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HomeMy WebLinkAboutHoonah Bulk Fuel Agreement 1990State of Alaska Ds Steve Cowoer. Governor Alaska Energy Authority A Public Corporation November 6, 1990 Robert Martin, Jr. General Manager Tlingit & Haida Regional Electrical Authority P.O. Box 210149 Auke Bay, Alaska 99821 Subject: Project Agreement No. 2800332 oject Agreement No. 2800333 Dear Mr in: Enclosed for your files are original signature copies of the subject agreements for thé Hoonah andAngoow Pct projects. If you have any questions about the scope o ‘or schedule for the project, please contact Gary Smith, Manager of Rural Projects at 261-7311 or at the address marked below. We are pleased to be able to work with you on this project. A David Denig-Chakroff Director of Rural Programs DDC:ekn Enclosures as stated cc: Senator Richard Eliason, Alaska State Legislature Representative Peter Goll, Alaska State Legislature Susan White, Alaska Energy Authority Pat Woodell, Alaska Energy Authority Gary Smith, Alaska Energy Authority Dominic Costanzo, Alaska Energy Authority 5 PO.BoxAM Juneau, Alaska 99811 (907) 465-3575 x PO. Box 190869 704 East Tudor Road Anchorage, Alaska 99519-0869 (907) 561-7877 Contract No. A S00 35 3 THREA/HOONAH PROJECT AGREEMENT PURPOSE AND DESCRIPTION This Agreement entered into a day of Nate, between the ALASKA ENERGY AUTHORITY (Energy uthority AND HAIDA REGIONAL ELECTRICAL AUTHORITY (THREA). Wine Agreement provides a Grant-in-Aid of Construction to THREA to install three, 30,000 gallon self-diked storage tanks in the community of Hoonah. Article A. ALASKA ENERGY AUTHORITY COVENANTS The Energy Authority will: ile Subject to appropriation and availability, provide THREA with a grant-in-aid of construction not to exceed $303,725 for construction of the project. 2; Upon receipt of invoices requesting payment and supporting documentation, provide funds to THREA to cover the cost of planning, engineering and tank installation in the following manner: (a) An an amount not to exceed $21,000 advance payment for planning and engineering, (6) | Upon approval of plans and engineering analysis for tank installation and upon completion of work, an amount not to exceed $47,275 for site preparation and fencing materials, (c) Upon completion of purchases, an amount not to exceed $210,725 for bulk fuel storage tanks, related materials, and freight, and (d) | An amount not to exceed $24,725 final payment after a site inspection and approval of the project by the Energy Authority. Article B. TLINGIT AND HAIDA REGIONAL ELECTRICAL AUTHORITY COVENANTS THREA will: 1. Expend construction funds only for the purposes provided for under this Agreement. 2. Provide all engineering services necessary for the complete design of the project. THREA/Hoonah Project Agre t Contract No. Page 2 of 9 ai 3. Within 90 days after the date of execution of this Agreement, prepare and submit to the Energy Authority, two copies of complete plans, specifications, drawings, maps, staking sheets and other documents required for the construction of the Project. 4. Design the Project to minimize the cost of construction and to be as maintenance-free as economically possible. 5. Design and install the fuel tanks to meet applicable state and federal statutes, regulations, codes and other standards. 6. Obtain and maintain all rights-of-way, easements and permits required for construction and operation of the Project in a manner consistent with established utility practices. 7. Complete all work under this Agreement prior to June 30, 1991. 8. Bill the Energy Authority for the payments described in Article A, Paragraph 2, but not in excess of actual costs of design, engineering, materials & freight and construction. When presenting invoices for payment, provide supporting documentation showing actual costs. 9. Refund to the Energy Authority any funds determined to be in excess of actual expenditures. 10. | Account for funds received under this Agreement as contributions- in-aid of construction and, therefore, refrain from including those funds in future rate base calculations. 11. Upon project completion, issue a Notice of Completion. A sample of the Notice is in Appendix I. 12. | Upon project completion, accept complete responsibility for ownership, operation and maintenance of the bulk fuel storage tanks. 13. Permit the Energy Authority to inspect, in such manner and at all reasonable times, all activities related to THREA’s performance under this a Such right of examination shall include inspection of THREA’s ices, accounts describing project expenditures, and physical plant. Article C. MUTUAL COVENANTS The Energy Authority and THREA agree to the following: wv ification. THREA shall indemnify, save harmless and defend the Energy ity, its officers, agents, servants, and employees from alll liability, including costs and expenses, for all actions or claims resulting from injuries or damages sustained by any person or property arising dir or indirectly as a result of any error, omission or negligent act of the indemnifying party, its officers, agents, servants, or employees or anyone directly or indirectly employed by it in the performance of this Agreement. fn:¢:hooneh\phw THREA/Hoonah Project Contract ! Pages ot9 ae — (b) All actions or claims, including costs and expenses, resulting from injuries or damages sustained by any person or property arising directly or indirectly from the Grantee’s performance of this Agreement which are caused by the joint negligence of the Energy Authority and THREA shail be appropriated on a comparative fault basis. Any such joint negligence on the part of the Energy Authority must be a direct result of active involvement by the Energy Authority. 2. Rights to Rescind Grant and Terminate Agreement. THREA acknowledges the right of the Energy Authority to rescind funds authorized by this Agreement and to terminate this Agreement without payment of liquidated damages to THREA iff it is determined by the Energy Authority to be in the best interest of the State to do so; if funds are no longer available, or for cause. For the purposes of this paragraph, "cause" is defined as the provision of incorrect or misleading information Y THREA or THREA’s failure to provide information that, in the opinion of the Energy Authority, is a material fact that would have influenced Energy Authority actions. Under these conditions, THREA waives any right of recourse and will reimburse the Energy Authority for all unspent funds THREA has received according to this Agreement plus all costs, including attorneys’ fees, incurred by the Energy Authority to perfect its claim or collect those funds. The Energy Authority may also terminate the Agreement if THREA fails to complete construction of the Project by June 30, 1991 or if THREA fails to meet standards or perform services described in Article B. 3. Availability of Funding. THREA acknowledges that this Agreement is subject to availability of money from the State of Alaska or other sources to finance performance under this Agreement. If funding is withdrawn, reduced, or limited in any way after the effective date of this Agreement and before the © completion of performance, the Energy Authority may terminate the Agreement without incurring damages. The Energy Authority may, in its discretion, renegotiate the terms of this Agreement to comply with any new funding limitations or conditions. 4. Audit Requirements. This Agreement is subject to the audit requirements of Title 2, Chapter 45 (Grant Administration) of the Alaska a Code (AAC), commonly referred to as the “Single Audit egulation." 5. Parties not Being Agents of Each Other It is agreed that the Parties, their officers, agents, servants and employees shall act in an independent capacity and not as agents of the other parties in the performance of this Agreement. 6. Disputes. Either party to this Agreement may bring an action against the other party in the superior court for the State of Alaska to resolve a dispute arising under this Agreement. Any lawsuit involving this Agreement shall be heard by the superior court, Third Judicial District at jorage. All legal costs, including attorneys’ fees not otherwise provided for in this Agreement, shail be allocated pursuant to Alaska Civil Rule 82. 7. Binding Effect. This Agreement and ail of its terms, covenants, conditions and appendices represent the entire agreement and shall extend to and be binding upon the respective heirs, executors, administrators, grantees, successors and assigns of the parties to this Agreement. fn:c:hoonan\phw THREA/Hoonah Project A\ Contract Page 4 of 9 8. 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. 9. Declaration of Public Benefit. The parties acknowledge that the Project is to be constructed for the benefit of the general public and will not deny any person use of Project facilities or use of power produced from Project facilities due to race, religion, color, sex, or national origin. 10. Notices. Any notice required of either party shall be in writing and, unless receipt of such notice is expressly required by the terms of this Agreement, shall be deemed served when deposited in the mail in a sealed envelope, with sufficient first class postage affixed, and addressed to the appropriate party. The notices shall be sent to each party’s place of business, which in the case of the Energy Authority shall be: Robert E. LeResche, Executive Director Alaska Energy Authority P.O. Box 190869 Anchorage, Alaska 99519-0869 (907) 561-7877 (phone) (907) 561-8584 (FAX) and in the case of THREA shall be: Robert Martin, Jr., General Manager Tlingit & Haida Regional Electrical Authority P.O. Box 210149 Auke Bay, Alaska 99821 (907) 789-3196 (phone) (907) 789-0585 (fax) THREA/Hoonah Project Agre-: Contract Ne. Page 5 of 9 S ; THIS AGREEMENT has been reviewed, agreed to, and executed by the following parties: for th ERGY AUTHORITY by ft fl (Signature) Xs Rovert E. LeRosche Eyecuctive Divectoy (Name Printed) (Title) b, Lip 1075-70 istant rney Gener: STATE OF ALASKA ss. THIRD JUDICIAL DISTRICT ) The foregoing Agreement was acknowledged before me this aay Oferta. 190, ) Robert Lekusdae Execstve Drertrot the Alaska Energy Authority. Notary Public, State of Alask; My Commission Expires: sfis la¥ fn:c:hoonan\phw THREA/Hoonah Project Agre: : Contract No. Page 6 of9 for TLINGIT AND HAIDA REGIONAL ELECTRICAL AUTHORITY 22 Q.¢ 99 (Date) Gen. Mar (Name Printed) (Title) STATE OF ALASKA ss. FIRST JUDICIAL DISTRICT e foregoing Agreement was acknowledged before me this 2.A~__ day of ) , 1990 by Robert — Jr., eneral Manager of Tlingit and Haida Regional Electrical A . ] /, My Commission Expires: WE [10 fn:c:hoonan\phw Appendix | Notice of Project Completion Tlingit and Haida Regional Electrical Authority/Hoonah NOTICE OF PROJECT COMPLETION Date: Project Name nah P Contracting Party Contract Agreement Number Agreement Execution Date TLINGIT AND HAIDA REGIONAL ELECTRICAL AUTHORITY certifies that the Project named above is complete in accordance with the terms and conditions referenced in Contract Agreement Number TLINGIT AND HAIDA REGIONAL ELECTRICAL AUTHORITY ! acknowledges that all expenses incurred under the Agreement have been paid in full, and no further claims for reimbursement can be made. TLINGIT AND HAIDA REGIONAL ELECTRICAL AUTHORITY accepts full responsibility for ownership, operation and maintenance of facilities that were constructed under the terms of this Agreement. Robert Martin, Jr. General Manager Date Tlingit and Haida Regional Electrical Authority The foregoing res hog SocnT before me this day of General Manager of the Tlingit and Haida Regional Electrical Authority on behalf of the Authority. STATE OF ALASKA ss. FIRST JUDICIAL DISTRICT Notary Public, State of Alaska My Commission pies: ALASKA ENERGY AUTHORITY ALASKA ENERGY AUTHORITY acknowledges that the Project referenced above has been completed, and that all tasks have been satisfactorily carried out in acccordance with the terms and conditions of the Project Agreement. Project Manager, Alaska Energy Authority Date STATE OF ALASKA ss. THIRD JUDICIAL DISTRICT -_ foregoing Agreement was acknowledged before me this day 1991 by , Project Manager of the Alaska energy Aanarhy. Notary Public, State of Alaska My Commission Expires FN:projeom\piw “Wey hz BLO t Harry Broo of Tieea | Ye “ Avacor 4 fase g kk: “) Then met with the Fire Marelell (he Hour, it, Woe .wawee) ‘pee Kew Lee) aid i he ee he Aga. t ee pilol eu ie ee Hoe ma oS ie Hi € sca HL Cele et id io. - aa off OV = - eee fe ae? rs ea to see a ‘ee hoe the. Py MoM. te = yee eh e tat la . Hara aie ener U4 on To wchage of Actas, wah dahl ish eh ren __/ b Me C 2a4 ac i Ba eee at a. am & the package g lMer te me 3) tec sede bad +, werk orn. Ay cow Yew. Will aM me if the Seer m atts 4 tex otact wocek , i) Hoonale - 7 Spout vis ltsd /eege. 4 pee o. fea, 3S a of. eS'5Ly ANerea_ ae with. Anaecon otal Date: TELEPHONE CONFERENCE LOG 11/28/90 Between: Brian Gray and Harry Brown of THREA Re: Angoon and Hoonah PCE Bulk Fuel Projects I called Harry to discuss the status of both projects, primarily Angoon. The following points were covered: 1. cc: I informed him that we could send the first payment for planning and engineering services for both projects. I mentioned that our review and acceptance of the design was a requirement of the grant. He said that they have a design for Hoonah but not for Angoon. He said he would put together a drawing for Angoon and send it along with the Hoonah design to me. I told him that the plans will need to be submitted to the Fire Marshall for approval and suggested that he prepare his drawing for Angoon with that in mind. We discussed the requirement for emergency venting and I explained that some fire officials were requiring emergency vents on both the tank and the secondary containment. He said he thought the tank was ordered without emergency vents but since it was still in fabrication they should be able to get them added if required. I told him to contact the Fire Marshall for their region, find out what is required, and change the tank order accordingly to avoid having to make field modifications. I asked him to provide me with copies of any correspondence with the Fire Marshall. Harry said he would coordinate with PSI so that I could make my site inspection during the final testing of the piping. G. Smith 1128BGT1 * MEETING NOTES Date: 11/21/90 Between: Brian Gray and Robert Martin Jr., Genl. Mgr. THREA Re: Status of Angoon and Hoonah Bulk Fuel Projects Tie) Angoon: Harry Brown at THREA has been working with John Bertholl at Petroleum Services Inc. (PSI) on the design. They may not have a formal design as such. The project is well underway and PSI will be doing the construction. The fuel tank has been on order for about a month. PSI tests THREA’s fill lines annually and will test the existing fill line and the new installation upon completion of the new work. I called John Bertholl on 11/21/90 to further discuss the projects. He said he would try to find any design related notes for Angoon and send me copy. He will coordinate with me so that I can perform a final inspection at the time they are ready to test. The project will probably be completed within a month. II. Hoonah: Peratrovich Nottingham & Drage designed the site improvements. PSI designed the pipeline and manifold. The Hoonah Planning and Zoning Commission has not approved the sale or lease of the property to THREA to date. They will not order any materials or do any work until the agreement for the property is in place. The project will probably not be completed until March or April of 1991. 1120BGT1 to: Dave D-C from: Gary Smith date: 030ct90 re: THREA PCE PROJECTS Actions Requested Approval of attached budgets for two PCE Efficiency Improvement projects. Background The FY91 PCE appropriation has been budgeted at approximately 1.5 million for "large" utilities and 1.0 million for "small" utilities. To date the following "large" utility projects in progress are: AVEC Eek $85,000 Kaltag 66,317 Shungnak 130,000* total $281,317 AVEC is the largest single user of PCE funds using $5.5 million in FY89 servicing 48 communities. THREA Hoonah $307,855 Angoon 63,340 total $371,195 THREA is the second et user of PCE funds furnishing power to 5 communities in Southeastern using $1.2 million in FY89. GZ Utility Fort Yukon $135,000* total $135,000 GZ Utility ranked 15th in PCE payments in FY89 using $210,000 servicing one community. G&K Utility Cold Bay $135,000* total $135,000 G&K Utility ranked 26th in terms of PCE fund consumption in FY89 using $115,000 servicing one community. * These projects are in analysis. TOTALS AVEC GZ G&K total $281,317 371,195 135,000 135,000 $922,512 Alaska Energy Authority To: Dave Denig-Chakroff Date: September 20, 1990 From: George Matz ¢7# Re: THREA In a letter to the AEA dated June 7, 1990, Tlingit & Haida Regional Electrical Authority (THREA) asked whether three projects they are planning would qualify for PCE Efficiency Improvements funding. These projects include; 1. a tank farm in Hoonah, 2. an additional fuel storage tank in Angoon, and 3. more efficient generators for Kake, Hoonah and Angoon. Based on the data that was provided in the letter, it appeared that the Hoonah and Angoon fuel storage tanks would be economically feasible and meet the 10 year PCE payback condition. Since the data was incomplete, however, this analysis was considered preliminary and a letter was sent to THREA requesting further details. There was not enough data regarding the more efficient generators to attempt even a preliminary analysis. On September 18, I received a FAX from THREA providing the requested data (attachment #1). This data was used to perform an updated economic and PCE payback analysis (see Table 1). The results are that both the Hoonah and Angoon fuel storage tanks are economically feasible based on an economic life of only 10 years. The B/C for Hoonah and Angoon are 1.6 and 1.3 respectively. Also both projects have a PCE payback of less than 10 years. The PCE payback is 8.5 years for Hoonah and 8.9 years for Angoon. Therefore, it is recommended that both projects receive full funding via PCE Efficiency Improvements money. In tracking PCE savings from either project, it may prove difficult to determine the price of fuel if the fuel tanks had not been installed. This particularly applies to Hoonah where the project will likely lead to a change in fuel suppliers. Regarding funding, there may be some question as to whether or not project costs should include planning and engineering. Paying for this may amount to paying for THREA staff time rather than construction costs. Also, THREA’s planning and engineering costs substitute for AEA indirect costs which have not been included in construction costs. iS re ~ cc Brent Petrie nae pe GPromerc, Dick Emerman Gary Smith ~« fAucgeo-~ be Las. Kee oh] 7d 20-Sep-90 TABLE 1 THREA FUEL STORAGE FACILITIES Economic Analysis and PCE Payback HOONAH ‘ANGOON HOONAH ANGOON 1. ECONOMIC ANALYSIS TANK FARM FUEL TANK Il. PCE ANALYSIS TANK FARM FUEL TANK CONSTRUCTION COSTS CONSTRUCTION COSTS Tanks Installed 235,000 47,000 Tanks Installed 235,000 47,000 Fencing 23,275 0 Fencing 23,275 0 Site Preparation 24,450 5,200 Site Preparation 24,450 5,200 Planning & Eng. 21,000 7,100 Planning & Eng. 21,000 7,100 TOTAL COSTS 303,725 59,300 TOTAL COSTS 303,725 59,300 ANNUAL PROJECT COSTS FY 89 KWH USAGE Property Lease 2,100 0 KWH’ s Sold 3,309,675 1,585,245 Fuel Truck * 10,000 0 PCE KWH’s 1,929,053 1,114,732 Fuel & Maint. 1,500 0 PCE Ratio 0.58 0.70 Insurance 5,909 625 TOTAL COSTS 19,509 625 PCE BENEFITS Annual Benefits 64,500 9,954 ANNUAL FUEL SAVINGS PCE Savings * 35,714 6,650 Current Price 0.980 0.788 Expected Price 0.725 0.725 PCE PAYBACK 8.5 8.9 Savings/Gallon 0.255 0.063 Gallons Used 300,000 158,000 * PCE Savings = Benefits * PCE Ratio * 0.95 Savings 76,500 9,954 BENEFITS Annual ly 56,991 9,329 10 Years 569,910 93,290 NPV 10 Yrs @ 3% 486,145 79,578 Benefit/Cost 1.6 1.3 * amortized over 4 years h{ A Hache nea f Ti { | Hoova, ak Fueh ThucK : Pr URCHME = Fuk + Maw, - -_ Zwsukanwcl - (aux Fann: | DOYLE £0. feeonrs - Lwsukavel ~ aie Lusfankto - Paves, Buroive, Fate Pps at Lysuue9 pie Phe fae 47j0/ - Taveve Aad L£verdt hie ~ ‘Ask oF feoges 17 WeTts Cary oF Moouew | \Avecev, AK. ML TANK AWD 151A phATIO/ S19 Pat para rrev [Aaewive Avd kvbidtiliat so VUSU A AIRE “40 830.20 4 S20.80 fen. ye: 2IS7.09 fag, vae 24,900.20 YS0.00 3750.0 far yh AZ,27F 00 23S, 800.00 au 200.892 2100.00 per ye —— — ~~: — 4 72, 002,060 KAZgAsod 7, 100.00 G24S. “fT Ya Ree enter 1 J sun r-7eo roe horse oe Se ee ieee rew Fa tlingit & haida Regional electrical authority PO. Box 210149 © Auke Bay, Alaska 99821 © (907) 789-3196 FACSIMILE TRANSMISSION ro: Aobay Smury - AFA From: Pup Maan Number of pages to follow: Z- Memo: Address return correspondence to: Tlingit-Haida Regional Electrical Authority P.O. Box 210149 Auke Bay, Alaska 99821 (907) 789-3196 (voice) (907) 789-0S85 (fax) tlingit & haida Recional electrical authority PO. Box 210149 © Auke Bay, Alaska 99821 © (907) 789-3196 June 7, 1990 State of Alaska Alaska Energy Authority PO Box 190869 Anchorage, AK 99519-0869 ATTN: Mr. Gary Smith Dear Mr. Smith: The following is in response to our discussion about potential PCE improvements that can be made in our system. In the villages of Angoon, Kake, Kasaan, and Klawock, Tlingit-Haida REA bought a total of 403,300 gallons of diesel fuel from White Pass in Ketchikan. Their current price is $0.788 per gallon. We have negotiated a new price based on the prevailing lift price in Seattle. Currently, that price is $0.725 per gallon if we buy in lots of more than 40,000 gallons. In Hoonah, we do not have a direct fill line to our storage tanks so we were forced to purchase from a local supplier. This year we project consumption at 300,000 gallons. The current local price is $0.98 per gallon, up from $0.95. If we were to buy all of our fuel needs from White Pass, we would have to construct a new tank farm, pipeline, and manifold, but the direct savings would be $76,500 per year at the current price of $0.725 per gallon. We have a construction estimate for installing three 30,000-gallon, self- diked tanks totaling $234,731.25, excluding fencing, site preparation and a delivery vehicle. Site prep and fencing would be an additional $35,000 for a total construction cost of $270,000. We will purchase or lease a tank truck and are negotiating with the City of Hoonah for lease or purchase of the necessary real estate and for use of their dock. Pay off of this cost, without truck or lease, would be 3.53 years. JUN case THY teor31is TeH ELECTRICAL In Angoon, we already have 45,000 gallons of capacity, but we must install another tank to provide us with adequate reserves between deliveries. We lan to install a single, 20,000-gallon self-diked tank at an estimated cost of $65,000. We expect to save $0,063 per gallon over an annual consumption of 158,000 gallons, or $9,954 per year. Payoff on this cost would be 6.53 years. We have one high-efficiency diesel machine each in Kake, Hoonah and Angoon. These machines are so efficient that operators tend to run them all of the time, regardless of load. Were we to install smaller, high- efficiency engines, we would save two ways: by decreasing the costs of overhauls by the difference in cost per engine and by savings in fuel consumption of two to three kilowatt-hours per gallon. Two kwh/gal yields a savings of 24,300 gallons at our current load in Angoon. Assuming operation of 10 hours per day, that is 10/24ths of $17,600 or $7300 per year in fuel savings. Savings would be more in Kake and Hoonah. It is a complex calculation to determine the total savings when both overhaul costs and fuel savings are included. NC Machinery has a computer program that will generate these numbers for us, and we have requested numbers for several scenarios. My gut feeling is that it would be very difficult to make replacement of the older, smaller engines feasible since the lion's share of savings come from replacement of the first engine -- and we have already done that. However, we would be willing to consider matching your grant money with our own funds. Your funds would go farther, and the PCE program would still benefit from our decreased costs. We would be happy to meet with you to discuss this project and to share with you our records, design documents and estimates. We would also be pleased to share our experience in generating and delivering energy in rural Alaska. Sincerely, ™ Robert in, Jr. General Manager tlingit & haida Regional electrical authority PO. Box 210149 ¢ Auke Bay, Alaska 99821 © (907) 789-3196 July 3, 1991 RECEIVED JUL 10 1991 . ALASKA ENERGY AUTHORITY, Mr. Charlie Bussell Executive Director Alaska Energy Authority PO Box 190869 Anchorage, AK 99519-0869 RE: PCE Efficiency Improvement Agreement: Hoonah Dear Mr, ell: Because of delays in acquisition or lease of necessary land in Hoonah, we have been unable to begin our project to install a 90,000 gallon fuel tank farm as approved in our PCE-improvement grant. We are vigorously pursuing the effort with the City of Hoonah, but are also seriously looking at an alternate plan. In order to bring this project to a close, we are requesting an extension of the grant to give us time to complete this project. If we are successful in convincing the City of Hoonah to sell or lease us the land, we have until approximately August 15 to install necessary piping under the road prior to paving. After paving, we will not be able to cut the new pavement for this purpose. If we fail with this land acquisition from the City, we hope to purchase an existing private fuel company which owns an existing 100,000 gallon tank farm and fuel transfer system. In this event, we are hereby requesting authority to use the approved grant funds to purchase the fuel-related portion of this fuel company. Any non-fuel related property in this potential acquisition will be paid for by THREA's own funds. The latter option will provide THREA and the PCE program with the same benefits. That is, we will be able to purchase fuel at a greatly reduced price, and those savings will be reflected in reduced PCE payments by the State of Alaska. Thank you very much for your consideration of this matter Sincerely, TLINGIT-HAIDA REGIONAL ELECTRICAL AUTHORITY Obert Martin, Jr. General Manager Ub tow ‘HOx Op Hooch Pee State of Alaska \ Walter J. Hickel, Governor Alaska Energy Authority A Public Corporation July 25, 1991 Mr. Robert Martin, Jr. General Manager Tlingit & Haida Regional Electrical Authority P.O. Box 210149 Auke Bay, Alaska 99821 Dear Mr. Martin: Thank you for your letter of July 3, 1991, regarding the Hoonah PCE Efficiency oes project. We have had many more requests for projects under the PCE Efficiency Improvements Program than the amount of the appropriation will allow us to fund. Several other very worthwhile projects have been a oe which are ready for construction and which can be completed this summer if they can be initiated in the next few weeks. Since land for the Hoonah project has not been acquired, and since there is no assurance it can be acquired in time to complete the project this year, we wish to use the funds budgeted for the Hoonah project for other projects that are ready for construction. If you would like to submit an alternative proposal to the original project, we will be happy to evaluate it, however, the new proposal will be in competition with other proposals that have been submitted. The benefits of the Hoonah tank farm project are clear, and I would like to continue to work with you to accomplish this project. We are beginning the process of developing our FY93 capital budget request, and I a to include a funding request for the Hoonah project. If it does not appear that the necessary land can be acquired for the project, iy staff can work with you to develop a cost estimate for an alternative proposal. Please consider this letter as our formal termination of the THREA/Hoonah Project Agreement (Contract No. 2800333) dated November 2, 1990, under the terms of Article C, Paragraph 2, which allows for termination of the agreement if the project is not completed by June 30,1991. The $21,000 advance payment of grant funds torwarded under the agreement has been deducted from the final payment for the THREA/Angoon Project (Contract No. 2800333.) If you have any questions on this matter or would like assistance in developing an alternative proposal for the FY93 budget request, please contact me or David Denig-Chakroff, Director/Rural Programs. Thank you for your understanding in this matter. Charlie Bussell Executive Director BG:CB:jd cc: Gloria Manni, Alaska Energy Authority David Denig-Chakroff, Alaska Energy Authority © PO.BoxAM Juneau, Alaska 99811 (907) 465-3575 & PO. Box 190869 701 East Tudor Road Anchorage, Alaska 99519-0869 (907) 561-7877 91Q3\D1204(1) State of Alaska watien Sue Severrnes Alaska Energy Authority A Public Corporation TELEcCOPY (ANCHORAGE Telecopy Phone No. (907) 561-8584) (JUNEAU Telecopy Phone No. (907) 465-3767) TELECOPY SENT TO: Hacce. Brown NAME OF COMPANY: THes-a COMPANY ADDRESS: we 1 TELECOPY PHONE NUMBER: _—7 22D — mS@se SENDER: Fo Ciaw Core cy TELEPHONE NUMBER: 2@/—~7Z5—<4- CHARGE CODE: INCLUDING THIS COVER PAGE NUMBER OF PAGES SENT: Ze DATE SENT: z2lh/2t IF YOU DO NOT RECEIVE ALL OF THIS TELECOPY PLEASE CALL: (9972 261-—7240-Anchorage 907) 465-3575-Juneau SPECIAL INSTRUCTIONS: 5S PO. BOX AM Juneau, Alaska 99811 (907) 465-3675 ME PO. Box 190869 701 EastTuderRoad Anchorage Alaska 99519-0869 (907) 561-7877 TRANSMISSION REPORT THIS DOCUMENT (REDUCED SAMPLE ABOVE) WAS SENT **k COUNT **& # 2 %**K SEND kK NO REMOTE STATION I. D. T START TIME | DURATION #PAGES COMMENT [ 1 9077890585 2-8 16:24 | 1°31" 2 TOTAL 0:01'31" 2 XEROX TELECOPIER 7020 State of Alaska DN Walter J. Hickel, Governor Alaska Energy Authority A Public Corporation February 1, 1991 Mr. Harry Brown Tlingit & Haida Regional Electrical Authority P.O. Box 210149 Auke Bay, AK 99821 Re: Angoon and Hoonah PCE Bulk Fuel Projects Dear Mr. Brown: As I mentioned in our telephone conversation today, we can provide the advance payments as specified in the project agreements for the above referenced projects. In order to process the payments we will need an invoice for each project. The invoices should reference the project name, contract number, and ledger code as follows: Angoon: Contract #2800332 Ledger Code 81802501 Advance Payment Amount $6,500 Hoonah: Contract #2800333 Ledger Code 81802502 Advance Payment Amount $21,000 If you have any questions do not hesitate to call me at 261- 7294. Thank you for your attention to this project. Sincerely, Pe Brian C. Gray Rural Systems gineer cc: Project Files ANGNBGL3 © PO.BoxAM Juneau, Alaska 99811 (907) 465-3575 PO. Box 190869 701 EastTudorRoad Anchorage, Alaska 99519-0869 (907) 561-7877 State of Alaska N Steve Cowper, Governor Alaska Energy Authority A Public Corporation November 29, 1990 Mr. Robert Martin Jr. General Manager Tlingit & Haida Regional Electrical Authority P.O. Box 210149 Auke Bay, AK 99821 Re: Angoon and Hoonah PCE Bulk Fuel Projects Dear Mr. Martin: I called Harry Brown on November 28, 1990 to discuss the status of the above referenced projects. In that conversation I informed him that we can provide the advance payments as specified in the project agreements. However, in order to process the payments we will need an invoice for each project. The invoices should reference the project name, contract number, and ledger code as follows: Angoon: Contract #2800332 Ledger Code 81802501 Advance Payment Amount $6,500 Hoonah: Contract #2800333 Ledger Code 81802502 Advance Payment Amount $21,000 I also discussed the requirement in the project agreement for review of the design and installation by the AEA and the need to submit plans to the State Fire Marshall. Since the tank for Angoon is already on order, we request submittal of the design to both the AEA and the Fire Marshall as soon as possible to avoid potential conflicts in the field. I told Harry he should contact the Fire Marshall immediately to discuss the Angoon tank. If you require assistance do not hesitate to call me at 261-7294. Thank you for your attention to this project. Sincerely, Ato e Brian C. Gray Rural Systems Engin€er cc: Gary Smith, Alaska Energy Authority Project Files ANGNBGLI PO. Box AM Juneau, Alaska 99811 (907) 465-3575 PO. Box 190869 701 EastTudorRoad Anchorage, Alaska 99519-0869 (907) 561-7877 fryer State of Alaska DN Steve Cowper. Governor | } Alaska Energy Authority A Public Corporation October 17, 1990 Mr. Robert Martin, Jr. General Manager Tlignit & Haida Regional lectrical Authority P.O. Box 210149 Auke Bay, Alaska 99821 Dear Mr. Martin: Three copies each of the Hoonah and Angoon grant agreements are enclosed for your signature and . | would appreciate your returning them directly to me after you have signed. We will send you a copy of each of the fully-executed agreements after they have processed through the Energy Authority Based on our telephone conversation, | have made the changes we discussed in the Hoonah agreement. Please call me if you have any additional comments. We certainly look forward to working with you on these projects. ig Director, Rural Programs | Attachments as stated FN :threaietiphw PO. Box AM Juneau, Alaska 99811 (907) 465-3575 PO. Box 190869 704 East Tudor Road Anchorage, Alaska 99519-0869 (907) 561-7877 ou MEMORANDUM | State of Alaska xa? TO: Gary Smith , DATE: October 9, 1990 Manager, Rural Projects FILE NO: K PHONE NO: rut \ oe Denig Chakrof SUBJECT: ~—_Hoonah S&S Director of Rural Programs erom bt Woodell Development Specialist The THREA Hoonah and Angoon contract drafts are attached for your review. | used your budget information to prepare the project descriptions, because the PCE analysis was inconclusive as to whether new generator sets would be included in the current scope. | will be leaving the office until Monday, October 15, at noon on Wednesday. If you return these today, | can guarantee them in final before | go. Thanks. FN:threa\ptw oe ~~ 400 Alaska Energy Authority A Public Corporation March 1, 1991 Robert Martin, Jr. General Manager Tlingit & Haida Regional Electrical Authority P.O. Box 210149 Auke Bay, Alaska 99821 Subject: Advance Payments for Angoon and Hoonah PCE Efficiency Improvement Projects Dear Mr. Martin: Pursuant to the Contract Agreement No. 2800332, for the Angoon PCE Efficiency Improvements grant, attached is the $6,500.00 advance payment. Also, attached is a check for $21,000.00, the advance payment for the Hoonah PCE Efficiency Improvements grant, Contract Agreement No. 2800333. ewe Auk, Je SS an y~Brian G Rural Systems Engineer ekn GC PO.BoxAM Juneau, Alaska 99811 (907) 465-3575 OPO. Box 190869 704 East Tudor Road ~=Anchorage, Alaska 99519-0869 (907) 561-7877 roo een ter te de of me oe AS 1705.180 STATE OF ALASKA DATE OF ISSUE TREASURY WARRANT G2 26 91 89-5271252 NO. 224946142 MOQ DAY YR $21+000200 PAY (@ xxaxxnxexe211 000000 TO THE ORDER OF 08137 2aus4i42 229578845 TLINGIT & HAIDA REGIONAL wrmemmELECTRICAL AUTHORITY PeCe BCX 210149 AUKE BAY AK 99821-0000 w22K9Gak ow weeSe20O0S2a 8 e22bhGhak ca REMITTANCE ADVICE - STATE OF ALASKA TREASURY WARRANT - NOT NEGOTIABLE OGG, NO. 22517884 WARRANT NO. MO DAY YR VENDOR VENDOR ID. 22494142 02 26 91 TLINGIT & HAIDA REGIONAL THRES207 STATE OFFICE PHONE DOCUMENT AMOUNT PAID OON WHELAN ACCT III] 907 S6\°7877 404450500477 $217?0000¢00 TYPE REFERENCE NUMBER DATE COMMENTS AMOUNT JOB 81802502 Q2 13.93 HOONAH PCE EFF VIA THREA GRANT 21200000 SO 2800333 06 30 94 THREA CONTRIBUTION IN AIOE OF 303% 725200 INV 05465 Q2 05 91 RECV ABA 2/7791 212000000 MAKE INQUIRIES ABOUT PAYMENT TO OFFICE LISTED ABOVE Community Project Code _¥ A 38 Budget Project Code X ) C Re ALASKA ENERGY AUTHORITY RURAL PROGRAMS DIRECTORATE PROJECT BUDGET COMMUNITY Yoowam pos THRE PROJECT NAME ___ O0VKM- PC PREPARER DATE PREPARED Z0cT 7 Oo Source of Funding Pce iagal 71000 Personal Services s_2,530 5 s s_2,539 72000 Travel and Per Diem 1200 1,409 73000 Other Services = _ 77730 Grants * 27¢s 303 22s~ 73140 Grant Handling Fees — = 73872 Project Contingency 40,400 YO Uso 74000 Material (AEA only) = — 73460 Freight (AEA only) ~ SUBTOTAL $3 ie. @55 as= $ s $348, 45S 70200 Indirect Non-personal ¥3O 70100 Allocated Personal 4.240 — 1,270 TOTAL $349075 $ $ 8377075 Matrix Code {3 Project AR 32390 Project CC SIYAC Project LC oa DaSoe BUDGET APPROVALS Manager of Rural Projects Oc ce: Dir. Acct. & Admin. Di ( 0 D Mgr. Rural Projects irector of Rural Programs Preparer Director of Agency Operations Ry “( \0 ( Y \40 Return original to Dir. (If budget greater than $50,000) Initials Date of Rural Programs * If project includes grant funds, see addendum attached. ALASKA ENERGY AUTHORITY RURAL PROGRAMS DIRECTORATE PROJECT BUDGET t Fundi. du COMMUNITY bong - /H LER PROJECT NAME 0oW, ve. PREPARER an Ss DATE PREPARED 70 77730_Grants Labor $ Travel/Per Diem Material Freight Contract Ree cy TOTAL $ S03 725 STATEMENT OF WORK Project Name: Hoon RE Project L/C: Project Description: SSE EA SS ) iwion) OF THREE ) 30,000 Gruon SECF-BiKeo TANKS AN FENCING, Digger ‘Sauines _CBA6EB on TUNE FSO Foec peices ) vs Es mare® Br Orrves~y 70 SE ¥ 3G S500 PER TERR (rourn, _ Pe Auimgs Esrimertp 47 AER yo R520/ye , Number of consumers served, voltage(s), phase(s),kw, etc. Skills/Tasks Required: PCE Analysis Budget Preparation Grant Agreement Trustee Establishment Right-of-Way As-built Design uration staff/motes “< > 2 CEP WETTETEETT T RTTIT ETT E TTT TBE RRRERE SSE Accounting Support Required: Funding Source(s): Federal (HUD) Federal (oth) State app State RSA Trustee Reimbursable AKSAS Funding Restrictions: AEA Direct Chargable AEA Indirect Chargable Mini-Davis-Bacon* Davis-Bacon RTA By Ekle = RH Klas | § * Appice RE +o TAREN wnrlacioks, /F USE 14 SOW Page 2 Project Name: Hoon BE. SCE Present Status: Se 7 dugives THR, ORCHBSES APPROX 300,000 Gelions PER “IBA? 120 AR LOCA. SUPPL EK. AT SURLTH MARGE IF UP yo 23 cents PER GALLON AS COnpPpRRED TO KUWAE Fess. THE 406K cf A Fil UWE BN SKAGE Capac, ROM” S We OF THE powspl PRICE | Special Considerations: 7 _-%LUTEE 72 YHELP FEL CWI SS OF ZO GF? iest Start Date: by: { ALASKA ENERGY AU. TY PROJECT BUDGET WORKSHEET Project Information Community: Hoonby - THEEN Project Name: Hoophn FCE Number: AEA Proj Manager: QGRE Gy ssee Date prepared: LOGO Date of Basis: pa ret it et a LABOR (field work _ Name Task Hrs | Rate Subtotal ~ V LAM ZA WHTE Us cS” UY ax) Qe Five Zagecitv Us> 45 |2494| 50° - ommunity Labor Tol |20 jm Joo A | | | | Tol | —_ ~ |B PER DIEM AND TRAVEL REVIEW Dewss § SPECS RAH of ofa NoLey ALASKA ENERGY AU RITY PROJECT BUDGET WORKSHEET Project Information MATERIAL Description FREIGHT Tenks _/nspued Fen une y J) Gre beers zante CANN INK 6 (NEERING SUMMARY Personal Services(A+D) 2530 Travel & Perdiem (C) 1200 Material (E) aveeneninee Freight (F) =n Contract (B+G) (62m) 303 22S Toul JO 7,85S~ RPO401-2