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HomeMy WebLinkAboutTakotna Project Agreements Contracts & Budget 1988STATE OF ALASIQA 7 mxomnonne DEPT. OF COMMUNITY & REGIONAL AFFAIRS 1001 NOBLE STREET SUITE 430 RURAL DEVELOPMENT DIVISION / CIREANTS ALASKA S271 June 17, 1988 PEPTIVEN RY Dick Newton, President Takotna Community Association, Inc. P.O. Box 86 Takotna, AK 99675 Dear Mr. Newton: Re: REDI Grant Agreement Enclosed please find five copies of your REDI grant agreement. Please read and become familiar with the provisions, terms and conditions of this grant agreement. The grant agreement totals $100,000 which will provide funds for electrification upgrade for the Community of Takotna. Please sign all five copies of the grant agreement and return four of them to my office as soon as possible. After signature by this office, and approval by the Department of Community and Regional Affairs Central Office and the Division of Administrative Services, I will send you a fully executed copy of the grant agreement. If you have any questions or need assistance, please don't hesitate to contact me at the address above or at 452-4468. Sincerely, 7? a (pb aope—— Jo E. Cooper Community Development Specialist Enclosures State of Alaska Department of Community and Regional Affairs Rural Development Division Rural Economic Development Initiative Amount of State Funds $100,000 Department Contact Person ee Jo E. Cooper Title Street/P.O. Box 00] Noble ite 430 City/State/Zip Fairbanks, AK 99701 Phone 452-4468 . Phone 298-2211 AGREEMENT The Alaska Department of Community and Regional Affairs, Rural Development Division (hereinafter Department’) and ___Takotna Community Assoc. Ss Ahereinafter 'Grantee’) agree as set forth herein. Section I. The Department shall pay the Grantee for the performance of the project work under the terms outlined in this agreement. The amount of the payment is based upon project expenses incurred which are authorized under this agreement. In no event shall ~ the payment exceed $100; 000 —~-.- il SCETATLTTETO ESTATE ESC TE Te Section II. The Grantee shall perform all of the work required by this agreement. Section III. The work to be performed under this agreement shall begin June 20, 1988 and shall be completed no later than June 30, 1989 R Section IV. The agreement consists of this page and the following: ATTACHMENT A - Standard provisions ATTACHMENT B - Scope of Work ATTACHMENT C - Payment Method AMENDMENTS - Any fully executed amendments to this agreement APPENDICES: Appendix A- Audit Regulations Appendix B - Audit Compliance Supplement Appendix C - State Laws and Regulations Appendix D - Special Requirements and Assurances For Federally Funded Projects reeset irate anoeud| Sema oa en Printed Name and Title Printed Name and Title Dick Newton, Director Michael Harper, Director, RDD This agreement takes effect upon signature by the Department : — ARTICLE 1 ARTICLE 2 ARTICLE 3 ATTACHMENT A - STANDARD PROVISIONS DEFINITION: A. "Department" refers to the Department of Community and Regional Affairs within the State of Alaska. INDEMNIFICATION: It is understood and agreed that this Grant Agreement is solely for the benefit of the parties to the Grant Agreement and gives no right to any other party. No joint venture or partnership is formed as a result of this Grant Agreement. The Grantee, its successors and assigns, will protect, save, and hold harmless the Department and the State of Alaska and their authorized agents and employees, from all claims, actions, costs, damages, or expenses of any nature whatsoever by reason of the acts or omissions of the Grantee, its subcontractors, assigns, agents, contractors, licensees, invitees, employees, Or any person whomever arising out of or in connection with any acts or activities authorized by this Grant Agreement. The Grantee further agrees to defend the Department and the State of Alaska and their authorized agents and employees in any litigation, including payment of any costs or attorney's fees for any claims or action commenced thereon arising out of or in connection with acts or activities .. authorized by this .grant__.agreement. This obligation shall not include such claims, costs, damages, or expenses which may be caused by the - sole negligence of the Department or the State of Alaska or their authorized agents or employees: Provided, that if the claims or damages are caused by or result from the concurrent negligence of (a) the Department and the State of Alaska and their agents or employees, and (b) the Grantee, its agents, or employees, this indemnity provision shall be valid and enforceable only to the extent of the negligence of the Grantee, or Grantee's agents or employees. LEGAL AUTHORITY The Grantee certifies that it possesses legal authority to accept grant funds under the State of Alaska and to execute the project described in this Grant Agreement by signing the Grant Agreement document. The Grantee's relation to the Department and the State of Alaska shall be at all times as an independent Grantee. a ARTICLE 4 ARTICLE 5 ARTICLE 6 ARTICLE 7 ARTICLE 8 ARTICLE 9 WAIVERS No conditions or provisions of this Grant Agreement can be waived unless approved by the Department in writing. The Department's failure to insist upon strict performance of any provision of the Grant Agreement, or to exercise any right based upon a breach thereof, or the acceptance of any performance during such a breach, shall not constitute a waiver of any right under this Grant Agreement. ACCESS TO RECORDS The Department and duly authorized officials of the State of Alaska shall have full access and the right to examine, excerpt, or transcribe any pertinent documents, papers, records, and books of the Grantee, and of persons or organizations with which the Grantee may contract, involving transactions related to the project and this Grant Agreement. : REPORTS The Grantee, at such times and in such forms as the Department may require, shall furnish the Department with such periodic reports as it may request pertaining to the activities undertaken pursuant to this Grant Agreement, including the final close-out report, the costs and obligations incurred in connection therewith, and any other matters covered by this Grant Agreement. “RETENTION OF RECORDS oo -The Grantee shall retain financial and other records relating to the performance of this Grant Agreement for a period of three years from completion of the project, or until final resolution of any audit findings, claims, or litigation related to the grant. ASSIGNABILITY The Grantee shall not assign any interest in this Grant Agreement and shall not transfer any interest in the same (whether by assignment or novation). FINANCIAL MANAGEMENT AND ACCOUNTING The Grantee shall establish and maintain a financial management and accounting system that conforms to generally accepted accounting principles. ARTICLE 10 ARTICLE 1l ARTICLE 12 ARTICLE 13 PROGRAM INCOME Program income will be used first by the Grantee before drawing additional funds to complete activities included in the Project Summary and referenced application unless otherwise specified in an approved lump sum agreement. Unanticipated program income shall be used to increase the overall project budget. Program income received after close-out of this Grant Agreement shall be used to continue a program of eligible community development activities of benefit to low- and moderate-income persons, as described in the close-out performance report. Interest earned on federal or state funds shall not be retained by the Grantee. The Grantee must remit such interest to the Department so that it can be returned to the U. S. Treasury or, in the case of state funds, to the State of Alaska, Rural Economic Development Initiative program. AMENDMENTS AND MODIFICATIONS The Grantee or _ the Department may request an amendment or modification of this Grant Agreement. However, such amendment or modification shall not take effect until approved, in writing, by the Department and the Grantee. RECORDKEEPING The Grantee agrees to keep such records as the Department may -require.--Such -records will.-include .------ information pertaining to grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays and income. They will also include information pertaining to project performance and _ efforts to comply . with the provisions of the Grant Agreement. OBLIGATIONS REGARDING THIRD-PARTY RELATIONSHIPS None of the work specified in this Grant Agreement shall be subcontracted by the Grantee without prior approval of the Department. No permission for subcontracting shall create, between the Department or State of Alaska and the subcontractor, any contract or any other relationship. ARTICLE 14 ARTICLE 15 ARTICLE 16 The Grantee shall remain fully obligated under the provisions of this Grant Agreement notwithstanding its designation of any third Party or parties of the undertaking of all or any part of the project described herein. Any subcontractor that is not the Grantee shall be required by the Grantee to comply with all lawful requirements of the Grantee necessary to ensure that the project is carried out in accordance with the provisions of this Grant Agreement. The Grantee shall bind all subcontractors to each “and every applicable Grant Agreement provision. Each subcontract for work to be performed with funds granted under this Grant Agreement shall specifically include a provision that the Department and the State of Alaska are not liable for damages or claims from damages arising from any subcontractor's performance or activities under the terms of the subcontracts. i CONFLICT OF INTEREST No officer or employee of the Department; no member, officer, or employee of the Grantee or its designees or agents; no member of the governing body of the jurisdiction in which the project is undertaken or located; and no other official of such locality or localities who exercises any functions or responsibilities with respect to the project during his or her tenure, shall have any personal or pecuniary gain or interest, direct or indirect, in any contract, subcontract, or the proceeds thereof, for _.work..to be _ performed in. connection with the project assisted under this Grant Agreement. The Grantee shall incorporate, or cause to incorporate, in all such contracts or subcontracts, a provision prohibiting such interest pursuant to the purpose of this provision. POLITICAL ACTIVITY No portion of the funds provided hereinunder shall be used for any partisan political activity or to further the election or defeat of any candidate for public office or influence the approval or defeat of any ballot issue. NOTICES The Grantee shall comply with all public notices or notices to individuals required by applicable state and federal laws and shall maintain a record of this compliance, ARTICLE 17 ARTICLE 18 ARTICLE 19 PROHIBITION AGAINST PAYMENT OF BONUS OR COMMISSION The assistance provided under this Grant Agreement shall not be used in payment of any bonus or commission for the purpose of obtaining approval of the application for such assistance or any other approval or concurrence under this contract provided, however, that reasonable fees or bona fide technical consultant, managerial, or other such services, other than actual solicitation, are not hereby prohibited if otherwise eligible as project costs. TERMINATION BY MUTUAL AGREEMENT This Grant Agreement may be terminated, in whole or in part, prior to the completion of contract project activities when both parties agree that continuation is not feasible or would not produce beneficial results commensurate with the further expenditure of funds. The Department will determine whether an environmental review of the cancellation is required under state and/or Federal law. The parties must agree on the termination conditions, including effective date and the portion to be terminated. The Grantee shall not incur new obligations for the terminated portion after the effective date, and shall cancel as many outstanding obligations as possible. The Department shall make funds available to the Grantee to pay for allowable expenses incurred before the effective date of termination. --TERMINATION FOR CAUSE | ....-. <2: eee -- ee If the Grantee fails to comply with the terms of this Grant Agreement, or fails to use the grant for only those purposes set forth herein, the Department may take the following actions: A. Suspension - After notice in writing by Certified mail to the Grantee, suspend the grant and withhold any further payment or prohibit the Grantee from incurring additional obligations of grant funds, pending corrective action by the Grantee or a decision to terminate, Response must be received within fifteen days of receipt of the written notice. B. Termination - Terminate the grant in whole, or in part, at any time before the final grant payment is made. The Department shall promptly notify the Grantee in writing of its determination to terminate, the reason for such termination, and the effective date of the termination. Payments made to the Grantee or recoveries by the Department shall be in accordance with the legal rights and liabilities of the parties. ARTICLE 20 WITHDRAWAL OF FUNDS In the event funding from the state, federal, or other sources is withdrawn, reduced, or limited in any way after the effective date of this Grant Agreement and prior to normal completion, the Department may terminate the agreement, reduce funding, or renegotiate subject to those new funding limitations and conditions. A termination under this article shall be implemented under the Same conditions as a termination under Article 19 of this Attachment. ARTICLE 21 RECOVERY OF FUNDS In the event of a default or violation of the terms of the Grant Agreement by the Grantee, the Department may institute actions to recover all or part of the project funds paid to the Grantee. Repayment by the Grantee of grant funds under this recovery provision shall occur within 30 days of demand. All remedies conferred on the Department by this agreement or any other instrument or agreement are cumulative, not exclusive and may be exercised concurrently or consecutively at the Department's option. ARTICLE 22 DISPUTES Except as otherwise provided in this agreement, any dispute concerning a question of fact arising under this agreement that is not disposed of by mutual agreement shall be decided by the Department, which shall reduce its decision to writing and mail, or otherwise furnish a copy thereof, to the Grantee. The decision of the Department shall be final and conclusive. This "Disputes" clause does not preclude the consideration of questions of law in connection with the decision provided for in the preceding paragraph provided that nothing in this Grant Agreement shall be construed as making final the decisions of any administrative official, representative, or board on a question of law. = 16 = ARTICLE 23 e ARTICLE 24 ARTICLE 25 ARTICLE 26 ARTICLE 27 JURISDICTION This Grant Agreement shall be governed by the law and statutes of the State of Alaska. The venue of any suit hereunder may be in the Superior Court for the First Judicial District, Juneau, Alaska. OWNERSHIP OF PROJECT/CAPITAL FACILITIES The Department makes no claim to any capital facilities or real property improved or constructed with funds under this Grant Agreement and, by this grant of funds does not and will not acquire any ownership interest or title to such property of the Grantee. The Grantee shall assume all liabilities arising from the ownership and operation of the project and agrees to hold the Department and the State of Alaska harmless from any and all causes of action arising from the ownership and operation of the project. : SITE CONTROL If the grant project involves the occupancy and use of real property, the Grantee assures that it has the legal right to occupy and use such real property for the purposes of the grant, and further that there is legal access to such property. INSURANCE The Grantee is responsible for obtaining any necessary liability insurance. In addition, the Grantee ...shall ....provide..wand maintain __.workers'. compensation insurance as required by AS 23.30 for all employees engaged in work under this Grant * Agreement. The Grantee shall require any contractor to provide and maintain workers' compensation insurance for its employees as required by AS 23.30. for Withholding Grant Funds. SUBCONTRACTS FOR ENGINEERING SERVICES In the event that the Grantee subcontracts for engineering services, the Grantee will require that the engineering firm certify that it is authorized to do business in the State of Alaska. In the event that the engineering firm is also the project administrator, the Grantee shall require that the bond or insurance shall be for not less than the amount of the entire project. See additional comments under Conditions ARTICLE 28 ARTICLE 29 ARTICLE 30 GOVERNING LAW This Grant Agreement is governed by the laws of the State of Alaska. The Grantee shall perform all aspects of this project in compliance with all appropriate laws and _ regulations. It. is» the responsibility of the Grantee to ensure that all permits required for the construction and operation of this project by the Federal, State or Local governments have been obtained. BUDGET FLEXIBILITY Notwithstanding the provisions of Article ll, Attachment A, the Grantee may revise the project budget in Attachment B without a formal amendment to this agreement. Such revisions are limited to a maximum of 10% of the total amount of this agreement of $10,000, whichever is less over the entire term of this . agreement. Such budget revisions shall be limited to changes to existing budget line items, and the creation of new budget line items which are within the scope of the project. Budget revisions may not be used to increase any budget item for project administrative expenses. Changes to the budget beyond the limits authorized by this provision may only be made by a formal amendment to this agreement. EQUAL EMPLOYMENT OPPORTUNITY (EEO) -The --Grantee may ..not_. discriminate. against _.any employee or applicant for employment because of race, religion, color, national origin, age, physical handicap, sex, marital status, changes in marital status, pregnancy or parenthood. The Grantee shall post in a conspicuous place, available to employees and applicants for employment, a notice setting out the provisions of this paragraph. The Grantee shall state, in all solicitations or advertisements for employees to work on_ state funded projects, that it is an equal opportunity employer (EEO) and that all qualified applicants will receive consideration for employment without regard to race, religion, color, national origin, age, physical handicap, sex, marital status, changes in marital status, pregnancy or parenthood. ARTICLE 31 ARTICLE 32 ARTICLE 33 The Grantee shall include the provisions of this EEO article in every contract relating to this Grant Agreement and shall require the inclusion of these provisions in every agreement entered into by any of its contractors, so that those provisions will be binding upon each contractor and subcontractor. PUBLIC PURPOSES The Grantee agrees that the project to which this Grant Agreement relates shall be dedicated to public purposes for its useful life. The benefits of the project shall be made available without regard to race, religion, color, national origin, age, physical handicap, sex, marital status, changes in marital status, pregnancy or parenthood. If the Grantee is a non-municipal entity and if monies appropriated under this grant constitute the sole or principal funding source for the acquisition of equipment or facilities, the Grantee agrees that in the event a municipal corporation is formed which possesses the power and jurisdiction to provide for such equipment or facilities, the Grantee shall offer, without compensation, to transfer ownership of such equipment or facilities to the municipal corporation. If the Grantee is a non-profit corporation that dissolves, the assets and liabilities from the grant project are to be distributed according to statutory law, AS 10.20.290 - 10.20.452. OPERATION AND MAINTENANCE Wie . Throughout the useful life of the project, the Grantee shall be responsible for the operation and maintenance of any facility, equipment, or other items acquired under this grant. ASSURANCE The Grantee shall spend monies awarded under this grant only for the purposes. specified in this Grant Agreement. ARTICLE 34 ARTICLE 35 ARTICLE 36 ARTICLE 37 ARTICLE 38 CURRENT PREVAILING RATES OF WAGE AND EMPLOYMENT PREFERENCE Certain grant projects are constrained by the provisions of AS 36. PUBLIC CONTRACTS. To the extent that such provisions apply to the project which is the subject of this Grant Agreement, the Grantee shall pay the current prevailing rates of wage to employees as required by AS 36.05.010. The Grantee shall also require any contractor to pay the current prevailing rates of wage as required by AS 36.05.010. Further, in accordance with AS 36.10.010, 95 per cent of the work force employed in the completion of this project shall be residents where they are available and qualified. If 10 or fewer persons are employed, then 90 per cent of the project work force shall be residents where they are available and qualified. SEVERABILITY If any provision under this Grant Agreement or its application to any person or circumstance is held invalid by any court of rightful jurisdiction, this invalidity does not affect other provisions of the contract agreement which can be given effect without the invalid provision. PERFORMANCE The Department's failure to insist upon the strict performance of any provision of this Grant Agreement .or to. .exercise any right based upon breach thereof or the acceptance of any performance during such breach, shall not constitute a waiver - of any rights under this Grant Agreement. SOVEREIGN IMMUNITY If the Grantee is an entity which possesses sovereign immunity, it is a requirement of this grant that the Grantee irrevocably waive its sovereign immunity with respect to state enforcement of this Grant Agreement. The waiver of sovereign immunity, effected by a resolution of the entity's governing body, is hereby incorporated into this Grant Agreement. AUDIT REQUIREMENTS The Grantee shall comply with the audit requirements established by 02 aac 45.010, set forth in Appendix A of this Grant Agreement. - 10 - ARTICLE 39 CLOSE-OUT The Department will advise the Grantee to initiate close-out procedures when the Department determines, in consultation with the Grantee, that there are no impediments to close-out and that the following criteria have been met or soon will be met: A. All costs to be paid with grant funds have been incurred with the exception of close-out costs and any unsettled third-party claims against the Grantee. Costs are incurred when goods and services are received or contract work is performed. B. The last required performance report has been submitted. The Grantee's failure to submit a report will not preclude the Department from effecting close-out if it is deemed to be in the state's interest. Any excess grant amount that may be in the Grantee's possession shall be returned by the Grantee in the event of the Grantee's failure to finish or update the report. C. Other responsibilities of the Grantee under this contract agreement and any close-out agreement and applicable laws and regulations appear to have been carried out satisfactorily or there is no further state interest in keeping the grant open for the purpose of securing performance. ATTACHMENT B - SCOPE OF WORK 1. PROJECT DESCRIPTION. The community of Takotna is facing a serious problem with the electrification system, which is resulting in both a fire and safety hazard. Currently a 28% line loss is being experienced. The between-pole splices and all splices made with split nuts must be replaced along with some of the wire. The split nuts loosen with contraction and expansion due to extreme changes in weather, causing a heat-up of a loose splice and using power generated from diesel fuel. A smaller size wire is needed to accommodate 480 volts and between the split nut splices to bring the line loss down to an acceptable figure of 7 to 9%. The switch needs replacement to reduce the power surges and low voltage which now causes damage to electrical appliances throughout the village. The work required to up-grade Takotna's electrification system includes: 1. Rewire Village and/or change the wire between pole splices. 2. Rewire generators and install conduit, install meter base and meter for generator building outlet. (waterproof). 3. Install switch for generator building. 4. Rewire 5. wells, including poles, anchors, meter bases and weatherproof outlets. 5. Hang ‘15 transformers. 6. Change out breakers in existing switch box. 7. Install ground cable and ground rods at generator building and other places where needed. 8. Move 20,000 gallon bulk fuel tank onto village property. 9. Install street lights and metering system. 1. PROJECT DESCRIPTION. (Continued) 10. ‘ Resag service drops where necessary and resag existing distribution lines where needed. a1. Add additional poles and anchors to existing lines as outlined below: POLES ANCHORS 1 - Road Commission 3 - Telephone Building 5 - Wells 2 - School crossing 1 - Chucks 2 - Road Commission 1 - Generator Building 1 - Chuck 2 - Roberts 2 - Schupps 1 - Cosselmon 1 - John Esai 1 - Bar turn 2 - Cosselmon 1 - Gym 2 - Bar turn 1 - Puddens 1 - Store 1 - Gym 2 - Roberts Eep's House This project will provide approximately 12 to 15 full time jobs for about 90 days. In addition, the funds from this grant will assist the Takotna Community Association, Inc. in retaining permanent, part-time employees, including a bookkeeper, meter reader, two generator maintenance people and two part-time maintenance installer people. C ™ Cost Category : REDI tT Other Funds T Total 7 ' state ! Federal & In-Kind : ‘ 1 ' ' : 1$ 720 i$ 46,440 : t BUDGET NARRATIVE LABOR , aren ren The following line items correspond to the tasks numbered 1-11 jdentified in attachment B, Scope of Work. These figures represent estimates of time required to accomplish each task. 1. 5 men/8 weeks 1600 hours @ $15/hr $24,000.00 Zi: 1 man/2 weeks 8 hours @ $15/hr 1,200.00 ‘Jc 1 man/1 week 40 hours 600.00 4. 2 men/3 weeks 240 hours 3,600.00 5. 3 men/2 weeks 240 hours 3,600.00 6. 1 man/1 day 8 hours 120.00 a 2 men/1 week 80 hours 1,200.00 8. 2 men/1 week 80 hours 1,200.00 9. 2 men/1 week 80 hours 1,200.00 10. 2 men/1 week ~ g0 hours 1,200.00 11. 3 men/3 weeks 360 hours 5,400.00 12. Foreman's Pay 2,400.00 TOTAL LABOR $45,720.00 BUDGET NARRATIVE (Continued) FRINGE BENEFITS: $12,477 “payable at the rate of $27.29%, which includes: 6.2 % - ESC 7.51% - FICA 13.58% - Workers Compensation MATERIALS: $31,976 The following is an estimate of the materials/equipment which will be purchased: Material/Equipment Estimated Cost 1500 ft. of 2 aught wire $2,381.00 1000 ft. of 3 aught wire $1,188.00 300 Compression Connectors w/sleeve $ 900.00 50 Cowboys $ 197.50 1 1/2" conduit §& fittings $ 500.00 Bolts/Insulators/Connection Dope $1,000.00 15 - 30 ft Poles classified @ $245/ea $3,675.00 25 Anchor Outfits $2,500.00 3 - 90 amp TED 1364 160 Breakers $ 780.00 10 Meter Bases $1,000.00 10 Meters 750.00 300.00 250.00 400.00 100.00 125.00 $ 10 Waterproof Outlets $ 10 - 8 £t Ground Rods $ 8 Street Lights @ $50/ea $ 1 Spool Copper Ground Wire $ 10 Copper Ground Connectors $ 1 Compression Tool $ 500.00 10 - 10 KBA Transformers $3,000.00 Kline Chicago Grips $ 200.00 Heavy Duty Sawzill $ 200.00 1/2" Volt Shooter $ 150.00 - 3/4" Wood Bits $ 30.00 Kline Lineman's Insulated Pliers $ 75.00 - 30" Volt § Wire Cutters $ 50.00 Volt OHM Meter $ 200.00 Electrical Tape (Black) $ 200.00 1 - 2 Ton Rachet Winch $ 225.00 $ PERU 30 Guy Wrappers 600.00 Pole Number Tags $ 100.00 J - 15 KW Generator $6,400.00 1 Switch Gear $4,000.00 Subtotal $31,976.00 BUDGET NARRATIVE (Continued) e EQUIPMENT RENTED: $4,307 This covers rental of a Backhoe @ $75/hr for approximately 57 hours. FREIGHT: $5,520 This covers all transportation costs for materials and equipment from Anchorage to Takotna. 3. PROJECT MANAGEMENT. The Takotna Community Association was organized in 1980 by all the residents of Takotna, for the purpose of managing the ANSCA 14C3 lands and receiving and administering any State grants received in Takotna. Takotna Community Association incorporated as a non-profit in May, 1982. An accrual bookkeeping system is used. The schedule for this project is as follows: ORDER MATERIALS------------------ upon receipt of funding WORK REQUIRED: (See Attachment B) Item 1 60 days Item 2 14 days Item 3 7 days Item 4 21 days Item 5 14 days Item 6 1 day Item 7 7 days Item 8 14 days Item 9 7 days Item 10 = 7 days Item 11 21 days 4. REPORTING REQUIREMENTS. The Grantee must establish and maintain separate accounting for the use of grant funds. The use of grant funds in any manner contrary to the terms and conditions of this Grant Agreement may result in the subsequent revocation of the grant and any balance of funds under the grant. It may also result in the Grantee being required to return such amounts to the State. The Grantee shall submit a report of grant progress every month until the project is completed. The reports shall be submitted on forms provided by the Department and are due within fifteen (15) days of the end of the month. A final report shall be due within 30 days of the completion of the project. Under no ircumstances shall the Department release funds to the Grantee unless all required progress reports are current. APPENDIX B? INDEMNITY AND INSURANCE Article 1. Indemnification The contractor shall indemnify, save harmless and defend the state, its officers, agents and employees from all liability, in- cluding costs and expenses, for all actions or claims resulting from injuries or damages sustained by any person or property aris- ing directly or indirectly as a result of any error, omission or negligent act of the contractor, subcontractor or anyone directly or indirectly employed by them in the performance of this contract. All actions or claims including costs and expenses resulting from injuries or damages sustained by any person or property aris- ing directly or indirectly from the contractor's performance of this contract which are caused by the joint negligence of the state and the contractor shall be apportioned on a comparative fault basis. Any such joint negligence on the part of the state must be a direct result of active involvement by the state. Article 2. Insurance Without limiting contractor’s indemnification, it is agreed that contractor shall purchase at its own expense and maintain in force at all times during the performance of services under this agreement the following policies of insurance. Where specific limits are shown, it is understood that they shall be the minimum acceptable limits. If the contractor's policy contains higher limits, the state shall be entitled to coverage to the extent of such higher limits. Certificates of Insurance must be furnished to the Contracting Officer prior to beginning work and must provide for a 30 day prior notice of cancellation, nonrenewal or material change. Failure to furnish satisfactory evidence of insurance or lapse of the policy is a material breach and grounds for termina- tion of the contractor's services. : 2.4. Workers’ Compensation Insurance: The contractor shall provide and maintain, for all employees of the contractor en- gaged in work under this contract, Workers’ Compensation Insurance as required by AS 23.30.045. The contractor shall be responsible for Workers’ Compensation Insurance for any subcontractor who directly or indirectly provides servic:2s under this contract. This coverage must include statutory coverage for states in which employees are engaging in work and employer's liability protection not less than $100,000 per person, $100,000 per occurrence. Where applicable, coverage for all federal acts (i.e. U.S.L.& H. and Jones Acts) must also be included. 2.2. Comprehensive (Commercial) General Liability Insurance: with coverage limits not less than $300,000 combined single limit per occurrence and annual aggregates where generally applicable and shall include premises-operations, independent contractors, products/completed operations, broad form property damage, blanket contractual and personal injury endorsements. 2.3. Comprehensive Automobile Liability Insurance: covering all owned, hired and non-owned vehicles with coverage limits not less than $100,000 per person/$300,000 per occurrence bodily injury and $50,000 property damage. 2.4. Professional Liability Insurance: covering all errors, omissions or negligent acts of the contractor, subcontractor or anyone directly or indirectly employed by them, made in the performance of this contract which result in financial loss to the _ State. Limits required are per the following schedule: Contract Amount Minimum Required Limits Under $100,000........ $100,000 per Occurrence/Annual Aggregate $100,000-$499,999 .....$250,000 per Occurrence/Annual Aggregate $500,000-$999,999 .. $1,000,000 or over . -$500,000 per Occurrence/Annual Aggregate Negotiable—Refer to Risk Management 02-093 B-2 (Rev 6-55) ATTACHMENT C - PAYMENT METHOD Prior to the release of any funds under this Grant Agreement, the Grantee must provide evidence of adequate site control, State Fire Marshal approval of building plans, and evidence of all necessary permits and approvals. Grant funds shall be released monthly to the Grantee on a cost reimbursable basis. Upon receipt and approval of monthly progress and financial reports, accompanied by source documentation on a monthly basis (to include vendor billings, timesheets, payroll tax forms and other requested documentation). The Department shall issue payment for costs incurred during the reporting period in accordance with this Grant Agreement. Takotna Community Association will submit an invoice directly from the materials supplier(s) to the Department. The Department will then issue a check directly to the materials supplier(s) for all materials purchased, not to exceed $31,976.00. All purchase orders will be coordinated so that major purchases are freighted together. We anticipate no more than two materials billings during the term of this grant. The Department will directly pay the company providing transportation of materials to Takotna upon receipt of an invoice from the freight company. Freight costs will not exceed $5,520. In no case shall the total amount of payments exceed the total amount of this Grant Agreement. Under no circumstances shall the Department release funds to the Grantee unless all required progress reports are current. Advances An advance in the amount of $25,000.00 will be issued. The advance will be deducted from monthly financial reports, commencing with the financial report due the fifteenth working day of August, 1988. Should earned payments during the term of this Grant Agreement be insufficient to recover the full amount of the advance, the Grantee will repay the unrecovered amount to the Department at termination of the Grant Agreement. Any interest earned on this advance will be returned to the Department. CONDITIONS FOR WITHHOLDING FUNDS Environmental Review (Federally funded projects only) No REDI funds may be spent or incurred by the Grantee until all environmental review requirements established by the Department are met. Notice will be given to the Grantee when they have met all of their responsibilities under this requirement through a Notice of Removal of Grant Conditions. The Grantee will be given 6 months from the date of the Notice of Award to comply with these environmental review requirements. If they are not met in this period of time, REDI funds may be taken from the Grantee and the Grant Agreement terminated. Site Control, Permits, Licenses, and Agreements No REDI funds may be spent or incurred by the Grantee until all (see A, B, C below) documentation verification has been received from Takotna Community Association and approved by the Department. The Grantee will be given 6 months from the date of Notice of Award to comply with the (3_ requirements outlined in A & B & C below) request. If they are not met in this period of time, REDI funds may be taken from the Grantee and the Grant Agreement terminated. A. Takotna Community Association is required to obtain a permit and approval from the State Fire Marshals Office for relocation of the bulk fuel storage tank. No grant funds may be expended or costs incurred prior to receipt of this permit/authorization. Takotna Community Association will submit a copy of the required approvals to the Department before release of grant funds. B. Takotna Community Association is also required to send a copy of a signed letter of agreement between Takotna Community Association and Alaska Power Authority, outlining each entities responsibilities relative to the electrification upgrade, to the Department prior to release of grant funds. Cc. Takotna Community Association will be required to purchase all insurance as outlined in Attachment B(2) prior to incurring costs under this grant, if it is so determined by a letter of advice which the Department has requested from the Office of the Attorney General. If such insurance purchase is required, it is agreed that the $100,000 budget contained herein will be re-negotiated to include the insurance costs and reduce whatever line item(s) are necessary to keep the budget within the $100,000 maximum grant award. CHAPTER 45. GRANT ADMINISTRATION Section 10. Audit requirements 2 AAC‘45.010. AUDIT REQUIREMENTS. (a) As part of the financial information re- quired under AS 37.05.030, a state agency that enters into a financial assistance agreement to provide financial assistance to an entity shall, in coordination with any other state agencies pro- viding financial assistance to that entity, submit to the Department of Administration through the state coordinating agency an audit of the recipient entity if that entity is subject to audit under (b) of this section. The audit must be con- ducted and submitted as described in this section. In order to ensure compliance with this subsection, the audit requirements of this sec- tion must be contained in any financial assis- tance agreement entered into by a state agency. (b) An entity that enters into a financial assis- tance agreement, or agreements, with a cumula- tive total of (1) $300,000 or more during a state fiscal year shall submit to the state coordinating agency, within one year after the end of the audit period, an annual audit report covering the audit period; or (2) at least $100,000 but less than $300,000 during each of two consecutive state fiscal years shall submit to the state coordinating agency (A) a biennial audit report covering the audit period, due within one year after the end of the audit period; or (B) if the recipient entity chooses, or the state requests, an annual audit report covering the audit period, due within one year after the end of the audit period. (c) An audit required by this section must be conducted by an independent auditor, according to the following audit standards: (1) Standards for Audit of Governmental Orvanizations. Programs. Activities and Func- tions. 1981 revision adopted by the comptroller general of the United States; or Register 95, October 1985 APPFTTIXA — AUDIT REGULATIONS ADMINISTRATION (2) generally accepted auditing standards, as accepted by the American Institute of Certified Public Accountants on July 1, 1985, for the entity being audited. (d) The audit report required under (b) of this section must address the following: (1) the systems of internal control, and whether the recipient entity has effective control over, and proper accounting for, revenues, expenditures, assets, and liabilities; (2) the systems established to ensure compli- ance with state statutes and regulations, and applicable ° financial assistance agreements, affecting the expenditure of state money, and whether the recipient entity has complied with those statutes, regulations, and agreements; (3) the recipient entity’s financial trans- actions, financial statements, and accounts; whether those financial statements are presented fairly in accordance with generally accepted accounting principles; and whether the financial statements contain reliable financial data pre- sented in accordance with applicable financial assistance agreements. (e) An audit report required under (b) of this section need not evaluate the effectiveness of a program funded by state financial assistance. However, a program evaluation may be con- ducted or requested by the state agency which entered into the financial assistance agreement. ~ (f) An audit required by this section must cover either the entire operations of the recip- ient entity, or at the option of that entity, only the departments, agencies, or establishments of that entity which received, expended, or other- wise administered state financial assistance dur- ing the audit period. The state coordinating agency may consider a series of audits of a recip- ient entity’s individual departments, agencies, or establishments for the same fiscal year as a single audit. (g) A recipient entity shall provide the state coordinating agency with sufficient copies of each audit report to allow submission of a copy to each state agency providing financial assistance to the entity. The state coordinating agency shall determine if auditing standards have 2 AAC 45.010 ADMINISTRATION been met and will forward a copy of the audit to the Department of Administration and other appropriate state agencies. The state coordi- nating agency shall coordinate resolution of audit exceptions and further audit work in accordance with (h) of this section. (h) Unless additional audit requirements are imposed by state or federal law, a state agency that provides financial assistance to an entity shall accept the audit required by this section in satisfaction of any other audit requirement. If additional audit work is necessary to meet the needs of a state agency, the audit work must be based on audit required by this section and be paid for by the state agency. Audit exceptions noted during an audit required by this section must be resolved by agreement between the recipient entity and the state agency responsible for the financial assistance award agreement in- volved. (i) A third party that receives financial assis- tance through a recipient entity, in an amount | described in (b) of this section, is subject to the applicable requirements of the section. A recipient entity that disburses $100,000 or more in state financial assistance to a third party shall ensure that the third party complies with the requirements of this section. That recipient entity shall also ensure that appropriate cor- rective action is taken within six months after a third party’s noncompliance with an applicable _state statute or regulation, or financial assistance agreement, is disclosed. (j) This section takes effect on August 1, 1985 for an entity subject to audit under (b)(1) of this section and whose fiscal year ends on or after June 30, 1986. (kK) This section takes effect on July 1, 1986 for an entity subject to audit under (b)(2) of this section and whose fiscal year ends on or after June 30, 1987. ()) For purposes of this section, if an entity has not identified its fiscal year, that entity’s fiscal year is July 1 through June 30. (m) For purposes of this section, (1) “audit period” means Register 95, October 1985 (A) for an annual audit under (b)(1) of this section, the recipient entity’s fiscal year in which the entity entered into the financial assistance agreement or agreements; (B) for a biennial audit under (b)(2)(A) of this section, the recipient entity’s two con- secutive fiscal years in which the entity entered into the financial assistance agree- ment or agreements; (C) for an annual audit under (b)(2)(B) of this section, the recipient entity’s fiscal year in which the entity entered into the financial assistance agreement or agreements; (2) “entity” does not include the University of Alaska or any other state agency; (3) “financial assistance” means state grants, contracts, provider agreements, cooperative agreements, and all forms of state financial assistance to an entity, and includes all forms of state financial assistance provided through an entity to a third party; ‘financial assistance” does not include public assistance provided under AS 47; nor does “financial assistance” include goods or services purchased for the direct .administration or operation of state government; for a third party, “financial assis- tance” does not include goods purchased from the third party by a recipient entity for the direct administration or operation of the re- cipient entity; ws. (4) “state coordinating agency” means the Office of Management and Budget (OMB), Office of the Governor, or OMB’s designee. (Eff. 8/1/85, Reg. 95) ‘Authority: AS 37.05.020 AS 37.05.030 AS 37.05.190 2 AAC 45.615 II. IIt. APPENDIX B - STATE AUDIT COMPLIANCE SUP®?T.EMENT DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS RURAL DEVELOPMENT ASSISTANCE PROGRAM PROGRAM OBJECTIVES The objective of the Rural Development Assistance Program is to fund projects intended to increase employment, pro- mote economic development, and/or provide basic community facilities in rural communities. ; PROGRAM PROCEDURES Funds are awarded annually on a competitive basis to eligible rural communities. Up to $100,000 per year may be provided to a community under this program. COMPLIANCE REQUIREMENTS AND SUGGESTED AUDIT PROCEDURES A. TYPES OF SERVICES ALLOWED OR UNALLOWED Compliance Requirement Funds may be expended on a project which contributes to the economic development of the community, and may include: . (1) the creation of permanent jobs in the community; (2) the addition of a source of permanent income to the community; (3) the establishment of basic community facilities; or (4) a feasibility study of a proposed community development project. the grant agreement will specify the project to be com- pleted. (AS 44.47.130; 19 AAC 60.040) Suggested Audit Procedure . Test financial and related records and determine the purposes for which the grant funds were expended. B. ELIGIBILITY The auditor is not expected to verify eligibility for receipt of funds. ' C@. MATCHING, LEVEL OF EFFORT, AND/OR EARMARKING REQUIREMENTS Compliance Requirement Although not required by statute or regulation, grant recipients are encouraged to provide local funds or in-kind services to the project. Funding decisions are made, in part, on the basis of such a commitment by the grantee. The grant agreements will often specify the local contribution. (19 AAC 60.080 (a) (1l)) Suggested Audit Procedures ¢ Review the grant agreement to identify any local contribution to be provided. Review financial and grant records to verify that the source and amount of the local contribution were provided. D. REPORTING REQUIREMENTS Compliance Requirement Grant recipients are to provide financial and narra- tive reports according to a schedule established in the grant agreements. (19 AAC 60.100) Suggested Audit Procedures ° Examine copies of reports and determine complete- ness and timeliness of submission in accordance with the schedule identified in the grant agree- ment. Trace data in selected reports to underlying docu- mentation. E. SPECIAL TESTS AND PROVISIONS There are no special tests or provisions beyond the preceding requirements. APPENDIX C STATE LAWS AND REGULATIONS Environmental Conservation, AS 46.03 This chapter of the Alaska statutes applies to municipalities and could subject them to enforcement actions instituted by the Alaska Department of Environmental Conservation for air, land and water nuisances, and water and air pollution in a municipality of 1,000 or more, may establish a local air pollution control program. Alaska Coastal Management Program, AS 46.40 This chapter of the Alaska statutes establishes a planning program for the use, management, restoration, and enhancement of the overall quality of the coastal environment. The law provides for the creation of coastal resource districts and the establishment, review, and approval of district management plans. If a district management plan is not implemented, enforced, or complied with, enforcement action may follow. Permits and Environmental Procedures Coordination, AS 46.35 This chapter of the Alaska statutes establishes the Department of Environmental Conservation as the central state agency for processing environmental permits issued by State agencies. The law requires a master application form and specifies the following permits including others designated by the commissioner to which this law applies: “Waste Water Disposal Permit --.AS 46.03.1000, 18 AAC L725 nn te Solid Waste Disposal Permit -- AS 46.03.100, 18 AAC 60; Air Emissions Permit -- AS 46.03.150, 18 AAC 50.120; S.-C eee Pesticides Permit -- AS 46.03.320, 18 AAC 90; SS Surface Oiling Permit -- AS 46.03.740, 18 AAC 75; Open Burning Permit -- AS 46.03.020, 18 AAC 50.120; Anadromous Fish Protection Permit -- AS 16.05.8700, 5 AAC 95.100; Critical Habitat Area Permit -- AS 16.20.250--16.20.260; State Game Refuge Land Permit -- AS 16.20.050--16.20.060; Encroachment Permit -- AS 19.25.2000; Utility Permit -- AS 19.25.010; Driveway Permit -- AS 19.05.020, 17 AAC 10.020; State Park Incompatible Use Permit -- AS 41.20.0020, 11 AAc 18.010; Access Roads Permit -- AS 41.20.020, 11 AAC 13.020; Water Well Permit -- AS 31.05.030, 11 AAC 22.140; Brine or Other Salt Water Waste Disposal Permit -- AS 31.05.1100, ll AAC 22.250; Coal Development Permit -- AS 27.20.010, 11 AAC 46.010; Right-of-Way and Easement Permits -- AS 38.05.3300, 11 AAC 58.200; Special Land Use Permit -- AS 38.05.035, 11 AAC 58.210; Tidelands Permit -- AS 38.05.035, 11 AAC 62.710; Tidelands Right-of-Way or Easement Permit -- AS 38.05.320, 11 AAC 62.310; Limited Personal Use Permit -- AS 38.05.320, 11 AAC 62.820; Permit to Appropriate Water -- AS 46.15.040, 11 AAC 72.050; Dam Construction Permit -- AS 46.15.0040, 11 AAC 72.060; Preferred Use Permit -- AS 46.15.040, 11 AAC 72.160; Permit for Use of Timber or Materials -- AS 38.05.110, 11 AAC 76.185; Authorization for Tidelands Transportation..--..AS —33.05.110, 11.00 AAC 76.205; Special Material Use Permit -- AS 38.05.115, 11 AAC 76.540; Mineral and Geothermal Prospecting Permits -- AS 38.05.145; Tide and Submerged Lands Prospecting Permit -- AS 38.05.250; Surface Use Permit -- AS 38.05.255, 11 AAC 86.600; Burning Permit During Fire Season -- AS 41.15.050, 11 AAC 92.010; Miscellaneous State Land Use Permit -- AS 38.05.035, 11 AAC 96.010; Right-of-Way Permit -- AS 38.05.330; Historic Preservation Act -- AS 41.35 This -chapter of the Alaska statutes applies to public construction of any nature undertaken by the State, or by a governmental agency of the State, or by a private person under contract with or licensed by the State or a governmental agency of the State. The Department of Natural Resources must be notified if the construction is planned for an archaeological site. The department may stop the construction to determine the extent of the historic, prehistoric, or archaeological values. Fire Protection, AS 18.20 This chapter of the Alaska statutes requires the Department of Public Safety (the State fire marshal) to adopt regulations (currently in the form of the Uniform Fire Code, as amended) establishing minimum standards for: (1) Fire protection and suppression equipment; (2) Fire and life safety . criteria in commercial, industrial, business, institutional or other public buildings used for residential purposes containing four or more dwelling units; (3) Any activity in which combustible or explosive Materials are stored or handled in commercial quantities; (4) Conditions or activities carried on outside a building described in (2) or (3) likely to cause injury to persons or property. Municipal Budget and Capital Construction Program, AS 29.48.190 This provision specifies the procedure for adoption of- a municipal capital construction program and _ requires the adoption of an ordinance if a contract or lease requires the payment of money in a fiscal year other than the current fiscal year.