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HomeMy WebLinkAboutTuluksak Waste Heat Project Agreements Contracts & Budget 1989II. FINANCIAL CONSIDERATIONS FOR AGREEMENT BETWEEN YUPIIT SCHOOL DISTRICT AND ALASKA ENERGY AUTHORITY This is a cost reimbursable agreement and only expenses allowable under the governing federal regulations and grant agreement governed by the Institutional Conservation Program are allowable. All costs must be associated with the identified projects. All items paid for by the School District to the Energy Authority become the property of the School District. Budget A. The cost for the following energy conservation measures as approved in the Energy Conservation Measure (ECM) grant number EN2192104 to the Yupiit School District cannot exceed the following amounts written approval from the Yupiit School District: 1. ECM #4. In Tuluksak elementary school, replace one (1) 1/8 horsepower pump with a high efficiency 1/40 horsepower pump and two (2) 1/8 horsepower pumps with two (2) 1/12 horsepower high efficiency pumps: $1,300.00 (Design: $100 and Installation: $1,200). 2. ECM #19. Repipe hydronic system in Tuluksak elementary school mechanical building to reset the building heating system in accordance with the outside air temperature and wind velocity while keeping the domestic hot water generator at full temperature: $2,445.00 (Design: $317 and Installation: $2,328). 3. ECM #22. Design and install two 3-phase alternators and wasteheat recovery system in Tuluksak elementary school complex to provide heat for the whole school and provide a 3-phase distribution line to the high school: $125,755.00 (Design: $14,545 and Installation: $111,210). B. The line item budget for expenditure of funds is as follows: 1. Personnel/Fringe Benefits $ 49,112.00 2. Materials/Supplies 51,988.00 3. Equipment 28,400.00 4. TOTAL $129,500.00 c. No contractual costs are permitted without approval from the Yupiit School District. Any increases in the line item budget amounts must receive prior approval from the Yupiit School District. D. No indirect costs are allowed. Yupiit School District, Owner Alaska Energy Authority, Contractor Tuluksak School Generation and Distribution System Upgrade E. The Energy Authority shall maintain cost records by ECM for all costs including personnel. Additionally, the costs for personnel and supplies must be kept by design or installation phases for each ECM. Yupiit School District, Owner Alaska Energy Authority, Contractor Tuluksak School Generation and Distribution System Upgrade REQUIRED CONTRACT PROVISIONS I. APPLICATION A. These Contract provisions shall apply to all work performed on the contract by the Energy Authority with its own organization and with the assistance of workmen under its immediate superintendence and to all work performed on the Contract by piecework, station work or by subcontract. The Energy Authority shall insert in each of its subcontracts all of the stipulations contained in these Required Contract Provisions and also a clause requiring its subcontractors to include these Required Contract Provisions in any lower tier subcontracts which may in turn be made. The Required Contract Provisions shall in no instance be incorporated by reference. The Energy Authority shall be responsible for the compliance by any subcontractor with these Required Contract Provisions. A breach of any of the stipulations contained in these Required Contract Provisions may be grounds’ for termination of the contract. A breach of the following clauses may also be grounds for debarment as provided in 29 CFR 5.6(b): Article I.A. Disputes arising out of the labor standards provisions of this Contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the U.S. Department of Labor set forth in 29 CFR Parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the Energy Authority [or any of its subcontractors] and the School District, the U.S. Department of Labor, or their employees or representatives. II. INSPECTION AND REPORTS. A. The School District, the State of Alaska, Department of Community and Regional Affairs, the U.S. Department of Energy, the Comptroller General of the United States, or any of their duly authorized representatives, shall have access to any books, documents, papers, and records of the Energy Authority which are directly pertinent to this contract for the purpose of making audit, examination, excerpts, and transcriptions. Facilities of the Energy Authority (including the physical plants, buildings, or Bl of 15 Yupiit School District, Owner Alaska Energy Authority, Contractor Tuluksak School Generation and Distribution System Upgrade IItI. IV. vI. other structures) and all records, books, accounts, and other sources of information pertinent to the Energy Authority's compliance with civil rights laws shall be made available for inspection during normal business hours on request of an officer or employee of the Department of Energy specifically authorized to make such inspections. Instructions in this regard will be provided by the Director, Office of Equal Opportunity, U.S. Department of Energy. B. The Energy Authority shall make reports in:the manner and at times the School District reasonably requires. c. The Energy Authority shall maintain all required records pertaining to this contract for a period of three years after final payment is made and after disposition of all other pending matters or disputes. NO ASSIGNMENT OR DELEGATION. This contract is personal and the Energy Authority may not assign or delegate this contract, or any part of it, or any right to any of the money to be paid under it, except with the written consent of the School District. PAYMENT OF TAXES. As a condition of performance of this contract, the Energy Authority shall pay all federal, state, and local taxes incurred by the Energy Authority and shall require their payment by any subcontractor or any other persons in the performance of this contract. Satisfactory performance of this paragraph is a condition precedent to payment by the School District under this contract. OWNERSHIP OF DOCUMENTS. All designs, drawings, specifications, notes, and other work developed in the performance of this agreement are and remain the sole property of the School District and may be used by the School District for any purpose without additional compensation to the Energy Authority. The Energy Authority agrees not to establish any claim under the design patent or copyright laws. Unless otherwise directed by the School District, the Energy Authority may retain copies of all materials. GOVERNING LAW. This contract is governed by the laws of the State of Alaska, of the United States of America, and of the local government having jurisdiction over the School District and project site. In cases of conflict, the federal law or regulations shall B2 of 15 Yupiit School District, Owner Alaska Energy Authority, Contractor Tuluksak School Generation and Distribution System Upgrade VII. VIII. IX. govern, and State laws and regulations shall take precedence over local laws and regulations. COVENANT AGAINST CONTINGENT FEES. The Energy Authority warrants that no person or agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, contingent fee, or brokerage except employees or agencies maintained by the Energy Authority for the purpose of securing business. For the breach of violation of this warranty, the School District may terminate this contract without liability or in its discretion deduct from the contract price or consideration the full amount of the commission, percentage, brokerage, or contingent fee. INVENTIONS AND PATENTS. If any patentable items, processes or inventions are produced under this contract, the Energy Authority shall notify the School District immediately. The School District shall then notify the State of Alaska. The Federal Department of Energy and the State of Alaska shall then determine the disposition of such items or rights. GOVERNING REGULATIONS. The Energy Authority shall adhere to the appropriate federal regulations listed below: 1. 10CFR Part 455 - "Grant Programs for Schools and Hospitals..." 2. 10CFR Part 600 - "U.S. Department of Energy Financial Assistance Rules" 35 OMB Circular A-110 - "Uniform Requirements for Grants With Institutions of Higher Education, Hospitals, and Non-profit Organizations" 4. OMB Circular A-122 - "Cost Principles for Non- profit Organizations" 5. OMB Circular A-102 - "Uniform Requirements for Assistance for State and Local Governments" 6. OMB Circular A-87 - "Cost Principles for State and Local Governments" 7. OMB Circular A-21 - "Cost Principles for Educational Institutions" 8. 45 CFR Part 74, Appendix E - "Cost Principles for B3 of 15 Yupiit School District, Owner Alaska Energy Authority, Contractor Tuluksak School Generation and Distribution System Upgrade Hospitals" 9. 48 CFR Part 31 - "Contracts with Commercial Organizations" 10. Federal Procurement Regulations (FPR) 1-15 - "Contracts with Commercial Organizations" 11. 29 CFR Parts 1, 3 and 5 - "Payment and Reporting of Wages Applicable to Federally financed and Assisted Construction Contracts" and "Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction..." 12. 10 CFR Part 1040 - "Nondiscrimination in Federally Assisted Programs; General Provisions" 13. Davis-Bacon Act 14. 18 USC 874 - "Copeland 'Anti-Kickback' Act" 15. Alaska Statute Chapter 36 - "Public Contracts" 16. 8 AAC Chapter 30 - "Public Contracts" X. EQUAL OPPORTUNITY A. Selection of Labor. During the performance of this Contract, the Energy Authority shall not discriminate against labor from any other State, possession or territory of the United States. In cases of conflict with federal laws, the federal laws and regulations take precedence in accordance with Alaska Statute 36.10.040. Employment Practices. During performance of this Contract, the Energy Authority agrees as follows: 1. The Energy Authority will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Energy Authority will take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoffs or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Energy Authority agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of B4 of 15 Yupiit School District, Owner Alaska Energy Authority, Contractor Tuluksak School Generation and Distribution System Upgrade this nondiscrimination clause. The Energy Authority will, in all solicitations or advertisements for employees placed by or on behalf of the Energy Authority, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. The Energy Authority will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice advising the said labor union or worker's representative of the Energy Authority's commitments under this Article X.B and shall post copies of the notice in conspicuous places available to employees and applicants for employment. In the event of the Energy Authority's noncompliance with the nondiscrimination clauses of this Contract or with any of the said rules, regulations or orders, this contract may be canceled, terminated or suspended in whole or in part and the Energy Authority may be declared ineligible for further Government contracts or Federally-assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation or order of the Secretary of Labor, or as otherwise provided by law. XI. LABOR PROVISIONS A. If this contract or any subcontract is in excess of $2,000, the Energy Authority or subcontractor must comply with the higher rate of either the Davis-Bacon Act as set forth in the U.S. Department of Labor Regulations 29 CFR Parts 3 and 5 or Alaskan rates as set forth by the Alaska Department of Labor in accord with Alaska Statute 36.05. Minimum Wages. 1. All laborers and mechanics employed or working upon the site of work shall be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR Part 3)), the full amount of wages and bona fide fringe benefits (or cash B5 of 15 Yupiit School District, Owner Alaska Energy Authority, Contractor Tuluksak School Generation and Distribution System Upgrade equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor and the Alaska Department of Labor and attached to this contract and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the Energy Authority and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis-Bacon Act on behalf of laborers and mechanics are considered wages paid to such laborers and mechanics, subject to the provisions of Article XI.B.4; also, regular contributions made or costs incurred for more than a weekly period (but less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in Article XI.B.2.d. Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, That the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The scale of wages to be paid and the Davis-Bacon poster (WH-1321) shall be posted at all times by the Energy Authority and its subcontractor in a prominent and easily accessible place at the site of the work. New Wage Classification Determination a. The Contracting Officer of the School District shall require that any class of laborers or mechanics which is not listed in the wage determination and which is to be employed under this contract shall be classified in conformance with the wage determination. The Contracting Officer shall approve an additional classification and wage rate and fringe benefits therefor only when the following criteria have been met: (1) The work to be performed by the classification requested is not performed by a classification in the wage determination; and (2)The classification is utilized in the area B6 of 15 Yupiit School District, Owner Alaska Energy Authority, Contractor Tuluksak School Generation and Distribution System Upgrade by the construction industry; and (3)The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination. b. If the Energy Authority and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the Contracting Officer agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken shall be sent by the Contracting Officer to the Administrator of the Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, Washington, D.C. 20210 and the Alaska Department of Labor, Labor Standards and Safety Division. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise the Contracting Officer or will notify the Contracting Officer within the 30-day period that additional time is necessary. In the event the Energy Authority, the laborers or mechanics to be - employed in the classification or their representatives, and the Contracting Officer do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the Contracting Officer shall refer the questions, including the views of all interested parties and the recommendation of the Contracting Officer, to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise the Contracting Officer or will notify the Contracting Officer within the 30-day period that additional time is necessary. In the event the Energy Authority, the laborers or mechanics to be - employed in the classification or their representatives, and the Contracting Officer do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the Contracting Officer shall refer the questions, including the views of all interested parties and the B7 of 15 Yupiit School District, Owner Alaska Energy Authority, Contractor Tuluksak School Generation and Distribution System Upgrade recommendation of the Contracting Officer, to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise the Contracting Officer or will notify the Contracting Officer within the 30-day period that additional time is necessary. e. The wage rate (including fringe benefits where appropriate) determined pursuant to Articles XI.B.2.b and XI.B.2.c, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification. Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the Energy Authority shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof. If the Energy Authority does not make payments to a trustee or other third person, the Energy Authority may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the Energy Authority, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the Energy Authority to set aside in a separate account assets for the meeting of obligations under the plan or progran. c. Payrolls and basic records. 1. As used in Article XI, the term "employee" shall not apply to persons in classifications higher than that of laborer or mechanic and those who are the immediate supervisors of such employees. However, owner/operators who perform duties as laborers, mechanics, or field surveyors while working as contractors or subcontractors shall be considered employees while performing such duties. Payrolls and basic records relating thereto shall be maintained by the Energy Authority and subcontractors during the course of the work and preserved for a period of three years thereafter for B8 of 15 Yupiit School District, Owner Alaska Energy Authority, Contractor Tuluksak School Generation and Distribution System Upgrade all laborers and mechanics working at the site of the work. Such records shall contain the name, address, and social security number of each worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in section 1(b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1) (iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section 1(b)(2)(B) of the Davis-Bacon Act, the Energy Authority shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits. Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. Weekly Payroll Statements a. The Energy Authority shall submit, before Friday of each week, to the Alaska Department of Labor and the School District a sworn affidavit for the previous week of all payrolls. The affidavits submitted shall set out accurately and completely all of the information required to be maintained in Article XI.C.2 above. Optional Form WH-347 is for this purpose. The Energy Authority is responsible for the submission of copies of payrolls by all subcontractors. b. Each payroll submitted shall be accompanied by a "Statement of Compliance," signed by the Energy Authority or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following: (1) That the payroll for the payroll period contains the information required to be B9 of 15 Yupiit School District, Owner Alaska Energy Authority, Contractor Tuluksak School Generation and Distribution System Upgrade maintained under Section 5.5(a)(3)(i) of Regulations, 29 CFR Part 5 and that the information is correct and complete; (2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in Regulations, 29 CFR Part 3. (3) That each laborer or mechanic has been paid not less that the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, which is the higher of the amount specified in the applicable wage determination incorporated into the contract or which is the current wage determination established by the Alaska Department of Labor. c. The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 shall satisfy the requirement for submission of the "Statement of Compliance" required by Article XI.C.3.b above. d. The falsification of any of the above certifications may subject the Energy Authority or subcontractor to civil oor criminal prosecution under Section 1001 of Title 18 and Section 231 of Title 31 of the United States Code. The Energy Authority or subcontractor shall make the records required under Article XI.C.3, available for inspection, copying, or transcription by authorized representatives of the School District, the Alaska Department of Labor, the U.S. Department of Labor, and shall permit such representatives to interview employees during working hours on the job. If the Energy Authority or subcontractor fails to submit the required records or to make them available, the State or Federal agency may, after written notice to the Energy Authority, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such B10 of 15 Yupiit School District, Owner Alaska Energy Authority, Contractor Tuluksak School Generation and Distribution System Upgrade records available may be grounds for debarment action pursuant to 29 CFR 5.12 or Alaska Statute. D. Apprentices and trainees. 1. Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Bureau of Apprenticeship and Training, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Bureau of Apprenticeship and Training to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to the Energy Authority as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, an apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratio's and wage rates (expressed in percentages of the journeyman's hourly’ rate) specified in the contractor's and subcontractor's registered program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program for the level of the progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringes shall Bll of 15 Yupiit School District, Owner Alaska Energy Authority, Contractor Tuluksak School Generation and Distribution System Upgrade be paid in accordance with that determination. In the event the Bureau of Apprenticeship and Training withdraws approval of an apprenticeship program, the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved. Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employment and Training Administration. The ratios of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee's level of progress, expressed aS a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination which provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part B12 of 15 Yupiit School District, Owner Alaska Energy Authority, Contractor Tuluksak School Generation and Distribution System Upgrade shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4. Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of eight hours in any calendar day or in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of eight hours in any calendar day or in excess of forty hours in such workweek, whichever is greater. 5. Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the article set forth in Article XI.D.4, the Energy Authority and any subcontractor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the School District for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in Article XI.D.4 in the sum of $10 for each calendar day or which such individual was required or permitted to work in excess of eight hours or in excess of the standard workweek of forty hours without payment of the overtime wages required by Article XI.D.4. Withholding. The School District shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to withhold from the Energy Authority under this contract or any other Federal or State contract with the same prime contractor, or any other federally-assisted or State-assisted contract subject to Davis-Bacon prevailing wage requirements or Alaska Statute 36.05, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of the Energy Authority or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in Article XI.D.5 or so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the B13 of 15 Yupiit School District, Owner Alaska Energy Authority, Contractor Tuluksak School Generation and Distribution System Upgrade Energy Authority or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including apprentice, trainee, or helper, employed or working on the site of work, all or part of the wages required by the contract, the School District may, after written notice to the Energy Authority, sponsor, applicant, or owner, take such actions as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased. Subcontracts. The Energy Authority or subcontractor shall insert in any subcontracts the paragraphs of Articles XI in this contract. The Energy Authority is responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses required by subcontractors. A breach of the clauses in Article XI of this contract may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12 and Alaska Statute 36.05.090. If it is found that a laborer, mechanic, or field surveyor employed by the Energy Authority or subcontractor has been or is being paid a rate of wages less than the rate of wages required by this contract to be paid, the State or the School District may, by written notice to the Energy Authority, terminate the contractor's right to proceed with the work for which there is a failure to pay the required wages or prosecute the work to completion by contract or otherwise, and the Energy Authority and its sureties are liable to the State or the School District for excess costs for completing the work. Compliance with Davis-Bacon and Related Act requirements. All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR Parts 1, 3, and 5 and Alaska Statute Title 36 are herein incorporated by reference in this contract. Disputes concerning labor standards. Disputes arising out of a labor standards provision of this contract shall not subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR Parts 5, 6, and 7 and with the procedures of the Alaska Department of Labor. Disputes within the meaning of this clause include disputes between the Energy Authority (or any of its subcontractors) and the School District, the U.S. Department of Labor, the Alaska Department of Labor or their employees or B14 of 15 Yupiit School District, Owner Alaska Energy Authority, Contractor Tuluksak School Generation and Distribution System Upgrade XII. XIII. representatives. The Energy Authority shall recognize the minimum thermal and lighting standards established for residential, commercial, and public building new construction in any recommendations provided under this contract. The residential and commercial standards are established by the Alaska Department of Community and Regional Affairs. The public buildings standards are established by the Alaska Department of Transportation and Public Facilities. SUBCONTRACTOR ASSURANCE. The Energy Authority shall require any _ individual, organization, or other entity with whom it subcontracts or subleases for the purpose of providing any service, financial aid, equipment, property, or structure to sign written assurance forms required by A-102 or A-110 and the U.S. Department of Energy. However, the obligation of both the Energy Authority and subcontractors to ensure compliance is not relieved by the collection or submission of written assurance forms. B15 of 15 OMB Approval No. 0348-0040 ASSURANCES - NON-CONSTRUCTION Note: Certain of these assurances may not be applicable to your project or program. If you have questions, please contact the awarding agency. As the duly authorized representative of the applicant I certify that the applicant: 1. Has the legal authority to apply for Federal assistance, and the institutional, managerial and financial capability (including funds sufficient to pay the non-Federal share of project costs) to ensure proper planning, management and completion of the project described in this application. 2. Will give the awarding agency, the Comptroller General of the United States, and if appropriate, the State, through any authorized representative, access to and the right to examine all records, books, papers, or documents related to the award; and will establish a proper accounting system in accordance with generally accepted accounting standards or agency directives. 3. Will establish safeguards to prohibit employees from using their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest, or personal gain. 4. Will initiate and complete the work within the applicable time frame after receipt of approval of the awarding agency. 5. Will comply with the Intergovernmental Personnel Act of 1970 (42 U.S.C. Sections 4728-4763) relating to prescribed standards for merit systems for programs funded under one of the nineteen statutes or regulations specified in Appendix A of OPM's Standards for a Merit System of Personnel Administration (5 C.F.R. 900, Subpart F). 6. Will comply with all Federal statutes relating to nondiscri- mination. These include but are not limited to: (a) Title VI of the Civil Rights Act of 1964 (P.L. 88-352) which prohibits discrimination on the basis of race, color or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. Sections 1681-1683, and 1685-1686), which prohibits discrimination on the basis of sex; (c) Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. Section 794), which prohibits discrimination on the basis of handicaps; (d) the Age Discrimination Act of 1975, as amended (42 U.S.C. Sections 6101-6107), which prohibits discrimination on the basis of age; (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 92-255), as amended, relating to nondiscrimination on the basis of drug abuse; (f) the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 (P.L. 91-616), as amended, relating to nondiscrimination on the basis of alcohol abuse or alcoholism; (g) Sections 523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. 290 dd-3 and 290 ee-3), as amended, relating to confidentiality of alcohol and drug abuse patient records; (h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. Section 3601 et seq.), as amended, relating to nondiscrimination in the sale, rental or financing of housing; (i) any other nondiscrimination provisions in the specific statute(s) under which application for Federal assistance is being made; and (j) the requirements of any other nondiscrimination statute(s) which may apply to the application. 7. Will comply, or has already complied, with the requirements of Titles II and III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91-646) which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of Federal or federally assisted programs. These requirements apply to all interests in real property acquired for project purposes regardless of Federal participation in purchases. 8. Will comply with the provisions of the Hatch Act (5 U.S.C. Sections 1501-1508 and 7324-7328) which limit the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds. 9. Will comply, as applicable, with the provisions of the Davis-Bacon Act (40 U.S.C. Sections 276a and 272a-7), the Copeland Act (40 U.S.C. Section 276c and 18 U.S.C. Section 874), and the Contract Work Hours and Safety Standards Act (40 U.S.C. Sections 327-333), regarding labor standards for federally assisted construction subagreements. 10. Will comply, if applicable, with flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (P.L. 93-234) which requires recipients in a special flood hazard area to participate in the program and to purchase flood insurance if the total cost of insurable construction and acquisition is $10,000 or more. 11. Will comply with environmental standards which may be prescribed pursuant to the following: (a) institution of environmental quality control measures under the National Environmental Policy Act of 1969 (P.L. 91-190) and Executive Order (EO) 11514; (b) notification of violating facilities pursuant to EO 11738; (c) protection of wetlands pursuant to EO 11990; (d) evaluation of flood hazards in floodplains in accordance with EO 11988; (e) assurance of project consistency with the approved State management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. Sections 1451 et seq.); (f) conformity of Federal actions to State (Clear Air) Implementation Plans under Section 176(c) of the Clear Air Act of 1955, as amended (42 U.S.C. Section 7401 et seq.); (g) protection of underground sources of drinking water under the Safe Drinking Water Act of 1974, as amended, (P.L. 93-523); and (h) protection of endangered species under the Endangered Species Act of 1973, as amended, (P.L. 93-205). 12. Will comply with the Wild and Scenic Rivers Act of 1968 (16 U.S.C. Sections 1271 et seq.) related to protecting components or potential components of the national wild and scenic rivers system. 13. Will assist the awarding agency in assuring compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470), EO 11593 (identification and protection of historic properties), and the Archaeological and Historic Preservation Act of 1974 (16 U.S.C. 469a-1 et seq.). 14. Will comply with P.L. 93-348 regarding the protection of human subjects involved in research, development, and related activities supported by this award of assistance. Standard Form 424B (4-88) Prescribed by OMB Circular A-102 15. Will comply with the Laboratory Animal Welfare Act of 1966 (P.L. 89-544, as amended, 7 U.S.C. 2131 et seq.) pertaining to the care, handling, and treatment of warm-blooded animals held for research, teaching, or other activities supported by this award of assistance. 16. Will comply with the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. Sections 4801 et seq.) which prohibits the use of lead based paint in construction or rehabilitation of residence structures. 17. Will cause to be performed the required financial and compliance audits in accordance with the Single Audit Act of 1984. 18. Will comply with all applicable requirements of all other Federal laws, executive orders, regulations and policies governing this program. Note: Signature of this form indicates that the applicant agrees to all assurances outlined in items 1-18. SIGNATURE OF AUTHORIZED CERTIFYING OFFICIAL TITLE APPLICANT ORGANIZATION DATE SUBMITTED Standard Form 424B (4-88) Prescribed by OMB Circular A-102 DOE F 1600.5 (5-85) OMB Control No. 1310-0400 U.S. Department of Energy Assurance of Compliance 1. Nondiscrimination in Federally Assisted Programs. The Applicant whose name is given at the end of this Assurance (Hereinafter called the “Applicant") HEREBY AGREES to comply with Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352), Section 16 of the Federal Energy Administration Act of 1974 (Pub. L. 93-275), Section 401 of the Energy Reorganization Act of 1974 (Pub. L. 93-438), Title IX of the Education Amendments of 1972, as amended, (Pub. L. 92-318, Pub. L. 93-568, and Pub. L. 94-482), Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93-112), the Age Discrimination Act of 1975 (Pub. L. 94- 135), and Title VIII of the Civil Rights Act of 1968 (Pub. L. 90-284), the Department of Energy Organization Act of 1977 (Pub. L. 95-91), and the Energy Conservation and Production Act of 1976, as amended, (Pub. L. 94-385). In accordance with the above laws and regulations issued pursuant thereto, the Applicant agrees to assure that no person in the United States shall, on the ground of race, color, national origin, sex, age, or handicap, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity in which the Applicant receives Federal assistance from the Department of Energy. 2. Applicability and Period of Obligation. In the case of any service, financial aid, covered employment, equipment, property, or structure provided, leased, or improved with Federal assistance extended to the Applicant by the Department of Energy, this assurance obligates the Applicant for the period during which Federal assistance is extended. In the case of any transfer of such service, financial aid, equipment, property, or structure, this assurance obligates the transferee for the period during which Federal assistance is extended. If any personal property is so provided, this assurance obligates the Applicant for the period during which it retains ownership or possession of the property. In all other cases, this assurance obligates the Applicant for the period during which the Federal assistance is extended to the Applicant by the Department of Energy. 3. Employment Practices. Where a primary objective of the Federal assistance is to provide employment or where the Applicant's employment practices effect the delivery of services in programs or activities resulting from Federal assistance extended by the Department, the Applicant agrees not to discriminate on the ground of race, color, national origin, sex, age, or handicap, in its employment practices. Such employment practices may include, but are not limited to, recruitment, recruitment advertising, hiring, layoff or termination, promotion, demotion, transfer, rates of pay, training and participation in upward mobility programs, or other forms of compensation and use of facilities. 4. Subrecipient Assurance. The Applicant shall require any individual, organization, or other entity with whom it subcontracts, subgrants, or subleases for the purpose of providing any service, financial aid, equipment, property, or structure to comply with laws cited above. To this end, the subrecipient shall be required to sign a written assurance form, however, the obligation of both recipient and subrecipient to ensure compliance is not relieved by the collection or submission of written assurance forms. 5. Data Collection. The Applicant agrees to compile and maintain information pertaining to programs or activities developed as a result of the Applicant's receipt of Federal assistance from the Department of Energy. Such information shall include, but is not limited to, the following: (1) the manner in which services are or will be provided and related data necessary for determining whether any persons are or will be denied such services on the basis of prohibited discrimination; (2) the population eligible to be served by race, color, national origin, sex, age and handicap; (3) data regarding covered employment including use or planned use of bilingual public contact employees serving beneficiaries of the program where necessary to permit effective participation by beneficiaries unable to speak or understand English; (4) the location of existing or proposed facilities connected with the program and related information adequate for determining whether the location has or will have the effect of unnecessarily denying access to any person on the basis of prohibited discrimination; (5) the present or proposed membership by race, color, national origin, sex, age and handicap, in any planning or advisory body which is an integral part of the program; and (6) any additional written data determined by the Department of Energy to be relevant to its obligation to assure compliance by recipients with laws cited in the first paragraph of this assurance. 6. Access to Records. The Applicant agrees to submit requested data to the Department of Energy regarding programs and activities developed by the Applicant from the use of Federal assistance funds extended by the Department of Energy. Facilities of the Applicant (including the physical plants, buildings, or other structures) and all records, books, accounts, and other sources of information pertinent to the Applicant's compliance with the civil rights laws shall be made available for inspection during normal business hours on request of an officer or employee of the Department of Energy specifically authorized to make such inspections. Instructions in this regard will be provided by the Director, Office of Equal Opportunity, U.S. Department of Energy. This assurance is given in consideration of and for the purpose of obtaining any and all Federal grants, loans, contracts (excluding procurement contracts), property, discounts or other Federal assistance extended after the date hereto, to the Applicant by the Department of Energy, including installment payments on account after such date of application for Federal assistance which are approved before such date. The Applicant recognizes and agrees that such Federal assistance will be extended in reliance upon the representations and agreements made in this assurance and that the United States shall have the right to seek judicial enforcement of this assurance. This assurance is binding on the Applicant, its successors, transferees, and assignees, as well as the person whose signature appears below and who is authorized to sign this assurance on behalf of the Applicant. NAME OF APPLICANT ADDRESS SIGNATURE OF AUTHORIZED CERTIFYING OFFICIAL Veytihiee be Uses 244-72 OT Prrssnnye phew ifn bees. DRAFT TULUKSAK AGREEMENT THIS AGREEMENT entered into this day of , 1989, between the YUPIIT SCHOOL DISTRICT (School District) and the ALASKA ENERGY AUTHORITY (Energy Authority) outlines the responsibilities of the parties and the procedures to be followed in connection with generation and distribution system upgrades in Tuluksak (the Project). Article A. ALASKA ENERGY AUTHORITY COVENANTS The Energy Authority will: 1. Perform the following scope of work for the Project: (a) Conduct a detailed review of the existing site conditions and prepare design drawings for the Project. (b) Replace two generators in the elementary school. (c) Convert existing 1-phase distribution system as nceessary to energize from a 3-phase source in the elementary school. 60 a” oh at! (d) Interconnect the elementary school with the high school. a \ A eo oP \pe (e) Provide a feed from the schools to the city’s distribution uk system. U (£) Connect the new generator engine cooling systems to the existing waste heat system in the elementary school. 2. Provide advice and assistance to the School District on administrative, management, and technical matters relating to the Project, serve as the School District's agent for the design and con- struction management of the Project, perform a final inspection of the Project upon completion, and issue a Notice of Project Completion. 3. Assist the School District in resolving operational diffi- culties with the Project, if needed, for one calendar year after comple- tion. Such difficulties do not include matters normally considered to be routine maintenance. 4. Accept funding from the School District as described in Article B, Paragraph 6 of this Agreement, and account separately for these funds within the Energy Authority's Rural Energy Construction Assistance account, subject to availability of appropriation of said account. Upon completion of the Project, the Energy Authority will return to the School District any unused portion of these funds. 5. On behalf of the School District, engage an accounting firm that will receive funds for the Project, as described in Article B, Paragraph 7, disburse funds for the payment of obligations, and provide record and bookkeeping services associated with administration of the DDC10199/1 ,- ays \ Clee + Ee™ DRAFT Tuluksak Agreement Page 2 of 6 Project, including preparation of all federal, state and other reports related to payroll, such as taxes, insurance, unemployment, pension, health and welfare fund contributions. The Energy Authority will serve as liaison between the School District and the bookkeeping firm in providing approved invoices and time sheets for payment. Article B. YUPIIT SCHOOL DISTRICT COVENANTS The School District will: 1. Obtain all titles, easements and other approvals necessary to provide clear title and to establish the School District's legal right and authority to construct, maintain, and operate the Project and its facilities. 2. Notwithstanding the provisions of Paragraph 8 of this Article, ensure that the Energy Authority and its contractors and consultants have reasonable access to Project facilities and records for inspection during construction of the Project and over the life of Project facili- ties for performance analysis and testing. 3. Designate the Energy Authority as its agent in the design and construction management of the Project and delegate to the Energy Authority full authority over all decisions in connection with construc- tion, start-up, and run-in of the Project, including approval of con- tractor selection, approval of plans and specifications; choices of scheduling, manpower, methods, procurement, materials, and procedures for the Project; disposition of surplus equipment; performance of final inspection; and issuance of a Notice of Project Completion. 4. If available, provide local labor, manpower assistance, and/or construction equipment to Energy Authority personnel on-site, upon request, in connection with construction of the Project. 5. Authorize the Energy Authority to procure the bookkeeping services as described in Article A, Paragraph 5, on the School Dis- trict’s behalf, and authorize the bookkeeping service to perform the services described in Article A, Paragraph 5, on the School District's behalf, including payment of approved invoices and time sheets. 6. Upon execution of this Agreement, provide funding in the amount of $ directly to the Energy Authority for Project expenditures. These funds will be used for Project related costs including, but not limited to, contractual services, travel, per diem, and Energy Authority direct and indirect personal services costs and non-personal services costs that are normally distributed on the basis of direct labor hours in accordance with standard Energy Authority accounting procedures. The School District will not reimburse the Energy Authority for legal expenses in connection with the Project not otherwise indemnified under Article C, Paragraph 1 of this Agreement. DDC10199/2 DRAFT Tuluksak Agreement Page | 3 of 6 7. Upon execution of this Agreement, provide funding in the amount of $ to the accounting firm described in Article A, Paragraph 5. These funds will be used for Project related costs including, but not limited to, materials, labor, freight, contractual services, equipment, supplies, and additional funding to the Energy Authority Rural Energy Construction Assistance account if needed during the course of the Project. 8. Maintain Project related accounting records for four years following completion of the Project and allow the Energy Authority to examine said records at any reasonable time. 9. Within fifteen days after issuance of a Notice of Project Completion by the Energy Authority, sign an acknowledgement of Project completion or identify in writing any specific task that the School District considers incomplete. 10. Upon completion of the Project, operate and maintain Project facilities in strict compliance with NEC and NESC rules and with stan- dard utility project management and operation and mpintenance practices for the life of Project facilities. pits lt te. glica Article C. MUTUAL COVENANTS prod BP <a f waco The Energy Authority and the School District agree to the following: 1. Indemnification. (a) The Energy Authority and the School District shall indemnify, save harmless and defend the other party to this Agreement, its officers, agents, servants, and employees from all liability, including costs and expenses, for all actions or claims resulting from injuries or damages sustained by any person or property arising directly or indirectly as a result of any error, omission or negligent act of the indemnifying party, its officers, agents, servants, or employees or anyone directly or indirectly employed by it in the performance of this Agreement. The labor and manpower assistance provided by the School District under Article B, Paragraph 4 of this Agreement shall be considered the officers, agents, servants, or employ- ees of the School District for purposes of construing these indemnifica- tion provisions. (b) All actions or claims, including costs and expenses, resulting from injuries or damages sustained by any person or property arising directly or indirectly from the School District's performance of this Agreement which are caused by the joint negligence of the Energy Author- ity and the School District shall be apportioned on a comparative fault basis. Any such joint negligence on the part of the Energy Authority must be a direct result of active involvement by the Energy Authority. DDC10199/3 DRAFT Tuluksak Agreement Page 4 of 6 2. Declaration of Cooperation. The parties to this Agreement agree to make every reasonable effort to promote timely completion of the Project through responsiveness and cooperation by : . At the request of either party to this Agreement, Project meetings with the other party will be held within seven calendar days after the receipt of such request, in writing, by the other party. All such meetings will be held in Anchorage unless a different location is mutually agreed upon. 3. School District Not Being Agents of the Energy Authority. It is agreed that the School District, its officers, agents, servants and employees shall act in an independent capacity and not as agents of the Energy Authority in performance of this Agreement. 4. Disputes. Either party to this Agreement may bring an action against the other party in the superior court for the State of Alaska to resolve a dispute arising under this Agreement. Any lawsuit involving this Agreement shall be heard by the superior court, Third Judicial District at Anchorage. All legal cots, including attorneys’ fees not otherwise provided for in this Agreement, shall be allocated pursuant to Alaska Civil Rule 82. 5. Rights of Other Parties. It is the intent of the parties that this Agreement confer no rights to any third parties. 6. Binding Effect. This Agreement and all of its terms, cove- nants and conditions represent the entire agreement and shall extend to and be binding upon the respective heirs, executors, administrators, grantees, successors and assigns of the parties to this Agreement. ies Severability. If any section, paragraph, clause or provision of this Agreement or any agreement referred to in this Agreement shall be finally adjudicated by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall be unaffected by such adjudication and all the remaining provisions of this Agreement shall remain in full force and effect as if such section, paragraph, clause or provision or any part thereof so adjudicated to be invalid had not been included herein. 8. Declaration of Public Benefit. The parties acknowledge that the Project is to be constructed for the benefit of the general public and will not deny any person use of Project facilities or use of power produced from Project facilities due to race, religion, color, sex, or national origin. 9. Notices. Any notice required of either party shall be in writing and, unless receipt of such notice is expressly required by the terms of this Agreement, shall be deemed served when deposited in the mail in a sealed envelope, with sufficient first class postage affixed, and addressed to the appropriate party. The notices shall be sent to DDC10199/4 DRAFT Tuluksak Agreement Page 5 of 6 each party's place of business, which in the case of the Energy Authori- ty shall be: Robert E. LeResche, Executive Director Alaska Energy Authority P.O. Box 190869 Anchorage, Alaska 99519-0869 (907) 561-7877 and in the case of the School District shall be: THIS AGREEMENT has been reviewed, agreed to, and executed by .the following parties: for the ALASKA ENERGY AUTHORITY by (Signature) Date (Name Printed) Title STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) The foregoing Agreement was acknowledged before me this day of , 1989 by , of the Alaska Energy Authority, an Alaskan Corporation, on behalf of the corporation. Notary Public, State of Alaska My commission expires: Approved: Assistant Attorney General Date DDC10199/5 DRAFT Tuluksak Agreement Page 6 of 6 for the YUPIIT SCHOOL DISTRICT by (Signature) Date (Name Printed) Title STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) The foregoing Agreement was acknowledged before me this day of , 1989 by , of the Yupiit School District, on behalf of the School District. Notary Public, State of Alaska My Commission expires: DDC10199/6 7/10/89. Mr. Ralph Fuller Mechanical Piping Contractors P.O.Box 771396 Eagle River, Ak. 99577 Reference: Our phone conversation of 7/6/89 Subject: Proposed water system for Tuluksak schools. Dear Mr. Fuller: Alaska Energy Authority staff has reviewed the proposed project design as presented (Drawings Ml, M2, and El) and can offer the following comments in reference to the projects impact on Tuluksak's electrical system: Drawing M2: 1. This drawing offers no information to substantiate the need for 67 gpm pressure pumps with 140 ft. of head capacity. In order to reduce system wide voltage drops in connection with the start of these pumps, it is important to size these pumps as small as possible and to install reduced voltage motor starters. 2. It would be prudent to utilize two or three smaller pressure pumps with independent controls adjusted to activate the pumps at different pressure levels. 3. Considering the real cost of power in rural communities it would be prudent to pre-heat the water with heat from the school's heating system prior to transfer to the high school and consequently utilize electric heat tracing for emergencies only. System peak loads are typically encountered during periods of extreme cold and any addition of load during such periods is highly undesireable. 4. This drawing offers no information on the proposed ozone treatment system; the appropriateness of system sizing cannot be verified. Drawing El: 5. This drawing offers no information in reference to the types of equipment included in the ozone treatment system or the in-rush currents which can be expected. Also, no information is offered concerning estimated power consumption per gallon or per year. 6. General comments: The design as presented may be one solution to the water problems encountered in Tuluksak; however, no information has been offered to substantiate that it is the best solution. It is obvious that this system will have very significant impacts on the power system in Tuluksak, and depending on the usage pattern by the ozone treatment system, it is conceivable that this system will cause the quality of power to deteriorate. It is simply not desireably to instantaneously add loads of this magnitude to a system where the total load at times will be 50 kw or less. System peak loads can be expected to increase by 25 kw not counting motor starting peaks, and this necessitates the continous operation of an additional 25 kw of spinning capacity. As total run time will be limited, the over all load factor of the electrical system will be reduced resulting in reduced fuel efficiency and increased operations and maintenance cost per kilowatthour produced. In order to avoid a situation where a water system problem is simply changed to a power system problem, it is recommended that alternative and less power consuming solutions be investigated prior to the final selection of a system concept. If you have any questions, please do not hesitate to contact me in writing or at 261 7261 during normal business hours. Sincerely, Donald L. Shira Director/Program Development & Facilities Operations. cc: Mr. Roger Helmer, Yupiit School District. Mr. Boyd Morgenthaler, Adams, Morgenthaler And Company Mr. David D. Adams, Adams, Morgenthaler And Company. yo \ \ RECEIVED Th \ Mechanical Piping Contractors jJUL10 1989 , ALASKA ENERGY AUTHORITY — “8 July 1989 Mr. Don Shira Alaska Energy Authority P.O. Box 190869 Anchorage, Alaska 99519-0869 Subject: Tuluksak School Water System Upgrade Dear Mr.Shira: This correspondence is a recapitulation of the points covered in our telephone conversation on Wednesday (5 July) regarding the comments made by Peter Hansen of your office. , On Tuesday (27 June) I called Mr. Hansen to discuss the power requirements needed to operate the new water system Tuluksak School so that the new genera- tors could be sized to accommodate the load. Also at that time Pat Rausch (Mechanical Engineer) and Pat Cusick (Electrical Engineer) of Adams, Morgenthaler & Company spoke with Mr. Hansen to explain as well as answer any questions about the new water system. (See copy of Adams, Morgenthaler & Company's letter to Mr. Hansen) I am aware of a telephone conversation on Wednesday (28 June) by Mr. Hansen to the Department of Environmental Conservation (DEC) inquiring about a variance to the Uniform Plumbing Code (UPC) to lower the requirements of the amount of water needed. In this same conversation he also stated that the new system was over- sized, over-built, and that it would not work. On Tuesday ( 27 June) these same comments had been made to me by Mr. Hansen in our telephone conversation. On Thursday (29 June) I delivered a set of prints from Adams, Morgenthaler & Company to the Alaska Energy Authority for Mr. Hansen's review. The Ozone Water Filtration Design was done by Kramer Chin & Mayo Inc. At that time he was out of the office for the afternoon. I asked if it was possible to set up a meeting to discuss the power requirements. On Friday morning (30 June) I called Mr. Hansen to try to arrange a meeting time. I was informed by Mr. Hansen that it was his understanding that I was not an "engineer", but just a "plumber". I agreed that I was not an "engineer". Mr. Hansen then proceeded to tell me, "You're crazy, and out of line for taking on an engineering design of a water system." I then explained "That is why you ean hire engineers to work for you." Mr. Hansen then stated, "The system you have designed won't work and has been over designed." I asked, "How do you figure that?" Mr. Hansen explained, "An ozone system doesn't work and on top of that the Eskimos out there don't take care of anything and really don't deserve anything nice." (907) 696-1414 * PO, Box 771396 ¢ Eagle River, AK 99577 Page 2 Ltr/Shira 2 I asked, "Why did yo submitted?" Mr. - Hans over-sized, and furt I asked again, from the Yup the prints © haven't yet statement rgenthaler, Adams, Morgenthaler & Wayne Da e Kri Chi { TULUKSAK POWER SALES AGREEMENT THIS POWER SALES AGREEMENT, entered into this day of , 1989, between the City of Tuluksak (City) and the Yupiit School District (District) outlines the responsibilities of the parties in connection with the sale of non-firm power by the District to the City, This Power Sales Agreement represents the entire agreement between the (_, <paaties-and-may- only be modified by the mutual consent Of pit pertioerinaweiting. Joi Fey oF ThlukseK cinad the Supiet Schoel Disterct nel ie tapi? scheel diehick 4 nd Coty of Atluksak, ur weitiags Article A. CITY OF TULUKSAK COVENANTS ‘ The City of Tuluksak will: 1. Grant all necessary access for the District and its consultants and contractors to property owned or operated by the City as necessary for the construction, operation, and maintenance of the facilities necessary for the District’s performance under this Power Sales Agreement. 2. Except for sales taxes in force at the time of entering into this Power Sales Agreement, refrain from levying any taxes or fees, and refrain from requiring payment for any licenses, permits, or certificates of any kind for any purpose from any vendor, consultant, contractor, or any other entity involved with any phase of the Power Sales Agreement. 3. For the purpose of this Power Sales Agreement, agree not to assert tribal sovereignty as a defense against enforcement of the City’s obligation under this Power Sales Agreement. 4, Prior to its authorized officer signing this Power Sales Agreement, draft and pass a City Council Resolution in which this Power Sales Agreement is recognized and agreed to as being the sole governing contract for the sale of power to the City by the District. 5; Operate and maintain the Tuluksak power distribution system in accordance with prudent utility standards and-in-the event this-is not deres to hold harmless the District for any legal action resulting. 6. Agree to purchase all power for all utility customers in Tuluksak from the District at a rate of $0.25 per kwh. This rate will be adjusted each year according to the cost of fuel delivered to the District f.0.b. Tuluksak and according to the Consumer Price Index in Anchorage as follows: Cost per kwh = $0.125 x new fuel cost per gallon/$1.25 + $0,125 x new Consumer Price index/(Index 4/89) Page 1 of 3 pages. City Initials: C “th District Initials:_S 6.) 10. Agree to pay for all power purchased from the District no later than 30 calendar days from receipt of invoice. Agree to pay interest of 1.5% per month on all amounts not paid within 30 calendar days of receipt of invoice from the District. Agree that the District shall cease to sell and provide electricity to the City if payment is not made within 45 calendar days of receipt of invoice from the District. Agree to transfer the Certificate of Convenience and Public Necessity only to entities which prior to any such transfer agree in writing to all parties to this Power Sales Agreement to honor all aspects of this Power Sales Agreement. Article B. YUPIIT SCHOOL DISTRICT COVENANTS The Yupiit School District will: 1. 2. Operate and maintain the Tuluksak school generation system in accordance with prudent utility standards on a continuous basis, 12 months per year. Agree to provide all the power needed by the City at the rate established in Article A@ Item 6. Article C. MUTUAL COVENANTS The City and the District agree to the following: 1. Term of This Power Sales Agreement. This Power Sales Agreement expires at the end of June 30, 1999. Hold Harmless Agreement. As to all actions taken pursuant to and under color of this Power Sales Agreement, the City and the District shall indemnify, save, and hold harmless, and defend the other party to the Agreement, their officers, agents, servants, and employees, from all costs and any other amounts which the other parties, their officers, agents servants, and employees become obligated to pay on account of any demands, claims, liabilities, or losses arising out of, or in any way connected with the acts or omissions of the indemnifying party, its officers, agents, servants, and employees. Declaration of Cooperation. The parties to this Power Sales Agreement agree to make every reasonable effort to initiate the Power Sales Agreement no later than 10/1/89 through responsiveness and cooperation. Disputes. This Power Sales Agreement shall be governed by the laws of the State of Alaska. Any lawsuit involving this Power Sales Agreement shall be heard by the Superior Court, Third Judicial District at Anchorage. Page 2 of 3 pages. City Initials: Clu District Initials: 5, &, D. 5. Rights of Other Parties. It is the intent of the parties to this Power Sales Agreement to confer no rights to any third parties. THIS POWER SALES AGREEMENT has been reviewed, agreed to, and executed by the following parties: CITY OF TULUKSAK Cl fa reset View President CL ofers t- 23 -¥4 Mager Date STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) The foregoing Power Sales Agreement was acknowledged before me this 23 day of Ayr { 1989, by CL bia Vinee vice eS for the City of Tul uksak, a Second Class City in Alaska, on behalf of the City of Tuluksak. Notary Public, State of Alaska My commission expires: YUPIIT SCHOOL DISTRICT Bradley A. Raphel, Superintendent STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) The foregoing Power Sales Agreement was acknowledged before me this day of 1989, by Bradley A. Raphel, Superintendent for the Yupiit School District. Notary Public, State of Alaska My commission expires: Page 3 of 3 pages. City Initials: Cwm District Initials: S 5. D. TULUKSAK POWER SALES AGREEMENT THIS POWER SALES AGREEMENT, entered into this 23 day of Aer 1, 1989, between the City of Tuluksak (City) and the Yupiit School District (District) outlines the responsibilities of the parties in connection with the sale of non-firm power by the District to the City. This Power Sales Agreement represents the entire agreement between the =pasties-and-may only be modified by the mutual consent of 125, writing, Dor tu of ThlukKK and the Yupiet Schoel Disterct cinel Hepit? scheol dietivch & ad Cty of Filuksak, Ww“ weetyine * Article A. CITY OF TULUKSAK COVENANTS The City of Tuluksak will: 1. Grant all necessary access for the District and its consultants and contractors to property owned or operated by the City as necessary for the construction, operation, and maintenance of the facilities necessary for the District’s performance under this Power Sales Agreement. 2. Except for sales taxes in force at the time of entering into this Power Sales Agreement, refrain from levying any taxes or fees, and refrain from requiring payment for any licenses, permits, or certificates of any kind for any purpose from any vendor, consultant, contractor, or any other entity involved with any phase of the Power Sales Agreement. 3. For the purpose of this Power Sales Agreement, agree not to assert tribal sovereignty as a defense against enforcement of the City’s obligation under this Power Sales Agreement. 4. Prior to its authorized officer signing this Power Sales Agreement, draft and pass a City Council Resolution in which this Power Sales Agreement is recognized and agreed to as being the sole governing contract for the sale of power to the City by the District. 5. Operate and maintain the Tuluksak power distribution system in accordance with prudent utility standards and+in-the event this-is not done; to hold harmless the District for any legal action resulting. 6. Agree to purchase all power for all utility customers in Tuluksak from the District at a rate of $0.25 per kwh. This rate will be adjusted each year according to the cost of fuel delivered to the District f.0.b. Tuluksak and according to the Consumer Price Index in Anchorage as follows: Cost per kwh = $0.125 x new fuel cost per gallon/$1.25 + $0.125 x new Consumer Price index/(Index 4/89) Page 1 of 3 pages. City Initials: C “t _ District Initials: S 6D 10. Agree to pay for all power purchased from the District no later than 30 calendar days from receipt of invoice. Agree to pay interest of 1.5% per month on all amounts not paid within 30 calendar days of receipt of invoice from the District. Agree that the District shall cease to sell and provide electricity to the City if payment is not made within 45 calendar days of receipt of invoice from the District. Agree to transfer the Certificate of Convenience and Public Necessity only to entities which prior to any such transfer agree in writing to all parties to this Power Sales Agreement to honor all aspects of this Power Sales Agreement. Article B. YUPIIT SCHOOL DISTRICT COVENANTS The Yupiit School District will: 1. 2. Operate and maintain the Tuluksak school generation system in accordance with prudent utility standards on a continuous basis, 12 months per year. Agree to provide all the power needed by the City at the rate established in Article A® Item 6. Article C. MUTUAL COVENANTS The City and the District agree to the following: 1. Term of This Power Sales Agreement. This Power Sales Agreement expires at the end of June 30, 1999. Hold Harmless Agreement. As to all actions taken pursuant to and under color of this Power Sales Agreement, the City and the District shall indemnify, save, and hold harmless, and defend the other party to the Agreement, their officers, agents, servants, and employees, from all costs and any other amounts which the other parties, their officers, agents servants, and employees become obligated to pay on account of any demands, claims, liabilities, or losses arising out of, or in any way connected with the acts or omissions of the indemnifying party, its officers, agents, servants, and employees. Declaration of Cooperation. The parties to this Power Sales Agreement agree to make every reasonable effort to initiate the Power Sales Agreement no later than 10/1/89 through responsiveness and cooperation. Disputes. This Power Sales Agreement shall be governed by the laws of the State of Alaska. Any lawsuit involving this Power Sales Agreement shall be heard by the Superior Court, Third Judicial District at Anchorage. Page 2 of 3 pages. City Initials: C In District Initials: S, , DO. 5. Rights of Other Parties. It is the intent of the parties to this Power Sales Agreement to confer no rights to any third parties. THIS POWER SALES AGREEMENT has been reviewed, agreed to, and executed by the following parties: CITY OF TULUKSAK Cl fa NAR EEH r View President dese ere 2 f_ 23-99 Mayor Date STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) The foregoing Power Sales Agreement was acknowledged before Es this D3 day of 1989, by lr Pee ee CCM Mayer for the City of Tuluksak, a Second Class City in Alaska, on behalf of the City of Tuluksak. Notary Public, State of Alaska My commission expires: YUPIIT SCHOOL DISTRICT Bradley A. toon Supdrintendent STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT) The foregoing Power Sales Agreement was acknowledged before me this day of 1989, by Bradley A. Raphel, Superintendent for the Yupiit School District. Notary Public, State of Alaska My commission expires: Page 3 of 3 pages. City Initials: Cw District Initials: 4. . NWS NER Ys PN ~ Xs WHEREAS, the purchase of electricity from the Yupiit School District would be beneficial to the City of Tuluksak and its citizens. THEREFORE BE IT RESOLVED, that the City Council of Tuluksak agrees to enter into a Power Sales Agreement contract with the Yupiit School District as appended to this resolution. 4 Passed this 234 day of Alper: / , 1989 at Tuluksak, Alaska. YY / [ikiege’ PLY (ouncil Member Aid ox, ee CaS be ee 2 Vite President Council Member — Council Member . Vy Ly) . Z OK Vy FZ Lapppina) 5 3f™ Council Member Sohn yn Chey. €ouncil Member 4A LLY Sy vesiteals .