Nease, General Manager orm 41 7-73 10. 9. 8 7 6._ 5._ 4 3__ 200 100 90 8 70 60 50 40 30 20 30 0111111 11111 10 1 SEMI -LOGARITHMIC 2 CYCLES X 200 DIVISIONS KEUFFEL F ESSEO CO. “.o( 11 U'IA • 46 5250 1 II 0 Mil PORI 1111ifil Hu pop �oI��I� I A� III�RIom IIMil ll 1111111 BIM' iir ' Iwie �P�E�I ImI�N u ll�iNlE!!�11111111111111111111Ic11111111 01111:11101111 00HH100100II1101111I 1111111 0 1111111111111610 II II 1.1110111110111 l' 1011111 Il111111 II" �!'ni�ii� � �°1nm11:�i 11� �I�� iu air womillopoloommillmoom Ri�'� N� 11; I li o ou.0.: I11111110111111111111111111011111N 1� ` 11111 11111111 INNIMI 11011111111111 iio I 11.........Hill _�u�I e 1I H mi k. III II J. LL 1 1 11 B�� 1 1.� L 1! 11_ Villa., i1,�; 1.,. �1 1 1.►. I ! III;I 1111 ; 11.! o111111 0 1 II .lil 'I 11 111, ; II 11� 1, iill� 1, 1111 6 5 3 _ 2' --.1( .9 a 3 GROSS PRODUCTION 1979-1980 (WH) 40 (45//t -t. 1979 MKW ,FUEL JAN 4996.8:. FEB 5024.5 MARCH 5936.3 APRIL 4768.2: MAY MAY 4780.8 JUNE 5073.6 JULY 5865.6 AUG 5421.6 SEPT 5128.0 OCT• 5692.9 NOV 4936.8 DEC 5615.0 437_4ad0 19C:.) JAN 5430.8 FEB 4989.6 MARCH 5056.8 APRIL 4562.4 MAY 4728.0 JUNE 4094.4 JULY 5486.4 AUG 5966.4 SEPT 4982.4 OCT 5942.4 NOV 5210.4 DEC 5088.0 (011535 -4) 353928 360181- - 442240 3420:63:: 339415 362662 420195 385669 363681 398493 34375 357183 4,44b7o9' 20 JAN 1981 _ 380523 348292 355908 328277 338376 294099 392877 427368 366803 432020 367204 " 361863 4 /5 3,60 611'45' A(4 I KO 6/9r. CREATORS OF ELECTRICAL POWER SUPPLY SYSTEMS POWER SYSTEMS A MORRISON-KNUDSEN DIVISION 101 GELO ROAD / POST OFFICE BOX 1928 ROCKY MOUNT: NORTH CAROLINA 27801 PHONE (919) 977-2720 / TWX: (510) 929-0725 February 19, 1981 Crews, Macinnes & Hoffman 3812 Spenard Road Anchorage, Alaska 99503 AITLNTION: JERRY JOBST Reference: Your Phone Request Our Proposal No. 06881 Gentlemen: Please find enclosed our proposal as you requested for,two (2) housed units rated 2500 KW continuous, 2750 KW for standby, not to exceed 2000 hours per year. The price quoted is for budget purposes and for shipment in 1981. We have enclosed a technical specification for your reviewand would be pleased to discuss your requirements with you at any time. Should you need the equipment sooner than the thiry-two weeks quoted, we do have two (2) EMD units in stock which could be made'up into the housed configuration outlined in our proposal within ten (10) weeks, and at some cost saving. These units are subject to pTior sale. If you have an interest in these units, please advise and.we will revise our price accordingly. Thank you for this opportunity to work with you. We look your comments. Very truly yours, POWER SYSTEMS, A MORRISON-KNUDSEN DIVISION on A. Sharpe Domestic Sales Manager MAS:jsw Enclosures forward to 1 1 1 1 • • POWER SYSTEMS A MORRISON-KNUDSEN DIVISION 1. PRICE PhvrOSAL' NO. 06881 DATE ,February 19, 1981 PAGE NO 1 of 4 PRICE DELIVERY AND TERMS For one (1) master Diesel Electric Package, similar to an EMD MPA45 and one (1) MPB45 as described in the attached' specification. $1,596,760.00 2. DELIVERY POINT AND TERMS F.O.B. ROCKY MOUNT, N.C. 3. SHIPPING SCHEDULE APPROXIMATELY 230 DAYS. AFTER RECEIPT OF AN ORDER AND COMPLETE INFORMATION. 4. TERMS OF PAYMENT 90% - on receipt of equipment at F.O.B. point. 100% - on completion of field test but not to exceed 60!days after arrival 1 I Mo' _ti t _ e it.G SwF 64Lk .- 1 1 1 1 i. l I f s./ 6G% QST f �I d . OG, ,p I t I i ` j O 1 i �� �:,, .M. O N- i ' -'-ty , 1 }I i i � 1 i i ; i S I i �} y VQLj� i �, �' 1 PAA1(2" VRA �'�_r�M1,��� �.�be�Y�W1d^!�".'M!.-'-- i � 1 Goo 1 i it -! — + I j ,r y 4 I 1 ! 4 i t I t . ! 1 i 1 I i 't` -4c. I Sid G)t S 1 n C' 7 �Ci e,3/ k 1 . i! 1! 1 1 I ! l 1 ! i I , k i a i CREWS MAC INNES & HOFFMAN CONSULTING ENGINEERS ANCHORAGE ALASKA JOB TITLE Kg J►Aia( R-u'6CASt'. £ o /Ode SUBJECT I6S4- tsc i'tilla �.. BY?,✓p �- CHECKED DATE ////SHEET / OF 1 1 1 4 j. .� 711 j 1 i } 1 1 j ! I ( I ! i I i 1 1 1 i t t 1 t i 1 1 t 1 1 t 1 , i 1 ( i f i I } t! t + € � _� I 1 1 I 1 I i I i' I ! I i t ` t 4 I f ; 1 1 1 I 1 + I i I t t 1 t , 1 (! 1 E 1 1 t ' }} ! ` 1 7 1 t .. i } 1 1 3 I I 1 i i '. , i ! t I t i 1 I ! i [ ; 1 i f j i ft 1 € 1 i_ 1 r i I i I I I 1 I f t t i 1 I �' t 1 ; 1 3 1 i 1 i i t s t _ t i f 1 CREWS MAC 1NNES & HOFFMAN CONSULTING ENGINEERS ANCHORAGE ALASKA. JOB TITLE /6014 ePA Je �A.Skr ND / SUBJECT [.-05 "K. BY A CHECKED DAT HEFT Z OF - _ A_eQtij 3/LiIg) i:ao P m k . 'KODIAK;`'i4 ASKANA6��5y� ; e br u a y Kodiak Island Borough Planning and Zoning Commission P.O. Box 2146 Kodiak, Alaska 99615 Gentlemen: Re: Proposed Power Plant Expansion Kodiak Electric Association, Inc. has undertaken a feasibility study with regard to a proposed expansion of the main power plant facilities in Kodiak. The study is expected to recommend consolidation of KEA's generating facilities to the north side of Tagura Road. KEA's property on the south side of Tagura Road could then be sold. The study will also recommend increased fuel storage capacity which would allow KEA to more advantageously purchase and store fuel. The proposed expansion will necessitate the acquisition of, three parcels of private property which comprise all of Lots 10 and 11 of Block 1, Kodiak Townsite. Kodiak Electric Association, Inc. has commenced negotiations leading toward acquisition of these .parcels. We expect com— pletion of these purchases within the next few months. It is our understanding that the subject parcels are presently zoned for business and residential purposes. It is our further understanding that pursuant to Chapter 17.30.040 entitled, Publicly Owned Buildings and Property, Utility Companies such as Kodiak Electric Aissociation, Inc. are exempt from having to conform to zoning requirements. In order for Kodiak Electric Association, Inc. to proceed with its plans, we request that the Kodiak Island Borough provide us with the appropriate authorization, or expression of non—objection, to such expansion. DSN/lap cc: Mr. Richard Rohrer Mr. Robert King Mr. Warren Krotke Very truly yours, David S. Nease, Jr. General Manager |' KEA SPECIAL BOARD MEETING I. Call Meeting to Order A. Roll Call March 27, I981 11:30 AM KEA Auditorium II. Presentation of the Feasibility of Land Acquisition and Land Use (John Howell) III. Report on Negotiations with Property Owners (Warren Krotke) IV. Resolution Approving the Long -Range Plan V. Approval to Conclude Negotiations and enter into an Earnest Agreement VI. Other Business as May Come Before the Board VII. Adjournment :1 KODIAK ISLAND BOROUGH MEMORANDUM TO: Will Walton, Planning Director FROM: Bill Hodgins, Zoning Official DATE: March 27, 1981 RE: KEA's Proposed Fuel Oil Storage Facility and Generatorre-location Having attended KEA's Special Board Meeting held today it has be- come apparent that: (1) The ability of KEA to purchase the lot(s) owned by Mr.King has been stalled due to the high asking price of Mr. King. Also the KEA Board expressed reservations in wanting to obtain this piece of property! in the first place. (2) The Board also expressed strong reservations about vacating the waterfront property, this decision was due tolithe fact thatthe value of this property has greatly increased in the last few years. Both of the above mentioned items have been tabled by KEA's Board of Directors, this tabling action also includes any further attempts to purchase the other lots involved in the original proposal. I spoke with Mr. David Nease on this action by the Board and he requested that KEA's appearance before the Planning and Zoning ComMission on the 15th of April be withdrawn. cc: Gary Smith, Acting Borough Manager David Nease, General Matmager of KEA Planning and Zoning Commissioners City of Kodiak Engineering Department KODIAK ISLAND BOROUC Box 1246 Kodiak, Alaska 99615 FIRST CLASS MAIL NOTICE OF PUBLIC HEARING The Kodiak Island Borough Planning and Zoning Commission has received a petition from requesting KEA proposed relocatioh of 4 generators'and.the construction of a 1,000,000 gallon fuel tank on lots 10, 11A, & 11B, block 1, Kodiak Townsite and z portion of USS 1995. The Kodiak Island Borough Planning and Zoning Commission will hold a Public Hearing on this matter at 7:30 pm, Wednesday, April 15,.1.981 in the Borough Assembly Chambers, 700 Upper Mill Bay Road, Kodiak. You are being notified because you are either the property.owner of the above -referenced lots, or an owner of property within 300 feet of the above -referenced property. This will be the only Public Hearing before the Planning and Zoning Commission -on this petition, and you are invited to appear and voice your opinion. If you cannot attend, you may submit a written opinion that can be read into the minutes of the. Public Hearing. If you would like to comment on the petition proposal, :this form may be used for your convenience, and returned to the Planning Department. ) Further information is available from the Planning Department, telephone 486-5736. KODIAK ISLAND BOROUGH Department of Planning and Community Development Name Address Legal Description Comments _-ry ° G ° oa 4 a v i O 4 Q T O :I* • :::� • r. :} 4 2 4�,��41 1::: ' ,.._ 4_ 4 4. 4._ V Q sspN°' n • Amur lit 4.- b1141141114111..1.111.11:971i 1111.111.1110.1111M ill ,47:3407 ejSs 41111;11r1,:e11119406.1w Tr 4 ..:lp USS 5.E ,;-e s.Tr _ -- OWNSIT 4 44 _ � �4 4# 4 44 4 4 44 4 44.4'4444 4. 4 4 /4 4 4 4 4 -\44 4•. ',�4 4 4: A# . �4 # 4 4+�-�.- �+� #� 4##4 4 �{ 44\4 4 .4 4 44 ##� #### �[ �#� #�?�# #� 4 4#�4# #4#4\ t. 4.4 4 # #� 4 4 �4 # 44#4 # 4 #4 # # 04r 4 64 -R 4 ,� -r # # #� 4 # 4 4 4,� 7 - - # # 'b 7 444 �4 #�' 4�04ltr ���'`��#cg 44'#4 ### it 4 4-4 4444444fr 444c#,tet ,� # 4,� :.••NOr11 �. 4 �, 4 4 41 4 4 # #' # 4 4` � r4 � # 1 oR i., 4 4 4' 4 4/44, 4#4 4 4,4 4 ; _41 A: r 2 133 4 )01,0 (4(.1 IOW 11106 te N. D ■ _4 OLSEN,PETER & NINAR1340010171 P.O. BOX 485 KODIAK AK 99615 R13400i0111 KING,ROBERT & ELEANOR P.O. BOX 1434 KODIAK AK 99615 6 NV NVIOON EAU, XOR`O`J `JOS%V 3I813313 NVIcrO>| 0600R:001;2JM URSIN,MORMN P.O. BOX 492 KODIAK Rli00000110 AK 99615 R1100000120 URSIN %EAODS,INC~ P.O. BOX 492 KODIAK \ AK 99615 . \ R1100000330 INTERNAT. SEAFOODS OF AK P.O.BnX 290 KODIAK : AK 99615 R134001005A. MULLER,WA T & MILDRED • P.O. BOX 313 KODIAK \ AK 99615 BRECHAN,FRED C. P.O. BOX 1275 KODIAK R1120300150 ` AK 99615 R1120300160 IANI,LOUIS & FRANCES P.O. BOX 177 KODIAK AK 99615 Qii20300170 IANI,LOUIS & FRANCES P.O. BOX 177 KODIAK AK 99615 R1442000001 ALAJKA,STATE OF BUREAU OF LAND MANAGEMENT JUNEAU AK 00000 SHUREVLOFF,NICK P.O. BOX 222 KODIAK SHURAULOFF'WICK P.O. BOX 222 KODIAK Rl340010020 AK 99615 Rt340010030 AK 99615 R1340010040 INT'L. SEAFOODS OF AK.INC P.O.BOX 2997 KODIAK AK 99615 HALL, HELEN F. P^O^ BOX 43 KODIAK HALL, HELEN F. P.O. BOX 43 KODIAK� R1120300080' AK 99615 Rii20300090 AK 99615 Rii20300100 HALL, HELEN & ANNE P.O. BOX 43 KODIAK . AK 99615 R1120300110 SIMJ,RTCHARD H & BEVERLY P.O. QOX705 KODIAK I ! ' AK 99615 Bi120300120 EIMS,RICH RD H & BEVERLY P.O. BOX 2705 KODIAK | AK 99615 R1i20300130 EG8EMEY R,JAMES & MARLYS3 P.O. BOX 965 KODIAK . AK 99615 / Rii20300140 EGGEMEYER MES & MARLYSS P.O. BO 5 KODIAK. ! AK 99615 ` -� | -~� `\ > / � . Ri340010112 R1340010050 | ROHRER,RICHARD A.&SUSAN I ` MULLER,WA T & MILDRED GUGEL,GERALD S,JR.&KRISTI P.O. BOX 13 P.O.BOX 2219 KODIAK ' | AK 99615 KODIAK AK 99615 1 R1340010121^ KODIAK ELECTRIC ASSOC. P.O. BOX 787 KODIAK AK 99615 NACHTWEIH,B.E. P.O. BOX 1247 KODIAK R1340010122 AK 99615 ) ] R1340010060. JENSEN,JOSEPH & MARY JEAN P.O. BOX 495 KODIAK AK 99615 R1340010070 WHITNEyF ALGO SEAFOODS / 2360 WEST COMMODORE WAY SEATTLE ' WA 98199 )i ) ) / ' � | Ri3���l0i�1 . . R134OO i0080 )/ODIAK ELECTRIC ASSOC.A��OC WHITNEY FI ALGO SEAFOODS i P.Q. BOX 787 2360 W COMMODORE WAY !. KODIAK AK 99615 SEATTLE! WA 98199 . )| ` ) R1340010140 ' Rl3400i0091 KODIAK ELECTRIC ASSOC , METROKIN,E I & L[NA P.O. BOX 787 P.Q. BOX 5i12 KODIAK AK 99615 KODIAK AK 99615 R1.340010i50 KODIAK ELECTRIC ASSOC P.O. BOX 787 KODIAK AK 99615 R1340010160 KODIAK ELECTRIC ASSOC P.Q. BOX 787 KODIAK AK 99615 } R1340010092 JEMSEN,JO% PH 6 MARY P.O. BOX 495 KODIAK AK 99615 R1340010100 | K%NG'ROBERT! & ELEANOR P.O. BOX'i434 / KODIAK . � AK 99615 ) ) ) } R1340020100 KODIAK ELECTRIC ASSOC. P.O. BOX 787 KODIAK AK 9961.5 R1340020110 KODIAK ELECTRIC ASSOC. P.O. BOX 787 KODIAK AK 99615 R1340020130 INTERNATL SEAFOODS OF AK P.O. BOX 2995 KODIAK AK 9961.5 R1340020131 JEN%EN,JO%EPH & MARY J. JP.8. BOX 495 KODIAK AK 99615 KING CRAB,INC. P.O. BOX 1457 KODIAK Rti00000080 AK 99615 Rt108000350 MULLER,WALTER & M%LDRED P.O. BOX 313 KODIAK AK 99615 Rii00000360 WHITNEY -FIDALGO SEAFOODS P.O. BOX 1425 KODIAK AK 99615 } } ) . R1340010172 OLSEN,PETGR & NINA P.O.• BOX 485 KODIAK : � AK 99615 | R1340010181 FERRIS,PH IP E.&EDNA J. P.O. BOX 331 KODIAK ' AK 99615 3400iO211' ZHAROLL,FRED & ALE�� � KODIAK ' AK 99615 1 R1340010212 ZHAROFF,FRED F.&YVONNE F P.O. BOX 445 KODIAK : ! AK 99615 \ R13400i0280 KODIAK,CITy OF P.O. BOX 1397 KODIAK. | AK 99615 R1438010020 KODIAK ELECTRIC ASSOC. P.O. BOX 787 KODIAK � i AK 99615 | Ri340020080 KODIAK ELECTRIC ASSOC. P.O. BOX 787 KODIAK 1 AK 99615 . . . ---. UtS a 538 8 &ply Cltr__\61\_*-Con _ aoc)(Do - ID IR- \10,(3e)6ioc, ,7 - \*\ le‘t.loSoollo •-'-' 12- iK1.1 R (.. 3 oc..> I Z 112,t1 RcD '3 (.3o 1.3 _ 0 , \S R._.1 t a o3c.Dc_ 2 .& ‚\ a. C) C:.: i S-0 , . N1 -06 S L75,38 A o_ooi ... -?).t.. .o.o . 'k<ucct,...\:_, ----70 L,,-,rs R 1 3 Li oc) oo • s LI t. o i °Dap / * - . R I 3 q Do to(DS-D 7 R 1 Sc-4DL) ) oc li)C. ! . 3 7/-3'7/00/ c3oeo _ / ,K,L. 3,1cpc. 7009 a — Ri 3,-10c., 7 0 / 6.(... 1 LA fz, 1 3460 lo (1 . . AA .R, 1 3q)oi 0 / 1 . - \ R. i 3(-1 oo i 0 i / ,! iza �d,w.lL l ovz).0S t 1to, 11A- (71 "1 \ 3vo/©all k2._3,,c7U I (Da_ I 2 R. )3 voloso 9 rc (t ttSS 1993 1_oo 0 ' 1 t4- g-/ioc)oocc8b / tbO00036b It'of�' ',n, /ove( 193 e-cedgeov-- .9/,3 Le u)G2,Li- z /V 0.5" -12-.1 l oc o oo a1r,o,�--- ..1100OW 2‘l0000bizo �. - - NI -11 stis95:i KODIAK TIDELANDS "SURVEY 'TRACT IV As,ATS 1AIT 5-C sof' ‘-kP NODIAK ELECTRIC ASSOCIATION INC PROAERri MAP 3/4/g) 7:3o P m ",,... ,M w_. - ' KODIAK; j'AtASK*.99M5 N • ..: r ii ar y� 26, ' ~i981 Kodiak Island Borough Planning and Zoning Commission P.O. Box 2146 Kodiak, Alaska 99615 Gentlemen: Re: Proposed Power Plant Expansion Kodiak Electric Association, Inc. has undertaken a feasibility study with regard to a proposed expansion of the main power plant facilities in Kodiak. The study is expected to recommend consolidation of KEA's generating facilities to the north side of Tagura Road. KEA's property on the south side of Tagura Road could then be sold. The study will also recommend increased fuel storage capacity which would allow KEA to more advantageously purchase and store fuel. The proposed expansion will necessitate the acquisition of three parcels of private property which comprise all of Lots 10 and 11 of Block 1, Kodiak Townsite. Kodiak Electric Association, Inc. has commenced negotiations leading toward acquisition of these .parcels. We expect com— pletion of these purchases within the next few months. It is our understanding that the subject parcels are presently zoned for business and residential purposes. It is our further'iunderstanding that pursuant to Chapter 17.30.040 entitled, Publicly Owned Buildings and Property, Utility Companies such as Kodiak Electric Association, Inc. are exempt from having to conform to zoning requirements. In order for Kodiak Electric Association, Inc. to proceed with its plans, we request that the Kodiak Island Borough provide us with the appropriate authorization, or expression of non—objection,, to such expansion. Very truly yours, David S. Nease, Jr. General Manager DSN/lap cc: Mr. Richard Rohrer Mr. Robert King Mr. Warren Krotke March 27, 1981 ll:30 AM KEA Auditorium KEA SPECIAL BOARD MEETING I. Call Meeting to Order A. Roll Call II. Presentation of the Feasibility of Land Acquisition and Land Use (John Howell) III. Report on Negotiations with Property Owners (Warren Krotke) IV. Resolution Approving the Long—Range Plan V. Approval to Conclude Negotiations and enter into an Earnest Agreement VI. Other Business as May Come Before the Board VII. Adjournment / KODIAK ISLAND BOROUGH MEMORANDUM TO: Will Walton, Planning Director FROM: Bill Hodgins, Zoning Official DATE: March 27, 1981 RE: KEA's Proposed Fuel Oil Storage Facility and Generator re -location Having attended KEA's Special Board Meeting held today it has be- come apparent that: (1) The ability of KEA to purchase the lot(s) owned by Mr.King has been stalled due to the high asking price of Mr. King. Also the KEA Board expressed reservations in wanting to obtain this piece of property in the first place. (2) The Board also expressed strong reservations about vacating the waterfront property, this decision was due tufithe fact that the value of this property has greatly increased in the last few years., Both of the above mentioned items have been tabled by KEA's Board of Directors, this tabling action also includes any further attempts to purchase the other lots involved in the original proposal. I spoke with Mr. David Nease on this action by the Board and he requested that KEA's appearance before the Planning and Zoning Commission on the 15th of April be withdrawn. cc: Gary Smith, Acting Borough Manager David Nease, General Manager of KEA Planning and Zoning Commissioners City of Kodiak Engineering Department KODIAK ISLAND BOROUC Box 1246 Kodiak, Alaska 99615 FIRST CLASS MAIL NOTICE OF PUBLIC HEAR NG The Kodiak Island Borough Planning and Zoning Commission has received a petition from requesting KEA proposed relocation of 4 generators'ancLthe constructionrof a 1,000,000 gallon fuel tank on lots 10, 11A, & 11B, block 1, Kodiak Townsite and,a portion of USS 1995. The Kodiak Island Borough Planning and Zoning Commission will hold a Public Hearing on this matter at 7:30 pm, Wednesday, April 15,1981 in the Borough Assembly Chambers, 700 Upper Mill Bay Road, Kodiak. You are being notified because you are either the property.owner of the above -referenced lots, or an owner of property within 300 feet of the above -referenced property. This will be the only Public Hearing before the Planning and Zoning Commission on this petition, and you are invited to appear and voice your opinion. If you cannot attend, you may submit a written opinion that can be read into the minutes of the Public Hearing. If you would like to comment on the petition proposal, this form may be used for your convenience, and returned to the Planning Department. Further information is available from the Planning Department, telephone 486-5736. KODIAK ISLAND BOROUGH Department of Planning and Community Development Name Address Legal Description Comments b b �F a D 0 4 b 4< U..�:�.�..... :t.. 1 D ::• •t:: ,.. • • 4 4 4 44 4 4444.4 444 44 4 44!4 44 4 -444444,144444'\44^44 #-_'�#�.�4�4 4 4414y�44 4 4 • 4 o. 4 4 4 4 4 4 4 4 4 4 4 `T'� ! # ! ! 4 4 4 ! 1, 44 4 4 4!� # 44 4 44A,, +� 4 * #4 ' .x. -A414 4 44 44' :44# ��+t !4 ! �� 4 44.444 4 AI' '4 4 4 4 X 44 4/ 4 4 4 4 4 4 �4 4;4 �4 4 44 4 4 ., ..� ' , • 4' 4_4 4/ :f+ :I • r t i Rl34001017i OLSEN,PETER & NINA P.O. BOX 485 KODIAK AK 99615 Ri340010iii KINO,ROBERT & ELEANOR P.O. BOX 1434 KODIAK AK 99615 0966 NV NVIOON �8l XO8`O`J `JOSSV 3I813]1] NVIOOH / O6OOZO0KI8 URSIN,NORMAN P.O. BOX 492 KODIAK R1100000110 AK 99615 R1i00000120 URSIN SEA S^INC. P.O. BOX 4'92 KODIAK . AK 996i5 R1i00000330 INTERNAT. SEAFOODS OF AK P.O°BOX2997 KODIAK AK 99615 R1340010050- _ MULLER,WALT & MILDRED P.O. BOX 1� KODIAK i AK 99615 BRECHAN,FRED C. P.O. BOX 1.275 KODIAK ) R1120300150 ` AK 99615 R1120300160 IANI'L0UI% & FRANCES P.O. BOX 177 KODIAK AK 99615 Ri120300170 IANI,LOUIS & FRANCES P.O. BOX 177 KODIAK AK 99615 R144200000i ALASKA,STATE OF BUREAU OF LAND MANAGEMENT JUNEAU AK 00000 SHUREVLOFF,NICK P.O. BOX 222 KODIAK SHURAULOFF/NICK P.O. BOX 222 KODIAK Ri340010020 AK 99615 Rt340010030 AK 99615 Ri340010040 INT'L. SEAFOODS OF AK.INC P.O.BOX 2997 KODIAK AK 99615 HALL, HELEN F. P.O. BOX 43 KODIAK HALL, HELEN F. P.O. BOX :,43 KODIAK AK 99615 ] R1120300100 HALL, HEIEN & ANNE P.O. BOX � / KODIAK 4AK 99615 Rii20 O0f10 SIMS,RIC ARD H & BEVERLY P.O. BOX ��705 KODIAKAK 99645 Ril30300080' AK 99615 Rii20300090 Rti20300120 SIMS,RICHARD H & BEVERLY P.O. BOX 2705 KODIAK AK 99615 ] R1120300130 EGGEME E JAMES & MARLYSS P.O. BOX 965 KODIAKAK 99615 R1120300140 EGGEMEyER JAMES & MARLYSS P.O. BOX 965 KODIAK AK 99615 Rt340Oi0 ROHRER,RICHARD A.&%USAN I GUGEL,GENALB S,JQ.&KRISl[I P.O.BOX 2219 KODIAK AK 99615 R1340010121. KODIAK ELECTRIC ASSOC. P.O. BOX 787 KODIAK AK 99615 NACHTWEIH,B.E° P.U. BOX 1247 KODIAK- R13400101.22 AK 99615 R1340010131 KODIAK ELECTRIC ASSOC. P.O. BOX 787 KODIAK AK 99615 R1340010140 KODIAK ELECTRIC ASSOC P.O. BOX 787 KODIAK AK 99615 Ri340�1�i��� , KODIAK ELECTRIC ASSOC P.O. BOX 787 KODIAK AK 99615 R1340010i60 KODIAK ELECTRIC ASSOC P.O. BOX 787 KODIAK AK 99615 -) R1340010050 MULLER,WA T & MILDRED P.O. BOX 313 KODIAK AK 99615 R1340010060, JENSEN,JOSEPH & MARY JEAN P.O. BOX 495 T KODIAK AK 99615 R1340010070/ WHITNEY FIDALGO SEAFOODS 2.360 WEST COMMODORE WAY SEATTLE WA 98199 . . R1340010080 �EAFQO��� � WA� WA WHITNEY FIDALGO ��EAFQO��� 2360 W COMMODORE WAY ! SEATTLE WA 98199 Rt340010091 METRQKIN,E I & LENA P.Q. BOX 55)2 KODIAK . AK 99615 R1340010092 JEN%EN,JOSH & MARY P.O. BOX 495 KODIAK AK 99615 R13400101.00 KING,ROBER1 & ELEANOR P.O. BOX 1434 KODIAK AK 99615 ' / } ( ) �� } \ / Ri340020100 KODIAK ELECTRIC ASSOC. P.O. BOX 787 KOMAK AK 996i5 R1340020110 KODIAK ELECTRIC ASSOC. P.O. BOX 787 KODIAK AN 99615 R13400201.20 INTERNATL SEAFOODS OF AK P.O. BOX 2995 KODIAK AK 99615 R1340020131 JENSEN,JOSEPH & MARY J. JP^O. BOX 495 KODIAK AK 99615 KING CRAB/INC~ P.O. BOX 1457 KODIAK Rti00000080 AK 99615 R1100000350 MULLER,WALTER & MILDRED P.O. BOX 313 KODIAK AK 99615 ) ) R13400101.72 OLSEM,PET & NINA P.Q. BOX 485 KODIAK AK 99615 R1340010181 FERRI%,PH IP E.&EDNA J. P.O. BOX 33i � KODIAK AK 99615 R1340010211'. ZHAR@LL,F�ED & ALEX KODIAK AK 99615 Ri340010212: ZHMROFF,FRED F^&YVONWE F P.O. BOX 405 KODIAK ' AK 99615 KODIAK,CI7Y OF P.O. BOX .397 KODIAK . / Ri438010020 KODIAK ELECTRIC ASSOC. P.O. BOX 707 KODIAK AK 99615 R1340010280 AK 99615 R1100000360 R1340020080 WHITNEY -FIDALGO SEAFOODS KODIAK EL TRIC ASSOC. P.O. BOX 1425 P.O. BOX 787 KODIAK AK 99615 KODIAK ] AK 996i5 kj‘li C. .0•JDNS\C--NCS- . . ' - • . • .1o11- •g RiLR oaooDzo / 9 .. 12, IA a..C.) 3 067c)crt 10 iZ \ I, 5c50.) oc, J • 11 , .. 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