Memorandum 13-020 Expenditure for Tidal Energy Incubator Project

CITY OF HOMER
CITY HALL   

MEMORANDUM 13-020
To:  Mayor Wythe and Homer City Council
Through: City Manager Walt Wrede

From:  Katie Koester, Community and Economic Development Coordinator
Date:  January 23, 2013
Subject: Resolution authorizing the expenditure of $2,500 for Phase 1 of the Tidal Energy Incubator Project

A group of agency representatives and industry professionals has been meeting for the last six months to develop the Homer Tidal Incubator Project, a proposal for developing a test site for tidal power at the Homer Deep Water Dock. City of Homer Port and Harbor Director Hawkins and myself have participated in these meetings.
The Homer City Council expressed their financial support for the Tidal Energy Incubator Project by establishing a reimbursable grant in the amount of $100,000 via Ordinance 12-51(A) on November 26, 2012.
Base line data and site characterization should be performed before the City of Homer can develop a Request for Proposal to attract an independent party via a reimbursable grant.  Therefore, this Resolution authorizes a direct expenditure by the City of Homer for Phase 1 of the project. Staff anticipates coming to the Council again this spring with a proposal to directly spend some of the reimbursable grant for surface data collection of velocity data at the Deep Water Dock.
The University of Alaska Anchorage has been a member of the working group assembled to explore the Tidal Energy Incubator idea and has proposed to develop Phase 1 of the project into a University of Alaska Anchorage Capstone Student Engineering project.  The City and the project will benefit greatly from the donation of the time of up to six engineering students under the mentorship of two professors who are knowledgeable in ocean engineering and tidal energy.
The scope of the work for Phase 1 includes defining opportunities, developing design and evaluation criteria, determining site conditions using existing data, formulating alternative concepts, and comparing and selecting a preferred alternative for the design of a structure/infrastructure to support a tidal incubator.  The team will submit weekly written reports to the City, present a final report orally and prepare a 35% design along with a written final report (see attached scope of work from project mentor Dr. Orson Smith).
The University’s policy is to accept no labor compensation for projects accomplished for student credit.  However, the team needs financial support to travel to and around Homer for a site visit. The City will work with the University to economize wherever possible (bulk ticket purchase, for example). The University has also requested support from City of Homer staff to participate by teleconference in weekly team meetings for the duration of the project and attend the final oral presentation in Anchorage.

BUDGET FOR PHASE 1 OF HOMER TIDAL ENERGY INCUBATOR PROJECT:
Airfare Round Trip Anchorage – Homer for University X 8 $250 $2,000
One Day Rental Car in Homer X 2 $100 $200
Ground support incidentals (gas, food)   $50
Airfare Round Trip Homer –Anchorage for City Representative X1 $250 $250
  TOTAL $2,500

Enc: Email from Orson Smith to Katie Koester defining scope of work.