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March 26, 1981
LAND PURCHASE STUDY
FOR
ELECTRIC ASSOCIATION, INC.
, MErcInnes and Hof fman
Consulting Engineers
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TITLE
TABLE OE CONTENTS
rNTRODUCTrON........o.,..
BACKGROI.II{D AND DATA DEVELOPMENT . . . .
A. Existing Facilities . . . . o . .
B. EugI Costs . . . . o . . . . o . .
C. Proj ected FueI Consumption . . . .
D. Ggneration . . . . . . . . . t . o
E. Description of Adj acent Property .
F. SaIe of KEAis Waterfront Property
ALTERNATIVES............O
A. No Purchase of Adj acent Property .
B. Purchase Lots 17A and ]-7B . . . .
C . Purchase Lots 10, 11A and 118 o .
DEVELOPMENT OE LOTS 10, 11A AND 11B . .
A.GengralCommgnts.........
B. Installation of Additional FueI .
C. Fuel Storage Alternatives . . . .
D. Regulatory Agencies . . . . . . .
CONCLUSIONSANDRECOMMEI\TDATIONS. . . .
APPEI{D IX
PAGE NO.
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ION:
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ase of
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p Iant site
ng genera
exi sting
iation, Inc. has considered for
ri se of property adj acent to theplant site. New Iand area adj acent
rating pI ant could aI low furthergenerating plant and its supporting
y to enlarge the exlsting site
de Tagura Road could aI so f aci Iitate
u e waterfront property on which the
f packaged peaking generators, and a
now located.
p
study i s to evaluate the potenti aI
arcels of land adjacent to the
examine alternatives avai lable to
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II. BACKGROUND AND DATA DEVELOPMENT:
A. Exi sting Faci Iities :
The generating facilities belonging to KodiakElectric Associatj.on as they exist today are shown
on an aerial photograph, Figure 1. The ttnewtt
power plant (constructed on 19761, a 2O MVA substa-tion, two 20,OOO gallon fuel tanks, and KEA head-quarters building are aII located on the north of
Tagura Road. A piece of waterfront property onthe south of Tagura Road contains the rroldrr powerp1ant, a smalI warehouse, and four ttpackagedtl
Fairbanks-Morse generators in weatherproof enclosures.
KEA also owns a tidelands tract, deeded to theutility in 1963 by the city of Kodiak.
The |toldtt plant contains five heavy duty Enterprisediesel generators, ranging from 484 to 800 KW incapacity. These units have aII been in servicefor at least 24 years; the oldest units wereinstalled in 1949. Presently, these units aretrmoth balledrr to a certain extent, and some prepara-tion would be required before they could be started
and put on l-ine. Each unit has around 100,O0O
hours running time.
The Fairbanks-Morse generators include three withratings of 2O0O KV'l and one at 2665 KW. AII areidentical in bore, stroke and number of cylinders,but Unit #8 obtains its higher rating with an
operatingr speed of 900 rpm versus 72O rpm for theother three. The E-Mrs were installed in 1966 andl-968. Units 6, 7 and t have about 60,000 runningthours; Unit 8 has about 2O,OOO hours. AII four
are maintained in running condition and are employedfrequently where system demand exceeds the availablecapacity of the ttnevrtt plant.
The ttnewtt plant is a permanent concrete structurebuilt in L976. Three Enterprise diesel generators,
with ratings of 25OO, 5270 and 527O KW were installedduring construction. A fourth unit, No. 13 ratedat 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 MVAmulti-winding transformers. A third 10 MVA trans-
former may be added within the existing substation
enclosure.
The lower floor of the headquarters building andthe small warehouse were used for storage of
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di stribution materi als unti I recently.
Ieases space for thi s purpose, and most
materials have been relocated.
KEA now
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Fuel storage consists of two 20,0O0 gallon horizontaltanks Iocated in a diked area east of the ttnewtt
generator building. A buried fuel oil line connectsthese tanks to bulk fuel storage owned by Chevronabout 1300 feet to the southwest. For the past
several years, however, fuel supply contracts have
gone to the Union Oil distributor, who makes dailytruck deliveries.
Very little space remains available for any kindof development on the existing KEA site. The areaItuphillrr 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 eastof the substation, but this area is used foroutside storage of some materials. Part of this
area must remain clear to maintain access to thesubstation.
B. EueI Costs:
The dramatic rise in fuel costs has been a painfulfact of life for virtually every citizen of thenation for the past four years or longer. Notonly are these costs seen in direct increases tooperate cars or heat homes, but indirectly incosts to consumers of electricity where generation
depends on a petroleum fuel. KEA's own experiencewith fuel costs are shown graphically in Figure 2.
Each 10 cent increase results in a direct increaseof over 7 mills per KWH in the cost of electricalproduction.
Prediction of future cost increases is complicated,
depending on many world-wide influences. Some
experts have observed the apparent over-productionof refined fuels in the Iower 48 and have concludedthat prices may begin to stabilLze. Eigure 2
shows fuel cost projections if price inflation
slows to LZl per year, or if increases stabilizeat a fLat 22 cents per year.
C. P tion:
Until Terror Lake Hydro is on line, fuel consumptionis a direct function of the total electrical
energy production of the KEA plant. Past history
shows an average of 14 KWH produced per gallon offuel, and this figure is used for fuel consumptionpredictions.
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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. EueI consumption estimates afterTerror Lake Hydro is on line depend on how often
and for how long diesel generation is required.
For purposes of this report, Terror Lake ls assumedto begin producing power in 1985. This is theearliest year the hydro project is likely to befinished. Later finish dates would increase fuel
consumption and favor any economical advantagethat might accrue to constructing bulk fuel storage.
The ten year period, 1-9A2 through 1991 is arbitrarily
chosen as a reasonable period over which to estimatefuel consumpti-on. FueI use beyond the ten yearperiod become increasingly unpredictable, and the
estj.mates 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 tenyears deserves discussion. The projections fromthe recently completed Long Range Planning Studyare significantly steeper than those from KEA's
1980 Power Requirements Study. After revi-ewingboth studies, it is our opinion that the 1980 PRSis more realistic and takes into account recent
downturns in consumer use because of increasedcost. Use of the lower estimates from the 1980
PRS also leads to a more conservative answer sofar as economics of bulk fuel storage is concerned.
The estimated total fuel consumption for the KEAPlant from L982 through 1991 is over 33 milliongaIIons. The results of estimating generation
requirements and fuel consumption are shown inTable 1.
D. Generation:
Determination of KEArs diesel generation needs
depends on estimation of load growth and prediction
of when the Terror Lake Hydro project wiII be
completed.
Load growth as shown in the 1980 PRS is used as abasis for this study. It is felt that the 1980
PRS properly takes into account recent anomilies
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
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TABLE 1
PROJECTED DIESEL GENERATION
AND FUEL CONSUMPTIONo
YEAR DEIvIAND
(1)
T PEAK
BY HYDRO
E ENERGY
BY HYDRO
ANNUAL
MW HR.
I{W HR.
BY HDD
(2)
GALLONS
FUEL CONS.
O L97 9
1980
19 81
L982
1983
1984
198s
1986
1987
I988
1989
1990
19 91
53 ,240
61r 538
76,000
86, 000
96,000
109, 000
112, 000
119, 000
L23 r 000
130, 000
136,000
L42,L54
14gr5gg
63 ,240
6L,539
76,000
96 r 000
96,000
109,000
7,840
1o ,7Lo
15,990
20,900
32,640
44,067
56 ,463
4 r 46g r 7g5
4 ,393 ,510
5 r 429 ,000
6r142r957
5rg57 rL42
7 ,7 85, 7L4
560,000
765,000
1, 142 ,14 3
L,485r7L4
2 ,331, 429
3r147 r 7oo
4,033r100
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TERROR LAKE ON LINE
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22.5 84
23.7 80
24.5 78
25.8 74
26.7 7L
28.L 68
93
91
87
84
76
69
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(2) Assumed, production rate - L4 KW hr ./gal.
o Tota1 fuel consumed 1982-1991 - 33r108,656 gallons
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transfer of the U.S. Coast Guard loads to the KEAsystem. The following Eigures 3 and 4 show thegrowth of demand and energy taken from the 1980
PRS, $/ith generation capacities superimposed.
If KEA sells the waterfront property, the generators
in the old plant should be retired, resulting inaIoss of 320O KW to KEATTS firm capacity. With the
completion of construction for Unit 13 (7 MW) and
assumed retirement of Units 1 through 5, KEAisinstalled plant capacity will be 26.2 MW; firmcapacity wiII be 19.2 MW. If the new Coast Guarddiesel generator (2.5 MW) and the Coast Guard
steam plant (4.2 MW) is included, total firmcapacity of the system is actualLy 25.9 MW, which
should be adeguate for system demands through1987. If the Coast Guard should retire the steamplant, firm capacity would be reduced to 21.7 MW,
and additional peaking generation may be needed by
1985 or 1985.
It is evident that some peaking by diesel generation
wiII be required from the first year Terror Lake
Hydro is on line, assuming only two 10 MW turbinesare 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 greneration was estimated byusing characteristic Energy Load Duration curves
shown in Eigure 5. The estimates thus obtained
were used to generate the ttMw HR. BY HDDrr columnof Table 1.
The replacement of the E-M generators by new units(or a single Iarge unit) was considered. Salvagecosts are difficult to determine with any 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 given by used
eguipment dealers ranged from $15O,OO0. to $500,000.
Because of the age of the units and the freight
and moving costs facing any buyer, the lowerfigure is probably more realistic.
The price for new 25OO KW units in weatherproof
enclosures is between $75O,000. and $80O,OOO.,F.O.B. the factory. Purchasing and installingthree 2500 KW units to replace the four F-M's
would approach $3,OOO.000. Assuming a salvage
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Terror Lake Anmral Capacity
(Appro>cimate y 1301000 IWV hr. /W.)
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Ceneratiqr Capacity
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D<planatisr: Ihese cun/es are r.rsed to dete-::rdne nmnfury LinE ard energf
delivered by peaking units. Points strcwn for an exanple are generated
fmn 1985 predictions. E<pected 1985 peak dsnard is 21.5 l"r{, of r,*rich
19 lqr{, or 88t, is supplied by hydro. Itris establishes points "a" and
'b' on tlre load ard energy stua/es. Ttre intersection belcru trD5rtt "a"
with Percent of tine (lnirrt "c"1 indicates that t}re peaking generators
will nnr abcuE,4t of the tinE (8760 x .04 = 350 hrs./f'r.). Ttre intersec-
tisr below point "b" with Pereent of Energy ftnint "d') shcrdls t}rat tr1dlo
wi-Lt srpply abouE. 94t of tlte energy lvhlle tfe peaking nrachines wjX
supply abort 63 of t}le tota-l annua-l rcquirsrEnts. Itais p:ocess is
repeatsd for subsequent years to predict r:sage of ttre peaking generators.
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Ercrg1f Load Duration C\rnres
PERCEVI OF TIME
PERCENI OF M{ERGY
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value of $600,000 for the F-M generators, replace-
ment generation would require a capital outlay ofweII over two million dollars.
E. Description of -Adjacent Propertyt
The adjacent property under consideration forpossible acquisition includes the following lots:
On the northeast side of the new generator building:
Lot 11A, Block 1 6 ,290 sq
Lot 11B, Block 1 4,875 sq
Lot 10, Block 1 11,179 sq
ft.
ft.
ft.
ft.
ft.
On the southwest side of the new generator building:
Lot 17A, Block 1
Lot l7B, BI ock 1
6,418 sq
6 ,900 sq
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Assessed valuations and appraisals for theseparcels 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
AIan G. Olson is included in the appendix of this
report.
Lots 17A and 17B are now zoned for business activity.Lots 11A and 11B are also zoned for business. Lot
10 is zoned for multiple residence use (R-3).
The present use of lot 17A is for storage ofmaterials; Iot l7B is used for residential; Iots
11A and 11B are used for residential; and lot 10
does not have improvements. Access to lot 17B isgood, but lot 17A is land-Iocked. Likewise Iot
11A is on Taqura Road, but lot 11B does not have
road access. Lot 10 fronts on Missi.on Road.
Lots 17A and \78 appear to offer a suitable building
site. With a moderate amount of excavation and
other sitet*ork, 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. FueI
storaqe on these Iots would be severely restrj-cted,
however, because the codes dictate clearances that
must be maintained.
Lots 11A and 11B are moderately sloped up from
Tagura Road and both Iots are developed withhouses. This property would provide a usablebuilding site in either a one level or a two levelconfiguration. Site work for this area would bemoderate. Lot 10 is rrtrrr shaped when viewed from
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Mission Road. The entire lot is quite steep.
Very little of the Iot is usable from Mission Road
because it drops off quickly. The smaller portion
adjacent to lot 118 is more suitable for development,but it is land-Iocked as presently situated.
If aII three lots (11A, 118 and 10) can be consideredcollectively, the portion of usable area becomes
more favorable. The excavation made for the newgenerator building could be continued to the
northeast taking J-n portions of lot 10 and lot 11Bfor one level of a multi-ple level expansion plan.
The rest of lot Ll-B and all of lot 11A, togetherwith existing KEA property, could be consideredfor one or more additional development areas.
The unused portion of Lot 10 would remai-n as abuffer area to separate the KEA development fromthe surrounding residential area. Fencing wouldprovide protection and help alleviate trespassing
accidents in such a new development.
Erom the appearance of the existing ground surface,it can be estimated that good foundation forstructures is available on aII the Iots beingconsidered. There are varying amounts of weatheredrock and other overburden in the area, but existing
excavations reveal solid rock underlying much ofthe site. Any construction program should be
preceeded by a thorough soils exploration.
F. SaIe of KEA' s Water front Property
Although there have been no recent appraisals of
KEArs waterfront property, earlier evaluationsindicate that it may be worth between $750,0OO and
$1,O0O,OOO to a buyer with reguirements for dockingfacilities. On the other hand, KEAr s requirementsfor land area do not include waterfront facilities.
Space for generation and other activities couldjust as well be accomplished on less expensive
Iand at another location. In other words, it isquite like1y that KEA could seII the waterfrontproperty, buy land elsewhere, and retain a surplusof income. SaIe of the waterfront property willrequire decisions regarding the old plant, the E-Mgenerators and the warehouse.
As mentioned earlier, warehousing for distributionmaterials is now provided through leased facilitieselsewhere. There is no apparent need to replacethe storage space Iost if the waterfront propertyis sold.
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The five generators in the old plant represent acontribution to installed plant capacity of only
3200 KW. As mentioned earlier, these units are
maintained in a rrmoth balledrf status and require
some preparation before they could be used. AII
are near the end of the depreciated life. They
are physically Iarge and heavy in comparison totheir rated output and are installed on concretebases. Because of their dg€, smalI electrical
output and the Iarge expense to move and reinstall,
these units should be surplused if the waterfrontproperty is sold. There are other utilities in
Alaska using nearly identical units which may beinterested in obtaining these units, either toreinstall or for parts. As an alternative, KEA
may wish to sell the plant intact and let the new
owner dispose of the generators in any way he seesfit. In either case, KEA should not expect muchreturn on these units because of the expense to
move and reinstall them.
The Eairbanks-Morse units are self-contained skid
mounted units and are, therefore, much less expensiveto move. They are Iarge enough in electrical
output to be useful to KEA. They are not particu-
Iarly satisfactory as base loaded units, but areperforming 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, Iater, Terror Lake
Hydro, the E-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 would be very
difficult to use as a barge landing. A better
solution, if barge deI j.veries are to be consJ.dered,
would be to extend the 4tt buried pipeline now
connected to the Chevron tanks westward on Tagura
Road to the fuel handling facilities on the ferry
dock (see Figure L).
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III. ALTERNATIVES:
A. No Purchase of Adi acent Property:
If KEA sells the waterfront property, it will be
faced with the problem of either relocating the E-
M generators or replacing them with new units.
The existing property north of Tagura Road doesnot have enough space available for relocation ofthe E-M generators. Generation capacity require-
ments dictate the continued use of these units or
replacement with new generators of like capacity.
Relocation of the E-M generators to a new site
would requj-re purchase or lease of a lot of atIeast l/4 acre or larger, with potential foraddition. In addition to relocating the generators,there would be consj.derable expense in constructingfuel oil storage and a step-up substation of atIeast 10 MVA. FinaIIy, a remote control system
would be required for operation of the generator
from the existing control room in the new plant.
EueI storage, substations, and control expensescould be expected to add about $40O, O0O to theother costs of moving these generators. Thegreatest disadvantage associated with remoteIocation of the generators would be aggravation of
an already difficult maintenance task.
To reduce maintenance and increase reliability,
KEA could replace the F-Mrs with new units.
However, this alternative could add more than
$2,OOO,OOO to the outlay, even with an estlmated
$600,O00 return for sale of the E-M generators.
B . Purcha se Lot s 17A and 17B :
This parcel has not been formally offered forsale, but its usefulness to KEA was investigated
as a possible alternative. Although the appraised
value of this property is significantly Iower thanthe parcel on the northeast of the power p1ant, itis severely limited in development possibilities.
There is no practical area available for fuel
storage within constraints of fire code restrictions
The five F-Mrs or replacement generators could be
Iocated on this parcel. However, they would be soclose to remaining residences as to raise possibleobjections from these neighbors. EinalIy, the
area on thi.s side of the porrrer plant is underconsideration by the State of Alaska as an approach
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for a bridge across the channel to Near Island.
For these reasons, this parcel should be dropped
from further investigation.
o 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 nextseveral years.
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Because of the high cost of replacement, it isdesirable that KEA retain the F-M generators aspeaking units. Relocating these generators to an
area near the northeast entrance of the new powerplant (see Eigure 7.) is an attractive alternativeto a Iocation remote from the power plant. ThisIocation keeps the generators within convenient
access for the operators and maintenance personnel.
FueI could be supplied from the new plant filtering
and pumping system. A relatively short undergroundhigh voltage cable would reconnect the units tothe substation.o
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The E-M qenerators could be left in their weather-proof enclosures and reinstalled on a concretepad. As an alternative, KEA may wish to considerconstructing a metal building attached to the new
power plant and installing the E-M units insidewith their enclosures removed. This would allow
maintenance and repairs to be done in any kind ofweather. A smalI overhead crane would greatly
enhance overhauls.
o The area of these lots offers ample room to installbulk fuel storage on the KEA generating site. As
shown below in Section IV, it is possible that anycapacity of tankage up to 1,000,0O0 gallons could
be constructed on this parcel. AII fire code andregulatory requirements could be met by such afacility. There are several reasons that compelthe consj.deration of this increased fuel storage
on the KEA generating site:
a
1 Any increase in fuel storage helps insulate
the operatlon of the plant from affects of a
short term fuel shortage. Average dai Iy use
i s now about 12 ,000 gal lons; the present
storagre allows only a little over three days
of normal operation without resupply.
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2 As an enhancement of reliability, additionalfuel storage could increase KEA's attractivenessas a source of power to the Coast Guardstation and other large power consumers.
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3 If Iarge enough, bulk fuel storage couldpossibly open fuel supply to bids from suppliers
making direct barge deliveries. It is estimatedthat a savings of about 3 cents per gallon
would amortize the capital cost of the storageover the next ten years. Any further savings
would accrue to the benefit of the KEA consumers.
KEA could also consider use of heavier fuelsnot normally available in Kodiak, although it
does not appear that these fuels could bepresently obtained any cheaper than the grade
of fuel now being used.
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To summarize consj-deration of this alternative, itis apparent that purchase of these lots couldprovide KEA with space to improve its existinggenerating plant while allowing it to sell thewaterfront property and realize a capital gain.
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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 opportunityfor relocating the four F-M generators in preparation
for sale of the waterfront property. Relocatingthe generators onto a concrete slab outside thettnewtt power plant is estimated to cost $195,000,but this is some $40O,O00 Iess than the estimateto mofe the generators to a remote site. Negotiationfor acquisition of the Iots is justified on these
grounds alone.
KEA may aI so wi sh to consider a
housing the E-M' s so that thei r
removed for easier maintenance.
to cost $3e5,OOO.
steel building for
enclosures can be
This is estimated
If KEA is successful in its efforts to purchasethis property, additional options for developmentare available and should be investigated. Foremost
among these is increased fuel storage, which was
mentioned earlier and discussed in more depth inthis secti.on.
B I nsta I I ati on of Additional EueI StoEege:
Several options for additional fuel storage should
be explored before proceeding with developmentplans for the proposed land acquisition. The
range of the options considered is from no additional
to the Iargest feasible storage.
At this time, there are 4O,OOO gallons of storagecapacity at the KEA power plant. The two 20,OOOga1lon tanks can be supplied by either a pipeline
from Chevron OiI or by truck from some other
source (Union OiI at present). Daily delivery is
needed with the current limited storagre capacityin order to keep about two daysr fuel reserve.
The storage at the supplierrs tank farm must be
depended upon to provide further reserve. Thesupplier's equipment for fuel delivery must also
be dependable.
FueI consumption records show that nearly 4.5million gallons of fuel were used for power genera-
tion in 1979. Durlng 1980, approximately 4.4million gallons were consumed for power. Projectionsof power needs over the next four years, until theTerror Lake project comes on llne, indicate a
maximum yearly fuel usage of 7.8 million gallons.
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In order to choose the largest but most economicalsize of fuel storage, w€ must consider variousfactors, 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 offuel reserve must be maintained in storage for
emergencies and that this amount is approximately
300,O00 gallons, and if an economical size bargeIoad of fuel runs about TOO,OOO gallons, w€ canstart with 1,O0O,O0O gallons of storage for purposesof discussion.
A trstandardrr API 650 tank holding approximately
1,0OO,OOO gallons (23,8O9 BbIs) wiII be 60 feet in
diameter and 48 feet high. Other tank dimensionsare possible, such as 70 feet in diameter and 36feet high, but we run into Iimitations from other
sources.
Erom the contour of the available property, it
appears that 48 feet of tank height is the practicalIimit in order to avoid objections from adjacentIand owners who would lose part of their view froma taller tank.
In order to comply with the National Fire ProtectionAssociation Code in regard to storage tanks usedfor No. 2 diesel fuel, the following must besati sfied:
Storage tanks must be separated from adjacentproperty lines that can be built upon by 1OOfeet and from any important building on the
same site by 35 feet.
The di stance between tanks must be one- sixth
the sum of the di ameters of ad j acent 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 isIimited, even when the proposed land acquisitionis made, it is i.mportant to keep the tank diameterto a minimum to be able to provide drive$/ay accessto the existing generator building. Anotherfactor that limits the usability of the propertyis the steepness of the portion near Mission Road.Consideration must also be given to providingsufficient area for spill containment.
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Both the Federal E.P.A. and Alaska D.E.C. requirespiII protection and contingency plans for storagefacilities of this proposed size. The amount ofspilI protection necessary consists mainly of
secondary containment for 7lO% of the volume ofthe largest storage tank in the installation. Itis possi.ble to divide the storage into two or moretanks, thereby reducing the spill containment toone-half or less, but the problems of available
area and tank height Iimitation soon enter intothe picture. Two 5OO,000 gallon capacity storage
tanks appear to be ttre upper size limit for theavailable area. Examples of possible tank confielur-ation for 5OO,O0O gallons capacity are 42.5 feet
diameter by 48 feet high and 50 feet diameter by
36 feet high.
We have included herein three possible alternativesfor storing up to 1,00O,000 gallons of fuel.Alternative A (Figure 6) shows a 60 feet diametertank located on a bench even with the generator
building basement. Driveway access to the generator
building is also shown, ds weII as spill prevention
area and an area for relocati-on of the peaking
generators.
Alternative B (Figure 7) shows the same storagetank Iocated at a lower level near Tagura Road andthe relocated peaking generators located next tothe new generator building. SpilI prevention area
and driveway access are also shown.
Alternative C (Figure 8) includes two 500,OO0gallon tanks Iocated near the Iower side of theproperty and the peaking generators located as inB. above.
From the examination of these alternative layouts,it appears that 1,OOO,0O0 gallons of storage is
about the practical maximum size when consideringthe available space at the site and the restrictionsplaced on the installation. It also appears that
1,OO0,O0O storaqe capacity is about the practical
minimum when considering necessary reserve and
resupply economics. A further in-depth study ofthe factors, including bulk fuel prj-ces, would berequired to refine this storage capacity figure.
Between the above-mentioned extremes of zero and
one million gallons of additional storage lie manyalternatives. One of these alternatives may be tobuild additional storage in staqes; for example:
5O0,OOO gallons now and 5O0,000 gallons later.
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The initial cost would be less, and there would betime to consider future plans while evaluating theeffect of having more storage capacity.
There is a significant breaking point in storage
capacity that should be considered. Although the
Environmental Protection Agency reguires a spiIIprevention control and counter-measure plan be
implemented for fuel storage down to 7,32O gallons,
the State of Alaska does not require a contingencyplan or proof of financial responsibility below
10,000 BbIs, ot 42O,OOO gallons of storage.
Consj"deration of any amount of storage in this
area should, because of the added costs of environ-
mental protection, be under 42O,OOO gallons.
The construction cost per gallon of storage wiIIincrease as the size of storage tank is reduced.AIso, the number of storage tanks is inverselyproportional to the construction cost per galIon
of storage. It is, therefore, preferable to keepthe size of tank as large as possible and the
number of tanks as small as possible. If, however,the funds available for construction are limited,
KEA would not have the opportunity to realize anypossible future savings from owning bulk storagefacilities, providJ-ng more favorable buying
capabi Iities .
The sizing of storage tanks with capacity betweenzero and 42O, OO0 gallons would depend upon how
much reserve is needed for coping with delivery
problems caused by such things as weather, strikesor supplier deficiencies. If barge delivery is
contemplated, the storage capacity should lncludeboth a reserve and a suitable delivery amount. Iftruck delivery is the method, a reserve should be
maintained as weII as an amount which allows a
convenient delivery schedule. These details wiIl
have to be worked out with prospective suppliers.
C. FueI Storage Alternati.ves:
The following drawings show three possible alterna-
tives for storing up to 1,OOO,OOO 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.
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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 ofgenerator units #6 through #9 on what is not lot
11A.
Eor the purpose of comparing alternatives for fuelstorage, the following preliminary estimate ofconstruction cost for a 1,OOO,O0O ga1Ion storagefacility is presented:
I TEM COST
Exc avati on and Backf i I I $ 75 ,000.
76,000.Retainlng WaIls
Li ni ng, Spi I I P reventi on and
Drainage
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Piping and Structural
Storage Tank
Tank Fire Protection
Cathodic Protection
Fencing, Site Work and Demolition
1 10, 000 .
60, 000 .
440, OOO .
55,000.
28, 000.
30 000 .
TOTAL ESTIMATED CONSTRUCTTON COST $e05, OOO.
The above estimate does not include fuel transferfacilities from a barge or other transportation.
The estimate also does not include engineeringcosts and the preparation of contingency plan foroiI spiIIs.
Alternative B (Eigure 7) shows the placement of upto 1,000,000 gallons of storage at a lower level
on the property and the peaking generators (F-M #6to #9) on a bench constructed to the northeast ofthe existing generator building. The drivewayaccess has a different configuration but servesthe same purpose as in Alternative A. SpiIIprevention 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 wouldrequire more pumping effort for supplying thegenerators. The location of units #6 to #9 closerto the generator building would shorten control
connections to the main plant.
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Costwise, Alternative B would not be much different
from the first alternative. What would be savedin excavation for the tank would be spent in morespiII prevention construction. Other items wouldnot change appreciably.
Alternative C (Eigure 8) shows a layout using two
storage tanks of up to 5O0,0O0 gallons capacity onthe lower level as in Alternative B. The relocatedgenerators #6 to #9 would be positioned as inAlternative B, above. The driveway access wouldshift to the northeast side of the property.SpiII prevention would encompass both tanks, but
would be smaller because the volume of only onetank (or the largest tank) would have to be
contained.
An arrangement such as this would have to be builtin two stages j-n order to preserve the present oilsupply 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 ofup to 5OO,0OO capacity could be placed side-by-side, due to clearances and access problems.
SmaIler tanks could possibly fit into a differentplan, but the code restrictj.ons will not allow
much deviation from the above alternatives.
The costs for this alternative, using two 5O0,00Ogallon tanks, would probably run about L0% higherthan either Alternative A or B because smallertanks cost more in relation to their storagecapacity. Piping and structures would be morecostly as weII as the tank shell.
There would be a saving in the cost of spillprevention because Iess volume is reguired, but it
would be more than offset in the added costs forpiping, structures and tank sheII area.
The following prelimJ-nary construction cost estimateis for a 42O,OOO gallon capacity storage tank
Iocated on the lower portion of the site. It willgive a comparison between a medium size tank andthe foregoing 1,O0O,O0O gallon size.
I TEM COST
Excavation and Backfi II
Retaining WaIIs and Dikes
Lining, Spi 1I Prevention and
Drainage
$ 16,500.
107 , 360 .
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I TEM
Piping and Structural
Storage Tank
Tank Fire Protection
Cathodic Protection
Fencing, Site Work and Demolition
TOTAL ESTIMATED CONSTRUCTION COST
Exc avati on and Backf i I I
Retaining Walls and Dikes
Lining, Spi 11 Preventi on and
Drainage
Piping and Structural
Storage Tank
Tank Eire Protection
Cathodic Protection
COST
55,000.
247 , 170 .
44, 000.
27, 500 .
33 000.
$5e6,63O.
$ 10, ooo.
50, 000.
35,000.
45 , OOO.
17 8, OOO .
40, 000.
25, O00.
Where the cost per gallon of storage is estimatedat $.865 for a one million gallon storage facility,the comparitive amount for a 42O,OOO gallon storageinstallation is $1.+O per galIon.
This per gallon cost can be expected to increase
as the storagre capacity decreases because smaller
tanks are more costly per gallon to build and the
necessary accessories for the storage facility
remain a part of the cost, Do matter what sj.ze is
installed.
If we were to reduce the size of additional storageto 2OO,O0O gallons, the total estimated constructioncost would change to the following:
I TEM COST
Eencing, Site Work and Demolition 30 ooo.
TOTAL ESTIMATED CONSTRUCTION COST $413,00O.
This estimated cost amounts to $2. 065 per gallon
of storage capacity. Eor a smaller tank, the pergallon cost can be expected to continue to rise.
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None of the alternatives listed above include oilspill clean up equipment, which would be requiredif transfer of oil from a barge would be includedin the fuel supply system. The production of an
operations manual and training of employees would
also be a related cost.
If KEA were to have an independent oil supplyfacility, they would have to run a pipeline to asuitable off-Ioading point. AT this time, KEA
owns a four inch diameter pipeline which runs fromthe Chevron Oil to the 40,000 gallon storagefacility at the generating plant. An extension of
approximately 600 feet onto this line would be
necessary to reach the City Dock for supply off-loading. A preliminary estimate of such an extension
would be about $4O,OOO.
The cost of design engineering and constructioninspection is not included in the foregroing estimates.
D. Regulatory Agencies
The Iist of governmental regulatory agencies thatdeal in envj-ronmental control is quite long, and,if combined with the list of agencies that dealwith zoning, fire protection, shoreline constructj.on,building i.nspection and so forth, the task ofbuilding a fuel storage facility with such restric-tions looks rather hopeless. Overcoming therequlatory impediments, however, just becomes amatter of time and effort spent in finding out
what the rules are and how to comply with them.
The three aqencies most involved in fuel storage
and transfer are the Eederal Environmental Protection
Agency (EPA), the Alaska Department of Environmental
Conservatlon (DEC), and the U.S. Coast Guard
(USCG). AII three agencies cover some of the same
area and, then, individually cover other areas.
Eor storagre of fuel in aboveground tanks, the EPAreguires that a SpiII Prevention Control and
Countermeasure PIan be implemented. This planj-nvolves having a containment area for possible
spills or a contingency plan for spills and clean-
up.
The Alaska DEC is charged with the responsibilityof controlling hazardous aspects of oiI storage
and transfer in our state. The Alaska State Coderequires that operators having oiI storage facilities
containing over 10,0O0 BbIs (42O,OO0 gallons) ofoil must prepare and submit a Discharge Contingency
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PIan and must provide Proof of Financial Responsi-bility. The Proof of Einancial Responsibility
runs at $10. per barrel of storage for the insuranceamount. A 1,000,00 gallon storage facility wouldrequire the minimum amount of insurance, or $1,OOO,OOO.
The USCG has particular jurisdiction over thetransfer of fuel from ships to terminal facilities.Their requirements include review of plans, issuanceof handling permits, inspection of facilities andthe development of a manual for operations of theterminal facilities.
AII of the foregoing requirements wiII cost money.
Much of the effort wiII be in paper work such aspermit applications. There wiII have to be training
sessions for employees, and there will be recurrentinspections and reports to be made. Insurance ofa form suitable to the DEC wiII have to remainconstantly 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. SpiII Contlngency
Plans can be minimized by good design, but they
must still be written and submitted.
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A
V . CONCLUSIONS AND RECOMMENDATIONS :
Purchase of Lots 10, 11A and 11B could provide
satisfactory space for relocation of the F-Mgenerators and allow KEA to prepare the waterfrontproperty for sale. The use of these Iots adjacentto the power plant is preferable to relocation ofthe generators elsewhere and would save about
$40O,000 that would be required to develop substation,fuel storage, and a remote control system for a
remote site.
B Considering space, regrulations, and the physicalproperties of the parcel under consideration, itis technically feasible to build bulk fuel storage
up to 1,000,O0O gallons on the site.
C Construction of large fuel storagre facility mightallow 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 facilitywith a capacity of 42O,OOO gallons or more alsoposes additional problems in complying with currentregulations.
D Additional fuel storage in the range of 1OO,0OO to
2OO,O00 gallons would probably not present anycost savinq opportunities but would provide a more
comfortable reserve of fuel in case of short term
shortagres.
H It is recommended that KEA:
1. Proceed with negotiations to purchase }ots10, 11A and 11B.
If an agreement is reached to purchase theselots, then proceed with an appraisal andoffer the waterfront property for sale.
Begin plans for relocating the E-M generators.
Continue investigation of increased fuel
storage as optional development.
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APPENDIX
Apprai sal by Alan G. Olson
Project,ions, 1980 PRS
and FueI Consumptiorl r L97 9 , 19 8 0
tor Cost Quotation
Cost Estimates
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2701 ASPEN DRIVE, ANCHORAGE, ALASKA 99503
February 10, 1981
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Re al E,state App raiser
(e07) 243-6609
Warren L. Krotke
Land f ield Services, Ine.
P. O. Box 10-17 05
Anchorage, Alaska 9951I
Dear Mr. Krotke:
As you reguested 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. rhe purpose of the study is to in-
dicate approximate market values of the five lots, €tS 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 shou:Ld 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 fuII 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, I98I as well as preliminary study of the general area.
fn addition, I have discussed the Subject properties with tntr.
Larry WoIf of Kodiak Electric Association, obtained pertinent
market data from local realtors and other appraisers who are
knowledgeable of property values in Kodiak, reviewed Kodiak
rsland Borough property files and used information in my files
relative to Kodiak values.
with reference to the attached map and photos of the Subject
properties, each will be described and analyzed separately as
follows:
o Southerly Porti on of Lot 1I ,k 1, Kodiak TownsiteBloc
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The southerly portion of Lot 11 contains an area of 6,290$, has
99.63' frontage along Tagura Road and is zoned Business. It is
improved with a I story, wood-frame, single family residence
containing 672fr, built about 1950; and a I story, wood-framerental apartment containing 2881t. 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 $L9,647 and $26,265, respectively, for a total of
s4 5 ' 9L2 ' FULL sERvtcE srATEwrDEa
A LAN G. OtsoNi e,.
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Warren L. Krotke -2-o Pebruary 10, I9BI
Research of the real estate market for business zoned properties
which can be compared to the southerly portion of Lot I1 revealed
a minimum of activity during the immediate past. There have been
numerous sales throughout the Kodiak area since L977 that generally
reflect values for business properties ranging between $5/O and
$8/0. The most recent sale occurred in early 1980 and involved
a 11,0820 lot fronting Tagura Road which was purchased by Inter-
national Seafoods ofA1aska, Inc. for a price of $8.L4/0. 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
processing 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.L4/qsale with respect to potential for development; with an adjustment
for size, a value of $f O.|O/,n is considered reasonable.
The existing residence and rental building do not represent the
Highest and Best Use of the propertyr Ers located and zoned Business;
ho*everr they appear to be in good enough condition to be used
for rentals for five years, or so, until the property can be
hormally developed for a business use. Assuming a net rent of
$4OOrlmo. for the two buildings, after a1I expenses are deducted,
an interim value of approximately 518,800 is calculated.
The approximate Market Value of the southerly portion of I,ot 11
is summarized as follows:
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Land3 5,2900 @$10.00/qBuildings: lrnterim Value for 5 yrs.
Tota1 Indicated Va lue
The property has been listed for sale in
at $150,000 and reduced to $125, 000 with
$52,900
I8,800
$8r ,700
recent months starting
no known interest to-d,ate.
of values between $80r000
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Based on the foregoing analysis, a range
and $85 r 000 is considered reasonable.
Northerly Portion of Lot 11, Block 1, Kodiak Townsite
The northerly portion of Lot 11 contains an area of 4r8'15fi, has
approximatety 47' frontage along an undedicated, side street on the
westerly side and is zoned Business. It is improved with a lL
story, wood-frame, single family residence containing 1r0050 on
the main floor and built about L963-4. 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 builoing are $I5,038 and $19,879, respectively,
for a total of $34,917.
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 S8.00/0 is considered reasonable, assuming legaI access exists
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o Warren L, Krotke
by prescriptive
for five years,
$1a,100.
o -3-o February I0, 1981
rights. Similarly, with a net rent of $300,/mo.the residence has an interim value of approximately
o The approximate I'larket Value of the northerly Portion of Lot 11
is summarized as follows:
Landz 4,8750 @$8.00/q
Building 3 f nterim Va1ue for 5 Yrs.Tota1 f ndicated Value
$:g,oooI4,100
$53, r00
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Based on the foregoing analysis, a range of
and $55,000 is considered reasonable-
values between $5 O , 000
O Lot 10 , Block I Kodiak Townsite
Lot I0 contains an area of 11,1790, has 115.25r 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 I9B0 assessed value is $20,188.
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Compared to the two portions of Lot II previously analyzed, Lot 10
is inferior for access, physical characteristics and potential
for development as an R-3 zoned tot. The most recent sale of a
vacant R-3 zoned lot in the downtown area was Lot 29, Block 3,
Erskine Subdivision (5,4990) at a price of 53.gL/tD in early 1980.
Except for a mistake in quoting the price, this lot would have
sotd for a price of $4.55/q. ft is superior compared to the
Subject, Lot 10.
The approximate Market Va1ue of Lot 10 is estimated to range between
$3 . 50,/0 and $4 .00/q r EIs f ollows :o
11 ,L790 0$3.50/a $: g ,L26
$4o,ooo( rounded )
o 11,r790 eS4.oo/0 $4a ,7L5
$45,ooo( rounded )
O Lot I7B, Block 1, Kodiak Townsite
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Lot I7B contains an area of 6,9000, has 116.45' frontage on an
unnamed street connecting between Tagura Road and Mission Road
and is zoned Business. It is improved with two small, single
family residences. The main residence is a t\ story, wood-frame
building, containing a main floor area of 6000, built about 1950
and is generalty in poor condition overall. The second building
appears to be approximately 20' x 20' (4000) and is probably used
as a rental. fts age and condition are similar. The 1980 assessed
values for land and bldgs. are $2L,32L and S8,552, respectively, fot
a total of $29,973.
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Warren L. Krotke o -4-o February I0, 1981o
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Lot I7B is compared with previously analyzed Lot 1I (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.O0/0 is considered reasonable.
On the basis that the existing buitdings could rent on an interim
basis for a combined net rental of $25O/mo. for the next five
years t ot sor until the property would normally be developed for
business use, a value of S11r 800 is projected.
The approximate Market Value of Lot 17B is summarized as follows:
Land: 6,9000 @$7.00/q $48,300Buildings: Interim Value for 5 yrs. 1I,800
Total Indicated Value $60,100
Based on the foregoing analysis, a range of values between
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$60,000 and $65,000 is considered reasonable.
o Lot 17A Block I Kodiak Townsite
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Lot 17A contains an area of 614180, aPpears to be land-Iocked,
is zoned Business and is vacant. The site is partially gradual
and partially steeply sloped up to the north towards Mission Road.
It is separated from Mission Road by Lot L2, which is approximately
30' wide; and it is also separated from the street connecting
Tagura Road with l"lission Road by Lots 20 and 17B, a distance of
approximately 25 feet. Its 1980 assessed value is $I9,879.
Compared to Lot LlB, which is adjacent to the south, Lot I7A is
inferior for access, physical characteristics and potential for
clevelopment. With a substantial minus adjustment for lack of
legal iccessr Err approximate Market Value ranging between $3.50,/0
and $4.Ol/q is estimated, as follows:
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6,4180 e$3 . 5o /fi $22 , 453
$22,500( rounded )
6,41 80 @$4.00/q $25,6-72
$26, oooo( rounded )
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Warren L. Krotke o -5-o February 10, I98I
Summa of Anal.SES
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-
iorn 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 valultion information for a feasibility study relative
to possible expansion of the Kodiak Electric Association facility,
it is reconrmended that the higher end of the ranges of indicated
values be considered. By doing Sor 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 on1i. ff a complete appraisal is to be required, it is
anticipated that the final estimates of Market Values for the
five lots would closely approximate th e value ranges indicated
at this tirne.
If you have any questions regarding this letter, please contact
mg.
Sincerely,
(i- L, i i ,'.7. (. /"cr( --AIan G. Olson
ReaI Estate APPraiser
AGO: ko
Attachments: ProPerty MaP
Subject Photos
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SUBJECT PHOTOSaJanuary 29, 1981
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Main residence on southerly portion of
Lot 11, Block 1, Kodiak Townsite
Rental unit on southerly portion of
Lot 1I, Block 1, Kodiak Townsite
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Residence on northerly portion of
Lot 11, Block L , Kodiak Townsite
SUBJECT PHOTOS
January 29, I98I
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Lot 10, Block I, Kodiak Townsite
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January 29, 1981
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Two residences on Lot 17B, Block 1, Kodiak Townsite
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Lot 17A (vacant area), Block L, Kodiak Townsite
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State of AI askaDiv. of Lands
Div. of Parks
Div. of Aviation
Div. of Veteran' s Af fairs
Div. of Economic Development
U. S . Government
Veteran' s Admini stration
Bureau of Indian Affairs
Corps of Engineers
Bureau of Land Management
I"lunic ipal ity o f Anchorage
University of Alaska
Kodiak fsland BoroughAhtna, Inc.
Aleut Corp.
Queen Fisheries
Pan-Alaska Fisheries, Ine.
lst National Bank of Anchorage
National Bank of A1aska
Alaska Bank of Commerce
Alaska National Bank of the North
Alaska l"lutua1 Savings Bank
Arctic First Federal Savings & Loan
Alaska USA Federal Credit Union
Coast Mortgage Co. (Rainier)
ReaI Estate Services Corporation
Charles R. Tunley, Attorney
Janigo Construction Co.
Dittbrender Construction Co .
S. R. Hansen Construction Co.
Robert O. Denny
Lewis E. Dickinson
William P. FeII, DDS
James R. Scott, DVM
Spenard Builders Supply
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APPRAISER' S QUAIIFICATTONS
ALAN G. OLSON
EDUCATION
B.S. Degree, Michigan College of Mining & Technology, 1959
AIREA Course I, appraisal Principles, University of Chicago, L969
AIREA Course If, Income Properties, Seattle Pacific University, 1971
AIREA Course IV, Condemnation, University of Alaska, L97L
AfFaA Course VIIf, Residential Properties, Alaska Methodist Univ., 1970
SREA Course 101, Appraisal Principles, Reciprocal Credit Received, L972
SREA Course 2OL, fncome Properties, Anchoragre, Alaska, L973
SREA Course 301, Investment Analysis, Makaha, Hawaii, L976Principles of Regional Planning, University of Wisconsin, L973
o BUSTNESS EXPERIENCE
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State of Alaska, Department of Highways, night of Way Agent, 1960-1956State of Alaska, Oivision of Lands, Staff Appraiser, L967-L969State of Alaska, Oivision of Lands, Review and SupervisingAppraiser, 1970-May 1974State of Alaska, Division of Lands, Chief, Planning and Classification,
May 1974-April L975
Follett & Associates, ReaI Estate Appraisers and Consultants,
Associate, llay I97S-JuIy 1978
AIan G. Olson, Real Estate Appraiser, May L972-Present
O TYPTCAL CLTENTELE
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PROFESS I ONAL AFF ILIATION
o American Institute of ReaI Estate Appraisers Candidate for l"lAI
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Kod 1a k Area
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Kodiak Electric AssociatioD, Inc.
NAME OF SYSTEM
0ctober 'l 0, l9B0
OATE
USDA . REA
SUMMARY O F CON SUM E RS AN D TWh ESTIMAT ES
vroRlr APPRovEo
oH B NO. s-R 188 t
L-h ESTTMAT Es 'NO. OF CONSUMERS
r€9rs 89 rs84rs 84CL ASS OF CONSU MER
s60 650?,900 3 ,600T. RURAL RESIOENTIAL
3. TOWN RESTDENTIAL
2. SEASON AL (Ann.) ( monthe)
a. IRRIGATTON (Arn.) ( hP.)
S. SECU RI TY L I GH TS (ArN.)
'l .250 ,,Lv8651 .030 t
,X. 12406. SMALL COMMERCIAL
2 434,349
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" 456,06527. PUBLIC STREET A HIGHIUAY LIGHTING (ANN.)
8. PU BLIC BUILDINGS
g.OILWELLS(Ann-) ( hP')
66 ,38?69 , 701(t )(t )to. BoRRowER's owN usE (NoN-REvENUE PRooucixcl
422,8724863+02,7353 50 ,<P)t t. LARGE COMMERCIAL
TOTAL POWE R R EQUI R EM ENTS
re 84 ts Rqre l9ITEM
'l ?6 nnn nnn60 . 300 .000 1 09 .000 .000t2.' AN NU eu lwh REQU I R EM EN Ts
61%7_3 %5_'l %t 3. INCLU DI N G LOSS ESE
60.4 %6A-4%60.9 %
la. ANNUAL LOAD FACTOR (Baecd on norFcoinc idcnt
anonthlY tYolem Peak dcmand)
I I ,300 20;6C0^25,700
t6. SOURCEISI OF SUPPLY
t5. NON-COINCIDENT UONTHLY SYSTEM PEAK
oEM AND (t<t)
. REvtstON OF Lwh ESTIMATES DATEO
Edwin K. Kozdk, Staff Engineer
ESTA BLISH EO BY
Davi d S. Neas8, General l'lanager
REVIEWEO BY
REA Form 3ll 7-7 t
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(Ann.)
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GROSS PRONUCTION I979-i980
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?o JAN 1981
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( Nlt'?H )
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19i9 14K[..I
4gg6.e
502 4 .5
5935. 3
47 6g .2
47 90. g
5C73.5
5965.6
5ItZL.6
51?-9. C
5692.9
4936.9
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C=, z 4C, loI
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l.,g&g .5
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L;Ag4.4
5,19 6 .4
5966, .4
4992.4
50,,42.4
52L0.4
5099. o
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F'EB
M/rRCIl
APRiL
It'lAY
JUNE
JULY
AUG
SEPT
nr^T'\-, \., I.
I.JCV
DEC
JAN
FEB
It/L.\RCll
APR ]. i-
l,lAy
JI.fl.iE
JULY
AUG
SEPT
OCT
}IOV
DEC
FUEL
3 5 11,928
35018 1
t+4224C
-"42C6333e4r5
352062
420i 95
38 5669
36 3681
398493
34367 5
357r83
380 5?3
348292
355908
32.8277
3.38376
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427 368
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CREATORS OF ELECTRICAL
POWER SUPPLY SYSTEMS
POWER SYSTEMS
A MOSRISON{ NUOSEN DIVISION
o 101 GELO ROAD / POST OFFICE BOX 1928
ROCKY MOUNT. NORTH CAROLINA 278OI
PHONE (919) 977-2720 / TWX: (stO) 9290725
Febnr ary 19 , 1981
o
Crews, l*lacinnes G Hoffman
38L2 Spenard Road
Anchorage, Alaska 99503
o ATTENTION: JERRY JOBST
Reference: Your Phone Request
Our Proposal No. 06881
Gent I emen :
o Please find enclosed our proposal as you requested for two (2)
housed units rated 2500 KW continuous, 2750 KIlr for standby,
not to exceed 2000 hours Per Year.
fire price quoted is for budget Purposes and for shipment in 1981.
We have enclosed a technical specification for your review and would
be pleased to discuss your requirements with you at any tirne.o
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Should you need the equipnent sooner than the thiry-two weeks quoted,
we do have two (2) EtD units in stock which could be rnade up into the
housed configuration outlined in our proposal within ten (10) weeks,
and at sone cost saving. These r.rrits are subject to prior sale. If
you have an interest in these units, please advise and we will revise
our price accordingly.
Ttrank you for this opportunity to work with you. We look forward to
your comments.
o Very tmly yours,
POWER SYSTEMS,
A I'IORRISON- KNUDSEN DI SION
o
Domestic Sales
MAS: j sw
En cI osures
o
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o ,#"sAL No. 06881a
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@ rgH,ERPJ,s,IHf,io,.DATE February 19, 1981
PAGE NO.1of4
PRICE DELIVERY AND TERMS
1. PRICE
For one (1) naster Diesel Electric Package, simil.ar to an
EMD MPA45 and one (1) MPB45 as described in the attached
specification.
$1 ,596, 760. 00
2. DELIVERY POINT AND TERMS
F.0.B. ROCICY I'IOUNT, N.C.
3. SHIPPING SCHEDULE
APPROXIMATELY 230 DAYS AFTER RECEIPT OF AN ORDER AND COI-TPLETE INFORMATION.
4. TERMS OF PAYMENT
90eo - on receipt of equipnent at F.O.B. point.
100% - on compretion of field test but not to exceed 60 days afterarrival
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JOB TITLE loa?
SUBJECT en.. 1- G-<Frn'alq
CREWS MAC INNES & HOFFMAN
CONSULTING ENGINEERS
ANCHORAGE AIASKA *b1,++ .HE.KED NA , s/ </2/,H EET OF
CREWS MAC I
CONSULTI
ANCHORAGE
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(e07) 486-3261 Box 787
KODIAK, ALASKA 99615 February 26, 1981
Kodiak Island Borough
Planning and Zoning Commission
P.O. Box 2L46
Kodiak, Alaska 99615
Gentlemen:
Re: Proposed Power PlanE Expansion
Kodiak Electric Association, Inc. has underEaken a feasibility study
with regar<i to a proposed expansion of the m ain poerer plant f acilities
in Kodiak. The study is expected to recommend consolidation of KEArs
generating facilities to the north side of Tagura Road. KEArs 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 advancageously purchase and store fuel.
The proposed expansion will necessitate the acquisit,ion 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 to\dard 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 present,ly 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 AssociaEion,
Inc. are exempt from having to conform t.o zoning requirement.s.
In order for Kodiak Electric Association, Inc. to proceed with its plans,
ere request that che Kodiak Island Borough provide us with the
appropriaEe authorization, or expression of non-objection, Eo such
expansion.
Very truly yoursr
f^"
,(&|/ {fu,
General I'Ianager
DSN llap
Mr. Richard Rohrer
Mr. Robert, King
Mr. Warren Krotke
cc:
--------------t
K@dn
o
March 27, 198I
11:30 AM
KEA Auditorium
KEA SPECIAL BOARD MEETING
r
Feasibility of Land Acquisir ion and Land Use (John
s with Property Owners (Warren Krotke )
Ehe Long-Range Plan
NegotiaEions and enter into an EarnesE AgreemenE
y Come Be fore E he Board
II.
III.
VI .
VI I .
I
V
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Pr
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IV.Re
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A.
MeeEing to Or
Roll CaI1
tat,ion of Eh
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C on Negot iat
lut ion Approvi
oval to Concl
r Business as
rnme n E,
o
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oo
KODIAK ISLAND BOROUGH
MEMORANDUM
T0: Wi I I [,'lal ton , Pl anni ng Di rector
FROM: Bill Hodg'i ns, Zoning 0fficial
DATE: March 27 , 1981
RE: KEA's Proposed Fuel 0i1 Storage Facility and Generator re-location
Having attended KEA's Specia'l Board Meeting held today it has be-
come apparent that:
has been stal I ed
1) The abili
ue to the hi
(
d
ty of KEA to purchase the lot(s) owned by Mr.King
gh as ki ng pri ce of [tlr. Ki ng . Al so the KEA Board
i ng to obtai n thi s pi ece of property 'i n the f i rstexpressed reservati ons i n want
pl ace.
(2) The Board also expressed strong
the waterfront property, this decision was due to'the
property has greatly increased in the last few years.
reservati ons about vacati n
fact that the val ue of th
g
i S
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 Conmission on
the 15th of April be withdrawn.
cc: Gary Smi th, Acting Borough Manager
David NeaSe , General Mamager of KEA
Pl anni ng and Zoni ng Commi ssi oners
City of Kodiak Eng'i neering Department
KODIAK ISLAND BO
Box 1246
Kodiak, Alashe 9961)
Rouo o
FIRST CLASS TLATL
NOTICE OF PUBLIC HEARING
Ttre Kodiak Island Borough Planning and Zoning Commission has received a petition from
KEA
requestins pnoposed relocation of 4 generators and the construction of a
1,000,000 gal'lon fuel tank on I ots 10, 11.A, & 11B, bl ock 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, 19gl
in the Borough Assembly Chambers, 7OO Upper MilI Bay Road, Kodiak. You are being
notified because you are either the property o\rrner of the above-referenced Iots, 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 cornnent on the petition proposal, this form may be used for
your convenience, and returned to the P).anning Department.
Further information is available from the Planning Department, telephone 486-5736
KODIAK ISLAND BOROUGH
Department of Planning and Community Development
Name Addre s s
Legal Description
Comments
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