HomeMy WebLinkAboutPlan Narrative
Business Operating Plan of the
City of Larsen Bay
Bulk Fuel Facility
NOVEMBER 17, 2003
City of Larsen Bay
P.O. Box 8
Larsen Bay, AK 99624
Phone: (907) 847-2211
Fax: (907) 847-2239
City of Larsen Bay
Bulk Fuel Facility Business Operating Plan
Page 1 of 25
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TABLE OF CONTENTS
PAGE
I. EXECUTIVE SUMMARY ...................................................................................................................... 2
Document Interrelationships ..................................................................................................................................... 2
II. BACKGROUND ................................................................................................................................... 3
Selected Statistics – Larsen Bay ................................................................................................................................. 3
III. FACILITY UPGRADE .......................................................................................................................... 4
Bulk Fuel Storage Facility Description ..................................................................................................................... 4
Project Exclusions ....................................................................................................................................................... 4
Community Site Plan and Details ............................................................................................................................. 5
Bulk Fuel Storage Facility Capacity........................................................................................................................... 7
IV. FACILITY PARTICIPANTS................................................................................................................... 8
Participant Contacts .................................................................................................................................................... 8
Facility Component Ownership ................................................................................................................................ 8
V. PRIMARY OPERATOR ........................................................................................................................ 9
Turnover and Assumption of Responsibilities/Sustainability .............................................................................. 9
Staffing and Training ................................................................................................................................................... 9
Financial Responsibilities ........................................................................................................................................... 10
Operations and Maintenance Guidelines ................................................................................................................. 10
Renewal and Replacement Guidelines ..................................................................................................................... 12
Audits and Reporting .................................................................................................................................................. 12
VI. SECONDARY OPERATOR ................................................................................................................... 13
VII. INSURANCE ........................................................................................................................... 14
VIII. REGULATORY COMPLIANCE ............................................................................................................. 15
IX. FINANCIAL INFORMATION ............................................................................................................... 16
Key Financial Assumptions ....................................................................................................................................... 16
Key Operating Assumptions ..................................................................................................................................... 16
Bulk Fuel Facility Funding ......................................................................................................................................... 17
Subsequent Operating Year Revisions ..................................................................................................................... 17
TABLES
Table A: Summary of Facility Expenses to Participant ........................................................................................ 18
Table B: Participant Allocation ................................................................................................................................ 19
Table C: Annual O&M Costs ................................................................................................................................... 19
Table D: 40 Year O&M Cashflow ........................................................................................................................... 20
Table E: 40 Year R&R Schedule .............................................................................................................................. 21
Table F: 40 Year R&R Cashflow ............................................................................................................................. 22
Table G: Loan Schedule ............................................................................................................................................ 24
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
City of Larsen Bay
Bulk Fuel Facility Business Operating Plan
Page 2 of 25
I. EXECUTIVE SUMMARY
This Business Operating Plan (the “Plan”) provides a guideline for the City of Larsen Bay’s (City)
maintenance, operation and sustainability of a new Bulk Fuel Storage Facility (the “Facility”).
The City will be responsible to maintain and sustain the Facility. Therefore, a critical concern for
the City is the ongoing sustainability of the newly installed Facility. This Plan has been developed to
assist the City with that effort: it estimates operation and maintenance needs and costs, estimates
renewal and replacement needs and costs, and a per gallon surcharge for fuel.
The Bulk Fuel Upgrade Project will construct a new Bulk Fuel Storage Facility in Lar sen Bay that
will replace all of the existing storage facilities of the City. The City will utilize its Facility assets to
operate City owned utilities and directly retail fuel.
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 City 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 Certificate of Project
Completion. This Certificate is included in the Grant Agreement; see Additional Related and Attached
Documents.
This Plan focuses on wholesale operations only. Additional costs that will be borne by the end -user
include fuel costs and other retail operation and maintenance costs (defined later in this Plan).
These additional costs are not part of this Plan. See Table A: Summary of Facility Expenses to Participant
for the estimated per gallon fuel surcharge.
Document Interrelationships
The Business Operating Plan is a plan, not an agreement. Attached to this Plan are four documents:
Secondary Operator Agreement
Site Control Documents
Grant Agreement
R&R Fund Account – Sample Documents
The Secondary Operator Agreement references the Plan, and includes language requiring the Plan be
followed. The Plan takes effect after this agreement is executed. Acceptance of the Plan by
execution of the Secondary Operator Agreement is pre-requisite to funding from the Denali
Commission (the “Commission”), which will be provided through a separate Grant Agreement (See
Attachments).
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Bulk Fuel Facility Business Operating Plan
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II. BACKGROUND
The Denali Commission was established by the Federal Government to fund improvement projects
within the State of Alaska, including the Bulk Fuel Upgrade Project. 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 City of Larsen Bay Bulk Fuel Facility, which is to be partially funded by the
Commission.
The village of Larsen Bay is located on the northwest coast of Kodiak Island and is a traditional
Alutiiq settlement, which practices a commercial fishing and subsistence lifestyle. The economy of
Larsen Bay is primarily based on fishing and employment at Kodiak Salmon Packers.
Transportation to the village is by air or water year-round, with regular and charter flights available
from Kodiak. There is a state-owned lighted 2,700’ gravel airstrip and a seaplane base. Docking
facilities are available and the Corps of Engineers began construction of a breakwater and boat
harbor in the summer of 1997. A cargo barge arrives every six weeks from Seattle.
Water is supplied to Larsen Bay by an infiltration gallery on Humpy Creek and is treated and st ored
in a 50,000-gallon wood stave tank. All 40 homes are connected to the piped water system and a
community septic tank with outfall lines; the majority of homes are fully plumbed. A new 200,000 -
gallon water storage tank is needed due to significant leakage in the existing tank. Weekly refuse
collection services are provided and the community uses an incinerator. The City provides most
utility services; operating the water utility, sewer utility, refuse collection and electric utility.
Selected demographic and historical data for the community is provided below:
Selected Statistics – Larsen Bay
Population
2000 115
1990 147
1980 168
1970 109
1960 72
1950 53
Housing (2000 Data)
Occupied Housing 40
Vacant Housing Due to Seasonal Use 28
Other Vacant Housing 2
Economic Data (2000 Data)
Unemployment Rate 10.26%
Median Household Income $40,833
City of Larsen Bay
Bulk Fuel Facility Business Operating Plan
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III. FACILITY UPGRADE
The Bulk Fuel Upgrade (BFU) Project will construct a new Bulk Fuel Storage Facility in Larsen Bay
that will replace all of the existing storage facilities of the City (the “Participant”).
Bulk Fuel Storage Facility Description
The AEA contracted with HDR Alaska, Inc. to develop a Draft Conceptual Design Report (CDR),
which was submitted to AEA on July 2000, and contracted with LCMF, Inc. to update the CDR on
February 2001 and, subsequently, revised designs in May 2002 and July 2003. The purpose of these
efforts is to provide a concept design and construction cost estimate for consolidation and upgrade
of bulk fuel storage in the community, which are referenced in this Plan. This Plan is predicated
upon the information contained in the preliminary designs and its acceptance by the community.
The new Facility will be located adjacent to the existing City bulk fuel facility at a location near the
outskirts of the City, and a new marine header will be located near the small boat harbor.
Project Exclusions
The BFU project does not include the following:
Decommissioning of existing tanks or environmental cleanup
Retail business: including licenses, revenue, prices, taxes, profits, or contributions to the
wholesale fuel storage program
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 V. Primary Operator).
See the following diagrams for the details of the Facility:
City of Larsen Bay
Bulk Fuel Facility Business Operating Plan
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Tank Farm Layout
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Bulk Fuel Facility Business Operating Plan
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Site Plan
City of Larsen Bay
Bulk Fuel Facility Business Operating Plan
Page 7 of 25
Bulk Fuel Storage Facility Capacity
The following table provides a summary of the tankage, by type of fuel (obtained from the Facility
designs), which will be included in the Facility upgrade:
Facility Components & Capacities
Primary
Storage/Dispensing
Number
Gallons
Per Tank
(Gross)
Total
Gallons
(Gross)
Gallons
Per Tank
(Net)
Total
Gallons
(Net)
City
# 2 Diesel
Primary Storage 3 25,000 75,000 22,500 67,500
Dispensing *1 1,500 1,500 1,500 1,500
Subtotal Diesel 4 76,500 69,000
Heating Oil
Primary Storage +1 10,000 10,000 9,000 9,000
Subtotal Heating Oil 1 10,000 9,000
Gasoline
Primary Storage 1 25,000 25,000 22,500 22,500
Primary Storage +1 15,000 15,000 13,500 13,500
Dispensing *1 1,500 1,500 1,500 1,500
Subtotal Gasoline 3 41,500 37,500
Total Primary
Storage/Dispensing
6 128,000 115,500
Pipeline Components Number
Marine header 1
Filler pipelines (From header
to facility)
2
Marine dispenser on dock 1
Retail Dispenser 1
Dual-fuel retail dispenser 1
* One Tank with dual capacity for dispensing diesel and gasoline.
+ One Tank with dual storage capacity for heating oil and gasoline.
The Facility’s storage capacity is similar to its present usage. However, if annual fuel requirements
increase to levels above planned storage capacity, multiple fuel deliveries can be made each year.
City of Larsen Bay
Bulk Fuel Facility Business Operating Plan
Page 8 of 25
IV. FACILITY PARTICIPANTS
The Facility participant is:
City of Larsen Bay
Primary Contact Name: Allen Panamaroff, Mayor
Phone: (907) 847-2211 Fax: (907) 847-2239
Address: City of Larsen Bay
P.O. Box 8, Larsen Bay, AK 99624
Usage: The City will utilize its Facility assets to operate its utilities and to retail fuel.
Facility Component Ownership
The City owns 100% of the Facility, and is responsible for the Operation and Maintenance
(“O&M”) and Renewal and Replacement (“R&R”) of the Facility and all associated costs.
The Larsen Bay BFU Facility is organized as follows:
1. Land: The proposed fuel storage facilities will be located on land owned by the City of
Larsen Bay and, therefore, a land lease will not be needed.
2. Pipeline Easements/Right of Ways: The City of Larsen Bay owns the land required for
the upland portion of the Facility pipeline, and has been granted management authority
by the State of Alaska for the tide and submerged land needed for the remainder of the
pipeline.
3. Primary Operator: The City of Larsen Bay will be the Primary Operator (PO). The
Denali Commission will select a Secondary Operator if the PO does not perform per this
Plan. The PO will take care of the O&M (annual operations and maintenance, training,
testing, etc) and R&R of common facilities.
City of Larsen Bay
Bulk Fuel Facility Business Operating Plan
Page 9 of 25
V. PRIMARY OPERATOR
The Primary Operator for the City of Larsen Bay Bulk Fuel Storage Facility is the City. A detailed
statement of qualification for the Primary Operator is included as Appendix A: Primary Operator
Statement of Qualification.
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 t hat the Facility is ready for
Beneficial Occupancy. Upon receipt of this Certificate, the City 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. 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 for the transfer of fuel
and no costs for this activity are included in the Plan.
The Primary Operator is responsible to establish and manage accounts for O&M and R&R to
ensure that sufficient financial resources exist to sustain the Facility as specified in the Plan.
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.
It is 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. When the Primary Operator lacks trained
operators and administrative staff, training will be obtained to ensure sustained Facility operation.
The Primary Operator will utilize training programs offered by AEA, the Alaska Vocational
Technical Center (AVTEC) in Seward, the Commission and other training programs.
City of Larsen Bay
Bulk Fuel Facility Business Operating Plan
Page 10 of 25
Financial Responsibilities
There are two cost categories that will be incurred in the ongoing operation and upkeep of the
Facility – O&M and R&R.
The Primary Operator will incur a number of expenses relating to the O&M of the Facility. 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 Costs and a narrative detail is provided in Section IX: 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 E: 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, while 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. The Manager will be authorized to draw against the O&M and R&R funds for routine
expenses of the Facility, however individual expenditures in excess of $5,000 will require the
authorization of the Primary Operator’s management or governing body. See Appendix A: Primary
Operator Statement of Qualification for an overview of the Primary Operator’s fiscal controls and
accounting procedures.
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.
Operations and Maintenance Guidelines
The Primary Operator will establish an active non-interest bearing account for the Facility O&M so
that the O&M schedule can be completed and the Facility operations can be sustained into the
future. Section IX: Financial Information provides Table C: Annual O&M Costs as a guide to plan for
annual maintenance activities and Table D: 40 Year O&M Cashflow as a guide to estimated yearly
O&M required contributions. These costs are based upon the O&M cost estimate provided by
HMS, Inc, see Appendix B: O&M and R&R Cost Estimate.
City of Larsen Bay
Bulk Fuel Facility Business Operating Plan
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Participants’ Operation and Maintenance Responsibilities
Operational
Responsibilities
City NA Cost
Pipelines
Diesel Filler Pipelines
Marine Header – City Manifolds x City
City Manifold – City Tanks x City
Gasoline Filler Pipeline
Marine Header – City Tanks x City
Heating Oil Filler Pipeline
Marine Header – City Tanks x City
Tank Interconnections
City – City x City
Dispenser Pipelines
City Tank – Diesel Dispenser x City
City Tank – Gas Dispenser x City
Tanks/Foundations
City Primary Tanks x City
City Dispensing Tanks x City
Dispensing Pumps
City Gasoline Pump x City
City Diesel Pump x City
Support
Dikes x City
Fence x City
Footprint x City
Electricity
Lights x City
City Distribution Pumps x City
City of Larsen Bay
Bulk Fuel Facility Business Operating Plan
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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 R&R Account”). It is assumed that the R&R activities for Year 20 will be funded 40%
from the R&R account and 60% from debt financing, at 5.5% over 10 years. Section IX: Financial
Information provides Table E: 40 Year R&R Schedule as a guide to plan for annual R&R activities,
Table F: 40 Year R&R Cashflow as a guide to estimated yearly R&R required contributions, and Table
G: Loan Schedule as a guide to Year 20 R&R loan assumptions and payment schedules. These costs
are based upon the R&R cost estimate provided by HMS, Inc, see Appendix B: O&M and R&R Cost
Estimate.
The Primary Operator will periodically remit R&R funds to the administrator of its R&R escrow
account according to guidelines to be established by the Denali Commission. Management and
other fees charged by the escrow fund administrator will be automatically deducted from the
Primary Operator’s R&R escrow account, according to an Escrow Agreement or other similar
document.
The Primary Operator will use the estimates in this Plan for year one contributions, and in
subsequent years will recalculate contributions based upon assets to be maintained as actually built.
Audits and Reporting
The Primary Operator will arrange for an annual financial reconciliatory audit that is conducted by
qualified, independent auditors at their office. The auditors will not travel to Larsen Bay unless the
Primary Operator requests an on-site audit. 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 and expenditures, 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 reconciliatory 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.
City of Larsen Bay
Bulk Fuel Facility Business Operating Plan
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VI. SECONDARY OPERATOR
The Secondary Operator for the Larsen Bay Bulk Fuel Facility project will be determined in the
future by the Denali Commission, if the need arises.
See the attached Secondary Operator Agreement for details.
City of Larsen Bay
Bulk Fuel Facility Business Operating Plan
Page 14 of 25
VII. INSURANCE
The Primary Operator is required to be insured for General Liability Insurance, which will be
included in the annual O&M costs. Currently, the City is insured, for its bulk fuel facility, through
the Alaska Municipal League Joint Insurance Association (AMLJIA), Inc., Policy # GP 2002 -062,
for General Liability coverage of up to $10.25 million per occurrence at an annual cost of $459. It is
anticipated, by the AMLJIA, Inc., that the cost of this insurance will increase by up to 30% over the
next 12 months. Therefore, initial annual costs for General Liability Insurance have been estimated
to be $600 per year.
City of Larsen Bay
Bulk Fuel Facility Business Operating Plan
Page 15 of 25
VIII. REGULATORY COMPLIANCE
The Primary Operator is responsible for ensuring the operation and maintenance of the storage
tanks and transfer systems that they own and operate are compliant with state and federal
requirements. The Primary Operator shall comply with the procedures e stablished in the spill
prevention and response plans listed below and will maintain and be familiar with the following
regulatory plans:
US Coast Guard Facility Response Plan (33 CFR Part 154)/EPA Facility Response Plan
(40 CFR Part 112) – This plan establishes spill response procedures and organization for
the tank farm. It commits the Participant to maintain adequate spill response equipment
and to conduct annual training and drill programs.
US Coast Guard Operations Manual (33 CFR Past 154) – This plan describes the
required procedures to be followed by the Participant when off-loading fuel from
marine vessels to the tank farm.
US Environmental Protection Agency (EPA) Spill Prevention Control and
Countermeasures Plan (SPCC) (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.
These plans include commitments and guidelines for spill prevention, response, a nd other related
environmental information to ensure the environmental integrity of the Facility and the community.
The plans will be developed near the end of tank farm construction. The Primary Operator will
participate in development and review of the plans as requested. Estimated expenses have been
provided herein and include the anticipated costs of implementing the plans, ensuring the reliability
of the spill response equipment, maintaining the proper records, and conducting periodic spill drills.
The Primary Operator shall ensure the plans are approved, maintained, and updated in accordance
with Coast Guard and EPA requirements described in the plans.
Formatted
City of Larsen Bay
Bulk Fuel Facility Business Operating Plan
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IX. 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 these
estimates should not be considered final.
Key Financial Assumptions
Annual inflation rate of 1.53%.
Annual investment rate of 34.5%.
Annual General Liability insurance is estimated to be $600, based upon current coverage.
Year 20 R&R activities will be funded 40% from the Primary Operator’s R&R account
and 60% from debt financing, at 5.5% over 10 years.
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 reach $100,000.
Detailed assumptions regarding labor rates, required labor hours, and other operating
costs are provided in the tables that follow.
Existing debt, or other obligations, of the bulk fuel Facility are not included in this Plan.
Key Operating Assumptions
Throughput – The annual estimated gallons of fuel that will flow through the Facility.
Initial annual throughput estimates: 179,000 gallons of diesel, heating oil and gasoline.
Throughput is estimated to grow annually at a rate of .5%.
Retail operations, or its profits, are not included in the Plan.
City of Larsen Bay
Bulk Fuel Facility Business Operating Plan
Page 17 of 25
Bulk Fuel Facility Funding
This Plan is not a commitment to provide project funding; however, it is anticipated that project
funding will be provided by the State of Alaska and the Denali Commission.
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 City per gallon O&M costs based upon updated throughput estimates
Step 4: Recalculate City per gallon R&R costs based upon updated throughput estimates
Step 5: Recalculate total City per gallon fuel costs
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Bulk Fuel Facility Business Operating Plan
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Table A: Summary of Facility Expenses to Participants
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Bulk Fuel Facility Business Operating Plan
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Table B: Participant Allocation
Table C: Annual O&M Schedule
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Bulk Fuel Facility Business Operating Plan
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Table D: 40 Year O&M Cashflow
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Bulk Fuel Facility Business Operating Plan
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Table E: 40 Year R&R Schedule
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Bulk Fuel Facility Business Operating Plan
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Table F: 40 Year R&R Cashflow
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Bulk Fuel Facility Business Operating Plan
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Table F continued
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Bulk Fuel Facility Business Operating Plan
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Table G: Loan Schedule
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Bulk Fuel Facility Business Operating Plan
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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 a bulk fuel facility 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 bulk fuel facility
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.
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
SECONDARY OPERATOR AGREEMENT
SITE CONTROL DOCUMENTS
GRANT AGREEMENT
R&R FUND ACCOUNT -- SAMPLE DOCUMENTS