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Home My WebLink AboutBusiness Operating Plan of the Koliganek Bulk Fuel Facility September 15, 20101 We eS ns 8ngaaetae Business Operating Plan of the Koliganek Bulk Fuel Facility SEPTEMBER 15,2010 New Koliganek Village Council P.O.Box 5057 Koliganek,AK 99576 Phone:(907)596-3434 Fax:(907)596-3462 TABLE OF CONTENTS -_-_-_--S PAGE I.EXECUTIVE SUMMARY....ccssccssssesovnsscccrccsscnssccsssccsscesscessenssevacecscscvessesecccscccsccseccusesevcscccsunescuccanecsouscsoes 2 Document Interrelationships oe seseeeseseesseesesscscseeseseassscsssssssscessneseessessdsenerssonecsneassneasensssenenessansaeesansuensassneass 2 II.BACKGROUND ......cccsccscsccnseveccsscnncsccestececcscecccccerscceccsceccecsccecesonceccsssccuenscesesccstesseccsceesenceserscccecesevscsccess 3 Selected Statistics -Koliganek ........cccsssssssessssssssesseesseessssessrssssseerecssnssnesssesssessasessissssussssnussrssesssiessssesssassnssnseseas 3 TEL.FACILITY UPGRADE ........ccccocsssseccescsscccccecccsscesccsccsccccnaccecceccnseneccescecccscsesteccesseseecascescnsenesccncassccssnescees 4 Bulk Fuel Storage Facility Description......scssssssssesssssessesssseesssseseessesessesseessesereanssssssssssssunsreussesessessssenisesssans 4 Project EXclusions ..ccccessesssssessessccssssssesssessenesssssssseasssscsseasssssssessessccessssnesssseacsesssasessersssassereassnessiesoracenansnseeenensacs 4 Community Site Plan and Facility Tank Plan...csessssssessessssssessesessessseessseesseansuessssssssesmssnssessnestneatssas 5 Bulk Fuel Storage Facility Capacity ...ccccecsessssessescsssessensssssssssensssssscscssssessesssssssescssssssesssscsssssssssessersreasseasscessesarens 7 TV.FACILITY PARTICIPANTS.......cccesscccccsccscsscnccscccrsccccscccceccscsccscuccncceccccecesceccstesescosaseescesdssesssccescecsssscessese 8 Participant Contact ...cssssssessesssssesssesssnecsessssesecseesssnssessssessessssessesessssuesessesucsessesuasssnasssuesucsssavenensssesneeseseessvesacensasensaneass 8 Facility Component Ownership ......esscssssssesenssssesessssssssseenssssusseessssssesssssssensseseneesessssssesssssssssassunsssensssssssnsscessssnessens 8 Vv.PRIMARY OPERATOR ....cccsscosssccccccnsccsccnsenscnsscnsensveesseccescescosensccsscassuccnsssevsnssesccecsescescosesescescsssescnesesces 9 Turnover and Assumption of Responsibilities /Sustainability.......cscscscssesesssesesseeseessssessesesessssessesessesenssees 9 Staffing and Traiming.....esecssesesseessssssssesessesssessessesesssessessenesssssesesssseesesesssseasssessssssseteersensasensesmssseessensecenseacenseeees 9 Financial Responsibilities ........csssssssssseesssessessseessssseesssssencessssscessssseeseveseessesseesssseessesstensssessesenserscsusssssessesssaseeeesenes 10 Operations and Maintenance Guidelines...cccccssessssesessssessessesessesnssssescssesessesnesceueseasssssseseesesssscsacensenseneasesenenens 10 Renewal and Replacement Guidelines ........ccscssssssssssessssessesseseenssssesnecnescensscenenseneesesssssessnssssasesersestsesssassssenesenies 10 Annual Audit ...ccccccccsscsssessssscscesscssssssnessessesseeeessesssssssseesesseensessecenecsecsesstensenstssessncsssensesesscaatsssessessuesuseaeeaseneseaseaessacsaes 11 Annual Reporting .....cccscecssesssccsessssssesssessscsssessceaescsssssscessessecssesseessssesecssessessssscseesseseeeeaesansssssacetissssnssasssnsessseansnesens 11 Right to Review and Access Books and Records ......cccssscseerssesssssecssnsesesseneessneessessnsisnnsssnssseussassessssssnnesssanes 11 VI.SECONDARY OPERATOR ......ccsssccosccsscscccsscnscceccnsanscnscveccesscccssccessescuscosssccesccesccecceccescuscseccecersouscosccesoese 12 VII.INSURANCE.....ccccosscsscccsscnssceccnsnsccnsonscseccnessesnssonssnecascnsscnsasccnsscnssescesenecnescescnscescuscpecssccesccecceccessseccnesse 13 VIII.REGULATORY COMPLIANCE ......cosssssccsccsscnscceccescnsccesesccescsscuscnssceccescesccsccescesccsceccesccecsasncenscuncasecesense 14 IX.FINANCIAL INFORMATION ......cccccssssccsccsvcccnscsccscnccsccsccccscescsccscsccececcscesceccecesnsstecoscestesscseusscescecerseuceaee 15 Key Financial Assumptions .......cccccccccssesesessesesseseesessseenesesesceessescesensersnescensaesesneseausasseanssesscaaseeeeneasessneaseseseeneseaassnsenes 15 Key Operating Assumptions ......ccscsssssssecssssssesssssssssessssssssssssessessenssssnseneenensenecessssaeessanenssvaseeseeseessesessensensasaseasenseeniaes 15 Explanation of Financial Terms ......ccscsssssessssessesssssssessssssesseessasencenssseseneoresenssessnssenssssessseeessssnsssnsseesssenseseines 15 Bulk Fuel Facility Funding ....cscssssssssssesssssseseessessesesessseesssesssnsssssssssusessscesssseneesssessessmsessssscesssesssussssessseenatsasens 16 Subsequent Operating Year Revisions .....ccsesssssesssssessesesseessssessseesessssneesssssssseseesessssessesssessssasensssesessansseceorensessasenes 16 Financial Overview.....ccecccsssesssesscsssssscssssssesssesssseccssnessessensssssesssccacsssscseseessssessacseseessssesuscesseseesesteecsssersesussuerescneeueenees 17 TABLES Table A:Summary of Facility Expenses to Participant ......csccsscssseseessesssecssnsssesissssceisssaseesereeesssesaniees 18 Table B:Participant Allocation ......csescsssssssesssesssssssessssssssssssesesssnssnsesensenssseseaceneessssensensstssssaceseensensesensssssnemeseneenens 19 Table C:Annual O&M Costs ...cssccssessssscsssssessssssessessecsssssesssssssnsssncsesenscsesssesarsssensessessesoeessesateneseenassaeeaeeaeeeseesaesssees 20 Table D:40 Year O&M Cash flow...cccccccscscsssscsscscssssscssssssscseessessessesesscscesecsssessessssseseesesesseessseecsuaseeseessasssseessaesevens 21 Table E:40 Year R&cR Schedulle........cccseesssessssesscsessccssssestcssessesescessessesessesscseesessecssssesessscacaessesseasesessecssscceeseeestenss 22 Table F:40 Year R&cR Cashflow ......cccecssssesessssesscsrersessssessessessesesecesestecessesesseceesaesseseestsansecsesersesscsscsecasscsnessecessnes 23 Table G:Loan Schedules ......ccccssssssessssseesesscssessescsessscsatssassseessestssaeeeseaecesesseesesessseesaceneesesacussatesecseseacseeesesesnesssees 25 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.SAMPLE GRANT AGREEMENT 4,R&R ACCOUNT INFORMATION New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 1 of 26 -™ Plan Narrative I.EXECUTIVE SUMMARY This Business Operating Plan (the "Plan”)provides a guideline for the New Koliganek Village Council's ("Council”)maintenance,operation and sustainability of a new Bulk Fuel Storage Facility (the "Facility') in Koliganek,Alaska,to be owned by the Council. The Council will be responsible for the operation and maintenance of the newly installed Facility and to ensure its ongoing sustainability.This Plan has been developed to assist the Council 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 surcharge should be reviewed and recalculated annually. The Bulk Fuel Upgrade (BFU)project will construct a new Bulk Fuel Storage Facility in Koliganek that will replace existing bulk fuel storage facilities owned by the Council. Upon construction,the Facility will be turned over to the Council,after the satisfactory completion,as determined by the Alaska Energy Authority (AEA)or its representative,of a 14-day test period.After this test period,the AEA will provide written notice (Certificate of Substantial Completion)that the Facility is ready for Beneficial Occupancy.Upon receipt of this Certificate,the Council 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 copy of this Notice is included in the Sample 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 the Financial Overview and Table _A:Summary ofFacility Expenses to Participants for the estimated per gallon bulk fuel surcharge. Document Interrelationships Attached to this Plan are: Secondary Operator Agreement Sample Grant Agreement e e Site Control Documents e e R&R Account Information The Secondary Operator Agreement references the Plan and includes language requiring that the Plan be followed.The Plan takes effect after this agreement is executed.Acceptance of the Plan by execution of this agreement is pre-requisite to funding from the Denali Commission (the "Commission'”'),which will be provided through a separate Grant Agreement (See Attachments for a copy of a Sample Grant Agreement). New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 2 of 26 II.BACKGROUND 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.The AEA will coordinate the planning,construction and funding of the Koliganek Bulk Fuel Facility,which 1s to be partially funded by the Commission. Koliganek is located on the left bank of the Nushagak River and is 65 miles northeast of Dillingham. Koliganek is an Eskimo village and was first listed in the 1880 Census as "Kalignak.”The name is local, recorded by the U.S.Geological Survey in 1930.Since then,the village has moved four miles downstream from the original site.Koliganek is a Yup'ik Eskimo village with Russian Orthodox practices.Subsistence activities are an important part of the lifestyle. The village government and school provides most of the year-round employment.In 2009,18 residents held commercial fishing permits.Many residents trap and subsistence activities are an important part of the economy.Residents are employed in sales,clerical,management,professional,production, transportation and service occupations.The town center contains the school,health clinic,two general stores,fuel storage,power generation building and the village council building. Koliganek has operated a piped water system for over 25 years;and,water is derived from a well and is treated.Thirty-three homes and facilities are connected to the piped water and a community septic tank. Eight homes have individual wells and septic systems.Fifteen homes haul water and use honeybuckets. Koliganek purchases power from the school district and also owns its own generator. For transportation,boats and ATVs are used in the summer and snow machines are used in the winter. A state-owned 3,000'long by 75'wide runway is available.Locals travel to New Stuyahok frequently. There are no docking facilities;goods are lightered from Dillingham. Selected demographic and historical data for Koliganek is provided below: Selected Statistics -Koliganek Population Koliganek 2009 (DCCED Estimated Population)182 2000 182 1990 181 1980 117 1970 142 1960 100 Housing (2000 Data) Occupied Housing 53 Vacant Housing Due to Seasonal Use 2 Other Vacant Housing 22 Economic Data (2000 Data) Unemployment Rate 10% Median Household Income $44,583 New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 3 of 26 III.FACILITY UPGRADE The Bulk Fuel Upgrade (BFU)Project will construct a new Bulk Fuel Storage Facility in Koliganek that will replace existing storage facilities of the Council. Bulk Fuel Storage Facility Description The AEA contracted with the Alaska Energy and Engineering,Inc.to develop a Conceptual Design Report (CDR)and with LMCF,LLC to develop final project design.The purpose of the CDR is to provide a concept design and construction cost estimate for consolidation and upgrade of the Council's bulk fuel storage,which are referenced in this Plan.This Plan is based upon the information contained in the CDR and updated design drawings. The proposed new Council tank farm will be located on the site of existing tank farm #3 and will provide storage for virtually all of the diesel fuel and gasoline received by the Council for power generation,heating fuel delivery and vehicle dispensing.The Facility design provides for a new lined timber wall dike to provide secondary containment of the tanks.A security fence will enclose the tanks and a roofed security enclosure,for retail dispensing of gasoline and diesel into vehicles,will be located directly across the gravel road from the tank farm.A separate roofed security enclosure,located adjacent to the tank farm,will house a single product bulk transfer hose stand for filling fuel trucks and portable tanks with diesel fuel. Project Exclusions The BFU project does not include the following: e Decommissioning of existing tanks or environmental cleanup e 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: New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 4 of 26 Community Site Plan 4 oo AENAONEAND soon.{f T <= ORAL on an 4 * bed _ eee % BASEONPOE feeatiued poe an es 7 a | Sn| oo 'a my ye Han weepaip cet ae : HlSe t ers H a ny . sf \\ Lo----" Tree . i}. MELOCATE BAN12”Ob. r-4 Be} ce Che eo WAC? Tas WENet in we 14/ rene 4laneOS : ans wo : 1 ', 7 ane ' FENCE 141F!114 tho kimL[ ovnseoFpmowosenWALAGE tantFane vo » PLAT 2004-8 BRISTOL BAY #0. KOLIGQANEK BCHOOL SUBDIVISION |. TRACT A OWNER: KOLIGAMEK NATIVES LTD we ae ee ee ee ee eeee .ot [PLAT 2004-8 BRISTOL BAY #0. KOLIGANEK NATIVES LTD TRACT 81 OWNER: KOLIGANEK NATIVES LTD (\BULK_ TANK FARM GRADING/DEMO PLAN SCALE fFEET ALASKA ENERGY AUTHORITY KOLIGANEK BFU PHASE #DESIGN KOLIGANEK,ALASKAEYLCMF.. 65%DESIGN DRAWINGS E-47 Kae tetot New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 5 of 26 Facility Tank PlanSkeeeeeng ' ' e } 4 T - ' . | Lael = sa.n0g ohow ' Brsn 1 - DAYLINY $2"GO. ' otter ' TaeAo 2 3000CastOm 3| Oeste 1111 ' 1 ae |B L rr JWORKMTUBAREAOMY©OCHO. PARTICPATR |tLy - | - wo - ' ' DLAY 2004-6 BRISTOL BAY RD KOLIGANEK SCHOOL SUBDIVISION _ TRACT A OWNER: KOLIGANEK NATIVES LTD gE . ELEVATION = ONS y tet [PLAT 2006-9 BMATOL BAY RD oe eo| ROUGANER NATIVES LTD as | /TRACT @1 OWNER: KOLIGANEK NATIVES LTD nr Taeat i] 0 20 jtoe Set nit (BULK TANK FARM LAYOUT PLAN MAR Po ALASKA ENERGY AUTHORITY KOLIGANEK SFU PHASE A DESIGN KOLIGANEK,ALASKAE\LCMF. 65X%DESIGN DRAWINGS New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 6 of 26 Bulk Fuel Storage Facility Capacity The following table provides a summary of the tankage,by type of fuel (obtained from the CDR),which will be included in the Facility upgrade: Facility Components &Capacities Gallons Total Gallons Total Storage/Dispensing Capacity Number PetTank Gallons Per Tank Gallons (Gross)(Gross)(Net)(Net) Council Diesel Primary Storage 4 30,000 120,000 27,000 108,000 Dispensing 1 10,000 10,000 9,000 9,000 Intermediate 1 6,000 6,000 5,400 5,400 Gasoline Primary Storage 1 30,000 30,000 27,000 27,000 Dispensing 1 10,000 10,000 9,000 9,000 Total Council 8 176,000 158,400 Total Storage/Dispensing 8 176,000 158,400 Pipeline Components Pipeline to Marine Header 2 Dual Product Dispenser 1 Truck Fill Area 1 Each Council's storage 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 fuel requirements. New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 7 of 26 IV.FACILITY PARTICIPANTS The Facility participants are: New Koliganek Village Council -The Council will utilize its facility assets to operate facilities, generator power and retail fuel. Primary Contact Name:Herman Nelson,Sr.,President Phone:(907)596-3434 Fax:(907)596-3462 Address:P.O.Box 5057,Koliganek,AK 99576 Facility Component Ownership The Council will own 100%of the Facility and will be responsible for the Operation and Maintenance ("O&M”)and will contribute funds for the Renewal and Replacement ("R&R”)of the Facility. The Koliganek BFU facility is organized as follows: 1.Land:The proposed new tank farm site is located within portions of Tracts 82 of the ANCSA 14(c)survey,which is vested in the Municipal Land Trust. 2.Improvements:The Council will own all of the facility improvements including tanks,pipes, etc. 3.Right of Ways:The buried barge fill pipelines from the marine header to the tank farm site will be routed within land vested in the Municipal Land Trust. New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 8 of 26 V.PRIMARY OPERATOR The Primary Operator for the Koliganek Bulk Fuel Storage Facility is the New Koliganek Village Council.A detailed statement of qualification for the Primary Operator is included as AppendixA: Primary Operator Statement ofQualification. Turnover and Assumption of Responsibilities /Sustainability The Facility will be turned over to the Council,after the satisfactory completion,as determined by the AEA or its representative,of a 14-day test period.After this test period,the AEA will provide written notice (Certificate of Substantial Completion)stating that the Facility is ready for Beneficial Occupancy. Upon receipt of this Certificate,the Council 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.A copy of this Notice is included in the Sample 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 Council and 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 1n 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 ttmes.When the Primary Operator lacks trained operators and administrative staff,training will be obtained to ensure sustained Facility operation. New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 9 of 26 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. 1)O&M:The Primary Operator,and its lessees,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 OC*M Costs and a narrative detail is provided in Section VIL:Financial Information to address estimates and assumptions. 2)R&R:R&R costs are those expenses defined as items costing greater than $5,000 and/or that are not incurred 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,savings account.When the cash balance of the R&R account makes an escrow account more cost effective (at least when the balance reaches $100,000);then the R&R account must be transferred to an interest- bearing invested escrow account that 1s acceptable to the Denali Commission.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 the authorization of the Primary Operator's management or governing body.Withdrawals from the R&R account of $5,000 and under will require two Council signatories;while withdrawals from the R&R account over $5,000 will require two Council signatories and a Council resolution.See Appendix.A:Primary Operator Statement ofQualification for an overview of the Primary Operator's fiscal controls and accounting procedures. At least once a year,no later than August 31%,the Primary Operator will develop a budget for theupcomingfiscalyear,October 1st through September 30",for both O&M and R&R. Operations and Maintenance Guidelines The Primary Operator will maintain separate accounting records and maintain a sufficient O&M cash balance 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 VII:Financial Information provides Tabk C:Annual OC>M Costs as a guide to plan for annual maintenance activities and Tabk 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 LCMF,LLC,see Appendix B:O¢ M and R&R Cost Estimate,current Council labor rates and costs of operating similar facilities. Renewal and Replacement Guidelines The Primary Operator will establish a Bulk Fuel Facility savings account or interest-bearing invested escrow account acceptable to the Denali Commission,which will ensure capitalization of an amount sufficient to maintain the R&R Schedule.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 VIII: Financial Information provides Tabk E:40 Year R¢>R Schedule as a guide to plan for annual R&R activities, Table F:40 Year RC*R Cashflow as a guide to estimated yearly R&R required contributions,and Tabk G: Loan Schedule as a guide to Year 20 loan assumptions and payment schedule.These costs are based upon the R&R cost estimate provided by LCMF,LLC.,see Appendix B:O¢M and Re>R Cost Estimate. New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 10 of 26 At least annually,the Primary Operator will remit R&R funds to the financial institution or the administrator of the R&R account.Management and other fees charged by an escrow fund administrator will be automatically deducted from the R&R escrow account,according to an Escrow Agreement or other similar document. The Council 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. Annual Audit The Primary Operator will arrange for an annual financial audit,or financial review,that is conducted by a qualified,independent Certified Public Accountant.The auditors/reviewers are not required to travel to Koliganek unless the Primary Operator requests an on-site audit.The audit,or financial review,may be conducted in conjunction with other programs /activities managed by the Primary Operator.A copy of the annual audit,or financial review,must be provided to the Denali Commission,in conjunction with the Annual Report described below. Annual Reporting The Primary Operator will provide an annual report of operations to the Commission and the Alaska Energy Authority,within 90 days of the end of the Primary Operator's fiscal year,using the Commission's "Dena Commission Annual Report Form”.The annual report should include a summary description of O&M and R&R projections,annual O&M and R&R budgets and expenditures and other important project information.The Commission will review the reports and will actively monitor the Primary Operator's ability to operate consistent with guidelines outlined in this Plan. Right to Review and Access Books and Records 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. New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 11 of 26 VI.SECONDARY OPERATOR AGREEMENT The Secondary Operator for the Koliganek Bulk Fuel Facility project will be the Koliganek Natives Limited.See the attached Secondary Operator Agreement for details. New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 12 of 26 VII.INSURANCE The Primary Operator is required to be insured for General Liability Insurance.The Primary Operator will include the cost of General Liability Insurance in the annual O&M costs;which is estimated to be $.10 per gallon of throughput. New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 13 of 26 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 established in the spill prevention and response plans listed below and will maintain and be familiar with the following regulatory plans: e 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 Primary Operator to maintain adequate spill response equipment and to conduct annual training and drill programs. e US Coast Guard Operations Manual (33 CFR Past 154)-This plan describes the required procedures to be followed by when off-loading fuel from marine vessels to the tank farm. e 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 and 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 and maintaining the proper records. The Primary Operator shall ensure the plans are approved,maintained and updated in accordance with Coast Guard and EPA requirements described in the plans. New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 14 of 26 FinancialInformation IX.FINANCIAL INFORMATION All estimates and assumptions contained in this Plan are intended for the first year of Facility operation. Starting with the second year,as operating experience specific to this Facility is obtained,the Primary Operator will develop annual O&M and R&R budgets and payment schedules. Key Financial Assumptions e Annual inflation rate of 1.5%. e Annual investment rate of 3%. e Insurance is estimated to be $.10 per gallon of throughput in year one with subsequent years inflated at 1.5%. e 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. e R&R funds must be deposited into an interest-bearing savings or invested escrow account. Bank fees are assumed to be 1%beginning in the year that balance reaches $100,000. e Detailed assumptions regarding labor rates,required labor hours and other operating costs are provided in the tables that follow. e Existing debt,or other obligations,of the bulk fuel Facility are not included in this Plan. Key Operating Assumptions e Retail financial operations,or its profits,are not included in the Plan. e Initial annual throughput estimates:80,000 gallons of diesel and 30,000 gallons of gasoline. e Throughput is estimated to grow annually at a rate of approximately .5%thereafter. Explanation of Financial Terms e Throughput -The annual estimated gallons of fuel that will flow through the Facility. New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 15 of 26 FINANCIAL OVERVIEW PRIMARY CAPACITY AND INITIAL THROUGHPUT Council NA NA Total Primary Capacity Gallons 158,400 0 0 158,400 (Net)Percentage 100%0%0%100% Initial Throughput Gallons 140,000 0 0 110,000 Volume Percentage 100%0%0%100% %Share of O&M and R&R on Common °0 °° Assets (based upon Primary Capacity)100%o%0%100% YEARS 1 THROUGH 5 -ESTIMATED O&M PAYMENT SUMMARY YEAR t YEAR 2 YEAR 3 YEAR 4 YEAR 5 Esti d O&Maevments Annual |$$per Annual |$$per Annual |$$per Annual $$per Annual |$$perPayments;Gallon'||Payments |Gallon'||Payments |Gallon*;|Payments |Gallon*Payments |Gailon* Council $23,900 |$0.217][$24,259 $0.219]][$24,622 |$0.222][$24992,$0.224][$25,367 |$0.226 | NA gs -{s -fis -[gs -f[s -[gs -|[s -[$s -fs -(g - NA s_-is -|{[s_-is -fils -is -fis -is -fis -_is - TOTALO&M |$23,900![$24,259 1 lf $24,622 |}{$24,992 |{1 $25,367 | YEARS 1 THROUGH 5 -ESTIMATED R&R PAYMENT SUMMARY YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Estimated R&R jsPaymentsAnnual|$$per Annual |$$per Annual |$$per Annual |$$per Annual |$$perPayments|Gallon*||Payments |Gallon*||Payments |Gallon*|)Payments |Gallon*Payments |Gallon* Council $10,120|$0.092][$10,476/$0.095]{$10,844/$0.098]$11,225|$0.101][$11,620 |$0.104 NA $-|$-$-_|$-$-[$-$-_|$-$:: NA gs -ig)-fis -ts -jis -ts -|[s_-ts -dis is - TOTALR&R |$10,120 |{$10,476 ||{$10,844 |[$11,225 |l{s 11,620: YEARS 1 THROUGH 5 -ESTIMATED TOTAL (O&M PLUS R&R)PAYMENT SUMMARY YEAR 1 I YEAR 2 YEAR 3 YEAR 4 YEAR 5 Estimated Total I ;.Pan ents.Annual |$$per Annual |$$per Annual |$$per Annual $$per Annual $$perymPayments|Gallon*||Payments |Gallon*||Payments |Gallon*||Payments |Gallon*Payments |Gallon* Council $__34,020 |$0.309 ||$34,734 |$0.314]]$35,466 |$0.319 ]|$36,217 $0.324]]$36,986 |$0.330 NA $-js -$-_|$-$-|$-$-I$-$-|$- __NA $-'$-$-_|$_-$-'$-$-_'$-$-_|$- TOTAL |$_34,020 »[$34,734 °|1 $35,466 |}$s 36,217 [[$36,986 | *NOTE:This is the amount that should be charged,per gallon,to all fuel uses -including retail customers purchasing fuel,electric utility, fuel used to heat buildings and fuel contributed for community purposes. New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 17 of 26 TABLEA Summary of Facility Expenses to Participants New Koliganek Village Council NA NA y.O&M R&R Total O&M R&R Total O&M R&R Totalear Annual $$Per Annual $$Per Total Total Per Annual $$Per Annual $$Per Total Total Per Annual $$Per Annual $$Per Total Total Per Payments Gallon Payments Gallon Payments Gallon Payments Gallon Payments Gallon Payments Gallon Payments |Gallon |Payments |Gallon |Payments |Gallon1[S$23,900]$0217]$10,120/$0.092 |$34,020;$0.309 ||$:$$ -+|$=$-_|$-1$-$-|$-|$-|${$-|$- 2 S$24259)$0.2191 $10,476]$0.095]$34,734 |$0.314 ||$-$-*|$-$-_{$-{$-$-|$pt -|3 $-|$ _3_[$_24,622|$0.222)$10,844]$0.098]$35466)$0.31919]$-$-$ -|$-_{$-|$--|$-|$-|$_i$-|$- 4 $24,992)$0.224)$11,225)$0101]$36,217/$0.324]1]$-$$-«I$-$-_{3 _-|8 :$-|$ -48 -1$$-|$_5 [8 25367/$0.226]$11,620]$0.104]$36,986 |$0.330]|$-_18 $-[$=|8 "18 -§-1$-{$-{$$.-|$ 6 $25,747 |$0.228]$12,028 |$0.107 |$37,775 |$0.3354)$-|$ -|$:$-I$-|$-$-{$_-|$-|$$-]$+7 [$26,133|$0.231,$12,451|$0.110 |$38,584 |§$0.340}1 $-$:$-$-_|$-4$-$-|$-|]$Jf 8 $-|$:8 [$$26525)$0.233]$12,889)$0113]$39414)$0346778 -|$-$:$-_I$-1$-$-{$0 -y$-|$$-1$:_9|$26,923|$0.235|$13,342 |$0.1171 $40,265/$O352)/$-[$$-|§$-$-_I$-|$ys -|$"13.-|$$-|$:10 |$ 27,327/$0.238)$13,811 |$0.120)$41,138|$ O.358t)$-1S -$-$-_|$-|$$-|$-4$-|$$-1$:11 [$27,737|$0.240)$14,296]$0.124}$42033)$0.364)4 $-$:$ -[$-{$$ -]$_ -_=SJI$-|$-|3%-|$$-|$-12]$28,153]$0.242]$14,798 $0.127 |$42,951 $0.37071 $+s 718 -_{$-_.|$"18 -${$0 |S "18 $-|$_-13 |$28,5751 $0.245|$15,319|$0.1311 $43,894)$0.376]|$18 -|$_-_|$-48 -|§-§"18.18 -\$§-{$14]$29,006]$0.247 [§15,857/$0135 [$44.801]$0.382]|S -{$__-_4$-_{§-_{$=={8 Ld 8 "8 -\8 -|$$_-{$_15 |$29,439 $0.250)$16,414 |$0139]$45,853;$0389))/$-$-$-$e -|$:$-|$ -JS IS $-|$ _16 [$29,881 |$0.252]$16,991]$0.143 |$46,872 |$0.395 ||§-$-$-'I$-_|$-|$:$C-|$-|$-|$$e-Se17_|$30,329 |$0.255]$17,589;$0148 ]$47,917/$O402)/$-|$-I$-|$-|$ -I$-$-|$-4 $-|$$-|$: _18 |$30,784/$0.257]$18,207|$0.152]$48,991 |$0.409 ||$-$:$s CdS -_{3 -]$=TS $-3%$$-|$: _19 |$31,245|$0.260]$18847)$0157]$50092)$0416]]$:$e C$-$-_|$-]$ -4S -{$-|$-|$$8 ee20|S 34,714)$0.2621 $195091 $0.161]$51,223 |$ O424t PB -LS -$:$-|$_-1$:$$-|$-|$$-|$: 21 |S32190)$0.265}$20,195|$0.166]$52,385 |$0.431]|$$-$-$-_I$-|$-$_--I$-|$-|$$-{$0 -22 |$32,6731 $0.267 |$20,905;$O71 |$53,578|$0.439]|$-$-$-|$--4f$-|$-$-|$ -{$-|$$-|$- 23 |$33,163|$0.270]$21,640)$0176[$54,803)$0.446]|$-[|$-4f$:$-_|-|$=-|$-|$ =-[$8 $-|$:24 |$33,660/$0.273 $22,400]$0.182 $56,001 [8 0.454)|$-_18 -_|$__-I$-_|$-|$ fjS_SSS SLL 25 |$34,165!$0.276]$23,188;$0.187|$57,353/$0463//$-|$-|$$-_|$-|$%:$$B $§-|$:"26 |$34678/$0.278{$24003|$0.193]$5aos0|$o471||$s -|S -1s -/$-|$-{$ -_f]$._-|$-}8)is $e]27 |$35,198)$0.281]$24,847|$0198]$60,044 /$0.4791]$:$:$:$$-I$-]$0 YS :Is -|$-|$$-|$:28 J$35,726|$0.284 $225,720 |$0.204|$61,446;$0.488]|$:$:$$ -[S$$-1$-$-|$=J $-{$$-{1$- 29|$36,262 |$0.287 |$26,624 |$0210]$62,886|$0497}/$-|$-[$-$-_{$-|$:$-[$=[8 -|$$-1$: 30 |$36,806|$0.290]$27,5601 $0.217 |$64,365|$0.506 F |$:$.-S$-$-_|$-|$-$ -|$8 -1$$-{|$: -31_|$37358[80.292]$28529/$0223s 5880/$osis]|s -[s -{s -|[s -|s -[s-jis eis fs Ts $s -is 32 |$37,918|$0.295]$29,531)$0.230)$67,449;$O52517$-|$-|$:$-_|$-{[$_-JJ$LS $-|$$-|$: 33|$38,487|$0.298]$30,569|$0.237 |$69,056 |$0.535]1 $-$:$-$-[$-8.-$-|$-1$-1$$-1$:"34 |39004 $0301]$31,644]$0244/$70,708/$o5s5|}s -[s -[s -[s -Is -[s_-[is -[s [sis s (Ss35|s39,650/8_0304]$32,756/$0.251]87240018o5so]]s -[s -|s -[s_-|s -[s dis eis [ss seis 36 |$40,245|$0.307 |$33,907 |$0.259]$74,152 |$0.566 ||$:$:$243 I$-|$-$-|$-|$-1$$-|$- 37_|$40,848 |$0.310}$35,099}$0.267}$75,948|$OS7T7T]IS -$:$-$-_|$-|%$:$-|$-|$-|$$-1$: 38 |$41,461 |$0.313 |$36,333 |$0.275 |$77,794|$05887 S$ -Se OS -$-_|$-1$-$-|$-|$-|$$-{$+ 39 {$42,083 $0.317}$37,610;$0.283 |$79,693($$0599715 -|$-|S-[$ -[$-J$ -ft -|$-|$-|$$-{$: 40 [$42,7141 8 0.320 |$38,932 |$0.291 |$81,647 1 $0.611 $-1$-|$|$-$-|$-$-{$-1$-1$$-|$ New Koliganck Village Council Bulk Fuel Facility Business Operating Plan Page 18 of 26 TABLE B PARTICIPANT ALLOCATION Council NA NA Total Primary Capacity (Net)|_-Gallons a 158,400 a 0 0 158,400 Percentage 100.0%0.0%-0.0%-100% Initial Throughput |Gallons «=|SS -™-=éi0]|0 110,000 Volumes Percentage 100.0%0.0%0.0% -100% %Share of O&M and R&R on Common Assets 100.0%0.0%0.0%100% (based upon Primary Capacity) New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 19 of 26 TABLE C ANNUAL "O and M"SCHEDULE Rate Per Fringe Total Hourly Position Hour Rate Cost Duties Operator 1 a $17.32 20.00%$20.78 Maintenance Bookkeeper $ 17.85]-]20.00%||$21.42 Invoicing,Fuel Quantity Tracking - Facility Manager $17.00 20.00%$20.40 Manager,Denali Commission Reporting Annual O&M Costs: Labor Costs Participant Share Hours/Hourly Monthly Annual Council NA NA Labor:_|Month Cost Cost Costs Operating LaborOperator 16.8 $2400]}$40400]|[I Subtotal Operating Labor 16.8 7 7 $404.00 $s 4,848 $4,848 Zz Administrative Labor ee ee 0 --7 7 a 7 _7 Bookkeeper 4.0 $24.00 $96.00 Facility Manager 1.0 $30.00]1$30.00 ee es Subtotal Administrative Labor |5.0||||12600)|s 4512]|$1512] - Materials: _ee Materials &Equipment Rental $2,000 $2,000 Other Costs: __Training (lump Sum)$640 ||$of__AnnualInspection/Pressure Testing $1,400)|$1,400 Annual Off-Site Audit (Lump Sum)ee $1,000 $1,000 - Power/Electricity (Estimated based on current kWh rates)$1,500 $1500; oeInsurance ($.10 per gallon of thoroughput)$11,000]|$11,000 | Total Annual O&M Costs _$23,900 ||$23,900 |$-|$- New Koliganek Village Council Bulk Fuel Facility Business Operating Plan 7a r TABLE D 40 YEAR "0 and M"CASHFLOW Galton Inflation Rate Annual O&M Expense Assumed Throughput (Gallons)Per Gallon O&M Payment Council Year Council NA NA Total NA NA Council NA NA Dieset Gasoline Total 1 |[$ __23,900/$ --1$-8 =23,0001. -80,000 30,000 110,000 --L/s 0.217|§-|$- 2 s«4|s 24,259|$-|$-|$24,259]|80,400]30,150 |__110,550 --1]$0.219 |$-{8 - 3 $24,622|$-1$-|$24,622 |80,802 30,301 111,103 --}]$0.222|$-{8 - 4 8 24992 1 $SS 24992]|81,206 |30,452 |111,658 :-1 {8 0.224/$-JS - 5 $25,367|$-|$-|$25,367 |81,612 30,605 112,217 --F Ls 0.226 |$-{$- 6 $25,747|$-|$=|$25,747]|-_82,020 30,758 |__112,778 --|]$0.228 |$-{$- 7 Is 26,133 |§{8 [26133]]-82,430|30,921]113,342 --l|$0.231|/$-{$- 8 $26,525 |$-|$-|$26,525 82,842 31,066 |113,908 --|{8 0.233 |$-|$- _9 {$ _2923/$--(|$---[$_26,923}|83,257 |34,221|114,478 --T[s 0.235 |$-|s - 10 $27,327 |$-{$_=8 273277]83,673|31,377 |115,050]PB 0288S OS : 11 $27,737|$-|$-_--[$27,737]]84091 31,534 |115,625 --]]s 0.240 |$-|$- 120 828158 TS SL2 {8 _28153]]84,512]31,692 |116,204]:-|18 02421$=[Se 13 §28,575 |$-[$_=|S 28575]84,934|31,850]116,785]PS RS Ge14§29,004|$-|$-|$29,004 |85,359 32,010 |117,368 --118 ss oza7fp GB -15 $29,439|/$__-$ _-_-{$29,439 |85,786 32,170 |117,955 -$0.250 |$-{$s - 16 {8 29,881 |$-|$-[829,881 P|86215|32,330)118,545 PS 252TH17{$s 30329];$s -|S -|$30,329||86,646 32,492 |_119,138 --[/]s oass}s |fg | 18 $30,784 |§-|$ __-[$30,784]]87,079 |32,655]119,734 --1]$0257|/$ -|$- 19 s«(§31,245|$-|$-|$31,245].1 87,514]32,818 |120,332 :-}Js 0.260 |$-I$- 20 $31,714 |$-|$-|$31,714 87,952 32,982 |120,934 --}]$0262]-sd a ($s 32,190/$-|s _-[$32,190]]88,392 33,147|121,539,-|YS 0265/8 -|§ -- 22,18 32,673 |$|$-|$32,673]]-88,834|33,313 |122,146 ;-|1$0.267 |$-{$s - 23 $33,163 |$-|$-[$33,163|89,278 33,479 |122,757 |:_-7 18 0.270 |$-|$- 24 |g 33,660 |$-|$-Ts 33,660]|_89,724|33,647 |123,371 --I{s 0.273[8 -|$ -_2|s 3405/8 --|§-|$34165[]90,173 |33,815 |123,988 |;-${$0.276 |$-|s - 26 (|$34,678 |$-|$-|$34,678 90,624 33,984{124008] -|-«-J igs onze ts -27 $35,198|¢-|$-|$35,198 91,077 34,154 |125,231 --|is 0.281 |$-|$- 28 «($35,726 |$-|$-]$35,726 |91,532 34,325 125,857 |_--T1$0.284 |$-I$- 29 «(|S 36,2621 $-|$-|$36,262 91,990 34,496 |126,486 |:-|]$0.287 1 $-|$- 30s $36,806 |$-|$=|$36,8064]92,450 |34,669|127,118 |--}]$0.290 |$-{8 - 31 $37,358 |$-|$ __--|$37,358}|92,912 34,842 |127,754 --|]$0.292 |$-|$- 32.«|$37,918 |$-|§-|$37,918 93,377 |__35,016 128,393 -|_s-HY 0.295 |$-{$: 33s 38,487 |$-|$=|$38,487 93,843 35,191 129,035 -|ss -FS 0.298 |$-|$- 34 39,064 |$-|$=|$39,064 |-94,313 35,367 |129,680|=|_-[[$8 o301]§-{$- 35 $39,650|$=(8 -|$39,650 94,784 35,544 |130,328 :-}48 0.304 |$-_|$- 36 $40,245 |$-1$-[$40,245 |95,258 35,722 |130,980 --|{$._o307|/$-s- 37 $40,848 |$-[8 _--{$40,848]95,734 35,900 |131,635 -|-|1$0.310 |$-|$: _38 $41,461 |$-[$ss-4 $-4naoi |96,213 36,080 |132,293 --}]s 0313/$-|§ -- 39 $42,083 |$-|$-|$42,083]|96,694}36,260 |__132,954 --TI1$0.317|$-|$ -)4 |$42,7141 -1$-|$42,714 97,178 36,442 |133,619 .Eds 0.320 |$-{8 - New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Paen TABLE E 40 YEAR "R and R"SCHEDULE Cost Allocation Year of Present Day Inflated Council NA Activity R&R Activity Value Value 5 Electrical Upgrade 1,700 }}$1,804 $1,804 $- Repair Pumps 1,771 [J 1,880 1,880 = 10 Fence/Gates Upgrade 5,397 [|$6,171 $6,171 $- Erosion Control of Pads 1,820 2,081 2,081 - Repair Steps &Landings 581 664 664 - Repair Truck Fill Station 1,914 2,189 2,189 - Repair/Maintenance Dike 721 825 825 - Pump Replacement 10,171 11,630 11,630 - Valve Replacement 2,986 3,414 3,414 - Repair Dispensing Equipment 3,900 4,459 4,459 - Repair Pipelines/Headers 2,843 3,250 3,250 - Electrical Upgrade 1,700 1,944 1,944 - 1ixternal Tank Inspection 5,700 6,517 |]$_6,517 a 15 Electrical Upgrade 1,700 |]$2,094 $2,094 $- Repair Valve/Pump 1,771 |]2,182 2,182,- 20 Fence/Gates Replacement 17,036 |]$22,606 $22,606 $- Resurface Pad 9,641 12,793 12,793 - Repair Steps &Landings 581 7710 770 - Pump Replacement 10,171 13,497 13,497 - Valve Replacement 2,986 3,962 3,962 - Replace Dispensing Equipment 23,800 31,581 31,581 - Major Electrical 13,300 17,648 17,648 - Extemal Tank Inspection _-s}5,700 |]7,564 _.7,564 a 25 Electrical Upgrade 1,700 ||$2,430 $2,430 $- |JRepair Pumps TAY 2,532 ____2,532 _- 30 Fence/Gates Upgrade §,397 ||$8,311 $8,311 $- Kirosion Control of Pads 1,820 2,803 2,803 - Repair Steps &Landings 581 894 894 - Repair Truck Fill Station 1,914 2,948 2,948 - Repair/Maintenance Dike 721 1,111 1,111 - Pump Replacement 10,171 15,663 15,663 - Valve Replacement 2,986 4,598 4,598 - Repair Dispensing Equipment 3,900 6,006 6,006 - Repair Pipeline 2,843 4,378 4,378 - Electrical Upgrade 1,700 2,618 2,618 - ____.._||Extemal Tank Inspection 5,700 ||__8,778 ___8,778 - 35 Electrical Upgrade 1,700 |]$2,820 $2,820 $- Repair Pumps 1,771 |2,938 2,938,_ 40 Replace Foundations/Lainers 42,371 1)$75,726 $75,726 $- Kence/Gates Replacement 17,036 30,446 30,446 - Resurface Pad 9,641 17,231 17,231 - Replace Steps/Iandings 6,086 10,876 10,876 - Pump Replacement 10,171 18,178 18,178 - Valve Replacement 2,986 5,336 5,336 - Replace Dispensing Equipment 23,800 42,536 42,536 - Major Electrical 13,300 23,770 23,770 - Replace Pipelines 46,385 82,900 82,900 - Replace Tanks 341,785 610,841 610,841 - 686,125 ||$1,148,193 $1,148,193 $- New Koliganek Village Council Bulk Fuel Facility Business Operating Plan €oc TABLE F 40 YEAR RENEWAL AND REPLACEMENT CASHFLOW Village Inflation Rate:J:Initial Cost per gallon ($/gallon): Reinvestment Rate :20 Year R&R:Annual increase : 20 Year Loan Proceeds:|$:Village Initial Throughput (gallons):NA NA Initial Throughput (gallons):Initial Cost per gallon (§/gallon): Loan Rate:NA Initial Throughput (gallons):Annual increase : Loan Term:NA Initial Cost per gallon ($/gallon): Annual increase : R &R Fund Balance Assumed Throughput (Gallons)Per Gallon Payment Beg.of Annual Deposit Tnterest End ofYearYor .Principal Debt Service Renewals/Earnings (Net Year Village NA NA Village NA NA Balance Village NA NA Total Received Replacements of Fees)Balance 1]{$-$10,120/$--/$-|$10,120,$-4$-]$_10,120 __110,000 |-:$0.092 |$-_]$_- 2448$10,120 $10,476 |$-|$__-{|$10,476 $-|$304/$20,899 110,550 |-|-$s «0.0951 $:$: 3 |S$20,899]10,844|$-[$-1$10,844 _|_ $-+$627|$32,370 111,103}-$0.098|$-_|$: A $32,370 |$11,225|$-|$_7 I$11,225 $-_-J S$OTL $44,566 111,658 -[-$0.101 |$:$: 5 1s 44,566 ]$11,620 |$-|$-|$11,620)8841,226 $53,728 112,217 |::$0.104 |$-$: G6 PS53,728]$ 12,028/$ -|$-|$12,028 $-]$1,612]$67,368 fF |112,778 |ee ee $0.107|$:$e 7148 67,368 |$12,451|$-/$-|$12,451]00 $-{$2,021 |$81,840 ___113,342 |::$0.110 4 $-$: 8 [1S 81,840 ]$12,889 |$-|$-|$12,889 a $-|$2,455 |$97,184 __113,908|-:$0.113 |$-_|$- 9 TI8 97,184 |$13,342 |$-|$-|$13,342 $7 4$2,916|$113,441 114,478 |en!$O.117]$=-_I$: 10]|S 113,441 ]$13,811|$-|$-|$13,811 $43,143 1/$2,109 |$86,217 115,050 -:$0.120 |$:$e At $86,217|$14,296|$_-1$_-|$14,296 . $-|$2,587 |$__103,100 115,625 |::$0.124 |$-$- 12 $103,100|$14,798 |$-[$_-1$14,798 $-[$_3,093 ]$120,991}|116.204)et $0.127 |$_-_|$: 13][$120,991 |$15,319|$=-|$-|$15,319]_$-|$3,630]$139,940 116,785 -]ee $0.131 |$-_|.: 14 $139,940]$15,857 /$-|$15857,-|$4,198 |$159,995 17,368[-|1$0.135|$:$- 15 $159,995 ]$16,414 $-{$_-|$16,414 ft $4,276 |$4,672 |$176,805 117,955]ee $0.139|$-$e 16 $176,805 |$16,991 |$-|$-|$16,991,_|$-|§$5,304]$199,101 118,545 |-:$0.143 |$_-$- AZ $199,101 |$17,589|$-1$-|$_17,589 $ __s-h 5,973 |$222,663 f 4)119,138]ede $0.148 |$-_|S - 18 $222,663 |$«18,207 |$-|$-|$18207,| $-|$6,680 |$247,549 119,734 -Jo ee $0.152|$:$e 19 $247,549 |$18,847 |$-{$-|$18,847 $-/|$7,426 |$273,823 120,332 |:-$0.157|$:$e 20 $273,823|/$19509/$=-|$-/$_19,509]$66,253 $-110,42421 $4,902 |$254,066 __120,934]oe $s.O161/$ -I$: 21 $254,066 |$20,195 |$-|$-[$20,195;sd SS 8,790 |$-|$7,622 |$_273,093 121,539 -$0.166|$_:a : (22 $273,093 |$20,905|$-|$-({$20,905 $8,790 |F -|$8,193 |$293,401 |122,146 --/7 8 0.171 [$:$- 23 $293,401 |$21,640 |$-|$-{$21,640]SL 87901$ --1$8802]$315,053 122,757 |-[ee $0.176 |$-$: 24 $315,053 |$22,400|$-|$-|$___22,400 {$s 8,790 |$-[$9,452]$338,116 __123,371]:-$0.182 |$:$: 25 |[$338,116 ]$23,188|$-{|$FS 23,188 __|$8,790 |$4,962|$9,995 1$357,546 123,988 |ee ee -$0187]$=-IS : 26,|$ 357,546($24,003 |$-|$-|$24,003 [$8790 4$-|$10,726}$383,486 124,608 fo $0.193 |$_-_|§: 274 1$383,486 |$24,847|$-|$-|$24,847 $s 8,790 |$-|$11,505]$411,048 _125,231||af -$0.198 |$_-_4|$: 287 78 411,048 ]$25,720 |$-|$-|$25,720 _ 4s 8,790 |$-]$12,331 |$440,309 125857]-$0.204 |$:$- 29 $440,309 |$26,624 |$-|$-|$26,624 $8,790 |$-]$13,209]$471,353][126,486 -:$0.210 |$-$- 30]|$471,353 7 $27,560 |$-|$_-|$27,560_I$8,790 |$58,108}$12,397 |$444,413 127,118 - - :$0.217 |$-$- 31]{$444,413 [$28,529|$-1$-|$28529]$=$13,332 |$486,274 127,754)-:$0.223|$:$- 321 1 $__486,274 |$29,531 |$-|$-($29,531 __ $ |$_14,588 ]$530,393}J128,393 |i -:$0.230|$-$: 33 1 |$_530,393 |$30,569 |$-|$_-|$30,569]$-|$15,912 |$576,874 129,035 |::$«0.237|$.$- 34478 576874/$31,644 |$-|$-|$31,644 _ $-|$17,306 |$625,824 129,680 -s $0.244 |$-_|$: 35][$_625,824)$32,756|$-|$-|$32,756 _ $5,759 |$18,602 |$671,424 130,328 |_::$0.251|$-$- 36]|$_671,424]$33,907 |$ae)-|$33,907 |$-|$20,143 |$725,474 130,980|:-$0.259|$-$- 37 $ 725,474|$35,099 |/$so -|S -|$_35,099 ft.ae)-|$21,764]$782,338 131,635 --$0.267|$:$- 38 $782,338 |$36,333.|$-{$-|$_36,333 $-|$23,470 |$842,141 132,293 |_-:$0.275 |$:$: 39 $842,141]$37,610|$-|$-|$37,610 $-|$25,2641 $905,015 132,954 |:$0.283 |$-_|$- 40}[$905,015]8 38,932!§-1$-'$38,932 $917,840]$-[$26,107 133,619 --||s 0.291 |§-_[s New Koliganek Village Council Bulk Fucl Facility Business Operating Plan74n'"2° TABLEF -PAGE 2RandRParticipantPaymentSchedules Village NA NA R &R Fund Balance R &R Fund Balance R &R Fund Balance Beg,of ae Interest Beg,of Interest 7 Beg.of .Interestvee|pam |RY |asec]teen famine]Tout [PSY ver J ml |fae Poateserce|Sere foaming ie]Tor YY vee |mel |pomoes |De |eer eames |ToBalanceofFees)Balance of Fees)Balance (Net of Fees) $-|10,120 {$s -[$_10120][4 [$s -|$$-|$-Ha js -js-|i$- $10,120|/$10,476 $304 $20,899 |]2 I$-_|s -$-|s$-|[_2 [s_-is -|$-|$: $20,899 |$10,844 $627 |$32,370],3 |$-i$:$-|$___-3 ss :$-|$: $32,370 [$11,225 $971 |$44,5007 4 1$-|$:$-|$-]}]4 [Is -[$s -__$-|$: $44,560 /$11,620 3,684[$1,226 |§53,7281 5 $s -|$:$-_|$18 -|f 5 [$_-[$s :$-_\$-|$: $53728/$12008/==|_|..__{[$__1612 |$67,308 ff 6 |$=-/$:$-\$-jf_o f$ -[$ - _ $-|$: $67,368 |$12,451 ;$2021/5 sist]7 |s -|$:$-|$-}_7 [$_-|$$-|$: $81,840 |$12,889 $ 24551$97,1841 8 $$-{ __ $-|$-j}_8 [$s -[$s :5 -{$: $97,184 |$13,342 $20 |$34 ff 9 Ts-[s--fo |$-|$-|]}9 [$s -[$s $-|$: $113,441 |$13,818 43,143 1$2,109 |$86,217 |]10 1 -(8 -$-|8 -|$-fp to 78-[$s 7 s -_|$-1$- $86,217 |$14,296|- $2587/1 $103,100 ]f 11 1 $-i$:$-{$ius -/$$-|$- $103,100;$14,798 __{[$3,093}$120,991 Jf 12 [$s -_|$_:$-[$24s -[§$-{$: $_120,991 |$_15,319 $3,630 |$1399401]13 FF -OLS - _;a eel |Oca &eee 1 2 $"1s 2 $139,940]$15,857 $4t98/$159995 ]7 144 7$ -1s |on |s -[$l4 ts -|$$-|$: $159,995 |$16,414 4,276 |$4,672 |$176,805 |]15 TS -|$$-_|$-|$415 ]$ -[$ -|=|is -_|$-|$: $176,805 /$16,991|$5,304 /$199,101 |]16 F$-|$:$-|$i6 [$s -|§ ; $-|$: $_199101/$17,589,_$5,973 |$222603]]17 |$=-1$$-|$17 |$_-|$:$-|$: $222.663 |$18,207|__[$__6080|$247,549]]18 f$-iS]eS -]18 1S -/$$-|$: $247,549 |$18,847 $7,426 |$273,823 |]19 |$-|s ||s _-|s -JP 9 fs se $-|s $273,823}$19,509 |$66,253 110,421 |$4,902 |$254,066 J]20 |$-{$s -|$-$-|$-|$-|]20 [$es ee ee -ls -|$: $254,066 |$20,195 $3,790 $7,622 |$273,093 J]2t |$-_|$:$:$-|$-j]2178 -[s :$:$"1$: $_273,093 /$20905;|$__8,790 $8,193 |$293,401 |]22 |$-_|§-$:$-|$-}]22 1s -/$:$:$-|$:$293,401 ;$21 640 |_[$879]$8,802]$315,053 ]]23 Js -LS Se ee eS SE SS |Gc :$-|$:$315,053 |$2400 -$8790 $9,452 |$338,116 I}24 1 $-_|$$tL $-|$-|]24 [8-1 ak $-|$ $338,116 |$23,188 $8,790 4,962 |$9,995 |$357,540 |]25 |$-|$:$-|$-i$-|$-}]25 7$§§:$-|$-_|$-|s : $357,546 |$24,003 $8,790 $10,726 |$383,486 ||20 |$-|$_$:$-|$-}]26 78 -I$:$:es :ee :1S 383,486 /$24817;=|[$-8790|sid[$11,505 |$4101s]27 |s -S$$:$-|$-]]27 18 -js $:$"1$: [$411,048 |$25,720 $8,790 $12331 |$440,309 |]28 |$-_|$:$:$-|$-f]28 1$-[S$:$:$-|$: [$440,309 |$26,024 $8790;sf§£3,200 |$471,353 FF 29 JS -S$Se 9S C-$C $$$-|$-$471,353 ($27,560 $8790|-«58,108 |$§12,3907 |$444413]30 1S -S$:$-|$-i$-|$-}]30 ]$ -[$s $-|$$-|$: $444,413 [$28,529 $13,332 |$486,274 ff 31 |$-|$-$-|$-f]3178 -j§fo $ca): $486,274 |$29531 of 8 14,588 |$530,303 32 Js LS Se ee |et -{$ s-f 32 Js -is ls s : $530,393|$30,569 $15,912]$576,874 |]33 1S -_|$7 - $-{$-H 33:$-{§$$$376,874 |$31,644 |$17,306 {$625,824]f 34 |$-|$-}-|$-f]3478 -Us $-{§: $_625,824 |$32,756|_5,759|$__18,602 {$_671424 Fy 35 15 $-ee ee en a nee |ee $-4$-{$2 $671,424 1$33,907 $20,143 |$725,474 |$=[$s ef ds -|$-H 36 JS -S$ : $-|$: $725,474 |$35,099 _$21,764 |$782,338}]37 {$=- =[$$-|$-f]37,]$_-Js $-|$ $782,338)$36,333 $23,470 (/$842,141 |]38 [$-|$: _ $-{$YP 38 ys -se .j$|S: $8421411 $37,610][8 25,264 |$905,015 ff 39 [$s-S$:$-|$-j]|39 1s -[$s -|$-|$: $905.015 |$38,932|917,840 |§-|§26,107 ff 40 fs $-|$:§-l$-|$-{]40 [s -|$-l$$-|$$ New Kohganek Village Council Bulk Fuel Facility Business Operating Plan 2 2 New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 25 of 26 TABLE G Loan Schedules Year 20 R&R Loan -Village (8;789.62) Beginning Principal |Ending Year Balance Interest Payment |Payment |Balance 1FS 6625289 ]$3,643.91]($8,789.62)]$5,145.71 |$61,107.172_|$6110717 )$3,360.89 |__($8,789.62)$5,428.73 |$55,678.443$55,678.44 |$=3,062.31 |-_($8,789.62)|$5,727.31 |$49,951.144|$_49,951.14 1$2,747.31 |_($8,789.62)|$6,042.31 |$43,908.835|$43,908.83 |$2,414.99 |($8,789.62)|$6,374.64 |$37,534.196|$_37,534.19]$2,064.38 |_($8,789.62)|$6,725.24 |$__30,808.95_7 _]$30,808.95 |$1,694.49 |__($8,789.62)|$__7,095.13 ]$_23,713.828$23,713.82 |$-1,304.26 |($8,789.62)]$7,485.36 |$16,228.459|$__16,228.45|$892.56 |_($8,789.62)$7,897.06 |$8,331.4010$8,331.40 |$458.23 ($8,789.62)|$8,331.40 |$(0.00) $21,643.34 ($87,896.23)$66,252.89 . Statement ofQualification 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 chatt. 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. New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Page 26 of 26 NEW KOLIGANEK VILLAGE COUNCIL Community History Koliganek 1s located on the left bank of the Nushagak River and is 65 miles northeast of Dillingham. The village currently shares a zip code with Dillingham,but hopes to get its own.Koliganek is located in the Bristol Bay Recording District.The area is in a climatic transition zone.The primary influence is maritime,although a continental climate affects the weather.Average summer temperatures range from 37 to 66 F;and winter temperatures range from 4 to 30 F. Koliganek is an Eskimo village and was first listed in the 1880 Census as "Kalignak.”The name is local,recorded by the U.S.Geological Survey in 1930.Since then,the village has moved four miles downstream from the original site.Koliganek is a Yup'ik Eskimo village with Russian Orthodox practices.Subsistence activities are an important part of the lifestyle.Koliganek is unincorporated, so there are no city or borough "officials”in the community. The village organization and school provides most of the year-round employment.In 2009,18 residents held commercial fishing permits.Many residents trap and subsistence activities are an important part of the economy.Residents are employed in sales,clerical,management,professional, production,transportation and service occupations.The town center contains the school,health clinic,two general stores,fuel storage,power generation building and the village council building. The Village Council IGAP program operates a recycling center. Koliganek has operated a piped system for over 25 years.Water is derived from a well and is treated.Thirty-three homes and facilities are connected to the piped water and a community septic tank.Eight homes have individual wells and septic systems.Fifteen homes haul water and use honeybuckets.Koliganek purchases power from the school district and also owns its own generator. For transportation,boats and ATVs are used in the summer and snow machines are used in the winter.A state-owned 3,000'long by 75'wide runway is available.Locals travel to New Stuyahok frequently.There are no docking facilities;goods are lightered from Dillingham. Description of Business History New Koliganek Village Council has successfully administered and operated a wide variety of community,social and economic development services.The following table lists the Council's programs and services: New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Appendix A-1 CURRENT SERVICES Social Programs:Health Clinic IGAP Program VPSO Program Tribal Children Services Worker Program AmeriCorps Program Community Services:|Bulk Fuel Operations Electric Utility Operations Water &Sewer Systems Solid Waste System Refuse/Landfill Systems New Koliganek Village Council has been retailing bulk fuel to Koliganek residents for the past 10 years.They provide approximately 35-40 households with heating fuel.Residents also purchase gasoline from the store for their outboard motors,ATVs,snow machines and other small gasoline equipment.Fuel is delivered to customers without transportation such as elders and senior citizens, otherwise,customers bring their own containers to be filled.Customers are generally required to pay cash for their fuel purchases;therefore,customers are seldom allowed to charge their purchases. Collection rates have averaged 98%. In 2010,residential customers are paying $5.50/gallon for diesel #1 and $6.00/gallon for gasoline; while non-residential customers are paying $6.50/gallon for diesel #1 and $7.00/gallon for gasoline. Total gallons of fuel sold/used in fiscal year '09 was approximately 60,000 gallons of diesel #1 at $4.50 and approximately 30,000 gallons of gasoline at $5.00/gallon. The New Koliganek Village Council purchases barged bulk fuel from Delta Western.Heating fuel and gasoline are purchased on June 1st of each year.In June 2010,70,000 gallons of diesel #1 and 26,000 gallons of gasoline were purchased. Description of Fiscal Controls and Accounting Procedures The New Koliganek Village Council operates on a October through September fiscal year and uses QuickBooks for its accounting.An audit for the year 2007 is being conducted by Altman Rogers & Co. The Tribal Administrator reviews all check requests submitted by staff.A copy of the check is attached to the supporting documents and filed at the Council office.Village Council officers have the authority to sign checks and each check requires two signatures. New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Appendix A-2 New Koliganek Village Council Management and Structure The New Koliganek Village Council consists of a five-member Council,including officers,and President,Herman Nelson,Sr.Members of the Council are listed below. NEW KOLIGANEK VILLAGE COUNCIL MEMBERS Herman Nelson,Sr.,President Nick Johnson,Sr.,Vice-President Gus Tunguing,Jr.,Secretary[Treasurer Robert Larson,Member Anuska Wisocki,Member Day-to-day operations are managed by Herman Nelson,Sr.The organizational chart below shows the relationship between the various components of the Council's overall structure. New Koliganek Village Council Organizational Chart New Koliganek Village Council Members Herman Nelson,Sr. President Mary Lou Nelson |_| Tribal Administrator I I I J l Bulk Fuel ||IGAP Program||Electric Utility]|VPSO Program |}TCSW ProgramOperationsOperations John Norbert Gas &Fuel Operater Identification of Key Personnel The New Koliganek Village Council has operated the bulk fuel tank farm operations and retail sales since 2000;and,with the current staff,will be able to meet the staffing requirements of the upgraded bulk fuel facility.The facility will have overall direction from the Council's President,Herman Nelson,Sr.With the assistance of the Tribal Administrator,Mary Lou Nelson,he will provide financial management,budgeting and reporting for the Bulk Fuel Facility.Mr.Nelson will be involved in the project from the beginning and is the main contact for the Council.He will work with the AEA and Denali Commission to ensure the Council's role in the project timeline.See his attached resume. New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Appendix A-3 Mary Lou Nelson will assist the President,Herman Nelson,Sr.with the financial aspects of the project.As tribal administrator,she is responsible for payroll,accounts payable and accounts receivable as well as assisting the Council's President and the bulk fuel operator,John Norbert,with program budgeting,tracking expenses and preparing project financial reports.See her attached resume. The New Koliganek Village Council will operate and maintain the Bulk Fuel Facility.John Norbert, Maintenance and Operations,is the Operator of the Council's existing bulk fuel tank farm and reports to the President.Under his supervision,John Norbert is responsible for the facility's overall management and operations.His position will remain the same with the new Bulk Fuel Facility.See his attached resume. Organization of Bulk Fuel Management and Operations The following chart illustrates staff relationships for the New Koliganek Village Council bulk fuel facility: Bulk Fuel Facility Staffing New Koliganek Village Counal Members Herman Nelson,Sr. President - Mary Lou Nelson Tribal Administrator John Norbert Maintenance &Operations Staff Training Needs President Nelson has suggested that Mary Lou Nelson,Tribal Administrator receive QuickBooks training.At this time,no other training and/or technical assistance needs have been identified for the management and employees of New Koliganek Village Council. Proposed Training Plan The New Koliganek Village Council will utilize training resources available through the AEA and the Alaska Vocational Technical Center to ensure proper training of its personnel.The Alaska Energy Authority has developed a series of courses relating specifically to Bulk Fuel operations and business management.The operations courses are taught through the Alaska Vocational Technical Center (AVTEC)in Seward and the business courses are taught in Anchorage: New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Appendix A-4 Contacts Training Program Manager,Alaska Energy Authority/AIDEA Address:813 West Northern Lights Blvd.,Anchorage,Alaska 99503 Phone:(907)771-3026 Fax:(907)771-3044 Web Address:www.aidea.org/training.htm 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 Cost AEA will pay for transportation to and from your community to the Alaska Vocational Technical Center (AVTEC)or other AEA training location as well as lodging and meals. Furthermore,while at AVTEC the state will pay for tuition,deposit,room and board and training related materials. Currently,the primary bulk fuel training provided by the AEA is: Bulk Fuel Operator Training -This course provides the knowledge and skills necessary to safely operate and maintain a bulk fuel storage facility,while complying with state and federal laws.The program includes bulk fuel storage facility construction,facility operations,tank farm inspection criteria,facility maintenance,inventory control,tank farm safety,spill detection and spill response planning. Itinerant Bulk Fuel Training -This course is a follow-up to bulk fuel operator training.An instructor travels to communities and provides on-site training for previously-trained Bulk Fuel Operator students.Training activities include an initial inspection of the tank farm,identification of operation and maintenance needs,hands-on-repair and replacement of minor maintenance items and additional on-site training as necessary.Training for reporting requirements is provided as well, if needed. Bulk Fuel Business Training -This course includes interactive discussions and hands-on activities utilizing forms and exercises developed with information from the bulk fuel facility business plans. Participants will be trained on all the reporting and bookkeeping requirements of the business plan and evaluated by the training instructor. Follow-up Business Training &Technical Assistance -Follow-up training and technical assistance is available to participants following the bulk fuel business training.A business consultant travels to communities and provides on-site training and technical assistance in a variety of areas including,rate-setting,accounting,bookkeeping business operating plans,budgeting and more. New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Appendix A-5 RESUMES/JOBS DESCRIPTIONS New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Appendix A-6 Herman Nelson,Sr. New Koliganek Village Council P.O.Box 5057 Koliganek,AK 99576 newkgkvc@hotmail.com Current Employment Previous Employment New Koliganek Village Council 1998 -Present President Manages day-to-day operations of the Village Council.Manages staff for all departments of the Village Council.Reports to the Council and meets regularly with them regarding Village Council business. Supervises operations and maintenance of the bulk fuel tank farm, places bulk fuel orders. Koliganek Village Council Self-Employed New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Appendix A-7 Mary Lou Nelson New Koliganek Village Council P.O.Box 5057 Koliganek,AK 99576 newkgkvc@hotmail.com Current Employment Previous Employment Education/Training New Koliganek Village Council 1/12/09 -Present Tribal Administrator Responsible for day-to-day office and clerical work;accounting and financial management including customer billing,bookkeeping, accounts payable,payroll and preparation of required fuel sales and other local,state and federal reports,coordinate and oversee year-end financial reports,local,state and federal tax filings.Updates Council on a regular basis,oversees administrative in departments the power plant and the bulk fuel tank farm operations. BBNA Head Start 7/12/04 -9/05 Administrative Support II Data entry in Child Plus Program for all children and families,which included:child applications,enrollment forms,family income, volunteer forms and health reports.Prepared child files and programs for subsequent year.Tracked all supply and check requests as well as purchase orders.Prepared travel arrangements for office staff.Organized monthly newsletters and bulk mailings.Screened and routed incoming mail,faxes and phone calls.Recorded minutes at council and management meetings.Managed room rentals. Nushagak Cab 2002 to 2005 Cab Driver Alaska Ocean Seafoods 2002 to 2003 Processor Koliganek Cooperatives 2001 to 2002 Clerk Southwest Regional School District 2000 to 2001 Receptionist 1999 University of Alaska Fairbanks,General Studies 1998 -99 Prince Wm Sound Community College,General Studies 1998 Koliganek High School,Diploma Awarded New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Appendix A-8 New Koliganek Village Council P.O.Box 5057 Koliganek,AK 99576 newkgkvc@hotmail.com John Norbert Current Employment New Koliganek Village Council,Bulk Fuel Facility February 2009 -Present Maintenance and Operations Performs maintenance and operations duties for the bulk fuel tank farm;maintains and inspects all equipment;works with and coordinates efforts with fuel barge crew to receive fuel,orders and repairs items as needed. Partial Previous Employment: 2009 Dillingham Construction Truck Driver/Operator 2008 -07 NKVC BIA Road Project Truck Driver/Operator 2006 City of Dillingham Truck/Heavy Equipment 2005 NKVC Road Upgrade Truck Driver/Operator 2004 Dillingham Construction Truck Driver/Operator 2003 NKVC Road Upgrade Truck Driver/Operator 2003 City of Dillingham Truck/Heavy Equipment 2002 Collins Construction Carpentry Head Start Building 2001 Brice Inc.Truck Driver Cleanup,Amchitka 2000 NKVC Water Upgrade Laborer 1999-2000 BBHA Carpenter/Laborer 1999 Nuna Contractors Laborer/Operator HUD Home Project Education/Training 2002 CDL License 1983 Dillingham High School Diploma 1985 -86 Fort Simcoe Job Corps Heavy Equipment White Swan,WA Operator Certificate New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Appendix A-9 NEW KOLIGANEK VILLAGE COUNCIL JoB DESCRIPTION BULK FUEL FACILITY MANAGER Exempt (Y/N):No Salary: Division:Bulk Fuel Location:Koliganek Employee:Supervisor: Approved By:N/A Date: SUMMARY:Plans and directs activities of Bulk Fuel 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 New Koliganek Village Council, 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 the New Koliganek Village Council with annual report of operations to the Denali Commission and other required reporting. Implements the spill response and related regulatory plans and ensures 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 bulk fuel facility industry,and devises other means of securing maximum efficiency of personnel and equipment. Directs maintenance of property records and upkeep of equipment and structures. New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Appendix A-10 Job Description Bulk Fuel Facility Manager Page 2 SUPERVISORY RESPONSIBILITIES: Directly supervises employees in the Bulk Fuel 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 Expertence.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. New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Appendix A-11 O&M and R&R Cost Estimate APPENDIX B:O&M AND R&R CosT ESTIMATE LCMPF Proj 10-407 CONSTRUCTION COST ESTIMATE BULK FUEL OPERATION /MAINTENANCE &REPLACEMENT /RENEWAL COSTS NEW KOLIGANEK VILLAGE COUNCIL TANK FARM KOLIGANEK,ALASKA PREPARED BY:PREPARED FOR: LCMF Ilc Alaska Energy Authority 615 East 82nd Ave 813 West Northern Lights Blvd. Anchorage,AK 99518 Anchorage,AK 99503 (907)273-1830 (907)273-1831 FAX June 18,2007 Native Village of Koliganek Bulk Fuel Facility Business Operating Plan Appendix B-1 NOTES REGARDING THE PREPARATION OF THIS ESTIMATE These Operation /Maintenance and Replacement /Renewal costs are based on the Koliganek Bulk Fuel Upgrade Conceptual Design Report dated July 10,2007 prepared by LCMF llc of Anchorage,Alaska and do not include costs that could incur due to unexpected events such as natural disaster,vandalism,etc. Each work item is priced using "Force Account"local labor with exception of major testing,replacement,etc.which are priced using outside consultant/ contractor rates,per diem,and travel costs."Force Account"labor rates are assumed as an average hourly rate for each village scenario. O&M costs are established on yearly basis in 2010 dollars and should be projected to the initial 40 years of the facility using appropriate inflation factor over next 40 years. Renewal costs are based on repairing tank farm equipment every two to eight times over 40 years. Replacement costs are based one to four times over 40 years. Please note that this report excludes all work to existing fuel systems including O&M and R&R costs for work not related to the bulk tank farm. ESTIMATING ASSUMPTIONS Operation/Maintenance Costs:All costs are on yearly basis for one time event only. 0 5 10 15 20 25 30 36 40 Years:||||||||| I ||i T 1 1 T 1 Renewal/Replacement Costs:Total cost column represents one time event only.Years in parentheses indicate number of times to be renewed/replaced. Therefore,the Business Plan should apply the total dollars and multiply by the number of times item will be renewed or replaced over the next 40 years. New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Appendix B-2 SUMMARY TOTAL COST One Time Cost (In 2010 Dollars) A.Operations &Maintenance Costs (Yearly)17,000 x 40 Years =$680,000 B.Renewal Costs (Over 40 Years)See Business Plan Table C.Replacement Costs (Over 40 Years)See Business Plan Table TOTAL O&M AND RENEWAL/REPLACEMENT COSTS (2005 DOLLARS):See Business Pian NOTE:Items B and C costs are for multiple events over 40 years period.See Business Plan Tables for actual costs including inflation factor and number of occurrences/event. New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Appendix B-3 QUANTITY MATERIAL LABOR EQUIPMENT A.Operations &Maintenance Costs (Yearly)No.of Unit Unit Cost MH Total Cost Unit Cost TOTAL Units _|Meas Price $Unit Hrs Rate $Price $$ NOTE:These projections are based on the Council bulk tank farm comprising of (4)30,000 gallon bulk tanks (1)10,000 gallon diesel dispensing tank, (1)10,000 gallon gasoline dispensing tank,and (1)1000 gallon generator day tank with fill and dispensing lines and pumping systems,and (total shell capacity 121,000 gallons). All costs are projected on yearly basis using local labor and construction equipment rented from local resources. 1.GROUND MAINTENANCE Annual common ground maintenance 12 Mos 10.000 120.000 24.00 2,880 2,880 SUBTOTAL 1.GROUND MAINTENANCE (YEARLY):2,880 2,880 2.TANKS,PIPELINES AND INSPECTIONS Fuel delivery,102,327 gallons annual 1 LOT 32.000 32.000 24.00 768 768 Perform minor repairs,replace faulty valves and gauges (1 time/year -7 tanks -25 valves)1 LOT 1500.00 1,500 40.000 40.000 24.00 960 2,460 Annual inspection/pressure testing (7 tanks,3 pumps) (1 time/year)1 LOT 500.00 500 10.000 12.000 75.00 900 1,400 Consumables,spill response &Safety equipment truck fill station,3 pumps and 25valves) (1 time/year)1 LOT 300.00 500 10.000 10.000 24.00 240 740 SUBTOTAL 2.TANKS,PIPELINES,ETC.(YEARLY):2,500 2,868 5,368 3.OTHER COSTS Operator training 1 EA 8.000 8.000 80.00 640 640 Administration -clerical 12 Mos 4.000 48.000 24.00 1,152 1,152 Supervision 12 Mos 1.000 12.000 30.00 360 360 Annual audit (in Anchorage)1 EA 6.000 6.000 100.00 600 600 Tankage insurance (throughput)60,000 GAL 0.10 6,000 6,000 SUBTOTAL 3.OTHER COSTS (YEARLY):6,000 2,752 8,752 New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Appendix B-4 QUANTITY MATERIAL LABOR EQUIPMENT A.Operations &Maintenance Costs (Yearly)No.of Unit Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas Price $Unit Hrs Rate $Price $$ SUMMARY (YEARLY) 1.GROUND MAINTENANCE $2,880 2.TANKS,PIPELINES AND INSPECTIONS $5,368 3.OTHER COSTS $8,752 TOTAL IN PRESENT DOLLARS/YEAR:$17,000 New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Appendix B-5 QUANTITY MATERIAL LABOR EQUIPMENT B.Renewal Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units _|Meas Price $Unit Hrs Rate $Price $$ 1A.FENCE Repair 8'0"fence and gates (at 10 and 30 years -2 times)550 =LF 3.75 2,063 0.250 137.500 17.85 2,454 1.60 880 5,397 1B.PADS,DIKES,ETC, Erosion control of pads (at 10 and 30 years -2 times)2,400 SF 0.30 720 0.010 24.000 17.85 428 0.28 672 1,820 Repair steps and landings 60 SF 5.00 300 0.150 9.000 17.85 161 2.00 120 581 (at 10,20 and 30 years -3 times) Truck fill station minor repairs (at 10 and 30 years -2 times)1 LOT 1500.00 1,500 12.000 12.000 17.85 214 200.00 200 1,914 Dike minor maintenance (at 10 and 30 years -2 times)5,100 SF 0.03 153 0.004 20.400 17.85 364 0.04 204 721 SUBTOTAL 1A &B.FENCE,PADS,DIKES,ETC.:4,736 3,622 2,076 10,433 2A.TANKS Replace pumps (at 10,20,30 and 40 years -4 times)4 EA 2000.00 8,000 8.000 32.000 17.85 571 400.00 1,600 10,171 Repair pumps (at 5,15,25 and 35 years -4 times)4 EA 200.00 800 8.000 32.000 17.85 571 100.00 400 1,771 Replace miscellaneous valves and gauges (at 10,20,30 and 40 years - 4 times -3 tanks /15 valves)1 LOT 2500.00 2,500 16.000 16.000 17.85 286 200.00 200 2,986 Tank external inspection;includes per diem and travel costs (at 10,20 and 30 years -3 times - 3 tanks)1 LOT 1500.00 1,500 40.000 40.000 75.00 3,000 1200.00 1,200 5,700 New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Appendix B-6 QUANTITY MATERIAL LABOR EQUIPMENT B.Renewal Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas Price $Unit Hrs Rate $Price $$ 2B.PIPELINES AND HEADERS Check 3”barge header and repair (at 10 and 30 years -2 times -2 each -600 ft each)1 LOT 300.00 300 20.000 20.000 17.85 357 200.00 200 857 Check and repair truck fill meter, pumps,and loading hoses (at 10 and 30 years -2 times -2 each)1 LOT 1500.00 1,500 16.000 16.000 17.85 286 200.00 200 1,986 2C.DISPENSING AREA Repair dispensing equipment (at 10 and 30 years -2 times)1 LOT 2500.00 2,500 16.0 16 75.00 1,200 200.00 200 3,900 SUBTOTAL 2A,B &C.TANKS,PIPELINES,DISP.:17,100 6,271 4,000 27,371 3.ELECTRICAL MAINTENANCE Check electrical systems serving tanks,pumps,etc. Repair as necessary (at 5,10,15,25, 30 and 35 years -6 times)1 LOT 300.00 300 16.000 16.000 75.00 1,200 200.00 200 1,700 SUBTOTAL 3.ELECTRICAL MAINTENANCE:300 1,200 200 1,700 SUMMARY (One time cost -multiply by number of times to be renewed) 1A &B.FENCE,PADS,DIKES,ETC.$10,433 2A,B &C.TANKS,PIPELINES,DISPENSING $27,371 3.ELECTRICAL MAINTENANCE $1,700 TOTAL IN PRESENT DOLLARS FOR 40 YEARS:$39,504 New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Appendix B-7 QUANTITY |MATERIAL "LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas Price $Unit Hrs Rate $Price $$ 1A.FENCE Replace 8'0"fencing (at 20 and 40 years -2 times)550 =LF 15.00 8,250 0.500 275.000 17.85 4,909 4.40 2,420 15,579 Replace 4'0"man gates (at 20 and 40 years -2 times)4 EA 275.00 1,100 5.000 20.000 17.85 357 1,457 1B.PADS,DIKES,ETC. 3"gravel surfacing for pads (at 20 and 40 years -2 times)7,500 SF 0.45 3,375 0.030 225.000 17.85 4,016 0.30 2,250 9,641 Remove and replace precast tank foundations (at 40 years -1 time)1 LOT 2000.00 2,000 40.000 40.000 17.85 714 2500.00 2,500 5,214 Excavate,replace HDPE liner (at 40 years -1 time)7,500 SF 1.35 10,125 0.100 750.000 17.85 13,388 0.35 2,625 26,138 3"gravel surfacing inside dike and non-woven geotextile (2 layers)7,500 SF 0.10 750 0.005 37.500 17.85 669 0.30 2,250 3,669 Replace /maintain truck fill pump box and containment (at 40 years -1 time)1 LS 4000.00 4,000 60.000 60.000 22.50 1,350 2000.00 2,000 7,350 Replace steps and landings (at 40 years -1 time)60 LF 90.00 5,400 0.500 30.000 17.85 536 2.50 150 6,086 SUBTOTAL 1A &B.FENCE,PADS,DIKES,ETC.:35,000 25,938 14,195 75,133 2A.TANKS Replace 30,000 gallon bulk tanks (5 each -1 time)5 EA -55,000 275,000 16.000 80.000 17.85 1,428 750.00 3,750 280,178 Replace 10,000 gallon dispensing tanks (2 each -1 time)2 EA 22,500 45,000 16.000 32.000 17.85 571 =750.00 1,500 47,071 Replace 6,000 gallon intermediate tank (1 each -1 time)1 EA 13,500 13,500 16.000 16.000 17.85 286 750.00 750 14,536 New Koliganek Village Council Bulk Fuel Facility Business Operating Plan Appendix B-8 QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units [Meas]Price $Unit Hrs Rate $Price $$ Replace 3"Sch 80 receipt/issue lines (at 40 years -2 each -600 ft each)600 LF 22.50 13,500 0.920 552.000 17.85 9,853 5.50 3,300 26,653 Replace 2"lines at dispensing tanks (at 40 years -2 each -160 ft each)200 =LF 21.00 4,200 0.650 130.000 17.85 2,321 3.00 600 7,121 Replace valves,2”(at 40 years)15 EA 155.00 2,325 1.250 18.750 17.85 335 2,660 Replace valves,3"(at 40 years)4 EA 285.00 1,140 1.750 7.000 17.85 125 1,265 Replace pipe supports (1 time at 40 years)25 EA 235.00 5,875 3.500 87.500 17.85 1,562 50.00 1,250 8,687 2C.DISPENSING AREA Replace dispensing equipment (at 20 and 40 years -2 times)1 LOT 20000.00 20,000 40.0 40 75.00 3,000 800.00 800 23,800 SUBTOTAL 2A,B &C.TANKS,PIPELINES,DISP.:380,540 19,480 11,950 411,970 3.ELECTRICAL SYSTEMS Replace wiring,panels and circuit breakers for tanks,pumps,etc.(at 20 and 40 years -2 times)1 LS 10000.00 10,000 40.000 40.000 75.00 3,000 300.00 300 13,300 SUBTOTAL 3.ELECTRICAL SYSTEMS:10,000 3,000 300 13,300 SUMMARY (One time cost -multiply by times to be replaced) 1A &B.FENCE,PADS,DIKES,ETC.$75,133 2A,B &C.TANKS,PIPELINES,DISPENSING $411,970 3.ELECTRICAL SYSTEMS $13,300 TOTAL RENEWAL:$500,403 New Koliganck Village Council Bulk Fuel Facility Business Operating Plan Appendix B-9 ADDITIONAL RELATED AND ATTACHED DOCUMENTS 1.Secondary Operator Agreement 2.Site Control Documents 3.Sample Grant Agreement 4.R&R Account Information Secondary OperatorAgreement SECONDARY OPERATOR AGREEMENT FOR THE KOLIGANEK BULK FUEL 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 New Koliganek Village Council (the "Council”)for the upgrading of the bulk fuel storage and dispensing facilities at Koliganek,Alaska (the "Facility”)to be owned and operated by the Council,and WHEREAS,grant funds may 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 Council have agreed to a Business Operating Plan consistent with the Sustainability Criteria for the operation of the Facility,as contained in the Koliganek Bulk Fuel Facility Business Operating Plan dated September 15,2010 ("Plan”');and WHEREAS,the Plan specifies that the Council 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,Council and the Koliganek Natives Limited 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 the Koliganek Natives Limited as the Secondary Operator to assist the Primary Operator or to take over such functions of the Facility operations that the Commission determines are necessaty for such time as it determines is necessary,pursuant to the terms and conditions of this Agreement; Now THEREFORE,the Commission and the Council 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 fuel sales and all other receivables; Secondary Operator Agreement for the Koliganek Bulk Fuel Facility Page 2 of 4 2.3 2.4 2.5 2.6 2.7 2.8 deposit moneys into the appropriate accounts,including deposits into the Operations & Maintenance Fund account as well as deposits into the Renewal &Replacement invested escrow 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 the 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 the 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 Council 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 Opetator Agreement for the Koliganek Bulk Fuel Facility Page 3 of 4 10. 4.4 The parties anticipate that,if a Secondary Operator is appointed,the Commission will appoint Koliganek Natives Limited.However,the parties acknowledge that Koliganek Natives Limited may not exist or be willing to serve in this capacity at the time a Secondary Operator is needed,or other circumstances may prevent Koliganek Natives Limited from serving as Secondary Operator.Therefore,the Council acknowledges and agrees that the Commission may appoint any qualified entity or entities to serve as Secondary Operator. The Commission will consult with the Council 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 the Secondary Operator,consulting with the Council and taking into account the needs and interests of the community of Koliganek 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 nght,power,or remedy shall operate as a waiver thereof,nor shall any single or partial exercise of any right,power,or remedy preclude other ot 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 patty 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 Koliganek Bulk Fuel 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 parties: rr the NEW KOLIGANEK VILLAGE COUNCILtormentTelemed.Q-s71-30(0(Signature)(Date) Werman€,Nason Sr.President (Name Printed)(Title) (.0-Box 50571 Koliounek,Ale 99576(Address) for the DENALI COMMISSION(orale Ques e221(Signature)(Date) Dali Daniels Eneray PM (Name Printed)(Title)J | SIO LS Ste HO Ancherag ACSASO(Address) for KOLIGANEK NATIVES LIMITED. b , ,4-37-2010 (Signature)(Date) Helin €Nelson Se President (Name Printed)(Title) 00.Ax G2 Koliaanek,AKA957-¢,(Address)NSIS Site ControlDocuments Draft 4/28/2009 Land Ownership Report and Site Contro!Action Plan Koliganek Energy Infrastructure Projects As requested,|have reviewed the land status for the proposed energy infrastructure projects in Koliganek.The site locations were shown on the Certificate to Plat Area Plan sheet M1 dated 1/22/09,copy attached.A total of 13 sites were identified on this map. Land Status Report Land records were researched at the Bureau of Land Management (BLM),the State Department of Community,Commerce and Economic Development,and the State Recording Office.All research was conducted on line. Following is a listing of the apparent ownership of the site locations: State of Alaska,Department of Commerce,Community and Economic Development,in trust for any future municipal corporation that may be established in Koliganek (municipal trust land):Tract 58 (Nushagak Road),Tract 85 (River Road),Tract 92 Quigami Road (portion of road north of Lot 1,Plat 2006-1),Tract 80,Tract 82 and Tract 83.These tracts are identified in the ANCSA 14(c)(3)survey recorded as Plat 2004-6.These tracts were conveyed to the State of Alaska on April 26,2006.A copy of the recorded deed is attached. There are six sites located on municipal trust land. Koliganek Natives Limited:Tract A,Koliganek Subdivision Plat 2006-1.This was formerly a portion of lot 21,T.5 South,Range 47 West,Seward Meridian. Section 21 was conveyed to Koliganek Natives Limited by Interim Conveyance 228.A copy of the recorded interim conveyance is attached.The land was surveyed as part of the Koliganek School Subdivision,but there is no record of transfer to the School District.Thus,it appears the Koliganek Natives Limited is still the owner of record for Tract A.Koliganek Natives Limited has also apparently retained ownership to Tract 81,Plat 2004-6.This tract was also formerly a portion of lot 21 identified above.One site is located within Tract A, Plat 2006-1 and one site is located within Tract 81,Plat 2004-6. Southwest Regional School!District:Lots 1,2A,2B,2C,and 2D of Koliganek School Subdivision,Plat 2006-1,recorded March 5,2006,in the Bristol Bay Recording District.These lots were formerly identified as U.S.Survey 3509. U.S.Survey 3509 was conveyed to the Southwest Regional School District by quitclaim deed from the State of Alaska dated June 20,1988.A copy of the recorded deed is attached.There is one site located in Lot 1,one in Lot 2B ,one site in Lot 2C and one site in Lot 2D,Plat 2006-1. Draft 4/28/2009 Note:There is also one site that appears to be partially within the dedicated right of way for Quigami Road with Plat 2006-1 and partially within Tract 92,Plat 2004-6,which is also Quigami Road but this portion is owned by the State of Alaska as noted above. Site Control Action Required.Easements for each site should be acquired from the landowners identified above. Disclaimer:This site control opinion does not purport to insure,warrant or certify title.This opinion is not a legal opinion.All research was limited to a review of the available computerized files.The opinion is the result of a diligent research effort as described above. Prepared by Rick Elliott Land Consultant for AE&E April 28,2009 "C3wn.,R.ATW.Sm -seca,2] USHAGAK PMR RIVER ROAD TRACT 2C,KOLIGANEK SCHOOL SUBDIVISION /TRACT 28,KOLIGANEK SCHOOL SUBDMISION -/J _be _ NUSHAGAK ROAD Tract 5B,ARCS IE cHs Plat §lLOY-lo -- "ASSo?tints,:LPa©-mer j-Cuan KPcies Loaf wsT2D,\KOLIGANEK SCH \e a MS"9 Mei TRAST 83,ANCSA 14(C) RIVER ROAD @ "reat FS TRAST 82,ANCSA 14(C) *,rae -Ser]yd,CERTIFICATE TO PLAT AREA PLAN KOLIGANEK cTPMAT 3 tes Rurot Enetay Group TEALASKA093WestNortvernLightsBia@EBENEAGYAUTHORITYAreturage,Seeks 96505 AID AEA LO 4 ,f'- -- TRAY -MeeeaucFDfeastao,mesa tae)"feeescmehDITLOT1,KOLISANEK-SCHCOL SUBDIVISION TL (C)[sted TRACT A,KOLIGANEK SCHOOL SUBDIVISION fetes oyLdownedtoyAbOgareka,is Ware k . PROECT:pra a:STD SAE:12150"Stare of Nogka Ap. KOLIGANEK ENERGY INFRASTRUCTURE PROJECTS [rooneyoe DA 1/22/09 [a SPORESt of Corey or Development wrwwewewewwowww..2006-000287-0 Recording Dist:307 -Bristol Bay i 6/1/2006 2:03 PM Pages:1 of 4 A HOUMA ITDEELA -Municipal Trust Land Koliganek,Alaska CC This Deed is made by and between Koliganek Natives Ltd.,an Alaskan corporation,the Native village corporation for the village of Koliganek,Alaska,(GRANTOR),whose mailing address is General Delivery Koliganek,AK 99576 and the State of Alaska,Department of Commerce,Community and Economic Development,as Trustee for any future municipal corporation that may be established in the village of Koliganek,Alaska (GRANTEE).The mailing address of the GRANTEE is 550 W.7th Ave. Suite 1770,Anchorage,Alaska 99501. The GRANTOR,as provided by AS 44.33.755{a)and 3 AAC 190.025,for and in consideration of the requirements of Section 14(c)(3)of the Alaska Native Claims Settlement Act (ANCSA)does hereby quitclaim and convey unto the GRANTEE,all present and after-acquired right,title and interest,if any,in and to the surface estate of the of land more particular described in Appendix A,attached hereto. The purpose of this deed is to convey land and interests therein pursuant to the terms of an ANCSA 14(c)(3)Settlement Agreement dated September 28,2001 recorded in the Bristol Bay Recording District as 2001-000754-0,Pages 1-13 on October 1,2001.Portions of Tract 82 of the Koliganek ANCSA 14(c) Subdivision (Plat 2004-6)were conveyed by a metes and bounds legal description in a modified quit claim deed dated January 19,1984 recorded in the Bristol Bay Recording District in Book 27,Pages 300 through 308 on January 20,1984.The legal description identified in Appendix A of this deed supersedes the metes and bounds description in the January 19,1984 modified quit claim deed.All other conditions of the January 19,1984 modified quit claim deed remain in full force and effect and attach to this deed.This deed implements and satisfies all of Koliganek Natives Ltd.'s other ANCSA 14(c)(3)conveyance requirements to convey land to the State in Trust for a future municipality that may form in Koliganek. It is stipulated,that any net revenues derived from the sale of surface resources harvested or extracted from these lands shall be paid to the ANCSA Corporation by the GRANTEE or future Municipal Corporation:;provided,however,that the word "sale",as used in the preceding sentence,shall not include the utilization ofsurfaceresourcesforgovernmentalpurposesbytheGRANTEEorfutureMunicipalCorporation,nor shall it include the issuance of free use permits or other authorization for such purposes. The conveyance of the above land is subject to easements of record. GRANTOR Koliganek Natives Ltd. ATTEST:__oth rconanste Pabeon 3 :Secretary.President (or Vice-President)+«?-oon}'$SsDate:4-76 °"06 (Corporate Seal)"a ;a ;i Attachmen Par i Appendix A:Legal Description E38 * ACKNOWLEDGEMENT STATE OF ALASKA ) )ss.B74 JUDICIAL DISTRICT ) THIS IS TO CERTIFY THAT ON THE <6 7A day of APA".-£_,20.26_,before me,the undersignedNotaryPublicfortheStateofAlaska,or U.S.Postmaster,duly commissioned amssworn as such,p nally ,;came Aer mansion rr ,President (or Vice-President),and Nw Tl Ten erwernsSecretary,respectively,of Koliganek Natives Ltd.organized and existing under the laws ofthe Stathf Alaska,to me known to be the said officers,respectively of said Corporation,and acknowledged that the seal ,affixed within this DEED is the corporate seal of said Corporation and that said instrument was signed andsealedonbehalfofsaidCorporationbytheauthorityofitsBoardofoecreeViPrmanWhelanAA:_,President (or Vice-President),and7 Tensetuans Ar,,Secretary,of Koliganek Natives Ltd.acknowledged said instrument to betthe free act and deed of said Corporation. IN WITNESS WHEREOF,I have hereunto set my hand and affixed my seal the day and year first above "nen.eat}ab ets Wy Kterit&Ri bart Sale Notary Public for Alaskd (or U.S.Postmaster).My Commission expires:Gr ATCTLeAS ia"wweae"PACUTUNANSTiempeof.*eBes,"ageeota°=WSLevine"hang”Ncas.No Charge,Official State of Alaska Business Please return the original recorded document to: Municipal Land Trust Officer Department of Commerce,Community and Economic Development ; Division of Community Advocacy 550 W.7th Avenue,Suite 1770 , Anchorage,AK 99501-3510 cca er2006-000287.0 wrwT7vwevwevwewvwaeweoewewTwewwACCEPTANCE In accordance with AS 44.33.755{a)and 3 AAC 190.015(5),this grant is hereby accepted by the STATE OF ALASKA,in trust for any municipal corporation established in Koliganek in the future. GRANTEE STATE OF ALASKA DEPARTMENT OF COMMERCE,COMMUNITY AND ECONOMIC DEVELOPM By:Ze VEDA. Date:4peul BE,2006 ACKNOWLEDGEMENT STATE OF ALASKA ) ')ss.ThweC__supicsa istrict ) THIS IS TO CERTIFY that on the «£74 day of Gora ,20_96__,before me,theundersignedNotaryPublicfortheStateofAlaska,duly commissioned and sworn as such,personally came Michael L.Black,Municipal Land Trust Officer acting under delegation of authority for the Commissioner of the Department of Commerce,Community and Economic Development ,for and on behalf of the STATE; OF ALASKA as trustee for any municipal corporation which may be established in the future at Koliganek, Alaska,and acknowledged that this DEED was signed and sealed on behalf of the STATE OF ALASKA by, proper authority delegated and vested in himself,and acknowledged further said instrument to be the free act | and deed of said STATE OF ALASKA. IN WITNESS WHEREOF,I have hereunto set my hand and affixed my seal the day and year first above written. Kath fe,Lat%.0,(SEAL).Notary Public for AlddkaMyAO'gsi ee =ANCL My Commission expires:kyZnG-OFC ST 2006-000287-0 je. APPENDIX A LEGAL DESCRIPTION The surface estate of that certain real property located in Township 5 South,Range 47 West,Seward Meridian,Alaska,being situated iin the vicinity of the Native village of Koliganek within the BristolBayRecordingDistrict,3"Judicial District,State of Alaska,more particularly identified on the Alaska Native Claims Settlement Act (ANCSA)Section 14(c)Tracts 1 through 73 and 75 through 93 P.L.92-203 (85 STAT.688,702,703)Koliganek Natives Limited at Koliganek,Alaska survey subdivision,(recorded in the Bristol Bay Recording District as plat 2004-6),as follows; Tracts 1,2,9,18,19,20,21,27,28,30,33,43,46,57,58,59,61,62,63,68,69,70,71,72, 73,75,76,77,78,79,80,82,83,85,86,87,88,89,90,and 92.Containing 92.56 acres. The surface estate of that certain real property locatedin Township 5 South,Range 47 West,Seward Meridian,Alaska,being situated iin the vicinity of the Native village of Koliganek within the BristolBayRecordingDistrict,3™Judicial District,State of Alaska,more particularly identified on theNushagakSubdivisionLots1through9VillageofNewKoliganek,(recordedin the Bristol Bay Recording District as plat 98-17),as follows; Lot 8 and the streets identified as Nushagak Way and Nushagak Court.Containing 1.11 acres more or less. This deed aggregating to 93.67 acres more or less. a ae9006-000287-0 oristoi Day mecording Listrict QUITCLAIM DEED THIS INDENTURE,made and entered into this 20th day of June,1988,by and between the STATE OF ALASKA,GRANTOR,and the SOUTHWEST REGIONAL SCHOOL DISTRICT,P.O.Box 3196,Dillingham,Alaska 99576,its successors and assigns,GRANTEE. WITNESSETH,that the Grantor,pursuant to A.S.14.08.151(b),for and in consideration of the sum of TEN AND NO/100 DOLLARS,lawful money of the United States and other good and valuable consideration,the receipt whereof is hereby acknowledged,does hereby remise,release and quitclaim unto the Grantee,its successors and assigns forever,all right,title and interest in and to that lot,piece or parcel of land situated,lying and being in the Bristol Bay Recording District,described as follows: U.S.SURVEY NO.3509,ALASKA,CONTAINING 5.55 ACRES,MORE OR LESS,ACCORDING TO THE SURVEY PLAT ACCEPTED BY THE UNITED STATES DEPARTMENT OF THE INTERIOR,BUREAU OF \oed MANAGEMENT IN WASHINGTON,D.C.,ON OCTOBER 30,1964. Subject to: Valid existing rights,easements and reservations. The condition that the Grantee shall use the above-described propertyforschoolorotherpublicpurposesonly. The condition that the Grantee shall make the above-described propertyavailabletoIndiansandnon-Indians on the same terms,unless otherwise approved by the Secretary of the Interior. According to the official survey thereof save and except those restrictions appearing in the Federal Patent or other conveyance by which the Grantor acquired title and further, the State of Alaska,the Grantor,hereby expressly saves,excepts and reserves out of the grant hereby made,unto itself,its lessees,successors,and assigns forever,all oils, gases,coal,ores,minerals,fissionable materials,geothermal resources,and fossils of every name,kind or description,and which may be in or upon said lands above described,or any part thereof,and the right to explore the same for such oils,gases, coal,ores,minerals,fissionable materials,geothermal resources,and fossils,and it also hereby expressly saves and reserves out of the grant hereby made,unto itself,its lessees,successors and assigns forever,the right to enter by itself,its or their agents, attorneys,and servants upon said lands,or any part or parts thereof,at any and all times for the purpose of opening,developing,drilling and working mines or wells on these or other lands and taking out and removing therefrom all such oils,gases,coal, ores,minerals,fissionable materials,geothermal resources,and fossils,and to that end it further expressly reserves out of the grant hereby made,unto itself,its lessees, successors,and assigns forever,the right by its or their agents,servants and attorneys at any and all times to erect,construct,maintain,and use all such buildings,machinery, roads,pipelines,powerlines,and railroads,sink such shafts,drill such wells,remove such soil.and to remain on said lands ar anw nart tharenf far the freadnina nen ann- NEVOTkeerteetasaei t 7 Return original to: .:Bankston,McCollum &Fossey,P.C...950 W.7th Ave.,Suite 1800 Gristol Day Mevuruiiug ssrseviser and to occupy as much of said lands as may be necessary or convenient for such purposes hereby expressly reserving to itself,its lessees,successors,and assigns,as aforesaid,generally all rights and power in,to,and over said land,whether herein expressed or not,reasonably necessary or convenient to render beneficial and efficient the complete enjoyment of the property and rights hereby expressly reserved. TOGETHER,with all the appurtenances and all the estate and rights of the Grantor to said premises. TO HAVE AND TO HOLD the premises herein granted unto the Grantee,its successors and assigns forever. IN WITNESS WHEREOF,THE STATE OF ALASKA,the Grantor,has caused these presents to be executed by the Director of the Division of Land and Water Management,Department of Natural Resources,on the day and year first above written. STATE OF ALASKA By: Carol L.Shobe For Gary G.Gustafson,the DirectorDivisionofLandandWaterManagementDepartmentofNaturalResources STATE OF ALASKA ) )ss. Third Judicial District ) THIS IS TO CERTIFY that on the 20th day of June,1988,appeared before meCAROLL.SHOBE,who is known to me to be the Director of the Division of LandandWaterManagement,Department of Natural Resources,State of Alaska,or thepersonwhohasbeenlawfullydelegatedtheauthorityofsaidDirectortoexecutetheforegoingdocument;that she executed said document under such legal authority andwithknowledgeofitscontents;and that such act was performed freely and voluntarilyuponthepremisesandforthepurposesstatedtherein. WITNESS my hand and official seal the day and year in this certificate firstabovewritten. ;,Anchorage,AK 99501 BS-49 / REC.DIST. ore -3/19 £8.time__?Yo)Mom RECORDED BO 13-Tae, Grant Agreement Alaska Energy Authority Grant Agreement /=ALASKAe@a--_ENERGY AUTHORITY Grant Agreement Number Amount of Funds: $ Project Code(s)Encumbrance Number/AR Period of Performance: From:To: Project Title: Grantee Grantor Name Alaska Energy Authority Street/PO Box Street/PO Box 813 W.Northern Lights BlvdCity/State/Zip City/State/ZipAnchorage,AK 99503 Contact Person Contact Person .oh, Phone:Fax:E-mail:Phone:Fax: 907-999-9999 907-999-9999 «|E-mail: 907-771-9999 |907-771-3044 AGREEMENTTheAlaskaEnergy Authority (hereinafter 'Authority'and Name}(hereinafter 'Grantee')agree as set forthherein.:Section |.The Authority shall grant funds to pay)for oe incurred by the Grantee under the terms andconditionsofthisAgreement,in an amount not to.exceed $GRANT AMOUNT,unless the grant amount isamendedasprovidedherein.EO :Section Il.The Grantee shall apply the grant funds to the Project and perform all of the work and otherobligationsrequiredbythisAgreement.a 8SectionIll.Performance under this agreement begins (Date expenditures can start)and shall be completed no later than INSERT COMPLETION DATE.Section IV.The agreementconsists of this page and the following:Appendices :Appendix A:General Provisions aAppendixB:Standard Provisions:” Attachments/Forms (As required) Attachment 1:Notice of Substantial Completion Attachment 2:Notice of Project Closeout Appendix C: Appendix D: Appendix E: Grantee Proposal/Scope of Work Project Management & Reporting Requirements Project Budget & Reimbursement Provisions Attachment 3:Waiver of Sovereign Immunity (if required) AMENDMENTS:Any amendments to this Agreement must be signed by authorized representatives of Grantee and the Authority and should be listed here. Grantee Authority Project Manager Executive Director or Designee Signature Signature Signature Printed Name and Title Printed Name and Title Steve Haagenson, AEA Executive Director Date Date Date Table of Contents Grant No. AGREEMENT wicecccccesecccscesecsessvscssescsssvaccuscaseseesvareasseseacesescsensessecasesessesaesseaesassucaesaceaesaeessenessessesecaecaeereesvaeeaeeseveees 1 APPENDIX A GENERAL PROVISIONS 4 1.DEFINITIONS.....ccccccecscceccececeecccesceseecescestsssecceccaseacsassesscceccaseaceaseaseaceassateacecesscsccacsaccacsaesaseseaseaceansacsaseasneansess 4 2.AUTHORITY SAVED HARMLESS.......csccesscssccesscecesccsscsccasescsarsassscuscsacsacecvscescsacssssacsacscensersvsntarsaracavenseneaes 4 3.WORKERS'COMPENSATION INSURANCE .....cccescscecessessceccecceecaccaevsenacsacsccsecsecnsvaesaceacsacssenevseraesareecnevnevaees 4 4.INSURANCE......cccccccscecesceccecsecscevsccoscsececeacsacsecsecaesacsacsacsacsscsevsecaevaccnesaenaeacsavsevaecrsvaesnesacsaceasnevsevaevasesereveaesevs 4 5.EQUAL EMPLOYMENT OPPORTUNITY (EEO)....ccccscsccsssssssscsssscecseseesstseceenesessetsacscsesssessesearssersecaeneacsersseens 5 6.PUBLIC PURPOSES ' 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.NO ASSIGNMENT OR DELEGATION.:oo aanacecesseneacacescvansassegjiessessessescececesaceseeacsasscanessesavsceaseasaescenecaeeas 7 18.NO THIRD PARTY BENEFICIARIES .0icesiccdsceocicesnecccseclbduesecccaccevsevscesceaveacccssesecsecsenavscesceseeseesecaavaceneseeneeaeeas 719.NO ADDITIONAL WORK OR MATERIAL .cievsevussusscebacjacsateateacaeescrscaseasesseaseasesenscssesseacesssassaesavaceeceeceess 20.CHANGES .....ccscescessscssticentsscnssesscvtisvesenesees hese 21.RIGHT TO WITHHOLD FUNDS... 22.REMISSION OF UNEXPENDED FUNDS 23. 24.LOBBYING ACTIVITIES...iccssocecsesecscssscothicelevscsscsecsessevsevscssesnsssssssesssssssasssssesussevssesessesssasecasavssussuevevsssessuaes 25. 26. 27.AUDITS.ciccetscectiscssscssssstorsecsednesveceecensvsescusuasscacscevseveescnscrevsesssasscvassavsevevarsevacscseessssesesavsdvecseseesesecsevseasvarecaes 28.LEGAL AUTHORITY ....ccecescesscrsssscscscesssscessossvssssceucrevsevsevscsesensssssssssstcsusssvsessevsavssvecsvsrsraseusnevavsnssrsrevsseravases 29.GRANT CLOSE OUT.aveneesssnsenesosoonasananenvnnvevesscseeeseccessecessessssosonaninssanssnesevecossssesscesesscescecesesseensseeeestetAPPENDIXBSTANDARDPROVISIONS10 1.GRANT FUNDING SOURCES seseancesenevacassavncenscscsassacssensvscesterseasenscscessrsneacaesaescesavsevscessessvaceaeeaesnesaeatcacereses 10 2.GOVERNING LAWS ...ccceccsssscssssecceccsccscessssvercccssssnsacsscsacsacscescescescersssccsncacesessesaeraesaesncsesceaecsesaesacenerevaceasens 10 3.ELIGIBLE COSTS .....cccccecsscsscsssseccesceccecesssccsccsccscsscsaceacsacssesacscessescesaesacsnsasssessesaesacsaesnesesceseseenesaesaesecaceneees 10 DENALI COMMISSION OR OTHER FEDERAL GRANTS ADMINISTERED BY THE AUTHORITY:.......cceseeeeeseees 10 4,INSURANCE REQUIREMENTS (NEED TO ADJUST PER PROJECT REQUIREMENTS.)....ccssessseeseseesess 10 5.SOVEREIGN IMMUNITY (IF REQUIRED)......cssssssssssssessesseseecsssesecsssseneseseseseseseseseaeseseseseaessseecacessesenessentenes 11 6.DISPOSITION OF EQUIPMENT .....ccccccscecsssscsscscessscessssscssscsussuseuseseesssecsusecsasecsusecsuecessecesseseusesecsuvecsusessaseces 11 APPENDIX BI STANDARD PROVISIONS FOR GENERAL DESIGN &CONSTRUCTION GRANT...12 1.DECLARATION OF PUBLIC BENEFIT ........cccecsessscssssessscssesscscesssvsesacsecscevsessssssscssevavsseeessessavsesassnerevaesreees 12 3.CONTRACTS FOR ENGINEERING SERVICES ...cccccsssscsssssssssesscssscecsecsscssessusascesessasssusecssessssnvessassssvevsesvaces 12 4.SITE CONTROL ...cecccceccccscccscseseccsaceccscceccaecacescencsccsecaevscsacsacsassaceacsacensesesevsesacsaceaevaseccneensesceareateaearaseaseaces 12 5.PERMITS ......cccccceccccescececcscesceccsesesecssesccscssssacsacsccsccssveccassacsaesaesavscesavsaesaesavscesceseaeavecesscscesaeseesevaesaesaesasesseees 12 6.EXCLUSION OF EXISTING ENVIRONMENTAL HAZARDS \.uvesscscsssscsscessssssessssessecsscsccaesssssseesnevacsavaccseees 12 7.ENVIRONMENTAL STANDARDS .....ccscssesssecscveceecescssesecevscesecscecesavavsnsscsacsaeseesavscvsnesessceaesseraceareacaerensaaves 13 Page 2 of 21 8.GRANT-FUNDED ASSETS NOT INCLUDED WITH PCE ........cesescsssseseeeeseeeceneesacesaesessseeneesoeeneeseseneesenses 13 9.TARIFFS &RATES FOR USE OF GRANT-FUNDED ASSETS .......cccccccccsescsccecscnscsssececnssssesoucnercsscscuaescnsecs 13 APPENDIX B2 STANDARD PROVISIONS FOR AEA MANAGED PROJECTS 13 1.AUTHORITY'S RESPONSIBILITIES ssssssssessocscssssssscsssssssssssssesssssesssussssssssssssesssspsussassasesesssssssuussessesensssee 13 2.FORCE ACCOUNT PAYROLL AND PROJECT COORDINATION .......ccccccccccccccsscssccscessseserereccessreccereceeseneee 14 3,SUBSTANTIAL COMPLETION OF PROJECT sesssscccsssssssssssssesvesssssssssssesssssssssussssisesssssssssssssssesessasasesssse 14 4.RIGHTS OF OTHER PARTIES vsssssccscssssscsssccssssesssssssssssssesessusssssisessesssessessssssuisissesessssssasissesesessssisssseee 14 5.DENALI COMMISSION APPROVAL ..,.....c.cccsseccocccccsssccccsecccnsscnssccensesccacsccesccenseecuacsccuseesussecoacscesssseaececcuses 14 6.ACKNOWLEDGEMENT OF PROJECT SUPPORT csscscscssssssssssssssssssssssssssssssssvasssssessssvisssssesssssassasssesse 15 APPENDIX C GRANTEE PROPOSAL/SCOPE OF WORK 16 APPENDIX D PROJECT MANAGEMENT REQUIREMENTS...17 1.PROJECT MANAGEMENT cesccsceccccccsecssrecercersscvecercesscsseeresteesncesceeveeteeseecececeesecucseceesceccveucecsvsusensceeusesseeceesees 2.CONTACT PERSONS ........cccccccscecececccsececosssccecssscossecenesseues seaee 3.DOCUMENTATION AND RECORD KEEPING = |ATTACHMENT 1 NOTICE OF SUBSTANTIAL COMPLETION vinereuoen 18 ATTACHMENT 2 NOTICE OF PROJECT CLOSEOUT...aa oe 19 ATTACHMENT 3 WAIVER OF SOVEREIGN IMMUNITYYF REQUIRED)20 Page 3 of 21 |APPENDIX A GENERAL PROVISIONS 1.Definitions In this Grant Agreement,attachments and amendments: a)"Authority”means the Alaska Energy Authority,a public corporation of the State of Alaska. b)"Authorized Representatives”means those individuals or entities authorized by an entity to act on its behalf,with delegated authority sufficient to accomplish the purposes forwhichactionisneeded. c)"Executive Director”means the Executive Director .the Authority or the ExecutiveDirector's authorized representative.Hedy d)"Matching contributions”means the cash,loan proceeds,in-kind labor,equipment,land,other goods,materials,or services a grantee provides to satisfy any match requirementsofagrantortocompletetheProject.ae e)"Project”means [Posting Description]as defined in Appendix C (Scope of Grant)forwhichfundshavebeenmadeavailable: f)"Project Manager”meansthe employee of the Authority responsible for assisting theGranteewithtechnicalaspectsoftheProjectandisoneoftheGrantor's contacts for theGranteeduringallphases0oftheProject.”g)"Denali Commission”.means.the "federal:state commission established under42USC3121anditsSuccessorsorassigns. 2.Authority Saved HarmlessAsaconditionofthisGrant,the Grantee agrees to defend,indemnify,and hold harmless the Authority and the State of Alaska,and their agents,servants,contractors,and employees,fromandagainstanyandallclaims,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,howsoevercaused,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. 3.Workers'Compensation Insurance The Grantee shall provide and maintain Workers'Compensation Insurance as required by AS 23.30 for all employees engaged in work under this Grant Agreement.The Grantee shall require any contractor to provide and maintain Workers'Compensation Insurance for its employees as required by AS 23.30. 4.Insurance The Grantee is responsible for obtaining any necessary insurance and endorsements as defined in Appendix B Standard Provisions. Page 4 of 21 5.Equal Employment Opportunity (EEO) The Grantee may not discriminate against any employee or applicant for employment because of race,religion,color,national origin,age,physical handicap,sex,marital status,changes in marital status,pregnancy,or parenthood.The Grantee shall post in a conspicuous place, available to employees and applicants for employment,a notice setting out the provisions of this paragraph. The Grantee shall state in all solicitations or advertisements for employees to work on Authority funded projects,that it is an Equal Opportunity Employer (EEO)and that all qualified applications will receive consideration for employment without regard to race,religion,color,national origin,age,physical handicap,sex,marital status,changes iin marital status,pregnancyorparenthood. The Grantee shall include the provisions of this EEO article in every contract relating to this Grant Agreement and shail require the inclusion of these provisions in every agreement entered into by any of its contractors,so that those provisions will be binding upon each contractor andsubcontractor. 6.Public PurposesTheGranteeagreesthat the Project to which this Grant Agreement relates shall be dedicated to public purposes and any project constructed or equipment or facilities acquired,shall be owned and operated for the benefit of the general public..The Grantee shall spend monies appropriated under this grant only for the purposes specified in the Grant Agreement.The benefits of the Project shall be made available without regard to race,religion,color,national origin,age,physical handicap,sex,marital Status,changes Irin marital status,pregnancy or parenthood. 7.Officials Not To Benefit.No member of or delegate to Congress or the Legislature,or officials or employees of the Authority or Federal government may share any part of this agreement or any benefit to arisefromit.: oe 8.Governing LawThisGrantAgreementis governed by the laws of the State of Alaska.Any civil action arising from this Agreement shall be broughtin the Superior Court for the Third Judicial District of the State of Alaska at Anchorage. 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.Refer to Appendix B Standard Provisions for more specific requirements. 10.Severability If any section,paragraph,clause or provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall be unaffected and enforced to the fullest extent possible, and the invalid or unenforceable provision shall be deemed replaced with a valid and enforceable provision that is as similar as possible to such invalid or unenforceable provision. Page 5 of 21 11.Non-waiver 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. 12.Integration This instrument and all appendices,amendments,attachments,and 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 documents described above;and such documents shall supersede all previous communications,representations or agreements,either oral or written,between the partieshereto.To the extent there is any conflict between the provisions of Appendix A and B theGrantee's application or proposal,the provisions of Appendix A and B prevail. 13.Grantee Not Agent of AuthorityTheGranteeandanyagentsandemployees of the Grantee act in an independent capacity andarenotofficersoremployeesoragentsoftheAuthorityinthePerformanceofthisGrantAgreement.wee 14.Disputes Any dispute arising under this Grant Agreement whichimustbedealtwithinaccordancewith3AAC108.915 ot disposed of by mutual agreement 15.Termination a)The Grantee shal as provided in this Sectio pensation or damages for termination except b)In addition 'to.all.other righ "available under law,the Authority may terminate thisAgreementorstopworkontheProjectfortheconvenienceoftheAuthorityorforcauseupontenql0)days wi notice.” c)"Cause"for termination shall exist when the Grantee has failed to perform under thisAgreement,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. d)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. e)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 Page 6 of 21 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. 16.Termination Due to Lack of Funding In the event funding from the Authority,federal or other sources is withdrawn,reduced,or limited in any way after the effective date of this agreement and prior to normal completion,the Authority may terminate the agreement,reduce funding,or re-negotiate subject to those new funding conditions.e 17.No Assignment or DelegationTheGranteemaynotassignordelegate this Grant Agreement,or any part of it,or any right to any of the money to be paid under it,except with thewritten consent of the Executive Director orDesignee.fe 18.No Third Party BeneficiariesExceptasotherwisespecifiedinthis.agreement,no person is a third party beneficiary of thisAgreementandthisAgreementcreatesnothirdpartyrights.:Specifically,any person who is not a party to this Agreement shall be precluded from bringing any action asserting the liability of apartyorassertinganyrightagainstaparty'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.19.No Additional Work or Material.No claims will be allowed:for.'additional work,materials,or equipment,not specificallyauthorizedinthisGrantAgreement,which are performed or furnished by the Grantee.20.Changes.,Any changes which have been agreed to by both parties will be attached and made a part of this Grant Agreement by use of a written Amendment.Any such Amendment must be dated and signed by Authorized Representatives of the Authority and the Grantee. 21.Right to Withhold Funds The Authority may withhold payments under this Grant Agreement for non-compliance with any of the provisions of this Grant Agreement. 22.Remission of Unexpended Funds The Grantee shall return all unexpended grant monies to the Authority within 90 days of the Project completion. 23.Tax Compliance Responsibilities of Grantee The Grantee is responsible for determining applicable federal,state,and local tax requirements, for complying with all applicable tax requirements,and for paying all applicable taxes.The Authority may issue an IRS Form 1099 for Grant payments made.The Grantee shall pay all Page 7 of 21 federal,state and local taxes incurred by the Grantee and shall require the payment of all applicable taxes by any contractor or any other persons in the performance of this Grant Agreement. 24,Lobbying Activities In accepting these funds,the Grantee agrees and assures that none of the funds will be used for the purpose of lobbying activities before the United States Congress or Alaska Legistlature. No portion of these funds may be used for lobbying or propaganda purposes as prohibited in AS 37.05.321,18 U.S.C.1913,31 U.S.C.1352,or other laws as applicable. 25.Ownership of Documents and Products All designs,drawings,specifications,notes,artwork,computer programs,reports and other work developed with grant funds in the performance of this agreement are public domain and will be used by the Authority and/or public without noticeorcompensation to the Grantee.The Grantee agrees not to assert any rights and not to establish any claim under the design patentorcopyrightlaws.Except as otherwise specifically agreed,and without limiting any Intellectual Property requirements of a federal funding agency,the Authority shall have unlimited rights to use and to disseminate any data produced or delivered |inn the performance of the contract.26.Inspections and Retention of RecordsTheGranteeshallkeepafilefor-financial,progress.and other records relating to the performance of the grant agreement.The file must be retained for a period of four years from the fully executed close out of the grant agreement or until final resolution of any audit findingsclaimorlitigationrelatedtothegrant.The Authority may inspect,in the manner and atreasonabletimesitconsidersappropriate,records and activities under this Grant Agreement. 27.AuditsThisGrantAgreement is subjectto OMB Circular A-133 Audits of States,Local Governments, and Non-Profit Organizations..The Grantee must comply with all provisions of OMB Circular A-133 and any additional audit requirements outlined in Appendix D.Commercial (for-profit)entities shall obtain an audit by an independent auditingfirm similar to a program audit prepared under OMB A-133.The auditee and auditor shall have basically thesameresponsibilitiesforthefederalorstateprogramastheywouldhaveforanauditofamajorprograminasingleaudit."The expenditure threshold is $500,000 in the commercial entity's fiscal year. 28.Legal Authority The Grantee certifies that it possesses legal authority to accept grant funds under the State of Alaska and to execute the Project described in this Grant Agreement by signing the Grant Agreement document.The Grantee's relation to the Authority and the State of Alaska shall be at all times as an independent Grantee. 29.Grant Close out Upon completion of all work and expenditure of all grant funds related to the Project the Authority will provide written notice to the Grantee that the Grant will be closed.The Grantee shall sign the Notice of Project Closeout within 30 days after it is delivered by the Authority.The Grant will be considered closed upon receipt of the signed Notice of Project Closeout. Page 8 of 21 The Grant will be administratively closed if the Grantee fails to return the Notice of Project Closeout within 30 days after it is delivered by the Authority.If the Grantee has a valid reason for the Grant to remain open,they must contact the Authority in writing within 30 days. No additional reimbursements will be made to the Grantee after the grant is closed out. Page 9 of 21 |Appendix B__Standard Provisions 1.Grant Funding Sources This Grant is subject to appropriation and availability of funds as listed below: (List funding sources and amounts from each source) Grantee acknowledges that if additional grant funds are made available they are subject to the terms and conditions of this Agreement and any amendment.Funds from other federal sources cannot be counted as match or cost share. 2.Governing Laws The Grantee shall perform all aspects of this Project i pliance with all applicable state, federal and local laws:os (List specific CFRs or Federal Provisions or funding Source Policiesthat apply.The order ofprecedenceforfederalawardsthatflowthroughtoGranteeis:.°1)The federal statuteauthorizingthegrantprogram,2)Federal Program'regulations and'administrative regulations[including OMB circulars incorporated:by reference],3)Federal Policy or proceduralrequirementsspecifiedbythefederalagency)Sa, 3.Eligible CostsTheAuthority,as Grantor,shall'have sole discretion to determine which project costs areeligibletobepaidfromGrantmoniesunderthisagreement.Only direct costs of the Project areeligibleforpaymentorreimbursementfromgrantfunds.Indirect costs are not allowed underthisgrantunlessapprovedbytheAuthorityiinAppendixE. The eligible costs |ll be determinedin accordance with one or more of the following provisionsthatareincorporatedbyreferenceiinthisgrantagreement:Denali Commission oor1 other federal grants administered by the Authority:Costs are determined'per the.federal requirements contained in the grant to the Authority.(Usually this will be 2 C.F.R.Part 225 [formerly OMB CircularA-87]www.whitehouse.gov/omb or similar federal requirements.) Title 48 of the Code of Federal Regulations "Federal Acquisition Regulations System',Part 31, "Contract Cost Principles and Procedures” 4,Insurance Requirements (Need to adjust per project Requirements.) The following insurance requirements are in effect for this Project.Grant funds will be used to procure Project related insurance and the Authority will work with the Grantee to ensure that these requirements are met.Insurance will be obtained with an insurance carrier or carriers covering injury to persons and property suffered by the State of Alaska or by a third party as a result of operations under this grant.The insurance shall provide protection against injuries to all employees of the Project engaged in work under this grant.All insurance policies shall be issued by insurers that (i)are authorized to transact the business of insurance in the State of Page 10 of 21 Alaska under AS 21 and (ii)have a Bests Rating of at least A-VII and be required to notify the Authority,in writing,at least 30 days before cancellation of any coverage or reduction in any limits of liability. Where specific limits and coverage are shown,it is understood that they shall be the minimum acceptable and shall not limit the Grantee's indemnity responsibility.However,costs for any coverage in excess of specific limits of this agreement are the responsibility of the Grantee and may not be charged to this grant agreement. The following policies of insurance shall be maintained with the specified minimum coverage and limits in force at all times during the performance work under this Project: 1.Workers'Compensation:as required by AS 23.30.045,for all employees engaged inworkunderthisProject.The coverage shall include:a.Waiver of subrogation against the State andEmployer's Liability Protection at$500,000 each accident /each employee,and $500,000 policy limit;2.Commercial General Liability:on an occurrence policy.form covering all operationsunderthisProjectwithcombinedsinglelimitsnotlessthan:a.$1,000,000 Each Occurrence;©3 b.$1,000,000 Personal Injury;: c.$1,000,000 General Aggregate;and «......°d.$1,000,000 Products-"completed Operations Aggregate.The State of Alaska shall benamed 2as an individual insured.3.Automobile Liability:coveringg all vehicles used in Project work,with combined singlelimitsnolessthan$1,000,000 each occurrence.All of the above insurance coverage>shall be considered to be primary and non-contributory to any otheriinsurance carried by the State of Alaska,whether self-insurance or otherwise.The Authority's acceptance ofdefi cient evidence of insurance does not constitute a waiver ofGrantrequirements."= 5.Sovereign Immunity (If required). By execution of this grant agreement,the Grantee irrevocably waives any sovereign immunity which it may possess,and consents to suit against itself or its officials,under the laws of the State of Alaska,in the courts of the State of Alaska as to all causes of action by the Authority arising out of or in connection with this agreement.If the Grantee is an entity which possesses sovereign immunity,it shall provide the Authority with a resolution of the Grantee's governing body waiving sovereign immunity,and such resolution shall be incorporated into this agreement as an Attachment.(See Attachment 3) 6.Disposition of Equipment Equipment purchased in part or wholly with federal funds shall be used by the Grantee in the Project for which it was acquired as long as needed,whether or not the Project or program continues to be supported by federal funds.When no longer needed for the original program or Project,the equipment may be used in other activities currently or previously supported by a Page 11 of 21 Federal agency.The Grantee will not use the equipment to provide services for a fee on the grant-funded Project. The Grantee shall be responsible for the operation and maintenance of equipment acquired with this grant.The Grantee must keep records which will include a description,serial number, source and title,cost and percentage of federal participation in cost,location,use and condition, and sale price and date of disposal.Disposition of equipment with a current per-unit fair market value of less than $5,000 may be retained,sold or otherwise disposed of with no further obligation. |Appendix B1 Standard Provisions for General Design &Construction Grant 1.Declaration of Public Benefit The parties acknowledge and agree that the Project shall be c nstructed,owned and operatedforthebenefitofthegeneralpublicandwillnotdeny.any person use and/or benefit of Projectfacilitiesduetorace,religion,color,national origin,age,physical handicap,sex,marital status,changesin marital status,pregnancy or parenthood. 3.Contracts for Engineering ServicesIntheeventtheGranteecontractsforengineering 'services,the Grantee will require that theengineeringfirmcertifythatitisauthorized19dobusiness,in the State of Alaska and provideproofoflicensingandinsurance 4.Site Control If the grant Project involves the occupancy and use of real property,the Grantee assures that ithasthelegalrighttooccupy.and use such real property for the purposes of the grant,andfurtherthatthereislegal;access to such property.The Granteeis responsible for securing therealpropertyinterests:necessary for the construction and operation of the Project,throughownership,leasehold,easement,orotherwise,and for providing evidence satisfactory to theAuthoritythatithassecudthesrealpropertyinterests. 5,Permits It is the responsibility of the Grantee to identify and ensure that all permits required for the construction and operation of this Project by the Federal,State,or Local governments have been obtained unless otherwise stated in Appendix C.These permits may include,but are not limited to,Corps of Engineers'Wetlands Permit,State Historic Preservation Office,State Fire Marshal approval,rights-of-way for the pipelines,and site control,including any necessary Coastal Zone Management coordination through the Office of Project Management and Permitting (DNR). 6.Exclusion of Existing Environmental Hazards Grant funds for investigation,removal,decommissioning,or remediation of existing environmental contamination or hazards,are not allowed unless specifically specified and approved in Appendix C. Page 12 of 21 7.Environmental Standards The Grantee will comply with applicable environmental standards,including without limitation applicable laws for the prevention of pollution,management of hazardous waste,and evaluation of environmental impacts. 8.Grant-funded Assets Not Included with PCE The Grantee agrees that it will not include the value of facilities,equipment,services,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. 9.Tariffs &Rates for Use of Grant-Funded Assets Rates for power provided as a result of generation or transmission facilities built with grant funds may be subject to review and approval by the Regulatory Commission of Alaska (RCA),or if the rates are not subject to RCA review and approval,they may be subject to review andapprovalbytheAuthoritytoensurereasonable.and_ppropriate public benefit from theownershipandoperationoftheProject.Ry :, |Appendix B2_Standard Provisions for AEA Managed Projects 1.Authority's Responsibilities oeInconsiderationforthisGrant,Grantee hereby appoints the 'Authority to act as its agent for thedesign,construction,management,and administration of the Project.(Grant document needs to specify specifiCc tasks AEAis assuming responsibility for.Make surecostsingrantaresufficienttocoverAEA's responsibilities.)As Agent of the Grantee the Authority will be responsible for all matters related to the Project design and construction in accordance with this Grant Agreement,including but not limited todevelopmentandapprovalofplans:and specifications;procurement of all materials andservices,hiring force account labor,and accounting and reporting all expenditures as required by the Denali Commission,provided that the Authority will not be responsible for any matters not required by this Grant Agreement. If other funding sources for the Project require the Authority to assume additional duties as the agent of the Grantee,then those requirements will be identified and the duties will be assumed in a separate agreement which will be included as an Attachment to this Grant. The Grantee is responsible for monitoring the Project work to the extent necessary for the Grantee to determine that the work is proceeding satisfactorily and so that the Grantee can perform its responsibilities pertaining to the Project and operate and maintain the Project after Project completion. The Grantee will raise with the Authority promptly any concerns or issues it may have regarding the Project,and if those concerns or issues are not satisfactorily resolved the Grantee will promptly give written notice with a detailed description of the concerns or issues to the Authority's Project Manager. Page 13 of21 The Authority may engage an accounting firm to provide payroll services for the Project.If so engaged,the accounting firm may process payroll and per diem checks,make the required payroll tax payments,perform all required payroll tax and other reporting,and compute worker's compensation amounts payable by project as defined in their contract,and perform any other payroll services that may be required for the Project. 2.Force Account Payroll and Project Coordination The Grantee will assist the Authority in obtaining qualified local labor for the Project and will provide necessary local administration assistance,including recommending qualified local personnel;assisting in obtaining necessary personnel information;assisting in obtaining housing for nonresident workers;facilitating communications between the Authority,the community and local employees;and serving as a liaison between the Authority and thecommunity.oS 3.Substantial Completion of ProjectUponsubstantialcompletionoftheProject,the Authority will issue a Notice of SubstantialCompletionandidentifyanyoutstandingworkitems.”When the Notice is issued,the Grantee assumes all responsibility associated with operating and maintaining the Project,except as specifically provided otherwise herein or by separate agreement executed by the Authority andtheGrantee.bs,. The Grantee may disagree with the substantial completion determination by providing writtennoticetotheProjectManagerwithin'30,ays:after,_feceipt of the Notice of SubstantialCompletion.ate oh on The Grantee's written objections disagreeing with the Notice of Substantial Completion must detail the reasons the Grantee believes the Notice should not be issued.Further,the Grantee must explain what the Grantee expects should be done so the Notice can be issued,and when the additional issues identified can be completed or resolved.The Authority will follow-up within 60 days,letting the'Grantee know if the objections have been accepted,if the Notice ofSubstantialCompletionstands,or,vif the Notice of Substantial Completion is modified. 4.Rights of Other Parties _The parties agree that the Denali Commission and any successor is a third party beneficiary of the Grantees obligations in Appendix B1,No.14 (Operation and Maintenance of Facilities), Appendix A,No.29 (Inspections and Retention of Records),Appendix A,No.9 (Compliance with Applicable Law and Funding Source Requirements),and Appendix A,No.6 (Public Purposes);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 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. 5.Denali Commission Approval These responsibilities may not be altered or transferred without the prior written approval of the Denali Commission. Page 14 of 21 wriwWwFwTvwTZ'vwTvwvawevwTvJ7aewsTewwWw6.Acknowledgement of Project Support For all construction projects,the Grantee shall include an acknowledgement of the Government's support for the project(s)developed under this Award.The Grantee shall displayasignthat: 1.Has the Denali Commission logo displayed on the upper right-hand quadrant; 2.States the following:"This project was financed by the Denali Commission and its partners (list the name of the funding partners)”; 3.Shows the logo of each partner in the lower right-hand quadrant. The cost of this sign shall be paid out of the project funding received by the Grantee from the Denali Commission.Final approval of signage material and Placement of sign must be obtainedfromtheCommissionProjectManager.'e For all non-construction projects,the Grantee shall 'include.an acknowledgement of theGovernment's support for the project(s)developed under this Award.Acknowledgement shallinclude:: ;71.The Denali Commission logo and the logo of ”actvarnen oy 2.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 willvarywitheachawardandmustbeagreeduponbetweentheAwardrecipientandtheGrantManager.Costs associatedwith this requirement shall be paid out of the project funding received by the Grantee from the Denali Commission. Page 15 of 21 |Appendix C_Grantee Proposal/Scope of work Describe work to be completed. Page 16 of 21 |Appendix D Project Management Requirements 1.Project Management The Grantee will notify the Authority immediately of any significant organizational changes during the term of the grant,including changes in key personnel or tax status,any unforeseen problem or project delay that may cause a change to the work plan or budget or that may otherwise affect the Grantee's ability to perform its commitments under this Grant Agreement. Any unreported or unapproved changes to the work plan or budget evident in reports may result in an amendment being required,costs disallowed,suspension or termination of the grant as described in Appendix A. 2.Contact Persons For the Grantee *For The Authority Grant Manager Grant Manager _"eButchWhite,Grants Administrator fo 813 W.Northern Lights Blvd. s..|Anchorage,Alaska 99503|bwhite@aidea.org aa (907)7'-3052 [Pay-to Constituent] [Address] [City],[ZIP Code][Country Code] Email &Phone Project Manager :Project Manager [Pay-to Constituent][Your Reference] [Address][City],[ZIP Code](Country Code)Email &Phone; -|813 W.Northern Lights Blvd. Anchorage,Alaska 99503 Email Phone 3.Documentationand Record KeepingTheGranteeshallmaintainthefollowingintheir files: Grant application, Grant agreement and any amendments, All written correspondence or copies of emails relating to the Grant, Reports,including any consultant work products, The Authority and any authorized federal representative may inspect,in the manner and at any reasonable time either considers appropriate,the Grantee's facilities,records,and activities funded by this Grant Agreement. Page 17 of 21 wTFwwewvvewewTwevwewwewwwwww|Attachment1 Notice of Substantial Completion '| NOTICE OF SUBSTANTIAL COMPLETION ALASKA ENERGY AUTHORITY Project Name:[Posting Description] Grantee:[Name][Name 2] Grant Number:[Buy-from Vendor No.] Agreement Execution Date: The Alaska Energy Authority certifies and acknowledges that the Project referenced above hasbeensubstantiallycompleted;with the following tasks remaining to be completed: Project Manager DateAlaskaEnergyAuthority The certifies that the Project namedaboveissubstantiallycompleteinaccordancewiththetermsandconditionsofAlaskaEnergy Authority Agreement Number:and assumes all responsibility associated with operating and maintaining the Project completed with Grant funds. Authorized Signature Title Printed Name Date Page 18 of 21 |Attachment 2 Notice of Project Closeout NOTICE OF PROJECT CLOSEOUT ALASKA ENERGY AUTHORITY Project Name:[Posting Description] Grantee:[Name][Name 2] Grant Number:[Buy-from Vendor No.] 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 thetermsandconditionsofAgreementNumber:_=: Project Manager Date Alaska Energy Authority i The 'sae certifies that theProjectnamedabove|is completein accordance with the terms and conditions of Alaska EnergyAuthorityAgreementNumber: Authorized Signature Title Printed Name Date Page 19 of 21 |Attachment 3 Waiver of Sovereign Immunity (if Required)'| WAIVER OF SOVEREIGN IMMUNITY RESOLUTION NUMBER A RESOLUTION OF THE [Name][Name 2]accepting State of Alaska,Alaska Energy Authority Grant number [Buy-from Vendor No.]for the [Posting Description]and waiving sovereign immunity from suit for actions arising out of,or in connection with,the Grant. WHEREAS,the Authority and the Denali Commission requires as a condition of the Grant that the [Name][Name 2]irrevocably waive any sovereign immunity which it may possess,and consent to suit against itself or its officClals as to all causes of action arisingoutoforinconnectionwiththeGrantAgreements:heNOWTHEREFOREBEITRESOLVEDTHAT: 1.[Name][Name 2](initials)hereby consents to suit by the State of Alaska and/or bytheDenaliCommissionagainst(initials)and its officialsin state court,federal court or inadministrativeproceedingswithrespecttoany.disputes,claims or causes of action (including without limitation.enforcement.or injunctive relief)arising out of or inconnectionwithGrantAgreement[Buy-from Vendor No.];the contractual duties assumed by (initials)under that agreement,the Covenant of Public Purpose,Use,andAccess,and any other:agreement pertaining to the grant-funded project;or theoperationofthefacilityfollowing¢construction. 2.(Initials).hereby 'consents.tolevy,execution,or garnishment against (initials)'srealandpersonalproperty,however held and wherever located,for any judgment ororderenteredinanylawsuitoradministrativeproceedingrelatedtoorarisingoutofGrantAgreement[Buy-from Vendor No.];the contractual duties assumed by (initials) under that agreement,the Covenant of Public Purpose,Use,and Access,and any other agreement pertaining to the grant-funded project;or the operation of the facility following construction,including,but not limited to,awards of attorneys fees and costs entered by any court. 3.(Initials)consents to the assertion by the State of any defenses,cross-claims,or counterclaims in any civil action that is filed by (initials)against the state. 4.With respect to a claim or action by a force account employee or other employee of (initials)arising out of or in connection with Grant Agreement [Buy-from Vendor No.];, the contractual duties assumed by (initials)under that agreement,the Covenant of Public Purpose,Use,and Access,and any other agreement pertaining to the grant- funded project;or the operation of the facility following construction,(initials)waives Page 20 of21 sovereign immunity to the extent of,and to the extent necessary to secure,insurance coverage including workers compensation insurance. 5.This waiver shall in no case be deemed a waiver or consent to suit,tax,or any other charge against (initials)by any party other than the State of Alaska or the Denali Commission,except as specifically provided in (4)above. 6.[Pay-to Constituent]is hereby authorized to negotiate,administer and execute on behalf of [Name][Name 2]Grant number [Buy-from Vendor No.]for the [Posting Description]and to negotiate,execute,and administer any other documents, agreements,and contracts required under or related to the Grant Agreement includingsubsequentamendments. PASSED AND APPROVED BY [Name][Name 2]On.20 IN WITNESS THERETO BY:SIGNATUREOF PRESIDENT | Signature Title. Attest:SIGNATURE OF CLERK/SECRETARY Signature Page 21 of 21 R&R AccountInformation How to Establish a Renewal and Replacement Account for Denali Commission Funded Public Infrastructure Background Under the guidelines of Denali Commission funding a bulk fuel facility 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 the establishment of a Renewal and Replacement (R&R)Account.An R&R account will provide a mechanism for the bulk fuel facility to save money for the inevitable renewal and replacement costs associated with the facility. Generally,the Business Operating Plan states:"The ...R&R account must be an interest-bearing savings account,which requires two signatories and a resolution from the governing body for withdrawals.When the cash balance of the R&R account makes an escrow account more cost effective (at least when the balance reaches $100,000);then the R&R account must be transferred to an interest-bearing invested escrow account that is acceptable to the Denali Commission.” General Guidelines of a Renewal and Replacement Escrow Account e Allows bulk fuel facility primary operator 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 governing body 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 (A copy of your year-end balance statement must be sent to the Denali Commission as part of your annual report) Financial Institutions for R&R Escrow Accounts The Denali Commission has negotiated terms with two Financial Institutions and the Alaska Municipal League/Joint Insurance Association 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. New Koliganek Village Council 1 R&R Account Information Alaska Municipal League/ First National Bank West Star Escrow Joint Insurance Association (City-owned facilities only) Manager First National Bank Manager AML/JIA Operations Center 1751 Gambell St. Anchorage,AK 99501 Phone:(907)777-3424 Fax:(907)777-3446 3201 C Street,Suite 112 Anchorage,AK 99503 Phone:(907)265-2160 Toll Free:1-888-859-3557 Fax:(907)265-2170 807 G Street,Suite 356 Anchorage,AK 99501 Phone:(907)258-2625 Fax:(907)279-3615 Web:http://(www.akmlL.org/ 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”.syAttachments: A.Sample Resolution Sign the Account Agreement for the institution. Pay set-up fee and fill out other general information to establish account. B.Sample Business Operating Plan Language C.Sample Business Operating Plan R&R Cashflow New Koliganek Village Council R&R Account Information 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 Governing Body To Withdraw Funds from The R&R Account BULK FUEL FACILITY: RESOLUTION NO. WHEREAS,the has established an 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 approved business plan for facility the primary operator,and other participants,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 hereby attests that the funds being requested from the 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 requests the total sum of $for the following detailed expenses Signed by two representatives, New Koliganek Village Council 3 R&R Account Information ATTACHMENT B EXAMPLE OF LANGUAGE IN DENAI COMMISSION FUNDED ENERGY FACILTIES 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. 1)O&M:The Primary Operator,and its lessees,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 Tabk C:Annual O@7M Costs and a narrative detail is provided in Section LX:Financial Information to address estimates and assumptions. 2)R&R:R&R costs are those expenses defined as items costing greater than $5,000 and/or that are not incurred on an annual basis.Tabk E: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,while the R&R account must be an interest-bearing,savings account.When the cash balance of the R&R account makes an escrow account more cost effective (at least when the balance reaches $100,000);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 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.Withdrawals from the R&R account of $5,000 and under will require two Council signatories;while withdrawals from the R&R account over $5,000 will require two Council signatories and a Council resolution.See AppendixA: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 August 31,the Primary Operator will develop a budget for the upcoming fiscal year,October 1st through September 30",for both O&M and R&R. Operations and Maintenance Guidelines The Primary Operator will maintain separate accounting records and maintain a sufficient O&M cash balance 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 LX:Financial Information provides Tabk C:Annual O@7M 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 LCMF, LLC,see Appendix B:O¢*M and Re>R Cost Estimate,carrent Council labor rates and costs of operating similar facilities. Renewal and Replacement Guidelines The Primary Operator will establish a Bulk Fuel Facility savings account or interest-bearing invested escrow account acceptable to the Denali Commission,which will ensure New Koliganek Village Council 4 R&R Account Information capitalization of an amount sufficient to maintain the R&R Schedule.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.Sectton LX:Financial Information provides Table E:40 Year Re@>R Schedule as a guide to plan for annual R&R activities,Table F:40 Year Re>R Cashflow as a guide to estimated yearly R&R required contributions,and Tabk G:Loan Schedule as a guide to Year 20 loan assumptions and payment schedule.These costs are based upon the R&R cost estimate provided by LCMF,LLC.,see Appendix B:O¢*M and Re>R Cost Estimate. At least annually,the Primary Operator will remit R&R funds to the financial institution or the administrator of the R&R account.Management and other fees charged by an escrow fund administrator will be automatically deducted from the R&R escrow account,according to an Escrow Agreement or other similar document. The Council will use the estimates in this Plan for year one contributions,and in subsequent ... y ...qyearswillrecalculatecontributionsbaseduponassetstobemaintainedasactuallybuilt. Annual Audit The Primary Operator will arrange for an annual financial audit,or financial review,that is conducted by a qualified,independent Certified Public Accountant.The auditors/reviewers are not required to travel to Koliganek unless the Primary Operator requests an on-site audit. The audit,or financial review,may be conducted in conjunction with other programs/activities managed by the Primary Operator.A copy of the annual audit,or financial review,must be provided to the Denali Commission,in conjunction with the Annual Report described below. Annual Reporting The Primary Operator will provide an annual report of operations to the Commission and the Alaska Energy Authority,within 90 days of the end of the Primary Operator's fiscal year, using the Commission's "Denali Commission Annual Report Form”.The annual report should include a summary description of O&M and R&R projections,annual O&M and R&R budgets and expenditures and other important project information.The Commission will review the reports and will actively monitor the Primary Operator's ability to operate consistent with guidelines outlined in this Plan. Right to Review and Access Books and Records 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. New Koliganek Village Council 5 R&R Account Information ATTACHMENT C BULK FUEL FACILITY 40 YEAR RENEWAL AND REPLACEMENT CASHFLOW Village Inflation Rate :Initial Cost per gallon ($/gallon): Reinvestment Rate :20 Year R&R:Annual increase : 20 Year Loan Proceeds:[7 Village Initial Throughput (gallons):NA NA Initial Throughput (gallons):Initial Cost per gallon ($/gallon): Loan Rate:NA Initial Throughput (gallons)Annual increase : Loan Term:NA Initial Cost per gallon ($/gallon): Annuat increase : R &R Fund Balance Assumed Throughput (Gallons)Per Galion Payment Beg.of Annual Deposit .Interest End ofYearYorPrincipal1pepeService|,Reme™#”|tsamings (Net Year Village NA NA Village NA Balance Village NA NA Total Received Replacements of Fees)Balance ao $-_|f 10,120 |$-1$7 {$10,120 |a Pn $-1$-|$10,120 _110,000 :-$=O92 TS -[8 2 $-:10,120]$=10,476 $-|$-|$10,476 $eS 304|$20,899 110,550]2 :$0.095|]$- -$ 3 $20,899 |$10,844 |$_-1$_|__-|$___10,844 $-|$627 |$32,370 111,103 --$0.098 |$:$- 4 $32,370 |$11,225 |$_-|$-2 |S.11,2254 $-|[$971 |$44,566 ;111,658 -|ee S$O1017$ -FS ---5 [1s 44566/$ 11620/$ --[$_-|$11,620 $3,684[$ _1,226|$53,728 112,217 :-f ls 0.104 |$-|s - 6 $53,728 |$12,028 |$-|$-1$12,028 $-1$1,612 |$67,368 142,778]-:$0.107 |$:$. 7 $67,368 |$12,451 |$_-i$_-1$12,451,EY -|$2,021 |$81,840 113,342 -[oe $0.110 |$:$ 8 $81,840 |$12,889 |$-|$-|$12,889 $-{$2,455]$97,184 113,908 :>$0.113 |$-$ 9 $97,184)$13,342 $-/$-!$13,342 $-|$2,916|$1113,441 -114,478 ||_--$0.117 |$-$ 10}|$__113,441 {$13,811 18 -|$=[$13,811 $43,143 1 $2,109|$86,217}|115,050]:-1|18 0.120 |$-_{$_ AL $86,217 |$14,296 |$-|$-|$14296,gd YS 2587]$103,100 115,625 -fo0 ee $0.124 |$-$ 12 $103,100 |$14,798 |$-|$__-{$14,798 es &.ee __3,093 $120,991 116,204 --$0.127|$-$ 13,$120,991 ]$15,319 |$-|$-|$15,319 _ $-|$3,630 |$$139,940 116,785 os :$0.131 [$=[$8] 14 $139,940]$15,857 |$-|$-|$15,857 $--[$4,198]$159,995 117,368 ::$ O135]/$ -4$ AS |YS 159,995]16,4141 $8|S IS 1644 §4,276 |$4,672 |$176,805 |J 117,955 |_ao "|4s 0.13918 os Se 16 $176,805 |$16,991 |$___-{$8 -|$16991 f -|$5,304|]$199,101,118,545 --$s 0.143 |$:$: AT $199,101 |$17,589 |$-|$-1$17,589 §-|$5,973 |$222,663 119,138 ::$0.148 |$--I$ 18 $222,663 ]$ 18207/$se -|B TS 18,207]es ee ©ee -|$_6,680]$247,549 119,734 :-$«0.152 |$:$: 19 ||s_247,549|$18,847|$-|$-{$18,847 $-|$7,426 |$273,823]|120,332 --|1$0.157 |$-|s - 20 $$273,823/$19,509/$=-|$- -|$ 19,509]$66,253]$110,421 |$4,902 |$254,066 120,934 -|_:$0.161 |$-$: 21 $254,066 |$20,195 |$-|$-[$20,195 $8,790|$-|]$7,622 |$273,093 121,539 :>$0.166 |$ee tee22$273,093 |$20,905 |$-[$-1$20,905 $8,790 |$-|$8,193 |$293,401 122,146 ||:-$0.171 |$:$: 23 $293,401 |$21,640 |$-|$-|$21,640 4s 8790/8 = -1$8,802]$315,053 122,757 :-$ O176/$8 =$ 24 $315,053 $22,400 |$-|$-|$22,400 $8,790 |$_-|$9,452|$338,116 123,371 --$0.182|$-$ 25 $338,116 1 $23,188 |$_-1$__-1$23,088]==ES 8790S -4,962]$9,995]$357,546 123,988 --$0187|$-$_ 26 $357,546 1 $24,003 |$-|$-|[$24,003 _fs 8,790 |$_._-]$___10,726]$383,486 124,608 ::$0.193|$-$- 27 $383,486 ]$24,847 |$-/$-1$24,847 $8,790|$:$11,505 |$411,048 ___125,231 -:$0.198 |$:$ 28 $411,048 |§$25,720 |$-|$-{$25,720 $8,790|$-[$12,331]$440,309 _125,857 -:$0.204 |$:$_ 29713 4440,309 ]$26,624 |§-/$-|$26,624 $8,790 1 $-|$13,209 |$471,353 ______126,486 -:$0.210 |$:$ 30 $471,353 |$27,560 |$-[$ -_-[$27,500)YS 8,7901$58108 ]$12,397 444,413 127,118 ::$O21I7|/$--I$ _ 31,$444,413 |$28,529 |$-|$-|$28,529 $-]$13,332 $s 486,274 127,754],se :$0.223 |$:$: 32 $486,274 |$29,531 |$-|$-1$29,531 $-|$14,588 [$530,393 128,393 -]_:$0.230 |$:$: 33 $530,393 |$30,569 |$-[$-|$30,569 $-{$15,912 |$-576,874 129,035 |-:$0.237|$-$- 34 $576,874 |$31,644 |$-|$-1$31,644 $-|$17,306 |$625,824 129,680 |-:$0.244|$:$: 35 $625,824 |$32,756 |$-([$-($32,756 $5,759 |$18,602 {§671,424 130,328 -oo $0.251 |$-$: 36 $671,424]$33,907 /$=-1 $-|$33,907 _$-|$20,143 {$725,474 130,980 :-$0.259 1 $:$- 37 $725,474 |$35,099 |$-{$-|$35,099 $-|$21,764 |$782,338 _____131,635 ::$O267;$--JS - 38 $782,338 )$36,333/$-|$-|$36,333 $-|$23,470 |$842,141 132,293 -_$ ---0.275 |$-$- 39 $842,141 ]/$37,610 /$-|3$-|$37,610 $ [$25,264]$905,015 132,954 -:$0.283 |$-yt - 40}{$905,015 15 38,9321 $-I$-1$38,932 $917,840 |$-1$26,107 133,619 --|[s 0.291 |$-{$s - New Koliganck Village Council R&R Account Information attsadi" -