HomeMy WebLinkAboutBusiness Operating plan of the Atxam Corporation 2-2005
Business Operating Plan of the
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade
FEBRUARY 16, 2005
Atxam Corporation
P.O. Box 47001
Atka, AK 99547
Phone: (907) 839-2237 Fax: (907) 839-2217
TABLE OF CONTENTS
i EXECUTIVE SUMMARY..
II. BACKGROUND...
Selected Statistics — Atka ..
Ill. FACILITY UPGRADE
Electric Utility Upgrade Description.
Project Exclusions
Electric Power Generation Facility Capacity
Site Plan and Project Layout
IV. PRIMARY OPERATOR.
Contact Information .
Turnover and Assumption of Responsibilities /Sustainability
Staffing and Training
Financial Responsibilities
Operations and Maintenance Guidelines.
Renewal and Replacement Guidelines .....
Audits and Reporting
We SECONDARY OPERATOR
VI. INSURANCE.........
VII. REGULATORY REQUIREMENTS.
VIII. FINANCIAL INFORMATION
Key Financial Assumptions
Key Operating Assumptions ...
Explanation of Financial Terms.
Electric Power Generation Facility Funding
Subsequent Operating Year Revisions
FINANCIAL TABLES ...
Table A: 40 Year Estimated Utility Net Income and Cashflow.
Table B: Power Generation and Consumption Summary
Table C: Annual O&M Schedule..
Table D: 40 Year O&M Schedule.
Table E: Annual Fuel Costs...........
Table F: Annual G&A and Depreciation Expenses
Table G: 40 Year R&R Schedule ............ceeseeeeeeeeeeee
Table H: 40 Year Renewal and Replacement Cashflow......
APPENDIX A: PRIMARY OPERATOR STATEMENT OF QUALIFICATION
APPENDIX B: O&M AND R&R COsT ESTIMATE
ADDITIONAL RELATED AND ATTACHED DOCUMENTS
1, SECONDARY OPERATOR AGREEMENT
2. SITE CONTROL DOCUMENTS
3. GRANT AGREEMENT
4. R&R FUND ACCOUNT -- SAMPLE DOCUMENTS
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Page 1 of 22
PAGE
COonmooraaR READ
SEE BACK
COVER FOR
CD VERSION
OF THIS
PLAN.
I. EXECUTIVE SUMMARY
This Business Operating Plan (the “Plan”) provides a guideline for the City of Atka’s maintenance,
operation and sustainability of Atka’s Electric Utility Upgrades (the “Facility”). The City of Atka
will own the newly installed Facility. The Atxam Corporation will maintain and operate the newly
installed Facility.
The Atxam Corporation, through its subsidiary business Andreanof Electric Corporation, will be
responsible to operate and sustain the newly installed Facility and associated electric power
generation equipment. This Plan has been developed to assist the Atxam Corporation with that
effort and estimates the minimum resources required to sustain the Facility; however, this Plan does
not include discretionary expenses that may be incurred by the Primary Operator, which are not
required for the primary function of electric power generation and distribution. For the new
Facility, the Plan includes minimum estimates of operation and maintenance needs and costs,
renewal and replacement needs and costs, a per kilowatt hour (KwH) surcharge for residential and
commercial users, and total electrical costs. For the utility, Tables A: 40 Year Estimated Utility Net
Income and Cashflow includes projections of utility revenues and expenses with resulting annual net
income and cashflow as well as the estimated retail price per kilowatt hour.
The Rural Power System Upgrade Program will construct a new Electric Power Generation Facility
in Atka. The Atka Facility will operate a hydroelectric turbine and generator to meet the
community’s electrical power demand with the diesel engine generators as backup power. The Atka
Facility would consist of a turbine, generator and automated switchgear; and the backup diesel
engine Facility would consist of two 100 Kw generators, automated switchgear, fuel handling, and a
step-up transformer bank.
The Facility will be turned over to the Primary Operator after the satisfactory completion, as
determined by AEA or its representative, of a 14-day test period. After this test period, AEA will
provide written notice (Certificate of Substantial Completion) stating that the Facility is ready for
Beneficial Occupancy. Upon receipt of this Certificate, the Atxam Corporation will become the
Primary Operator and will assume responsibility for the use, day-to-day operations, and long-term
maintenance of all Facility components, except those noted elsewhere in the Plan. When the project
has been completed (the Facility is complete, crews have demobilized, invoices have been paid and
there are no outstanding issues), the AEA will issue, through its Grants Manager, a Notice of Project
Completion.
Document Interrelationships
Attached to this Plan are:
e Secondary Operator Agreement
e Site Control Documents
e Grant Agreement
e R&R Fund Account — Sample Documents
The Secondary Operator Agreement references the Plan, and includes language requiring the Plan be
followed. Acceptance of the Plan by execution of the Secondary Operator Agreement is pre-
requisite to funding from the Denali Commission (the “Commission”).
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Page 2 of 22
II. BACKGROUND
The Denali Commission was established by the Federal Government to fund improvement projects
within the State of Alaska, including the Rural Power System Upgrade Program. The Alaska Energy
Authority is a state-owned corporation that assists in the development of safe, reliable, and
environmentally sound energy systems for Alaska’s communities. AEA will coordinate the planning,
construction and funding of the Atxam Corporation’s Electric Utility Upgrade Project, which is to
be partially funded by the Commission.
The village of Atka is located on Atka Island, about 1,200 air miles from Anchorage. Atka is an
Unangas village and subsistence activities are an important economic focus. Atka’s major means of
transportation are plane, small boat, barge and snowmachine. Atka has a state-owned 3,200” lighted
paved runway that serves twice weekly scheduled air services from Unalaska and chartered flights
from Unalaska or Cold Bay. Coastal transportation provides freight service from May to October.
A dock and port facility, operated by the City of Atka, is located five miles from the village.
The community’s water system is supplied by a stream and wooden reservoir dam northwest of the
village. It is stored in two 30,000-gallon water tanks before distribution. All 50 homes are
connected to the piped water and sewer system and are plumbed. Sewage is piped to a central septic
system. Wastewater flow untreated through outfall lines into Nazan Bay. Garbage is collected twice
aweek. The City of Atka has requested funds to increase water capacity, replace the water treatment
system, replace connections, and treat the sewage outfall.
Selected demographic and historical data for the community is provided below:
Selected Statistics -Atka
Population
2000 92
1990 73
1980 93
1970 88
1960 119
1950 85
Housing (2000 Data)
Occupied Housing a2
Vacant Housing Due to Seasonal Use 4
Other Vacant Housing >
Economic Data (2000 Data)
Unemployment Rate 0.0%
Median Household Income $30,938
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Page 3 of 22
III. FAcILITy UPGRADE
The Rural Power System Upgrade Program will construct a new Electric Power Generation Facility
in Atka. The hydro Facility would consist of a turbine, generator and automated switchgear; and the
backup diesel engine Facility would consist of two 100 Kw generators, automated switchgear, fuel
handling, and a step-up transformer bank.
Electric Utility Upgrade Description
The AEA contracted with CRW Engineering Group LLC to develop a draft Conceptual Design
Report (CDR), which was submitted to AEA on August 2003 for Atka. The purpose of the CDR is
to provide a concept design and construction cost estimate for upgrades to the electrical generation
system for the community of Atka. This Plan is based upon the information contained in the CDR.
The preliminary construction estimate for the Atka Facility, as developed in the CDR, is
approximately $1,450,000.
The new Atka hydroelectric power generation Facility would be located at Chuniisax Creek,
approximately 0.6 miles southwest of Atka. The new backup diesel electric power generation
Facility would be located at the existing powerhouse site on the same property.
Project Exclusions
Neither AEA nor the Commission will take responsibility for the following, which are not a part of
this project:
e Off-site fuel storage
e Abandonment or decommissioning of existing facilities
e Environmental cleanup
The AEA and the Commission will not provide any guarantees, warrantees or ongoing support,
other than that which is defined in the Plan. However, manufacturer warranties will be transferred
at the time of project turnover (defined in Section IV. Primary Operator).
Electric Power Generation Facility Capacity
The proposed capacity of the hydro Facility will be 286 Kw, using a turbine and generator taking
into account the 1.5% annual growth in consumption over the next ten years. The backup diesel
engine Facility will be 200 Kw, using two generators. The initial annual estimated KwH generation
by the community is estimated to be 493 KwH; growing to 576 KwH by year five and 632 KwH by
year ten.
The Facility’s power generation capacity is in excess of its present usage. The Commission
guidelines dictate that extra capacity is provided to account for 10 years of growth in electric power
requirements.
Site Plan and Project Layout
The following diagrams detail the site plan and project layout:
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Page 4 of 22
Site Plan “TRESTLE, SEE
—- SHEETS 5 AND 6
PIPELINE ANCHORS, 70° MINIMUM RADIUS AT
SEE SHEET 9 ALL HOPE PIPE CHANGE OF DIRECTION
PIPELINE.
NOTES: 1. FOR PIPELINE PROFILE,
SEE SHEET 3
'
Pectin ANCHORS - TYPICAL
/ SEE SHEET 9
FOR PLAN OF DAM, SEE SHEET ~~. J
LEGEND uy ML 7 Ratton ree cmcex cont [—
0 100 200 300 400
eee
‘SCALE IN FEET
polarconsult alaska, inc. ORAWING PROJECT
ENGINEERS * SURVEYORS * ENERGY CONSULTANTS PROJECT PLAN cl : ‘ e 7 . a A re .-
AND H w Moomat, sagen onsen rae agi) sages CREEK SECTION ‘Atka, Alaske
Atxam Corporation/Andreanof Electric Corporation Electric Utility Upgrade Business Operating Plan Page 5 of 22
Site Plan
fo Fp eres ote ele Cae ent Sorte prs
PROPOSED
POWER PLANT SITE PLAN
ALTERNATIVE #1
= ‘ sats geet ses eaves) - marm ioe — — ON na ae 9 i
x ig uf = grea i ° (OA wu rer)
halal iff
Hititi tide
PRELIMINARY NOT FOR \, CONSTRUCTION | |{f
\ Pr app 02
(SeceT s
Atxam Corporation/Andreanof Electric Corporation Electric Utility Upgrade Business Operating Plan Page 6 of 22
7 JO L ade urjg SunvzedQ ssautsng apessdq ATAQ ema uonrzods075 s1399;q Jouvaspuy /uonvsodsog wexiy
FUEL LINE FROM
INTERMEDIATE TANK
VENT WITH SNOW
Hoop PREFABRICATED VENT WITH SNOW INSULATED HOOD
BUILDING ELECTRICAL
RADIATOR PANELS
Va = se re za atts tee ee zs = zs pee pecan aT ie
a A Ya
a
10 X\ | ai WASTE A y Y ——-+ ol i > ’ y BLENDER WINDOW 8 A ¥ y
Y
4 ELECTRIC ff WORKBENCH 4 ¥ UNIT HEATER ¢ y a ul 8 wee 5 ey se Gaeccanarpemee petite, 7 pereee nercope ree naranaearesrees meter here arene aera oe oes
AIR INTAKE a AIR INTAKE or Ui WITH SNOW 8’ ROLL-UP WITH SNOW i
HOOD DOOR HOOD
NOTE:
PLANT ALTERNATIVE #1 1S DESIGNED TO PROVIDE THE COMMUNITY WITH SUFFICIENT STAND BY GENERATION
CAPACITY TO MEET ANTICIPATED PEAK LOADS OVER THE DESIGN HORIZON. FURTHER, THE PLANT'S SWITCHGEAR
WILL INTERFACE WITH THE PROPOSED CHUNIISAX CREEK HYDROELECTRIC PLANT. ONCE THE HYDRO PLANT IS.
COMPLETED, THE GENERATORS WILL COME ON LINE ONLY DURING HYDRO PLANT MAINTENANCE OR WHEN THERE
IS INSUFFICIENT STORAGE AT THE RESERVOIR TO RUN THE HYDRO TURBINES. IT 1S ANTICIPATED THAT ONCE
OPERATIONAL, THE HYDRO PLANT WILL PROVIDE YEAR ROUND POWER TO THE COMMUNITY.
A
VxLVY JO ALID WW SAWYNAALTY -N¥Id YOO14 IN¥Td YaMOd Jogvesdn WALSAS YaWOd Wand OLOFOE :0N mnoke'T alorg
IV. PRIMARY OPERATOR
The Primary Operator for the Atka Facility will be the Andreanof Electric Corporation/Atxam
Corporation. A detailed statement of qualification for the Primary Operator is included as Appendix
A: Primary Operator Statement of Qualification.
Contact Information
Owner: City of Atka
Primary Contact Name: George Dirks, Mayor
Phone: (907) 839-2233 Fax: (907) 839-2234
Address: P.O. Box 47070, Atka, AK 99547
Operator: Andreanof Electric Corporation
Primary Contact Name: Julie Dirks, Bookkeeper
Phone: (907) 581-6226 Fax: (907) 581-6317
Address: P.O. Box 47076, Atka, AK 99547
Operator: Atxam Corporation
Primary Contact Name: Mark Snigaroff, President
Phone: (907) 839-2237 Fax: (907) 839-2217
Address: P.O. Box 47001, Atka, AK 99547
Turnover and Assumption of Responsibilities / Sustainability
The Facility will be turned over to the Primary Operator after the satisfactory completion, as
determined by AEA or its representative, of a 14-day test period. After this test period, AEA will
provide written notice (Certificate of Substantial Completion) stating that the Facility is ready for
Beneficial Occupancy. Upon receipt of this Certificate, the Atxam Corporation will become the
Primary Operator and will assume responsibility for the use, day-to-day operations, and long-term
maintenance of all generation facility components.
When the project has been completed (the Facility is complete, crews have demobilized, invoices
have been paid and there are no outstanding issues), the AEA will issue, through its Grants
Manager, a Notice of Project Completion. This Notice is included in the Grant Agreement, see
Additional Related and Attached Documents.
The Primary Operator is responsible for the long-term sustainability of the Facility for the benefit of
the local community. The complete Facility will be maintained according to guidelines outlined in
this plan, all manufacturers’ recommendations for maintenance, and all state and federal laws, codes
and regulations governing operation.
The Primary Operator is responsible to establish and manage accounts for the O&M and R&R to
ensure that sufficient resources exist to sustain the Facility as specified in the Plan.
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Page 8 of 22
Staffing and Training
The Primary Operator will designate an Operations and Maintenance Manager (the “Manager”) for
the Facility. The Manager will be the point of contact for communications between the Primary
Operator, the Commission and all other interested parties. The Primary Operator will name the
Manager prior to the start of operation and will inform the Commission in a timely fashion
whenever a Manager is to be replaced. The Manager will manage the Primary Operator 's
enterprises and will be given complete responsibility for operating the Facility in compliance with
this Plan.
Itis recognized that there will be, from time to time, turnover in various operational, maintenance
and administrative positions. Because all functions are essential to the successful operation of the
Facility, replacements will be recruited and trained as necessary. The Manager will be responsible
for maintaining adequate staffing and training at all times, and when the Primary Operator lacks
trained operators and administrative staff, training will be obtained to ensure sustained Facility
operation.
The Primary Operator will utilize the AEA Circuit-Rider Training Program for on-site, hands-on
training, as well as other training programs offered by AEA, the Alaska Vocational Technical Center
(AVTEC) in Seward, the Commission, and others.
Financial Responsibilities
There are two cost categories that will be incurred in the ongoing operation and upkeep of the
electric utility equipment — O&M and R&R.
The Primary Operator will incur a number of expenses relating to the O&M of the equipment.
O&M items are defined as expenses that are incurred on a regular basis (administration, audits, etc)
and maintenance expenses that are incurred on an annual basis. O&M expenses are detailed in Table
C: Annual O&M Schedule and a narrative detail is provided in Section VIII. Financial Information to
address estimates and assumptions.
R&R costs are those expenses defined as items costing greater than $5,000 and/or that are not
replaced on an annual basis. Table G: 40 Year Re>R Schedule details the anticipated items, the
frequency of their replacement and their present day value.
The Primary Operator will maintain separate O&M and R&R accounts and will maintain a sufficient
account balance to meet the O&M and R&R financial goals in this Plan. The O&M account may be
an active non-interest bearing account. The Manager will be authorized to draw against the O&M
funds for routine expenses of the Facility; however, individual expenditures in excess of $5,000 will
require authorization of the Primary Operator’s management or governing body. See Appendix A:
Statement of Qualification for an overview of the Primary Operator’s fiscal controls and accounting
procedures. The R&R account must be an interest-bearing, managed savings account, which
requires two signatories and a community resolution for withdrawals, until such time as the cash
balance makes an escrow account more cost effective; then the R&R account must be transferred to
an interest-bearing invested escrow account that is acceptable to the Denali Commission. See
Attachment 4: R&R Fund Account -- Sample Documents, for examples of acceptable R&R account
agreements and a sample community resolution that limits the use of the funds to R&R expenses
only.
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Page 9 of 22
At least once a year, no later than May 31, the Primary Operator will develop a budget for the
upcoming fiscal year, July 1 through June 30, for both O&M and R&R. This will include an update
of actual expenses and projections and assumptions used in this Plan, as described in Section VIII.
Financial Information, Subsequent Operating Year Revisions. Additionally, Tables A-H should be updated.
Operations and Maintenance Guidelines
The Primary Operator will establish an account to fund the Facility O&M so that the O&M
schedule can be completed and the Facility operations can be sustained into the future (this is
anticipated to be an active non-interest bearing account). Section VIII. Financial Information provides
Table C: Annual O&M Schedule and Table D: 40 Year O&M Schedule as a guide to plan for annual
maintenance activities.
Renewal and Replacement Guidelines
The Primary Operator will establish an interest bearing escrow managed renewal and replacement
account acceptable to the Denali Commission, which will ensure capitalization of an amount
sufficient to maintain the R&R Schedule (see Re*R Fund Account — Sample Documents for “How to
Establish a RR Account”). Section VII. Financial Information provides Table G: 40 Year R&R Schedule
as a guide to plan for annual R&R activities and Table H: 40 Year Re>R Cashflow as a guide to
estimate annual R&R required contributions. See Appendix B: O&M and R¢~R Cost Estimate.
The Primary Operator will use the estimates in this Plan for year one contributions, and in
subsequent years will recalculate contributions based upon actual costs.
Audits and Reporting
The Primary Operator will arrange for an annual financial audit that is conducted by qualified,
independent auditors. The Primary Operator will provide an annual report of operations to the
Commission that includes a summary description of O&M and R&R projects; annual O&M and
R&R budgets, expenditures and account balances; a projection of future O&M and R&R cash flows;
and, any other information appropriate to the Facility. The Commission will review the reports and
the annual financial audits of Facility operations and will actively monitor the Primary Operator’s
ability to operate consistent with guidelines outlined in this Plan. The Commission has reserved the
right to visit the site and to access all books and records related to the Facility at any time upon
written request.
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Page 10 of 22
V. SECONDARY OPERATOR
The Primary Operator agrees that, if the Primary Operator is not operating the Facility in
compliance with the terms and conditions of the Plan, the Commission may designate a Secondary
Operator to assist the Primary Operator or to take over such functions of the Facility operations
that the Commission determines are necessary for such time as it determines is necessary, pursuant
to the terms and conditions of Secondary Operator Agreement, which is included as an attachment
to the Plan.
VI. INSURANCE
The Primary Operator is required to be insured for General Liability and Property; estimates are
included in the annual O&M costs.
VII. REGULATORY REQUIREMENTS
The Primary Operator is responsible for ensuring adherence to all applicable state and federal
regulations. The Facility will be provided with, and will have on-site, if applicable, any of following
spill response and related regulatory plans that need to be implemented:
e Environmental Protection Agency (EPA) Spill Prevention Control and Countermeasures
(SPCC) Plan (40 CFR Part 112) — This plan confirms compliance of the Facility with the
spill prevention and operating requirements of 40 CFR Part 112. A Registered
Professional Engineer must certify the plan.
This plan will also include operator guidelines for spill training, drills, prevention and response and
other related environmental information to ensure the environmental integrity of the Facility and the
community.
This plan includes commitments and guidelines for spill prevention, response, and other related
environmental information to ensure the environmental integrity of the Facility and the community.
The plan will be developed near the end of Facility construction. The Primary Operator will
participate in development and review of the plan as requested.
The Primary Operator must be certificated by the Regulatory Commission of Alaska.
The Primary Operator will apply to the State of Alaska, Department of Environment Conservation
for a Construction Permit prior to facility construction and for a Diesel-Electric Generator Facility
General Operating Permit.
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Page 11 of 22
VIII. FINANCIAL INFORMATION
All estimates and assumptions contained in this Plan are preliminary and are anticipated to change as
the project progresses. Actual expenses may vary throughout the life of the Facility and, therefore,
should not be considered as final estimates.
Key Financial Assumptions
e Annual inflation rate of 1.5%.
e Annual investment rate of 3%.
e R&R funds may be deposited into an interest bearing invested escrow account. Fees are
assumed to be 1%, beginning when the account balance is estimated to be $100,000.
e Annual collections rate of 85%.
¢ Detailed assumptions regarding labor rates, required labor hours, and other operating
costs are provided in the tables that follow.
e Fuel costs for the first year are estimated to be $2.05 per gallon.
e Annual KwH usage for Atka is estimated to grow at 1.5% per year over the first ten
years and .5% thereafter.
Key Operating Assumptions
e Line loss and unbilled production are assumed to be 3% per year.
e Initial first year power generation is estimated to be 404,600 KwH for Atka.
e = Initial annual billed KwH is estimated to be 393,271 KwH for Atka.
e Energy is produced at 14 KwH/gallon on average.
e Electric power will be generated using the diesel backup power for an average of two
weeks per year.
e R&R cost estimates assume that long-term R&R costs for the standby diesel facility will
be minimal.
Explanation of Financial Terms
e Total Annual Billed KwH — The annual estimated KwH of demand from all users
groups (residential, community, commercial, etc) that is billed for payment.
e Assumed Annual Collectable KwH — The annual estimated KwH that is deemed to be
collectable upon billing for payment.
Electric Power Generation Facility Funding
This Plan is not a commitment; however, it is anticipated that project funding will be provided by
the Denali Commission. For funding details see the Grant Agreement included as an attachment to
this Plan.
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Page 12 of 22
Subsequent Operating Year Revisions
Starting with the second year, as operating experience specific to this Facility is obtained, the
projections and assumptions upon which the Plan is based will be reviewed and modified. The
following guidelines are for use in subsequent operating years in updating and modifying Plan
projections and assumptions:
Step 1: Review previous years’ O&M and R&R costs and compare to current projections
Step 2: Adjust O&M and R&R projections and assumptions based upon actual experience
Step 3: Recalculate per KwH O&M surcharge based upon updated demand estimates
Step 4: Recalculate per KwH R&R surcharge based upon updated demand estimates
Step 5: Update Table A: 40 Year Estimated Utility Net Income and Cashflow
Step 6: Establish updated retail rate per kilowatt hour
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Page 13 of 22
Inflation Rate
40 YEAR ESTIMATED UTILITY NET INCOME AND CASHFLOW
Annual Profit Margin:
TABLEA
Annual Revenue Annual Expenses Annual Cashflow Before Taxes -
, Estimated ae Estimated O&M . pence Net Income Plus: Less: R&R Year Retail Pri Collectable A 1 Eipenils Fuel Costs | Administrative | Depreciation Total Ex Before T: Net Income D xs Cash Di <i ‘etail Price Kwll/Year Annual ! pens es (Table F) Expenses (lable F) ‘otal Expenses efore Taxes Gene ana epreciation cash Deposit $/KwH (able B) Revenue (ables C&D) (able F) | (Table F) | | (Lables G& H)
1 |{s 0172 334281] |S 57,398] | $s 38,843]$ 3,601] $11,364] § 79T|$ 54,664] | $ 2,733 | |S 797) {s 3,343 1S _ 2 fas 0172 339,295] ]s 58,259] |s 39,425/s 3,716 $ 11,534 $ soo|s 55,484] | $ 809 | [s 3,563 | |S _ 3 |{s o172] [344384] [s 59,133 [s 40017[s $_1,707|$ s2i{s 56,317] | $ $ 821] |s$ 3,797| [$ 4]{s 0172] ] 349,550] |s 60020] [s 40617 s $11,883 | $ s33[s s71c1] | s _ $ 833 | | $ 4,046 | |S 5 |[s 0.187 354,793 | |S $_41,226|$ $ 12061[s 6,136[$ 63,309 | |S $6136] | $ 4313] [s 6 {{s 0.187 360,115 | [$ : $41,845 [$ S$ 12,242[$ 6149]$ 64,179] | $ $ 6149] |S 4596] [$s 7 [ts 0185f | 365,517/ [$s 67,475) [$s 42,472 s S$ 12,426[$ 6,161 |$ ls. s 6161} | s 4,898 | |'s 8 |{s 0.169 371,000] [$62,849] |S 43,109 | § $ 12,612|$ 885 | $ $ 2,993 | | $ $ 5,220] |s 9 |{s 0.169 376,565] [$ 63,792) |$ 43,756 | $ $12,801] $ 898 | $ .- s 3,038] | s $ 5,504 | [S$ 10 | Is 0.185 382,213} [$ 70,566] | $ 44,412 | $ 3,348|$ 12,993 | $ 6451] $ 67,206] | $ s 3,360] | s $ 5,929] [$s | ]s 0.206 384,124] [$ 79,096] |S 45,079 $ 3309s 13,188] $ —13,604[ $75,330] |S $ $ Ss 6257/15 12 |]s 0.208 386,045] ]$ 80,195] [$s 45,755[s 3,450[$ 13,386[$ 13,786|$ 76,377] | S $ $ is 6,603| [$11,002 1] {s 0.195 387,975||$ 75,757} | $ 46,4411 $ 3,501 $ —13,587|$ 8,620[$ 72,149 | | $ $ $ $s [s 5,260 4 |[s o197] | 389915] [s 76.889] |s 4738[s 3554/8 13,71|s 8,745|$ 73,228] | s s $ $ $ 15 | [s 0213) ] 391,804] [s 83,610] [s__ 47,845 | s 3,607]$ 13,998[$ 14,179 $ 79,629 | | s $ s $ $ 10,402
wo | {s 0215} ] 393,824) [$s 84.777| [$8 48,562/$ 3,601] $ 14,208] $ 14309] 80,740] | § $ s 14309] [s_ $10,158 7 \{s 0217 395,793|[s 85,901] [$s 49,2m1[$ 3,716|$ 1442t|s —14,4a0[s 81,868] |S _ i: $s 14440] [s $ 9,894 18 | {$s 0.205 307,772] [s _ 81,609] [s _50,030[s_3,772[$ 14,037[$ _9,283[$ _77,722| | s $ [s 9,283 | I$ $ 4,052 19 | Ts 0.225 309,761] [S$ 90,063} [$s 50,781[$ 3,829[$ 14,8578 16,308[$s 85,774] | s s $16,308] | s_ $10,976 2 | fs 0.227 401,759|]s 1301} fs 51542]s 3,886] s 15,079 [$s 16,446 $ 86,954] | $ $ $16,446] | 10,152] [$10,641 Par | [s 0.229 403,768 | | $ S$ 52,316[$ 3,944] $ 15,306] $ 16,585] $ 88,151] | $ $ 5 [s _ 10,713 | [$ 10,279 22} {s 0231} | 405,787] | s_53,100]s 4,004] $ 15,535] $ 16,726] $ 89,365] | $ $ $ $ 11,305 | ['s 9,890 23 | [$s _ 0.220 407,816] |{$ _89,574| [$s _53,897[$ _4,064|$ _15,768|$ 11,580[$ 85,309| | s $ $11,580] | s 11,930] | 3,916 24 |[s 0.222 409,855| ]$ 90,888] [S$ —54,705/$ 4,125] $s 16,005] $ 11,726] $ 86,560] | $ $ $11,726] | $ 12,589 | | $ 3,465 25 [1s 0.238 411,904|[s 97,934, [$s 55526[$ 4180] s —16,.245/$ —17,313[$ 93,271] | s 7 7 ie [s 13,284 | | $ 8,693 26 | {$s 0.240 413,904| [$99,288] [$ 56,359[$ 4,249 $ 16,489 —17,404/$ 94,560] | § $ $ $ 6,209] [$15,982 27 \{s 0.242 416,034] [$ 100,662) |{$ 57,204/$ 4313S 16,7308 17,616] $s 95,869] | $ $ $ [s 6553) |$ 15,857 28 | Is 2 — 4igi4} [s 96503} [$s 58002]$ —4378[s 16,987[$ 12,481 [$ 91,907 | | $ $ $ [s 6,915] $10,161 29 | \s 420,204) [s 97,918] [s —58,933/$ 4,443 [S$ 17,242|$ 12,038] 93,256] | $ $ $ $ 7.297| [$10,004 30 | fs _ 422,305] |$ 104910] {s 59,817/s 4510{$s 17,500|$ _18,087|$ 99,914] | $ $ s _ 18,087| | $ 7,700) [$15,383 | 31 | fs | 424,417| [$106,368] | $s 60,714] $ 4,578 $ 17,703 [$ _18,249|$ 101,303 | | $ $ $18,249] [$ 8125] [$15,189 32 Ts 0.253 426,539| [S$ 107,849] |S 61,625] $ —464e $s —18,029[$ 18,413 | $ 102,713 | | $ $ s 13,413 | [$ 8574] [S$ 14,974 33 Ws 0.242 428,672| [$ 103,797| [$s 62,5498 4,716 $ —18,300[$ _13,280[s 98,854] | s $ $13,289] [$ 9048] [Ss 9,184 sa} [s o0244f { —430,815| [s 105322) [s aan] s —4,787/$ —18,574[$ 13,458 $ 100,307] | $ s [s 13,458] | s 9,548 | | $ 8,926 35 | {$s 0.260 | {s 112425]; [s o4agols — 4a5a]s —18,853[$ —18,920|$ 107,071] | $ $ [s 18,920] ]s 10075] | $14,198 36 {$s _ 0.262 435,134|/ 1S 113,996] [$s 5,407] $ 4,931] $ 19,136 $ 19,094 $108,568] | s ls [s 19,094] [$s 10,632) | $ 13,891
37 | \s 0.264 437,310} [S$ 115,591} | $ 66,388] $ 5,005]$ 19,423|$ 19,271] $ 110,087] | $ $ $ 19271] | $ 11,219] | $ 13,556 38 | fs 0.254 439,496, [S$ 111,055] | $s 67384] $s 5,080] $s —19,714/ $ 14,100] $ 106,338] | $ $ {s 14,160] [s 11,839 | | $ 7,638 39 Js 0.257 441,694] | $113,298] [s 68304[$ 5,157[s 20,010[$ 14,343 | $ 107,903] | s $ $s 14343| [s $ 7,245 40 | fs 0.272 443,9002| [$120,521] [$s __69,420[s _5,234[$ _20310[$ _19,817[ $ _ 114,782] | $ $ $ _19.817| | $ $ 12373
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan Page 14 of 22
TABLE B
Power Generation and Consumption Summary
467,253 13,083 | 454,170 386,045.
Total Annual Line : Assumed Generated Loss and Tora! Piled Collectable
KwH/Year Unbilled KwH/Year KwH/Year
404,600 11,329 393,271 334,281
410,669 11,499 | | 399,170 339,295 Assumed Collection 416,829 11,671 405,158 344,384 Rate _ 423,081 11,846 411,235 349,550 | [ 85% | 429,428 12,024 417,404 354,793
435,869 12,204 423,665 360,115
442,407 12,387 430,020 365,517 Annual KwH 449,043 12,573 436,470 371,000 Increase 455,779 12,762 443,017 | 376,565 Year 1-10 ~ 462,616 12,953 | 449,662 382,213 1.50% ] 464,929 13,018 451,911 384,124 Year 11-40
0.50% ]
469,590 | 13,149 456,441 387,975
471,938 13,214 458,723 389,915
474,297 13,280 461,017 391,864
476,669 13,347 463,322 393,824
Annual Line Loss/
Unbilled
479,052 13,413 465,639 395,793 3% a 481,447 13,481 467,967 397,772
483,855 13,548 470,307 399,761
486,274 13,616 472,658 401,759
488,705 13,684 475,021 403,768
491,149 13,752 477,397 405,787
493,604 _ 13,821 479,784 407,816
496,072 13,890 482,182 | 409,855
498,553 13,959 484,593 411,904
501,046 14,029 487,016 413,964
503,551 14,099 489,451 416,034
506,069 14,170 491,899 418,114
508,599 14,241 494,358 420,204
511,142] 14,312 496,830 422,305
513,698 14,384 499,314 | 424,417
516,266 14,455 501,811 426,539
518,847 14,528 504,320 428,672
521,442 14,600 506,841 430,815
524,049 14,673 509,376 432,969
526,669 14,747 511,922 435,134
529,302 14,820 514,482 437,310
531,949 14,895 517,054 439,496
534,609 14,969 519,640 441,694
537,282 15,044 522,238
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Page 15 of 22
443,902
TABLE C
ANNUAL "0 and M" SCHEDULE
Total Hourly
Position Cost
Operator 1 - Primary $28.00 4% 33.43 Maintenance & Primary Operations
Bookkeeper $ 10.00 49 H Payroll, Accounts Payable MN
Utility Manager $ 20.00 .49 3. Manager, Denali Commission Reportin,
Labor: — Annual Costs
Operating Labor
Operator 1
Subtotal Operating Labor Administrative Labor Bookkeeper
Utility Manager Subtotal Administrative Labor
Materials:
Materials & Equipment 2,000
Annual Repairs hil ; : : mn 5,000
Outside Labor | il MT 1,200
Other Costs:
Training ; (Lump Sum) LW : 1,000
Annual Audit (Lump Sum) 2,000
Insurance 1,643
38,843
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Page 16 of 22
TABLE D
40 YEAR "O and M" SCHEDULE
Annual O&M Total Billed | O&M Surcharge a ; ollectable . Expenses KwH/Year KwH/Year $/KwH
38,843 393,271 334,281
39,425 399,170 339,295
40,017 405,158 344,384
40,617 411,235] | 349,550
417,404 354,793
423,665 360,115
430,020 365,517
436,470 371,000
443,017 376,565
449,662 382,213
451,911 384,124
454,170 386,045
456,441 387,975
458,723 389,915
461,017 391,864
463,322 393,824
465,639 395,793
467,967 397,772
470,307 399,761
472,658 401,759
475,021 403,768
477,397 405,787
479,784 407,816
~ 482,182 409,855
484,593 411,904
487,016 413,964
489,451 416,034
491,899] ] 418,114
494,358 420,204
496,830 422.305
499,314 424,417
501,811 426,539
~ 504,320 428,672
506,841 430,815
509,376 432,969
511,922 435,134 514,482 437,310
517,054 439,496
519,640 441,694
522,238 443,902
Inflation Rate
Collection Rate
an
| CO} DA) om) Bp] W) dy] = en] 49] 2949] 49] 49] 49] «9
T A) | A| a) nl | | | | | | | | | | | | | | | | |
|| ala) aAl nw) alana) all ww) wn nll | ln | wl | lw wn Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Page 17 of 22
TABLE E
ANNUAL FUEL COSTS
Inflation Rate 1.5% KwH Produced per Gallon 14
Estimated Total Diesel Total Fuel Usage Assumed i Total Annual Fuel Cost Fuel Cost per Generated @ Fuel Cost Collectable $/KwH Gallon KwH/Year 14 KwH/Gallon mes oS Vl KwH/Year :
334,281 | $
339,295 | $
344,384 | $
349,550 | $
354,793 | $
360,115 | $
365,517 | $
$
$
$
$
$
$
$
371,000
376,565
382,213
384,124 |
386,045
387,975
~ 389,915
391,864 | $
393,824
~ 395,793
397,772
399,761
401,759
403,768
405,787
407,816
~ 409,855
411,904
' 413,964
416,034
$
$
$
$
$
$
$
$ $
$
$ $
Pa 4 $ 418,114] $
$
$
$
$
$
$
$
$
$
$
$
$
oa) alaole| ola] olole “|| 420,204
422,305
424,417
426,539
428,672
~ 430,815
432,969
435,134
437,310
439,496 |
~ 441,694
443,902
|| | 9 | +9 | | 9 T
T || AAA
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Page 18 of 22
TABLE F
ANNUAL "G and A" AND DEPRECIATION EXPENSES
Annual General & Administrative Costs:
Salaries
Office Expenses
Insurance
Operating Expenses
Depreciation- Other
Assets Total Annual Depreciation
797
809
821
833
846
859
871
885
898
911
8.124
8,246
8,370
8,495
8,623
8,752
8,883
9,016
9,152
9,289
9,428
9,570
9,713
9,859
10,007
10,157
10,309
10,464 10,621 10,780 |
10,942
11,106
11,273
11,442
11,613
11,787
11,964
12,144
12,326
12,511 =
CO} oo} Alain} a] wt = Oo a a ory AA A|A| a wn a wl n\n wn wl o| ao ooo n\n on aol n|\ ols ww) oso n\n n|o|s\o| a a nN np w m - m wn a a mn =i
1. Perr rrr rr rr
oa) o|o|ololo|olola/o|olol ooo nolo) ol ool) olol oo] ool] volo ooo o]oon wnln|ala|w|ala| al. || ||| 9/9 | | 9 | |
Atxam Corporation/Andreanof Electric Corporation Electric Utility Upgrade Business Operating Plan Page 19 of 22
TABLE G
40 YEAR "R and R" SCHEDULE
Present Day Intervals | Depreciation R&R Activity Value IR&R Activities: Cost (Wears) Term Repair Planks $ 2,800 Repair Planks $2,800 5 3 Paint Powerhouse 1,800 Paint Powerhouse $1,800 5 3 Paint Bridge Structure 200 Roof Repair Powerhouse $3,000 25 20 Replace Turbine Brgs, Seals, etc 4,000 || Load Bank Powerhouse $3,000 20 20
Electrical System Repairs 1,000 Paint Bridge Structure Ss 200 5 3 | Replace Blader, Motor, Pump, Accm 600 | $5,000 3 3 | Survey Dam 5,000 $29,000 20 20 _| Paint Underground Cond & Devices 470 || $15,870 |] $16,844 $4,000 5 3 10 || Repair Planks $ 2,800 Electrical System Repairs Is 5 3 | | Paint Powerhouse 1,800 Electrical System Major Re $ 10 10 | | Paint Bridge Structure 200 5 3
| Replace Turbine Brgs, Seals, ete 4,000 5 15
Electrical System Repairs 1,000 5 3 Replace Blader, Motor, Pump, Accm 600 Survey Dam 5,000 Paint Underground Cond & Devices || 470 || Electrical System Major Repairs 2,500 | $_ 18,370 |] $21,004 15 | | Repair Planks $ 2,800 || || Paint Powerhouse 1,800
Paint Bridge Structure 200 Replace Turbine Brgs, Seals, ete 4,000 Blectrical System Repairs 1,000 | | | Replace Blader, Motor, Pump, Acem 600 i | Survey Dam 5,000
| | Paint Underground Cond & Devices 470
| | Replace Seals, Hoses 250 S 19,856 20 | | Repair Planks $ 2,800 H Paint Powerhouse 1,800
Paint Bridge Structure 200 Replace Turbine Brgs, Seals, ete 4,000 Electrical System Repairs | 1,000 | | Replace Blader, Motor, Pump, Accm 600 Inflation Rate 15% | Survey Dam 5,000 | | Paint Underground Cond & Devices 470 || Reinvestment Rate x | | Electrical System Major Repairs | 2,500
| Load Bank Powerhouse 3,000 | | Replace Turbine Runner 29,000 |{ $50,370 || $__ 66,839 25 | | Repair Planks Ss 2,800 | | Paint Powerhouse 1,800 | | Paint Bridge Structure 200
|| Replace Turbine Brgs, Seals, etc 4,000 | | Electrical System Repairs 1,000 | | Replace Blader, Motor, Pump, Accm 600
| | Survey Dam 5,000 | | Paint Underground Cond & Devices 470 ‘| Roof Repair Powerhouse 3,000 || s_ 18,870 | s__ 26,975 |]
30 | | Repair Planks $ 2,800 || | Paint Powerhouse 1,800 Paint Bridge Structure 200
Replace Turbine Brgs, Seals, etc 4,000
| Electrical System Repairs 1,000 Replace Blader, Motor, Pump, Accm 600
| Survey Dam 5,000 || Paint Underground Cond & Devices 470 Electrical System Major Repairs 2,500 | | Replace Seals, Hoses 250 || $18,620 |] $28,674 Repair Planks $ 2,800 Paint Powerhouse 1,800
| | Paint Bridge Structure 200 | | Replace Turbine Brgs, Seals, ete 4,000 | | Electrical System Repairs 1,000 | | Replace Blader, Motor, Pump, Accm 600
| | Survey Dam 5,000 | | Paint Underground Cond & Devices 470 || $15,870 |] $26,328 | | Repair Planks $ 2,800 Paint Powerhouse 1,800
_| Paint Bridge Structure 200 Replace Turbine Brgs, Seals, etc 4,000 Electrical System Repairs 1,000 |] Replace Blader, Motor, Pump, Accm 600 Survey Dam 5,000
| | Paint Underground Cond & Devices 470 |]
| Load Bank Powerhouse 3,000 place Turbine Runner 29,000
Atxam Corporation/Andreanof Electric Corporation Electric Utility Upgrade Business Operating Plan Page 20 of 22
TABLE H
40 YEAR RENEWAL AND REPLACEMENT CASHFLOW
R & R Fund Balance
Beg. of
Year Balance
Annual
Deposits
Renewals/
Replacements
Interest
arnings (Net of Fees)
Assumed
Collectable
KwH/Year
End of
Year
Balance
R&R
Surcharge
$/Kwl1
3,343 sso 3,563
3,343 334,281 100 7,006 339,295, 7,006 3,797 210 11,013 344,384 11,013 4,046 330 349,550 15,390 4,313 | 2,815 4,596 (44)| 56 354,793 |
360,115 7,467 4,898 149 12,515, 5,220 250 | 17,985 23,909 5,564 5,929 360
365,517 |
371,000 376,565
8,892 6,257
58
me
15,327 6,603 22,236
29,648
6,967
307 | 445
382,213 384,124 386,045 387,975
37,593. 25,851 7,759 7,352 | 593
355
389,915 391,864 8,187 S17
34,555 8,640 43,886 9,117 53,881 64,579 9,621
ou 878 1,078 jelelalalaanlalalalalalala alana | | 393,824 395,793
397,772 399,761 10,152 7,893 10,713 | 18,764
30,632 jo)o|e|alalelololo 11,305 11,930 T lalelolololololololalololalolalalalalolole 401,759 __158 403,768
563 405,787
43174 56,627 12,589 613 | 863 407,816
409,855
13,284 42,936 50,004 6,209 | 6,553 ms)
411,904 413,964 1,000 57,557 6,915 65,623 74,232 7,297
1,151
416,034 418,114 1,312 7,700 54,168 8,125
63,377 73,218 9,048 8,574 |
911
420,204 422,305 ~_ 1,083 1,268 | 1,464
424,417 426,539 428,672
83,730 9,548,
1,675 430,815
94,953 10,075 80,072 92,305 alnlalalalalalalalwalwalaloln 10,632 11,219
1,372 432,969
1,601 435,134
105,371 11,8359 | 1,846 | 2,107 alalalalalalalalalalalalalalalalalw| alan 105,371 437,310 119,317 439,496
119,317 12,493 2,386 | apa alalmaaalamalaaananaannmalnamlala wena minlalananlan a] mlan alan aen 134,197 alalala 13,183
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Page 21 of 22
alalololalalolalololalalololalololola bee | 134,197 | | 441,694 61,826
Inflation Rat
Reinvestment Rate :
Invested Escrow Fees: 1.00%
Initial KWH Collectable :
Initial Co
st per KwH :
Annual cost increase :
Initial KwH Collectable :
Initial Cost per KwH :
Annual cost increas
APPENDIX A: PRIMARY OPERATOR STATEMENT OF QUALIFICATION
The Primary Operator Statement of Qualification includes:
1. A description of the Primary Operator, its personnel and experience, and its
responsibilities and functions. This discussion includes a description of the ability and
history of the Primary Operator to operate an electric power generation facility and utility
as a business and/or its history of operating other business enterprises, as well as a
description of the Primary Operator’s fiscal controls and accounting procedures. This
discussion details organization history, management and structure; identification of key
personnel, their experience and responsibilities; and, proposed organization of the electric
utility management and operations, including an organizational chart.
2. A description of the Primary Operator’s, if any, staffing or training needs.
3. A description of the training plan proposed by the Primary Operator to address current
and future needs.
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Page 22 of 22
ATXAM CORPORATION/ANDREANOF ELECTRIC CORPORATION
Community History
The island where Atka is located has been occupied by Unangas for at least 2,000 years. Unangas
speak the western dialect, known since the Russian era as “Aleuts”. Recent archaeological evidence
indicates that the present village site may have had human use since prehistoric times. The first
contact with Russians occurred in 1747, and Atka became an important trade site and safe harbor
for Russians. In 1787 a number of hunters were enslaved and relocated to the Pribilofs to work in
the fur seal harvest. The townsite was settled in the 1860s. After the end of the sea otter hunting
era in the late 1800s, Atka had no viable cash economy. Reindeer were introduced to the island in
1917. During the 1920s, Atka became relatively affluent due to fox farming. After the Japanese
attacked Unalaska and seized Attu and Kiska in June 1942, the U.S. government evacuated Atka
residents to the Ketchikan area. Atka was burned to the ground to prevent Japanese forces from
using it and advancing. The community was rebuilt by the U.S. Navy after the war and residents
were allowed to return. Many Attu villagers, released from imprisonment in Japan in 1945, relocated
to Atka. This exposure to the outside world brought many changes in the traditional culture and
attitudes in the community.
A second-class City was incorporated in 1988. Today, the community of Atka has approximately
102 year round residents and is a traditional Unangas village. The economy is based on a
combination of subsistence living and wages earned from the halibut fishery. A small local fish
processing plant, Atka Pride Seafoods, operates seasonally to serve the local fleet. The plant
currently processes halibut and black cod. Nine residents hold commercial fishing permits. A
number of offshore fish processors carry out crew changes through Atka. Year-round income
opportunities in the village are limited to education and government related work. A reindeer herd
of over 2,500 head provides a source of meat.
Description of Business History
The community’s water and sewer system was constructed in 1978 and was expanded in 1982 to a
new housing area. Water is supplied by a stream and wooden reservoir dam northwest of the village.
Water is stored in two 30,000-gallon water tanks before distribution. All 50 homes are connected to
the piped water and sewer system and are plumbed. Sewage is piped to a central septic system.
Wastewater flows untreated through outfall lines into Nazan Bay. Garbage is collected twice a week.
The City of Atka was awarded funds to increase water capacity, replace the water treatment system,
replace connections, and repair the sewage outfall. Hydroelectric potential is under development at
Chuniisax Creek.
The Atxam Corporation, the local Native Corporation, owns and operates the community’s electric
utility through its enterprise business, Andreanof Electric Corporation. The Andreanof Electric
Corporation maintains the generator plant, monitors electric meters at residences and businesses,
and collects electrical fees. Currently, residents and businesses are paying .50 cents/kilowatt per
hour. Most residents pay a reduced rate under the Power Cost Equalization (PCE) Program.
Andreanof Electric Corporation maintains a residential collection rate at 26 percent and a business
collection rate at 89 percent. The Andreanof Electric Corporation installed a pre-pay meter system
on residential user connections in 2001. The system is setup so that a percentage is deducted from
the pre-pay card and applied to past due accounts. Over time the collection rate for residential and
businesses will be at 100 percent.
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Appendix A-1
During the period of July 2001 through June 2002, 342,882 kilowatt hours were generated, 336,122
kilowatt hours were sold, and 6,760 were unbilled. Andreanof Electric Corporation purchases the
electric power plant’s fuel once a year directly from the fuel supplier, Delta Western. During the fall
of 2002, approximately 40,000 gallons of diesel fuel was purchased for the power plant for the price
of $2.02 per gallon.
Description of Fiscal Controls and Accounting Procedures
The Andreanof Electric Corporation maintains a separate accounting office, which consists of one
bookkeeper and one clerk. Andreanof Electric Corporation’s Board Members and staff have the
authority to submit check requests, which must have supporting documents prior to being processed
by the clerk. All checks must be signed by two of the Andreanof Electric Corporation’s Board
Members or clerk. A copy of the check is attached to the supporting documents and filed at the
Andreanof Electric Corporation’s office. The Andreanof Electric Corporation will track revenues
and expenses of the electric utility using separate accounting ledgers. The Andreanof Electric
Corporation operates on a July through June fiscal year.
Management and Structure
The Atxam Corporation’s Board of Directors consists of nine directors. Mark Snigaroff is
President. Below are the names and titles of the 2004 Board of Directors.
ATXAM CORPORATION FY2004 BOARD OF DIRECTORS
Lawrence Prokopeuff, Chairman = Dennis Golodoff, Vice Chair
Mark Snigaroff, President George Dirks, Vice President
Katherine Nevzoroff, Sec./Treas. | Moses Dirks, Director
Sarah Golodoff, Director Sally Swetzof, Director
Leonty Lokanin, AEC Rep.
The Andreanof Electric Corporation’s Board of Directors consists of five directors. Leonty
Lokanin is President. Below are the names and titles of the 2004 Board of Directors.
ANDREANOF ELECTRIC CORPORATIONS
FY2004 BOARD OF DIRECTORS
Leonty Lokanin, President Arnold Golodoff, Sr., Vice President
Raymond Golodoff, Sec/Treas. Martin Zaochney, Director
Ruth Kudrin Director
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Appendix A-2
The below organizational chart shows the relationship between the various components of the
Atxam Corporation’s overall structure. At the apex of management is a Board of Directors
comprised of the President, all representing the Native Corporation’s shareholders.
ATXAM CORPORATION
ORGANIZATIONAL CHART
Atxam Corporation
Shareholders
Atxam Corporation
Board of Directors
President
Mark Snigaroff
Secretary
Katherine Nevzoroff
Andreanof
Board of Directors
Bookkeeper Generator Operator
Julie Dirks Jason Dirks
Clerk Generator Operator
Katherine Nevzoroff Vincent Golodoff
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Appendix A-3
Identification of Key Personnel
The Andreanof Electric Corporation Facility will have overall direction from the Board of Director’s
President, Leonty Lokanin and the Atxam Corporation’s President, Mark Snigaroff. Mr. Lokanin
and Mr. Snigaroff will be involved in this project from the beginning and will be the main contacts
for the Facility. Mr. Lokanin and Mr. Snigaroff will work with AIDEA/AEA and the Denali
Commission to ensure the Andreanof Electric Corporation’s role in the project timeline.
Vincent Golodoff and Jason Dirks are the Generator Operators of the existing Andreanof Electric
Corporation’s Facility and are responsible for the Facility’s overall operation. Their positions will
remain the same with the new Electric Power Generation Facility. See attached resumes and
Electric Power Generation Facility Manager job description.
Julie Dirks is the bookkeeper for the Andreanof Electric Corporation. She is responsible for tax
filings and schedules, tracking project expenses and preparation of required project financial and
PCE reports. See attached resume.
Katherine Nevzoroff is the clerk for the Andreanof Electric Corporation. She is responsible for
payroll, accounts payable and accounts receivable. See attached resume.
Organization of Power Utility Management and Operations
The following chart illustrates the staff relationships of the Andreanof Electric Corporation:
ANDREANOF ELECTRIC CORPORATION
PROJECT STAFFING
Andreanof Electric Corporation
Board of Directors
President
Leonty Lokanin
Bookkeeper Clerk Generator Operators
Julie Dirks Katherine Nevzoroff Vincent Golodoff & Jason Dirks
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Appendix A-4
Staff Training Needs
Below is an initial list of training and assistance that has been identified by the Andreanof Electric
Corporation’s staff:
e Power Plant Operator Training
e Advance Power Plant Operator Training
¢ Oil Spill Response Training
Additionally, the staff will utilize training resources available through AEA and the Alaska
Vocational Technical Center to ensure proper training of its personnel. The following is a summary
of those resources:
e Alaska Energy Authority (AEA)
The Alaska Energy Authority has developed a series of courses relating specifically to Bulk
Fuel and Power Utility operations. These courses are taught through the Alaska Vocational
Technical Center (AVTEC) in Seward: Phone: (907)-269-3000
Contacts
Monica Moore, Training Program Manager, Alaska Energy Authority/AIDEA
Address: 813 West Northern Lights Blvd., Anchorage, Alaska 99503
Phone: (907) 269-3026 Fax: (907) 269-3044
Web Address: www.aidea.org/training.htm
Email address: mmoore@aidea.org
Dick Harrell, Instructional Administrator, Alaska Vocational Technical Center
Address: P.O. Box 889 ~ 809 2" Avenue, Seward, Alaska 99664
Phone: (907)-224-4162 ~ 1-800-478-5389 ~ fax (907) 224-4144
Web Address: www.avtec.alaska.edu
Email: dick_harrell@educ.state.ak.us
Technical Assistance Provided
Facility Maintenance and Operations
Cost
The state will pay for transportation to and from your community to the Alaska Vocational
Technical Center (AVTEC) as well as lodging and $10 per meal allowance while in transit to
AVTEC. Furthermore, while at AVTEC the state will pay for tuition, deposit, room and
board and training related materials.
Currently, the primary power plant related training provided by AEA is:
Power Plant Operator Training - This is an 8-week program that prepares students for
employment within a power plant. Approximately 60 percent of the course is spent
operating and maintaining diesel generator sets representative of installations in rural Alaska
with the remainder of time spent in classroom instruction.
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Appendix A-5
Advanced Power Plant Operator Training - This is a 2 to 3-week program that builds on
the principals taught in the Power Plant Operator Training course.
Utility Clerk Training — This is a three-day course offered in Anchorage entirely through
the Alaska Energy Authority. The course will focus on Power Cost Equalization (PCE)
reporting, how to understand and report to the Regulatory Commission (RCA), how to
apply for Bulk Fuel Loans, and general accounting practices that utilities can use to keep
their records and reports current.
The following courses are anticipated for the future:
Itinerant Training — This course will provide follow-up onsite training following the
AVTEC Bulk Fuel Operator Training course. The Alaska Energy Authority (AEA) staff will
conduct all training. It is anticipated that 6 communities will be chosen as test sites or
demonstration projects.
Oil Spill Response Training — This course will be taught on-site and have the participation
of the Alaska Energy Authority (AEA), Department of Environmental Conservation (DEC),
Environmental Protection Agency (EPA) and the US Coast Guard.
e Alaska Vocational Technical Center (AVTEC)
The Alaska Vocational Technical Center (AVTEC) is located in Seward Alaska
approximately 120 miles south of Anchorage via the Seward Highway. In addition to
offering onsite training and courses AVTEC staff also provide off-site training.
Contact
Admissions Office
Address: P.O. Box 889 ~ 809 2" Avenue, Seward, Alaska 99664
Phone: (907)-224-4152 ~ 1-800-478-5389 ~ fax (907) 224-4143
Web Address: www.avtec.alaska.edu
Technical Assistance Provided
Skilled Labor
Business Administration
Facility Maintenance and Operations
Cost
Fees for courses vary based on the specific program. An estimated fee for various programs
has been included next to the listing of programs offered. The estimated fees include
tuition, activity fee, security deposit, room and board, and books and supplies. Broken out
these costs total - activity fee ($25), security deposit ($50), and room and board ($20/day).
The tuition, books and supplies vary in cost according to the course and course length.
The following programs and courses are offered relating to Skilled Labor:
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Appendix A-6
Construction Machinery and Diesel Engine Technology — This program teaches
students the skills and competencies of servicing, maintaining, and repairing construction
machinery and diesel engines. Approximately 40 percent of the course is classroom
instruction with the remainder being shop work. Four certification levels can be obtained
within the program. The entire course will cost an estimated $7,280 and take approximately
40 weeks or 1379 hours.
Basic course content includes: tire repair; basics of equipment operation; chassis
components; differentials; transmissions; brakes; electrical systems; hydraulic systems;
introduction to gas and arc welding; diesel engine operation and tuning; precision
measurement; disassembly and reassembly of diesel engines; fuel injection systems and
governors, including electronically injected diesels; mathematics; industrial first aid; job
search skills; and, shop safety.
Welding Technology — This program teaches students the skills necessary to successfully
pass the AWS-D1.1 Structural Certification Test and become employed in the welding and
fabrication industry. Certificates can be obtained in; Combination Welder, Welder SMAW,
Wire-Feed Welder, Aluminum Welder, and Welder Helper. The entire course will cost an
estimated $5,260 and take approximately 20 weeks or 700 hours.
Basic course content includes: O.A.W. (Oxyacetylene Welding); S.M.A.W. (Stick electrode);
G.M.A.W. (MIG); G.T.A.W. (TIG); shop safety; industrial first aid and CPR and job search
skills.
Industrial Electricity — This program prepares students for entry-level positions in the field
of industrial electricity. The course is broken into three parts; classroom presentation,
experimental lab work, and electrical maintenance shop work. Four certificates can be
obtained, Industrial Controls Technician, Industrial Electrical Technician, Electrical
Apprentice, and Electrical Helper. The entire course will cost an estimated $8,175 and can
take up to 40 weeks or 1400 hours depending on the certification level.
Basic course content includes: electrical theory and wiring practices; electrical construction
and national electrical code, industrial process automation, and job search and interview
skills.
The following program and courses are offered relating to Business Administration:
Business and Office Technology — This program is an individualized, self-paced program.
The following certificate levels can be obtained within the program, Accounting Clerk,
Administrative Assistant, General Business/Office Assistant, and Business/Office Clerk.
The entire course will cost an estimated $6,855 and take approximately 35 weeks or 1225
hours.
Basic course content includes: Computer operations and software applications; Keyboarding
and document processing; Proofreading and editing; Office procedures and office machines;
Machine transcription, Accounting and record keeping; Business English and mathematics;
Job and interview preparation; and, Internship training.
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Appendix A-7
The following programs are offered relating to Facility Maintenance and Operations:
Facility Maintenance/Construction Trades — This program prepares students for
installation, maintenance, service, repair and diagnostics to maintain installations and repair
numerous types of facility equipment. Approximately 50 percent of the course is classroom
instruction with the remainder being hands on training. Two certificates can be obtained:
Building Maintenance Repairer and Building Maintenance Repairer Helper. The entire
course will take approximately 38 weeks or 1316 hours.
The main courses of study are carpentry, plumbing, heating and electrical. Basic course
content includes: Carpentry (blueprint reading, power tools and hand tools, framing,
sheetrock, structural repair, foundations); Plumbing (names of fittings, join pipe, repair and
replace fixtures); Heating (proper cleaning, troubleshooting, preventative maintenance); and,
Electrical (electrical theory, residential wiring, electrical troubleshooting, national electrical
code, blueprints, schematics).
Facility Maintenance/Mechanical — This program prepares students for installation,
maintenance, service, repair and diagnostics of HVAC/R equipment. Approximately 45
percent of the course is classroom instruction with the remainder being hands on training.
Six certificates can be obtained: Plumbing and Heating Technician; Plumbing and Heating
Repairer; Plumbing and Heating Assistant Repairer, HVAC/R Technician; HVAC/R Unit
Repairer, HVAC/R Helper. The course will take approximately 36 weeks or 1260 hours.
Basic course content includes: electrical theory; troubleshooting and repair; reading
blueprints and schematics; electrical circuits and controls; testing circuits, system design;
retrofitting systems; heat loads; installation techniques; heat pumps; oil, gas and kerosene
heating systems; domestic refrigerators and freezers; small hermetic systems; refrigeration
systems; heating and cooling systems; introductions to carpentry, residential wiring and
computers, and industrial first aid.
Power Plant Operation — This program prepares students for employment within a power
plant. Approximately 60 percent of the course is spent operating and maintaining diesel
generator sets representative of installations in rural Alaska with the remainder of time spent
in classroom instruction. Certificates can be obtained in Diesel Plant Operator and Assistant
Diesel Plant Operator. The entire course will cost an estimated $1,935 and take
approximately 8 weeks or 280 hours.
Basic course content includes: engine theory, maintenance, and troubleshooting; electrical
system theory maintenance and troubleshooting; generator theory and maintenance;
introduction to electrical distribution systems; operation of diesel electric sets; control
panels; paralleling generator sets; load management; fuel management; waste heat recovery;
plant management skills; power plant safety; industrial first aid and CPR; and job search
skills.
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Appendix A-8
RESUMES/ JOBS DESCRIPTION
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Appendix A-9
Atxam Corporation
Andreanof Electric Corporation
PO Box 47076
Atka, Alaska 99547
Work 907-581-6226
Fax 907-581-6317
Vincent Golodoff
Employment Atxam Corporation
Andreanof Electric Corporation
1990-Present Generator Operator
Operates and maintains electric power utility.
Atka Pride Seafoods
1997-Present Worker
Haul fuel, bait and ice. Crane and fork lift operator.
Atka Fishermen’s Association
1998-Present Fuel Sales
Education 1980 High School Diploma Atka High School Atka, Alaska
Training 1985 Building Maintenance Training
Skills Minor Electrical
Power Line Repair
Generator Maintenance and Repair
Installing Meters
Heavy Equipment Operator
Atxam Corporation /Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Appendix A-10
Jason Dirks
Atxam Corporation
Andreanof Electric Corporation
PO Box 47076
Atka, Alaska 99547
Work 907-581-6226
Fax 907-581-6317
Employment
Previous Experience
Education
Training
Skills
Atxam Corporation
Andreanof Electric Corporation
2003-Present Generator Operator
Operates and maintains electric power utility.
Native Village of Atka
2003-Present Recycling Coordinator
City of Atka
On-call Casual Labor
2001 High School Diploma Netsvetov High Atka, Alaska
May 2004 HAZWoper Training Native Village of Atka
Jan.-April 2004 Power Plant Operator Training AWVTEC
Seward, AK
Jan.-Feb. 2003 Heavy Equipment Operator Training West Coast
Woodland, WA
2002 Hydro Electric Training AEA Larson Bay, AK
Minor Electrical
Generator Maintenance and Repair
Installing Meters
Heavy Equipment Operator
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Appendix A-11
Atxam Corporation
Andreanof Electric Corporation
PO Box 47076
Atka, Alaska 99547
Work 907-839-2237
Fax 907-839-2217
Katherine Nevzoroff
Employment Atxam Corporation
Andreanof Electric Corporation
1991-Present Clerk
Responsible for recording payments, issuing pre-paid power cards,
writing payroll, issuing accounts payable checks and maintain files.
Other general clerical duties as assigned.
Atxam Corporation
1990-Present Administrative Assistant
Responsible for implementing payroll, issuing accounts payable and
maintaining Corporation files and records. Other general clerical
duties as assigned.
Previous Experience Atka IRA Council
1984-1985 Office Clerk
General office duties.
Education 1968 High School Diploma Chemawa High School Salem, OR
Training 2002 Computer Skills for Absolute Beginners
Skills Computer Software Programs, such as PowerSales (pre-pay metering
system), Works
Community Work 1992 - 2002 Atka City Council
Atka IRA Council
Atxam Corporation, Board of Directors
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Appendix A-12
Julie Dirks
Atxam Corporation
Andreanof Electric Corporation
PO Box 47076
Atka, Alaska 99547
Work 907-581-6226
Fax 907-581-6317
Employment
Previous Experience
Atxam Corporation
Andreanof Electric Corporation
1980-Present Bookkeeper (Based in Unalaska)
Responsible for implementing payroll, accounts payable, accounts
receivable, general ledger, payroll tax filings and schedules, tracking
utility expenses and revenue, and preparation of required utility
reports.
City of Atka (Based in Unalaska)
1998-Present City Administrator
Responsible for day-to-day administration of small second-class city,
financial management, budgeting, grant writing and administration,
planning, purchasing, risk management and serves as personnel
officer for City.
Girl Scouts Susitna Council, Anchorage Alaska
1992-1998 Accountant/Info. Systems Director/QSP Manager
Responsible for fund accounting for $1.5 annual budget, preparation
of annual operating budget 20+ cost centers, payroll for 12-40
employees, risk management, computer network manager,
researched, evaluated and implemented organization’s new
technology, managed membership database and registration systems,
supervised one data entry clerk, managed annual magazine fund
raising drive.
Bezek-Durst-Seiser, Anchorage, Alaska
1991-1992 Research Planner
Research, writing, editing, and producing public facility planning
documents and computer graphics at an architectural firm.
City of Atka, Atka Alaska
1988 — 1991 City Administrator
Responsible for day-to-day administration of small second-class city,
financial management, budgeting, grant writing and administration,
planning, purchasing, and served as personnel officer for City.
Atxam Corporation /Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Appendix A-13
Julie Dirks Resume
Continued
Other Work Experience
Education
Skills & Training
Community Work
Atka IRA Council, Atka Alaska
1982-1988 Administrator
Responsible for day-to-day management of tribal government, grant
writing and administration, and financial management.
Administrative at ANCSA village corporation, a regional non-profit,
an educational non-profit, a university, and State of Alaska
Bookkeeper for several small non-profit or for-profit organizations
Clerical work at insurance companies
1971 High School Diploma Morningside High Inglewood, CA
1992 Bachelor General Studies Indiana University
Bookkeeping
Budget Preparation and Maintenance
Grant Writing and Administration
Novell Network Administration
Computer training using proprietary software
Utility Organization Management
Community Planning
Risk Management
2002 - Present Aleutians West CRSA, Secretary/Treasurer
2001 - 2002 Unalaska Child Care Center, Treasurer
1989 - 1991 Aleutian Region School District, President of Board
1987 —1991 Aleutians West CRSA, President
1988-1991 Aleutian Housing Authority, Secretary/Treasurer
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Appendix A-14
ATXAM CORPORATION/ ANDREANOF ELECTRIC CORPORATION
Jos DESCRIPTION
ELECTRIC POWER GENERATION FACILITY MANAGER
Exempt (Y/N): No Salary:
Division: Andreanof Electric Corporation Location: Atka
Employee: Supervisor: President
Approved By: Board Members Date:
SUMMakyY: Plans and directs activities of electric power generation facility operations. Ensures
facility is maintained according to guidelines outlined in Business Plan, the Operations and
Maintenance Manual, all manufacturers’ recommendations for maintenance, and all State and
Federal laws and regulations governing operation.
ESSENTIAL DUTIES AND RESPONSIBILITIES include the following. Other duties may be assigned.
Acts as point of contact for communications between the Atxam Corporation/Andreanof
Electric Corporation, the Denali Commission, Regulatory Agencies, and other interested
parties.
Interprets company policies and methods and develops specific operating procedures.
Delegates functional activities to workers and establishes supervisory schedules and
responsibilities to ensure quality and timeliness of independent decisions required to provide
continuous service to public and safety of workers.
Maintains operator training program and training records to ensure that trained operators are
available to maintain sustained Facility operation.
Assists bookkeeper with annual report of operations to the Denali Commission and other
required reporting.
Implements the spill response and related regulatory plans and ensure that required spill
response and related regulatory plans are updated and available on-site: Ensures the
reliability of the spill response equipment, maintains the proper records, and conducts
periodic spill drills.
Oversees proactive program to recognize, identify and correct operational problems within
the facility. Investigates, evaluates, and determines best application of new developments in
electric power generation industry, and devises other means of securing maximum efficiency
of personnel and equipment.
Directs maintenance of property records and upkeep of equipment and structures.
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Appendix A-15
Job Description
Electric Power Generation Facility Manager
Page 2
SUPERVISORY RESPONSIBILITIES:
Directly supervises employees in the Electric Power Generation Facility. Carries out supervisory
responsibilities in accordance with the organization's policies and applicable laws. Responsibilities
include interviewing, hiring, and training employees; planning, assigning, and directing work;
appraising performance; addressing complaints and resolving problems.
QUALIFICATIONS: To perform this job successfully, an individual must be able to perform each
essential duty satisfactorily. The requirements listed below are representative of the knowledge, skill,
and/or ability required.
Education and/or Experience: Associate's degree (A. A.) or equivalent from two-year
college or technical school; or six months to one year related experience and/or training; or
equivalent combination of education and experience.
Language Skills: Ability to read and interpret documents such as safety rules, operating
and maintenance instructions, and procedure manuals. Ability to write routine reports and
correspondence. Ability to speak effectively before groups of customers or employees of
organization.
Reasoning Ability: Ability to solve practical problems and deal with a variety of concrete
variables in situations where only limited standardization exists. Ability to interpret a variety
of instructions furnished in written, oral, diagram, or schedule form.
PHYSICAL DEMANDS: The job will be physically demanding; will be required to push, maneuver
and sometimes lift heavy objects.
Atxam Corporation/Andreanof Electric Corporation
Electric Utility Upgrade Business Operating Plan
Appendix A-16
APPENDIX B: O&M AND R&R CosT ESTIMATE
Power Plant Operation Maintenance and Replacement Renewal
Atxam Corporation / Andreanof Electric Corporation Blectnic Unlity Upgrade Business Operating Plan Appendix B-1
Power Plant Operation Maintenance and Replacement Renewal
feadcost ye Bye See fr
4
tal
il 4 SERREEESEER EE
TUTE
Arcam Corporation / Andreanof Electnic Corporation Electric Unity Upgrade Business Operating Plan Appendix B-2 4 Sse SSRN ST [ony SO
ADDITIONAL RELATED AND ATTACHED DOCUMENTS
1. Secondary Operator Agreement
2. Site Control Documents
3. Grant Agreement
4. R&R Fund Account — Sample Documents
SECONDARY OPERATOR AGREEMENT
FOR THE CITY OF ATKA’S
ELECTRIC POWER UTILITY FACILITY
WHEREAS, the Denali Commission (“Commission”) has provided, or will provide, funds to the
Alaska Energy Authority (“Authority”) for a grant by the Authority to the City of Atka (“City”) for
the upgrading of electric power generation facilities at Atka, Alaska (the “Facility”) owned by the
City; and
WHEREAS, grant funds will also be provided by HUD and/or the State of Alaska, and the financial
aspects of those separate grants will be managed and the Facility construction will be overseen by
the Commission (which term shall include HUD and/or the State of Alaska in this Secondary
Operator Agreement for the Facility, hereinafter the “Agreement”); and
WHEREAS, the Commission has adopted Sustainability Criteria that apply to the use of Commission
funds for the Facility, in order to ensure the long-term economic sustainability of the Facility; and
WHEREAS, the Commission and the City have agreed to a Business Plan consistent with the
Sustainability Criteria for the operation of the Facility, as contained in the Atxam
Corporation/Andreanof Electric Corporation (Corporation) Electric Utility Upgrade Business
Operating Plan dated February 16, 2005 (“Plan”); and
WHEREAS, the Plan specifies that the Corporation shall act as the Primary Operator of the Facility,
as specified therein, and shall operate the Facility in compliance with the terms and conditions of the
Plan; and
WHEREAS, the Commission and the City agree that, if the Primary Operator is not operating the
Facility in compliance with the terms and conditions of the Plan, the Commission may designate a
Secondary Operator to assist the Primary Operator or to take over such functions of the Facility
operations that the Commission determines are necessary for such time as it determines is necessary,
pursuant to the terms and conditions of this Agreement;
Now THEREFORE, the Commission and the City agree as follows, in consideration for the mutual
promises contained herein and the benefits to the parties resulting from the completion and
operation of the Facility:
1. The Primary Operator shall operate the components of the Facility specified in the Plan in
accordance with the terms and conditions of the Plan and the requirements contained herein.
2. In addition to, and consistent with its duties specified in the Plan, the Primary Operator shall, in
a timely manner:
2.1 properly establish and maintain accurate books and records;
2.2 account for, bill for, and use its best efforts to collect all sales and all other receivables;
Secondary Operator Agreement for the City of Atka’s Electric Power Utility Facility
Page 2 of 4
2.3
2.4
2.5
2.6
Pf
2.8
deposit moneys into the appropriate accounts, including deposits into the Operations &
Maintenance Fund account as well as deposits into the Renewal & Replacement account
(as such accounts are defined in the Plan);
maintain adequate cash reserves for fuel purchases so that emergency fuel shipments are
not necessary;
obtain annual audits showing the absence of any management or financial irregularities;
perform necessary maintenance of and repairs to the Facility;
provide or obtain necessary training for Facility operations; and
meet its financial obligations.
3. If the Commission determines, in the exercise of its sole discretion, that the Primary Operator
has failed or is unable to operate the Facility in accordance with the Plan and this Agreement
and that this failure or inability significantly threatens the long-term economic sustainability of
the Facility, the Commission may contract with and utilize a Secondary Operator.
4. The Commission has the sole right to transfer the full custody and control of the assets and
business operations of the Facility, including but not limited to, the cash, receivables, and
inventory of the Facility, to the Secondary Operator and assign the Secondary Operator
responsibility for partial or total management of the Facility.
4.1
4.2
4.3
The Commission may appoint the Secondary Operator to assist the Primary Operator in
some or all aspects of the Facility operations or to take over some or all aspects of Facility
operation from the Primary Operator, in such a manner and for such period of time as the
Commission determines to be necessary and appropriate for operation of the Facility in
compliance with the Plan and the long-term economic sustainability of the Facility. (For
example, the Secondary Operator may be asked to assist the Primary Operator for a short
period of days or weeks in bringing certain aspects of the operations back into compliance.
Alternatively, the Secondary Operator may be asked to replace the Primary Operator as
Facility operator. The foregoing are intended only as illustrative examples, without limiting
the effect of this Agreement.)
If the Commission utilizes a Secondary Operator, the Primary Operator will transfer the
complete control and authority over the following assets to the Secondary Operator: the
books and records relating to the Facility operations, accounts receivable, and all account
funds. The City agrees to cooperate with the Commission and the Secondary Operator in
the release of the stated assets and the transfer of operations to the Secondary Operator.
The Secondary Operator will be entitled to reasonable compensation for its services. This
compensation will, at a minimum, reimburse the Secondary Operator for any and all
expenses associated with their duties as Facility operator, plus a reasonable profit. The
profit will not exceed what is considered normal and customary for like service, as
determined by the Commission in the exercise of its sole discretion.
Secondary Operator Agreement for the City of Atka’s Electric Power Utility Facility
Page 3 of 4
10.
4.4 The parties anticipate that, if a Secondary Operator is appointed, the Commission will
appoint (/o be determined). However, the parties acknowledge that (¢o be determined) may not
exist or be willing to serve in this capacity at the time a Secondary Operator is needed, or
other circumstances may prevent (fo be determined) from serving as Secondary Operator.
Therefore, the City acknowledges and agrees that the Commission may appoint any
qualified entity or entities to serve as Secondary Operator. The Commission will consult
with the City on the replacement to the Secondary Operator; however, the Commission
maintains final approval authority for the replacement Secondary Operator.
4.5 The Commission will act reasonably and responsibly in its enforcement of the Plan and
this Agreement and its designation of a Secondary Operator, consulting with the City and
taking into account the needs and interests of the community of Atka as well as the general
public interest. If the Commission employs the Secondary Operator, the Commission
shall oversee the operations of the Secondary Operator to make sure that it is conducting
its operations reasonably, in a cost-efficient manner, and consistent with the needs and
interests of the community as well as the general public interest.
If a dispute or controversy arises between the parties to this Agreement or among the parties to
an agreement with the Secondary Operator, application or enforcement of this Agreement shall
be decided through mediation. If mediation is unsuccessful, any party to this Agreement may
bring an action to resolve the dispute in the Superior Court of the State of Alaska.
This Agreement may be executed simultaneously in two (2) or more counterparts, each of which
will be considered an original, but all of which together will constitute one and the same
instrument. The exchange of a fully executed Agreement (in counterparts or otherwise) by fax
shall be sufficient to bind the parties to the terms and conditions of this Agreement.
No delay on the part of a party in the exercise of any right, power, or remedy shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, power, or remedy preclude other
or further exercise thereof or the exercise of any other right, power, or remedy. No amendment,
modification, or waiver of, or consent with respect to, any provision of this Agreement shall be
effective unless it shall be in writing and signed and delivered by the parties hereto.
All notices, demands or requests required or allowed under this Agreement or applicable law from
one party to another shall be in writing and delivered in person or sent by mail, certified or
registered, postage prepaid, to the parties hereto at the addresses set forth in this Agreement or to
such other persons and addresses as either party may designate. Notice shall be deemed to have
been given three (3) days after the day of mailing.
This Agreement is a contract made under and governed by the laws of the State of Alaska. All
obligations and rights of the parties stated herein shall be in addition to, and not in limitation of,
those provided by applicable law.
This Agreement shall be binding upon, and inure to the benefit of, the parties hereto, and their
respective heirs, successors, and assigns.
Secondary Operator Agreement for the City of Atka’s Electric Power Utility Facility
Page 4 of 4
11. This Agreement represents the entire agreement between the parties, and there are no other
agreements, either oral or written, with respect to the subject matter of this Agreement.
This AGREEMENT has been reviewed, agreed to, and executed by the following patties:
for the CITY OF ATKA |
b be o
i Gee Mea) §-/35-5$
ignature) (Date) ;
Wile Bikes ADHIWISTRA 70>
(Name Printed) (Title
for the DENALI COMMISSION A ee GNM A eae
(Signature) (Date)
Tessa hy D. Rinnec Dicechor & “Pregcans
(Name Printed) (Title)
for the (TQ BE DETERMINED)
by
(Signature) (Date)
(Name Printed) (Title)
DUPLICATE
UNITED STATES
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
Alaska State Office
Division of Cadastral Survey
222 W. 7th Avenue
Anchorage, Alaska
SPECIAL INSTRUCTIONS
Atka Alaska
June 26, 2002
These Special Instructions provide for the survey of
lands identified by Atxam Native Corporation, a
Village Corporation, to be reconveyed under Section
14(c) of the Alaska Native Claims Settlement Act
(ANCSA). This ANCSA 14(c) Survey is situated in the vicinity of Atka, Alaska, within Townships 91 and 92 South, Range 176 West, Seward Meridian and also includes 8 remote ANCSA 14(c) claims situated within Townships 91 and 92 South, Range 176 West, Seward Meridian and within Township 54 South, Range 78 West, Seward Meridian.
In the execution of this survey the assigned surveyor is authorized and directed to make the described examination, retracements, re-establishment of points of control, surveys, and resurveys, as may be necessary, to survey the parcels identified by Atxam village Corporation, for their ANCSA 14(c) reconveyances. The surveyor will be guided by the Manual of Surveying Instructions, 1973, hereinafter referred to as the Manual. the Alaska State Office, ANCSA 14(c) Survey Handbook, Rev. March, 1992, the provisions of the following Special Instructions, and such supplemental instructions as may be issued during the progress of work.
AUTHORITY
This survey is authorized by Section 13 of ANCSA, Public Law 92-203 (85 Stat. 688, 702, 703), dated December 18, 1971, and will be executed according to the approved Atka
ANCSA 14(c) Map of Boundaries which includes the cover letter, metes and bounds
descriptions, and other support documentation; the attached Plan of Survey (14 sheets); and these Special Instructions.
APPROPRIATION
Costs of this survey are payable out of the current Management of Lands and Resources appropriation in accordance with administrative requirements. Project codes for accounting purposes will be specified in the Assignment Instructions.
City of Atka Page 1 of 21
Bulk Fuel Facility Business Operating Plan
Site Control Documents
LIMIT AND CHARACTER OF WORK
This survey is limited to the establishment of the boundaries of the ANCSA 14(c)
Lots; for location purposes, ties to appropriate monuments of nearby surveys. or control
monuments; and the retracement and/or dependent resurvey of any contiguous survey(s) to
the extent necessary to execute this survey.
HISTORY OF SURVEYS
The south and east boundaries and a portion of the subdivisional lines of Township
53 South, Range 78 West, Seward Meridian, were surveyed in 1980.
The south and east boundaries and a portion of the subdivisional lines; and meanders
of Township 53 South, Range 79 West, Seward Meridian, were surveyed in 1980.
U.S. Survey No. 2015, located contiguous with Lots 14, 33 and 41 was surveyed in
1962.
Atka Dock Creek Road, Plat No. 96-7 (4 sheets), located throughout this survey, was
surveyed in 1996.
Atka School, Plat No. 82-5, Aleutian Islands Recording District, State of Alaska,
was surveyed in 1982.
ATS 1522, Plat No. 96-24, Aleutian Islands Recording District, State of Alaska, was
surveyed in 1996.
Atka Subdivision, Plat No. 82-6, Aleutian Islands Recording District, State of
Alaska, was surveyed in 1982.
National Geodetic Survey geodetic control station "BOB," located approximately 375
feet easterly of Lot 1 of this survey, was established in 1925.
METHOD AND ORDER OF PROCEDURE
All of the ANCSA 14(c) reconveyances on fhe Plan of Survey for Atka, Alaska, are on
surface estate lands interim conveyed from the United States of America, by Interim
Conveyance No. 159, dated February 27, 1979, and Patent No. 50-79-0051, dated February 27,
1979, both to The Atxam Native Corporation.
The Map of Boundaries for Atka was accepted April 29, 2002. This is also the
official filing date that began the one-year statute of limitations proclaimed by Public
Notice, pursuant to ANILCA Section 902(b).
The intent of the ANCSA 14(c) Survey is to have the reconveyance parcels surveyed in
the same relative configurations, positions, and sizes as shown on the submitted and
approved Atka Map of Boundaries, in as much as ground conditions allow.
The surveyor assigned is authorized to make minor adjustments to the Atka ANCSA
14(c) Plan of Survey due to unexpected conditions found during the course of the field
survey and to avoid creating unmanageable slivers or strips of land. Any major change
will be coordinated with the Atxam Native Corporation and ANCSA 14(c) Specialist and will
be documented and submitted to the ANCSA 14(c) Specialist to file with the village ANCSA 14(c) casefile for Atxam.
Staking of lot corners will control the corner positions of this survey and may
change the Plan of Survey.
City of Atka
Bulk Fuel Facility Business Operating Plan
Site Control Documents
Page 2 of 21
The bearings and distances on the Plan of Survey and/or Attachments shall control
the actual field survey unless retracements of record bearings and distances are
necessary. Adjustments may be made to allow for the approximate map scale, aerial
photography interpretation, and any changes that may be necessary to incorporate existing
locations and the original intent of the ANCSA 14(c) reconveyance agreements. Lot numbers
have been assigned to the ANCSA 14(c) parcels for identification purposes, which are
subject to change per the actual field survey, with any new designators and/or additional
corners being assigned by the field surveyor.
Any existing survey will be retraced and/or.dependently resurveyed to the extent
necessary to execute this survey and labeled accordingly on the final ANCSA 14(c) plat.
It will not be necessary to record a dependent resurvey as part of the Public Land records iff the lands involved with the ANCSA 14(c) reconveyances have been transferred to private
ownership with no further public land interests in the area.
If a corner of the Public Land Survey System used in the execution of this survey
needs either rehabilitation or remonumentation, the surveyor is hereby given the authority to rehabilitate or remonument the corner.
Typical ANCSA 14(c) primary and secondary monumentation will be used for this
survey. Where prudent, accessories will be taken for primary monuments. Though it will
not be necessary to take accessories for the secondary monuments, this decision is left to
the discretion of the assigned surveyor.
Use of primary monumentation is recommended on all corners of each remote ANCSA
14(c) (1) claim, with two (2) accessories taken at each monument set.
Secondary monumentation may be used for the Lot corners when there is enough control
within the ANCSA 14(c) Survey to assist in future comer recovery.
Roadways will be monumented every 2640 to 2970 feet, at points of curvature (PC) or
points of tangency (PT) if possible, with primary monumentation on the exterior boundary
of the Right-of-Way. Intermediate PC’s and PT’s will not be monumented but will be noted
on the plat. To reduce the number of directional changes of the Right-of-Way, it will not
be necessary to center the existing road in the Right-of-Way.
ANCSA 14(c) cap markings will not be added to existing Federal and private survey monuments which are identical with monuments of or on lines contiguous with lines of an
ANCSA 14(c) Survey. However, if a monument of an approved Federal or private survey,
including a rebar, is determined to be destroyed, it will be remonumented with an ANCSA
14(c) monument. Besides identifying the new ANCSA 14(c) Lot, the new markings will
replicate the original markings, if any. Similarly, if a new ANCSA 14(c) corner falls on
a U.S. Survey line, the monument will be marked to reflect the adjacent U.S. Survey in
addition to the ANCSA 14(c) Survey. Any recovered rebar will be brought to federal standards.
The noncontiguous tracts of this survey will either be tied together or individually
tied to the nearest practical Public Land Survey System corner or to a published
horizontal control station. All ties will be measured twice for verification. If the
corner tied to is of an unapproved survey or a geodetic control station, the datum used
and the revised value used in determining the geographic position of this survey will be noted on the final plat.
Ties to improvements will not be necessary unless they are needed as corner
accessories. Additional requests for ties to improvements made by a Village Corporation
ANCSA 14(c) Representative prior to or during the field survey will be documented and approved through the ANCSA 14(c) Specialist before incorporating into the ANCSA 14(c) Survey.
City of Atka Page 3 of 21
Bulk Fuel Facility Business Operating Plan
Site Control Documents
A t No. i of Atka: (sheet 1)
To accommodate a 14(c)(3) 10 foot wide fuel line easement centered on existing fuel
line. Ends at meanders of Nazan Bay. Identify easement on final plat.
Monumentation not required.
Area approx. 0.15 Acres
ANCSA Survey Lot No. 64/ City of Atka: (sheet 1)
To accommodate a 14(c)(3) fuel tank storage site.
Area approx. 3.01 Acres
ANCSA Survey Lot No. 65/ City of Atka: (sheet 1)
To accommodate a 14(c)(3) 10 foot wide water line easement centered on existing
pipe. North end ends at existing dam. Identify easement on final plat. Monumentation not required.
Area approx. 0.40 Acres
70 of 3 (sheet 1)
To accommodate a 14(c)(3) 50 foot right-of-way over proposed route to hydroelectric
facilities which turns into a 15 foot right-of-way on proposed route to a small boat harbor.
Area approx. 3.21 Acres
ANCSA Survey Lot No. 72/ City of Atka: (sheet 1)
To accommodate a 14(c)(3) 50 foot right-of-way centered on existing road.
Area approx. 3.46 Acres
ANCSA Survey Lot No. 73/ City of Atka: (sheet 1)
To accommodate a 14(c)(3) 50 foot right-of-way centered on existing road to new landfill.
Area approx. 0.69 Acres
ANCSA Survey Lot No. 74/ John Golodoff: (sheets 7 & 8)
To accommodate a remote 14(c)(1) parcel on the southerly side of Korovin Creek near Korovin Bay.
Area approx. 0.27 Acres
ANCSA Survey Lot No. _75/ Daniel Prokopeuff: (sheets 7 & 8)
To accommodate a remote 14(c)(1) parcel on the southerly side of Korovin Creek near Korovin Bay.
Area approx. 0.21 Acres
7 irido: ney: (sheet 9)
To accommodate a remote 14(c)(1) parcel in section 22 near Nazan Bay.
Area approx. 0.29 Acres
10
City of Atka Page 4 of 21
Bulk Fuel Facility Business Operating Plan
Site Control Documents
The assigned surveyor will notify the ANCSA 14(c) Specialist when the estimated
survey commencement date is known for the Atka 14(c) Survey to review the status of the
Special Instructions.
Authorized ANCSA 14(c) Representatives familiar with the Atka ANCSA 14(c) claims
and/or selections: Mark Snigaroff, President
Atxam Corporation
P.O. Box 47001 Atka, AK 99547
(907) 839-2237
DIAGRAMS AND SUPPLEMENTAL DATA
Data pertinent to this survey will be furnished and include copies of maps, plats,
field notes, horizontal control data, Master Title Plats, and Interim Conveyance No. 159 and Patent No. 50-79-0051, for the surface estate to the Village Corporation. The Atka
ANCSA 14(c) Map of Boundaries, the Department of Transportation & Public Facilities Atka
Airport Property Plan, and the Plan of Survey (14 sheets) will be attached to and made a
part of these Special Instructions. Any additional information needed will be furnished
upon request .
FIELD NOTES, PLATS, AND REPORTS
A sketch plat shall be maintained during the survey in the field showing pertinent
topography, adjacent surveys, required ties, and closures of areas surveyed under these
instructions. The survey shall be reviewed for correctness and completeness in the field.
All sketch plat(s) and supporting survey information will be reviewed within the
Branch of Field Surveys prior to submittal to the Branch of Examination and Records.
The final ANCSA 14(c) Survey record will be plat(s) only format. Field notes will
only be used in special cases, which must have prior approval by the BLM Cadastral Survey Management Team.
Sheet No. 1, a cover sheet of the ANCSA 14(c) Survey for Atka will consist of the
ANCSA 14(c) Survey title, plat memorandum, the required signature blocks, any pertinent
notes to the particular survey, and an overview diagram that outlines all of the ANCSA
14(c) Survey at Atka. The statement blocks will be for the Cadastral Surveyor’s
certification, the village Corporation’s affidavit, and acceptance by the Deputy State
Director(DSD) for Cadastral Survey and Geomatics. The assigned Cadastral Surveyor and the
Village Corporation President will attest their signatures prior to the DSD for Cadastral
Survey. The DSD will sign and date the final plat for BLM’s approval of the ANCSA 14(c)
Survey and compliance with the requirements of Section 14(c) of ANCSA.
The approved ANCSA 14(c) plat{s) for Atka will be officially recorded with the State
of Alaska, and filed in the Aleutian Islands Recording District.
12
City of Atka Page 5 of 21
Bulk Fuel Facility Business Operating Plan
Site Control Documents
MODIFICATION OF INSTRUCTIONS
Should conditions arise appearing to demand additional instructions, require
interpretation of these instructions, or which make these instructions inapplicable, a
report will be submitted promptly to the Chief, Branch of Survey Preparation and Policy
Interpretation, describing the situation with recommendations to resolve such problems.
Chew Wee >=
Eileen Newman, Cadastral Surveyor
Approval Date: ane iS Zoo
Approvin: tri ‘Surveyor
925:ENewman/JBLewis:csancheta:x3854:07/15/02
13
City of Atka Page 6 of 21
Bulk Fuel Facility Business Operating Plan
Site Control Documents
LEASE
saad ac tint DE ll Lay 2005, between Atxam
Corporation, an Alaskan Corporation, hereinafter call Lessor, whose address is P.O. Box
47001, Atka, Alaska 99547 and the City of Atka, hereinafter called the Lessee, whose address is
P.O. Box 47070, Atka, Alaska 99547
The parties agree as follows:
a The Premises. The Lessor agrees to lease to the Lessee the exclusive right to construct,
operate, and maintain hydroelectric facilities, including Dam (Intake) and Power House
Site, on the surface estate of the following real property which is located in the Aleutian
Islands Recording District, State of Alaska.
Two parcels of land for Dam (Intake) Site and Power House Site, located within Section
22, Township 92 South, Range 176 West, Seward Meridian, as shown on the attached
Exhibit A. The general location, as shown on Exhibit A, is subject to redescription upon
survey, as necessary, to reflect as built alignments of improvements.
Term of Lease. The lease term shall be 40 years from the date that this lease is signed by
both parties. When the lease expires, the Lessee shall have 60 days within which to
exercise an option to renew this lease of an additional 40-year term.
Rent. Consideration for this lease consists of the mutual promises contained herein and the mutual benefits from the operation for the public benefit of hydroelectric facilities on the premises. No rental will be charged for this lease because of mutual benefits of the project.
Reservation of Rights. The Lessor reserves the right to grant to others the rights and
privileges to use the premises not specifically and exclusively granted to the Lessee. The rights and privileges granted to the Lessee in this lease are the only rights and privileges granted to the Lessee by this lease. The Lessee has no easements, rights or privileges,
expressed or implied, other than those specifically granted by this lease.
Valid Existing Rights. This lease is entered into and made subject to all valid existing
rights, including easements, rights-of-way, reservations, or other interests in the premises, in existence on the date the lease is entered into.
Encumbrance of Premises. During the term of this lease, the Lessee may not assign this lease or sublet the premises, nor enter into any lease, easement, or other obligation of the
City of Atka Page 7 of 21
Bulk Fuel Facility Business Operating Plan
Site Control Documents
10.
aa
Lessor’s title without the prior written approval of the Lessor. Any such act, without prior
written approval of the Lessor, is void against the Lessor's title to the premises.
Successors Bound. All covenants and provisions in this lease extend to and bind the legal
representatives, successors, sublessees, and assigns of the parties.
Access to Premises. The Lessor or its authorized representatives reserve the right of ingress
to and egress from the premises.
Operation and Maintenance. At no cost to the Lessor, the Lessee will provide all utilities,
services, and maintenance necessary for the Lessee's use of the premises. The Lessee will
take reasonable steps to protect the surface of the leased area and natural resources, and
improvements thereon, and maintain the premises in a reasonably neat and clean condition.
Surface Reservation. Unless otherwise stated in this lease, the Lessee may not sell or
remove for use elsewhere any of the surface resources of the premises.
Breach and Remedies.
(a) The premises are to be used only for purposes related to developing and operating a
hydroelectric site and related facilities. The premises are to be used only for
purposes related to developing and operating the hydroelectric facilities and other
related activities that will serve the greater good of the community of Atka and for nc
other purpose without specific written authorization of the Lessor. The Lessor retains
the right to terminate this lease upon 30 days written notice if the premises are used
for unauthorized purposes.
(b) Time is of the essence in this lease. If the Lessee breaches any provision of this lease,
other than a breach for improper use of the premises which is governed by
subparagraph (a), and the breach is not remedied within 30 days after written notice
of it has been served on the Lessee, the Lessee is subject to any legal action that the
Lessor considers appropriate, including the termination of this lease. The Lessor is
not liable for any expenditures made by the Lessee in the event of the termination of
this lease.
(c) If this lease is terminated by summary proceeding or in any other manner, or if the
premises or any part of it is abandoned by the Lessee during the term of this lease,
the Lessor, after written notice to the Lessee, may immediately, or at any time
afterwards, enter or re-enter and take possession of the premises, or any part of it,
without liability for any damage, and may remove all persons and property from it
either by summary proceeding or by legal action. The words "entry" and “re-entry” are not restricted to their technical legal meaning.
City of Atka Page 8 of 21
Bulk Fuel Facility Business Operating Plan
Site Control Documents
12.
15:
14.
aSs
16.
No waiver. The failure of the Lessor to insist on any one or more instance upon the strict
performance by the other party of any provision in this lease may not be considered as a
waiver for the future; the provision will continue in full force.
Indemnity of Lessor. The Lessee shall indemnify and hold the Lessor harmless from:
(a) all claims and demands for loss or damage, including property damage, personal
injury, wrongful death, and wage or employment claims, arising out of or in
connection with the use or occupancy of the premises by the Lessee or his
successor, or at his invitation; and
(b) any accident or fire on the premises resulting from use or occupancy of the
premises by Lessee, its successors, or its invitees; and
(c) any nuisance on the premises arising from use or occupancy of the premises by
Lessee, its successors, or its invitees; and
(d) any failure of the Lessee to keep the premises in a safe and lawful condition
consistent with applicable laws, regulations, ordinances, or orders; and
(e) any assignment, sublease, or conveyance, attempted or successful, by the Lessee
which is contrary to the provisions of this lease.
The Lessee will keep all goods, materials, furniture, fixtures, equipment, machinery, and
other property on the premises at his sole risk, and will hold the Lessor harmless from any
claim Of loss or damage to them by any cause.
Notice of Claim. The parties agree to immediately notify each other of any claim, demand,
or lawsuit arising out of or affecting the Lessee's occupation or use of the premises. Both
parties will fully cooperate in the investigation and litigation of any claim, demand, or
lawsuit affecting the premises.
Laws and Taxes. At no expense to the Lessor, the Lessee will conduct all activities
authorized by this lease in compliance with all Federal, State, and local laws, ordinances,
rules and regulations now or hereafter in force, which apply to the activities authorized
herein or to the use, care, operation, maintenance, and protection of the facilities, including
but not limited to matters of health, safety, sanitation, and pollution. The acquisition of any
necessary licenses or permits and payment of any taxes and special assessments accruing against the premises during this lease term will be the responsibility of the Lessee or its
sublessees and not that of the Lessor.
Notices. All notices and other writings required or permitted by this lease must be sent by registered or certified mail, postage prepaid, to the parties at the following addresses. A party must notify the other in writing of any change in address.
City of Atka Page 9 of 21 Bulk Fuel Facility Business Operating Plan
Site Control Documents
Lessor: Atxam Corporation
P.O. Box 47001
Atka, AK 99547
Lessee: City of Atka
P.O. Box 47070
Atka, AK 99547
17. Denial of Warranty Concerning Title or Conditions. The Lessor make no specific
warranties, expressed or implied, concerning the title or condition of the premises,
including survey, access, or suitability for any use, including those uses authorized by this
lease. The Lessee leases the premises subject to any and all of the covenants, terms, and
conditions affecting the Lessor’s title to the premises.
18. Integration and Modification. This lease, including all documents, which by reference are
incorporated in it or made a part of it, contains the entire agreement between the parties.
This lease may not be modified or amended except by a document signed by both parties to
this lease. Any amendment or modification, which is not in writing and signed by both
parties, is of no legal effect.
19. Severability of Clauses of Lease. If any provision of this lease is adjudged to be invalid,
that judgment does not affect the validity of any other provision of this lease, nor does it
constitute any cause of action in favor of either party as against the other.
20. Headings. The heading of the numbered paragraphs in this lease shall not be considered in
construing any provision of this lease.
BY SIGNING THIS LEASE, the Lessor and the Lessee, agree to be bound by its provision as set
out above.
Attachment
Exhibit A: Property Plan
City of Atka Page 10 of 21
Bulk Fuel Facility Business Operating Plan
Site Control Documents
STATE OF ALASKA )
) ss.
JUDICIAL DISTRICT )
This is to certify that on 2005, ne eee
oe 20 known by me to be the “ Yres; deat , of Atxam
ration, ecuted this lease and acknowledged voh it behalf gt s luntarily signing it on of
(SEAL) u Doral ALLY Notary Public in and for the State of Al
My commission expires:
City of Atka Page 11 of 21
Bulk Fuel Facility Business Operating Plan
Site Control Documents
Lessee: City of Atka
LTdy oR
ACKNOWLEDGMENT
STATE OF ALASKA )
) ss.
JUDICIAL DISTRICT)
This is to certify that on_ May at , 2005, before me appeared (—, xe \y
known by me to be the j , of the City of Atka, who executed this lease
and acknowledged voluntarily signing it on behalf of the City of Atka as Lessee.
(SEAL) Savala Ma4ehelf,
Notary Public in and for the State of Alaska
My commission expires:
City of Atka Page 12 of 21
Bulk Fuel Facility Business Operating Plan
Site Control Documents
= 8 3
a & 3
8 8
Mean
Magnetic
Declination
N.G.S.
”BOB”
POWER [4 i HOUSE SITE (200’ x 200’) DAM SITE (200° x 200’)
City of Atka
Bulk Fuel Facility Business Operating Plan
Site Control Documents
ATKA, ALASKA
EXHIBIT A
DAM AND POWER HOUSE SITES
Page 13 of 21
POWER LINE AND TRAIL EASEMENT
The GRANTOR, Atxam Corporation, an Alaskan Corporation, whose address is P.O. Box 47001, Atka,
Alaska 99547, for good and valuable consideration, conveys and warrants to the GRANTEE, the City of
Atka., whose address is P.O. Box 47070, Atka, Alaska 99547, and to its successors and assigns an
Easement in perpetuity for power lines and access trail, pertaining to.the following described real estate
located in the Aleutian Islands Recording District, State of Alaska:
An easement, 60 feet in width, across a portion of Section 22, Township 92 South, Range 178
West, Seward Meridian, Alaska, as shown on the attached Exhibit A. The centerline for the
easement will be the newly installed power line. The general location is shown on the attached
Exhibit A and is subject to redescription upon survey, as necessary, to reflect as built alignments
of improvements.
The Grantee is allowed to construct, reconstruct, maintain, repair, operate, improve, and update upon, over
and under the above described lands and/or in, or upon all streets, roads, or highways abutting said lands,
for power lines and access trail and such other related structures as the GRANTEE may now or shall from
time to time deem necessary.
All covenants and provisions in this Easement extend to and bind the legal representatives, successors, assignees,
licensees, and permittees of the parties.
The parties agree that the specific property right for the purpose of power lines and access trail herein comprises the
dominant land use for the premises and any other land uses are to be subservient to the dominant land use. The
GRANTOR reserves the right to use the premises on its own behalf or make grants to third parties affecting the
premises where the use by the GRANTOR or third parties does not interfere with the dominant use of the premises
as power lines and access trail. Any proposal by the GRANTOR to so use the premises or to make such grants will
be subject to review by the GRANTEE whose concurrence will not be unreasonably withheld nor unreasonable
restrictions imposed as a condition of its concurrence. The GRANTEE is authorized to issue permits to third parties
for compatible use that do not interfere with the dominant use of the premises as power lines with the prior approval of the GRANTOR.
The GRANTEE, at its own cost and expense, shall comply with all applicable laws, ordinances and regulations of duly constituted public authorities now or hereafter enacted that in any manner affect the Premises or the use thereof. GRANTEE agrees to indemnify, defend and hold GRANTOR, its agents and employees harmless from the consequences of any violation of such laws, ordinances and/or regulations, and from all claims for damages on account of injuries, death or property damage resulting from such violation.
The GRANTEE shall defend, indemnify and hold harmless the GRANTOR, its agents, and employees from and against any and all liability, damages, loss, claims, demands and causes of action of any nature whatsoever, including attorney’s fees and costs and expenses incident to defense of any of the foregoing by GRANTOR, which arise from or are connected with this Easement or the GRANTEE’s use and occupation of the Easement, including but not limited to all damages and clean-up costs related in any way to
discharges, leaks or spills of hazardous or noxious substances including fuel.
City of Atka Page 14 of 21 city of 2
Bulk Fuel Facility Business Operating Plan
Site Control Documents
City of Atka
It is mutually agreed, that the GRANTEE has the right, at all times, to do anything reasonably necessary, usefull or
convenient within the boundaries of this Easement in connection with the maintenance of the power lines and acces:
trail, including the right to cut and keep clear all trees, shrubbery, undergrowth and other obstructions within this
Easement.
This Easement will remain in full force and effect for so long as the Easement is used for power lines and access
trail. In the event the Easement is no longer used for power line and access trail purposes, this Easement will
automatically terminate.
All improvements placed on the property at the GRANTEE’s expense shall remain the property of the
GRANTEE and removable at its option. The failure of the GRANTEE, its successors or assigns, to
exercise any of the rights herein granted shall not be construed as a waiver or abandonment of the rights
thereafter at any time and from time to time to exercise any or all of such rights.
IN WITNESS WHEREOF, the GRANTOR has caused this Easement to be executed this 7 day of
Wa y , 2005.
GRANTOR: A’ IRPORATION _ a
its: La
ACKNOWLEDGEMENT
STATE OF ) )ss. JUDICIAL DISTRICT 5)
THIS IS TO CERTIFY that on the S245 day of 2005, before me, the undersigned Notary
Public, duly commissioned and sworn as such, personally for and on behalf of the Atxam Corporation and acknowledged that this Easement was signed and ‘on behalf of Atxam Corporation by proper authority delegated and vested in himself, and acknowledged further said instrument to be the free act and deed of said Atxam Corporation.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above,
Page 15 of 21 Bulk Fuel Facility Business Operating Plan
Site Control Documents
The City of Atka hereby accepts this Easement.
Grantee: City of Atka
STATE OF ALASKA )
: ss.
____ JUDICIAL DISTRICT
is to certify that on 2005,
Ceorme ks : by me to be the of the City of Atka, who
creas and acknowledged volunt igning it on behalf of the City of Atka as
(SEAL)
Notary Public in and for ‘Alaska
My commission expires:
City of Atka Page 16 of 21
Bulk Fuel Facility Business Operating Plan
Site Control Documents
N.G.S.
B50"
NAZAN BAY
EASEMENT True Meridian Mean
Magnetic
Declination
8° E.
|
|
]
|
|
| ]
| ]
|
| 60" WIDE
|
|
| |
| |
| ]
|
|
|
ATKA, ALASKA
EXHIBIT A
POWER LINE AND TRAIL EASEMENT
City of Atka Page 17 of 21
Bulk Fuel Facility Business Operating Plan
Site Control Documents
PENSTOCK EASEMENT
The GRANTOR, the Atxam Corporation, whose mailing address is P.O. Box 47001, Atka, Alaska 99547,
for good and valuable consideration, conveys and warrants to the City of Atka, GRANTEE, whose mailing
address is P.O. Box 47070, Atka, Alaska 99547, and to its successors and assigns an Easement in
perpetuity pertaining to the surface estate of the following described real estate located in the Aleutian
Islands Recording District, State of Alaska:
An easement, 100 feet in width, across a portion of section 22, Township 92 South, Range 176
West, Seward Meridian, Alaska, as shown on the attached Exhibit A. The centerline for the
easement will be the newly installed penstock. The general location is shown on the attached
Exhibit A and is subject to redescription upon survey, as necessary, to reflect as built alignments
of improvements.
The Grantee is allowed to construct, reconstruct, maintain, repair, operate, improve, and update upon, over
and under the above described lands and/or in, or upon all streets, roads, or highways abutting said lands,
for penstock and such other related structures as the GRANTEE may now or shall from time to time deem
necessary.
All covenants and provisions in this Easement extend to and bind the legal representatives, successors,
assignees, licensees, and permittees of the parties. The GRANTOR agrees to not assign the fee simple
interest subject to this Easement without the consent of the GRANTEE.
land use for the premises and any other land uses are to be subservient to the dominant land use. The
GRANTOR reserves the right to use the premises on its own behalf or make grants to third parties affecting
the premises where the use by the GRANTOR or third parties does not interfere with the dominant use of
the premises as penstock. Any proposal by the GRANTOR to so use the premises or to make such grants
will be subject to review by the GRANTEE whose concurrence will not be unreasonably withheld nor
unreasonable restrictions imposed as a condition of its concurrence. The GRANTEE is authorized to issue
permits to third parties for compatible use that do not interfere with the dominant use of the premises as penstock with the prior approval of the GRANTOR.
The GRANTEE, at its own cost and expense, shall comply with all applicable laws, ordinances and
regulations of duly constituted public authorities now or hereafter enacted that in any manner affect the Premises or the use thereof. GRANTEE agrees to indemnify, defend and hold GRANTOR, its agents and
employees harmless from the consequences of any violation of such laws, ordinances and/or regulations,
and from all claims for damages on account of injuries, death or property damage resulting from such iolati
The GRANTEE shall defend, indemnify and hold harmless the GRANTOR, its agents, and employees from and against any and all liability, damages, loss, claims, demands and causes of action of any nature whatsoever, including attomey’s fees and costs and expenses incident to defense of any of the foregoing by GRANTOR, which arise from or are connected with this Easement or the GRANTEE’s use and occupation
of the Easement, including but not limited to all damages and clean-up costs related in any way to
discharges, leaks or spills of hazardous or noxious substances including fuel.
City of Atka Page 18 of 21
Bulk Fuel Facility Business Operating Plan
Site Control Documents
It is mutually agreed, that the GRANTEE has the right, at all times, to do anything reasonably necessary,
useful or convenient within the boundaries of this Easement in connection with the maintenance of the
penstock, including the right to cut and keep clear all trees, shrubbery, undergrowth and other obstructions
This Easement will remain in full force and effect for so long as the Easement is used for penstock. In the
event the Easement is no longer used for penstock purposes, this Easement will automatically terminate.
All improvements placed on the property at the GRANTEE’s expense shall remain the property of the
GRANTEE and removabie at its option. The failure of the GRANTEE, its successors or assigns, to
exercise any of the rights herein granted shall not be construed as a waiver or abandonment of the rights
thereafter at any time and from time to time to exercise any or all of such rights.
IN WITNESS WHEREOF, the GRANTOR has caused this Easement to be executed this 29 day of
Lb, Vv , 2005.
GRANTOR: ATXAM CORPORATION
by:
its: Pete
ACKNOWLEDGEMENT
STATE OF ) )ss.
JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on the_ 24D day of, M 2005, before me, the undersi Notary Public, duly commissioned and sworn as such, yeame Mac Sigur rad on behalf of the Atxam Corporation and acknowledged that this Easement was signed ‘sealed on behalf of the Atxam Corporation by proper authority delegated and vested in himself, and acknowledged further said instrument to be the free act and deed of said Atxam Corporation.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal ee :
Notary Public
City of Atka Page 19 of 21
Bulk Fuel Facility Business Operating Plan
Site Control Documents
The City of Atka hereby accepts this Easement.
Grantee: City of Atka
ACKNOWLEDGMENT
STATE OF ALASKA ;
ss.
JUDICIAL DISTRICT )
This is to certify that on 2005, before me appeared
known by me to be the of the City of Atka, who executed the of
easement and acknowledged voluntarily signing it on behalf of the City of Atka as Grantee.
SEAL ¢ : Notary Public in and for the Alask
My commission expires:
AK D 2. i A >
USPS
City of Atka Page 20 of 21
Bulk Fuel Facility Business Operating Plan
Site Control Documents
S &
c & = @ 2 &
Mean
Magnetic
Declination
100’ WIDE
EASEMENT
City of Atka
Bulk Fuel Facility Business Operating Plan
Site Control Documents
ATKA, ALASKA
EXHIBIT A
PENSTOCK EASEMENT
Page 21 of 21
State of Alaska =< Alaska Energy Authority / = ALASKA SC ENERGY AUTHORITY
Grant Agreement
Grant Agreement Number Amount of Funds
2195190 $600,000.00
Encumbrance Number/AR __ | Project Title
350174 C>/ oO Atka Rural Power Systems Upgrade Project
Grantee Authority Contact Persor
City of Atka Lenny Landis .
P.O. Box 765 Project Manager
Unalaska, Alaska 99685 813 W. Northern Lights Blvd
Julie Dirks, City Administrator Anchorage, AK 99503
907-581-6226 907-581-6317 907-269-4684 907-269-3044
AGREEMENT
The Alaska Energy Authority (hereinafter ‘Authority’) and The City of Atka (hereinafter ‘Grantee’) agree as set
forth herein.
Section |. The Authority shall grant to the Grantee funds for the Atka Rural Power Systems Upgrade Project
under the terms outlined in this agreement. The Authority shall grant funds to pay for expenses incurred by
the Grantee (including engineering and permitting costs beginning May 2002) that are authorized under this
Agreement, in an amount not to exceed $600,000, unless the grant amount is amended as provided herein.
Section Il. The Grantee shall apply the grant funds to complete the Atka Rural Power Systems Upgrade
Project and perform all of the work and other obligations required by this Agreement.
Section III. Performance under this agreement begins upon signature by the Authority's Executive Director
and shall be completed no later than June 30, 2006.
Section IV. The agreement consists of this page and the following:
ATTACHMENTS APPENDICES
Articie A: Definitions Appendix 1: Notice of Project Completion
Article B: Special Provisions Appendix 2: Funding Sources
Article C: General Provisions Appendix 3: Financial Reporting Form
Appendix 4: Progress Reporting Form
AMENDMENTS: Any fully executed amendments Appendix 5: Labor Type, Residence and Wage
to this Agreement Reporting Form
ef Name and“Title
Ronald W. Miller, Executive Director
~ An * £
fi TINAAL. Pfinted Name and Title U-n_(
George Dirks, Mayor
Date — j
Eqnat e p- . 1
4,
Atka Rural Power Systems Upgrade Project
Grant Agreement Number 2195190 Page 2 of 20
ARTICLE A. DEFINITIONS
In this Grant Agreement:
a)
b)
j)
k)
“Authority” means the Alaska Energy Authority, a public corporation of the
State of Alaska.
“Denali Commission” means the federal-state commission established under
42 USC 3121 and its successors or assigns.
“Executive Director’ means the Executive Director of the Authority or
authorized designee.
“Grantee” means the City of Atka
“Grantor” means the Alaska Energy Authority.
“Project” means the Atka Rural Power Systems Upgrade Project.
“Procurement Manager’ means the employee of the Authority who
determines disputes as provided in Article C. Section 3.
“State” means the State of Alaska.
“Design Documents” are the technical documents and drawings specifying
how the Project is constructed.
“Project Completion” means the Project is complete, the work is complete,
and all Project costs have been billed and paid as determined by the
Authority.
“Grants Manager’ means the employee of the Authority in charge of
managing the Grant.
mjudd/2003/Q3/Atka-RPSU-2195190.doc
Atka Rural Power Systems Upgrade Project
Grant Agreement Number 2195190
Page 3 of 20
ARTICLE B. SPECIAL PROVISIONS
Subject to appropriation and availability of funds, the Authority agrees to grant to the
Grantee the amounts stated herein, and the Grantee agrees to expend grant funds only
for eligible costs to perform the Scope of Work stated herein.
Section1. Description of Project and Scope of Work.
This grant provides funding to be used for the construction of the Atka Rural Power
Systems Upgrade Project, as detailed in the conceptual design draft documents dated
November, 2003.
Section 2. Project Funding Sources.
This Grant is subject to appropriation and availability from the sources of funding listed
in Appendix 2. The Authority may redesignate the sources and the amount of the total
Grant funding shown in Appendix 2.
Section 3. Grant Disbursements and Reporting.
a) The Authority will disburse grant funds as eligible costs are incurred. The Grantee
will submit invoices indicating expenditures for eligible costs and requested payment
from grant funds. The Authority will reimburse eligible costs, up to a total of
$600,000 for the project. Invoices may be submitted as often as necessary, but not
more than monthly.
b) Funds will not be disbursed under this grant agreement for Project construction and
procurement of construction contracts and materials until the Grantee demonstrates
to the satisfaction of the Authority, and the Authority determines that the Project can
be successfully completed and that the Grantee has obtained all approvals, permits
and agreements necessary to proceed with Project construction, except as
specifically approved in writing by the Authority.
c) Prior to submission of any invoices for Project construction costs, the Grantee shall
provide the Authority with a budget for total Project costs broken down by major task
categories.
d) The Grantee will prepare reports as listed (For reports requiring quarterly reporting,
the first quarterly reports are due within 30 days of the quarter ending June 30,
2003, and subsequent reports are due within 30 days of the end of each quarter):
1. The Grantee will prepare a financial report (see Appendix 3) and include it with
each invoice.
mjudd/2003/Q3/Atka-RPSU-2195190.doc
Atka Rural Power Systems Upgrade Project
Grant Agreement Number 2195190
Page 4 of 20
2. The Grantee will prepare a progress report (see Appendix 4) for submittal with
each invoice. Progress reports are due within three months of the last submittal
whether or not an invoice is submitted.
The Grantee will prepare and submit a Labor Type, Residence and Wage Report
(see Appendix 5) to the Denali Commission project officer at a minimum of two
times annually. Address the report to Mr. Al Ewing, Denali Commission Chief of
Staff, 510 L Street, Suite 410, Anchorage, AK 99501. These two reports must be
submitted on or near August 1°‘ and December 1° each year, to correspond with
the Alaska construction season. A Labor Type, Residence and Wage Report
must include the following information by construction project for any person
employed on the construction of that project: position, place of primary residence,
first payroll check date, last payroll check date, rate of pay per hour, payroll
earnings from inception of project to date. Personal or confidential information
such as social security numbers, names of individuals, or other information that
would identify an individual should not be included in this report.
The Grantee will prepare and submit photographic documentation of project
progress to the Denali Commission project officer. This documentation shall be
provided with the quarterly reports for active construction projects. The photo
documentation shall include a minimum of five, dated photos per quarter such
that a complete record of the construction is maintained over time, from “before”,
showing the situation before the start of construction, to “during” showing work
proceeding on the project, and “after” to show the finished project. For minor
repair and O&M projects, pictures should be submitted to the extent possible.
Photos may be provided as photo quality, 3x5 prints with negative for each
picture, and/or print quality electronic photos (digital images). A short description
of the activity and names of those in the photos shall also be provided.
e) Upon Project Completion:
ile
3.
any Grant funds not expended under this agreement and any interest accruing
on the grant funds belong to the Authority and shall be returned to the Authority;
the Authority may apply to other projects any other grant monies authorized for
the Project but not expended or obligated under this agreement.
Acknowledgement of support: For all construction projects, the Award recipient
shall include an acknowledgement of the Government's support for the project(s)
developed under this Award. The Award recipient shall display a sign that:
a) Has the Denali Commission logo displayed on the upper right-hand quadrant;
b) States the following: “This project was financed by Denali Commission and
its partners (list the name of the funding partners)”;
c) Shows the logo of each partner in the lower right-hand quadrant.
mjudd/2003/Q3/Atka-RPSU-2195190.doc
Atka Rural Power Systems Upgrade Project
Grant Agreement Number 2195190
Page 5 of 20
The cost of this sign shall be paid out of the project funding received by the
Award recipient from the Denali Commission. Final approval of signage material
and placement of sign must be obtained from the Commission Project Manager.
4. Acknowledgement of support: For all non-construction projects, the Award
recipient shall include an acknowledgement of the Government's support for the
project(s) developed under this Award. Acknowledgement shall include:
a) The Denali Commission logo and the logo of each partner;
b) The following statement: “This project was financed by the Denali Commission
and its partners (list the name of the funding partners)’.
The format for acknowledgement of the Government's support for non-construction
awards will vary with each award and must be agreed upon between the Award
recipient and the Denali Commission Project Manager. Costs associated with this
requirement shall be paid out of the project funding received by the Award recipient
from the Denali Commission.
Section 4. Eligible Costs Under This Grant.
a) The Authority, as Grantor, shall have sole discretion to determine which project
costs are eligible to be paid for from Grant monies under this agreement. No work
shall be performed or initiated without the prior approval from the Authority. Upon
approval by the Authority, the following necessary reasonable, actual expenses
associated with the design and construction of the Project are eligible for payment or
reimbursement from grant funds:
1. Payroll Costs. Payroll costs are comprised of wages paid to Grantee personnel for
time worked directly on the Project, plus payroll taxes and insurance, as well as vacation, holiday, sick leave and retirement benefits, if any.
2. Direct Non-Salary Costs. These costs must be directly attributable to the
Project and shall include the following:
i. The costs associated with consultants, inspectors, surveyors, contractors,
subcontractors, and other services required to design and construct the
Project.
ii. The cost of equipment, materials, supplies and freight purchased by, or on behalf of, the Grantee and used in the construction of the Project.
iii. The Grantee’s costs of reproducing plans, specifications, maps, reports, and
other documents.
iv. The cost of long distance communication and other utilities needed for
construction.
v. Purchase or rental of small equipment or tools needed in the construction of
the Project.
mjudd/2003/Q3/Atka-RPSU-2195190.doc
Atka Rural Power Systems Upgrade Project
Grant Agreement Number 2195190 Page 6 of 20
vi. Insurance covering the Grantee and the Authority.
3. Indirect Costs Properly Allocated to the Project. Overhead and other indirect costs
which cannot be directly assigned to the Project but which are properly allocated to
the Project in accordance with generally accepted accounting principles
consistently applied by Grantee, to the extent allowed by 15 CFR 24.22, OMB
Circular A-87, and any other applicable federal standards.
4. The Authority may pay for costs not specifically listed in this section from Grant
monies, if in the determination of the Authority the costs are necessary.
b) Costs not in listed in subsection a) of this section or not deemed eligible by the
Authority under a), 3) of this section are not eligible to be paid for from money
granted under this agreement.
Section 5. Project Completion Notice.
The Grantee shall sign the Notice of Project Completion located at Appendix 1 within 15
days after it is delivered by the Authority. Upon receipt of the signed signature page,
the Authority will close the Grant. The Grant will automatically be closed if the Grantee
fails to return the Notice of Project Completion within 30 days after it is delivered by the
Authority.
Section 6. Power Cost Equalization.
The Grantee agrees that it will not include the value of services, equipment, or other
benefits received under this grant as expenses under the Power Cost Equalization
Program or as expenses on which wholesale or retail rates or any other energy tariffs
are based.
Section 7. Grantee Responsibilities After Project Completion.
a) The Grantee will not sell, transfer, encumber, or dispose of any of its interest in the
facilities constructed with this grant funding during the economic life of the Project
without prior written Authority approval.
b) The Grantee agrees that it will complete the Project, and that upon completion of the
Project it will be responsible for and will perform those activities and functions
required to operate and maintain the Project.
mjudd/2003/Q3/Atka-RPSU-2195190.doc
Atka Rural Power Systems Upgrade Project
Grant Agreement Number 2195190
Page 7 of 20
ARTICLE C. GENERAL PROVISIONS
Section1. Inspection and Retention of Records.
The Grantee shall allow the Authority or its designees to examine all Project related
records at any reasonable time for the purpose of copying, audit or inspection. The
Grantee shall ensure that the Authority, its contractors and consultants, and any
Secondary Operators have reasonable access to Project facilities during construction of
the Project, and reasonable access for performance analysis and testing over the life of
Project facilities for no cost. The Grantee shall retain all Project related records for four
years following the completion date of the Project or until final resolution of any audit,
negotiation, claim or other action related to the Project which is started prior to the end
of the four year period, whichever is later.
Section 2. State and Authority held harmless.
As a condition of this Grant, the Grantee agrees to defend, indemnify, and hold
harmless the Authority and the State of Alaska, and their agents, servants, contractors,
and employees, from and against any and all claims, demands, causes of action,
actions, and liabilities arising out of, or in any way connected with this grant or the
project for which the grant is made, howsoever caused, except to the extent that such
claims, demands, causes of action, actions or liabilities are the proximate result of the
sole negligence or willful misconduct of the Authority or the State of Alaska.
Section 3. Disputes.
a) The parties agree that any dispute arising out of this agreement which cannot be
resolved by mutual agreement shall be addressed as set forth in this Section. It is
further agreed and understood that compliance with this Section shall be a condition
precedent to bringing or filing an action or court proceeding for determination of any
dispute. The intent of the dispute process set forth in this Section is to facilitate the
timely resolution of disputes arising from or out of this agreement.
b) Disputes which cannot be resolved by agreement shall be decided by the
Procurement Manager. The decision shall be in writing and be made not more than
60 days after receipt by the Procurement Manager of all appropriate information (as
determined by the Procurement Manager) from the Grantee. Failure of the Grantee
to furnish appropriate information (as determined by the Procurement Manager) to
the Procurement Manager within 21 days of the receipt of the Procurement
Manager's request constitutes a waiver of the Grantee’s claim.
c) The time for issuing the Procurement Manager's decision may be extended for good
cause by the Executive Director. The Procurement Manager shall notify the Grantee
in writing that the time for the issuance of a decision has been extended and of the
date by which a decision shall be issued. The Procurement Manager shall furnish a
mjudd/2003/Q3/Atka-RPSU-2195190.doc
Atka Rural Power Systems Upgrade Project
Grant Agreement Number 2195190
Page 8 of 20
9)
copy of the decision to the Grantee by certified mail or other method that provides
evidence of receipt. Pending a final decision, the Grantee shall proceed with diligent
performance of the agreement in accordance with the Procurement Manager's
decision notwithstanding any disagreement with that decision.
The Procurement Manager's decision is final unless, within 30 days of receipt of the
decision, the Grantee delivers a Notice of Appeal to the office of the Executive
Director. The Grantee shall provide a copy of the appeal to the Procurement
Manager.
The appeal must contain a copy of the decision being appealed and identification of
the factual or legal errors in the decision that form the basis for the appeal. General
assertions that the Procurement Manager's decision is contrary to law or facts are
not sufficient.
Except as provided in subsection (g) of this section, a hearing on an appeal to the
Executive Director shall be conducted according to the procedures set out in (h) of
this article.
Within 15 days after receipt of an appeal on a dispute, the Executive Director may
adopt the decision of the Procurement Manager as the final decision without a
hearing, if the Executive Director determines that there are no material issues of
fact.
The Executive Director may act as the hearing officer and upon hearing the
evidence, render findings of fact and conclusions of law, or the Executive Director
may appoint an impartial hearing officer to conduct the hearing.
The hearing officer shall arrange for a prompt hearing and notify the parties in writing
of the time and place. The hearing will be conducted in an informal manner and will
be held in Anchorage, Alaska. Participants outside Anchorage may attend by
phone. The hearing officer may conduct the hearing as set forth in AS 36.30.670(b),
which is incorporated herein by reference.
If the Executive Director is not acting as the hearing officer, the hearing officer shall
recommend a decision to the Executive Director based on the evidence presented.
The recommendation must include findings of fact and conclusions of law. The
Executive Director may affirm, modify, or reject the hearing officer's
recommendations in whole or in part, may remand the matter to the hearing officer
with instructions, or take other appropriate action.
The Executive Director's decision shall be sent within 20 days after the hearing to all
parties by personal service or certified mail. The decision of the Executive Director
is final and conclusive unless appealed to superior court, Third Judicial District at
Anchorage within 30 days of receipt of the decision. The laws of the state of Alaska
govern this agreement.
mjudd/2003/Q3/Atka-RPSU-2195190.doc
Atka Rural Power Systems Upgrade Project
Grant Agreement Number 2195190
Page 9 of 20
Section 4. Termination.
a)
b)
The Grantee shall have no rights to compensation or damages for termination,
except as provided in this Section.
In addition to all other rights available under law, the Authority may terminate this
Agreement or stop work on the Project for the convenience of the Authority or for
cause upon ten (10) days written notice.
"Cause" for termination shall exist when the Grantee has failed to perform under this
Agreement, has provided incorrect or misleading information or has failed to provide
information which would have influenced the Authority's actions. In order for
termination to be for cause, the Grantee's failure to perform or the Grantee's
provision of incorrect, misleading, or omitted information must be material.
If this Agreement is terminated for cause, the Grantee shall be entitled to no
compensation. The Grantee shall reimburse the Authority for all grant funds
expended under this Agreement by the Grantee or on the Grantee’s behalf including
interest accrued from the date of disbursement. The Grantee shall also reimburse
the Authority for any costs incurred to collect funds subject to reimbursement, and
for any damages incurred by the Authority as a result of the Grantee’s failure to
perform or provision of incorrect or misleading information. The Authority may
require the Grantee to return to the Authority some or all of the project assets if this
Agreement is terminated for cause.
If this Agreement is terminated at the sole request of the Authority for the sole
reason of its convenience, the Grantee is not required to reimburse the Authority for
funds expended prior to the date of termination. If the Grantee has incurred costs
under this agreement, the Grantee shall only be reimbursed by the Authority for
eligible costs the Grantee incurred prior to the date of termination of the Agreement.
However, prior to making any claim or demand for such reimbursement, the Grantee
shall use its best effort to reduce the amount of such reimbursement through any
means legally available to it. The Authority's reimbursement to the Grantee shall be
limited to the encumbered, unexpended amount of funds available under this
Agreement.
Section 5. Binding Effect.
This Agreement and all of its terms, covenants, conditions and appendices represent
the entire Agreement of the parties and shall extend to and be binding upon the
respective heirs, executors, administrators, grantees, successors and assigns of the
parties to this Agreement.
mjudd/2003/Q3/Atka-RPSU-2195190.doc
Atka Rural Power Systems Upgrade Project
Grant Agreement Number 2195190
Page 10 of 20
Section 6. No Assignment or Delegation.
Unless otherwise allowed by this Agreement or in writing by the Authority, any
assignment by the Grantee of its interest in any part of this Agreement or any delegation
of its duties under this Agreement without such approval shall be void.
Section 7. Grantee Shall Not Act as an Agent of the Authority.
The Grantee, its officers, agents, servants and employees shall act in an independent
capacity and not as agents of the Authority in the performance of this Agreement.
Section 8. Rights of Other Parties.
The parties agree that the Denali Commission and any successor is a third party
beneficiary of the Grantees obligations in Art. B Sec. 7 (Grantee Responsibilities after
Project Completion), Art. C Sec. 1 (Inspection and Retention of Records), Art. C Sec. 9
(Compliance with Applicable Law and Funding Source Mechanisms), and Art. c Sec. 12
(Declaration of Public Benefit); otherwise, no person is a third party beneficiary of this
Agreement and this Agreement creates no third party rights. Specifically, any person
who is not a party to this Agreement shall be precluded from bringing any action
asserting the liability of a party or asserting any right against a party to this Agreement,
through the terms of this Agreement. No person, other than a party to this Agreement,
may bring any action based upon this Agreement for personal injuries, property
damages, or otherwise.
Section 9. Compliance with Applicable Law and Funding Source Requirements.
The Grantee shall comply with all applicable local, state and federal statutes,
regulations, ordinances and codes, whether or not specifically mentioned herein
including, but not limited to: the Americans with Disabilities Act (ADA) of 1990; Equal
Employment Opportunity Executive Orders; Copeland Anti-Kickback Act; Davis-Bacon
Act; Contract Work Hours and Safety Standards Act; Clean Air and Clean Water Act;
and 15 C.F.R. Part 24 (Including but not limited to the procurement regulations in 15
C.F.R. Part 24). The Grantee agrees, to the maximum extent practicable, considering
applicable laws, to accomplish the project contemplated by the Award using local
Alaska firms and labor. The Grantee agrees to comply with all applicable grant terms
and conditions imposed by the Denali Commission and any other funding sources,
including Denali Commission policies on sustainability, private enterprise, project
prioritization, pipelines and dispensers, project design capacity, and construction
containment, and the other applicable terms and conditions in Denali Commission
Financial Assistance Award Number 0048-DC-2002-11.
Section 10. Audit Requirements.
The Grantee agrees that it will be bound by any audit requirements that may apply to
this agreement including 2 AAC 45.010 commonly referred to as the “Single Audit
mjudd/2003/Q3/Atka-RPSU-2195190.doc
Atka Rural Power Systems Upgrade Project
Grant Agreement Number 2195190
Page 11 of 20
Regulation” and any applicable federal audit requirements. The Grantee acknowledges
that it is responsible for compliance with federal and state single audit requirements and
all other applicable audit requirements, and agrees to obtain all required audits.
Section 11. 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.
Section 12. Declaration of Public Benefit.
The parties acknowledge and agree that the Project shall be constructed, owned and
operated for the benefit of the general public and will not deny any person use and/or
benefit of Project facilities due to race, religion, color, sex, marital status, age or national
origin.
Section 13. Nonwaiver.
The failure of either party at any time to enforce a provision of this Agreement shall in
no way constitute a waiver of the provision, nor in any way affect the validity of this
Agreement, or any part hereof, or the right of such party thereafter to enforce each and
every provision hereof.
Section 14. Amendment.
This Agreement may only be modified or amended in writing, executed by the
authorized representatives of the parties with the same formality as this Agreement was
executed. For the purpose of any amendment, modification or change to the terms and
conditions of this Agreement, the authorized representatives are the Executive Director
of the Authority or designee, and the Mayor of the Grantee or written designee of
record.
Section 15. Integration.
This Grant Agreement incorporates and is subject to the terms and conditions of the
Financial Assistance Award between the Authority and the Denali Commission for funds
granted under this Grant Agreement. Otherwise, instrument and all appendices,
amendments, and attachments hereto embody the entire Agreement of the parties
concerning the grant funds granted hereunder. There are no promises, terms,
conditions, or obligations regarding said funds other than those contained in the
mjudd/2003/Q3/Atka-RPSU-2195190.doc
Atka Rural Power Systems Upgrade Project
Grant Agreement Number 2195190
Page 12 of 20
documents described above; and such documents shall supersede all previous
communications, representations or agreements, either oral or written, between the
parties hereto.
Section 16. Applicable Law.
This Agreement is to be construed according to the laws of the State of Alaska. Any
civil action arising from this Agreement shall be brought in the Superior Court for the
Third Judicial District of the State of Alaska at Anchorage.
Section 17. Notices.
Any notice required of either party shall be in writing and, unless proof of receipt of such
notice is expressly required by another term 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 each
party's place of business, which in the case of the Authority shall be:
Deputy Director, Rural Energy
Alaska Energy Authority
813 West Northern Lights Boulevard
Anchorage, Alaska 99503
Phone 907-269-3000
Fax 907-269-3044
and in the case of the Grantee shall be:
Julie Dirks, City Administrator
City of Atka
P.O. Box 765
Unalaska, Alaska 99685
Phone 907-581-6226
Fax 907-581-6317
mjudd/2003/Q3/Atka-RPSU-2195190.doc
Atka Rural Power Systems Upgrade Project
Grant Agreement Number 2195190
Page 13 of 20
Appendix 1
NOTICE OF PROJECT COMPLETION
ALASKA ENERGY AUTHORITY
Date:
Project Name Atka Rural Power Systems Upgrade Project
Contracting Party City of Atka
Authority Contract No. 2195190
Agreement Execution Date
The ALASKA ENERGY AUTHORITY certifies and acknowledges that the Project
referenced above has been completed, and that all tasks have been satisfactorily
carried out in accordance with the terms and conditions of Agreement No. 2195190.
Project Manager Date
Alaska Energy Authority
The CITY OF ATKA certifies that the Project named above is complete in accordance
with the terms and conditions of Authority Agreement No. 2195190.
The CITY OF ATKA acknowledges and certifies that all expenses incurred by the City
under the Agreement have been paid in full. The City further acknowledges that it can
make no further claims for reimbursement.
Authorized Signature (Title)
(Name Printed) Date
mjudd/2003/Q3/Atka-RPSU-2195190.doc
Atka Rural Power Systems Upgrade Project
Grant Agreement Number 2195190
Page 14 of 20
Appendix 2
FUNDING SOURCES AND TOTAL PROJECT BUDGET
Grantee Funds $ 615,000
Denali Commission (Project Code — 350174 ) $ 600,000
Project Budget $1,215,000
Grantee Funds consist of the following:
USDA — Rural Utility Services $390,000
Aleutian Pribilof Islands Community Development Association $225,000
mjudd/2003/Q3/Atka-RPSU-2195190.doc
Atka Rural Power Systems Upgrade Project
Grant Agreement Number 2195190
Page 15 of 20
Appendix 3
FINANCIAL REPORTING FORM
mjudd/2003/Q3/Atka-RPSU-2195190.doc
Atka Rural Power Systems Upgrade Project '
Grant Agreement Number 2195190
Page 16 of 20
Atka Rural Power Systems Upgrade Project
Grantee: City of Atka
Period: to - Grant Number :_ 2195190
Financial Report - Grant Funds
Budget Summary by Work Item
Total Project Cost_| Expenditures this | Expenditures to Balance Next Quarters Budget
Period Date — Estimate
Construction
= — as 4
TOTALS :
a Is . / $
Budget Summary by Fund Sources [Crane - 4 $ 600,000 | - ] City of Atka* 615,000 [ | L TOTAL [$1,215,000 [ L_
(os
CERTIFICATION
Requires two original signatures. The person certifying must be different from the person preparing the report
One signature should be the authorized representative of the grantee organization or highest ranking officer;
the other should be the person who prepared the report.
| certify to the best of my knowledge and belief the information above is correct and funds were spent
in accordance with grant agreement terms and conditions.
Prepared By: _
Title:
mjudd/2003/Q3/Atka-RPSU-2195190.doc
Atka Rural Power Systems Upgrade Project
Grant Agreement Number 2195190
Page 17 of 20
Appendix 4
PROGRESS REPORTING FORM
mjudd/2003/Q3/Atka-RPSU-2195190.doc
Atka Rural Power Systems Upgrade Project
Grant Agreement Number 2195190
Page 18 of 20
Alaska Energy Cost Reduction Program
Progress Report
Grantee: City of Atka
Project Name: Atka Rural Power Systems Upgrade Project
Grant # 2195190
Period of Report: to
Project Activities Completed:
Existing or Potential Problems:
Activities Targeted for Next Reporting Period:
mjudd/2003/Q3/Atka-RPSU-2195190.doc
Atka Rural Power Systems Upgrade Project
Grant Agreement Number 2195190
Page 19 of 20
Appendix 5
LABOR TYPE, RESIDENCE, AND WAGE REPORTING FORM
mjudd/2003/Q3/Atka-RPSU-2195190.doc
Denali Commission
Labor Types and Wages
Reside in this or other
Employee Last | Employee First AK rural community? | Community| — State First Check Date - Rate of Payroll Earnings -
Name Name Position Residence | Residence| _or hire date Last Check Date Pay/hr inception of project
(Yes/Rural/No) _
Atka Rural Power Systems UpgradeProject
Grant Agreement Number 2195190
Page 20 of 20
State of Alaska <= Alaska Energy Authority / = ALASKA = = ENERGY AUTHORITY
Grant Amendment 1
Grant Agreement Number Amount of Funds
2195190 $ 2,100,000.00
Encumbrance Number/AR Project Titie
a PRO ik Atka Rural Power Systems Upgrade Project
pee : e Authority Contact Person
Name Name
City of Atka Lenny Landis
StreevPO Box Title :
P.O. Box 765 Project Manager
City/State/Zip Street/PO Box
Unalaska, Alaska 99685 813 W. Northern Lights Bivd
Contact Person City/State/Zip
Julie Dirks, City Administrator Anchorage, AK 99503
Phone Fax Phone Fax
907- 581-6226 907-581-6317 907-269-4684 907-269-3044
AMENDMENT 1
1. Replace Appendix 2 with the attached revised Appendix 2. Funding Sources and Total Project Budget
2. All other terms and conditions remain unchanged.
Signature Date Signature — Date 7
No Signature Required
Printed Name and Title
Julie Dirks, City Administrator
No Signature Required
Printed Name and Title
Ronald W. Miller, Executive Director
AEA: Rev. 1/02
H:Jstolp/Grants/Amends/200493/AtkaRPSU-2195190-A1.doc
Atka Rural Power Systems Upgrade! —_act
Grant Agreement Number 2195190-Amendment 1 Appendix 2
Appendix 2
FUNDING SOURCES AND TOTAL PROJECT BUDGET
Grantee Funds $615,000
Denali Commission (Project Code — 350174) $2,100,000
Project Budget $2,715,000
Grantee Funds consist of the following:
USDA — Rural Utility Services $ 390,000
Aleutian Pribilof Islands Community Development Association $ 225,000
H: Jstolp/Grants/Amends/2004q2/NomeJointUtility-DieselEfficiency-2195101-A3.doc
First National Bank Alaska
Renewal and Replacement Account
Escrow Managed “First Investment” Account Agreement
Dated: Account No.
The parties to this deposit account agreement are , TIN No.
(hereinafter “depositor”) and First National Bank Alaska (hereinafter “bank”). The agreement of the parties is as follows:
1. Money paid to bank for credit to the above account and interest earned thereon and credited to the above
account shall constitute the “Renewal and Replacement Account” of depositor specified under the terms of depositor’s
agreement with the Denali Commission intended for use by depositor for replacement and repair of capital expenditure
items that are part of depositor’s Energy Facility as contemplated under that agreement. Depositor hereby represents and
warrants, which representations and warranties shall be continuing and shall be deemed to be reaffirmed upon each
instruction given by depositor, that: (a) depositor is duly organized and existing under the laws of the jurisdiction of its
organization, with full power to carry on its business as now conducted, to enter into this agreement and to perform its
obligations hereunder; (b) this agreement has been duly authorized, executed and delivered by depositor, constitutes a
valid and legally binding obligation of depositor, enforceable in accordance with its terms, and not statute, regulation,
Tule, order, judgment or contract binding on depositor prohibits depositor’s execution or performance of this agreement; (c)
the Taxpayer Identification Number shown above (TIN) is depositor’s correct taxpayer identification number; and (d)
depositor is not subject to backup withholding because taxpayer is an exempt recipient under the Internal Revenue
Service Regulations.
2. Under the terms of its agreement with Denali Commission, depositor is obliged to pay to bank the sum of
$ and a like sum, not later than the last day of each and every month thereafter until the expiration of this
agreement, equal to 1/12 of the annual deposit required in the respective year, as set forth in Attachment D entitled “40
Year Renewal and Replacement Cashflow” and any revisions thereof to be administered by FNBA in accordance with the
terms hereof. Bank will furnish to depositor payment coupons that may be submitted by depositor with a payment to bank
for credit to the above account. Bank will give only provisional credit until collection is final for any item, other than cash,
bank accepts from depositor (including items drawn “on us”). Actual credit for payments of, or payable in, foreign
currency will be at the exchange rate in effect on final collection in U.S. dollars. Bank is not responsible for transactions
by mail or at an outside depository until it actually record them at it Escrow Department. Bank will treat and record all
transaction received after bank’s “daily cutoff time” on a business day bank is open, or received on a day bank’s escrow
department is not open for business on the next following day bank’s Escrow Department is open.
3. Bank shall credit to the above account interest earned on the account balance in accordance with the
provisions of bank’s “First Investment Account” agreement, as amended by bank from time to time.
4, Bank shall disburse credit to the account to the order of depositor when it receives a resolution from
depositor in the form of Attachment A hereto. Any two officers of depositor, acting together, may execute a resolution in
the form of Attachment A to withdraw or transfer all or any part of the above account balance at any time. Bank may
require not less than 7 days after receiving such a resolution before a withdrawal. Depositor authorizes any officer of
depositor to endorse any item payable to depositor or depositor’s order for deposit to the above account or any other
transaction with bank. Bank may require the governing body of the legal entity opening this account to give bank a
separate authorization telling bank who is authorized to act on its behalf. Bank will not honor the authorization until bank
actually receives at its Escrow Department written notice of a change from the governing body of depositor.
Atxam Corporation/Andreanof Electric Corporation 1
R&R Fund Account — Sample Documents
5. Bank’s current fee schedule for its services hereunder is attachment B hereto. Bank’s set-up fee and first
year’s annual fee have been paid to bank as of the date of acceptance of this account by bank specified below. Future
annual fees shall be due and payable by depositor to bank on the same day each consecutive year of the term hereof. An
annual fee is due and earned when an account year begins. The first account year begins on the effective date hereof.
Any fee due and payable to bank hereunder may be charged against the above account when due. Bank may amend
Exhibit B hereto from time to time on thirty days prior written notice to depositor.
6. On the last calendar day of each month of the term hereof, bank shall furnish to depositor and Denali
Commission a written statement of the above account specifying the account balance, and any payment(s) received and
interest earned credited to the account, as well as all disbursements of credit to the account to the order of depositor and
fees charged to the account by bank, since the last statement date. Until further instructed in writing statements shall be
furnished to depositor and Denali Commission by mailing the same in a first class postage prepaid envelope addressed as
follows:
To Depositor: To Denali Commission
Depositor must examine its statement of account with “reasonable promptness.” If depositor discovers (or reasonably
should have discovered) any unauthorized signatures or alterations, depositor must promptly notify bank of the relevant
facts. As between depositor and bank, if depositor fails to do either of these duties, depositor will either share the loss
with bank, or bear the loss entirely itself (depending on whether bank used ordinary care and, if not, whether bank
substantially contributed to the loss). The loss could be not only with respect to items on the statement but other items
with unauthorized signatures or alterations by the same wrongdoer. Depositor agrees that the time it has to examine its
statement and report to bank will depend on the circumstances, but will not, in any circumstance exceed a total of 30 days
from when the statement is first sent or made available to depositor. Depositor further agrees that if depositor fails to
report any unauthorized signatures, alterations, forgeries or any other errors in its account within 30 days of when bank
first sends or makes the statement available, depositor cannot assert a claim against bank on any items in that
statement, and as between depositor and bank the loss will be entirely depositor’s.
ts Bank’s duties are determined from these instructions alone and without reference to other agreements,
including, without limitation, any agreement between depositor and Denali Commission, and no covenant or obligation
shall be implied against bank in connection with this agreement.
8. The effective date hereof is the date of acceptance of the account as specified by bank below. Money
received by bank prior to acceptance is deemed to be received on the date of acceptance.
9. Bank may assign its duties hereunder (and thereby be released from its duties) to any corporation
regularly engaged in the business of providing, in Alaska, the service bank is required to provide hereunder.
10. Bank may terminate the above account upon 30 days written notice to depositor and Denali Commission.
After such termination bank will pay any account balance to the order of depositor.
11. Bank is deemed to have notice only when notice is actually received at its Escrow Department office,
which does not include any branch office of bank.
12. A claim against bank is unenforceable unless an action is commenced within 90 days after termination
of this agreement.
13. Bank shall not be liable for any costs, expenses, damages, liabilities or claims including attorneys’ and
Accountants’ fees (collectively, “Losses”) incurred by or asserted against depositor except those Losses arising out of the
negligence or willful misconduct of bank. In no event shall bank be liable to depositor or any third party for special
indirect or consequential damages, or lost profits or loss of business, arising in connection with this agreement. tN Atxam Corporation/Andreanof Electric Corporation
R&R Fund Account — Sample Documents
14. Bank has no duty to look to the propriety or application of any payment or distribution made to
depositor, or to the order of depositor, and depositor agrees to indemnify bank and hold bank harmless from and against
any and all Losses sustained or incurred by or asserted against bank by reason of or as a result of any action or inaction,
or arising out of bank’s performance hereunder, including reasonable fees and expenses of counsel incurred by bank ina
successful defense of claims by depositor; provided, that depositor shall not indemnify bank for those Losses arising out of
bank’s negligence or willful misconduct. This indemnity shall be a continuing obligation of depositor, its successors and
assigns, notwithstanding the termination of this agreement.
15. Bank shall have no duty or responsibility to inquire into, make recommendations, supervise, or
determine the suitability of any transactions affecting the above account.
16. Bank shall be entitled to rely upon any resolution in the form of Attachment A actually received by bank
and reasonably believed by bank to be duly authorized and delivered.
Ig. Bank is authorized to supply to any third party any information regarding the above account which is
required by any law, regulation, rule or court order (including without limitation any subpoena) now or hereafter in effect.
18. Bank shall not be responsible for preparing or filing any tax report or return nor for the payment of any
tax assessed against, or with respect to, any of the assets of the above account or any transaction for the account of
depositor.
19. Each and every right granted to either party hereunder or under any other document delivered
hereunder or in connection herewith, or allowed it by law or equity, shall be cumulative and may be exercised from time to
time. No failure on the part of either party to exercise, and no delay in exercising, any right will operate as a waiver
thereof, nor will any single or partial exercise of any other right.
20. In case any provision in or obligation under this agreement shall be invalid, illegal or unenforceable in
any jurisdiction, the validity, legality and enforceability of the remaining provisions shall not be amended or modified in
any manner except by a written agreement executed by both parties. This agreement shall extend to and shall be binding
upon the parties hereto, and their respective successors and assigns.
21. This agreement shall be construed in accordance with the substantive laws of the State of Alaska,
without regard to conflicts of laws principles thereof. Depositor and bank hereby consent to the jurisdiction of a state or
federal court situated in the Third Judicial District, State of Alaska, in connection with any dispute arising hereunder.
Depositor hereby irrevocable waives, to the fullest extent permitted by applicable law, any objection which it may now or
hereafter have to the laying of venue of any such proceeding brought in such a court and any claim that such proceeding
brought in such a court has been brought in an inconvenient forum. Depositor and bank each hereby irrevocably waives
any and all rights to trial by jury in any legal proceeding arising out of or relating to this agreement. To the extent that in
any jurisdiction depositor may hereafter be entitled to claim, for itself or its assets, immunity from suit, execution,
attachment (before or after judgment) or other legal process, depositor irrevocably agrees not to claim, and it hereby
waives, such immunity.
Atxam Corporation/Andreanof Electric Corporation 3
R&R Fund Account — Sample Documents
22. This agreement and the attachments hereto constitute the entire agreement of the parties. Bank has not
made representations or assurances to depositor not stated herein.
Date:
Depositor
By:
First National Bank Alaska accepted this account on
By:
AAtxam Corporation/Andreanof Electric Corporation 4
R&R Fund Account — Sample Documents
Wells Fargo
Renewal and Replacement Account
Escrow Managed “Regular Savings” Account Agreement
, 2004 Account No.
1. The parties to this agreement are (Owner), and Wells Fargo. Owner
hereby appoints Wells Fargo, acting through its Trust Department, as the Invested Escrow Agent
for the investment and disbursement of the funds in accordance with this agreement. Wells
Fargo agrees to serve as Invested Escrow Agent, pursuant to the terms set forth in this
agreement.
2. Monies deposited by the Owner with Wells Fargo shall be for the purpose of establishing an
R&R Account, which shall be used for replacement and repair of capital expenditure items with
regard to the Owner’s Energy Facility, which is partially or fully funded with monies from the
Denali Commission.
3. On or before , 2004, Owner shall deposit the sum of $ and a
like sum, not later than the last day of each and every month thereafter,until the expiration of this
agreement, equal to 1/12 of the annual deposit required in the respective year, as set forth in
Attachment D entitled “40 Year Renewal and Replacement Cashflow” and any revisions thereof
to be administered in accordance with the terms of this Agreement.
4. The funds shall be deposited into an interest bearing “Regular Savings” account. Disbursements
from this account will be restricted and can only be approved by Wells Fargo’s Escrow
Department pursuant to this agreement.
5. Upon written instruction from Owner, in the form of a Resolution identical to Attachment A,
signed by two parties, Wells Fargo’s Escrow Department shall disburse funds to the Owner.
6. The interest earned on the account shall accrue for the benefit of the Owner.
7. Wells Fargo will assess the fees and charges set forth in the fee schedule which is attached as
Attachment B.
8. Wells Fargo will compile a “Monthly Report”, at the end of each calendar month, on all Renewal
and Replacement Accounts that are established under similar agreement. This report will show
all account activity by each Owner including; deposit amounts, date of deposits, disbursements,
and date of disbursements. Monthly reports shall be sent to:
Denali Commission
Attn: Chief of Staff
510 L Street Suite 410
Anchorage, AK 99501 wo Atxam Corporation/Andreanof Electric Corporation
R&R Fund Account — Sample Documents
9. Wells Fargo shall have no duties not expressly provided for herein, and will not incur liability if
it substantially complies with the instructions contemplated herein, using reasonable care in
executing transactions, and in safekeeping the funds.
Wells Fargo
By: Date
Its:
(Owner)
Date
By:
Its:
Taxpayer ID #
Address:
Atxam Corporation/Andreanof Electric Corporation 6
R&R Fund Account — Sample Documents
PLEASE COMPLETE THIS AREA TO INSURE CORRECT ROUTING
ORIGINATED BY
ESCROW AGREEMENT
ACCEPTED COPY Acct. # RETURN TO
TO: WELLS FARGO BANK ALASKA (WF), its successors and assigns Date:
Ihand you herewith the following described item(s):
Beginning Balance $ Payments of $ Maturity Date
OC Monthly OD Quarterly 1 __ Semi-Annually O Annually
First payment due: Interest start date at %
Payments made in excess of the regular scheduled amount Oo wil C1 will not satisfy future payments due.
Excess funds a wil 1 _will not be applied to prior mortgage/debt. Interest calculation based on OD 360 days Oo 365 days
Attached: (1 Exhibit A Special Payment Provisions Exhibit 8 Multiple Disbursements Exhibit C Partial Releases C1 Exhibit D Reserves
Additional Instructions:
You are authorized to charge my WF Account # 1 for the scheduled escrow payments, 1 balloon payments
Payer Signature
Remit payments to payee:
Address
Or Credit Payments to. Cashier's Check D__EF-T. (Enclose voided check)
O checking Savings: WF Acct. No. (Disbursement fees paid by payee per payment! transaction)
‘Upon execution of this agreement the parties herein agree to pay fees in accordance with the current fee schedule, fees are collected per paymentitransaction. Set up fee’ O paid collect from first payment. Fees Paid by: O_ Divide Equally (Fees Subject to Change Without Notice) O_ Werequest late payment monitoring (additional fee) Unless otherwise instructed, all service charges and fees will be charged to Payee
WF is hereby authorized to deliver, by registered mail or personally, the instrument(s) and/or document{s) herein mentioned to any one of the undersigned Payees for and on behalf of all Payees at any address given below or such other address as any one of the undersigned Payees shall designate in writing upon Payee's request or at WF's option under the following conditions: At Payee's request when: (a) Any payment is delinquent 30 days or more; or (b) Payee furnishes WF evidence that Payer has received at least 20 days’ written notice of Payee's intent to terminate, delivered by registered or certified mail ‘At WWF's option when: (a) One payment has been delinquent for three months and WF has provided 10 days’ prior notice to Payee and Payer. (b) Upon 30 days’ prior written notice by WF to Payee and Payer.
‘We the undersigned have read this Agreement, including the Terms and Conditions set forth on the reverse side, and understand the contents thereof and acknowledge that the terms of the Agreement are satisfactory to each of us. Upon receipt by the Bank of the final payment, the Bank will deem the contract satisfied and the Instrument(s) and/or document(s) will be released to the Payer. Under penalty of perjury, | certify that the Social Security or Employer 1.0. Number provided below is true, correct and complete, and | am not subject to backup withholding,
Date Date
PLEASE PRINT NAME SOCIAL SECURITY NO. OR EMPLOYEE. NO. PLEASE PRINT NAME SOCIAL SECURITY NO. OR EMPLOYEE TO. NO.
X
PAYEE (SELLER) SIGNATURE X
PAYER (BUYER) SIGNATURE.
‘ADDRESS ‘ADDRESS
PLEASE PRINT NAME SOCIAL SECURITY NO. OR EMPLOYEETO. NO.
X
PAYEE (SELLER) SIGNATURE
PLEASE PRINT NAME SOCIAL SECURITY NO. OR EMPLOYEE TD. NO,
X
PAYER (BUYER) SIGNATURE
‘ADDRESS
Received above item(s) subject to conditions herein mentioned Wells Fargo Bank Alaska
By
ADDRESS
PLEASE COMPLETE THIS AREA TO INSURE CORRECT ROUTING
Atxam Corporation/Andreanof Electric Corporation 7
R&R Fund Account — Sample Documents
WELLS FARGO BANK ALASKA ESCROW AGREEMENT
Terms and Conditions
Payments. Payer shall pay all sums due Payee from time to time in the manner set forth herein to WF Escrow Service Department, at P.O. Box 100600, Anchorage, Alaska 99510-0600 or such other address as may be directed by WF in the future. WF shall accept all payments tendered on this transaction, regardless of whether they are partial, full, or additional payments or whether they are tendered before or after the payment due date. WF shall have no duty or obligation to refuse any payment nor shall it be responsible for determining the sufficiency of any such payment unless otherwise agreed in writing by WF. WF will credit the account for payments as received and will disburse funds the following business day, but shall not be required to disburse to Payee prior to the time WF determines the payment is from collected funds. If any check received by WF is dishonored upon presentment for any reason, WF may notify Payee of such dishonor and the amount of funds which WF has disbursed to Payee or other named Payees in reliance upon Payer's dishonored payment. Upon receipt of such notice, Payee shall promptly remit to WF the amount of such funds so disbursed by WF together with WF's then customary charge for the handling of returned checks, which charge shall be stated in the notice sent to Payee. WF is hereby given authority to reverse
the credit to an account to which it has disbursed funds and/or to deduct from Payee's account the amount of the charge plus the amount of funds it has disbursed in reliance upon said dishonored payment. If two (2) checks are dishonored during any calendar year for any reason, WF may without notice terminate this account, cancel this Agreement and return the documents to Payee.
Interest Computation. Interest will be computed on a 365-day factor, except for leap year. Payments will be applied first to WF's fees, then to interest, the remainder, if any, to Principal. The parties shall have 30 days in which to dispute the application of payments as computed by WF. WF shall be notified of any such dispute in writing within 30 days. If WF does not receive such notice within 30 days, all computations made by WF shall be conclusively deemed correct. Nothing in this paragraph shall modify or change any of the agreements between, or rights and remedies of Payer and Payee, as between the two. Any modification to this method of computation must be agreed to in writing by WF.
Service Charge. WF may deduct its fees and service charges from payments received or credited to Payee's account. If fees or service charges are not received within 30 days of their due date, WF is authorized to terminate this Agreement without notice and deliver the documents to Payee. The expenses of closing of this collection may be deducted from the proceeds of the final payment. Service charges and fees are set forth in WF's published rates, which are subject to change from time to time without notice.
Disputes. In the event of any dispute or misunderstanding, WF shall have the option to close the escrow and deliver instruments or documents to any one of the Payees or on behalf of the Payees upon 30 days prior written notice by WF to Payee and Payer or to hold undisbursed funds, or to require settiement by a neutral party, such as an arbitrator for determination, or to pursue any legal remedies which may be available to it, including the right to deposit the subject matter hereof in interpleader in the appropriate court of the Third Judicial District, Anchorage, Alaska, and upon so doing to be absolved from all further obligations or liability hereunder. Payee and Payer jointly and severally agree to pay to WF all costs and expenses incurred by WF, including actual attorney's fees, in any interpleader action
Limitation of WF’s Responsibility. WF shall be responsible only for the exercise of ordinary care in performing the duties set forth in this Agreement. WF shall be relieved from any further or additional liability beyond the performance of the duties expressly set forth herein. The parties hereto jointly and severally agree to defend, indemnify, and hold WF, its officers, employees, shareholders, attorneys, directors, agents and representatives harmless from and against, and to pay on demand all claims, costs, damages, judgments, attorney's fees, expenses, obligations and liabilities of every kind and nature suffered or incurred in connection with this Agreement except any liability founded upon WF's failure to exercise ordinary care in performing the duties contained herein. Payee and Payer agree that WF will not be responsible for any of the following
(a) To notify any party of nonpayment or declaration of default, condemnation or the condition of any property; (b) To construe, enforce or determine the performance or nonperformance of any terms of the documents underlying the transaction; (c) To determine if any agreement or document is in compliance with local, state, or federal laws and regulations; (d) To determine the authenticity, validity, enforceability or sufficiency of any document deposited, or for the accuracy of description of any such document, the description having been furnished by the parties; (e) To give notice of any change of ownership or to enforce any due-on-sale or similar provisions; (f) Todetermine if any payment schedule will amortize any obligation; (9) To determine the sufficiency or verification of the account balances on any other previously or subsequently-recorded encumbrance or security interest against the Property, including security interests which this collection agreement may, in whole or in part, satisfy; further, WF does not assume any responsibility for determining if any payments being made by this escrow to satisfy, in whole or in part, any other obligation will, in fact, amortize the obligation receiving the payments hereunder at or before the satisfaction of this escrow; (h) To pay or notify any party regarding recording of documents, perfection of security interests, or nonpayment of insurance premiums, taxes or other assessments or
encumbrances; (i) Toassess, bill, collect or pay any late charges due under the terms of the documents deposited herewith unless otherwise agreed in writing by WF: () For the determination of balances to third parties or overpayments to them where instructed to credit payments to persons other than the Payee; (k) To verify or determine whether the assignment of the payments under this escrow for security purposes or otherwise does not create a default in the terms of the documents underlying this transaction; (). To account or give credit for any payment made or received outside this collection; (m) To vote or exercise any of the rights of ownership of corporate stock or similar items deposited herewith; or (n) To perform any act not expressly set forth in this Agreement even though contained in any documents deposited herewith.
The liability of WF for negligent performance, or negligent non-performance, shall be limited to the amount of charges or fees charged to the parties hereto, under this. Agreement, for the month in which any damages are incurred. Under no circumstances will WF be liable for any special, consequential, or punitive damages. Notwithstanding any other provision of this Agreement, WF will not be liable for any damage, loss, liability, or delay caused, directly or indirectly, in whole or in part, by those items set forth
above.
Lien-Offset. WF shall have a first and paramount lien on all documents, monies and things deposited in connection with this Agreement and the right of offset against any WF account of any party hereto to secure payment of all costs, expenses, obligations and fees due WF
Agreement Controls. In the event of conflict or omission between the documents deposited in connection with this Agreement, this Agreement shall control as to WF. WF shall not be responsible for determining the existence of any such conflict or omission
Authority to Release Information. If any party to this Agreement sells or contracts to sell the property described in the documents deposited herewith, or applies for financing secured by the property, WF is authorized to furnish to the lender, closing agent, or any other interested party, any information conceming the status of this account, including the payment records and copies of the documents deposited
Authority to Transfer. WF is authorized to assign, delegate and/or transfer all its duties and the documents held hereunder to another institution upon ten (10) days’ prior
written notice to Payer and Payee. Upon such transfer, WF shall be relieved of all further duties and liabilities under or related to this Agreement.
Notice. Any notice to WF required or permitted hereunder shall be sent certified or registered mail to Wells Fargo Bank Alaska Escrow Service Department, P.O. Box 100600, Anchorage, Alaska 99510-0600, or such other address as may be designated by WF. Notice shall be effective only when received in the Escrow Service Department
General. This Agreement may be modified or amended only by written instructions accepted by WF and payment of the applicable fee. This Agreement is intended for the sole benefit of the parties hereto, and shall not be construed to create any rights in third parties. This Agreement shall be governed and interpreted in accordance with the laws of the State of Alaska, and any litigation arising out of or relating to this Agreement to which WF is a party shall be commenced and maintained only in the appropriate court of the Alaska State Court System, Third Judicial District, at Anchorage.
Atxam Corporation/Andreanof Electric Corporation 8
R&R Fund Account - Sample Documents
ATTACHMENT A
Resolution for Disbursement of Renewal and Replacement Funds
for Energy Facility
An Identical Resolution to This Must be Passed and Signed by the Community To Withdraw Funds from
The R&R Account
Community of.
Resolution No.
WHEREAS, the Community of has established an escrow managed interest bearing renewal and
replacement account with the financial institution of for the purpose of renewal and replacement
expenditures related to the facility, which was partially or fully funded by the Denali Commission,
and
WHEREAS, pursuant to the communities approved business plan for facility the community has
agreed that funds deposited into this renewal and replacement account will only be used for the renewal and
replacement of facility, and
WHEREAS, eligible withdrawal of funds from this account must be for the labor, transportation, equipment rental,
professional services, materials, equipment and other costs for the replacement and repair of assets essential to the
on-going sustainability of the facility. For energy facilities this is including but not limited
to: Access Roads, Buildings, Poles, Transformers, Generators, Radiators, Electrical Systems, Wires, Meter
Systems, Pumps, Fencing, Fuel Storage Tanks, Fuel Distribution Systems, Walkways, Access Roads Dispensers,
Fill Stations, Tank Liners, Fencing, Pad, Valves, Pipelines, Piling, Decks, Manwalks, Headers, Ground Maintenance
and Containment Systems
THEREFORE, the Community of hereby attests that the funds being requested from the escrow
managed interest bearing renewal and replacement account with the financial institution of is
for renewal and replacement expenses related to the facility as outlined above and is not
being used for any other purpose, and
THEREFORE, the Community of requests the total sum of $ for the following detailed
expenses
Signed by two people representing the community,
Atxam Corporation/Andreanof Electric Corporation 9
R&R Fund Account - Sample Documents
ATTACHMENT B
How to Establish a Renewal and Replacement Account for
Denali Commission Funded Public Infrastructure
Background
Under the guidelines of Denali Commission funding a community is required to have a business plan that outlines
how the Denali Commission funded project will be operated and maintained. One of the conditions required in the
business plan is a community established Renewal and Replacement (R&R) Account. An R&R account will
provide a mechanism for the community to save money for the inevitable renewal and replacement costs associated
with the facility.
General Guidelines of a Renewal and Replacement Account
e Allows community to make monthly deposits
e Must be an interest bearing account
e¢ Only allows withdrawal of funds for Renewal and Replacement costs of the facility.
o Requires a Resolution from the community certifying funds are being used for Renewal and
Replacement expenses related to the facility that was partially or wholly funded by the Denali
Commission.
e Account must allow for Denali Commission and other Auditing agencies to monitor deposit and
withdrawal activity (Monthly Reports on account activity must be sent to Denali Commission)
Financial Institutions
The Denali Commission has negotiated terms with two Financial Institutions that will allow for the unique
guidelines of these R&R accounts. Other institutions that will allow accounts that meet the guidelines above are
acceptable.
First National Bank Wells Fargo
Contact Person Lorraine O’Neal
Sr. Escrow Officer
First National Bank Operations
Center
1751 Gambell St.
Anchorage, AK 99501
Phone: (907) 777-3424
Fax: (907) 777-3446
Jackie Zuspan
Escrow Manager
Wells Fargo
301 West Northern Lights Blvd.
Anchorage, AK 99503
Phone: (907) 265-2162
Fax: (907) 265-2170
Type of Account Escrow Managed “First Escrow Managed “Regular
Investment” Account Savings” Account
Set-Up Fee $30.00 $35.00
Annual/Monthly Fee $50.00 Annual Fee and $5
monthly fee until account balance
is above $2,500
$3 Monthly Fee until account
balance is above $300
Disbursement Fee $25.00 each time a community
requests funds (through approved
resolution) $5.00 each time (for a Money
Order) when a community
requests funds (through approved
resolution)
\txam Corporation/Andreanof Electric Corporation
R&R Fund Account - Sample Documents
10
Check Writing None None
Reports Monthly Report to Denali
Commission on Deposit and
Withdrawal activity (.50 Charge)
Monthly Report to Denali
Commission on Deposit and
Withdrawal activity (No Charge)
Requirement for Withdrawal of
Funds
Approved Resolution Identical to
Attached Template must be
submitted to Escrow Department
Approved Resolution Identical to
Attached Template must be
submitted to Escrow Department
Interest
First Investment Account
Tiered depending on balance of
account (based on current
Treasury Bill). Below are
1/02/02 rates:
$0-$2,499 557%
$2,500-$4,999 -778%
$5,000-$24,999 825%
$25,000-$49,999 846%
$50,000-$99,999 887%
$100,000+ 917%
Based on the Regular Savings
account:
5/20/02 rate = 1%
To establish an account:
1. Contact one of the representatives above
2. Tell them you need to establish a “Denali Commission Renewal and Replacement Account”
3. Sign the Account Agreement for the institution.
4. Pay set-up fee and fill out other general information to establish account
Sample documents attached include:
o Business plan language that requires R&R accounts
o Account agreements (between institution and community) templates
o Example of the resolution that is required to withdraw funds from a R&R account
Atxam Corporation/Andreanof Electric Corporation
R&R Fund Account - Sample Documents
at
ATTACHMENT C
EXAMPLE OF LANGUAGE IN ALL DENAI COMMISSION FUNDED ENERGY FACILTIES
Financial Responsibilities
There are two cost categories that will be incurred in the ongoing operation and upkeep of the electric utility
equipment — operations and maintenance (“O&M”) and renewals and replacements (“R&R”).
The Primary Operator will incur a number of expenses relating to the O&M of the equipment. O&M items
are defined as expenses that are incurred on a regular basis (administration, audits, etc) and maintenance
expenses that are incurred on an annual basis. O&M expenses are detailed in Table C: Annual O@*M Schedule
and a narrative detail is provided in Section VIII. Financial Information to address estimates and assumptions.
R&R costs are those expenses defined as items costing greater than $5,000 and/or that are not replaced on an
annual basis. Table G: 40 Year R&>R Schedule details the anticipated items, the frequency of their replacement
and their present day value.
The Primary Operator will maintain separate O&M and R&R accounts and will maintain a sufficient account
balance to meet the O&M and R&R financial goals in this Plan. The O&M account may be an active non-
interest bearing account. The Manager will be authorized to draw against the O&M funds for routine
expenses of the Facility, however, individual expenditures in excess of $5,000 will require authorization of the
Primary Operator’s management or governing body. See Appendix A: Statement of Qualification for an
overview of the Primary Operator’s fiscal controls and accounting procedures. The R&R account must be an
interest-bearing, managed savings account, which requires two signatories and a community resolution for
withdrawals, until such time as the cash balance makes an escrow account more cost effective; then the R&R
account may be transferred to an interest-bearing invested escrow account that is acceptable to the Denali
Commission. See Attachment 4: R&*R Fund Account -- Sample Documents, for examples of acceptable R&R
account agreements and a sample community resolution that limits the use of the funds to R&R expenses
only.
At least once a year, no later than May 31, the Primary Operator will develop a budget for the upcoming fiscal
year, July 1 through June 30, for both O&M and R&R. This will include an update of actual expenses and
projections and assumptions used in this Plan, as described in Section VIII. Financial Information, Subsequent
Operating Year Revisions. Additionally, Tables A-H should be updated.
Operations and Maintenance Guidelines
The Primary Operator will establish an account to fund the Facility O&M so that the O&M schedule can be
completed and the Facility operations can be sustained into the future (this is anticipated to be an active non-
interest bearing account). Section VIII. Financial Information provides Table C: Annual O@M Schedule and Table
D: 40 Year O&M Schedule as a guide to plan for annual maintenance activities.
Renewal and Replacement Guidelines
The Primary Operator will establish an interest bearing escrow managed renewal and replacement account
acceptable to the Denali Commission, which will ensure capitalization of an amount sufficient to maintain the
R&R schedule (see R¢*R Fund Account — Sample Documents for “How to Establish a RC*R Account”). Section VIII.
Financial Information provides Table G: 40 Year RC>R Schedule as a guide to plan for annual R&R activities and
Table H: 40 Year R¢>R Cashflow as a guide to estimate annual R&R required contributions. See Appendix B:
O&M and R&R Cost Estimate.
The Primary Operator will use the estimates in this Plan for year one contributions, and in subsequent years
will recalculate contributions based upon actual costs.
Atxam Corporation/Andreanof Electric Corporation 12
R&R Fund Account - Sample Documents
ATTACHMENT D
40 YEAR RENEWAL AND REPLACEMENT CASHFLOW
R & R Fund Balance
Beg, of Year Balance
Annual
Deposits
Renewals/
Replacements
Interest
Earnings (Net of Fees)
End of
Year
Balance
Assumed
Collectable
KwH/Year
R&R Surcharge $/KwH
3,343 334,281
3,343
_7,006 11,013 | 3,563
3,797 4,046
100
11,013 |
339,295
349,550 0.012
15,390 4,313 354,793 0.012
2,815 7,467 4,596
4,898
360,115 0.013
wlralalu|aAlwlrol— 12,515 5,220 5,564 5,929 |
6,257 6,603 6,967
7,352
365,517
382,213 | 384,124 386,045
389,915 |
poy ree , ala aloo alalolalulalololalo nln |n T Tonle aloo men mem ion emlen enn lnlolalalalalalalala alelalalala alnlalalwlnlalalalal ala ala| ale lolalalala alalalalan 391,864 393,824 395,793
397,772
399,761 401,759
403,768
405,787
nlnlninlnlnlnln
407,816
409,855 411,904 413,964
416,034 | 418,114
alalalajalololalalalalalon 420,204 | 422,305 424,417 0.018 0.019 426,539
428,672 0.020 0.021 430,815 432,969
10,632
11,219 105,371
435,134
437,310
105,371 11,839
119,317 alalalalalolololalalolalalalola alalalalalalalnlnwlalalalnalawlnialolalaiaa Atxam Corporation/Andreanof Electric Corporation
R&R Fund Account - Sample Documents
119,317 134,197 439,496 |
alae swale ealeaaaaawa alalalalalalalalalalalalalalnlmlalmlo|nlmlalw 61,826 |
Inflation Rate :
Reinvestment Rate :
Invested Escrow Fees:
Initial KwH Collectable :
Initial Cost per KwH :
5 year step cost increase :
13