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Sample Bulk Fuel Business Operating Plan Business Operating Plan Nowhere 2002
SAMPLE BULK FUEL BUSINESS OPERATING PLAN x ganSeety Business Operating Plan of the Nowhere Bulk Fuel Storage Project JANUARY 1,2002 City of Nowhere P.O.Box 1212 Nowhere,AK 99999 Phone:(907)999-9999 Fax:(907)999-9998 SAMPLE BULK FUEL BUSINESS OPERATING PLAN APPENDIX A:PRIMARY OPERATOR STATEMENT OF QUALIFICATION APPENDIX B:O&M AND R&R Cost ESTIMATE ADDITIONAL RELATED AND ATTACHED DOCUMENTS 1.O&M AGREEMENT 2.SECONDARY OPERATOR AGREEMENT 3.SITE CONTROL DOCUMENTS 4.GRANT AGREEMENT 5.R&R FUND ACCOUNT --SAMPLE DOCUMENTS City of Nowhere Bulk Fuel Facility Business Operating Plan Page 1 of 26 TABLE OF CONTENTS PAGE I.EXECUTIVE SUMMARY .....sssssssserssenoneeeee 2 Document Interrelationships 2 TI.BACKGROUND «......ccccssssssssssrcnccsrsnsnverssssssssssseccscsesccsscseesseesseeseeeeaeessanannnnennsnsssscsscsscacaacesssesececosonscooees 3 Selected Statistics -Nowhere 3 TIT.FACILITY UPGRADE .......ccceccsseesceneeneens wwe 4 Bulk Fuel Storage Facility Description 4 Project Exclusions 4 Community Site Plan and Details 5 Bulk Fuel Storage Facility Capacity 7 TV.FACILITY PARTICIPANTS..........ccscccsscsssssossseccscsssnncsccssssessasensssccccceesscecesesasssasnonsanaccoosesccesssansnnsaessesses 8 Participant Contacts 8 Facility Component Ownership 8 Vv.PRIMARY OPERATOR.......ccccsssseesssneeee 9 Turnover and Assumption of Responsibilities /Sustainability 9 Staffing and Training 9 Financial Responsibilities 10 Operations and Maintenance Guidelines 10 Renewal and Replacement Guidelines 12 Audits and Reporting.12 VI.SECONDARY OPERATOR .....ssssse0e0 ..3 VII.INSURANCE.....ssccscscssorcssenscsscasssssenssnsesssssscensosessncessessassssessseosssssssosoassssoaseseesessesnecesnseeseeoeees 14 VIII.REGULATORY COMPLIANCE .........csssscesscssssnsccscscessvcvccssossnnnecssssscsssasesssscnenacccoees 15 TX.FINANCIAL INFORMATION .....ssceeeeeresesees ..16 Key Financial Assumptions 16 Key Operating Assumptions 16 Explanation of Financial Terms .......ssssssssssssesssenssssssnsensesenssensensenssenecaseneenteneears 16 Bulk Fuel Facility Funding 17 Subsequent Operating Year Revisions 17 TABLES Table A:Participant Allocation 18 Table B:Annual O&M Schedule 19 Table C:40 Year O&M Cash flow.....sscssscssssssssssssssssssessesesesssecssecsssssssaseeseeaneeneesssenessscesseaneesecanecaseanecssceasennenss 20 Table D:40 Year R&R Schedule 21 Table E:40 Year R&R Cashflow 22 Table F:Loan Schedule 24 Table G:Summary of Facility Expenses to Participants 25 Plan Narrative SAMPLE BULK FUEL BUSINESS OPERATING PLAN I.EXECUTIVE SUMMARY This Business Operating Plan (the "Plan”)provides a guideline for the City of Nowhere's (the "City”)maintenance,operation and sustainability of a new Bulk Fuel Storage Facility (the "Facility”). The City will be responsible to operate and maintain the newly installed Facility and to ensure its ongoing sustainability.This plan has been developed to assist the City with that effort:it estimates operation and maintenance needs and costs,estimates renewal and replacement needs and costs,and a per gallon surcharge for fuel.The surcharge should be reviewed and recalculated annually. The Bulk Fuel Upgrade Project will construct a new Bulk Fuel Storage Facility in Nowhere that will reuse or replace all of the existing storage facilities of the City and School.The City will utilize its facility assets to operate City owned utilities and will directly retail fuel. Upon construction,the Facility will be turned over to the management of the City (the "Primary Operator”)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,AEA will provide written notice (Certificate of Substantial Completion)that the Facility is ready for Beneficial Occupancy.Upon receipt of this Certificate,the City will become the Primary Operator and will assume responsibility for the use,day-to-day operations,and long-term maintenance of all Facility components,except those noted elsewhere in the plan.When the Project has been completed (the Facility is complete, crews have demobilized,invoices have been paid and there are no outstanding issues),the AEA will issue,through its Grants Manager,a Notice of Project Completion.This Notice is included in the Grant Agreement;see Additional Related and Attached Documents. This Plan focuses on wholesale operations only.Additional costs that will be borne by the end-user include fuel costs and other retail operation and maintenance costs (defined later in this Plan). These additional costs are not part of this Plan.See Table G:Summary of Facility Expenses to Participants for the estimated per gallon fuel surcharge. Document Interrelationships The Business Operating Plan is a plan,not an agreement.Attached to this Plan are: O&M Agreement Secondary Operator Agreement Site Control Documents Grant Agreement Invested Escrow Agreement The O&M Agreement and the Secondary Operator Agreement reference the Plan,and include language requiring the plan be followed.The Plan takes effect after these agreements are executed. Acceptance of the Plan by execution of these Agreements is pre-requisite to funding from the Denali Commission (the "Commission”),which will be provided through a separate Grant Agreement (See Attachments). City of Nowhere Bulk Fuel Facility Business Operating Plan Page 2 of 26 SAMPLE BULK FUEL BUSINESS OPERATING PLAN II.BACKGROUND The Denali Commission was established by the Federal Government to fund improvement projects within the State of Alaska,including the Bulk Fuel Upgrade Project.The Alaska Energy Authority is a state-owned corporation that assists in the development of safe,reliable,and environmentally sound energy systems for Alaska's communities.AEA will coordinate the planning,construction and funding of the Nowhere Bulk Fuel Facility,which is to be partially funded by the Commission. The village of Nowhere is located in southcentral Alaska on the Westside of Cook Inlet, approximately 46 air miles west of Anchorage.Transportation to the village is by air or water,and the river is generally ice-free from June through October.Currently,Nowhere has a 3,500-foot gravel airstrip that the State of Alaska,Department of Transportation and Public Facilities maintains. The population of Nowhere,predominantly Athabascan,has remained relatively stable for the past thirty years and the economy of the area is primarily focused on commercial fishing and subsistence activities.All 80 households and facilities use individual wells,and,all but four,are either connected to a piped sewage system or use septic tanks. The City provides most utility services;it owns and operates the washeteria,health clinic,wastewater utility,electric utility and cable utility.The City operates all of these utilities as enterprise activities. Selected demographic and historical data for the community is provided below: Selected Statistics -Nowhere Population 2000 200 1990 159 1980 134 1970 112 1960 94 1950 88 Housing (2000 Data) Occupied Housing 80 Vacant Housing Due to Seasonal Use 10 Other Vacant Housing 4 Economic Data (1990 Data) Unemployment Rate 25.5% Median Household Income $15,250 City of Nowhere Bulk Fuel Facility Business Operating Plan Page 3 of 26 SAMPLE BULK FUEL BUSINESS OPERATING PLAN III.FACILITY UPGRADE The Bulk Fuel Upgrade Project will construct a new Bulk Fuel Storage Facility in Nowhere that will replace all of the existing storage facilities of the City and the Nowhere Area School District (NASD)(collectively referred to as the "Participants”. Bulk Fuel Storage Facility Description The AEA contracted with Acme Engineering,Inc.to develop a Conceptual Design Report (CDR), which was submitted to AEA on December 15,2001.The purpose of the CDR is to provide a concept design and construction cost estimate for consolidation and upgrade of bulk fuel storage in the community,which are referenced in this Plan.This Plan is predicated upon the information contained in the CDR and its acceptance by the community. The new Facility will be located just south of the airport and in close proximity to the existing facility.The Facility will consist of a single pad and dike with both the City and NASD facilities located within the dike. Project Exclusions Neither AEA nor the Commission will take responsibility for the following,which are not a part of this project: e Abandonment or decommissioning of existing tanks ©Retail business:including licenses,revenue,prices,taxes,profits,or contributions to the wholesale fuel storage program e Environmental cleanup The AEA and the Commission will not provide any guarantees,warrantees or ongoing support, other than that which is defined in the Plan.However,manufacturer warranties will be transferred at the time of project turnover (defined in Section V.Primary Operator). See the following diagrams for the tank farm and retail dispenser site plans and details of the Facility: City of Nowhere Bulk Fuel Facility Business Operating Plan Page 4 of 26 SAMPLE BULK FUEL BUSINESS OPERATING PLAN Community Site Plan M RIVER N mower BULK FUEL STORAGE ==es Devarpentof Coninty ott Eomic DriemantDESCHEDBFOTE:*,ADEA/AEA ALASKAPLEWMESHEETOFnergy=me COMMUNITY SITE PLAN i oN.ofalSoeSoe.JEALASKA 1 City of Nowhere Bulk Fuel Facility Business Operating Plan Page 5 of 26 SAMPLE BULK FUEL BUSINESS OPERATING PLAN 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 _Primary Storage/Dispensing Number Per Tank Gallons (Net)(Net) City Diesel Primary Storage 2 24,300 48,600 Primary Storage 2 9,000 18,000 Subtotal Diesel 4 66,600 Gasoline Primary Storage 1 24,300 24,300 Dispensing 1 3,600 3,600 Subtotal Gasoline 2 27,900 Total City 6 94,500 Nowhere Area School District Diesel Primary Storage 1 10,800 10,800 Intermediate Storage 1 3,600 3,600 Total NASD 2 14,400 Total Primary Storage /Dispensing 8 108,900 Gallons Total Day Tanks Number Per Tank Gallons NASD -Diesel 2 100 200 Total Day Tanks 2 200 Pipeline Components Number Marine Header 1 Filler Pipelines 2 Pipeline to School 1 Pipeline to Power Plant 1 Pipeline to retail dispenser 1 Single-fuel retail dispenser 1 Each participant'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. However,if annual fuel requirements increase to levels above planned storage capacity,the tank farm can be expanded or multiple fuel deliveries can be made each year. City of Nowhere Bulk Fuel Facility Business Operating Plan Page 6 of 26 SAMPLE BULK FUEL BUSINESS OPERATING PLAN IV.FACILITY PARTICIPANTS The Facility participant is: City of Nowhere Primary Contact Name:Joe Swith,City Administrator Phone:(907)999-9999 Fax:(907)999-9998 Address:City of Nowhere,P.O.Box 1212,Nowhere,AK 99999 Usage:The City will utilize its facility assets to operate its utilities and to retail fuel. Nowhere Area School District Primary Contact Name:Jane Smith,Maintenance Director Phone:(907)999-9997 Fax:(907)999-9996 Additional Contact Name:Mary Jones,Superintendent Phone:(907)999-9995 Fax:(907)999-9994 Address:NASD District Office,P.O.Box 1211,Nowhere,AK 99999 Usage:The NASD will utilize its facility assets to operate its physical plant and will not directly retail fuel. Each Facility Participant will be responsible for the Operation and Maintenance ("O&M”)and Renewal and Replacement ("R&R”)of its own facilities and all associated costs.There are, however,certain facilities that are common to all Participants (the "Common Facilities”),and while the Primary Operator will be responsible for the O&M of these facilities,all Participants will be responsible for funding the O&M and R&R costs of Common Facilities.The allocation factors used are based upon the percentage of overall fuel storage capacity owned by each Participant. Initial estimates of Participant cost allocations are provided in Section IX:Financial Information, Table A:Participant Allocation.The Participants in the Facility have clearly defined rights to the land used by the Facility,as detailed in the attached Site Control Documents. Facility Component Ownership Ownership of the Facility is divided among the following: e City of Nowhere e NASD ©Common Facilities That specific portion of the Facility that is owner by each of these entities is defined by the following diagram and by the Cost allocation column of the Participant's Operations and Maintenance Responstbikties table on page 11.A cost allocated to the City defines the City as Owner of that component,a cost allocated to the NASD defines the NASD as the Owner of that component,and a cost defined as "Shared”defines that the component is a Common Facility and that Ownership is shared as a percentage of capacity. City of Nowhere Bulk Fuel Facility Business Operating Plan Page 7 of 26 SAMPLE BULK FUEL BUSINESS OPERATING PLAN Piping Plan and Tank Schedule TANK SCHEDULE (CAPACITY IN GALLONS)TANK #|NEW |PREVIOUS|TANK SIZE |CATEGORY|TYPE [#1 DIESEL]#2 OIESEL]GASOUNEOWNER|OWNER Gross |Gross |GROSScCay7K27,000 EW |BULK 27,000 C2 CITY N/A 4,000 NEW OISP.4,000 C3 CY N/A 27,000 a BULK 27,0004CIYN/K 7,000 1 NEW [BULK |27,000cS[olund Cry 0,000 |REFURG.[BULK 70,000 C6 CITY Ciy 0,000]REFURB.|BULK 10,000 CITY STORAGE TOTAL 54,000|20,000]31,000 Si oD |CIY_T T2000 REFURB.J BULK |12,000C7nS)|N/A 4.000T NEW TIWTERT 4.000 w5D SCHOOL STORAGE TOTAL 16,000 PROJECT GROSS STORAGE CAPACITY BY PRODUCT 70,000]20,000|31,000 0.0.1.PROPERTY UNE PROECT TOTAL GROSS STORE CAPACTIY 121,000ENPROVECTTOTALNETSTORAGECAPACITY(90%OF GROSS)108,900 _- re F BELOW GME CASOLIE WD OESEL FL +t PIPELINESTOMARIEHEADER PROVE:=.DRAWH BY:SNE:1°=20"Stote of Aiogka7ft&y ”:BULK FUEL STORAGE =le te,Devartzent of ADEA i caFREWANE'SHEET OF AD.EAL!t ASPIPINGPLAN&TANK SCHEDULE coe eee 4 1 "7 SM ectoroge,noc Wacas =©ae MAAGY City of Nowhere Bulk Fuel Facility Business Operating Plan Page 8 of 26 SAMPLE BULK FUEL BUSINESS OPERATING PLAN V.PRIMARY OPERATOR The Primary Operator for the Nowhere Bulk Fuel Storage Facility is the City.A detailed statement of qualifications for the Primary Operator is included as Appendix A:Primary Operator Statement of Qualification. Turnover and Assumption of Responsibilities /Sustainability The Facility will be turned over to the Primary Operator after the satisfactory completion,as determined by AEA or its representative,of a 14-day test period.After this test period,AEA will provide written notice (Certificate of Substantial Completion)stating that the Facility is ready for Beneficial Occupancy.Upon receipt of this Certificate,the City will become the Primary Operator and will assume responsibility for the use,day-to-day operations,and long-term maintenance of all Facility components,except those noted elsewhere in the plan. When the Project has been completed (the Facility is complete,crews have demobilized,invoices have been paid and there are no outstanding issues),the AEA will issue through its Grants Manager a Notice of Project Completion.This Notice is included in the Grant Agreement;see Additional Related and Attached Documents. The Primary Operator is responsible for the long-term sustainability of the Facility for the benefit of the local community.The complete Facility will be maintained according to guidelines outlined in this plan,all manufacturers'recommendations for maintenance,and all State and Federal laws,codes and regulations governing operation.The Primary Operator is responsible for the transfer of fuel and no costs for this activity are included in the Plan. The Primary Operator is responsible to establish and manage accounts for O&M and R&R to ensure that sufficient financial resources exist to sustain the Facility as specified in the Plan. Staffing and Training The Primary Operator will designate an Operations and Maintenance Manager (the "Manager'')for the Facility.The Manager will be the point of contact for communications between the Primary Operator,the Commission and all other interested parties.The Primary Operator will name the Manager prior to the start of operation and will inform the Commission in a timely fashion whenever a Manager is to be replaced.The Manager will manage the Primary Operator's enterprises and will be given complete responsibility for operating the Facility in compliance with this Plan. It is recognized that there will be,from time to time,turnover in various operational,maintenance and administrative positions.Because all functions are essential to the successful operation of the Facility,replacements will be recruited and trained as necessary.The Manager will be responsible for maintaining adequate staffing and training at all times.When the Primary Operator lacks trained operators and administrative staff,training will be obtained to ensure sustained Facility operation. The Primary Operator will utilize training programs offered by AEA,the Alaska Vocational Technical Center (AVTEC)in Seward,the Commission and other training programs. City of Nowhere Bulk Fuel Facility Business Operating Plan Page 9 of 26 SAMPLE BULK FUEL BUSINESS OPERATING PLAN Financial Responsibilities There are two cost categories that will be incurred in the ongoing operation and upkeep of the Facility -O&M and R&R. The Primary Operator will incur a number of expenses relating to the O&M of the Facility.O&M items are defined as expenses that are incurred on a regular basis (administration,audits,etc)and maintenance expenses that are incurred on an annual basis.O&M expenses are detailed in Tab/e B: 'Annual O@M Schedule and a narrative detail is provided in Section LX:Financial Information to address estimates and assumptions.Certain Facility components are common to all Participants,and the O&M costs of these items will be properly allocated,prorated according to fuel storage capacity to all Participants as defined in Tabk A:Participant Allocation. R&R costs are those expenses defined as items costing greater than $5,000 and/or that are not replaced on an annual basis.Tabée D:40 Year RC*R Schedule details the anticipated items,the frequency of their replacement and their present day value.Certain Facility components are common to all Participants,and the R&R costs of these items shall be properly allocated,prorated according to fuel storage capacity,to all Participants as defined in Tab/e_A:Participant Allocation. Participants will make annual O&M and R&R contributions on a mutually agreeable date,as specified in the attached O&M Agreement.The contribution will be made directly to the Primary Operator,which will deposit contributions into separate accounts.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 an interest-bearing,managed savings account, which requires two signatories and a community resolution for withdrawals,until such time as the cash balance makes an escrow account more cost effective;then the R&R account must be transferred to an interest-bearing invested escrow account that is acceptable to the Denali Commission.The Manager will be authorized to draw against the O&M funds for routine expenses of the Facility,however individual expenditures in excess of $5,000 will require the authorization of the Primary Operator's management or governing body.See Appendix A:Statement ofQualifications for an overview of the Primary Operator's fiscal controls and accounting procedures. At least once a year,no later than December 31,the Primary Operator will develop a budget for the upcoming calendar year,January 1 through December 31,for both O&M and R&R,and will distribute copies to each participants. Operations and Maintenance Guidelines The Primary Operator will establish an active non-interest bearing account for the Facility O&M so that the O&M schedule can be completed and the Facility operations can be sustained into the future.Section LX:Financial Information provides Table B:Annual O@7M Schedule as a guide to plan for annual maintenance activities and Table C:40 Year OC7M Cashflow as a guide to estimated yearly O&M required contributions.These costs are based upon the O&M cost estimate provided by HMS,Inc,see Appendix B:O&M and R&R Cost Estimate. The Primary Operator of the Facility will be responsible for the majority of the O&M of the Facility. The NASD will be responsible for the O&M of its facilities,and as such,these costs are not included as part of this Plan.The Primary Operator will be responsible for the O&M of the City facilities and for facilities that are common to both Participants,as identified below: City of Nowhere Bulk Fuel Facility Business Operating Plan Page 10 of 26 SAMPLE BULK FUEL BUSINESS OPERATING PLAN Participants'Operation and Maintenance Responsibilities Participant System Information System City NASD Total Tank volume,gross 101,000 12,000 Dispenser volume,gross 4,000 Intermediate tanks 4,000 Subtotals 105,000 16,000 121,000 Pro-ration 86.8%13.2%100% #tanks 6 2 8 #pumps 3 1 3 #valves 21 21 Responsibility for Performing the Work (an "X"means responsible) HMS Cost Category Task City NA NASD Allocation Method O&M 1 {Ground Maint.X Shared cost,prorated by gross volume 2 _Fuel delivery xX Shared cost,prorated by gross volume Minor repairs,city Xx City only contributes Minor repairs,school Xx School only contributes Pressure test,all tanks in tank farm Xx Shared cost,prorated by gross volume 3__{Training Xx Shared cost,prorated by gross volume Administration Xx Shared cost,prorated by gross volume Supervision x Shared cost,prorated by gross volume Annual audit x Xx Shared cost,prorated by gross volume Insurance,city &village Xx Shared cost,prorated by gross volume Insurance,school xX School only contributes Repairs 1A_{Repair fence xX Shared cost,prorated by gross volume 1B_iGrade pads Xx Shared cost,prorated by gross volume Repair steps &landings xX Shared cost,prorated by gross volume 2A _(Replace pumps,city X City only contributes Replace pumps,school xX School only contributes Replace valves &gauges,city x City only contributes Replace valves &pauges,school xX School only contributes 2B _Barge fill line manifold repair xX Shared cost,prorated by gross volume (Tank fill line manifold Xx Shared cost,prorated by gross volume 3 _Electrical maintenance x Shared cost,prorated by gross volume Replacement ; 1A_|Fence replacement X Shared cost,prorated by gross volume 1B_Pad,dike,steps replace xX Shared cost,prorated by gross volume Liner replacement X Shared cost,prorated by gross volume 2A_|Dispensers,replacement x City only contributes 'Tanks,replacement,city Xx City only contributes Tanks,replacement,school xX School replaces own Dispensing tanks X City only contributes 2B Barge pipe &supports,replace xX Shared cost,prorated by gross volume Dispensing lines,replace x City only contributes Fuel transfer lines,replace,city xX City only contributes Fuel transfer lines,replace,school Xx School only contributes Valves-barge &tank lines,replace,city X City only contributes Valves-barge&tank lines,replace,school School only contributes 2C_{Tank inspection,city x City only contributes (Tank inspection,school x School only contributes 3__|Electrical replacement,city xX City only contributes Electrical replacement,school X School only contributes City of Nowhere Bulk Fuel Facility Business Operating Plan Page 11 of 26 SAMPLE BULK FUEL BUSINESS OPERATING PLAN Renewal and Replacement Guidelines The Primary Operator will establish a Bulk Fuel Facility managed 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 and Year 40 will be funded 40%from the R&R account and 60%from debt financing,at 5.5%over 10 years.Section VII:Financial Information provides Table D:40 Year R¢*R Schedule as a guide to plan for annual R&R activities,Table E:40 Year RR Cashflow as a guide to estimated yearly R&R required contributions,and Tabée F:Loan Schedules as a guide to Year 20 and Year 40 R&R loan assumptions and payment schedules.These costs are based upon the R&R cost estimate provided by HMS,Inc,see Appendix B:O&M and R&R Cost Estimate. When applicable,the Primary Operator will periodically remit R&R funds to the administrator of its R&R escrow account,according to guidelines to be established by the Denali Commission. Management and other fees charged by the escrow fund administrator will be automatically deducted from the Primary Operator's R&R escrow account,according to an Escrow Agreement or other similar document. The Participants will use the estimates in this Plan for year one contributions,and in subsequent years will recalculate contributions based upon assets to be maintained as actually built. Audits and Reporting The Primary Operator will arrange for an annual financial reconciliatory audit that is conducted by qualified,independent auditors at their office.The auditors will not travel to Nowhere unless the Primary Operator requests an on-site audit.The Primary Operator will provide an annual report of operations to the Commission that includes a summary description of O&M and R&R projects, annual O&M and R&R budgets and expenditures,a projection of future O&M and R&R cash flows, and any other information appropriate to the Facility.The Commission will review the reports and the annual financial reconciliatory audits of Facility operations and will actively monitor the Primary Operatot's ability to operate consistent with guidelines outlined in this Plan.The Commission has reserved the right to visit the site and to access all books and records related to the Facility at any time upon written request. City of Nowhere Bulk Fuel Facility Business Operating Plan Page 12 of 26 SAMPLE BULK FUEL BUSINESS OPERATING PLAN VI.SECONDARY OPERATOR The Secondary Operator for the Buckland Bulk Fuel Facility project is yet to be determined. TBD Primary Contact Name: Phone:Fax: Address: See the attached Secondary Operator Agreement for details. City of Nowhere Bulk Fuel Facility Business Operating Plan Page 13 of 26 SAMPLE BULK FUEL BUSINESS OPERATING PLAN VII.INSURANCE The Primary Operator is required to be insured for General Liability Insurance,which is estimated to be 10 cents/gallon based on the City throughput.The Primary Operator will include the cost of General Liability Insurance in the annual O&M costs. The Nowhere Area School District is considered self-insured and thus will not contribute to any insurance costs for its facilities. City of Nowhere Bulk Fuel Facility Business Operating Plan Page 14 of 26 SAMPLE BULK FUEL BUSINESS OPERATING PLAN 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 Participants 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 each Participant 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,maintaining the proper records,and conducting periodic spill drills. The Primary Operator shall ensure the plans are approved,maintained,and updated in accordance with Coast Guard and EPA requirements described in the plans. The Primary Operator will receive initial spill response training pursuant to the above referenced plans.A training class will be held on or about the time of the completion.Designated spill responders and representatives of the Primary Operator shall attend the training. City of Nowhere Bulk Fuel Facility Business Operating Plan Page 15 of 26 FinancialInformation SAMPLE BULK FUEL BUSINESS OPERATING PLAN IX.FINANCIAL INFORMATION All estimates and assumptions contained in this Plan are preliminary and are anticipated to change as the Project progresses.Actual expenses may vary throughout the life of the Facility and these estimates should not be considered final. Key Financial Assumptions Annual inflation rate of 1.5%. Annual investment rate of 3%. Provision for insurance is estimated to be 10 cents/gallon of City throughput. Year 20 and Year 40 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 may be deposited into an interest bearing invested escrow account.Fees are assumed to be 1%. e Detailed assumptions regarding labor rates,required labor hours,and other operating costs are provided in the tables that follow. e Annual expenses equal annual revenues. e Existing debt,or other obligations,of the bulk fuel Facility are not included in this Plan. Key Operating Assumptions e NASD is assumed to be responsible for the O&M and R&R of its own facilities. e NASD will pay its proportionate share of O&M costs and R&R costs of Common Facilities. e O&M Expenses associated with Common Facilities will be allocated to each participant based on its share of installed primary storage capacity. e R&R Expenses associated with Common Facilities will be allocated to each participant based on its share of installed primary storage capacity. e Retail operations,or its profits,are not included in the Plan. Explanation of Financial Terms e Common Assets -Facility assets common to all Participants,which are shared proportionately. e Proprietary Assets -Facility assets that are owned by individual Participants and not shared among the Participants. e Primary Operator Assets --The combination of Proprietary Assets owned by the Primary Operator and Common Assets that are the responsibility of the Primary Operator. e Throughput -The annual estimated gallons of fuel that will flow through the Facility. e Initial annual throughput estimates:Retail Sales 35,000 gallons/diesel and 25,000 gallons/gasoline;Utility consumption 25,000 gallons/diesel,NASD 15,000 gallons/diesel. e Throughput is estimated to grow annually at a rate of .75%for diesel and .25%for gasoline for City consumption and to remain steady for NASD consumption. City of Nowhere Bulk Fuel Facility Business Operating Plan Page 16 of 26 SAMPLE BULK FUEL BUSINESS OPERATING PLAN Bulk Fuel Facility Funding This Plan is not a commitment to provide project funding;however,it is anticipated that project funding will be provided by the U.S.HUD,ICDBG funding and the Denali Commission. Subsequent Operating Year Revisions Starting with the second year,as operating experience specific to this Facility is obtained,the projections and assumptions upon which the plan is based will be reviewed and modified.The following guidelines are for use in subsequent operating years in updating and modifying plan projections and assumptions: Step 1:Review previous years'O&M and R&R costs and compare to current projections Step 2:Adjust O&M and R&R projections and assumptions based upon actual experience Step 3:Recalculate Participant Share of annual O&M costs Step 4:Recalculate City per gallon O&M costs based upon updated throughput estimates,while the NASD should recalculate their O&M costs Step 5:Recalculate Participant payments to R&R Fund Step 6:Recalculate City per gallon R&R costs based upon updated throughput estimates,while the NASD should recalculate their R&R costs Step 7:Recalculate total City per gallon fuel costs City of Nowhere Bulk Fuel Facility Business Operating Plan Page 17 of 26 SAMPLE BULK FUEL BUSINESS OPERATING PLAN TABLE A PARTICIPANT ALLOCATION Participant 1 City Participant 2 NASD Participant 3 NA City NASD NA Total Primary Capacity (Net)Gallons 91,800 18,000 0 109,800 Percentage 83.6%16.4%0.0%100% Initial Throughput Gallons 85,000 15,000 0 100,000 Volumes Percentage 85%15%0%100% %Share of O&M and R&R on Common Assets 83.6%16.4%0%100% (based upon Primary Capacity) City of Nowhere Bulk Fuel Facility Business Plan Page 18 of 26 SAMPLE BULK FUEL BUSINESS OPERATING PLAN TABLE B ANNUAL "O and M"SCHEDULE Rate Per Fringe Total Hourly Position Hour Rate Cost Duties Operator 1 $17.00 19.0%$20.23 Maintenance Bookkeeper $15.00 12.0%$16.80 Invoicing,Fuel Quantity Tracking Facility Manager $20.00 12.0%$22.40 Manager,Denali Commission Reporting Annual O&M Costs: Labor Costs Participant Share City NASD NA Hours/Hourly Monthly Annual City +Common Labor:Month Cost Cost Costs Common Only Operating Labor Operator 1 13.00 $20.23 $262.99 Subtotal Operating Labor 13.00 $262.99 $3,156 $2,589 |$567 |$- Administrative Labor Bookkeeper 8.00 $16.80 $134.40 Facility Manager 6.00 $22.40 $134.40 Subtotal Administrative Labor 14.00 $268.80 $3,226 $862,554 1 $672 - Materials: Materials &Equipment Rental $800 $800 |$-- Other Costs:- Training (Lump Sum)$900 ||$720 |$180 - Annual Inspection/Pressure Testing $3,750 $3,150 |$600 - Annual Off-Site Audit (Lump Sum)$2,000 $1,700 |$300 - Insurance $8,500 $8,500)$-- Total Annual O&M Costs $22,331 $20,03 |$2,318 $- City of Nowhere Bulk Fuel Facility Business Operating Plan Page 19 of 26 SAN BULs ruEL BUSINES 'RA'LLNG PLAN TABLE C 40 YEAR "O and M"CASHFLOW Hos Inflation Rate Annual O&M_Expense Assumed Throughput (Gallons)Per Gallon O&M Payment City Year City NASD NA Toul ;;NASD NA City NASD NADiesel.Gasoline}Total CityConsumption|Consumption 1 $22,331 |$2,318 |$-|$24,650 60,000 25,000 85,000 15,000 :§0.263 |$O15 ]$- 2 $22,666 |$2,353 |$-|$25,020 60,300 25,063 85,363 15,000 -$0.266 |$0.16 ]$- 3 $23,006 |$2,389 |$-|$25,395 60,602 25,125 85,727 15,000 :$0.268 |$0.164$: 4 $23,352 |$2,424 |$-|$25,776 60,905 25,188 86,092 15,000 -$0.271 |$0.16 7$- 5 $23,702 |$2,461 |$-|$26,163 61,209 25,251 86,460 15,000 -$0.274 |$0.164$- 6 $24,057 |$2,498 |$-|$26,555 61,515 25,314 86,829 15,000 -$0.277 |$O17 4$- 7 $24,418 |$2,535 |$-|$26,953 61,823 25,377 87,200 15,000 -$0.280 |$0.17 4$- 8 $24,784 |$2,573 |$-|$27,358 62,132 25,441 87,573 15,000 :$0.283 |$O174$: 9 $25,156 |$2,612 |$-|$27,768 62,442 25,504 87,947 15,000 :$0.286 |$O174$: 10 $25,534 |$2,651 |$-|$=28,185 62,755 25,568 88,323 15,000 -$0.289 |$0.18 |§$- 11 $25,917 |$2,691 |$-|$28,607 63,068 25,632 88,700 15,000 :$0.292 |$0.184 $- 12 $26,305 |$2,731 |$-|$29,036 63,384 25,696 89,080 15,000 :$0.295 |$0.18 4$: 13 $26,700 |$2,772 |$-|$29,472 63,701 25,760 89,461 15,000 -$0.298 |$0.18 T $: 14 $27,100 |$2,814 |$-|$29,914 64,019 25,825 89,844 15,000 :$0.302 |$O19 1$: 15 $27,507 |$2,856 |$-|$30,363 64,339 25,889 90,229 15,000 -$0.305 |$0.19 1$- 16 $27,920 |$2,899 |$-|$30,818 64,661 25,954 90,615 15,000 :$0.308 |$O19 9$: 17 $28,338 |$2,942 |$-1$31,280 64,984 26,019 91,003 15,000 -$0.311 |$0.201$- 18 $28,763 |$2,986 |$-1$31,750 65,309 26,084 91,393 15,000 -$0.315 |$0.20 1 $- 19 $29,195 |$3,031 |$-}$32,226 65,636 26,149 91,785 15,000 :$0.318 |$0.20]$- 20 $29,633 |$3,077 |$-4{$32,709 65,964 26,215 92,179 15,000 -$0.321 |$0.21 1$- 21 $30,077 |$3,123 |$-|$33,200 66,294 26,280 92,574 15,000 -$0.325 |$0.2115 - 22 $30,528 |$3,169 |$-|$33,698 66,625 26,346 92,971 15,000 -$0.328 |$0.21 |$- 23 $30,986 |$3,217 |$-|$34,203 66,958 26,412 93,370 15,000 -$0.332 |$0.21 1 $- 24 $31,451 |$3,265 |$-|$34,716 67,293 26,478 93,771 15,000 :$0.335 |$0.22 1$- 25 $31,923 |$3,314 |$-|$35,237 67,630 26,544 94,174 15,000 :$0.339 |$0.22 |$- 26 $32,402 |$3,364 |$-|$35,766 67,968 26,610 94,578 15,000 :$0.343 |$0.221 $- 27 $32,888 |$3,414 |$-|$%36,302 68,308 26,677 94,984 15,000 -$0.346 |$0.23 1$- 28 $33,381 |$3,466 |$-|$36,847 68,649 26,744 95,393 15,000 -$0.350 |$0.23 |$- 29 $33,882 |$3,518 |$-|$37,399 68,992 26,810 95,803 15,000 :$0.354 |$0.23 1 $: 30 5 34,390 |$3,570 |$-|$37,960 69,337 26,877 96,215 15,000 5 $0.357 |$0.241$- 31 $34,906 |$3,624 |$-]|$38,530 69,684 26,945 96,629 15,000 -$0.361 |$0.241$- 32 $35,429 |$3,678 |$-[$39,108 70,032 27,012 97,044 15,000 :$0.365 |$0.25 4$: 33 $35,961 |$3,734 |$-|$39,694 70,383 27,079 97,462 15,000 :$0.369 |$0.25 1$- 34 $36,500 |$3,790 |$-|$40,290 70,735 27,147 97,882 15,000 -|45 0.373 |$0.25 1$: 35 $37,048 |$3,846 |$-|$40,894 71,088 27,215 98,303 15,000 -$0.377 |$0.26 1$- 36 $37,604 |$3,904 |$-|$41,508 71,444 27,283 98,727 15,000 -$0.381 |$0.26 1 $- 37 $38,168 |$3,963 |$-{$42,130 71,801 27,351 99,152 15,000 :$0.385 |$0.26 1$- 38 $38,740 |$4,022 |$-|$42,762 72,160 27,420 99,579 15,000 -$0.389 |$0.27 |$- 39 $39,321 |$4,082 |$-|$43,404 72,521 27,488 100,009 15,000 -$0.393 |$0.271 $- 40 $39,911 |$4,144;$-|$°44,055 72,883 27,557 100,440 15,000 -$0.397 |$0.28 1 $- City of Nowhere Bulk Fuel Facility Business Operating Plan Page 20 of 26 'LE 1 EL JESS ATID N TABLE D 40 YEAR "R and R"SCHEDULE Cost Allocation City NASD NA Year of Present Day Inflated Yearly City &Activity R&R Activity Value Value Inflated Total Cc Ce Only NA 5 Repair Steps/Landings $5,360 ||$5,689 $4,741 ||$948 11 $: Electrical Upgrade 2,190 2,324 1]$8,013 1,730 594 - 10 Fence Upgrade $5,299 ||$6,059 $4,264 ||$1,795 J]$- Pad Upgrade 3,186 3,643 3,123 520 - Pump Replacement 4,198 4,800 4,800 -- Valve Replacement 989 1,131 1,131 -- Repair Fill Lines 4371 4,998 4,181 817 - Electrical Upgrade 2,190 2,504 1,864 640 - Replace Dispenser 11,300 12,920 12,920 -- Tank Inspection 4,975 5,688 ||$41,743 5,688 -- 15 Repair Steps/Landings $5,360 ||$6,602 $5,502 ||$1,100 |]$- Electrical Upgrade 2,190 2,698 ||$9,300 2,008 690 : 20 Fence Replacement $20,809 ||$27,613 $20,244 ||$7,369 ||$- Resurface Pad 5,399 7,164 6,141 1,023 - Replace Steps 7,746 10,279 8,565 1,714 - Replace Pipeline Valves 2,763 3,666 3,666 :- Pump Replacement 4,198 5,571 5,571 -- Valve Replacement 989 1,312 1,312 -- Major Electrical 31,325 41,567 41,567 -- Replace Dispenser 11,300 14,995 14,995 -- Tank Inspection 4,975 6,602 ||$118,767 6,602 --| 25 Repair Steps/Landings $5,360 ||$7,662 $6,386 ||$1,276 }|$- Electrical Upgrade 2,190 3,131 ||$10,793 2,330 801 - 30 Fence Upgrade $5,299 11$8,160 $5,743 ||$2,417 11 $- Pad Upgrade 3,186 4,906 4,206 700 - Pump Replacement 4,198 6,465 6,465 -- Valve Replacement 989 1,523 1,523 -: Repair Fill Lines 4,371 6,731 5,632 1,099 - Electrical Upgrade 2,190 3,373 2,510 863 - Replace Dispenser 11,300 17,402 17,402 -- Tank Inspection 4,975 7,661 ||$56,222 7,661 -- 35 Repair Steps/Landings $5,360 ||$8,892 $7,411 11 $1,481 ||$- Electrical Upgrade 2,190 3,633 }|$12,525 2,704 929 - 40 Fence Replacement $20,809 ||$37,190 $27,266 ||$9,924 1|$- Resurface Pad 5,399 9,649 8,271 1,378 - Replace Steps 7,746 13,844 11,536 2,308 - Excavate,Liner,Backfill 113,551 202,940 176,557 26,383 - Replace Pipeline Valves 2,763 4,938 4,938 -- Pump Replacement 4,198 7,503 7,503 -- Valve Replacement 989 1,768 1,768 -- Major Electrical 31,325 55,984 55,984 -- Replace Dispenser 11,300 20,195 20,195 -- Refurbish/Replace Tanks 60,400 107,947 107,947 -- Replace Pipelines 159,252 284,617 ||$746,575 257,296 27,321 - $610,452 1}$1,003,938 |}$1,003,938 |]$909,849 |]$94,089 ||$- City of Nowhere Bulk Fuel Facility Business Operating Plan Page 21 of 26 SAMPLE BULK FUEL BUSINESS OPERATING PLAN TABLE E 40 YEAR RENEWAL AND REPLACEMENT CASHFLOW City Inflation Rate :Initial Cost per gallon ($/gallon):| $- Reinvestment Rate : |-City 20 Year R&R:5 year step cost increase :7 Escrow Fees:}°20 Year Loan Proceeds:City Initial Throughput (gallons):|-NASD City 40 Year R&R:NASD _Initial Throughput (gallons)Initial Cost per gallon ($/gallon):|-&- Loan Rate:40 Year Loan Proceeds:NA Initial Throughput (gallons)5 year step cost increase :[- Loan Term:[:-°NA Initial Cost per gallon ($/gallon):| 5 year step cost increase :| R &R Fund Balance Assumed Throughput (Gallons)Per Gallon Payment .of Annual Deposit _Interest End ofYearveePrincipal1DebtService|Re*W**/|Earnings Net}Year City NASD NA City NASDBalanceCityNASDNATotalReceivedReplacementsofFees)Balance 1 $-$2,550 |$675 |$-|$3,225 $-|$-|$3,225 85,000 15,000 :$0.030 |$0.045 |$ 2 $3,225 |$2,561 |$6751 $-|$3,236 $-|$971$6,558 85,363 15,000 :$0.030 |$0.045 |$3 $6,558 |$2,572 |$675 |$-|$3,247 $-|$1971$§10,001 85,727 15,000 :$0.030 |$0.045 |$ 4 $10,001 |$2,583 |$675 |$-|$3,258 $-|$300]$13,559 86,092 15,000 :$0.030 |$0.045 |$5 $13,559 |$2,594 |$675 |$-|[$3,269 $8,013 |$166 1$8,981 86,460 15,000 :$0.030 |$0.045 |$ 6 $8,981 |$5,210 |$1,125 |$-[§6,335 $-|$26913 15,585 86,829 15,000 :$0.060 |$0.075 |$7415 15,585 |$5,232 |$1,125 |$-|$6,357 $-|$468 1 $22,410 87,200 15,000 -$0.060 |$0.075 |$81s 22,410 |$5,254 |$1,125 |$-|$6,379 $-|$672|$29,461 87,573 15,000 -$0.060 |$0.075 |$9715 29,461 |$5,277 |$1,125 |$-|$6,402 $-|§884]$36,747 87,947 15,000 :$0.060 |$0.075 |$10 $36,747 |$5,299 |§$1,125 |$-|$6,424 $41,743 1 $9518 1,524 88,323 15,000 :$0.060 |$0.075 1 $11],$1,524 |$7,983 |$1,575 |$-|$9,558 $-|3s 132 1$§11,214 88,700 15,000 :$0.090 |$0.105 |$412718 11,214 |$8,017 |$1,575 |$-($9,592 $-{§3361 $21,142 89,080 15,000 :$0.090 |$0.105 |$13)1$§21,142 15 8,051 |$1,575 |$-|$9,626 $-{$634/$31,403 89,461 15,000 -§0.090 |$0.105 |$14 $31,403 |$8,086 |$1,575 |$-{$9,661 $-{$942 |$42,006 89,844 15,000 :$0.090 |$0.105 |$ 15 $42,006 |$8,121 |$1,575 |$-{$9,696 $9,300 |$9811 $43,383 90,229 15,000 :§0.090 |$0.105 |$16 $43,383 |$10,874 |$2,025 |$-{$12,899 $-1$1,302 |$57,584 90,615 15,000 :$s 0.120 |$0.135 |$A7ELS 57,584 |$10,920 |$2,025 |$-|$12,945 $-1$1,728 |$72,257 91,003 15,000 :$0.120 |$0.135 |$A&B;T$72,257 |$10,967 |$2,025 |$-|$12,992 $-{$2,168 |$87,416 91,393 15,000 :$0.120 |$0.135 |$19|[S$87,416 |$11,014 |$2,025 |$-|$13,039 $-|$2,623 |$103,078 91,785 15,000 :$s 0.120 |$0.135 |$1 20]{$103,078 |$11,061 |$2,025 |$-\|$13,086 |$65,198 |S 118,767 |$343 |$62,938 92,179 15,000 :$0.120 |$0.135 |$21775 62,938 |$13,886 |$2,475 |$-|$16,361 $8,650 |$-|$1,629 |$72,278 92,574 15,000 :$0.150 |$0.165 |$22 $72,278 |$13,946 |$2,475 |$-|$16,421 $8,650 |$-|§1,909 |$81,958 92,971 15,000 :$0.150 |$0.165 |$23 $81,958 |$14,006 |$2,475 |$-|$16,481 $8,650 |$-|$2,002 |$91,792 93,370 15,000 :$0.150 |$0.165}$ 24/18 91,792 |$14,066 |$2,475 |$-|$16,541 $8,650 |$-|$2,269 |$101,951 93,771 15,000 :$0.150 |§0.165 |$25)[$101,951]$14,126 |$2,475 |$-|§16,601 $8,650 |$10,793 |$2,241 /$101,351 94,174 15,000 :$0.150 |$0.165 |$26)7$101,351]$17,024 |$2,925 |$-|$19,949 $8,650 |$-|$2,518 |$115,168 94,578 15,000 :$0.180 |$0.195 |$27)4$115,168 |$17,097 |$2,925 |$-|$20,022 $8,650 1$-|3$2,130 [$128,671 94,984 15,000 :$0.180 |$0.195 |$28 $128,671 $17,171 |$2,925 |$-[§20,096 $8,650 |$-|$2,400}$142,518 95,393 15,000 :$0.180 |$0.195 |$29)[S$142,518 1 §$17,244 |$2,925 |$-|$20,169 $8,650 |$-|$2,677}$156,715 95,803 15,000 :$0.180 |$0.195 |$30 $156,715 |$17,319 |$2,925 |$-|$20,244 $8,650 |$56,222 |$1,837 [$113,924 96,215 15,000 :$0.1801 $0.195 |$31 $113,924 $20,292 |$3,375 |§-([§23,667 $-|$2,278 |$139,870 96,629 15,000 :$0.210 |$0.225 |$32 $139,870 |$20,379 |$3,375 |$-($23,754 $-|$2,797 |$166,421 97,044 15,000 :$0.210 |$0.225 |$33]$166,421 |$20,467 |$3,375 |$-1$23,842 $-|$3,328 [$193,592 97,462 15,000 :$0.210 |$0.225 |$34][$8 193,592 1$20,555 |$3,375 |$"15 23,930 $-|$3,872 ]$221,394 97,882 15,000 -]Ls 0.2101 $0.225 |$35 $221,394 §20,644 |$3,375 |$-|$24,019 $12,525 |$4,177 1 $237,064 98,303 15,000 :$0.210 |$0.225 |$36][$237,064 |$23,694 |$3,825 |$-{$27,519 $s -|$4741 ][$269,325 98,727 15,000 :$0.240 /$0.255 |$37 $269,325 |$23,797 |$3,825 |$-|$27,622 $-1$5,386 |$302,333 99,152 15,000 :$0.240 |$0.255 |$38 $302,333 1$23,899 |$3,825 |$-1$27,724 $-|$6,047 |$336,104 99,579 15,000 :$0.240 |$0.255 |$39 $336,104 §24,002 |$3,825 |$-|$27,827 $-|$6,722 |$370,653 100,009 15,000 :$0.240 |$0.255 |$40 $370,653]$24,106 |$3,825 |$-1$27,931)$407,557 $746,575 1$-{$59,565 100,440 15,000 -$0.240 |$0.255 |$ City of Nowhere Bulk Fuel Facility Business Operating Plan Page 22 of 26 }AM 3UL EL]VES!TRA'PL TABLE E -PAGE 2 R and R Participant Payment Schedules City NASD R &R Fund Balance R &R Fund Balance Year mea of Aonua Principal |1++Service|_Renewals/Eaminge (Net Total Year me of Annual |Principal |Debt |-Renewals/Earnings Total Balance eposit Received Replacements of Fees)Balance Deposit Received Service |Replacements (Net of 1 $-|$2,550 $-|$2,550 1 $-{$675 $-|$§675 2 $2,550,$2,561 $77|$5,187 2 $6751$675 $20/$1,370 3 $5,187 |$2,572 $156 |$7,915 3 $1,370;$675 $41/$2,086 4 $7,9151$2,583 $237 |$10,735 4 $2,086}$675 $63|$2,824 5 $10,735 |$2,594 $6,471 |$128 |$6,986 5 $2,824/)$675 $1,542 |$38 |$1,995 6 $6,986 |$5,210 $210|$12,405 6 $1,995 |}$1,125 $60|$3,180 7 $12,405 |$5,232 $372|$18,009 7 $3,180)$1,125 $95}$4,400 8 $18,009 |$5,254 $540 |$23,804 8 $4,4001$1,125 $ 132}$5,657 9 $23,804 |$5,277 $714|$29,795 9 $5,657 |$1,125 $ 170/$6,952 10 $29,795 |$5,299 $37,971 |$-{$(2,877)10 $6,952/$1,125 $3,771 |$951$4,401 11 $(2,877)!$7,983 $-|$5,106 11 $4,401 /$1,575 $ 132/$6,108 12 $5,106 |$8,017 $153 |$13,277 12 $6,108 |$1,575 $ 183/$7,866 13 $13,277 |$8,051 $398 |$21,726 13 $7,866 |$1,575 $ 236|$9,677 14 $21,726 |$8,086 $652 ;$30,464 14 $9,677 |$1,575 $ 290|$11,543 15 $30,464 |$8,121 $7,510 |$689 |$31,763 15 $11,543 |$1,575 $1,790!$ 293{|$11,620 16 $31,763 |$10,874 $953 |$43,590 16 $11,620 |$2,025 $349)$13,994 17 $_43,590|$10,920 $1,308 |$55,818 17 $13,994 |$2,025 $420 /$16,439 18 $ 55,818|$10,967 $1,675 |$68,460 18 $16,439 |$2,025 $493 |$18,957 19 $ 68,460|$11,014 $2,054 |$81,528 19 $18,957 |$2,025 $569/$21,551 20 $81,5281 $11,061 |$65,198 $108,663 |$-|$49,124 20 $21,551 |$2,025 $10,105 /$ 343/$13,814 21 $ 49,1241$13,886 $8,650 $1,214 |$55,575 21 $13,814 |$2,475 $ 414/$16,703 22 $ 55,575|$13,946 $8,650 $1,408 |$62,278 22 $16,703 |$2,475 $501 |$19,679 23 $ 62,278|$14,006 $8,650 $1,609 |$69,243 23 $19,679 |$2,475 $394)$22,548 24 $69,243 |$14,066 $8,650 $1,818 |$76,477 24 $22,548 |$2,475 $451 |$25,474 25 $76,477 |$14,126 $8,650 |$8,716 |$1,773 |$75,011 25 $25,474 1$2,475 $2,077 |$468 |$26,340 26 $75,011|$17,024 $8,650 $1,991 |$85,376 26 $26,340 1$2,925 $527}$29,792 27 $85,376 |$17,097 $8,650 $1,535 |$95,358 27 $29,792 |$2,925 $596 /$33,313 28 $ 95,358|;$17,171 $8,650 $1,734 |$105,613 28 $33,313 |$2,925 $ 666/$36,904 29 $105,613 |$17,244 $8,650 $1,939 |$116,147 29 $36,904 |$2,925 $738 |$40,567 30 $116,147|$17,319 $8,650 |$51,142 |§$1,127 |$74,801 30 $40,567 |$2,925 $5,080|$710)$39,122 31 $74,801 |$20,292 $1,496 |$96,589 31 $39,122|$3,375 $ 782|$43,280 32 $96,589 |$20,379 $1,932 |$118,901 32 $43,280 |$3,375 $866)$47,520 33 $118,901 1$20,467 $2,378 |$141,746 33 $47,520|$3,375 $9501 $51,846 34 $141,746 |$20,555 $2,835 |$165,136 34 $51,846 |$3,375 $1,037 |$56,258 35 $165,136 |$20,644 $10,115 |$3,100 |$178,765 35 $56,258 |$3,375 $2,410 |$1,077 |$58,299 36 $178,765 |$23,694 $3,575 |$206,034 36 $58,2991 $3,825 $1,166 |$63,290 37 $206,034 |$23,797 $4,121 |$233,952 37 $63,290 |$3,825 $1,266 |$68,381 38 $233,952 1$23,899 $4,679 |$262,530 38 $68,381 |$3,825 $1,368 |$73,574 39 $262,530|$24,002 $5,251 |$291,782 39 $73,574 |$3,825 $1,471 |$78,870 40 $291,782 |$24,106;$407,557 $679,261 |$-|$44,184 40 $78,870 1$3,825 $67,313 |$-|$15,382 City of Nowhere Bulk Fuel Facility Business Operating Plan Page 23 of 26 Year 20 R&R Loan City SAMPLE BULK FUEL BUSINESS OPERATING PLAN TABLE F Loan Schedules Beginning Principal Ending Year Balance Interest Payment |Payment Balance 1 $65,197.80 |$3,585.88 ($8,649.65)|$5,063.77 |$60,134.03 2 $60,134.03 |$3,307.37 ($8,649.65)]$5,342.27 |$54,791.76 3 $54,791.76 |$3,013.55 ($8,649.65)|$5,636.10 |$49,155.66 4 $49,155.66 |$2,703.56 ($8,649.65)]$5,946.09 |$43,209.57 5 $43,209.57 |$2,376.53 ($8,649.65)|$6,273.12 |$36,936.45 6 $36,936.45 |$2,031.50 ($8,649.65)|$6,618.14]$30,318.31 7 $30,318.31 |$1,667.51 ($8,649.65)|$6,982.14]$23,336.17 8 $23,336.17 |$1,283.49 ($8,649.65)|$7,366.16 |$15,970.01 9 $15,970.01 |$878.35 ($8,649.65)|$7,771.30]$8,198.72 10 |$ 8198.72]$450.93 |($8,649.65)$8,198.72 |$(0.00) $21,298.67 ($86,496.47)$65,197.80 Year 40 R&R Loan City Beginning Principal Ending Year Balance Interest Payment |Payment |Balance 1 $407,556.60 |$22,415.61 |$(54,069.62)|$31,654.01 |$375,902.59 2 $375,902.59 |$20,674.64 |$(54,069.62)|$33,394.98 |$342,507.61 3 $342,507.61 |$18,837.92 |$(54,069.62)|$35,231.71 |$307,275.90 4 $307,275.90 |$16,900.17 |$(54,069.62)|$37,169.45 |$270,106.45 5 $270,106.45 |$14,855.85 |$(54,069.62)|$39,213.77 |$230,892.68 6 $230,892.68 |$12,699.10 |$_(54,069.62)]$41,370.53 |$189,522.15 7 $189,522.15 |$10,423.72 |$(54,069.62)]$43,645.91 |$145,876.25 8 $145,876.25 |$8,023.19 |$(64,069.62)|$46,046.43 |$99,829.81 9 $99,829.81 |$5,490.64 |$(54,069.62)|$48,578.98 |$51,250.83 10 $51,250.83 |$2,818.80 |$(54,069.62)]$51,250.83 |$(0.00) $133,139.65 ($540,696.25)$407,556.60 City of Nowhere Bulk Fuel Facility Business Operating Plan Page 24 of 26 TABLE G SAMPLE BULK FUEL BUSINESS OPERATING PLAN Summary of Facility Expenses to Participants City of Nowhere NASD 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 |Gallon 1 $223311 §$0.263 |$2,550 |$0.030 |$24,881 |$0.293 $2,318 |§0.155 |$675 |§0.045 1$2,993 |$0.200 $-|$-|$-|$--{$ba 2 $22,666 |$0.266 |$2,561 |$0.030 |$25,227;$0.296 $2,353 |$0.157 |$675 |§0.045 |§3,028 |$0.202 $-|$§-|$-|$-|$-{§: 3 $23,006 |$0.268 |$2,572 |§$0.030 |$25,578 |$0.298 $2,389 |$0.159 |$675 |§$0.045 |§3,064 |$0.204 $-|$-|$§-|%-|$-{§: 4 $23,3521 §$0.2711 $2,583 |§0.030 |$25,934;$0.301 $2,424 |§0.162 |$675 |$0.045 |$3,099 |$0.207 $-|$-|$-|$-|$-|5$: 5 $23,702 |$0.274 |$2,594 |§$0.030 |$26,296 |$0.304 $2,461 |$0.164 |$675 |$0.045 1 §3,136 |$0.209 $-|$-|$-|$-|$§-|$: 6 $24057 |$0.277 |$5,210 |$0.060 |$29,267 ;$0.337 $2,498 |$0.167 |$1,125 |$0.075 1$3,623 |$0.242 $-|$-|$-|$-|§-|$§: 7 $24,4181 §0.280 |$5,232 |$0.060 |$29,650 |$0.340 $2,535 |$0.169 |§1,125 |$0.075 |$3,660 |$0.244 |1 §-|$-|$-|$-|$-|$: 8 $24,784 |$0.283 |$5,254 |$0.060 |$30,039 |$0.343 $2,573 |$0.172 |$1,125 |§0.075 1$3,698 |$0.247 $-|$-|$-|$-{$-|$: 9 $25,156 |$0.286 |$5,277 |$0.060]$30,433 |$0.346 $2,612 |$0.174 |$1,125 |$0.075 |$3,737 1$0.249 $-|$-|$-|$-|3$-|$: 10 $25,534]§0.289 |$5,299 |$0.060 |$30,833)$0.349 §2,651 |$0.177 |$1,125 |$0.075 |$3,776 |$0.252 $-|$-|$-|$-1§-|$- 11 $25,917 |$0.292 |$7,983 |$0.090 |$33,900 |$0.382 $2,691 |$0.179 |$1,575 |$0.105 |$4,266 |$0.284 $-|$-|$-|$-1$-|$: 12 $26,305 |§0.295 |$8,017 |$0.090 |$34,323 |$0.385 $2,731 |$0.182 |$1,575 |$0.105 1 §$4,306 |$0.287 $-[§-|$-|$-{$-|$: 13 $26,700 |$0.298 |$8,051 |$0.090 |$34,751]$0.388 $2,772 |$0.185 |$1,575 |$0.105 |$4,347 |$0.290 $-|$§-|$-|$-{$-|$- 14 $27,100 |$0.302 |$8,086 |$0.090}$35,186 |$0.392 $2,814 |$0.188 |$1,575 |$0.1051$4,389 1 $0.293 $-|$-|$-|$§-1$-|$: 15 $27,507 |$0.305 |$8,121 |$0.090 |$35,628 |$0.395 $2,856 |$0.190 [$1,575 |§0.105 |$4,431 1$0.295 $-|$-|$-|$-{$-|$: 16 $27,920!$0.308 |$10,874 |$0.120 |$38,793 |$0.428 $2,899 |$0.193 |$2,025 |$0.135 |§4,924 |$0.328 $-|$-|$-|$-{$-|$: 17 $28,338 |$0.311 |$10,920 |$0.120 |$39,259 |$0.431 $2,942 |$0.196 |$2,025 |$0.135 |$4,967 |$0.331 $-|$-|$-|$-|§-|$- 18 $28,763 |$0.315 |$10,967 |$0.120 |$39,731 |$0.435 $2,986 |$0.199 |$2,025 |$0.135 |$5,011 |$0.334 §-1$-|$-|$-{$-{$: 19 $29,1951 $0318]$11,014]$0.120 |$40,209 |§$0.438 §3,031 |$0.202 {|$2,025 |$0.135 |$5,056 |$0.337 $-($-|$-|$§-|$-|$- 20 $29,633 |$0.321]$11,061 |$0.120]$40,694 |$0.441 $3,077 |$0.205 |$2,025 |$0.135 |$5,102 |§0.340 $-{|$-|$-|$-|$-{$: 21 $30,077 |$0.325]$13,886 |$0.150]$43,963 |$0.475 $3,123 |$0.208 |$2,475 |$0.165 |$5,598 |$0.373 $-|$-|$-|$-|$-{$: 22 $30,528 |$0.328 |$13,946 |§0.150]$44,474 |$0.478 $3,169 |$0211]$2,475 |$0.165 |$5,644 $§0.376 §-|$-|$-|$-|$-{$§= 23 $30,986 |$0.332 |$14,006 |$0.150}$44,992 |§0.482 $3,217 |$0.214 |§2,475 |§0.165 |$5,692 |$0.379 $-($-|$-|$-|§-{$s : 24 $31,451 |$0.335]$14,066 |$0.150]$45,517 |$0.485 $3,265 |$0.218 |$2,475 |$0.165 |$5,740 |$0.383 |1 $-(§-|5 -|$-|$-1$ba 25 $31,923 |$0.339 |$14,126 |$0.150 |$46,049 |§$0.489 $3,314 |$0.221 |$2,475 |$0.165 |$5,789 |$0.386 $-|$-|§-|§-|$-|%: 26 $32,402 |$0.343 |$17,024 |$0.180 |$49,426 |$0.523 $3,364 1 $0.224 |$2,925 |$0.195 |$6,289 |§0.419 $-|$-|$-|$-|$-|$: 27 $32,888 |$0.346 |$17,097 |$0.180 |$49,985 |$0.526 $3,414 |$0.228 |$2,925 |$0.195 |$6,339 |§$0.423 $-|$-{§-|$-|$-|$: 28 $33,381 |$0350]$17,171]§0.180 |$50,552 |§0.530 $3,466 |$0.231 |$2,925 |$0.195 |§6,391 |§0.426 $-|$-|$-($-|§-|$: 29 |$33,882|$0354/$17,244|$0.180]$51,126|$0534/7 $3,518)$0235|$29251 $O195/§6443 /$0.430]4$-|$-{s -|$-|§-|$: 30 [$34390|$0357]$17,319}$0180]$51,709|$0.537)}$3,570)$0238/$2,925/$0.195|§6,495 |$0.433 ||$-|$-{|$-{$-|$-|$: 31 |$34,906|$0.364}$20,292)$0210]$55,198!$0.571 $$3,624|$0.242/$3375;$0.225|§$6,999 |$0.467 ||$-|$-{$-1$-1$-|$: 32_|$35,429)$0365)$20379;$0.210|$55809/$0575/78 3,678]$0.245]$3,375!$0.225/$7,053 |$0.470 ||$-|§-{$§-1$-|$-|§: 33 $35,961 |$0.369 |$20,467 |$0.210]$56,428 |§$0.579 $3,734 |$0.249 |$3,375 |$0.225 1 $7,109 |$0.474 $-|$§-{$-{$-|$-|$§: 34 |$36,500;$0373/8 20555|$0.210]$57,055,$0583)7$3,790|$0.253|$3,375)$0.225])$7,165 |$0.478 |4 $-|$-1$-|$-|$§-|$: 35 |$37,048;$0377]$20,644|$0.210/$57,692)$O587/1$3,846]$0.256/$3,3751$0.225/1$7,221 |$0.481 ||§$-|$-|$-|$-|$-|8 : 36 $37,604 |$0.381 |$23,694 |$0.240 |$61,298 |§$0.621 $3,904 |$0.260 |$3,825 |$0.255 1$7,729 |$0.515 $-|$-|$-1$-|5 -|§: 37_|$38,168;$0385]$23,797 |$02401$61,964/$0625/]$3,963/$0.264|$3,825|$0.255/$7,788 |$0.519 ||$-|$-|$-|$-[§-|$: 38 $38,740 |$0.389 |$23,899 |$0.2401 $62,639)$0.629 $4,022 |$0.268 |$3,825 |§0.255 1 §7,847 |$0.523 $-|$-|$-|$-1$-|$: 39 $39,321 |$0.393 |$24,002 |$0.240]$63,323 |§0.633 $4,082 |$0.272 |$3,825 |$0.255 1 $7,907 |$0.527 $-|$-|$-|$-[$-|$: 40 {$39,911 1$0.397 |$24,106 |$0.240 1$64,017 |$0.637 $4,144 |$0.276 |$3,825 |$0.255 |$7,969 |$0.531 $-|$§-|$-1$-{$§-{$- City of Nowhere Bulk Fuel Facility Business Operating Plan Page 25 of 26 Statement ofQualification SAMPLE BULK FUEL BUSINESS OPERATING PLAN APPENDIX A:PRIMARY OPERATOR STATEMENT OF QUALIFICATION The Primary Operator Statement of Qualification includes: 1.A description of the Primary Operator,its personnel and experience,and its responsibilities and functions.This discussion includes a description of the ability and history of the Primary Operator to operate a bulk fuel facility as a business and/or its history of operating other business enterprises,as well as a description of the Primary Operator's fiscal controls and accounting procedures.This discussion details organization history,management and structure;identification of key personnel,their experience and responsibilities;and,proposed organization of bulk fuel facility management and operations,including an organizational chart. 2.A description of the Primary Operator's,if any,staffing or training needs. 3.A description of the training plan proposed by the Primary Operator to address current and future needs. City of Nowhere Bulk Fuel Facility Business Operating Plan Page 26 of 26 SAMPLE BULK FUEL BUSINESS OPERATING PLAN CITY OF NOWHERE Organization History The village of Nowhere is located in southcentral Alaska on the Westside of Cook Inlet,has a population of 200,predominantly Athabascan,which has grown steadily for the past thirty years and the economy of the area is primarily focused on commercial fishing and subsistence activities.All 80 households and facilities use individual wells,and,all but four,are either connected to a piped sewage system or use septic tanks.City,state and federal governments provide the primary year- round employment.Other employment is found through the school and private enterprises such as the local store and guiding businesses,although residents utilize some subsistence activities for food. Nowhere was the site of a trading post during the gold rush due to its location on the Westside of Cook Inlet,which connected southern gold mining districts to the Cook Inlet.Subsequently, Nowhere became a winter trail station along the Cook Inlet Trail that was used until 1926.The school was established in 1948 and the post office was opened in 1949. The City incorporated in 1970 as a Second Class City.Today,all 80 households and facilities use individual wells,and,all but four,are either connected to a piped sewage system or use septic tanks. An electric power generation upgrade project is underway that will provide a new generator building for safer and more reliable power.Funds have been requested to rehabilitate the washeteria, develop two new wells,upgrade the landfill and expand the piped sewer system.The annual City budget is approximately $720,000. The City of Nowhere can be reached via air or water.The State owns a 3,500-foot gravel airstrip that was expanded in late 2001 in order to better accommodate the transportation needs of the area. Barges supply fuel and other supplies. Description of Business History The City of Nowhere manages the following utilities and services:water and wastewater,fuel,light and power,cable TV,building and road construction,and public works.Currently,community residents and organizations pay for all of these services.Residents and community facilities pay $17.50 per month for wastewater services.Residents and community facilities obtain water from - individual wells or a community well and do not pay for this service. The City of Nowhere purchases fuel approximately one time per year from either Cook Fuel or Inlet Marine.Fuel is purchased between $1.85 and $2.10 per gallon/diesel.Residents and commercial businesses currently pay $3.00 per gallon/diesel fuel and between $3.50 and $4.00 for unleaded fuel. In addition,the City owns the facility that houses the Nowhere Health Clinic,city offices,post office,library,and recreational center.The city is responsible for operations of the public library, recreation center and cable TV services. The electric utility in Nowhere is presently owned by Nowhere Power Utility and operated by the City.Currently,residents are paying 27.5 cents/kilowatt with PCE for the first 500 kilowatts. Businesses and those residents exceeding 500 kilowatts pay 50 cents/kilowatt. City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix A-1 SAMPLE BULK FUEL BUSINESS OPERATING PLAN Description of Fiscal Controls and Accounting Procedures City staff has the authority to submit check requests,which must have supporting documents prior to being processed.All checks must be signed by two of the City Council Members.A copy of the check is attached to the supporting documents and filed at the City office.The City operates on a July 1 through June 30 fiscal year. The City staff use IBM Compatible computers and are working towards using the accounting software program Quick Books Pro. Management and Structure A seven-member Council,one of which is the mayor,manages the operations of the City.Each Council member is elected to a three-year term,and the Council appoints the mayor for a one-year term.Below are the names and titles of the Council's 2002 Members. CITY OF NOWHERE COUNCIL MEMBERS John XXXX,Mayor Mary XX XXX,Vice Mayor Agnes XXXXX William XXXXX Margaret XXXX Joe XXXXX Samuel XXXXX There are approximately twenty City employees,although only one is a fulltime equivalent (FTE) position. Day-to-day operations of the City are performed by Mr.Joe Smith,City Administrator/City Clerk. Mr.Smith has been the City Administrator/City Clerk since 1999 and also serves as the City's accountant/bookkeeper.He oversees the management and financial operations of the City's bulk fuel facility. The organizational chart below shows the relationship between the various components of the City's overall structure.At the apex of management is a City Council comprised of the Mayor and Council Members,all representing the community of Nowhere. City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix A-2 SAMPLE BULK FUEL BUSINESS OPERATING PLAN City of Nowhere Organizational Chart City Council John XXXX,Mayor Administrator/City Clerk Joe Smith Library Light &Power Utility Martha XXXX George XXXX &Nick XXXXX Cable TV Utility Water/Wastewater Utility Kim XXXX Tony XXXX &William XXXX Fuel Utility Public Works/Equipment Repair George XXXXX &Nick XXXXK George XXXXXKX Building &Road Const. Identification of Key Personnel The City has operated its Fuel Utility since 1985 and believes it can meet the staffing requirements of the upgraded bulk fuel facility with current staff.The Nowhere Bulk Fuel Facility will have overall direction from the City of Nowhere headed by John XXX,Mayor.Joe Smith,City Administrator/City Clerk,will provide oversight and financial management,budget and reporting for the Bulk Fuel Facility.Mr.Smith will be involved in this project from the beginning and is the main contact for the City.He will work with AEA and the Denali Commission to ensure the City's role in the project timeline. Joe Smith is also responsible for payroll,accounts payable,accounts receivable,tax filings and schedules,program budgets,and for tracking project expenses and preparation of required project financial reports.See attached resume. The City of Nowhere will operate and maintain the Bulk Fuel Facility.George XXXX is Primary Operator of the City's existing Bulk Fuel Facility and is responsible for the Facility's overall management and operations.His position will remain the same with the new consolidated Bulk Fuel Facility.Tony XXX and William XXXX are Backup Fuel Operator for the Primary.See attached resumes. City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix A-3 SAMPLE BULK FUEL BUSINESS OPERATING PLAN Organization of Bulk Fuel Management and Operations The following chart illustrates the staff relationships of the Nowhere Bulk Fuel Facility: NOWHERE BULK FUEL FACILITY PROJECT STAFFING City Council John XXXXX,Mayor Joe Smith City Administrator/City Clerk George XXXXX Primary Operator Tony XXX &William XXX Backup Operator Staff Training Needs Below is an initial list of training and assistance the City has identified for staff: e HAZWoper e Oil Spill Response Drills e Bulk Fuel Facility Minor Maintenance and Repair Proposed Training Plan The Council staff will coordinate HAZ Woper,Oil Spill Response Drills,and Bulk Fuel Facility Minor Maintenance as courses are offered by state agencies in the region. Additionally,the City will utilize training resources available through AEA and the Alaska Vocational Technical Center to ensure proper training of its personnel.The following is a summary of those resources: e Alaska Energy Authority (AEA) The Alaska Energy Authority has developed a series of courses relating specifically to Bulk Fuel and Power Utility operations.These courses are taught through the Alaska Vocational Technical Center (AVTEC)in Seward: Phone:(907)-269-3000 City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix A-4 SAMPLE BULK FUEL BUSINESS OPERATING PLAN Contacts Bruce Tiedeman,Rural Energy Manager,Alaska Energy Authority/AIDEA Address:813 West Northern Lights Blvd.,Anchorage,Alaska 99503 Phone:(907)269-4641 Fax:(907)269-3044 Web Addtess:www.aidea.org/training.htm Email address:btiedeman@aidea.org Dick Harrell,Instructional Administrator,Alaska Vocational Technical Center Address:P.O.Box 889 809 2"Avenue,Seward,Alaska 99664 Phone:(907)-224-4162 1-800-478-5389 fax (907)224-4144 Web Address:www.avtec.alaska.edu Email:dick_harrell@educ.state.ak.us Technical Assistance Provided Facility Maintenance and Operations Cost The state will pay for transportation to and from your community to the Alaska Vocational Technical Center (AVTEC)as well as lodging and $10 per meal allowance while in transit to AVTEC.Furthermore,while at AVTEC the state will pay for tuition,deposit,room and board and training related materials. Currently,the primary bulk fuel training provided by AEA is: Bulk Fuel Operator Training -This is a 2-week program that covers how to safely run a tank system within a rural Alaskan community as well as covers information regarding the Alaska Energy Authorities Bulk Fuel loan program and how to recognize deficient tank systems. The following courses are anticipated for the future: Itinerant Training -This course will provide follow-up onsite training following the AVTEC Bulk Fuel Operator Training course.The Alaska Energy Authority (AEA)staff will conduct all training.It is anticipated that 6 communities will be chosen as test sites or demonstration projects. Oil Spill Response Training -This course will be taught on-site and have the participation of the Alaska Energy Authority (AEA),Department of Environmental Conservation (DEC), Environmental Protection Agency (EPA)and the US Coast Guard.This course ts tentatively targeted to begin Summer-2002. City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix A-5 SAMPLE BULK FUEL BUSINESS OPERATING PLAN e Alaska Vocational Technical Center (AVTEC) The Alaska Vocational Technical Center (AVTEC)is located in Seward Alaska approximately 120 miles south of Anchorage via the Seward Highway.In addition to offering onsite training and courses AVTEC staff also provide off-site training. Contact Admissions Office Address:P.O.Box 889 809 2"Avenue,Seward,Alaska 99664 Phone:(907)-224-4152 1-800-478-5389 fax (907)224-4143 Web Address:www.avtec.alaska.edu Technical Assistance Provided Skilled Labor Business Administration Facility Maintenance and Operations Cost Fees for courses vary based on the specific program.An estimated fee for various programs has been included next to the listing of programs offered.The estimated fees include tuition,activity fee,security deposit,room and board,and books and supplies.Broken out these costs total -activity fee ($25),security deposit ($50),and room and board ($20/day). The tuition,books and supplies vary in cost according to the course and course length. The following programs and courses are offered relating to Skilled Labor: Construction Machinery and Diesel Engine Technology -This program teaches students the skills and competencies of servicing,maintaining,and repairing construction machinery and diesel engines.Approximately 40 percent of the course is classroom instruction with the remainder being shop work.Four certification levels can be obtained within the program.The entire course will cost an estimated $7,280 and take approximately 40 weeks or 1379 hours. Basic course content includes:tire repair;basics of equipment operation;chassis components;differentials;transmissions;brakes;electrical systems;hydraulic systems; introduction to gas and arc welding;diesel engine operation and tuning;precision measurement;disassembly and reassembly of diesel engines;fuel injection systems and governors,including electronically injected diesels;mathematics;industrial first aid;job search skills;and,shop safety. Welding Technology -This program teaches students the skills necessary to successfully pass the AWS-D1.1 Structural Certification Test and become employed in the welding and fabrication industry.Certificates can be obtained in;Combination Welder,Welder SMAW, Wire-Feed Welder,Aluminum Welder,and Welder Helper.The entire course will cost an estimated $5,260 and take approximately 20 weeks or 700 hours. City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix A-6 SAMPLE BULK FUEL BUSINESS OPERATING PLAN Basic course content includes:O.A.W.(Oxyacetylene Welding);S.M.A.W.(Stick electrode); G.M.A.W.(MIG);G.T.A.W.(TIG);shop safety;industrial first aid and CPR and job search skills. Industrial Electricity -This program prepares students for entry-level positions in the field of industrial electricity.The course is broken into three parts;classroom presentation, experimental lab work,and electrical maintenance shop work.Four certificates can be obtained,Industrial Controls Technician,Industrial Electrical Technician,Electrical Apprentice,and Electrical Helper.The entire course will cost an estimated $8,175 and can take up to 40 weeks or 1400 hours depending on the certification level. Basic course content includes:electrical theory and wiring practices;electrical construction and national electrical code,industrial process automation,and job search and interview skills. The following program and courses are offered relating to Business Administration: Business and Office Technology -This program is an individualized,self-paced program. The following certificate levels can be obtained within the program,Accounting Clerk, Administrative Assistant,General Business/Office Assistant,and Business/Office Clerk. The entire course will cost an estimated $6,855 and take approximately 35 weeks or 1225 hours. Basic course content includes:Computer operations and software applications;Keyboarding and document processing;Proofreading and editing;Office procedures and office machines; Machine transcription;Accounting and record keeping;Business English and mathematics; Job and interview preparation;and,Internship training. The following programs are offered relating to Facility Maintenance and Operations: Facility Maintenance/Construction Trades-This ptogram prepares students forinstallation,maintenance,service,repair and diagnostics to maintain installations and repair numerous types of facility equipment.Approximately 50 percent of the course is classroom instruction with the remainder being hands on training.Two certificates can be obtained: Building Maintenance Repairer and Building Maintenance Repairer Helper.The entire course will take approximately 38 weeks or 1316 hours. The main courses of study are carpentry,plumbing,heating and electrical.Basic course content includes:Carpentry (blueprint reading,power tools and hand tools,framing, sheetrock,structural repair,foundations);Plumbing (names of fittings,join pipe,repair and replace fixtures);Heating (proper cleaning,troubleshooting,preventative maintenance);and, Electrical (electrical theory,residential wiring,electrical troubleshooting,national electrical code,blueprints,schematics). City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix A-7 SAMPLE BULK FUEL BUSINESS OPERATING PLAN Facility Maintenance/Mechanical -This program prepares students for installation, maintenance,service,repair and diagnostics of HVAC/R equipment.Approximately 45 percent of the course is classroom instruction with the remainder being hands on training. Six certificates can be obtained:Plumbing and Heating Technician;Plumbing and Heating Repairer;Plumbing and Heating Assistant Repairer;HVAC/R Technician;HVAC/R Unit Repairer;HVAC/R Helper.The entire course will take approximately 36 weeks or 1260 hours. Basic course content includes:electrical theory;troubleshooting and repair;reading blueprints and schematics;electrical circuits and controls;testing circuits,system design; retrofitting systems;heat loads;installation techniques;heat pumps;oil,gas and kerosene heating systems;domestic refrigerators and freezers;small hermetic systems;refrigeration systems;heating and cooling systems;introductions to carpentry,residential wiring and computers,and industrial first aid. Power Plant Operation -This program prepares students for employment within a power plant.Approximately 60 percent of the course is spent operating and maintaining diesel generator sets representative of installations in rural Alaska with the remainder of time spent in classroom instruction.Certificates can be obtained in Diesel Plant Operator and Assistant Diesel Plant Operator.The entire course will cost an estimated $1,935 and take approximately 8 weeks or 280 hours. Basic course content includes:engine theory,maintenance,and troubleshooting;electrical system theory maintenance and troubleshooting;generator theory and maintenance; introduction to electrical distribution systems;operation of diesel electric sets;control panels;paralleling generator sets;load management;fuel management;waste heat recovery; plant management skills;power plant safety;industrial first aid and CPR;and job search skills. City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix A-8 SAMPLE BULK FUEL BUSINESS OPERATING PLAN RESUMES/JOB DESCRIPTION City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix A-9 SAMPLE BULK FUEL BUSINESS OPERATING PLAN City of Nowhere P.O.Box 1212 Nowhere,Alaska 99999 Work 907-999-9999 Fax 907-999-9998 Joe Smith Employment City of Nowhere 1999-Present City Administrator/City Clerk Manages and coordinates the day-to-day activities of the City's operations to ensure attainment of the goals and objectives set by the City Council.Develops and maintains all administrative and financial systems,develops program budgets,prepares all reports for compliance with funding agencies,assists with City Council meetings' agendas and minutes and identifies funding opportunities.Reports directly to the Mayor and City Council. Previous Employment City of Somewhere 1995-1999 City Administrator City of Nowhere 1993-1995 City Administrator State of Alaska 1985-1992 Superintendent of Water Education University of Alaska,Southeast 1990 Bachelor Business Administration Continuing Education Computer Training Community Rotary Member Alaska Municipal Managers Association City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix A-10 SAMPLE BULK FUEL BUSINESS OPERATING PLAN City of Nowhere P.O.Box 1212 Nowhere,Alaska 99999 Work 907-999-9999 Fax 907-999-9998 George Xxxxx Employment Previous Employment City of Nowhere 1990-Present Fuel Utility Operator Responsible for inspection,operation and minor maintenance of bulk fuel facility. City of Nowhere 1990-Present Light and Power Utility Operator Responsible for inspection,operation and minor maintenance of generator plant and electrical utility. State of Alaska -Dept.of Transportation &Public Facilities 1975-1990 Mechanic Operations and maintenance of generators.Heavy equipment operator. Training Diesel Mechanic Training State of Alaska Power Plant Operator State of Alaska Community City of Nowhere Council Member Vice Mayor Skills Diesel Mechanic Heavy Equipment Operator Minor Electrical Welding City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix A-11 SAMPLE BULK FUEL BUSINESS OPERATING PLAN City of Nowhere P.O.Box 1212 Nowhere,Alaska 9999 Work 907-999-9999 Fax 907-999-9998 Tony Xxxxxx Employment City of Nowhere 1980-Present Fuel Utility Backup Operator Responsible for operation of bulk fuel facility when primary operator is not available. City of Nowhere 1980-Present Light and Power Utility Operator Responsible for inspection,operation and minor maintenance of generator plant and electrical utility. Previous Employment Nowhere Construction 2001 Temporary Heavy Equipment Operator/Driver Nowhere's airport construction project. Education 1979 Nowhere High School Diploma Additional Training Power Plant Operator Anchorage,AK Skills Heavy Equipment Operator 6-Pack Operators License City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix A-12 SAMPLE BULK FUEL BUSINESS OPERATING PLAN City of Nowhere P.O.Box 1212 Nowhere,Alaska 99999 Work 907-999-9999 Fax 907-999-9998 William Xxxxxx Employment Previous Employment Education Additional Training City of Nowhere 1980-Present Electric &Fuel Utility Backup Operator Responsible for operation of bulk fuel facility when primary operator is not available. Nowhere Area School District 1996-Present Maintenance Responsible for inspection,operation and minor maintenance of Nowhere's school building,generator plant and bulk fuel tanks. State of Alaska Depart of Transportation &Public Facilities 1980-Present Airport Maintenance City of Nowhere 1985-1989 Power Plant Operator 1979 Nowhere High School Diploma Small Engine Maintenance &Repairs AVTEC Seward,AK Welding AVTEC Seward,AK Heavy Equipment Operation &Maintenance AVTEC Seward,AK City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix A-13 SAMPLE BULK FUEL BUSINESS OPERATING PLAN CITY OF NOWHERE JOB DESCRIPTION BULK FUEL FACILITY MANAGER Exempt (Y/N):No Salary: Division:Bulk Fuel Location:City of Nowhere Employee:Supervisor:Mayor Approved By:City Council 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 City of Nowhere,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 City Council with annual report of operations to the Denali Commission and other required reporting. Implements the spill response and related regulatory plans and ensure that required spill response and related regulatory plans are updated and available on-site:Ensures the reliability of the spill response equipment,maintains the proper records,and conducts periodic spill drills. Oversees proactive program to recognize,identify and correct operational problems within the facility.Investigates,evaluates,and determines best application of new developments in bulk fuel storage industry,and devises other means of securing maximum efficiency of personnel and equipment. Directs maintenance of property records and upkeep of equipment and structures. City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix A-14 SAMPLE BULK FUEL BUSINESS OPERATING PLAN 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 Experience:Associate's degree (A.A.)or equivalent from two-year college or technical school;or six months to one year related experience and/or training;or equivalent combination of education and experience. Language Skills:Ability to read and interpret documents such as safety rules,operating and maintenance instructions,and procedure manuals.Ability to write routine reports and correspondence.Ability to speak effectively before groups of customers or employees of organization. Reasoning Ability:Ability to solve practical problems and deal with a variety of concrete variables in situations where only limited standardization exists.Ability to interpret a variety of instructions furnished in written,oral,diagram,or schedule form. PHYSICAL DEMANDS:The job will be physically demanding;will be required to push,maneuver and sometimes lift heavy objects. City of Nowhere _Bulk Fuel Facility Business Operating Plan Appendix A-15 O&M and R&R Cost Estimate SAMPLE BULK FUEL BUSINESS OPERATING PLAN APPENDIX B:O&M AND R&R COST ESTIMATE COST CONSULTANT HMS Inc. 4103 Minnesota Drive Anchorage,Alaska 99503 (907)561-1653 (907)562-0420 FAX City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-1 SAMPLE BULK FUEL BUSINESS OPERATING PLAN SAMPLE BULK FUEL OPERATION &MAINTENANCE AND REPLACEMENT &RENEWAL COSTS CITY'S PORTION OF WORK NOWHERE,ALASKA HMS #xxxxxxx CLIENT AEA 813 W.Northern Lights Blvd. Anchorage,Alaska 99503 12/xx/200x SAMPLE BULK FUEL BUSINESS OPERATING PLAN BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS -CITY'S PORTION OF WORK PAGE 1 NOWHERE,ALASKA SAMPLE DATE:December xx,20xx HMS Project No.:»000000K« NOTES REGARDING THE PREPARATION OF THIS ESTIMATE These Operations/Maintenance and Replacement/Renewal costs are based on Nikolai Fuel Facility conceptual drawings 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 2002 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 the existing tank farm,O&M,and R&R costs for non-related tank farm work. ESTIMATING ASSUMPTIONS Operation/Maintenance Costs:All costs are on yearly basis for one time event only. 0 5 10 16 20 25 30 35 40 Years:||||||||| I |1 |T T 1 1 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 years item to be renewed or replaced. Note:The original draft has been revised to incorporate project manager's comments. City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-2 SAMPLE BULK FUEL BUSINESS OPERATING PLAN BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS -CITY'S PORTION OF WORK PAGE 2 NOWHERE,ALASKA SAMPLE DATE:December xx,20xx HMS Project No.:»x0000000K SUMMARY TOTAL COST One Time Cost (In 2002 Dollars) A.Operations &Maintenance Costs (Yearly)20,013 x 40 Years =$800,522 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 (2002 DOLLARS):See Business Plan Table NOTE:Items B and C costs are for multiple events over 40 years period.See Business Plan Table for actual costs including inflation factor and number of occurrences/event. City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-3 oaMP_W ULhvuJL ELL..TESs Ur JRA uv PLaw BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS -CITY'S PORTION OF WORK NOWHERE,ALASKA SAMPLE HMS Project No.:socoxxxx PAGE 3 DATE:December xx,20xx 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 Nowhere fuel facility tank farm comprising (3)27,000 gallon tanks and (2)10,000 gallon tanks and (1)4,000 gallon dispensing tank with fill and dispensing lines and pumping system (total shell capacity 105,000 gallons -excludes NASD 4,000 and 12,000 gallon tanks). All costs are projected on yearly basis using local labor and construction equipment rented from local resources. 1.GROUND MAINTENANCE Annual maintenance 12 Mos 6.000 72.000 20.23 1,457 1,457 SUBTOTAL 1.GROUND MAINTENANCE (YEARLY):1,457 1,457 2.TANKS,PIPELINES AND INSPECTIONS Fuel delivery (94,500 gallons - 1 time)1 LOT 32.000 32.000 20.23 647 647 Perform minor repairs,replace faulty valves and gauges (1 time/year -6 tanks)1 LOT 750.00 750 24.000 24.000 20.23 486 50.00 50 1,286 Annual!inspection/pressure testing (1 outside person)1 LOT 1000.00 1,000 26.000 26.000 75.00 1,950 200.00 200 3,150 SUBTOTAL 2.TANKS,PIPELINES,ETC.(YEARLY):1,750 3,083 250 5,083 City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-4 oaMPuc pULA ruil BLL..IES!PTRAaawu PLai BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS -CITY'S PORTION OF WORK NOWHERE,ALASKA SAMPLE HMS Project No.:00000 PAGE 4 DATE:December xx,20xx 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 $$ 3.OTHER COSTS Operator training 1 EA 16.000 16.000 45.00 720 720 Administration -clerical 12 Mos 6.000 72.000 16.80 1,210 1,210 Supervision 12 Mos 5.000 60.000 22.40 1,344 1,344 Annual audit (in Anchorage)1 EA 17.000 17.000 100.00 1,700 1,700 Tankage insurance (through put)85,000 Gal 0.10 8,500 8,500 SUBTOTAL 3.OTHER COSTS (YEARLY):8,500 4,974 13,474 SUMMARY (YEARLY) 1.GROUND MAINTENANCE $1,457 2.TANKS,PIPELINES AND INSPECTIONS 5,083 3.OTHER COSTS 13,474 TOTAL IN PRESENT DOLLARS/YEAR:$20,013 City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-5 SAMPLE BULK FUEL BUSINESS OPERATING PLAN BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS -CITY'S PORTION OF WORK NOWHERE,ALASKA SAMPLE PAGE 5 DATE:December xx,20xx HME-Projeet NeHMG-Prejeet Nex QUANTITY MATERIAL LABOR EQUIPMENT B.Renewal Costs (Over 40 Years)No.of Units Unit Meas Unit Price Cost $ MH Unit Total Hrs Rate Cost Unit Price Cost $ TOTAL 1A.FENCE Repair fence and gates (at 10 and 30 years -2 times) 1B.PADS AND DIKE Grade pads (at 10 and 30 years - 2 times) Repair steps and landings and dispenser enclosure (at 5,15,25 and 35 years -4 times) 380 3,600 150 LF SF SF 3.75 0.30 13.50 1,425 1,080 2,025 0.250 0.010 0.800 95.000 36.000 120.000 17.85 17.85 17.85 1,696 643 2,142 1.60 0.28 2.00 608 1,008 300 3,729 2,731 4,467 SUBTOTAL 1A &B.FENCE AND PADS &DIKE:4,530 4,480 1,916 10,926 2A.TANKS Replace pumps (at 10,20,30 and 40 years -4 times -3 pumps) Replace miscellaneous valves and gauges (at 10,20,30 and 40 years - 4 times -6 tanks -18 valves) 2B.PIPELINES AND HEADERS Check barge fill line manifold and repair (at 10 and 30 years -2 times) City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-6 1 1 1 LOT LOT LOT 3600.00 710.00 600.00 3,600 710 600 24.000 10.000 26.000 24.000 10.000 26.000 17.85 17.85 17.85 428 179 464 170.00 100.00 200.00 170 100 200 4,198 989 1,264 SAMPLE BULK FUEL BUSINESS OPERATING PLAN BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS-CITY'S PORTION OF WORK NOWHERE,ALASKA PAGE 6 SAMPLE DATE:December xx,20xx HME Project No=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 $$ 28.PIPELINES AND HEADERS (Continued) Check and repair tank fill lines manifold (at 10 and 30 years -2 times)1 LOT 1450.00 1,450 36.000 36.000 17.85 643 300.00 300 2,393 SUBTOTAL 2.TANKS AND PIPELINES:6,360 1,714 770 8,844 3.ELECTRICAL MAINTENANCE Check electrical systems serving pumps and fuel dispensers and repair as necessary (at 5,10,15,25, 30 and 35 years -6 times -3 pumps)1 LOT 1125.00 1,125 18.000 18.000 22.50 405 100.00 100 1,630 SUBTOTAL 3.ELECTRICAL MAINTENANCE:1,125 405 100 1,630 SUMMARY (One time cost -multiply by number of times to be renewed) 1A &B.FENCE AND DIKES $10,926 2A &B.TANKS AND PIPELINES 8,844 3.ELECTRICAL MAINTENANCE 1,630 TOTAL IN PRESENT DOLLARS FOR 40 YEARS:$21,400 City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-7 oaMPux vwULh av JL BLL..JESS ur JRABRG PLauv BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS -CITY'S PORTION OF WORK PAGE 7 NOWHERE,ALASKA SAMPLE DATE:December xx,20xx HMS Project No.:»cooc00c0x 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 $$ 1A.FENCE Replace 6'0"fencing (at 20 and 40 years -2 times)380 3=LF 19.50 7,410 0.350 133.000 17.85 2,374 4.40 1,672 11,456 Replace 3'0"man gates (at 20 and 40 years -2 times)2 &EA 275.00 550 5.000 10.000 17.85 179 729 Ditto 12'0"gate (at 20 and 40 years - 2 times)2 EA 1250.00 2,500 16.000 32.000 17.85 571 3,071 1B.PAD,DIKE AND STEPS 3”gravel surfacing to pad,40 CY (at 20 and 40 years -2 times)3,600 SF 0.45 1,620 0.030 108.000 17.85 1,928 0.30 1,080 4,628 Replace steps and grating (at 20 and 40 years -2 times)150 SF 32.50 4,875 0.450 67.500 17.85 1,205 2.50 375 6,455 Replace concrete pad (at 20 and 40 years -2 times)SF Not Required Replace concrete foundations under tanks (at 40 years -1 time)LF Not Required Excavate,replace dike liner and backfill (at 40 years -1 time)6,525 SF 6.50 42,413 0.400 2610.000 17.85 46,589 1.50 9,788 98,789 SUBTOTAL 1A &B.FENCE,PAD &DIKE:59,368 52,845 12,915 125,127 City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-8 oAMEPuc oULh rudL Evv..NESo vr JRA uw PL. BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS-CITY'S PORTION OF WORK NOWHERE,ALASKA SAMPLE HMS Project No.:.»000000xx PAGE 8 DATE:December xx,20xx QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas Price $Unit Hrs Rate $Price $$ 2A.TANKS Replace fuel dispenser (at 10,20,30 and 40 years -4 times)1 EA 7500.00 7,500 24.000 24.000 75.00 1,800 2000.00 2,000 11,300 Refurbish and repaint tanks,27,000 gallon (at 40 years -1 time)3.EA 3000.00 9,000 125.000 375.000 75.00 28,125 1200.00 3,600 40,725 Ditto 10,000 gallon (ditto)2 EA 1500.00 3,000 70.000 140.000 75.00 10,500 700.00 1,400 14,900 Replace dual product tank,4,000 gallon (at 40 years -1 time)1 EA 1000.00 1,000 45.000 45.000 75.00 3,375 400.00 400 4,775 2B.PIPELINES AND HEADERS Replace 3”below grade barge line (at 40 years -1 time -2 pipes)1,845 LF 37.00 68,265 0.750 1383.750 17.85 24,700 5.20 9,594 102,559 Ditto 2"dispensing line (at 40 years - 1 time -1 pipe)450 LF 29.00 13,050 0.400 180.000 17.85 3,213 4.50 2,025 18,288 Replace 2"&3"diameter above grade fuel transfer line at tanks (at 40 years - 1 time -2 pipes)550 LF 32.00 17,600 0.450 247.500 17.85 4,418 2.00 1,100 23,118 City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-9 oaAMPux oULK rvucL BuoNES!PRA uw PLaiw BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS-CITY'S PORTION OF WORK NOWHERE,ALASKA SAMPLE HMS Project No.:»00000000K PAGE 9 DATE:December xx,20xx QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of Units Unit Meas Unit Price Cost $ MH Unit Total Hrs Rate Cost Unit Price Cost $ TOTAL 2B.PIPELINES AND HEADERS (Continued) Replace pipeline valves at barge and tank lines (at 20 and 40 years - 2 times -18 each) 2C.INSPECTION (OUTSIDE CONTRACTOR) Major inspection of tanks by outside group including per diem and travel costs (at 10,20 and 30 years - 3 times -5 tanks) EA LOT 2370.00 1575.00 2,370 1,575 22.000 40.000 22.000 40.000 17.85 75.00 393 3,000 400.00 400 2,763 4,975 SUBTOTAL 2.TANKS,PIPELINES &INSPECTION:123,360 79,524 20,519 223,403 3.ELECTRICAL SYSTEMS Replace wiring,panels and circuit breakers for pumps,etc.at each tank (at 20 and 40 years -2 times - 3 pumps)EA 14000.00 14,000 225.000 225.000 75.00 16,875 450.00 450 31,325 SUBTOTAL 3.ELECTRICAL SYSTEMS:14,000 16,875 450 31,325 City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-10 oAMPus oULh rudéL ELL..SESs ur dRAsiuvs PL... BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS-CITY'S PORTION OF WORK NOWHERE,ALASKA SAMPLE HMS Project No.:20000000 PAGE 10 DATE:December xx,20xx 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 $$ SUMMARY (One time cost -multiply by times to be replaced) 1A &B.FENCE AND DIKES $125,127 2A &B.TANKS AND PIPELINES 223,403 3.ELECTRICAL SYSTEMS 31,325 TOTAL RENEWAL:$379,854 City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-11 COST CONSULTANT HMS Inc. 4103 Minnesota Drive Anchorage,Alaska 99503 (907)561-1653 (907)562-0420 FAX City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-12 SAMPLE BULK FUEL BUSINESS OPERATING PLAN SAMPLE BULK FUEL OPERATION &MAINTENANCE AND REPLACEMENT &RENEWAL COSTS SCHOOL'S PORTION OF WORK NOWHERE,ALASKA HMS #xxxxxXxxXX CLIENT AEA 813 W.Northern Lights Blvd. Anchorage,Alaska 99503 December xx,20xx SAMPLE BULK FUEL BUSINESS OPERATING PLAN BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS -SCHOOL'S PORTION OF WORK PAGE 1 NOWHERE,ALASKA SAMPLE DATE:December xx,20xx HMS Project No.:»x000xx NOTES REGARDING THE PREPARATION OF THIS ESTIMATE These Operations/Maintenance and Replacement/Renewal costs are based on Nikolai Fuel Facility conceptual drawings 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 2002 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 the existing tank farm,O&M,and R&R costs for non-related tank farm work. ESTIMATING ASSUMPTIONS Operation/Maintenance Costs:All costs are on yearly basis for one time event only. 0 5 10 15 20 25 30 35 40 Years:||||||||| ||I I ]I |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 years item to be renewed or replaced. Note:The original draft has been revised to incorporate project manager's comments. City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-13 SAMPLE BULK FUEL BUSINESS OPERATING PLAN BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS -SCHOOL'S PORTION OF WORK PAGE 2 NOWHERE,ALASKA SAMPLE DATE:December xx,20xx HMS Project No.:200000xxxxx SUMMARY TOTAL COST One Time Cost (In 2002 Dollars) A.Operations &Maintenance Costs (Yearly)2,318 x 40 Years =$92,738 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 (2002 DOLLARS):See Business Plan Table NOTE:Items B and C costs are for multiple events over 40 years period.See Business Plan Table for actual costs including inflation factor and number of occurrences/event. City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-14 oaMPuc oULK rucL BuaiVvES{TRA PLaw BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS -SCHOOL'S PORTION OF WORK NOWHERE,ALASKA PAGE 3 SAMPLE DATE:December xx,20xx HMS Project No.:»000xx QUANTITY MATERIAL LABOR EQUIPMENT A.Operations &Maintenance Costs (Yearly)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units _|Meas Price $Unit Rate $Price $$ NOTE:These projections are based on Nowhere fuel facility school tank farm comprising (1)12,000 gallon tank and (1)4,000 gallon intermediate tank with fill and dispensing lines and pumping system (total shell capacity 16,000 gallons) All costs are projected on yearly basis using local labor and construction equipment rented from local resources. 1.GROUND MAINTENANCE Annual maintenance 12 Mos 2.000 24.000 20.23 486 486 SUBTOTAL 1.GROUND MAINTENANCE (YEARLY):486 486 2.TANKS,PIPELINES AND INSPECTIONS Fuel!delivery (14,400 gallons - 1 time)1 LOT 4.000 4.000 20.23 81 81 Perform minor repairs,replace faulty valves and gauges (1 time/year -2 tanks)1 LOT By School Annual inspection/pressure testing (1 outside person)1 LOT 250.00 250 4.000 4.000 75.00 300 50.00 50 600 SUBTOTAL 2.TANKS,PIPELINES,ETC.(YEARLY):250 381 50 681 City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-15 osAMPie pULK rucl BuouvES!-TRA 1 PLaw BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS -SCHOOL'S PORTION OF WORK NOWHERE,ALASKA PAGE 4 SAMPLE DATE:December xx,20xx HMS Project No.:»0000xx 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 $$ 3.OTHER COSTS Operator training 1 EA 4.000 4.000 45.00 180 180 Administration -clerical 12 Mos 2.000 24.000 16.80 403 403 Supervision 12 Mos 1.000 12.000 22.40 269 269 Annual audit (in Anchorage)1 EA 3.000 3.000 100.00 300 300 Tankage insurance (through put)14,400 Gal By School SUBTOTAL 3.OTHER COSTS (YEARLY):1,152 1,152 SUMMARY (YEARLY) 1.GROUND MAINTENANCE $486 2.TANKS,PIPELINES AND INSPECTIONS 681 3.OTHER COSTS 1,152 TOTAL IN PRESENT DOLLARS/YEAR:$2,318 City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-16 SAMPLE BULK FUEL BUSINESS OPERATING PLAN BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS -SCHOOL'S PORTION OF WORK NOWHERE,ALASKA SAMPLE HMS Project No.:s00c000x PAGE 5 DATE:December xx,20xx QUANTITY MATERIAL LABOR EQUIPMENT B.Renewal Costs (Over 40 Years)No.of Units Unit Meas Unit Price Cost $ MH Unit Total Hrs Rate Cost Unit Price Cost $ TOTAL 1A.FENCE Repair fence and gates (at 10 and 30 years -2 times)160 1B.PADS AND DIKE Grade pads (at 10 and 30 years - 2 times)600 Repair steps and landings and dispenser enclosure (at 5,15,25 and 35 years -4 times)30 LF SF SF 3.75 0.30 13.50 600 180 405 0.250 0.010 0.800 40.000 6.000 24.000 17.85 17.85 17.85 714 107 428 1.60 0.28 2.00 256 168 60 1,570 455 893 SUBTOTAL 1A &B.FENCE AND PADS &DIKE:1,185 1,250 484 2,919 2A.TANKS Replace pumps (at 10,20,30 and 40 years -4 times -1 pump)1 Replace miscellaneous valves and gauges (at 10,20,30 and 40 years - 4 times -2 tanks)1 2B.PIPELINES AND HEADERS Check barge fill line manifold and repair (at 10 and 30 years -2 times)1 City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-17 LOT LOT LOT 150.00 150 4.000 4.000 17.85 71 50.00 50 By School By School 271 SAMPLE BULK FUEL BusiiNESS OPERA +rPLAN BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS -SCHOOL'S PORTION OF WORK NOWHERE,ALASKA SAMPLE HMS Project No.:»x000000x PAGE 6 DATE:December xx,20xx 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 (Continued) Check and repair tank fill lines manifold (at 10 and 30 years -2 times)1 LOT 250.00 250 8.000 8.000 17.85 143 50.00 50 443 SUBTOTAL 2.TANKS AND PIPELINES:400 214 100 714 3.ELECTRICAL MAINTENANCE Check electrical systems serving pumps and fuel dispensers and repair as necessary (at 5,10,15,25, 30 and 35 years -6 times -1 pump)1 LOT 375.00 375 6.000 6.000 22.50 135 50.00 50 560 SUBTOTAL 3.ELECTRICAL MAINTENANCE:375 135 50 560 SUMMARY (One time cost -multiply by number of times to be renewed) 1A &B.FENCE AND DIKES $2,919 2A &B.TANKS AND PIPELINES 714 3.ELECTRICAL MAINTENANCE 560 TOTAL IN PRESENT DOLLARS FOR 40 YEARS:$4,193 City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-18 SAMPLE BULK FUEL BUSINESS OPERATING PLAN BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS -SCHOOL'S PORTION OF WORK NOWHERE,ALASKA SAMPLE HMS Project No.:»000000a PAGE 7 DATE:December xx,20xx 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 $$ 1A.FENCE Replace 6'0"fencing (at 20 and 40 years -2 times)160 LF 19.50 3,120 0.350 56.000 17.85 1,000 4.40 704 4,824 Replace 3'0"man gates (at 20 and 40 years -2 times)2 EA 275.00 550 5.000 10.000 17.85 179 729 Ditto 12'0"gate (at 20 and 40 years - 2 times)EA 1B.PAD,DIKE AND STEPS 3"gravel surfacing to pad,8 CY (at 20 and 40 years -2 times)600 SF 0.45 270 0.030 18.000 17.85 321 0.30 180 771 Replace steps and grating (at 20 and 40 years -2 times)30 SF 32.50 975 0.450 13.500 17.85 241 2.50 75 1,291 Replace concrete pad (at 20 and 40 years -2 times)SF Not Required Replace concrete foundations foundations under tanks (at 40 years 1 time -1 tank)24 «LF 4.00 96 0.100 2.400 17.85 43 139 Excavate,replace dike liner and backfill (at 40 years -1 time)975 SF 6.50 6,338 0.400 390.000 17.85 6,962 1.50 1,463 14,762 SUBTOTAL 1A &B.FENCE,PAD &DIKE:11,349 8,745 2,422 22,515 City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-19 SAMPLE BULK FUEL BUSINESS OPERATING PLAN BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS -SCHOOL'S PORTION OF WORK NOWHERE,ALASKA SAMPLE HMS Project No.:»x000000a PAGE 8 DATE:December xx,20xx QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas Price $Unit Hrs Rate $Price $$ 2A.TANKS Replace fuel dispenser (at 10,20,30 and 40 years -4 times)EA Refurbish and repaint tanks,12,000gallon (at 40 years -1 time)1 EA By School Ditto 4,000 gallon (ditto)1 EA By School 2B.PIPELINES AND HEADERS Replace 3”below grade barge line (at 40 years -1 time -2 pipes)275 =OLF 37.00 10,175 0.750 206.250 17.85 3,682 5.20 1,430 15,287 Ditto 2"dispensing line (at 40 years - 1 time -1 pipe)LF By School Replace 2”&3"diameter above grade fuel transfer line at tanks (at 40 years - 1 time -2 pipes)LF By School City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-20 SAMPLE BULK FUEL BUSINESS OPERATING PLAN BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS -SCHOOL'S PORTION OF WORK NOWHERE,ALASKA SAMPLE HMS Project No.:»cco0o@0c PAGE 9 DATE:December xx,20xx QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of Units Unit Unit Cost MH Total Meas Price $Unit Hrs Rate Cost Unit Cost $Price $ TOTAL 2B.PIPELINES AND HEADERS (Continued) Replace pipeline valves at barge and tank lines (at 20 and 40 years - 2 times -6 each) 2C.INSPECTION (OUTSIDE CONTRACTOR) Major inspection of tanks by outside group including per diem and travel costs (at 10,20 and 30 years - 3 times -2 tanks) EA LOT By School By School SUBTOTAL 2.TANKS,PIPELINES &INSPECTION:10,175 3,682 1,430 15,287 3.ELECTRICAL SYSTEMS Replace wiring,panels and circuit breakers for pumps,etc.at each tank (at 20 and 40 years -2 times - 1 pump)EA By School SUBTOTAL 3.ELECTRICAL SYSTEMS: City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-21 SAMPLE BULK FUEL BUSINESS OPERATING PLAN BULK FUEL OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS -SCHOOL'S PORTION OF WORK NOWHERE,ALASKA SAMPLE HMS Project No.:»coooo00n PAGE 10 DATE:December xx,20xx 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 $$ SUMMARY (One time cost -multiply by times to be replaced) 1A &B.FENCE AND DIKES $22,515 2A &B.TANKS AND PIPELINES 15,287 3.ELECTRICAL SYSTEMS TOTAL RENEWAL:$37,801 City of Nowhere Bulk Fuel Facility Business Operating Plan Appendix B-22 SAMPLE BULK FUEL BUSINESS OPERATING PLAN ADDITIONAL RELATED AND ATTACHED DOCUMENTS 1.O&M Agreement 2.Secondary Operator Agreement 3.Site Control Documents 4.Grant Agreement 5.R&R Fund Account --Sample Documents _ O&M Agreement SAMPLE BULK FUEL BUSINESS OPERATING PLAN OPERATIONS AND MAINTENANCE AGREEMENT City of Nowhere and Nowhere Area School District WHEREAS the Nowhere Bulk Fuel Storage Facility is to be constructed in Nowhere,Alaska,by the Alaska Energy Authority; WHEREAS the City of Nowhere will be the Primary Operator of a Bulk Fuel Storage Facility;which is being constructed for the benefit and use of the Participants,as well as for the greater benefit of the general public,and will be operated in good faith by the Primary Operator; WHEREAS the Participants are the City of Nowhere and the Nowhere Area School District; WHEREAS the Alaska Energy Authority is acting as an agent for the Denali Commission,using various Grant funding for the construction of the Bulk Fuel Storage Facility; WHEREAS the Commission has required that the Primary Operator prepare a Business Operating Plan that provides for operating and maintaining the Facility; WHEREAS the City of Nowhere,Bulk Fuel Facility Business Operating Plan,dated January 1,2002, has been prepared;and WHEREAS the Business Operating Plan intends that an agreement be entered into between the Participants of the Facility that specifies each Participant's responsibilities regarding operations and maintenance of the Facility and payment for such services and this Operations and Maintenance Agreement is such agreement. Now THEREFORE,the Parties agree as follows: SECTION 1;DEFINITIONS.For purposes of this Agreement,the following definitions apply: a."Agreement”means this Operations and Maintenance Agreement. b."Business Operating Plan”,or "Plan”,means the City of Nowhere,Bulk Fuel Facility Business Operating Plan,dated January 1,2002. c."Concept Design Report”,or "CDR”,means the concept design and construction cost estimate for the Facility submitted to AEA on December 15,2001 Acme Engineering, Inc. d."Land Lease Agreement”means the agreement,if needed,between the owner of the land upon which the Facility is located and the Primary Operator. e."Participants”mean the owners of the Facility assets,including the City of Nowhere and the Nowhere Area School District. "City”means the City of Nowhere. ."NASD”means the Nowhere Area School District. ."Commission”means the Denali Commission or its successor. "AEA”means the Alaska Energy Authority. "Facility”means the Bulk Fuel Storage Facility to be constructed in Nowhere. k."Common Facilities”means Facility assets that are shared proportionately among the Participants.SOPBogom SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Facility Operations and Maintenance Agreement Page 2 1."Primary Operator”means the Participant responsible for operating and maintaining both its own and Common Facilities. m."Operations and Maintenance”,or "O&M”,means expenses that are incurred on a regular basis (administration,audits,etc)and maintenance expenses that are incurred on an annual basis. n."O&M Account”means a separate non-interest bearing account established and maintained for holding and disbursing funds for O&M. o."Renewal and Replacement”,or "R&R”,means expenses costing greater than $5,000 and/or that are not replaced on an annual basis. p-"R&R Fund”means an interest-bearing invested escrow account established and maintained for holding and disbursing funds for R&R. q."Fiscal Year”means the 12-month period from July 1*to June 31%. SECTION 2:PROJECT DESCRIPTION This project will construct the Facility in Nowhere that will replace all of the existing storage facilities of the Participants.The project is described in detail in the Plan and in the CDR (except as noted in the plan),which is a concept design and construction cost estimate for consolidation and upgrade of bulk fuel storage in the community. SECTION 3:OWNERSHIP The ownership of Facility assets is inclusive of Participants and is described in detail in the Plan, particularly Section IV.Facility Participants. SECTION 4:RESPONSIBILITY FOR OPERATION,MAINTENANCE,REPAIR AND SUSTAINABILITY The responsibilities for operation,maintenance,repair and sustainability of the Facility and its assets are outlined in the Plan,particularly Section IV.Facihty Participants and Section V.Primary Operator. The Primary Operator agrees to operate and maintain the Facility in a prudent manner and to keep all Facility components (except those non-Common Facilities owned and maintained by other Participants)in good working order. Each Participant shall have access to the premises sufficient to enable the Participant to conduct its operations,maintenance,and repairs and to enjoy its other rights and discharge its other responsibilities under this Agreement.Each Participant shall maintain the premises that it occupies or uses in an orderly,neat and clean condition,free of hazard and nuisance.No Participant shall cause,maintain,or permit any public or private nuisance to exist on the premises.Each Participant shall conduct its operations on the premises so as to avoid interference with the other Participants' operations on the premises. SECTION 5:FINANCIAL RESPONSIBILITY All Participants agree to pay to the Primary Operator their respective share of costs as specified herein and as per the allocation formula used in the determination of costs in the Plan,and to assume the financial responsibilities of the Participants as outlined in the Plan,particularly Section IV. Facility Participants and Section V.Primary Operator. SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Facility Operations and Maintenance Agreement Page 3 At least once each year,no later than May 31*,the Primary Operator will convene a meeting of the Participants for the purpose of developing a budget of shared costs for the coming fiscal year beginning July 1.The Participants shall use their best efforts to reach agreement on the annual SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Facility Operations and Maintenance Agreement Page 4 budget of shared costs.However,if no agreement is reached by May 31",the Primary Operator shall have the sole authority to establish a reasonable budget of shared costs for the coming fiscal year,based on its best estimate of actual costs for the year,and to collect from each Participant its proportionate share of the budgeted costs.Each Participant shall pay its share of the costs by June30”. The annual sum of deposit into the O&M Fund and R&R Fund will depend on actual costs,but for the first year this sum will be set at the levels specified in the Plan.Beginning in year two,the budget for the upcoming year shall be adjusted up or down by the shortfall or surplus of the prior year's budget as compared to actual O&M or R&R costs.In the event of unanticipated budget shortfalls,it may be necessary to adjust the annual budget during the course of the year. The Primary Operator shall keep the shared cost payments in a separate account,and shall use the payments only for the costs identified above.The Primary Operator shall properly account for all expenditures from this account.The Primary Operator must provide back-up documentation that fairly justifies its annual budget using the allocation methods described in the Plan.Each Participant may review the accounting records,invoices,and other documents associated with the shared costs, and the information upon which the proposed budget of shared costs is based. SECTION 6:EXCLUSIONS Operations and maintenance of the Participant's fuel dispensing facilities will be the responsibility of individual participants and are not part of this Agreement.Neither the AEA nor the Commission will take responsibility for any environmental cleanup and remediation issues;see the Plan,for a discussion of project exclusions,particularly Section III.Facility Upgrade. SECTION 7:BUSINESS OPERATING PLAN The Business Operating Plan,the "Plan”,is incorporated by reference herein and the execution of this Agreement is an agreement to adhere to all of the Terms &Conditions contained in the Plan. SECTION 8:REPORTING AND AUDITING The responsibilities and requirements for reporting and auditing are detailed in the Plan,particularly Section V.Primary Operator and Section VII.Environmental Information.The Primary Operator shall provide all Participants with copies of the annual financial report and audit. Each Participant has a right to review and copy,at its own expense,any plans,manuals,reports,and other documents required by or submitted to,any regulatory agency by any other Participant, including but not limited to submittals to the Alaska Department of Environmental Conservation, the U.S.Coast Guard,and the U.S.Environmental Protection Agency. SECTION 9:DISPUTES If a dispute arises between the parties to this agreement,the parties will attempt to resolve the dispute through mediation.If that is unsuccessful,a party may bring an action to resolve the dispute in the Superior Court of the State of Alaska. SECTION 10:LAND SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Facility Operations and Maintenance Agreement Page 5 All unresolved land issues will be resolved prior to startup of Facility construction.See Land Lease Agreement,if needed,for details of land lease terms and conditions. SECTION 11:SECONDARY OPERATOR The Secondary Operator,as identified in the Plan,Section VI.Secondary Operator,shall be the Secondary Operator until such time that it chooses not to act as such or the Commission designates an alternative Secondary Operator.If the Secondary Operator,as designated in the Plan,chooses not to act as Secondary Operator,its successor must be approved by the Commission. The Secondary Operator does not have any responsibilities under this Agreement unless and until it is designated to act in the role of the Primary Operator.At that time,its responsibilities will be that of the Primary Operator pursuant to this Agreement and as described in the Plan. SECTION 12:TERM This Agreement shall become effective on the date when all Participants have signed this Agreement and shall remain in effective until terminated by the Participants. SECTION 13:MODIFICATIONS AND IMPROVEMENTS Each Participant shall have the right to make such modifications,additions and repairs to its facilities as are reasonably necessary to its operations and activities. If a Participant's property on the premises is destroyed by fire,earthquake,or other cause,the Participant shall remove the debris and clean up the immediate area as soon as possible within 270 days of the occurrence. SECTION 14:COMPLIANCE WITH LAWS AND ACCEPTED PRACTICES Each Participant that is responsible for the operation and maintenance of its facilities will conduct its Operations in compliance with manufacturer's recommendations and all applicable State and federal laws and regulations.In addition,each such Participant shall at all times conduct its operations in accordance with the safety,fire prevention and oil spill prevention practices generally accepted as proper for such facilities.Each Participant shall comply with the spill prevention and response procedures established in the Facility Response Plan,Operations Manual,and Spill Prevention Control and Countermeasure Plan. If a release or threatened release of oil or other hazardous substance occurs,the responsible party will promptly take whatever measures are necessary to stop or prevent the release,clean up the release,mitigate the damage caused thereby,and restore the area."Responsible party”means the Participant whose activities proximately caused the release or threatened release,or if the release or threatened release is not caused by an identifiable activity,the owner of the premises at which the release or threatened release occurs.As described in the Facility Response Plan,in the event of an oil spill,all Participants shall assist one another with manpower and equipment to cleanup spilled fuel. SECTION 15:NOTICES Any and all notices required or permitted under this Agreement,unless otherwise specified in writing by the party whose address is changed,shall be addressed as follows: SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Facility Operations and Maintenance Agreement Page 6 City of Nowhere Primary Contact Name:Joe Sith,City Administrator Phone:(907)999-9999 Fax:(907)999-9998 Address:City of Nowhere,P.O.Box 1212,Nowhere,AK 99999 Nowhere Area School District Primary Contact Name:Jane Smith,Maintenance Director Phone:(907)999-9997 Fax:(907)999-9996 Additional Contact Name:Mary Jones,Superintendent Phone:(907)999-9995 Fax:(907)999-9994 Address:NASD District Office,P.O.Box 1211,Nowhere,AK 99999 CITY OF NOWHERE (Signature)(Date) (Name Printed)(Title) NOWHERE AREA SCHOOL DISTRICT (Signature)(Date) (Name Printed)(Title) Secondary OperatorAgreement SAMPLE BULK FUEL BUSINESS OPERATING PLAN SECONDARY OPERATOR AGREEMENT FOR THE NOWHERE BULK FUEL STORAGE FACILITY WHEREAS,the Denali Commission ("Commission”)has provided,or will provide,funds to the Alaska Energy Authority ("Authority”)for a grant by the Authority to the City of Nowhere ("City”) for the upgrading of bulk fuel storage facilities at Nowhere,Alaska (the "Facility”)owned by the City;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 City have agreed to a Business Plan consistent with the Sustainability Criteria for the operation of the Facility,as contained in the City of Nowhere Bulk Fuel Facility Business Operating Plan dated January 1,2002 ("Plan”);and WHEREAS,the Plan specifies that the City shall act as the Primary Operator of the Facility,as specified therein,and shall operate the Facility in compliance with the terms and conditions of the Plan;and WHEREAS,the Commission and the City agree that,if the Primary Operator is not operating the Facility in compliance with the terms and conditions of the Plan,the Commission may designate a Secondary Operator to assist the Primary Operator or to take over such functions of the Facility operations that the Commission determines are necessary for such time as it determines is necessary, pursuant to the terms and conditions of this Agreement; Now THEREFORE,the Commission and the City agree as follows,in consideration for the mutual promises contained herein and the benefits to the parties resulting from the completion and operation of the Facility: 1.The Primary Operator shall operate the components of the Facility specified in the Plan in accordance with the terms and conditions of the Plan and the requirements contained herein. 2.In addition to,and consistent with its duties specified in the Plan,the Primary Operator shall,in a timely manner: 2.1 properly establish and maintain accurate books and records; 2.2 account for,bill for,and use its best efforts to collect all fuel sales and all other receivables; SAMPLE BULK FUEL BUSINESS OPERATING PLAN Secondary Operator Agreement for the Nowhere Bulk Fuel Storage Facility Page 2 of5 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 a Secondary Operator. 4.The Commission has the sole right to transfer the full custody and control of the assets and business operations of the Facility,including but not limited to,the cash,receivables,and inventory of the Facility,to the Secondary Operator and assign the Secondary Operator responsibility for partial or total management of the Facility. 4.1 4.2 4.3 The Commission may appoint the Secondary Operator to assist the Primary Operator in some or all aspects of the Facility operations or to take over some or all aspects of Facility operation from the Primary Operator,in such a manner and for such period of time as the Commission determines to be necessary and appropriate for operation of the Facility in compliance with the Plan and the long-term economic sustainability of the Facility.(For example,the Secondary Operator may be asked to assist the Primary Operator for a short period of days or weeks in bringing certain aspects of the operations back into compliance. Alternatively,the Secondary Operator may be asked to replace the Primary Operator as Facility operator.The foregoing are intended only as illustrative examples,without limiting the effect of this Agreement.) If the Commission utilizes a Secondary Operator,the Primary Operator will transfer the complete control and authority over the following assets to the Secondary Operator:the books and records relating to the Facility operations,accounts receivable,and all account funds.The City agrees to cooperate with the Commission and the Secondary Operator in the release of the stated assets and the transfer of operations to the Secondary Operator. The Secondary Operator will be entitled to reasonable compensation for its services.This compensation will,at a minimum,reimburse the Secondary Operator for any and all expenses associated with their duties as Facility operator,plus a reasonable profit.The profit will not exceed what is considered normal and customary for like service,as determined by the Commission in the exercise of its sole discretion. SAMPLE BULK FUEL BUSINESS OPERATING PLAN Secondary Operator Agreement for the Nowhere Bulk Fuel Storage Facility Page 3 of 5 10. 4.4 The parties anticipate that,if a Secondary Operator is appointed,the Commission will appoint (fo be determined),which will joint venture with an establish bulk fuel operator. However,the parties acknowledge that ('0 be determined)may not exist or be willing to serve in this capacity at the time a Secondary Operator is needed,or other circumstances may prevent (fo be determined)from serving as Secondary Operator.Therefore,the City acknowledges and agrees that the Commission may appoint any qualified entity or entities to serve as Secondary Operator.The Commission will consult with the City on the replacement to the Secondary Operator;however,the Commission maintains final approval authority for the replacement Secondary Operator. 4.5 The Commission will act reasonably and responsibly in its enforcement of the Plan and this Agreement and its designation of a Secondary Operator,consulting with the City and taking into account the needs and interests of the community of Nowhere as well as the general public interest.If the Commission employs the Secondary Operator,the Commission shall oversee the operations of the Secondary Operator to make sure that it is conducting its operations reasonably,in a cost-efficient manner,and consistent with the needs and interests of the community as well as the general public interest. If a dispute or controversy arises between the parties to this Agreement or among the parties to an agreement with the Secondary Operator,application or enforcement of this Agreement shall be decided through mediation.If mediation is unsuccessful,any party to this Agreement may bring an action to resolve the dispute in the Superior Court of the State of Alaska. This Agreement may be executed simultaneously in two (2)or more counterparts,each of which will be considered an original,but all of which together will constitute one and the same instrument.The exchange of a fully executed Agreement (in counterparts or otherwise)by fax shall be sufficient to bind the parties to the terms and conditions of this Agreement. No delay on the part of a party in the exercise of any right,power,or remedy shall operate as a waiver thereof,nor shall any single or partial exercise of any right,power,or remedy preclude other or further exercise thereof or the exercise of any other right,power,or remedy.No amendment, modification,or waiver of,or consent with respect to,any provision of this Agreement shall be effective unless it shall be in writing and signed and delivered by the parties hereto. All notices,demands or requests required or allowed under this Agreement or applicable law from one party to another shall be in writing and delivered in person or sent by mail,certified or registered,postage prepaid,to the parties hereto at the addresses set forth in this Agreement or to such other persons and addresses as either party may designate.Notice shall be deemed to have been given three (3)days after the day of mailing. This Agreement is a contract made under and governed by the laws of the State of Alaska.All obligations and rights of the parties stated herein shall be in addition to,and not in limitation of, those provided by applicable law. This Agreement shall be binding upon,and inure to the benefit of,the parties hereto,and their respective heirs,successors,and assigns. SAMPLE BULK FUEL BUSINESS OPERATING PLAN Secondary Operator Agreement for the Nowhere Bulk Fuel Storage Facility Page 4 of 5 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: for the CITY OF NOWHERE by (Signature)(Date) (Name Printed)(Title) STATE OF ALASKA ) )ss. FOURTH JUDICIAL DISTRICT ) The foregoing Agreement was acknowledged before me this day of 2002,by ,the of the City of Nowhere. Notary Public,State of Alaska My Commission Expires: for the DENALI COMMISSION by (Signature)(Date) (Name Printed)(Title) STATE OF ALASKA ) )ss. FOURTH JUDICIAL DISTRICT _) The foregoing Agreement was acknowledged before me this day of 2002,by ,the of the Denali Commission. SAMPLE BULK FUEL BUSINESS OPERATING PLAN Secondary Operator Agreement for the Nowhere Bulk Fuel Storage Facility Page 5 of 5 Notary Public,State of Alaska My Commission Expites: for (TO BE DETERMINED) by (Signature)(Date) (Name Printed)(Title) STATE OF ALASKA ) FOURTH JUDICIAL DISTRICT _) The foregoing Agreement was acknowledged before me this day of 2002,by ,the of the Notary Public,State of Alaska My Commission Expires: Site ControlDocuments SAMPLE BULK FUEL BUSINESS OPERATING PLAN GROUND LEASE This lease is entered into this day of 20___,between Nowhere Corporation,hereinafter,called the Lessor,whose address is 140 Glenn Highway,Suite 100, Anchorage,AK 99503 and City of Nowhere,hereinafter called the Lessee,whose address is P.O. Box 1212,Nowhere,AK 99999. The parties agree as follows: 1.The Premises.The Lessor agrees to lease to the Lessee the exclusive right to construct, operate,and maintain a power plant,bulk fuel transfer and storage site and related facilities on the surface estate of the following real property which is located in the State of Alaska. The surface estate of certain land within Section xx,Township xxxx,Range xxx,Xxxxx Meridian,xxxxx Recording District,xrd Judicial District and more particularly described in Appendix A attached to this lease.Some of the bearings and distances are based on ptotractions from aerial photos and are subject to redescription upon survey and possible amendments to the description necessary to reflect as built alignments of improvements. Term of Lease.The lease term shall be in perpetuity provided the premises are used for power plant,bulk fuel storage and transfer and related facilities,and,provided further than the otherprovisionsoftheleasearecompliedwith. Automatic Termination.The lease shall automatically terminate if the premises cease to be used for a bulk fuel transfer and storage site and related facilities. Rent.Because of mutual benefits to both the Lessor and the Lessee and in consideration of the benefits from construction and operation of the bulk fuel storage facilities,no rent will be charged. Reservation of Rights.The Lessor reserves the right to grant to others the rights and privileges to use the premises not specifically and exclusively granted to the Lessee.The rights and privileges granted to the Lessee in this lease are the only rights and privileges granted to the Lessee by this lease.The Lessee has no easements,rights or privileges,expressed or implied, other than those specifically granted by this lease. Valid Existing Rights.This lease is entered into and made subject to all valid existing rights, including easements,rights-of-way,reservations,or other interests in the premises,in existence on the date the lease is entered into. Encumbrance of Premises.During the term of this lease,the Lessee may not assign this lease or sublet the premises,nor enter into any lease,easement,or other obligation of the Lessor's title without the prior written approval of the Lessor.Any such act,without prior written approval of the Lessor,is void against the Lessor's title to the premises. Subleases.The Lessee shall provide the Lessor with copies of all applications for subleases, assignments,proposals for development,and construction as-builts,as they become available. City of Nowhere Site Control Documents 10. 11. 12. 13. 14. 15. SAMPLE BULK FUEL BUSINESS OPERATING PLAN Successors Bound,All covenants and provisions in this lease extend to and bind the legal representatives,successors,sublessees,and assigns of the patties. Access to Premises.The Lessor or its authorized representatives reserve the right of ingress to and egress from the premises. Operation and Maintenance.At no cost to the Lessor,the Lessee will provide all utilities, services,and maintenance necessary for the Lessee's use of the premises.The Lessee will take reasonable steps to protect the surface of the leased area and natural resources,and improvements thereon,and maintain the premises in a reasonably neat and clean condition. Surface Reservation.Unless otherwise stated in this lease,the Lessee may not sell or remove for use elsewhere any of the surface resources of the premises. Breach and Remedies. (a)The premises are to be used only for purposes of power plant,bulk fuel storage and transfer and related facilities.The premises are to be used only for purposes related to developing,operating and protecting the power plant and bulk fuel storage system and other activities that will serve the greater good of the community of Nowhere and for no other purpose without specific written authorization of the Lessor.The Lessor retains the right to terminate this lease upon 30 days written notice if the premises are used for unauthorized purposes. (b)Time is of the essence in this lease.If the Lessee breaches any provision of this lease, other than a breach for improper use of the premises which is governed by subparagraph (a),and the breach is not remedied within 30 days after written notice of it has been served on the Lessee,the Lessee is subject to any legal action that the Lessor considers appropriate,including the termination of this lease.The Lessor is not liable for any expenditures made by the Lessee in the event of the termination of this lease. (c)If this lease is terminated by summary proceeding or in any other manner,or if the ptemises or any part of it is abandoned by the Lessee during the term of this lease,the Lessor,after written notice to the Lessee,may immediately,or at any time afterwards, enter or re-enter and take possession of the premises,or any part of it,without liability for any damage,and may remove all persons and property from it either by summary proceeding or by legal action.The words "entry"and "re-entry"are not restricted to their technical legal meaning. No waiver.The failure of the Lessor to insist on any one or more instance upon the strict performance by the other party of any provision in this lease may not be considered as a waiver for the future;the provision will continue in full force. Indemnity of Lessor.The Lessee shall indemnify and hold the Lessor harmless from: City of Nowhere Site Control Documents SAMPLE BULK FUEL BUSINESS OPERATING PLAN (a)all claims and demands for loss or damage,including property damage,personal injury, wrongful death,and wage or employment claims,arising out of or in connection with the use or occupancy of the premises by the Lessee or his successor,or at his invitation;and (b)any accident or fire on the premises;and (c)any nuisance on the premises;and (d)any failure of the Lessee to keep the premises in a safe and lawful condition consistent with applicable laws,regulations,ordinances,or orders;and (e)any assignment,sublease,or conveyance,attempted or successful,by the Lessee which is contrary to the provisions of this lease. The Lessee will keep all goods,materials,furniture,fixtures,equipment,machinery,and other property on the premises at his sole risk,and will hold the Lessor harmless from any claim of loss or damage to them by any cause. 16.Notice of Claim.The patties agree to immediately notify each other of any claim,demand,or lawsuit arising out of or affecting the Lessee's occupation or use of the premises.Both parties will fully cooperate in the investigation and litigation of any claim,demand,or lawsuit affecting the premises. 17.Laws and Taxes.At no expense to the Lessor,the Lessee will conduct all activities authorized by this lease in compliance with all Federal,State,and local laws,ordinances,rules and regulations now or hereafter in force,which apply to the activities authorized herein or to the use,Cate,operation,maintenance,and protection of the facilities,including but not limited to matters of health,safety,sanitation,and pollution.The acquisition of any necessary licenses or permits and payment of any taxes and special assessments accruing against the premises during this lease term will be the responsibility of the Lessee or its sublessees and not that of the Lessor. 18.Notices.All notices and other writings required or permitted by this lease must be sent by registered or certified mail,postage prepaid,to the parties at the following addresses.A party must notify the other in writing of any change in address. Lessor:Nowhere Corporation 140 Glenn Highway,Suite 100 Anchorage,AK 99503 Lessee:City of Nowhere P.O.Box 1212 Nowhere,AK 99999 City of Nowhere Site Control Documents SAMPLE BULK FUEL BUSINESS OPERATING PLAN 19.Denial of Warranty Concerning Title or Conditions.The Lessor make no specific warranties, expressed or implied,concerning the title or condition of the premises,including survey, access,or suitability for any use,including those uses authorized by this lease.The Lessee leases the premises subject to any and all of the covenants,terms,and conditions affecting the Lessor's title to the premises. 20.Integration and Modification.This lease,including all documents,which by reference are incorporated in it or made a part of it,contains the entire agreement between the parties.This lease may not be modified or amended except by a document signed by both parties to this lease.Any amendment or modification,which is not in writing and signed by both parties,is of no legal effect. 21.Severability of Clauses of Lease.If any provision of this lease is adjudged to be invalid,that judgment does not affect the validity of any other provision of this lease,nor does it constitute any cause of action in favor of either party as against the other. 22.Headings.The heading of the numbered paragraphs in this lease shall not be considered in construing any provision of this lease. BY SIGNING THIS LEASE,the Lessor and the Lessee,agree to be bound by its provision as set out above. Appendix A:Property Description Appendix A-1:Corporation Board Resolution Appendix A-2:Village Resolution Lessor: By: Acknowledgement STATE OF ALASKA ) )SS. JUDICIAL DISTRICT _) This is to certify that on ,20 ,before me appeared ,known by me to be the ,of ,who is authorized to sign this lease as shown by the attached resolution (Appendix A-1),and who executed this lease and acknowledged voluntarily signing it on behalf of as Lessor. City of Nowhere Site Control Documents SAMPLE BULK FUEL BUSINESS OPERATING PLAN (SEAL) Notary Public in and for the State of Alaska My commission expires: Lessee: Acknowledgement STATE OF ALASKA ) )ss. JUDICIAL DISTRICT ) This is to certify that on ,20 ,before me appeared ,known by me to be the ,of ,who is authorized to sign this lease as shown by the attached resolution (Appendix A-2),and who executed this lease and acknowledged voluntarily signing it on behalf of as Lessee. (SEAL) Notary Public in and for the State of Alaska My commission expires: City of Nowhere Site Control Documents SAMPLE BULK FUEL BUSINESS OPERATING PLAN APPENDIX A WARNE,HEADER . BARGE LANOING be em ™L :NiProweerBULKFUELSTORAGE=_-=a Devarpent of Comte”ait PSmamic Owwionmert[DESIONED 6.eu OAT:yp any ve *,puAlOEASAEA ALASKA7FLENAME'SHEET OFmeCOMMUNITYSITEPLAN4 oN:ode tonver une Daa taheh itn City of Nowhere Site Control Documents SAMPLE BULK FUEL BUSINESS OPERATING PLAN NOWHERE CORPORATION BOARD RESOLUTION WHEREAS,the Nowhere Corporation (hereinafter as CORPORATION)is the Native village corporation for the Village of Nowhere,having incorporated and organized in accordance with Section 8 of the Alaska Native Claims Settlement Act (hereinafter as ANCSA)and the laws of the State of Alaska;and WHEREAS,the City of Nowhere needs to secure an interest in land in order to meet site control requirements for a bulk fuel storage project;and WHEREAS,the Board has reviewed this proposed ground lease for the project area; WHEREAS,the Board believes the best interests of the CORPORATION would be served by issuing this lease;therefore IT IS NOW RESOLVED by the Board of Directors of the CORPORATION that it approves the attached lease,and that the President and CEO of the CORPORATION is hereby authorized and empowered to sign said lease on behalf of the CORPORATION. ADOPTED AND DATED this day of ,20__,at Alaska. ATTEST: by:by: its Secretary its: President and CEO CERTIFICATE The Undersigned,,Secretary of ,an Alaska Corporation,does hereby certify that at a meeting of the Board of Directors of said Corporation duly called and held on the day of ,20____at which a quorum was at all times present and voting,the foregoing resolution was duly adopted. Dated this__day of ,20___,at ,Alaska. (Corporation Seal) by: its Secretary APPENDIX A-1 City of Nowhere Site Control Documents SAMPLE BULK FUEL BUSINESS OPERATING PLAN CITY OF NOWHERE RESOLUTION WHEREAS,the City of Nowhere needs to secure an interest in land in order to meet site control requirements for a bulk fuel storage project;and WHEREAS,the City of Nowhere has reviewed this proposed lease which will serve as site control for this phase of the project;and WHEREAS,the City of Nowhere believes the best interests of the residents of Nowhere would be served by issuing this lease;therefore IT IS NOW RESOLVED by the City of Nowhere that it approves the attached lease,and that the is hereby authorized and empowered to sign said lease on behalf of the City of Nowhere. ADOPTED AND DATED this ____day of ,20__,at Alaska. The foregoing resolution was adopted at a duly convened meeting of on ,20 By: President Attest: Secretary -Treasurer APPENDIX A-2 City of Nowhere Site Control Documents Grant Agreement SAMPLE BULK FUEL BUSINESS OPERATING PLAN State of Alaska = Alaska Energy Authority =ENERGY AUTHORITY Sample Grant Agreement Grant Agreement Number Amount of Funds XXXXXXXXX $XXXXXXXXXXX Collocation Code(s)Encumbrance Number/AR Project Title Nowhere Bulk Fuel Upgrade Grantee Authority Contact Person Name Name City of Nowhere :Mark Schimscheimer Street/PO Box Title P.O.Box 1212 Project Manager City/State/Zip Street/PO Box Nowhere,Alaska 99999 813 W.Northern Lights Blvd Contact Person City/State/Zip John XXXXX,Mayor Anchorage,AK 99503 Phone Fax Phone Fax 907-999-9999 907-999-9998 907-269-4689 907-269-3044 AGREEMENT The Alaska Energy Authority (hereinafter 'Authority')and the City of Nowhere (hereinafter 'Grantee')agree as set forth herein. Section |.The Authority shall grant to the Grantee funds for the construction of the Project and performance of the Project work under the terms outlined in this agreement.The Authority shall grant funds to pay for expenses incurred by the Grantee that are authorized under this Agreement,in an amount not to exceed SXXXXXXXXX,UNless the grant amount is amended as provided herein. Section Il.The Grantee shall apply the grant funds to the construction of the Project and perform all of the work and other obligations required by this Agreement. Section Ill.Performance under this agreement begins upon signature by the Authority's Executive Director and shall be completed no later than December 31,2003. Section IV.The agreement consists of this page and the following: ATTACHMENTS APPENDICES Article A:Definitions Appendix 1:Notice of Project Completion Article B:Special Provisions Appendix 2:Funding Sources Article C:General Provisions Appendix 3:In-Kind Contributions AMENDMENTS:Any fully executed amendments to this Agreement Grantee Authority Signature Signature Printed Name and Title Printed Name and Title Jonn XXXXXX,Mayor Robert Poe,Jr.|Executive Director Date Date SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Upgrade Project Grant Agreement Number xxxxxxx Page 2 of 17 ARTICLE A.DEFINITIONS In this Grant Agreement: a)"Authority”means the Alaska Energy Authority,a public corporation of the State of Alaska.The Authority is herein charged with the role and responsibility as both the Grantor and as an agent of the Grantee. b)"Denali Commission”means the federal-state commission established under 42 USC 3121 and its successors or assigns. c)"Executive Director'means the Executive Director of the Authority or authorized designee. d)"Grantee”means the City of Nowhere. e)"Grantor”means the Alaska Energy Authority. f)"Project”means the Nowhere Bulk Fuel Upgrade Project. g)"Procurement Manager'means the employee of the Authority who determines disputes as provided in Article C.Section 3. h)"State”means the State of Alaska. i)"Project Manager”means the employee of the Authority in charge of the Project. j)"Design Documents”are the technical documents and drawings specifying how the Project is constructed. k)"Construction Manager”means the on-site supervisor of the Project as assigned by the Authority.The Construction Manager may or may not be an employee of the Authority. 1)"Substantial Completion”means the Project is ready for beneficial occupancy by the Participant(s).At the point of Substantial Completion,the work may not be complete and the Grant may not be closed. m)"Project Completion”means the Project is complete,the work is complete, and all Project costs have been billed and paid as determined by the Authority. n)"Grants Manager”means the employee of the Authority in charge of managing the Grant. SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Upgrade Project Grant Agreement Number xxxxx Page 3 of 17 ARTICLE B.SPECIAL PROVISIONS Subject to appropriation and availability of funds,the Authority agrees to grant to the Grantee the amounts stated herein,and the Grantee agrees to expend grant funds only for eligible costs to perform the Scope of Work stated herein. Section1.Description of Project and Scope of Work. This grant provides funding to be used for the design and construction of a new code compliant consolidated bulk fuel tank farm in Nowhere,Alaska,as described more fully in the Conceptual Design Report dated December 15,2001,the Business Operating Plan (draft)dated January 1,2001 which is attached hereto,and detailed design documents and specifications to be prepared by the Authority. Section 2.Project Funding Sources. This Grant is subject to appropriation and availability from the sources of funding listed in Appendix 2.The Authority may redesignate the sources and the amount of the total Grant funding shown in Appendix 2. If the Project costs exceed the Grant funds and if additional funds are available to perform the work described in this Agreement,the Authority may grant additional funds to the Grantee to perform this work by issuing and providing to the Grantee an amended Appendix 3 showing the amended grant amount.Grantee acknowledges that such a grant of additional funds will be pursuant to the terms and conditions of this Agreement, and acknowledges that by accepting the grant funds and the grant-funded Project work it is accepting them subject to the terms and conditions of this Agreement. Section 3.Grant Disbursements. a)The Authority will disburse grant funds as eligible costs are incurred. b)The Authority may engage an accounting firm (Trustee)to provide Project related services.If engaged,the Trustee may receive and disburse a portion of Grant funds to cover various project costs which may include payroll and related obligations, including taxes and workers compensation insurance,and other selected project costs as the Authority directs.If engaged,the Trustee may be used to prepare quarterly and annual payroll tax reports for the IRS and the State of Alaska, Department of Labor,as applicable,and W-2 Forms for the Project employees.If engaged,the Trustee will submit such reports and pertinent checks to the appropriate federal and state offices. SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fue!Upgrade Project Grant Agreement Number xxxxxxx Page 4 of 17 If the Authority retains the services of the Trustee,the Authority will be the liaison between the Grantee and the Trustee.The Authority will follow the procurement regulations specified by the funding sources. c)The Authority,as agent for the Grantee,will account for and disburse selected Grant funds for any Project costs not covered under (b)of this section in accordance with the funding sources referenced in Appendix 3.The Authority as agent for the Grantee will disperse Grant funds as required by the funding sources. d)Upon Project Completion: 1.any Grant funds not expended under this agreement and any interest accruing on the grant funds belong to the Authority and shall be returned to the Authority; 2.the Authority may apply to other projects any other grant monies authorized for the Project but not expended or obligated under this agreement. Section 4.Eligible Costs Under This Grant. a)The Authority,as Grantor,shall have sole discretion to determine which projectcostsareeligibletobepaidforfromGrantmoniesunderthisagreement.No workshallbeperformedorinitiatedwithoutthepriorapprovalfromtheAuthority.UponapprovalbytheAuthority,the following necessary reasonable,actual expensesassociatedwiththedesignandconstructionoftheProjectareeligibleforpaymentorreimbursementfromgrantfunds: 1.Payroll Costs.Payroll costs are comprised of wages paid to GranteepersonnelfortimeworkeddirectlyontheProject,plus payroll taxes andinsurance,as well as vacation,holiday,sick leave and retirement benefits,if any. 2.Direct Non-Salary Costs.These costs must be directly attributable to theProjectandshallincludethefollowing: i.The costs associated with consultants,inspectors,surveyors,contractors,subcontractors,and other services required to design and construct the Project. ii.The cost of materials,supplies and freight purchased by,or on behalf of,the Grantee and used in the construction of the Project. iii.The Grantee's costs of reproducing plans,specifications,maps,reports,and other documents. iv.The cost of long distance communication and other utilities needed for construction. v.Purchase or rental of small equipment or tools needed in the construction of the Project.. SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Upgrade Project Grant Agreement Number xxxxxxx Page 5 of 17 b) vi.Insurance covering the Grantee and the Authority. 3.The Authority may pay for costs not specifically listed in this section from Grantmonies,if in the determination of the Authority the costs are necessary. Costs not in listed in subsection a)of this section or not deemed eligible by the Authority under a),3)of this section are not eligible to be paid for from moneygrantedunderthisagreement. Section 5.Authority as Grantee's Agent. a) b) The Authority will serve as the Grantee's agent for the design and construction management of the Project,including,but not limited to,where applicable,issuing Invitations to Bid and selecting contractors.The Authority will be responsible for all matters related to the Project design and construction,including,but not limited to: approval of plans and specifications;choices of scheduling,manpower,and methods;procedures for administering the Project;procurement of materials; insurance during construction;disposition of surplus equipment;payment of all Project billings;complying with all federal reporting requirements (except as provided in Article C section 12 or elsewhere herein);performance of final project inspection;and issuance of a Notice of Project Completion.Permitting and other items specified herein are the responsibility of the Grantee.The Construction Manager,who serves as an on-site representative of the Authority,has the right to hire and fire,and establish wage rates and work hours of Project employees. The Authority shall not be responsible for environmental investigation or remediation of the existing bulk fuel facilities or properties,or for any other environmental matters.In addition,the Authority will not be responsible for the removal and decommission of any existing facilities. If the funding sources for the Project include Indian Community Development Block Grant monies or Community Development Block Grant monies granted to the Grantee,the Authority may enter into a Grant Management Agreement with the Grantee in relation to some or all of those monies.If such agreement is entered into, the Authority may have additional duties as the agent of the Grantee as outlined in those Agreements which will be attached as an appendix hereto. Section 6.Grantee's Responsibilities a)Prior to the start of construction,the Grantee will agree to a Bulk Fuel Farm Business Operating Plan,in a form and with terms approved by the Denali Commission.The Business Operating Plan will identify the major cost components necessary for the operations,maintenance,and long term sustainability of the Project and will include a business plan for funding those costs.If required by the Denali Commission,the Grantee also will enter into a Secondary Operator SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Upgrade Project Grant Agreement Number xxxxxxx Page 6 of 17 b) d) f) Agreement with the Denali Commission,which incorporates by reference Grantee's responsibilities contained in the Business Operating Plan.If required by the Denali Commission or the Authority,the Grantee also will enter into a Bulk Fuel Tank Farm Operations and Maintenance Agreement with the other Project Participants,and lease agreement(s)for the premises on which the project is located,in a form and with terms approved by the Denali Commission or the Authority. The Grantee is responsible for securing the real property interests necessary for the construction and operation of the Project,through ownership,leasehold,easement, or otherwise as addressed in the Business Operating Plan.The Grantee also is responsible for obtaining the required permits and approvals.These permits may include,but are not limited to,Corps of Engineers'Wetlands Permit,State Fire Marshal approval,rights-of-way for the pipelines,and site control,including any necessary Coastal Zone Management coordination through the Division of Governmental Coordination (DGC).The Authority will assist the Grantee in obtaining these permits and approvals. 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 the community The Grantee will provide,as an in-kind contribution,local equipment (excluding operator,fuel and maintenance)and tools as available to support the Project,and the contribution specified in Appendix 3.The Grantee will not be paid for its contributions of the use of equipment,tools,supplies,materials,or its contributions of services except as agreed to in writing by the Authority.The Authority requires in- kind contributions to demonstrate that the grantee and the community are committed to and invested in the proposed project.The specific details of in-kind contributions from the grantee or the community will be laid out in the final grant agreement. Typical in-kind contributions include,but are not limited to:land for the tank farm, the use of heavy equipment as available,lodging,etc.The Authority encourages the grantee and the community to support this project with in-kind contributions to the greatest extent possible. The Grantee is responsible for obtaining training as outlined in the Business Operating Plan (see section 6a above). The Grantee is responsible for reviewing project documents and monitoring the Project work to the extent necessary for Grantee to determine that the work is proceeding satisfactorily and to undertake its responsibilities described in the Business Operating Plan.The Grantee will promptly raise with the Authority any concerns or issues it may have regarding the Project,and if those concerns or issues are not satisfactorily resolved will promptly give written notice with a detailed SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Upgrade Project Grant Agreement Number xxxxxxx Page 7 of 17 description of the concerns or issues to the Authority's contact designated in Article C,section 18. Section 7.Substantial Completion. Upon substantial completion of the Project,as defined herein,the Authority will issue a Certificate of Substantial Completion per Section V of the Business Operating Plan. When this Certificate is issued,the Primary Operator assumes all responsibility associated with operating and maintaining the Project.Failure by the Grantee to provide to the Authority a written description of remaining work within 15 days of delivery of the Certificate constitutes acceptance of the Certificate and the Project. Section 8.Project Completion Notice. The Grantee shall sign the Notice of Project Completion located at Appendix 1 within 15 days after it is delivered by the Authority.Upon receipt of the signed signature page, the Authority will close the Grant.The Grant will automatically be closed if the Grantee fails to return the Notice of Project Completion within 30 days after it is delivered by the Authority. Section 9.Grantee Responsibilities After Project Completion. a)The Grantee will not sell,transfer,encumber,or dispose of any of its interest in the facilities constructed with this grant funding during the economic life of the Project without prior written Authority approval. b)The Grantee agrees that upon completion of the Project it will be responsible for and will perform those activities and functions required of it in the Business Operating Plan,and,if applicable to this project,the Secondary Operator Agreement and the Operations and Maintenance Agreement.See Section B.6.a above.These responsibilities may not be altered or transferred without the prior written approval of the Denali Commission. SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Upgrade Project Grant Agreement Number xxxxxxx Page 8 of 17 ARTICLE C.GENERAL PROVISIONS Section 1.Inspection and Retention of Records. The Grantee shall allow the Authority or its designees to examine all Project related records at any reasonable time for the purpose of copying,audit or inspection.The Grantee shall ensure that the Authority,its contractors and consultants,and any Secondary Operators have reasonable access to Project facilities during construction of the Project,and reasonable access for performance analysis and testing over the life of Project facilities for no cost.The Grantee shall retain all Project related records for four years following the completion date of the Project or until final resolution of any audit, negotiation,claim or other action related to the Project which is started prior to the end of the four year period,whichever is later. Section 2.State and Authority held harmless. As a condition of this Grant,the Grantee agrees to defend,indemnify,and hold harmless the Authority and the State of Alaska,and their agents,servants,contractors, and employees,from and against any and all claims,demands,causes of action, actions,and liabilities arising out of,or in any way connected with this grant or the project for which the grant is made,howsoever caused,except to the extent that such claims,demands,causes of action,actions or liabilities are the proximate result of the sole negligence or willful misconduct of the Authority or the State of Alaska. Section 3.Disputes. a)The parties agree that any dispute arising out of this agreement which cannot be resolved by mutual agreement shall be addressed as set forth in this Section.It is further agreed and understood that compliance with this Section shall be a condition precedent to bringing or filing an action or court proceeding for determination of any dispute.The intent of the dispute process set forth in this Section is to facilitate the timely resolution of disputes arising from or out of this agreement. b)Disputes which cannot be resolved by agreement shall be decided by the Procurement Manager.The decision shall be in writing and be made not more than 60 days after receipt by the Procurement Manager of all appropriate information (as determined by the Procurement Manager)from the Grantee.Failure of the Grantee to furnish appropriate information (as determined by the Procurement Manager)to the Procurement Manager within 21 days of the receipt of the Procurement Manager's request constitutes a waiver of the Grantee's claim. c)The time for issuing the Procurement Manager's decision may be extended for good cause by the Executive Director.The Procurement Manager shall notify the Grantee in writing that the time for the issuance of a decision has been extended and of the date by which a decision shall be issued.The Procurement Manager shall furnish a SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Upgrade Project Grant Agreement Number xxxxxxx Page 9 of 17 d) f) g) h) j) k) copy of the decision to the Grantee by certified mail or other method that provides evidence of receipt.Pending a final decision,the Grantee shall proceed with diligent performance of the agreement in accordance with the Procurement Manager's decision notwithstanding any disagreement with that decision. The Procurement Manager's decision is final unless,within 30 days of receipt of the decision,the Grantee delivers a Notice of Appeal to the office of the Executive Director.The Grantee shall provide a copy of the appeal to the Procurement Manager. The appeal must contain a copy of the decision being appealed and identification of the factual or legal errors in the decision that form the basis for the appeal.General assertions that the Procurement Manager's decision is contrary to law or facts are not sufficient. Except as provided in subsection (g)of this section,a hearing on an appeal to the Executive Director shall be conducted according to the procedures set out in (h)of this article. Within 15 days after receipt of an appeal on a dispute,the Executive Director may adopt the decision of the Procurement Manager as the final decision without a hearing,if the Executive Director determines that there are no material issues of fact. The Executive Director may act as the hearing officer and upon hearing the evidence,render findings of fact and conclusions of law,or the Executive Director may appoint an impartial hearing officer to conduct the hearing. The hearing officer shall arrange for a prompt hearing and notify the parties in writing of the time and place.The hearing will be conducted in an informal manner and will be held in Anchorage,Alaska.Participants outside Anchorage may attend by phone.The hearing officer may conduct the hearing as set forth in AS 36.30.670(b), which is incorporated herein by reference. If the Executive Director is not acting as the hearing officer,the hearing officer shall recommend a decision to the Executive Director based on the evidence presented. The recommendation must include findings of fact and conclusions of law.The Executive Director may affirm,modify,or reject the hearing officer's recommendations in whole or in part,may remand the matter to the hearing officer with instructions,or take other appropriate action. The Executive Director's decision shall be sent within 20 days after the hearing to all parties by personal service or certified mail.The decision of the Executive Director is final and conclusive unless appealed to superior court,Third Judicial District at Anchorage within 30 days of receipt of the decision.The laws of the state of Alaska govern this agreement. SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Upgrade Project Grant Agreement Number xxxxxxx Page10of17 Section 4.Termination. a)The Grantee shall have no rights to compensation or damages for termination except as provided in this Section. b)In addition to all other rights available under law,the Authority may terminate this Agreement or stop work on the Project for the convenience of the Authority or for cause upon ten (10)days written notice. c)"Cause"for termination shall exist when the Grantee has failed to perform under this Agreement,has provided incorrect or misleading information or has failed to provide information which would have influenced the Authority's actions.In order for termination to be for cause,the Grantee's failure to perform or the Grantee's provision of incorrect,misleading,or omitted information must be material. 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 funds expended prior to the date of termination.If the Grantee has incurred costs under this agreement,the Grantee shall only be reimbursed by the Authority for eligible costs the Grantee incurred prior to the date of termination of the Agreement. However,prior to making any claim or demand for such reimbursement,the Grantee shall use its best effort to reduce the amount of such reimbursement through any means legally available to it.The Authority's reimbursement to the Grantee shall be limited to the encumbered,unexpended amount of funds available under this Agreement. Section 5.Sovereign Immunity. 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 Appendix. SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Upgrade Project Grant Agreement Number xxxxxxx Page 11 of 17 Section 6.Binding Effect. This Agreement and all of its terms,covenants,conditions and appendices represent the entire Agreement of the parties and shall extend to and be binding upon the respective heirs,executors,administrators,grantees,successors and assigns of the parties to this Agreement. Section 7.No Assignment or Delegation. Unless otherwise allowed by this Agreement or in writing by the Authority,any assignment by the Grantee of its interest in any part of this Agreement or any delegation of its duties under this Agreement without such approval shall be void. Section 8.Grantee Shall Not Act as an Agent of the Authority. The Grantee,its officers,agents,servants and employees shall act in an independent capacity and not as agents of the Authority in the performance of this Agreement. Section 9.Rights of Other Parties. The parties agree that no person is a third party beneficiary of this Agreement and this Agreement creates no third party rights.Specifically,any person who is not a party to this Agreement shall be precluded from bringing any action asserting the liability of a party or asserting any right against a party to this Agreement,through the terms of this Agreement.No person,other than a party to this Agreement,may bring any action based upon this Agreement for personal injuries,property damages,or otherwise. Section 10.Compliance with Applicable Law and Funding Source Requirements. The Grantee shall comply with all applicable local,state and federal statutes, regulations,ordinances and codes,whether or not specifically mentioned herein including,but not limited to:the Americans with Disabilities Act (ADA)of 1990;Equal Employment Opportunity Executive Orders;Copeland Anti-Kickback Act;Davis-Bacon Act;Contract Work Hours and Safety Standards Act;Clean Air and Clean Water Act; and 15 C.F.R.Part 24.The Grantee agrees to comply with all applicable grant terms and conditions imposed by the Denali Commission and any other funding sources. Section 11.Audit Requirements. The Grantee agrees that it will be bound by any audit requirements that may apply to this agreement including 2 AAC 45.010 commonly referred to as the "Single Audit Regulation”and any applicable federal audit requirements.The Grantee acknowledges that it is responsible for compliance with federal and state single audit requirements and all other applicable audit requirements,and agrees to obtain all required audits. SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Upgrade Project Grant Agreement Number xxxxxxx Page 12 of 17 Section 12.Severability. If any section,paragraph,clause or provision of this Agreement or any agreement referred to in this Agreement shall be finally adjudicated by a court of competent jurisdiction to be invalid or unenforceable,the remainder of this Agreement shall be unaffected by such adjudication and all the remaining provisions of this Agreement shall remain in full force and effect as if such section,paragraph,clause or provision or any part thereof so adjudicated to be invalid had not been included herein. Section 13.Declaration of Public Benefit. The parties acknowledge and agree that the Project shall be constructed,owned and operated for the benefit of the general public and will not deny any person use and/or benefit of Project facilities due to race,religion,color,sex,marital status,age or national origin. Section 14.Nonwaiver. The failure of either party at any time to enforce a provision of this Agreement shall in no way constitute a waiver of the provision,nor in any way affect the validity of this Agreement,or any part hereof,or the right of such party thereafter to enforce each and every provision hereof. Section 15.Amendment. This Agreement may only be modified or amended in writing,executed by the authorized representatives of the parties with the same formality as this Agreement was executed.For the purpose of any amendment,modification or change to the terms and conditions of this Agreement,the authorized representatives are the Executive Director of the Authority or designee,and the Mayor of the Grantee or written designee of record. Section 16.Integration. This instrument and all appendices,amendments,and attachments hereto embody the entire Agreement of the parties concerning the grant funds granted hereunder.There are no promises,terms,conditions,or obligations regarding said funds other than those contained in the documents described above;and such documents shall supersede all previous communications,representations or agreements,either oral or written, between the parties hereto. Section 17.Applicable Law. This Agreement is to be construed according to the laws of the State of Alaska.Any civil action arising from this Agreement shall be brought in the Superior Court for the Third Judicial District of the State of Alaska at Anchorage. SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Upgrade Project Grant Agreement Number xxxxxxx Page 13 of 17 Section 18.Notices. Any notice required of either party shall be in writing and,unless proof of receipt of such notice is expressly required by another term of this Agreement,shall be deemed served when deposited in the mail in a sealed envelope,with sufficient first class postage affixed,and addressed to the appropriate party.The notices shall be sent to each party's place of business,which in the case of the Authority shall be: Deputy Director,Rural Energy Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage,Alaska 99503 Phone 907-269-3000 Fax 907-269-3044 and in the case of the Grantee shall be: John XXXXXX,Mayor City of Nowhere P.O.Box 1212 Nowhere,Alaska 99999 Phone 907-999-9999 Fax 907-999-9998 SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Upgrade Project Grant Agreement Number xxxxxxx Page 14 of 17 Appendix 1 NOTICE OF PROJECT COMPLETION ALASKA ENERGY AUTHORITY Date: Project Name Nowhere Bulk Fuel Upgrade Project Contracting Party City of Nowhere Authority Contract No.XXXXXX Agreement Execution Date The ALASKA ENERGY AUTHORITY certifies and acknowledges that the Project referenced above has been completed,and that all tasks have been satisfactorily carried out in accordance with the terms and conditions of Agreement No.xxxxxxxx. Project Manager Date Alaska Energy Authority SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Upgrade Project Grant Agreement Number xxxxxxx Page15of17 The City of Nowhere certifies that the Project named above is complete in accordance with the terms and conditions of Authority Agreement No.xxxxxxx. The City of Nowhere acknowledges and certifies that all expenses incurred by the City under the Agreement have been paid in full.,The City further acknowledges that it can make no further claims for reimbursement. Authorized Signature (Title) (Name Printed)Date SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuel Upgrade Project Grant Agreement Number xxxxxxx Page 16 of 17 Appendix 2 FUNDING SOURCES AND TOTAL PROJECT BUDGET Denali Commission $x,XXX,XXX Community Code xxxxxxx Total AEA Grant $X,XXX,XXX ICDBG Grant $B XXX,XXXX XXXXXXXXXXXX Total Other Funding $_XXX,XXXX Project Budget $X,XXX,XXX SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE BULK FUEL BUSINESS OPERATING PLAN Nowhere Bulk Fuei Upgrade Project Grant Agreement Number xxxxxxx Page 17 of 17 Appendix 3 GRANTEE IN KIND CONTRIBUTIONS TO THE PROJECT The Grantee will provide,at no cost to the project the following: (To be inserted) SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE R&R FundAccount SAMPLE BULK FUEL BUSINESS OPERATING PLAN FIRST NATIONAL BANK ALASKA INVESTED ESCROW INSTRUCTIONS ,2002 Account No. 1.The parties to this agreement are the City of Nowhere ("Owner”),and First National Bank Alaska ("Invested Escrow Agent”).Owner hereby appoints First National Bank Alaska, acting through its Trust Department,as the Invested Escrow Agent for the investment and disbursement of the funds in accordance with this agreement.The First National Bank Alaska agrees to serve as Invested Escrow Agent,pursuant to the terms set forth in this agreement. 2.Monies deposited by the Owner with the Invested Escrow Agent shall be for the purpose of establishing an R&R Fund,which shall be used for replacement and repair of capital expenditure items with regard to the Owner's Bulk Fuel Tank Farm Project,which is partially or fully funded with monies from the Denali Commission.Eligible disbursements by the Invested Escrow Agent shall include the labor,transportation,equipment rental, professional services,materials,equipment and other costs for the renewal and replacement of assets essential to the on-going sustainability of the bulk fuel facility,including but not limited to: Access Roads Dispensers Fill Stations Tanks Liners Pumps Fencing Pad Valves | Pipelines Tanks Liners Piling Decks Manwalks Electrical Systems Headers Ground Maintenance Containment Systems 3.On or before ,20__,Owner shall deposit the sum of §$with the Invested Escrow Agent,and a like sum equal to 1/12 of the annual deposit required in the respective year,as set forth in the attached table entitled "40 Year Renewal and Replacement Cashflow”and any revisions thereof submitted to the Invested Escrow Agent.Said deposit City of Nowhere 1 Invested Escrow Agreement SAMPLE BULK FUEL BUSINESS OPERATING PLAN shall be made no later than the last day of each and every month thereafter until expiration of this Agreement,to be administered in accordance with the terms of this Agreement.If any deposit by Owner is more than 90 days past due,the Invested Escrow Agent shall notify the Owner and the Denali Commission,or its successor.The funds shall be deposited into an interest bearing account of the Invested Escrow Agent's Trust Department.All cash held by the Invested Escrow Agent,together will all interest accrued thereon,shall constitute a fund to be known as the Nowhere Bulk Fuel Facility R&R Invested Escrow.The fund is the property of the Owner until and unless disbursed in accordance with the term of this Agreement.The undisbursed amounts in the account may be returned to the Owner on ,20 unless this agreement is extended in writing. 4.Upon receipt of funds from the Owner,the Invested Escrow Agent agrees to invest the funds in short term U.S.Treasuries,U.S.Agencies or in shares of the Provident T-Fund,or such other U.S.Treasury based money market funds as the Invested Escrow Agent may in its discretion elect from time to time.The interest earned on the account shall accrue for the benefit of the Owner. 5.The Owner cannot terminate this Agreement without the written consent of the Denali Commission. 6.Upon written instruction from Owner,in the form of a Request for Disbursement,which is attached as Exhibit 'A',the Invested Escrow Agent shall disburse funds to the Owner. 7.Owner consents to Invested Escrow Agent giving access to the Denali Commission or its designated agent(s)copies of all books,records,disbursement requests and correspondence related to the funds held under this Agreement. 8.The Invested Escrow Agent will assess and charge the fund the fees and charges set forth in the fee schedule which is attached hereto. 9.All notices and other communication to be given pursuant to this Agreement shall be in writing and addressed as follows: Owner:Denali Commission: City of Nowhere Denali Commission P.O.Box 1212 510 L Street,Suite 410 Nowhere,AK 99999 Anchorage,Alaska 99501 9.The Invested Escrow Agent shall have no duties not expressly provided for herein,and will not incur liability if it substantially complies with the instructions contemplated herein,using reasonable care in executing transactions,and in safekeeping the funds. City of Nowhere 2 Invested Escrow Agreement SAMPLE BULK FUEL BUSINESS OPERATING PLAN First National Bank Alaska Trust Department By:Date Its: City of Nowhere Date By: Its: Taxpayer ID # Address:P.O.Box 1212 Nowhere,AK 99999 City of Nowhere Invested Escrow Agreement SAMPLE BULK FUEL BUSINESS OPERATING PLAN EXHIBIT A REQUEST FOR DISBURSEMENT The undersigned,Owner of the funds in Invested Escrow Account No. requests a disbursement from the account in the amount of $.The undersigned certifies that the funds will be used in accordance with Section 2 of the Invested Escrow Instructions dated ,20____,between the undersigned and First National Bank Alaska. Owner requests that the funds be disbursed in the following manner: Payee Address Amount Owner: Date: By: Its: City of Nowhere 4 Invested Escrow Agreement oAMFE xo DULA rucL bua NESs vrERAruvG PLAN APPENDIX B 40 YEAR RENEWAL AND REPLACEMENT CASHFLOW City Inflation Rate :J- Initial Cost per gallon ($/gallon):}:§ Reinvestment Rate :City 20 Year R&R:|$5 year step cost increase :| Escrow Fees:|20 Year Loan Proceeds:[:City _Initial Throughput (gallons):}-NASD 40 Year R&R:F'NASD Initial Throughput (gallons):Initial Cost per gallon (§/gallon): Loan Rate:40 Year Loan Proceeds:$3 NA __Initial Throughput (gallons):F 5 year step cost increase :| Loan Term:|NA Initial Cost per galion ($/gallon): 5 year step cost increase :['-! R &R Fund Balance Assumed Throughput (Gallons)Per Galion Payment of Annual Deposit _Interest End ofYeara; :Principal 1 Debt Service |_Renewals'|Eamings (Net Year City NASD NA City NASDBalanceCityNASDNAToulReceivedReplacements|"o¢Fees)Balance 1 $:$2,550 |$675 |$-{$3,225 $-|5s -|$3,225 85,000 15,000 :$0.030 |$0.045 |$2 $3,225 |$2,561 |$675 |$-{$3,236 $-|$O78 6,558 85,363 15,000 :$0.030 |$0.045 |$3 $6,558 |$2,572 |$675 |$-|$3,247 $-|$197 1$10,001 85,727 15,000 -$0.030 |$0.045 |$4 $10,001 |$2,583 |$675 |$-1$3,258 $-|$300 |$13,559 86,092 15,000 >$0.030 |$0.045 |$5 $13,559 |$2,594 |§$675 |$-|$3,269 $8,013 |$166 |$8,981 86,460 15,000 -$0.030 |$0.045 |$6 $8,981 |$5,210 |$1,125 |$-|$6,335 $-|$269 |$15,585 86,829 15,000 :$0.060 |$0.075 |$7 $15,585 |$5,232 |$1,125 |$-!$6,357 $-|$468 |$22,410 87,200 15,000 -$0.060 |$0.075 |$8 $22,410 |$5,254 |$1,125 |$-|$6,379 $-|§672|$29,461 87,573 15,000 :$0.060 |$0.075 |$9 $29,461 |$5,277 |$1,125 |$-|$%6,402 $-|$§884 1$36,747 87,947 15,000 :$0.060 |$0.075 |$10 5 36,747 |$5,299 |$1,125 |$-($6,424 $41,743 |$9518 1,524 88,323 15,000 :$0.060 |$0.075 |$11 $s 1,524 |$7,983 |$1,575 |$-'$§9,558 $-|$§1321$11,214 88,700 15,000 -$0.090 |$0.105 |$12 $11,214]$8,017 |$1,575 |$-1$9,592 $-1$336 |$21,142 89,080 15,000 :$0.090 |$0.105 |$13 $21,142 |$8,051 |$1,575 |$-1$9,626 $-|$6341$31,403 89,461 15,000 :$0.090 |$0.105 |$14 $31,403 |$8,086 |$1,575 |$-|$9,661 $-|$942 1$42,006 89,844 15,000 :$0.090 |$0.105 |$15 $s 42,006 |$8,121 |$1,575 |$-1$9,696 $9,300 |$981 1 $43,383 90,229 15,000 :$0.090 |$0.105 |$16 $43,383 |$10,874 |$2,025 |$-($12,899 $-|$1,302 |$57,584 90,615 15,000 :$0.120 |$0.135 |$17 $57,584 |$10,920 |$2,025 |$-|$12,945 $-|5 1,728 |$72,257 91,003 15,000 -$s 0.120 |$0.135 |$18 $72,257 |$10,967 |$2,025 |$-|$12,992 $-|$2,168 |$87,416 91,393 15,000 -$0.120 |$0.135 |$19 $87,416 |$11,014 |$2,025 |$-($13,039 $-|$2,623 |$103,078 91,785 15,000 :$0.120 |$0.135 |$20 $103,078 |§11,061 |$2,025 |$-|$13,086 |$65,198 $118,767 |$343 [$62,938 92,179 15,000 :§0.120 |$0.135 |$21 $62,938 |$13,886 |$2,475 |$-|$16,361 $8,650 |$-|$1,629 |$72,278 92,574 15,000 :$0.150 |$0.165 |$22 $72,278 |$13,946 |$2,475 |$-|$16,421 $8,650 |$-|$1,909 |$81,958 92,971 15,000 :$0.150 |$0.165 |$23 $81,958 |$14,006 |$2,475 |$-|$16,481 $8,650 |$-|s 2,002 |$91,792 93,370 15,000 -§0.150 |$0.165 |$24 $91,792 |$14,066 |$2,475 |$-|§16,541 §8,650 |$-|$2,269 $$101,951 93,771 15,000 :§0.1501 $0.165 |$25 $101,951 |$14,126 |$2,475 |$-($16,601 $8,650 |$10,793 |$2,241)$101,351 94,174 15,000 :$0.150}$0.165 |$26 $101,351 |§17,024 |$2,925 |$-|$19,949 $8,650 |$-|§2,518 |$115,168 94,578 15,000 :$0.180 |$0.195 |$27 $115,168]$17,097 |$2,925 |$-|§20,022 $8,650 |$-|$2,130 |$128,671 94,984 15,000 -$0.180 |§0.195 |$28 $128,671 |$17,171 |$2,925 |$-[$20,096 $8,650 |$-|$2,400}$142,518 95,393 15,000 :$0.180 |$0.195 |$29 $142,518]$17,244 |$2,925 |$-1$20,169 $8,650 |$-|$2,677 |$156,715 95,803 15,000 :$0.180 |$0.195 |$30 $156,715]§17,319 |$2,925 |§$-{$20,244 $8,650 |$56,222 |$1,837]$113,924 96,215 15,000 :$0.180 |$0.195 |$31 $113,924]§20,292 |$3,375 |$-1$23,667 $-|$2.2781 $139,870 96,629 15,000 :$0.210 |$0.225 |$32 $139,870 |$20,379 |$3,375 |$-1§23,754 $-|$2,797 |$166,421 97,044 15,000 -$0.210 |$0.225 |$33 $166,421]$20,467 |$3,375 |§$-|$23,842 $-1$3,328]$193,592 97,462 15,000 :$0.210 |$0.225 |$34 $193,592 |$20,555 |$3,375 |$-1$23,930 $-{§3,872 |$221,394 97,882 15,000 :$0.210 |$0.225 |$35 $221,394]$20,644 |$3,375 |$-|$24,019 $12,525 |$4,177 |$237,064 98,303 15,000 :$0.210 |$0.225 |$36 $237,064 |$23,694 |$3,825 |§-{$27,519 $-|$4741 |[$269,325 98,727 15,000 :$0.240 |$0.255 |$37 $269,325 |$23,797 |$3,825 |$-{$27,622 $-|$5,386 |$302,333 99,152 15,000 :$0.240 |$0.255 |$38 $302,333 |$23,899 |$3,825 |$-{$27,724 §-{§6,047 |$336,104 99,579 15,000 :$0.240 |$0.255 |$39 $336,104 |$24,002 |$3,825 |$-i$27,827 $-1$6,722 |$370,653 100,009 15,000 :$0.240 |$0.255 |$40 $370,653 |$24,106 |$3,825 1 $-{$27,931 |$407,557 $746,575 |$-|$59,565 100,440 15,000 -$0.240 |$0.255 |$ City of Nowhere Invested Escrow Agreement