Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Seldovia Bulk Fuel Facility June 27, 2006
Business Operating Plan of the Seldovia Bulk Fuel Facility JUNE 27,2006 Seldovia Fuel and Lube,Inc. P.O.Drawer C Seldovia,AK 99663 Phone:(907)234-7622 Fax:(907)234-7442 TABLE OF CONTENTS PAGE I.EXECUTIVE SUMMARY ......s.cccssssscsccccnscescnsnsscenscnccsesesenanccuccnsessccenscsscecceceseeccscusesescnccesessscnsescesonssascones 2 Document Interrelationships.......ccscssessesssesessesseessessesceesesseesssesessessscssnsseessssscsessansenseeeseessesanssseseesnssensanssesseesuesse 2 II.BACKGROUND ......cccsssseccnssssscccccesscvccceusssecovccssusescccsseccnuseescncasscecccaucessssuseseaccuccecssenscssceccsnecearsccccsseses 3 Selected Statistics -Seldovia....ccccsscscsscscssssssscssssssesssessssssssesseseessscsessssssscsccssaceecscsesesscsesssssvecsavsssecsseseessassceesscaseases 3 TIT.FACILITY UPGRADE .........ccccososseccscasssceccccssssceccncnsevecceucesssccscseececesscsesccucsescouecessescuccsencsenscacccccscesesscas 4 Bulk Fuel Storage Facility Description......scesssessssssesssssesseessessssssssssssssssssnsssesssssssescsseeseessssssesseaseeseesseassasersssssssns 4 Project Exclusions ......sssssscssssssssssseesssssesesssesssessessssssessesssesneesessessseesessecsssssessnsenesssssseascanacsneesessesssessessseesessassseanessneesseens 4 Facility Site Plan and Facility Tank Plan...ccscssssssssesessssssssssssasssssssssssseessssssssesseneensssssssessssssnssnerseassensesssenensnsens 5 Bulk Fuel Storage Facility Capactty....cssesscssesssessssessssssessessssnssssssssssseressessnssssesneeseesessnsssssssesseeaeesessseessceseesesassseesnss 7 TV.FACILITY PARTICIPANTS.......sccccscconsscesscsccvscsccnsssecesccccssccesscensesenessccnnnssssssscnscconesssuessccsseeneasscnacsonsess 8 Participant Contact .....sssssssssssssssssssesscsscsssssecssssssssasssessecsssssscsassssssesssseseassessssssesueeneeseesssssnesseeneeseesnensetssesseeseennenscaeesnes 8 Facility Component Ownership .....ssscssssssessssssesssssseessesssssssssssssecssceasesseessscssssesscsssssssescasscsscessecsucenecsscceneensecesesse 8 V.«--PRIMARY OPERATOR .....scecesssosesvensessncccevsssssanccesccenssonnecessessnsassscceeessssccacseesessocssscessesssoesseseeessssesseees 9 Turnover and Assumption of Responsibilities /Sustainability........ccsssscssssessseessssessssseesssneesssnsesssneesnsecssseeensseess 9 Staffing and Training.....csssssssssessssscsssessseesssecsssesssessasssssscsssccssessssesssucsssesssuessncessnsessneesaeesucersusecasessasesseressneesanessaness 9 Financial Responsibilities .......cssssessseessecssscsssecsssessseessnecssesssscsssessnecssneesssscsssecsusccesessneessneessnessasessuseesneessneecaressnssesans 10 Operations and Maintenance Guidelines.....ccssecssssesssessessssesseesnsecsneesssecsecsnnessuceccneeeneeesnsssnseccusenseesaneeesaseenetsans 10 Participants'Operation and Maintenance Responsibilities........ssecssesesseccssesssesseseesseeseseteeaeecneensenneesneeeanenneeses 11 Renewal and Replacement Guidelines «0...cessecssecssesssssssesseessecssecssecsnesssessscssneessesssessecsnecsessecssseesetanansneeaneeanennnesses 12 Audits and Reporting...ccccscssssssssssssessssessssssssecssscssseesssecsssscssecsanecsssecsnsesssscsaseessncessneesaressasecsnressaecsnsessaneensseqausaeanessnses 12 VI.SECONDARY OPERATOR .....cccssssssccssccecccesscecsccsccesonsssenseesscnsccasssescesssausesessosseaecsonscosscnssccasscsscnscccuscoues B VIT.INSURANCE ...........cccccssevcccsccoscnecesccsscnstceccescsceeseescesensenascnssestsscessesssessnecoscoososcessececessessneccontes 14 VIII.REGULATORY COMPLIANCE .......sccosccoscunsscssscosccccccssccsccusscnssonsconnecssccnsssnssessscessscscossccessansnsescnsseaesenacs 15 IX.FINANCIAL INFORMATION .......ccccsscsccsccsssesccccscceccnccsececcsccssceccecensnsssesssssnssessessessessessesseccessossessaccosooes 16 Key Financial Assumptions «......ccsssscssecssssssssesssssesseessneesasessneesanecsnrsssusceaneecueennencaeesacecanecsisessesesaumassisssuessanessnensaaes 16 Key Operating Assumptions .....sssssssssscssssssessesssnesssnsccesneesentecsnseessnsersuscessnecenanecssnesssurersanseecsaresssnsosssssonsansessansensey 16 Bulk Fuel Facility Funding ...cccccsssscsesssssssessssessssessssecssecsssssssecssseessnsesseesneessarecsuscconeennnsesnsecaasecsuscenssenaecsaeeanesasvess 17 Subsequent Operating Year Revisions .....ssssessssssssssecessssescsntercneersneeceneeecnneessnneesanneesseessnnetersneesssanessnssensaaeensnseneey 17 TABLES Table A:Summary of Facility Expenses to Participants ......ccssecsecsssscnsessesseeeseecneesnsenatennereatecnessnseasessseceanersnesans 18 Table B:Participant ANOcation ....cssscssssssssecsssecsseesseecsessnsecstessnessnsssueccneccnrersnsecseseauessessstessaesssessanecsasessnesssneens 19 Table C:Annual O&M Schedule viccccccccssssccsssessssssssscccssescsscsesscssesssesessesesecsesssseseeuseseeseersnaesanecensseeeressessusessauans 20 Table D:40 Year O&M Cash flow..eccccsssssssscsesssssssssssssssssssscenenensesessseseseseeenenessessacedeseasassananeseescessseasseeversceasssaseas 21 Table E:40 Year R&R Schedule nici ccccccccccscssscescssecsscssssssesscsescsenecsesssseecaeesaseneraceeeeanensenseesaacaaceesvensnessesenaneanes 22 Table F:40 Year R&cR Cashflow wccccccccssssssssssssscsscsscssessssesssssessssseecesceseeseraceneenenseeesssesceseeaceaeesseessessnssnessesssessenearer 23 Table G:Loan Schedule ..cccccssssssscscssscsssscsssssssssscsssssescscsssesscassnsssssscessesesenssesseseeeeceseeneceescacecsenasssaeseadessneasarsesesesseees 25 APPENDIX A:PRIMARY OPERATOR STATEMENT OF QUALIFICATION APPENDIX B:O&M AND R&R Cost ESTIMATE ADDITIONAL RELATED AND ATTACHED DOCUMENTS =-----=-SEE BACK 1.SECONDARY OPERATOR AGREEMENT COVER FOR 2.BULK FUEL STORAGE AND DISTRIBUTION FACILITY LEASE AGREEMENT CD VERSION 3.GROUND LEASE AGREEMENT 4.GRANT AGREEMENT OF THIS PLAN. 5.R&R FUND ACCOUNT --SAMPLE DOCUMENTS Seldovia Fuel and Lube,Inc. Bulk Fuel Facility Business Operating Plan Page 1 of 26 I.EXECUTIVE SUMMARY This Business Operating Plan (the "Plan”)provides a guideline for the City of Seldovia (the "City”) and the Seldovia Fuel and Lube,Inc.(the "SF&L”)maintenance,operation and sustainability of a new Bulk Fuel Storage Facility (the "Facility”).The City will own the Facility and lease the Facility to the SF&L. As lessee,the SF&L will be responsible to maintain,operate and sustain the Facility.Therefore,a critical concern for the SF&L is the ongoing sustainability of the newly installed Facility.This Plan has been developed to assist the SF&L with that effort:it estimates operation and maintenance needs and costs,estimates renewal and replacement needs and costs,and a per gallon surcharge for fuel. The Bulk Fuel Upgrade Project will construct a new Bulk Fuel Storage Facility in Seldovia that will replace all of the existing storage facilities of the SF&L.The SF&L will utilize its leased facility assets to directly retail fuel. The Facility will be turned over to the City,and its lessee,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 SF&L will become the Primary Operator and will assume responsibility for the use,day-to-day operations,and long-term maintenance of all Facility components,except those noted elsewhere in the Plan.When the project has been completed (the Facility is complete,crews have demobilized,invoices have been paid and there are no outstanding issues),the AEA will issue through its Grants Manager a Certificate of Project Completion.This Certificate is included in the Grant Agreement;see Additional Related and Attached Documents. This Plan focuses on wholesale operations only.Additional costs that will be borne by the end-user include fuel costs and other retail operation and maintenance costs (defined later in this Plan). These additional costs are not part of this Plan.See Tabke_A:Summary of Facility Expenses to Participants for the estimated per gallon fuel surcharge. Document Interrelationships Attached to this Plan are: e Secondary Operator Agreement e Bulk Fuel Storage and Distribution Facility Lease Agreements Ground Lease Agreement Grant Agreement R&R Fund Account -Sample Documents The Secondary Operator Agreement references the Plan and includes language requiring the Plan be followed.The Plan takes effect after this agreement is executed.Acceptance of the Plan by execution of this agreement is pre-requisite to funding from the Denali Commission (the "Commission”),which will be provided through a separate Grant Agreement (See Attachments). Seldovia Fuel and Lube,Inc. Bulk Fuel Facility Business Operating Plan Page 2 of 26 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 Seldovia Bulk Fuel Facility,which is to be partially funded by the Commission. Seldovia is located on the Kenai Peninsula across from Homer on the south shore of Kachemak Bay,a 15 minute flight.The name Seldovia is derived from "Seldevoy”,a Russian word meaning "herring bay”.Between 1869 and 1882 a trading post was located in Seldovia,which is one of the oldest settlements in the Cook Inlet region.A post office was established in 1898.The village developed around commercial fishing and fish processing and the City of Seldovia was incorporated in 1945. Over the years,the processing of crab,salmon and cod have been important to the economy of Seldovia,although the local crab population has decreased significantly over the past several decades.Today,commercial fishing and subsistence activities continue to be an integral part of the local culture and economy.In 2004,the population of Seldovia was estimated to be 265 residents. Seldovia Fuel and Lube,Inc.provides the community of Seldovia with retail fuel sales (diesel, gasoline and propane)and hardware merchandise. Selected demographic and historical data for the community is provided below: Selected Statistics -Seldovia Population 2000 286 1990 316 1980 479 1970 437 1960 460 1950 437 Housing (2000 Data) Occupied Housing 232 Vacant Housing Due to Seasonal Use 81 Other Vacant Housing 17 Economic Data (2000 Data) Unemployment Rate 10.4% Median Household Income $45,313 Seldovia Fuel and Lube,Inc. Bulk Fuel Facility Business Operating Plan Page 3 of 26 III.FACILITY UPGRADE The Bulk Fuel Upgrade (BFU)Project will construct a new Bulk Fuel Storage Facility in Seldovia that will replace all of the existing storage facilities of the SF&L (the "Participant”).The City will own the Facility and lease the Facility to the SF&L. Bulk Fuel Storage Facility Description The AEA contracted with LCMF,LLC,to develop a conceptual design for the Seldovia Bulk Fuel Facility,which was submitted to AEA in May 2005.The purpose of the conceptual design is to provide a concept design and construction cost estimate for consolidation and upgrade of the SF&L's bulk fuel storage,which are referenced in this Plan.This Plan is based upon the information contained in the conceptual design. The new Facility will be located at the site of the existing SF&L bulk fuel facility.The proposed BFU project will construct a storage facility with seven storage tanks and two dispenser tanks;one storage tank for gasoline and one dual storage tank for diesel #1 and diesel #2. Project Exclusions The BFU project does not include the following: e Decommissioning of existing tanks or environmental cleanup e Retail business:including licenses,revenue,prices,taxes,profits,or contributions to the wholesale fuel storage program The AEA and the Commission will not provide any guarantees,wartantees or ongoing support, other than that which is defined in the Plan.However,manufacturer warranties will be transferred at the time of project turnover (defined in Section V.Primary Operator). See the following diagrams for the details of the Facility: Seldovia Fuel and Lube,Inc. Bulk Fuel Facility Business Operating Plan Page 4 of 26 97JO adeq urg Suneiadg¢ ssoursng Amory pnyyg"DUT'aqn'Tpur jan, vAOpyas yuerty'VlA0THSetaWAS _merghedPow H Te aToe _ riFL:"aALNOHLYY ACHING VAGYT¥ tix pera0 ililiiLA iEBBUHEies a?FP mid a ©PRES oR eS Fo Po ¥YOUT PLAN ted L eee on 7 ey eeeree OF oe urang AIOV,y 972Jo9aBeq urg Sunesedy ssautsng Aor, fang yNg'QU'aqn'ypur jan, emAopyas vusviy'viAQdTISeTeeet f aavaodn Tans xine batCo||-_sfgel!.6 ALINOHLNY ADYZN3 VASVIV yooNayEa tHEHej i-* >:: ic ''No: \ \ , \. nt \. . a \ : \ ' i - \ iae|heuiBs: : i . i op Bs ' uF : aky | aiH vf .AA f oe : aeooee=™\<ad=Ww-na=«< : uu ; . ¥ Ta eS tee a pe wt imu oo - an ; =] vn ie Saw -Dey . ox : yf 5 - - ad eeBD url yuey, Ayo Bulk Fuel Storage Facility Capacity The following table provides a summary of the tankage,by type of fuel (obtained from the Facility designs),which will be included in the Facility upgrade: Facility Components &Capacities Gallons Primary Storage/Dispensing |Number Per Total Gallons Total Tank Gallons PerTank Gallons(Gross)(Gross)(Net)(Net) SF&L Diesel #2 Primary Storage 3 49,500)148,500 44,550 133,650 Dispensing +2/3"4,000 4,000 3,600 3,600 Subtotal Diesel 3 &2/3"152,500 137,250 Diesel #1 Primary Storage 2 49,500 99,000 44,550 89,100 Dispensing +1/3:2,000 2,000 1,800 1,800 Subtotal Diesel 2«1/3"101,000 90,900 Gasoline Primary Storage 2 49,500 99,000 44,550 89,100 Dispensing 1 6,000 6,000 5,400 5,400 Subtotal Gasoline 3 105,000 94,500 Total Primary 9 358,500 322,650 Storage /Dispensing Pipeline Components Number Marine Header 1 Motor Vehicle Dispensing 3 Marine Dispensing Stations 2 Transfer Fill Pipelines 3 Truck Loading Area 1 +Dual Product Dispensing Tank -2/3 Diesel and 1/3 Gasoline The Facility's storage capacity is based on its present usage and assumes two or three fuel deliveries per year.If annual fuel requirements increase in the future -additional fuel deliveries can be made. Seldovia Bay is an ice free port and capable of receiving barges 365 days per year.Deliveries are testricted during winter months,for a 2 to 3 month period,due to ice in the Anchorage and the Nikiski ports,where fuel is loaded onto barges for delivery to Seldovia.Winter months are slow months for the SF&I,and,therefore,the proposed tank capacities are not a limiting factor during the winter months. Seldovia Fuel and Lube,Inc. Bulk Fuel Facility Business Operating Plan Page 7 of 26 IV.FACILITY PARTICIPANTS The Facility participants are: Grantee/Owner:City of Seldovia Primary Contact Name:Dick Wylaad,Mayor Phone:(907)234-7643 Fax:(907)234-7430 Address:City of Seldovia P.O.Drawer B,Seldovia,AK 99663 Usage:The City will lease the Facility to the SF&L. Lessee/Primary Operator:Seldovia Fuel and Lube,Inc. Primary Contact Name:Dan Blodgett,President Phone:(907)234-7622 Fax:(907)234-7442 Address:Seldovia Fuel and Lube,Inc. P.O.Drawer C,Seldovia,AK 99663 Usage:The SF&L will utilize the Facility assets to retail fuel. Facility Component Ownership The City owns 100%of the Facility and will lease the Facility to the SF&L.The SF&L owns the property upon which the majority of the Facility will located and will lease the property to the City. The SF&L is responsible for the Operation and Maintenance ("O&M”)and Renewal and Replacement ("R&R”)of the Facility and all associated costs. The Seldovia BFU facility is organized as follows: 1.Facility:The proposed fuel storage facilities will be owned by the City of Seldovia and leased to the Seldovia Fuel and Lube,Inc. 2.Land:The proposed bulk storage tanks and truck loading rack will be located on land owned by the Seldovia Fuel and Lube,Inc.,and will be leased to the City of Seldovia. 3.Pipeline Easements/Right of Ways:Pipelines will be located in existing utility easements and cross the right of way for Main Street. 4.Primary Operator:The Seldovia Fuel and Lube,Inc.will be the Primary Operator (PO). The Denali Commission will select a Secondary Operator if the PO does not perform according to this Plan.The PO will take care of the O&M (annual operations and maintenance,training,testing,etc.)and R&R of common facilities. Seldovia Fuel and Lube,Inc. Bulk Fuel Facility Business Operating Plan Page 8 of 26 V.PRIMARY OPERATOR The Primary Operator for the Seldovia Bulk Fuel Storage Facility is the Seldovia Fuel and Lube,Inc. A detailed statement of qualification for the Primary Operator is included as AppendixA:Primary Operator Statement ofQualification. Turnover and Assumption of Responsibilities /Sustainability The Facility will be turned over to the City,and its lessee,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 1s ready for Beneficial Occupancy.Upon receipt of this Certificate,the SF&L 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's manager and bookkeeper will participate in business plan training conducted by the Alaska Energy Authority.Additionally,the Primary Operator will utilize training Seldovia Fuel and Lube,Inc. Bulk Fuel Facility Business Operating Plan Page 9 of 26 programs offered by AEA,the Alaska Vocational Technical Center (AVTEC)in Seward,the Commission and other training programs. 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 Tabke C: Annual OM Schedule and a narrative detail is provided in Section LX:Financial Information to address estimates and assumptions. R&R costs are those expenses defined as items costing greater than $5,000 and/or that are not replaced on an annual basis.Tab E:40 Year RC*R Schedule details the anticipated items,the frequency of their replacement and their present day value. The Primary Operator will maintain separate O&M and R&R accounts and will maintain a sufficient account balance to meet the O&M and R&R financial goals in this Plan.The O&M account may be an active non-interest bearing account,while the R&R account must be an interest-bearing,managed savings account,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.Withdrawals from the R&R account of $5,000 and under will require two SF&L signatories and a City Manager signature;while withdrawals from the R&R account over $5,000 will require two SF&L signatories and a city resolution.See Appendix.A:Primary Operator Statement ofQualification for an overview of the Primary Operator's fiscal controls and accounting procedures. At least once a year,no later than November 30,the Primary Operator will develop a budget for the upcoming calendar year,January 1 through December 31,for both O&M and R&R. Operations and Maintenance Guidelines The Primary Operator will establish an active non interest-bearing account for the Facility O&M so that the O&M schedule can be completed and the Facility operations can be sustained into the future.Section LX:Financial Information provides Table C:Annual OC*M Schedule as a guide to plan for annual maintenance activities and Table D:40 Year O¢ M Cashjlow as a guide to estimated yearly O&M required contributions.These costs are based upon the O&M cost estimate provided by CRW Engineering Group,LLC,see Appendix B:O&M and R&R Cost Estimate. Seldovia Fuel and Lube,Inc. Bulk Fuel Facility Business Operating Plan Page 10 of 26 Participants'Operation and Maintenance Responsibilities Operational Responsibilities Activity Cost Responsibility Pipelines Fill Pipelines Marine Header -Tank Farm X SF&L Marine Header -Marine Dispenser x SF&L Tank Farm -Dispensing Tanks x SF&L Tank Interconnections X SF&L Tanks /Foundations Primary Tanks X SF&L Dispensing Tanks X SF&L Support Dispensing Area xX SF&L Fence x SF&L Footprint x SF&L Electricity Lights x SF&L Distribution Pumps x SF&L Seldovia Fuel and Lube,Inc. Bulk Fuel Facility Business Operating Plan Page 11 of 26 Renewal and Replacement Guidelines The Primary Operator will establish an interest bearing escrow managed renewal and replacement account acceptable to the Denali Commission,which will ensure capitalization of an amount sufficient to maintain the R&R Schedule (see attached R¢*R Fund Account-Sample Documents for "How to Establish a R¢*R Account').It is assumed that the R&R activities for Year 20 will be funded 40%from the R&R account and 60%from debt financing,at 5.5%over 10 years.Section LX: Financial Information provides Table E:40 Year R¢*R Schedule as a guide to plan for annual R&R activities,Table F:40 Year R&7R Cashflow as a guide to estimated yearly R&R required contributions, and Table G:Loan Schedule as a guide to Year 20 R&R loan assumptions and payment schedule. These costs are based upon the R&R cost estimate provided by CRW Engineering Group,LLC,see Appendix B:O@7M and R&R Cost Estimate. The Primary Operator will periodically remit R&R funds to the administrator of its R&R escrow account according to guidelines to be established by the Denali Commission.Management and other fees charged by the escrow fund administrator will be automatically deducted from the Primary Operator's R&R escrow account,according to an Escrow Agreement or other similar document. The Primary Operator will use the estimates in this Plan for year one contributions,and in subsequent years will recalculate contributions based upon assets to be maintained as actually built and based upon the Subsequent Operating Year Revisions procedures discussed below.The Primary Operator will provide a description of its recalculated contributions to the Facility Owner. 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 Seldovia unless the Primary Operator requests an on-site audit.The Primary Operator will provide an annual report of operations to the Commission,and to the Facility Owner,that includes a summary description of O&M and R&R projections,annual O&M and R&R budgets and expenditures,a projection of future O&M and R&R cash flows,and any other information appropriate to the Facility.The Commission will review the reports and the annual financial reconciliatory audits of Facility operations and will actively monitor the Primary Operator's ability to operate consistent with guidelines outlined in this Plan.The Commission has reserved the right to visit the site and to access all books and records related to the Facility at any time upon written request. Seldovia Fuel and Lube,Inc. Bulk Fuel Facility Business Operating Plan Page 12 of 26 VI.SECONDARY OPERATOR The Secondary Operator for the Seldovia Bulk Fuel Facility project will be determined in the future by the Denali Commission,if the need arises.See the attached Secondary Operator Agreement for details. Seldovia Fuel and Lube,Inc. Bulk Fuel Facility Business Operating Plan Page 13 of 26 'wyVII.INSURANCE The Primary Operator is required to be insured for General Liability Insurance,which is estimated to be $5,000 per year,based upon a prorate share of the operator's current rates.The Primary Operator will include the cost of General Liability Insurance in the annual O&M costs. Seldovia Fuel and Lube,Inc. Bulk Fuel Facility Business Operating Plan Page 14 of 26 VIII.REGULATORY COMPLIANCE The Primary Operator 1s 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 procedutes 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 patticipate 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. Seldovia Fuel and Lube,Inc. Bulk Fuel Facility Business Operating Plan Page 15 of 26 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%. Insurance is estimated to be $5,000 in year one with subsequent years inflated at 1.5%. Year 20 R&R activities will be funded 40%from the Primary Operator's R&R account and 60%from debt financing,at 5.5%over 10 years. R&R funds may be deposited into an interest-bearing invested escrow account.Fees are assumed to be 1%,beginning when the account balance is estimated to reach $100,000. Detailed assumptions regarding labor rates,required labor hours,and other operating costs are provided in the tables that follow. Existing debt,or other obligations,of the bulk fuel Facility are not included in this Plan. Key Operating Assumptions Throughput -The annual estimated gallons of fuel that will flow through the Facility. Initial annual throughput estimates of SF&L usage:422,943 gallons of diesel and 132,643 gallons of gasoline. Throughput is estimated to grow annually at a rate of 2.5 percent. Retail operations,or its profits,are not included in the Plan. Seldovia Fuel and Lube,Inc. Bulk Fuel Facility Business Operating Plan Page 16 of 26 Bulk Fuel Facility Funding This Plan is not a commitment to provide project funding;however,it is anticipated that project funding will be provided by the State of Alaska and the Denali Commission. Subsequent Operating Year Revisions Starting with the second year,as operating experience specific to this Facility is obtained;the projections and assumptions upon which the Plan is based will be reviewed and modified.The following guidelines are for use in subsequent operating years in updating and modifying plan projections and assumptions: Step 1:Review previous years'O&M and R&R costs and compate to current projections Step 2:Adjust O&M and R&R projections and assumptions based upon actual experience Step 3:Recalculate SF&L per gallon O&M costs based upon updated throughput estimates Step 4:Recalculate SF&L per gallon R&R costs based upon updated throughput estimates Step 5:Recalculate total SF&L per gallon fuel costs Seldovia Fuel and Lube,Inc. Bulk Fuel Facility Business Operating Plan Page 17 of 26 TABLE A Summaty of Facility Expenses to Participants Seldovia Fuel &Lube Inc.NA NA ¥ O&M R&R Total O&M R&R Total O&M R&R 'Total ear 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 |$_18,496|$0.0331$14,445 |$0.026 |$32,941|$0.059]|$-{8 -|$-|$%-_|$-|$-$-|$-1$-|$-]s -[s -2 [$18,774/$0.033)§15,028[$ 0.026[$33,802|$0.059]|$-|§-|$-18 -I$-1$-$-1$-{$"Ts me:"ls.-3 [319,055/$0.033 $15,635|$0.027]$34,690]$0.0591 |$-[$-|$-[8 -|$-_-[$-$-[$-1$-/$-{s-|$4 [$19341|/§0032]$16,267|$0.027]$35,607|$0.060;]7$-[$-_|$-13 -|$-|$:$-|$-|$_-/8 -|$ts; 5 }$_19,6311 $0.032]$__16,923 |$0.028 |$36,554|$0.060]|$a -$-|$ __-|$-|$-1$-|$-6 |$19926/$ 0.032|$17,607/$0.028]$37,532]$0.060]|$-|$-|$-[$-{$-|$:$-/$-|$-|$-{$-{3-7 |$20224[/$0.031]$18317)$ 0.028|$38,542|$0.060]|$-|8 -_|$-_|38 -_|$-|$-$-|$-[$__-|-1$-|3$- 8 |$_20528[$0.031]$19,057/$0.029]$_39,585|$ooco]|$ -[S$-|$-[8 _|s_-|s 8 -|$_|8 -|seI 8 -[s9|$20836)$ 0031|$19,826]$0.029]$40,002/$0.060]|$-_|$-|$-{$8 -|$-[$-$-|$-|$-|$-|$_-|$-"40 |$21148[$0.030]$20627!$0030|$41,775/$0.060]|$-|$ -|$-_|$-_|$-1$:$-|$-|$-|$-|$-[$.-"nn |$21,465/$0.030]$21,460/$0.030]$42,9251 $0.060}|$-|$-[8 -|$-|$-1$-$-[$-|$-|8_-|[$-ls.12_|$21,787;$0.030[$22,326/$0.031/$44114|$0.061]|$-[$-|$-|$-_|$-1$-$-|$-|$-|$-|$-|$-13 [$22,114]§0.030[$§23,228)$0.0311 $45,3421$0.061]|$-/$-{$-|$-|$ -|$-$-|$-48 -|$-s-T§-|$14]$22,446)$0.029|[$24,165/$0.032]$46,611;$0.061/]$ -[S$-|$-[$-|$-{$-$-|$-|$-|$-|$_-|$-_15 |$ 22,783/$ 0.029|$25,141/$ 0.032|$47,924/$0.061]|$-[$s -[$-|8 -|$$$-|$-|$-1$-|$-|s_-16 |$23,124)$0.029]$26,156 |$0.033]$49,281/$0.061]|$-|$-|$-[s.-[sels :$-1$-1$"I$"Ils.-/$.-47|$ 23,471|$0.028]$27,212}$0.033 $50,683|$0.001]|$-[3 -|$-|$-|$-|$-$-|$-T$-[$_-1$Is"18|$ 23,823|$ 0.028|$28311[$0.033|$52134|/$0.062]|$-|$-|[$ -I[$-[3s -|$_-$-i$-|$-|8 -1$-[$__-19|$ 24,181[$ 0.028|$29,4541 §0.034]$53,6351$0.062]|§-|8 -|$-{[$ -_|§-|$:$-|$-|$-|$-|[s.-[s__-20 |$24,543/$0.028]$30,643/$0035|$55187]$0.062]|$-|8 -|$-Ils -[$s -|$-$-{$-|$-{$.-|$"13.21 |$24,912]$0.027]$__31,880/$0.035 $56,792)$o0o2]]$-|S=FS 8 $-[s_-js.els -[$-|$-|$-[$ 22 [$25,285/$0.027]$33,167|$ 0.036/$584531$0.003]|$-[$-|$-[$-_|$-|$-$-[$-|$-|$-I$Ts.-23|$25,665|$0.027]$34,507[$0.036|$60,171/$0.0031 |$-|$-|$-[$-_{$-|$:$s _-l$-|$-8 -|$-[$s-_24 [8 26049/$ 0.027[$_35,900]$0.037]$61,949$0.063}|§-_|$-_|$-_|$-|$_-|$-$-{¢ __-[$-|$is -|$-25|$26440];$0.0261 $37,349]$0.0371 $63,790]$0.063 ||$-_\$-_|$-|$-_1$-|$:$-|$-|$-1$_$-|$ - "26 |$26,837[$0.026|$38,857|$0.038]$65,694]$0064]|$TS BO dB $-[s-|$$-|$-27|$ 27,239/$0.0261 $40,426/$0.038|$67,666|$0.064]|$-|$-|$-|$_-|8 -$-[$ -1$ss -|-|$"lg.- 28 |$ 27,648($0.026]$42,058|$ 0.039|$69,706 $0.064]|$-[$-_|$-[8 -|$-1$-$-1$-|$-|$--{$-lg. "29 |$28,063|$0.025]$43,756|$0.039]$71,819]$0.065]/]$ -|$-|$-[§-|$-|$-$-|$-|$-|$-|3 "ls.30[8 28,484]$0.025[$45,523 $ o.040[$74007/$ o00s}/§ -[8 -fs -[s -[sds TS -|3 -|$-[$-|$-[$-"31[§28911/$0.025]$47,361]$0.0441 $76,272]$0.065 ||$-{$-|$-|$-|$-|$-$-[§-|$-[$-|$-1$ "32|$29,3451 $ 0.025|$49,273 |$0.041|$78,618|$0.066]|$-_|$-_|$-[$-{$-|$-$-|$-|$-|$-1$-|$ -33|$ 29,785[$0.024,$51,263/$ 0.042|$81,047|$0.066]|$-[8 -[8s -|$-|$-|$-$-|$-1$-|3 -|$-|$ "34|$ 30,231[$ 0.024|$53,3321 $0.042]§83,564;$0.067]|]$=-ss S$-I$-Ts -48 -|$-$-1$-1§-|$-[$"lg”35 _[$ 30,685/$0.024[$55,486 $0.043|$86,171|$o.0c7}|$-i$ -[S$-[$s -I$-|s_-ds -[$-|§-[s -{$-|s36|$ 34,145[$0.024]$57,726 $0.044]$88,871|$0.067]|$-|$-{$-{$-|$-|$-$-|$-|8 -|$-|$--I$-37 1§31,612|$ 0.023|$60,057($0.044/$91669/$ooo8/|$ -[$-1$-|$-$8 -|$-$-|$-|$-|$-1$-{$_38_|$_32,087]$0.023 $62,481]$0.045]$94,568]$0.068||§-_[$-_I$-|§-_|$-|$-$-|$-|$-|$-|$-|$-39|$32,568/$ 0.023|$65,004 $ 0.040|$97,572|$0.069]|$-|[$-18 -[8 -_|$-|$-$-|$-{$-|$-1$-lg40|$ 33,056[$0.023|$ 67,629|$0.046]$100,685/$0.0691]$-|$-|8 -|$-{$s -|$-|18 -|$$-|$-1$-{$- Seldovia Fuel and Lube Inc. Bulk Fuel Facility Business Operating Plan Page 18 of 26 TABLE B PARTICIPANT ALLOCATION SF&L NA NA Total Primary Capacity (Net)|_Gallons 322,650 0 o]|-«322,650Percentageof100.0%]|0.0%|(0.0%100% Initial Throughput "Gallons 555,586 0 0 555,586 Volumes Percentage =|--«i002=0%0.0%0.0%100% %Share of O&M and R&R on Common Assets 100.0%0.0%||0.0%100% (based upon Primary Capacity)- Seldovia Fuel and Lube Inc. Bulk Fuel Facility Business Operating Plan Page 19 of 26 TABLE C ANNUAL "0 and M"SCHEDULE Rate Per Fringe Total Hourly Position Hour Rate Cost Duties Operator 1 $18.46 30.00%$24.00_Maintenance Bookkeeper $18.46 30.00%$24.00 Invoicing,Fuel Quantity Tracking Facility Manager $23.08 30.00%$30.00 Manager,Denali Commission Reporting Annual O&M Costs: Labor Costs Participant Share Hours/Hourly Monthly Annual SF&L NA NA Labor:Month Cost Cost Costs Operating LaborOperator 10.0 $24.00]|$240.00 7 oS Subtotal Operating Labor 10.0 $240.00]|$2880]|$2,880 Administrative Labor Bookkeeper __80|{$2400)]$19198]Jo | Facility Manager 6.0 $30.00 $180.02 Subtotal Administrative Labor 140 |}=|{$37201]|$4,464)1$4,464 Materials:_ Materials &Equipment Rental_$500 $500° Other Costs:- Training (Lump Sum)$640 $640 Annual Inspection/Pressure 1Testing $1,812 $1,812 Annual Off-Site Audit-(Lump Sum)|[$1,200]|$1,200Power/Electricity $2,000]}$2,000 Insurance (Based upon AMLJIA coverage)$5,000 ||$5,000 Total Annual O&M Costs $18,496 $18,496 |$- Seldovia Fuel and Lube Inc. Bulk Fuel Facility Business Operating Plan Page 20 of 26 Inflation Rate ° TABLE D 40 YEAR "O and M"CASHFLOW Annual O&M Expense Assumed Throughput (Gallons)Per Gallon O&M Payment SF&IL Year SF&L NA NA Total NA NA SF&L NA NA Diesel Gasoline Total 1 $18,496 |§$-]$18,496]]422,943 |132,643|555,586 -$0.033 |§-Is - 2 I$18,774 |§$-|$18,774]|433,517 135,959 |__569,476 -$0.033 |$-_|$-_3 $19,055 |§$-|$19,055 444,354 |139,358 |583,713 -$0.033 |§-_[8 -4 |$s 0t9341[$.-|$19,341 455,463 |142,842 |598,305]-$0.032 |$-|$- 5 '$19,631 |§s -|$19,631|466,850 |146,413 |613,263 -$0.032 |§-18 : 6 $19,926]$$-|$19,926 478,521 150,073 628,595 --$0.0324 $-_|$- 7 '§20,224 |§$-|$20,224 490,484 |153,825 |644,309 :$"0.031 |§-_|$- 8 |$20,528 |$$-|$20,528 502,746 |157,671 |660,417 :§0.031 |$-_|$:9 |[s 20,836 |$_$-|$20,836]|515,315]161,613 |676,928 -$0.031 |§-|§ -10"|$21,148 |$$-]$21,148]|528,198]165,653|693,851 -§0.030|§-|$ - 11 $21,465 |$$-|$21,465 541,403 711,197 -§0030/3 - '|$- 12 I$21,787 |$$-|$21,787 554,938 [728,977 |-§0.030 |$-_{$-130 rs 22.114 $$-|$22,114 568,811 178,390 747,201;$0.030 |$-|$- 4 |8 22,446 |$$-|$22,446 583,032 |182,850 |765,881 -5 0.029 |§-|$- 15 $22,783 |§$-|$22,783}|597,607 |187,421 785,028 -__-148 0.029 |'§-{$= 16 $23,124 |$$-|$_23,124]|612,548]192,107 [804,654 -$0.029 |$-{8 : 7 {8 23,471 |$[$-|$23,4711]627,861]196,909 |824,771 :$0.028 |§-{8 - 18 48 23,823 |$$-|$23,8231 |643,558}201,832 |845,390 :$0.028 |$-{$- 19 $24,181 |$$-|$24,181 659,647 206,878 |866,525 -$ oo|$-|g -_20 $24,543 1 §[3 -|$24,543 676,138 |212,050 |888,188 -'3 0.028 |$-_|$- 21 $24,912 |$$-|$24,912 693,041 217,351 910,392 -$0.027 |$-I$- 22 +|$25,285 |$$-|$25,285 710,367 222,785 933,152 -$0.027 |$-I$- 23 «(I$25,665 |$$-|$25,665]|728,127 |228,354 |956,481 :$0.027 |§-48 : -24«(18 26,049]8 §_-|$26,049 746,330 234,063 980,393 -$0.027 |$-_|3 - 2 [8 26,440|$[s -|$26,440 764,988 |239,915]1,004,903]$0.026 |$-|$- 26 $26,837 |§$-|$26,837|784,113 |245,913 |1,030,025 :$0.026 |$-_13 - 27 $27,239 |$|$-|$ 27,239||803,715 252,061 |1,055,776 -$0.026 |$-1s - 28 $27,648 |$$-1$27,648 823,808 258,362 |1,082,170 -$0.026 |$-_|$7 29 $28,063 |$$-|$ 28,063||844,404|264,821 |1,109,225 -$0.025 |$-_|$-30 «|S 28,484 |$$-|$28,484]|805,514 |271,442|1,136,955 -$3 0.025 |§-|s : se 28,911 |$Es -|$28,911 887,152|278,228 |1,165,379 -$0.025 |$-_|$-32 $29,345 |$$-|$ 29,345||909,330 285,183 |1,194,514 -$0.025 |$-I$- 33.«|$29,785 |§$-|$29,785 932,064 |292,313 |1,224,377 -5 0.024 |§-_|$- 34 $30,231 |§$-|$ 30,231||955,365}299,621 |1,254,986 :$0.024 |§-48 - -35-«(8 30,685 [$$-|$30,685 ||979,249|307,111|1,286,361 -$0.024 |$-[s : 36 '$31,145 |$$-[$31,145]11,003,731 314,789 |__1,318,520 -ry 0.024 [$-I$: 37 $31,612 |§$-|$31,612 1,028,824 322,659 |1,351,483 -§0.023 |$-I$: 38 $32,087 |$$-|$32,087]|1,054,544 |330,725 |1,385,270 :$0.023 |$-_|$- 39 $32,568 |§$-|$32,568 1,080,908 |_338,993 |_1,419,901 -$0.023 |$-_|$-40 «18 33,056|$$-|$33,056 ||1,107,931 |347,468]1,455,399 -$0.023 |$-($s : Seldovia Fuel and Lube Inc. Bulk Fuel Facility Business Operating Plan Page 21 of 26 TABLE E 40 YEAR "R and R"SCHEDULE Cost Allocation Year of Present Day Inflated Yearly SF&L NA NA Activity R&R Activity Value Value Inflated Total 5 Electrical Upgrade $2,500 |]$2,653.4089 §2,653 ||$-§- _||Repair Valve/Pump 4,428 4,700 {|$7,353 4,700|]-ot 10 Fence/Gates Upgrade $2,944 ||$3,366 $3,366 |]$-$- Repair Pad 2,276 2,602 2,602 -- Repair Steps &Landings 1,936 2,213 2,213 -- Repair Truck Fill Station 1,914 2,189 2,189 -- Repair/Maintenance Dike 990 1,132 1,132 -- Pump Replacement 9,714 11,107 11,107 -- Valve Replacement 4,628 5,292 5,292 -- Repair Dispensing Equipment 5,400 6,174 6,174 -- Repair Pipelines/I leaders 4,042 4,622 4,622 -- Electrical Upgrade 2,500 2,858 2,858 -- ____||External Tank Inspection 8,700 9,947 ||$51,502 9,947 |}-- 15 Electrical Upgrade $2,500 |]$3,079 $3,079 |]§$-$- ne Repair Valve/Pump 4,428 ||5,454 |]$8,534 5,454 -Yi 20 Fence/Gates Replacement $9,205 ||$12,214 $12,214 |]$-$- Resurface Pad $3,857 5,117 5,117 -- Repair Steps &Landings 1,936 2,568 2,568 -- Pump Replacement 9,714 12,890 12,890 -- Valve Replacement 4,628 6,142 6,142 -- Replace Dispensing Equipment 18,800 24,947 24,947 -- Major Electrical 16,300 21,629 21,629 -- __|]extemal'Tank Inspection __|8,700 11,544 |}$97,052 ind |{-|] 25 Electrical Upgrade $2,500 ||$3,574 $3,574 II $-$- _|{Repaic Valve/Pump 44281]6,330 ]7$9,904 6,330 -oe 30 Fence/Gates Upgrade $2,944 ||$4,533 $4,533 |]$-$- Repair Pad 2,276 3,504 3,504 -- Repair Steps &Landings 1,936 2,981 2,981 -- Repair Truck Fill Station 1,914 2,948 2,948 -- Repaic/Maintenance Dike 990 1,524 1,524 -- Pump Replacement 9,714 14,959 14,959 -- Valve Replacement 4,628 7,128 7,128 -- Repair Dispensing Equipment 5,400 8,316 8,316 -- Repait Pipeline 4,042 6,225 6,225 -- Electrical Upgrade 2,500 3,850 3,850 -. |ExternalTankInspection 8,700 13,398 |]$69,366 13,398 |]- 35 Electrical Upgrade $2,500 1]§$4,147 $4,147 11 §-$- a Repair Valve/Pump _Z fy ---4,428 |]7,346 $11,494 J]7,346,- 40 Replace Foundations/Liners 5 50,690 |]$90,593 $90,593 |$-$- Fence/Gates Replacement 9,205 16,450 16,450 -- Resurface Pad 3,857 6,892 6,892 -- Replace Steps/Grates 4,414 7,889 7,889 -- Pump Replacement 9,714 17,361 17,361 -- Valve Replacement 4,628 8,272 8,272 -- Replace Dispensing Equipment 18,800 33,600 33,600 -- Major Electrical 16,300 29,132 29,132 -- Replace Pipelines 224,849 401,853 401,853 -- Replace Tanks 418,227 747,459 ||$1,359,501 747,459 -- $951,621 ||$1,614,705 |]$1,614,705 |]$1,614,705 }]$-$- Seldovia Fuel and Lube Inc. Bulk Fuel Facility Business Operating Plan Page 22 of 26 TABLE F 40 YEAR RENEWAL AND REPLACEMENT CASHFLOW SF&L Inflation Rate :Initial Cost per gallon ($/gallon): Reinvestment Rate :20 Year R&R:Annual increase : Escrow Fees:20 Year Loan Proceeds:SF&L Initial Throughput (gallons):NA NA Initial Throughput (gallons):Initial Cost per gallon (§/gallon): Loan Rate:NA Initial Throughput (gallons):Annual increase : Loan Term:J.NA Initial Cost per gallon ($/gallon): Annual increase :| $- R &R Fund Balance Assumed Throughput (Gallons)Per Gallon Payment Year Beg,of Annual Deport Principal Renewals/Interest End of Year .Debt Service Earnings (Net Year SF&L NA NA SF&L NA NA Balance SP&L NA NA Toral Received Replacements of Fees)Balance 1}is -_|$14,445|§-|$-|$14,445 $-|$-[$14,445,555,586 --|18 0.026 |$-|$24 /$14445/$15,028|§-[$-[$15,028 __I$-|$433[$29,907|569,476 -|-I 4s 0.026 |$-|§ "3-1 ]$29,907}$15,635|$-1$-{$15,635 $-|$897 |$46,440 583,713,-|-|1s 0.027 |$-|$_ 41/8 46,440]$16,267)$-|$-|$16,267 $-|$1,393]$64,099 598,305 -|SS 0.027 |$-|s 5 |1$ 64,099]$16,923|$-|$$16,923 $7,353 |§1,702]§75,372 613,263 --|1$0.028 |$-_|$ 6]4s 75,372($17,607!§-($-[$17,607 §-|$2,261 |$95,239 628,595 --(|$0.028 |$-|s 7 |S 95,239)$18,317 $-|$_-|$18,317 a $-|$_2857|$116,414]|644,309 --11$0.028 |$-I$ "Btls 116414]$ 19,057/§-|$_-]$19,057 $-|$2,328]§137,799]|660,417]--|{$0.029 |$-_|$ 9||$137,799]$19,826|$-|$aT§19,826 $_-{$2,756 |$160,382|676,928 ||--J 1s 0.029 |$-|$ 10]{$ 160,382|§20,627 $-[$_-|$20,627 $51,502]$2,178 |$131,684|693,851 _:-|$s 0.030 |$-|g a1}[$s 131,684/$21,400]$-|$-|$21,460 __{s -|$2,634 $155,777 711,197 -_-/|{8 0.030 |$_-|$ 124 ]$155,777]$22,326 [$-|$-[$22,326|_$-|$3,116]$181,219 728,977 --|1$0.031 |$-($_ 13}s 181,219[$23,228 |§-{$[$23,228 -$$3,624[$208,071,|747,201 |--|]s 0.031 |$-.{8 ..14]1s 208071|$24,165 |$-|$=[$24165|$-[$__4161]$236398]|765,881 --|/s oo32[$ -I$45 |1$ 236,398|$25,1411 $-|$-[$25141]$8,534 |§4,557|$257,562}|785,028]--l Is 0.032 |$-|s 16 ||$_257,562]$26,156 |$-|$ss -L$26,156 $s iced'5,151 |$288,870 804,654 -|-|[s 0.033 |$-|§ 17|1$288,870]$27,212 |$-|$-[$27,212 $-|$5,777 |$321,859.824,771 -|ed SS 0.033 |$-|$ 18 |J$ 321,859[§$28,311 $-|$-[$28,311 $-|$6,437 [$356,607 845,390 -|-|]s 0.033 |$_-|$ 19 ||$356,607,$29,454 |$-|$-[$29,454 $-|$7,132]§393,193 866,525 :-|Is 0.034 |§-_|s 20}|$ 393,193]$30,643|$-|$-[$ 30,643|§58,231 |97,052[$5,923!§390,939 888,188 --|[s 0.035 |§-Is 21}]§ 390,939|$31,880 |$-1$-|$31,880 _4$7,725 |$-1§7819 {$422,912.910,392 --|[$_0.035 |§-($s 22||$_422,9121$33,167]$-[$-|$33,167 $7,725 |$-|$8,458]$ 456,813||933,152 --[18 0.036]§-|$ 23 |]$ 456,813|$-34,507|§-ls -|$34,507],$7,725 |$-|$9,136 |$492,730.956,481 --|Ts 0.036 |§-|g 24][$ 492,730]$35,9001 $-[$-[$35,900 $7,725 |§-|$9,855|$530,759 980,393 :-||s 0.0371 $_-{$ 25 ||$ 530,759/§37,349$-[$_-|$37,349 $7,725 |§9,904[$10,417]$560,897 1,004,903 ---TIs$0.037 |$-|s_ 26)1$560,897|$38,857|$-1$-|$38,857 $7,725 |§-[$11,218]$603,246]|1,030,025 --|[$oos!$ -[3 27 |]$603,246]$40,426 |$-|$-|$40,426 $7,725 |$-[$12,065]$648,012]|_1,055,776 --}I$0.038 |$-Is 28}|$ 648,012]§42,058 |$-|$-(|$42,058 $7,725 |$-|§ _12,960|$695,305]|_1,082,170 --|1s 0.039 |§-_|$ 29]1$ 695,305|$43,756|§-|$-|$43,756 _|s 7,725|$ -s-|$13,906 |$-745,243||1,109,225 --|1s 0.039]§-|$ 304][$ 745,243[$45,523 |$-|$-|$45,523 $7,725[$_69,366}$-13,518|$727,192 1,136,955 =|-|{ts 0.040 |$mac; 31 [|$727,192|$47,361 |$-|$[$47,361 $-{$14,544[$§789,097 1,165,379 -{|0.041 |$-_|$ 32 789,097 |$49,273|$-|$-|$___49,273 $-|$15,782]$854,152]|1,194,514 --|1s 0.041 [$_-1s 33 854,152|$51,263|$-|$-[$51,263 $-|$17,083]$922,408]|_1,224,377 --|1§0.042 |§Ig 34)[$ 922498]$53,332|$-|$-|§53,332 $-[$18,450]$994,280 1,254,986]--|1s 0.042 |$Ts35[18 994,280|$55,486 |$-{$-[$55,486]$11,494[$19,656]§1,057,928 1,286,361 -|1$0.043 |§-|$ 36 ||$_1,057,928 |$57,726 |$-|$-|$57,726 3 -|$21,159]$1,136,812 1,318,520 --|[$0.044 |$mc; 37 1,136,812]$60,057 |$-|$-|$60,057 __$-|$22,736]$1,219,605}|_1,351,483 |-|1s 0.04|$-'[§ 38 ||$1,219,605|$62,481!§-|$-[$62,481 $-|$_24,3921 §1,306,479}|1,385,270 --{1 0.045 |$-Is” 39 ||$1,306,479]$65,004|$-|${$65,004 $s--FS 26,130]$1,397,613 1,419,901 --|1§0.046 |§-|[s_40 |1 $1,397,613 [$67,6291 §-|$-1$67,629 $1,359,501 |$7624 $106,503 1,455,399 :-{|s 0.046 |$-(8 Seldovia Fucl and Lube Inc. Bulk Fuel Facility Business Operating Plan Page 23 of 26 TABLEF -PAGE 2RandRParticipantPaymentSchedules SF&L NA NA R &R Fund Balance R &R Fund Balance R &R FundBalance Beg.of a Interest .Beg.of .Interest >Beg.of InterestYearporePaincipalDebtServiceRenewals/Earnings (Net!Total Year Year anual Pencipa Debt Service a!Earnings (Net Total Year Year Annual Principal Debt Renewals/Earnings TotalBalanceepositReceivedReplacementsofFees)Balance eposit eceiver eplacements of Fees)Balance Deposit Received Service Replacements (Net of Fees) $-[$14,445 $-|$14,445 |f 1 $-|§-$-[$-|]_1 [$s -[$s -$1$7 $14,445 $-15,028|| $433.[$29,907 ]}2 1S -_{$-$-[$-|[_2 [s -[$s -$-1$ $29,907 $15,635 5 807 |$46,4401]3 |-[$s -|$-T$-|[>3 ]s_-Ts 2 $"Ts $46,440 [$16,267 $1,393{$64,099 ]]4 [S$-|$:$-[$-|[_4.[s -[s -[$-|$$64,099 |$16,923 7,353($ 1,702/$75,372]5 [$-|$:§-_|s -[$:5 [$s -[$-$-|§-{$: $_75,372|$17,607 $ 2201[$95,239]]6 [$-_|s :$-|$:o|s -[s $a $95,239 $18,317 $2,857($116414]|7 [S$-{$:§-[$-|[7 Js -[$s-$"lf$116,414 [$19,057 -$2328 /$137,7991[8 [$s-[SF -$-T$-|[-8 ]s-Ts $Ts 9 [$137,799|$19,826 j $2,756 |$160,382 ]}9 |S -|$-$-|$ _s-ff 9 fs -8 - ; $"l$$160,382|$20,627 51,502|$2,178 |$131,084 |}10 |$-($-ES -($-1$-|[10 [Js -Ts ___|s Ts T$7$131,684|$21,460 $2034]$_155,777||11 [ss :$$-|[ar iss 5 T§- $155,777 |$22,326 $3,116 |$181,219 |]12 |$-|$:$-|$-|[12 |$ -[$-$lg$181,219|$23,228 _$_3,624[$208,071|]13 |$-|$-$"18 -]2378 -[$s :$-|$$208,071 /$24,165|{$4161|$236,398 ]]14 |$-($s :$-[$efits ts fs . $-1§$236,398|§25,141 |8534]§4,557 $257,502|]15 |$ -I$-|TS -i$-|$-|[15 [$s -[$:$-[$-|$$_257,562 |§26,156 $5,151[$288,870]]16 }s_-$-$[$f te fs se i$[3 : $288,870 |$27,212 [$5,777 1 $321,859]17 |$-[$:$-|$-|I[17 |-[$-$-t$$321,859 /§28,311 $6437 [$356,607 ff18 |$-|$:$-|$-f/13 fs -Ts :$TT$ $356,607 |$29,454][L$7,132)$393,193 P19 |$:$-$s -S$-19 1$§-$s.-|[ $-T$. $393,193 [$30,6431 $58,231|97,052 |$5,9231$390,939 }]20 |$-[t -|$-$-1$-T§-|[-20 |s-Ts -1$|.$-_|$Ts 7 'Ts.390 |$31,880 $7,725 $_7,819[$422,912]]21 |$-[$s :$:$$-]]21 Js -[$s -|_$-_$-l$2|$422,912 [$33,167 $7,725 $8458 /$456,813 |]22 |$§-[$s -$:iE}$-|[22 |s -J[$:$:$$- $456,813 |$34,507 $7,725 $9,136|$492,730 ||23 |$-|$-$:$-{$-}7 23 [$s -[$s -$:$|$: $492,730 |$§35,900 $7,725/$9,855;$530,759 I]24 |S -I$:$:$-[$-|]24 ]s -{$s -$:$-1$$530,759 [$37,349 $7,725 9,904 $10,417|$560,897 ||25 |-/$-__|[s.._-[ss TS [3 ]s_-[s s -(s T$T$7 $560,897 |$38,857 $7,725 $11,218;$603,246 |}20 |§-|:$:Ts -[$-|f 26 |s -[s -$:$-|$: $603,246 |$40,426 $7,725,$12,065!$648,012 J]27 [$-|$-$:$-|$-||27]$-_|$-$:[$"lg.§648,012 |$42,058 $7,725 $12,960]$695,305|]28 |$$-$$-1$-|j 28 [ss -[s $:Ts mcy$695,305|$43,756 $7,725|sd $43,906,$745,243 J]29 |S -_|$-$:$-{$-|7 29 |s -[$s :$:-T$-1$$745,243[$45,523 $7,725 69,366|§13,518'§727,192 ||30 |$-_|$-$-($-{[s _-ls -|]30 [Js -[$s -$-|$-_{$-T$ $727,192|$47,361 §14,544]$789,097|]31|$-_{$-$-|s -|]31 Js -I$:__$IT¢i" $789,097 |$49,273|$15,782 $854,152 |]32 |$-(5 :${$s -I]32 1s -I$-$-1$ $854,152)$51,263 $17,083!$922,498 |]33 1$-_|$.-}$$-]]33 J$_-[$s :$-Ts : $922,498$53,332 $18,450 /$_994,280||34 |8 -[S -§Cs |ce 0 _$[$.$994,280|$55,486|11,494 [$19,656 |$1,057,928 {J 35 |$-|$-|TS -_|$$-|[35 4s -[fs-|Is -[$§-|$$1,057,928|$57,726 $21,159 |$1,136,812J]36 |$-([$:$-|$-||36 Js -ss -$I$$1,136,812 |§60,057 $22,736|$1,219,605 }]37 |$-|$-§-[$-|f37 Js -fs $-T$$1,219,605 |$62,481 $24,392 |$1,306,479 |]38 |$-[s -$-[$-|]38 is -=[¢$-$Tg 7 $1,306,479 |$65,004 $26,130|$1,397,613|]39|$-_[8 -]$-|$-|[39 1s -oT $:$Ts$1,397,613|$67,629 1,359,501 |$7621 $106,503 ||40 |$$-|$-$$$-I]401s -[8 -|$:$$-|$ Seldovia Fuel and Lube Inc. Bulk Fuel Facility Business Operating Plan Page 24 of 26 Seldovia Fuel and Lube Inc. Bulk Fuel Facility Business Operating Plan Page 25 of 26 TABLE G Loan Schedules Year 20 R&R Loan -SF&L Beginning Principal Ending Year Balance Interest Payment |Payment |Balance17$_58,2303 [$3,202.71 |(7,725.38)$4,522.67 |$__53,708.362|$__53,708.36 |$2,953.96 |_($7,725.38)|$4,771.42 |$48,936.943|$__48,936.94 |§2,691.53 |(87,725.38)|$5,033.85|$43,903.094|$43,903.09 |$2,414.67 |($7,725.38)]$5,310.71]$38,592.37 5 |$38,592.37]$2,122.58 |__($7,725.38)|$5,602.80 |$32,989.576|$32,989.57 |$1,814.43 |_($7,725.38)|$5,910.95]$27,078.627|$27,078.62 |$1,489.32 |_($7,725.38)|$6,236.06 |$20,842.56__8 |$_20,842.56 |$1,146.34 |($7,725.38)]$6,579.04|$14,263.529|$14,263.52 |$784.49 |-($7,725.38)|$6,940.89|$7,322.64 10 |$7,322.64]$402.74 |_($7,725.38)|$7,322.64 |$(0.00) $19,022.78 ($77,253.81)$58,231.03 APPENDIX A:PRIMARY OPERATOR STATEMENT OF QUALIFICATION epaenems sesame _ 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. Seldovia Fuel and Lube,Inc. Bulk Fuel Facility Business Operating Plan Page 26 of 26 SELDOVIA FUEL AND LUBE,INC. Community History Seldovia is located on the Kenai Peninsula across from Homer on the south shore of Kachemak Bay.The name Seldovia ts derived from "Seldevoy”,a Russian word meaning "herring bay”. Between 1869 and 1882 a trading post was located in Seldovia,which is one of the oldest settlements in the Cook Inlet region.A post office was established in 1989.The village developed around commercial fishing and fish processing and the City of Seldovia was incorporated in 1945. Over the years,the processing of crab,salmon and cod have been important to the economy of Seldovia,although the local crab population has decreased significantly over the past several decades.Today,commercial fishing and subsistence activities continue to be an integral part of the local culture and economy.In 2004,the population of Seldovia was estimated to be 265 residents. Description of Business History In 1999,Frank Blodgett and his wife,Sharon Colwell,formed an S-Corporation,Seldovia Fuel and Lube,Inc.Seldovia Fuel and Lube,Inc.provides the community of Seldovia with retail fuel sales (diesel,gasoline and propane)and hardware merchandise.The Corporation 1s overseen by a two member Board of Directors;Dan Blodgett is President,Treasurer and Secretary,Frank Blodgett is a Boatd Member. SELDOVIA FUEL AND LUBE,INC. Bulk Fuel Storage Current Businesses:Retail Fuel Sales Home Fuel Delivery Marine Fuel Sales Hardware Merchandise Seldovia Fuel and Lube,Inc.is the only retail fuel sales business in Seldovia and it purchases bulk fuel by barge from Delta Western approximately four to five times per year.Currently,Seldovia Fuel and Lube,Inc.sells diesel fuel for $2.70 per gallon,gasoline for $3.50 per gallon and propane for $1.35 per gallon to residents and businesses in the area for heating,motor vehicles and other fuel needs.Seldovia Fuel and Lube,Inc.operates a diesel fuel and propane fuel truck for fuel delivery to homes and businesses in the community.Additionally,Seldovia Fuel and Lube,Inc.sells marine fuel at the City dock facilities.Seldovia Fuel and Lube,Inc.'s management reconciles fuel consumption with bulk fuel inventory at least two times or more each month. Description of Fiscal Controls and Accounting Procedures Seldovia Fuel and Lube,Inc.operates the business on a January through December fiscal year.Dan Blodgett is the financial manager and bookkeeper for the business.The business'bookkeeping andaccountingisdoneonQuickBooksPremier,an accounting software program,and inventory is done Seldovia Fuel and Lube Bulk Fuel Facility Business Operating Plan Appendix A-1 on QuickBooks Point of Sale.The collection rate is approximately 97 percent or higher.The business contracts with Swalling &Associates,an accounting company located in Anchorage,for year-end financial accounting,yearly audit,and local,state and federal tax services.The Corporation received a "clean audit”by the federal IRS for fiscal years 2002,2003 and 2004. Management and Structure Seldovia Fuel and Lube,Inc.is an S-Corporation with a two member Board of Directors and two employees.The organizational chart below shows the various components of Seldovia Fuel and Lube,Inc.'s overall structure. Seldovia Fuel and Lube,Inc. Organizational Chart Board of Directors Dan Blodgett Frank Blodgett | i i Plant Manager/Fuel Truck Financial ManagerDriverDanBlodgettJoshPatrick | || Office &Dock Sales Office &Dock Sales Tina Tucker Michelle Bateman Identification of Key Personnel The Seldovia Fuel and Lube,Inc.'s Bulk Fuel Facility will have overall direction from Dan Blodgett, President.Mr.Blodgett will be involved in this project from the beginning and 1s the main contact for Seldovia Fuel and Lube,Inc.He will work with AEA and the Denali Commission to ensure the Corporation's role in the project timeline.He is also the financial manager and bookkeeper for the Bulk Fuel Facility and retail fuel sales and is responsible for accounts payable,payroll,and local,state and federal reports.See attached resume and Fuel Facility Manager job description. Josh Patrick is the Plant Manager for the Bulk Fuel Facility and retail fuel sales.He is responsible for maintaining the Facility and keeping it up to code,ordering fuel inventory and tracking fuel sales. Additionally,he is responsible for scheduling,hiring and supervising staff.See attached resume. Seldovia Fuel and Lube Bulk Fuel Facility Business Operating Plan Appendix A-2 Organization of Bulk Fuel Facility Management and Operations The following chart illustrates the project staffing of the Seldovia Fuel and Lube,Inc.'s Bulk Fuel Facility: Seldovia Fuel and Lube,Inc. Bulk Fuel Facility Project Staffing rc ,President Dan Blodgett NK / (Financial Manager &Bookkeeper ) Dan Blodgett \/ (Plant Manager ) Josh Patrick NW A Training Needs At this time no training and/or technical assistance needs have been identified for the management and employees of Seldovia Fuel and Lube,Inc. Proposed Training Plan Seldovia Fuel and Lube,Inc.may utilize training resources available through AEA and the Alaska Vocational Technical Center to ensure proper training of its staff.The following is a summary of those resources: e Alaska Energy Authority (AEA) The Alaska Energy Authority has developed a series of courses relating specifically to Bulk Fuel and Power Utility operations.These courses are taught through the Alaska Vocational Technical Center (AVTEC)in Seward: Phone:(907)-269-3000 Contacts Monica Moote,Training Program Manager,Alaska Energy Authority/AIDEA Address:813 West Northern Lights Blvd.,Anchorage,Alaska 99503 Phone:(907)269-3026 Fax:(907)269-3044 Web Address:www.aidea.org/training.htm Email address:bttedeman@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 Seldovia Fuel and Lube Bulk Fuel Facility Business Operating Plan Appendix A-3 SS"e80060Technical 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. 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 Seldovia Fuel and Lube Bulk Fuel Facility Business Operating Plan Appendix A-4 oT"@e9660VSPweweesewewa-----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. Basic course content includes:O.A.W.(Oxyacetylene Welding);S.M.A.W.(Stick electrode); G.M.A.W.(MIG);G.T.A.W.(IIG);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: Seldovia Fuel and Lube Bulk Fuel Facility Business Operating Plan Appendix A-5 eesewww|oO ==-0e0080wwBusiness 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 program prepares students for installation,maintenance,service,repair and diagnostics to maintain installations and repair numerous types of facility equipment.Approximately 50 percent of the course 1s classroom instruction with the remainder being hands on training.Two certificates can be obtained: Building Maintenance Repairer and Building Maintenance Repairer Helper.The entire course will take approximately 38 weeks or 1316 hours. The main courses of study are carpentry,plumbing,heating and electrical.Basic course content includes:Carpentry (blueprint reading,power tools and hand tools,framing, sheetrock,structural repair,foundations);Plumbing (names of fittings,join pipe,repair and replace fixtures);Heating (proper cleaning,troubleshooting,preventative maintenance);and, Electrical (electrical theory,residential wiring,electrical troubleshooting,national electrical code,blueprints,schematics). Facility Maintenance/Mechanical -This program prepares students for installation, maintenance,service,repair and diagnostics of HVAC/R equipment.Approximately 45 percent of the course is classroom instruction with the remainder being hands on training. Six certificates can be obtained:Plumbing and Heating Technician;Plumbing and Heating Repairer;Plumbing and Heating Assistant Repairer,HVAC/R Technician;HVAC /R Unit Repairer;HVAC/R Helper.The 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 dieselgeneratorsetsrepresentativeofinstallationsinruralAlaskawiththeremainderoftimespentinclassroominstruction.Certificates can be obtained in Diesel Plant Operator and Assistant Seldovia Fuel and Lube Bulk Fuel Facility Business Operating Plan Appendix A-6 wrewerewewwe=|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. Seldovia Fuel and Lube Bulk Fuel Facility Business Operating Plan Appendix A-7 'eo368ww------we=---- --_.RESUMES/JOBS DESCRIPTION Seldovia Fuel and Lube Bulk Fuel Facility Business Operating Plan Appendix A-8 -" "=-@e00060-.rawe==-Seldovia Fuel and Lube,Inc. PO Drawer C Seldovia,Alaska 99663 Work 907-234-7622 Fax 907-234-7442 Dan Blodgett Employment Seldovia Fuel and Lube,Inc. 2005-Present President &Bulk Fuel Facility Manager All day to day management,supervision and operations of the Bulk Fuel Facility,retail fuel sales,fuel deliveries and hardware sales.Responsible for fuel orders,shipment and transfers to the Bulk Fuel Facility.Responsible for all fuel and hardware purchasing. 2005 -Present Board Treasurer &Secretary Financial Manager Responsible for accounts payable,payroll and preparation of required fuel sales and other local,state and federal reports.Coordinates and oversees year-end financial reports,annual audits,and local,state and federal tax filings. Previous Employment Blodgett Homes 2002 -2006 Owner;Custom home builder,sales,purchasing,marketing and construction Terhune Homes 1992 -2002 Superintendent;responsible for overall construction of custom homes Chief Estimator;responsible for all costing of homes General Manager Northern Branch Buggy Wash,Seattle,WA 1983 -1985 Attendant;fill cars,read pumps,close down at night Military U.S.Navy,1983 -1992 Virginia,Illinois,Alaska,Hawaii Education/Training 1985 High School Graduation Federal Way,WA HazWopper 40 hour training,8 hour annual refresher Drug/Alcohol program supervisor 40 hour Leader,Management,Educational Training (LMET) 40 hour Total Quality Leadership (TQL) Achieved Ocean Systems Technician Level 1 (Navy) US.Coast Guard Initiated Spill Drill 24 hour Fire Fighter Training Spill response and clean up training CPR &First Aid Certification Community Volunteer Work Member S.O.S. Planning and Zoning Committee member Wrestling Coach High School,Jr.High School,Seldovia 6 -12 year old League Seldovia Fuel and Lube Bulk Fuel Facility Business Operating Plan Appendix A-9 -eeooocelien'weyPaSweJosh Patrick Seldovia Fuel and Lube,Inc. PO Drawer C Seldovia,Alaska 99663 Work 907-234-7622 Fax 907-234-7442 Employment Previous Employment Education Skills Seldovia Fuel and Lube,Inc. 2000-Present Plant Manager Responsible for office management that includes balancing books daily,office sales,entering information into QuickBooks and other software programs,networking and setting up computers and inventory.Responsible for plant management that includes maintaining the facility and keeping it up to code,ordering inventory and tracking sales.Additional responsibilities include scheduling employees,hiring and supervising employees. Homer Ait Seldovia,AK 1996-2000 Seldovia Station Manager Responsible for on-loading and off-loading airplanes,ticket sales, general cleaning and public relations with customers. Pelican Seafoods,Inc.Pelican,AK 1992-1996 Office Sales Responsible for office sales,ordering inventory,counting inventory and stocking shelves. 1992 High School Diploma Cambridge High Cambridge,MN Accounting to bookkeeping Computer trouble shooting Building computers and networking Good public relations Easy to get along with General maintenance Seldovia Fuel and Lube Bulk Fuel Facility Business Operating Plan Appendix A-10 SELDOVIA FUEL AND LUBE,INC. JoB DESCRIPTION BULK FUEL FACILITY MANAGER Exempt (Y/N):No Salary: Division:Bulk Fuel Location:Seldovia Employee:Supervisor:N/A Approved By:N/A Date: SUMMARY:Plans and directs activities of bulk fuel facility operations.Ensures facility is maintained according to guidelines outlined in Business Plan,the Operations and Maintenance Manual,all manufacturers'recommendations for maintenance,and all state and federal laws and regulations governing operation. ESSENTIAL DUTIES AND RESPONSIBILITIES include the following.Other duties may be assigned. Acts as point of contact for communications between the Seldovia Fuel and Lube,Inc.,the City of Seldovia,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 Corporation 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 withinthefacility.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. Seldovia Fuel and Lube Bulk Fuel Facility Business Operating Plan Appendix A-11 @eooce.-------_--_--__.{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. Seldovia Fuel and Lube Bulk Fuel Facility Business Operating Plan Appendix A-12 APPENDIX B:O&M AND R&R CosT ESTIMATE LOMF Proj#05-752 CONSTRUCTION COST ESTIMATE 90%SUBMITTAL BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS CITY TANK FARM SELDOVIA,ALASKA PREPARED BY:PREPARED FOR: LCMF llc Alaska Energy Authority 615 East 82nd Ave 813 West Northern Lights Blvd. Anchorage,AK 99518 Anchorage,AK 99503 (907)273-1830 (907)273-1831 FAX October 24,2005 Seldovia Fuel and Lube Inc. Bulk Fuel Facility Business Operating Plan Appendix B-1 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS PAGE 1 SELDOVIA,ALASKA 90%SUBMITTAL CONSTRUCTION COST ESTIMATE October 24,2005 NOTES REGARDING THE PREPARATION OF THIS ESTIMATE These Operation/Maintenance and Replacement/Renewal costs are based on the Seldovia Bulk Fue!Upgrade 90%Design Drawings dated October 11,2005 prepared by LCMF lic of Anchorage,Alaska and do not include costs that could incur due to unexpected events such as natural disaster,vandalism,etc. Each work item is priced using "Force Account"local labor with exception of major testing,replacement,etc.which are priced using outside consultant/ contractor rates,per diem,and travel costs."Force Account"labor rates are assumed as an average hourly rate for each village scenario. O&M costs are established on yearly basis in 2005 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 |]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. Seldovia Fuel and Lube Inc. Bulk Fuel Facility Business Operating Plan Appendix B-2 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS SELDOVIA,ALASKA 90%SUBMITTAL CONSTRUCTION COST ESTIMATE SUMMARY One Time Cost TOTAL COST (In 2005 Dollars) PAGE 2 October 24,2005 A.Operations &Maintenance Costs (Yearly)11,496 x 40 Years = B.Renewal Costs (Over 40 Years) C.Replacement Costs (Over 40 Years) $459,840 See Business Plan Table See Business Plan Table TOTAL 0&M AND RENEWAL/REPLACEMENT COSTS (2005 DOLLARS):See Business Plan NOTE:Items B and C costs are for multiple events over 40 years period.See Business Plan Tables for actual costs including inflation factor and number of occurrences/event. Seldovia Fuel and Lube Inc. Bulk Fuel Facility Business Operating Plan Appendix B-3 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS SELDOVIA,ALASKA 90%SUBMITTAL CONSTRUCTION COST ESTIMATE PAGE 3 October 24,2005 QUANTITY MATERIAL A.Operations &Maintenance Costs (Yearly)No.of Unit Units Meas LABOR Unit Cost Price $ MH Unit Total Hrs Rate Cost Cost TOTAL NOTE:These projections are based on the City bulk tank farm comprising of (5)49,500 gallon bulk tanks with receipt and issue lines, pumping systems,and dispensing tanks (total shell capacity 358,500 gallons). All costs are projected on yearly basis using local labor and construction equipment rented from local resources. 1.GROUND MAINTENANCE Annual common ground maintenance 12 Mos 6.000 72.000 24.00 1,728 1,728 SUBTOTAL 1.GROUND MAINTENANCE (YEARLY):1,728 1,728 2.TANKS,PIPELINES AND INSPECTIONS 300 GPM fuel delivery (200,000 gallons 3 time per year)3 LOT Perform minor repairs,replace faulty valves and gauges (1 time/year -9 tanks -38 valves)1 LOT Annual inspection/pressure testing (4 tanks, 2 truck fill enclosures,2 pumps and 10 valves) (1 time/year)1 LOT 500.00 500 200.00 12 8.000 24.000 16.000 24.000 24.000 75.000 24.00 24.00 24.00 576 576 1,800 576 1,076 1,812 SUBTOTAL 2.TANKS,PIPELINES,ETC.(YEARLY):512 2,952 3,464 Seldovia Fuel and Lube Inc. Bulk Fuel Facility Business Operating Plan Appendix B-4 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS SELDOVIA,ALASKA 90%SUBMITTAL CONSTRUCTION COST ESTIMATE PAGE 4 October 24,2005 _QUANTITY |MATERIAL}LABOR __EQUIPMENT_A.Operations &Maintenance |.rfCosts(Yearly)No.of Unit Unit Cost MH Total Cost Unit Cost TOTAL Units Meas Price $Unit Hrs Rate $Price $$ 3.OTHER COSTS Operator training EA 8.000 8.000 80.00 640 640 Administration -clerical 12 Mos 8.000 96.000 24.00 2,304 2,304 Supervision 12 Mos 6.000 72.000 30.00 2,160 2,160 Annual audit (in Anchorage)EA 12.000 12.000 100.00 1,200 1,200 SUBTOTAL 3.OTHER COSTS (YEARLY):6,304 6,304 SUMMARY (YEARLY) 1.GROUND MAINTENANCE $1,728 2.TANKS,PIPELINES AND INSPECTIONS $3,464 3.OTHER COSTS $6,304 TOTAL IN PRESENT DOLLARS/YEAR:$11,496 Seldovia Fuel and Lube Inc. Bulk Fuel Facility Business Operating Plan Appendix B-5 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS SELDOVIA,ALASKA 90%SUBMITTAL CONSTRUCTION COST ESTIMATE PAGE 5 October 24,2005 Seldovia Fuel and Lube Inc. Bulk Fuel Facility Business Operating Plan Appendix B-6 QUANTITY MATERIAL LABOR EQUIPMENT B.Renewal Costs _ (Over 40 Years)No.of Unit Unit Cost MH Total Cost Unit Cost TOTAL Units Meas Price $Unit Hrs Rate $Price $$ 1A.FENCE Repair 8'0"fence and gates (at 10 and 30 years -2 times)300 =F 3.75 1,125 0.250 75.000 17.85 1,339 1.60 480 2,944 1B.PADS,DIKES,ETC. Errosion control of pads (at 10 and 30 years -2 times)3,000 SF 0.30 900 0.010 30.000 17.85 536 0.28 840 2,276 Repair steps and landings 200 SF 5.00 1,000 0.150 30.000 17.85 536 2.00 400 1,936 (at 10,20 and 30 years) Truck fill station minor repairs (at 10 and 30 years -2 times)1 LOT 1500.00 1,500 12.000 12.000 17.85 214 200.00 200 1,914 Dike minor maintenance (at 10 and 30 years -2 times)7,000 SF 0.03 210 0.004 28.000 17.85 500 0.04 280 990 SUBTOTAL 1A &B.FENCE,PADS,DIKES,ETC.:4,735 3,124 2,200 10,059 2A.TANKS Replace pumps (at 10,20,30 and 40 years -4 times)5 EA 1400.00 7,000 8.000 40.000 17.85 714 400.00 2,000 9,714 Repair pumps and valves (at 5,15, 25 and 35 years -4 times)10 EA 200.00 2,000 8.000 80.000 17.85 1,428 100.00 1,000 4,428 Replace miscellaneous valves and gauges (at 10,20,30 and 40 years - 4 times -9 tanks -50 each)1 LOT 4000.00 4,000 24.000 24.000 17.85 428 200.00 200 4,628 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS SELDOVIA,ALASKA 90%SUBMITTAL CONSTRUCTION COST ESTIMATE PAGE 6 October 24,2005 B.Renewal Costs (Over 40 Years) __QUANTITY No.of Units MATERIAL LABOR EQUIPMENT Unit Meas Unit Price Cost $ MH Unit Total Hrs Rate Cost Unit Price L Cost $ TOTAL Tank external inspection;includes per diem and travel costs (at 10,20 and 30 years -3 times - 9 tanks)1 LOT 2B.PIPELINES AND HEADERS Check 4"marine headers and repair (at 10 and 30 years -2 times -3 each -1200 ft each)1 LOT Check and repair truck fill meter, pumps,and loading arms (at 10 and 30 years -2 times -3 each)1 LOT 2C.DISPENSING AREA Repair dispensing equipment (at 10 and 30 years -2 times)1 LOT 1200.00 500.00 2000.00 4000.00 1,200 500 2,000 4,000 80.000 40.000 24.000 24.0 80.000 40.000 24.000 16 75.00 17.85 17.85 75.00 6,000 1500.00 714 200.00 428 200.00 1,200 200.00 1,500 200 200 200 8,700 1,414 2,628 5,400 SUBTOTAL 2A,B &C.TANKS,PIPELINES,DISP.:20,700 10,913 5,300 36,913 3.ELECTRICAL MAINTENANCE Check electrical systems serving tank pumps and repair as necessary (at 5,10,15,25, 30 and 35 years -6 times -2 pumps){1 LOT 500.00 500 24.000 24.000 75.00 1,800 200.00 200 2,500 SUBTOTAL 3.ELECTRICAL MAINTENANCE:500 1,800 200 2,900 Seldovia Fuel and Lube Inc. Bulk Fuel Facility Business Operating Plan Appendix B-7 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS SELDOVIA,ALASKA 90%SUBMITTAL CONSTRUCTION COST ESTIMATE PAGE 7 October 24,2005 _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 $$ SUMMARY (One time cost -multiply by number of times to be renewed) 1A &B.FENCE,PADS,DIKES,ETC.$10,059 2A,B&C.TANKS,PIPELINES,DISPENSING $36,913 3,ELECTRICAL MAINTENANCE $2,500 TOTAL IN PRESENT DOLLARS FOR 40 YEARS:$49,472 Seldovia Fuel and Lube Inc. Bulk Fuel Facility Business Operating Plan Appendix B-8 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS SELDOVIA,ALASKA 90%SUBMITTAL CONSTRUCTION COST ESTIMATE PAGE 8 October 24,2005 _QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs - (Over 40 Years)No.of Unit Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas Price $Unit Hrs Rate $Price $$ 1A.FENCE Replace 8'0"fencing (at 20 and 40 years -2 times)300 =OLF 12.50 3,750 0.500 150.000 17.85 2,678 4.40 1,320 7,748 Replace 4'0"man gates (at 20 and 40 years -2 times)4 EA 275.00 1,100 5.000 20.000 17.85 357 1,457 1B.PADS,DIKES,ETC. 3"gravel surfacing for pads,28 CY (at 20 and 40 years -2 times)3,000 SF 0.45 1,350 0.030 90.000 17.85 1,607 0.30 900 3,857 Remove and replace precast tank foundations (at 40 years -1 time)1 LOT =1500.00 1,500 80.000 80.000 17.85 1,428 5000.00 5,000 7,928 Excavate,replace HDPE liner (at 40 years -1 time)7,000 SF 1.35 9,450 0.100 700.000 =17.85 12,495 0.35 2,450 24,395 3"gravel surfacing to non-woven geotextile (2 layers)7,000 SF 0.10 700 0.005 35.000 17.85 625 0.30 2,100 3,425 Replace/maintain truck fill canopy and containment (at 40 years -1 time)1 LS 6000.00 6,000 80.000 80.000 22.50 1,800 2000.00 2,000 9,800 Replace sheetmetal lining (at 40 years -1 time)1,000 SF 2.85 2,850 0.120 120.000 17.85 2,142 0.15 150 5,142 Replace steps and grating (at 40 years -1 time)40 LF 90.00 3,600 1.000 40.000 17.85 714 2.50 100 4,414 SUBTOTAL 1A &B.FENCE,PADS,DIKES,ETC.:30,300 23,845 14,020 68,165 Seldovia Fuel and Lube Inc. Bulk Fuel Facility Business Operating Plan Appendix B-9 aBULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS SELDOVIA,ALASKA 90%SUBMITTAL CONSTRUCTION COST ESTIMATE PAGE 9 October 24,2005 __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 $$ 2A.TANKS Replace 49,500 gallon bulk tanks (7 each -1 time)7 # EA 58,500 409,500 16.000 112.000 17.85 1,999 750.00 5,250 416,749 Replace 18"anchor bolts at 18”o/c 42 EA 11.15 468 1.150 48.300 17.85 862 3.50 147 1,477 2B.PIPELINES AND HEADERS Replace 4"Sch 80 receipt/issue lines (at 40 years -3 each -1200 ft each)3,600 LF 27.50 99,000 0.920 3312.000 17.85 59,119 5.50 19,800 177,919 Replace 2"lines at dispensing tanks (at 40 years -3 each -270 ft each)810 LF 21.00 17,010 0.650 526.500 17.85 9,398 3.00 2,430 28,838 Replace valves,2"(at 40 years)16 EA 155.00 2,480 1.250 20.000 17.85 357 2,837 Replace valves,4”(at 40 years)19 EA 310.00 5,890 2.000 38.000 17.85 678 6,568 Replace pipe supports (1 time at 40 years)25 EA 235.00 5,875 3.500 87.500 17.85 1,562 50.00 1,250 8,687 2C.DISPENSING AREA Replace dispensing equipment (at 20 and 40 years -2 times)1 LOT 15000.00 15,000 40.0 40 75.00 3,000 800.00 800 18,800 SUBTOTAL 2A,B &C.TANKS,PIPELINES,DISP.:§55,223 76,976 29,677 661,876 Seldovia Fuel and Lube Inc. Bulk Fuel Facility Business Operating Plan Appendix B-10 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS SELDOVIA,ALASKA 90%SUBMITTAL CONSTRUCTION COST ESTIMATE PAGE 10 October 24,2005 QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas Price $Unit Hrs Rate $Price $$ 3.ELECTRICAL SYSTEMS Replace wiring,panels and circuit breakers for tanks,pumps,etc.(at 20 and 40 years -2 times -2 pumps)1 LS 10000.00 10,000 80.000 80.000 75.00 6,000 300.00 300 16,300 SUBTOTAL 3.ELECTRICAL SYSTEMS:10,000 6,000 300 16,300 SUMMARY (One time cost -multiply by times to be replaced) 1A &B.FENCE,PADS,DIKES,ETC.$68,165 2A,B &C.TANKS,PIPELINES,DISPENSING $661,876 3.ELECTRICAL SYSTEMS $16,300 TOTAL RENEWAL:$746,341 Seldovia Fuel and Lube Inc. Bulk Fuel Facility Business Operating Plan Appendix B-11 ADDITIONAL RELATED AND ATTACHED DOCUMENTS 1.Secondary Operator Agreement 2.Bulk Fuel Storage and Distribution Facility Lease Agreements 3.Ground Lease Agreement 4.Grant Agreement 5.R&R Fund Account -Sample Documents SECONDARY OPERATOR AGREEMENT FOR THE SELDOVIA BULK FUEL FACILITY WHEREAS,the Denali Commission ("Commission”)has provided,or will provide,funds to the Alaska Energy Authority ("Authority”)for a grant by the Authority to the City of Seldovia (the "City”)for the upgrading of the bulk fuel storage facilities at Seldovia,Alaska (the "Facility”)to be owned by the City and leased to the Seldovia Fuel and Lube,Inc.("SF&L”),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,the Community and the SF&L have agreed to a Business Operating Plan consistent with the Sustainability Criteria for the operation of the Facility,as contained in the Seldovia Bulk Fuel Facility Business Operating Plan dated June 27,2006 ('Plan');and WHEREAS,the Plan specifies that the SF&L 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,the City and the SF&L 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,the City and the SF&L agree as follows,in consideration for the mutual promises contained herein and the benefits to the parties resulting from the completion and operation of the Facility: 1.The Primary Operator shall operate the components of the Facility specified in the Plan in accordance with the terms and conditions of the Plan and the requirements contained herein. 2.In addition to,and consistent with its duties specified in the Plan,the Primary Operator shall,in a timely manner: 2.1 properly establish and maintain accurate books and records; 2.2 account for,bill for,and use its best efforts to collect all fuel sales and all other receivables; Secondary Operator Agreement for the Seldovia Bulk Fuel Facility Page 2 of 5 2.3 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); 2.4 maintain adequate cash reserves for fuel purchases so that emergency fuel shipments are not necessary; 2.5 obtain annual audits showing the absence of any management or financial irregularities; 2.6 perform necessary maintenance of and repairs to the Facility; 2.7 provide or obtain necessary training for Facility operations;and 2.8 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 fixed assets, business operations of the Facility,and those current assets (cash,receivables,inventory)that would bring the O&M and R&R accounts into compliance with the Plan,to the Secondary Operator and assign the Secondary Operator responsibility for partial or total management of the Facility.All other assets related to the retail sales that are owned by the Primary Operator (SF&L),including,but not limited to,inventories,receivables,cash on hand,will be compensated for at the prevailing values. 4.1.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.) 4.2 If the Commission utilizes a Secondary Operator,the Primary Operator will transfer the complete control and authority over the following to the Secondary Operator:the books and records relating to the Facility operations,and all cash,inventories,accounts receivable,and all other account funds that would bring the O&M and R&R accounts into compliance with the Plan.The SF&L 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. Secondary Operator Agreement for the Seldovia Bulk Fuel Facility Page 3 of 5 4.3,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. 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 (to be determined)may not exist or be willing to serve in this capacity at the tume a Secondary Operator is needed,or other circumstances may prevent (to be determined)from serving as Secondary Operator.Therefore,the City and SF&L acknowledge and agree that the Commission may appoint any qualified entity or entities to serve as Secondary Operator.The Commission will consult with the City and the SF&L 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 SF&L and taking into account the needs and interests of the community of Seldovia 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 1s 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. 5.Ifa 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. 6.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. 7.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. 8.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. Secondary Operator Agreement for the Seldovia Bulk Fuel Facility Page 4 of 5 9.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. 10.This Agreement shall be binding upon,and inure to the benefit of,the parties hereto,and their respective heirs,successors,and assigns. 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 SELDOVIA by (Signature)(Date) (Name Printed)(Title) for the SELDOVIA FUEL AND LUBE,INC. by (Signature)(Date) (Name Printed)(Title) for the DENALI COMMISSION by (Signature)(Date) (Name Printed)(Title) Secondary Operator Agreement for the Seldovia Bulk Fuel Facility Page 5 of 5 for (TO BE DETERMINED) by (Signature)(Date) (Name Printed)(Title) BULK FUEL STORAGE AND DISTRIBUTION FACILITY LEASE This Bulk Fuel Storage and Distribution Facility Lease (hereafter "Facility Lease” or "Lease”)is entered into this 13?day of _Fapveany 2006,between the Facility Lessor,the City of Seldovia,hereinafter called "the City',whose address is Drawer B,Seldovia,Alaska 99683,and the Facility Lessee,Seldovia Fuel and Lube, Inc.,an Alaskan Corporation,hereinafter called "SF&L',whose address is Post Office Box 93230,Anchorage,Alaska 99509. The parties agree as follows: 1.The Facility.The City hereby leases to SF&L the exclusive right to use, operate and maintain a bulk fuel storage and distribution facility (hereinafter referred to as "Facility”),constructed on the surface estate of the following real property which is located in the Seldovia Recording District,State of Alaska: Portions of Lots 28 and 29,Block 10,U.S Survey 1771 and Lot 39,U.S.Survey 2160,as shown on the attached Exhibit A.The general location,as shown on Exhibit A,is subject to redescription upon survey, as necessary,to reflect as-built alignments of improvements. The Facility leased by the City to SF&L herein includes the bulk fuel storage tanks,pipelines,and appurtenances owned by the City on the above- described real property.The "Premises”referred to herein includes both the Facility and the City's leasehold interest in the above-described real property under the terms of the Ground Lease between the City and SF&L dated the same date as this Facility Lease. Term of Lease.The initial lease term shall be for a period of fifty (50)years. The lease term shall commence on the date that the City secures a written commitment for the funding needed to remove the existing bulk fuel storage facility from the Premises and to construct a new bulk fuel storage facility on the Premises.At the expiration of the initial term,the lease term shall be automatically renewed for an additional term of fifty (50)years,so long as SF&L or its representatives,successors,sublessees,and assigns are Bulk Fuel Storage and Distribution Facility Lease Page 1 (City of Seldovia and Seldovia Fuel &Lube) continuing to use the Premises for bulk fuel storage and distribution in the City of Seldovia. 3.Rent.The annual rent and consideration for use of the Facility shall be the amount of the Ground Lease rental (as adjusted under the Ground Lease) plus the payments required under the Secondary Operator Agreement between SF&L,the City and the Denali Commission,including payments required for Facility operations and maintenance (O&M)and Renewal and Replacement (R&R).For as long as SF&L or its successor is both the fee owner of the Premises and the Facility Lessee herein,there will be an offset of that portion of the rent payable by SF&L (or the successor who is both the fee owner and Facility Lessee)to the City representing the Ground Lease rent payable to SF&L under the Ground Lease (as adjusted under the Ground Lease),and the only rent payment shall be the payment of those amounts required under the Secondary Operator Agreement.SF&L and any successor shall maintain separate O&M and R&R accounts;shall deposit O&M and R&R payments into the appropriate accounts;and shall use funds in these accounts in a manner consistent with the terms of the Secondary Operator Agreement and the Business Operating Plan of the Seldovia Bulk Fuel Facility. 4.Compliance with the Secondary Operator Agreement.SF&L (including its representatives,successors,sublessees,and assigns,and transferees) accepts and shall comply with all terms and conditions of the Secondary Operator Agreement between the City and the Denali Commission. SF&L's failure to comply with the Secondary Operator Agreement may result in the City's terminating this Lease. 5.Successors Bound.All covenants and provisions in this Lease extend to and bind the legal representatives,successors,sublessees,and assigns of the parties. 6.Sublease,Sale,or Other Transfer.Any sublease,sale or other transfer of the Facility is subject to the terms and conditions of the Grant Agreement between the City and the Alaska Energy Authority,including the Denali Commission's policy requiring its approval of any transfer of Denali Commission-funded assets and also including any other applicable Denali Commission policies. 7.Access to Premises.The City or its authorized representatives reserve the right of ingress to and egress from the Premises upon reasonable notice to SF&L. Bulk Fuel Storage and Distribution Facility Lease Page 2 (City of Seldovia and Seldovia Fuel &Lube) 8.Operation and Maintenance.At no cost to the City,SF&L will provide all utilities,services,and maintenance necessary for SF&L's use of the Premises.SF&L 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.SF&L shall operate and maintain the Facility in compliance with manufacturer's recommendations and all applicable State and Federal laws and regulations.In addition,SF&L 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. In discharging its obligations for maintenance under this Lease,SF&L shall be entitled to utilize the funds for operations and maintenance (O&M)and Renewal and Replacement (R&R)that are set aside for this purpose under the Secondary Operator Agreement between SF&L,the City and the Denali Commission.The City shall approve SF&L's use of the R&R funds so long as the use of the R&R funds is consistent with the requirements and restrictions of the Secondary Operator Agreement and the Business Operating Plan of the Seldovia Bulk Fuel Facility. 9.Surface Reservation.Unless otherwise stated in this Facility Lease,SF&L may not sell,lease or remove for use elsewhere any of the surface resources of the Premises. 10.Breach and Remedies. (a)The Premises are to be used only for purposes related to developing and operating the bulk fuel storage facility and other related activities that will serve the greater good of the community of Seldovia and for no other purpose without specific written authorization of the City.The City retains the right to terminate this Lease upon thirty (30)days written notice if the Premises are used for unauthorized purposes. (b)Time is of the essence in this Lease.If SF&L breaches any provision of this Facility Lease,other than a breach for improper use of the Premises, which is governed by subparagraph (a)above,and the breach is not remedied within thirty (30)days after written notice of it has been served on SF&L,SF&L is subject to any legal action that the City considers appropriate,including the termination of this Lease.The City is not liable for any expenditures made by SF&L in the event of the termination of this Lease. Bulk Fuel Storage and Distribution Facility Lease Page 3 (City of Seldovia and Seldovia Fuel &Lube) (c)If this Lease is terminated by summary proceeding or in any other manner,or if the Premises or any part of it is abandoned by SF&L during the term of this Lease,the City,after written notice to SF&L,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. 11.No waiver.The failure of the City 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. 12.Indemnification.SF&L,as the Facility Lessee,assumes all responsibility, risk and liability for the operation;use of the Facility by SF&L,its successors,or its invitees;control;maintenance;repair;replacement;and the condition of the Facility subject to this Lease.In addition to,and in no way limiting SF&L's other indemnity obligations under this Lease,SF&L as the Facility Lessee shall defend,indemnify,and hold harmless the City from and against any and all demands,causes of action (whether in the nature of an action for damages,indemnity,contribution,government cost recovery or otherwise),fines,judgments,suits,claims,actions,losses,costs (including attorneys fees and litigation costs),expenses,charges, forfeitures,liens,liabilities,penalties and damages of any kind or nature whatsoever,including but not limited to,any accident or fire on the Premises,personal injury,wrongful death,environmental contamination, nuisance,or property damages,or any failure of SF&L,as the Facility Lessee,to keep the Facility in a safe and lawful condition consistent with applicable laws,regulations,ordinances,or orders;or any assignments, sublease or conveyance,attempted or successful,by SF&L,as the Facility Lessee,which is contrary to the provisions of this Lease,arising out of,in connection with,arising or resulting directly or indirectly from,or otherwise incident to the Facility.The City may tender any such cause of action, lawsuit,or other proceeding brought against the City to SF&L as the Facility Lessee and such tender shall immediately be accepted by SF&L.Any attorney's fees or costs incurred by the City prior to such tender of defense shall be the complete and sole responsibility,without limitation,of SF&L as the Facility Lessee.The obligations of SF&L as the Facility Lessee under all of the indemnification provisions of this Agreement shall survive beyond the termination or expiration of the term of this Facility Lease. Bulk Fue!Storage and Distribution Facility Lease Page 4 (City of Seldovia and Seldovia Fue!&Lube) SF&L,as the Facility Lessee,will keep all goods,materials,furniture, fixtures,equipment,machinery,and other property on the Premises at his sole risk,and will hold the City harmless from any claim of loss or damage to them by any cause. 13.Notice of Claim.The parties agree to immediately notify each other of any claim,demand,or lawsuit arising out of or affecting SF&L'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. 14.Laws and Taxes.At no expense to the City,SF&L as the Facility Lessee will conduct all activities authorized by this Facility Lease in compliance with all Federal,State,and local laws,ordinances,rules and regulations now or hereafter in force,which apply to the activities authorized herein or to the use,care,operation,maintenance,and protection of the facilities,including but not limited to matters of health,safety,sanitation,and pollution.The acquisition of any necessary licenses or permits and payment of any taxes and special assessments accruing against the Premises during this lease term will be the responsibility of SF&L as the Facility Lessee or its sublessees and not that of the City. 15.Insurance. (a)SF&L,at its own expense,shall provide liability and property damage insurance at a limit of at least $1 million,naming the City as an additional insured. (b)SF&L shall throughout the Term of this Lease,maintain appropriate insurance against loss or damage by fire to the Facility. 16.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. Seldovia Fuel and Lube,Inc Post Office Box 93230 Anchorage,Alaska 99509 City of Seldovia Drawer B Seldovia,Alaska 99683. Bulk Fuel Storage and Distribution Facility Lease Page 5 (City of Seldovia and Seldovia Fuel &Lube) 17. 18. 19. 20. 21. 22. Denial_of Warranty Concerning Title or Conditions.The City makes 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.SF&L leases the Premises subject to any and all of the covenants,terms,and conditions affecting the City's title to the Premises. 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. 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. Headings.The heading of the numbered paragraphs in this Lease shall not be considered in construing any provision of this Lease. Additional Land.The City may have the opportunity to lease an additional parcel of land located adjacent to the Premises.The additional parcel is described as Lot 27A,Block 10,U.S.Survey 1771,according to Plat No.81- 10,Waterfront Subdivision No.5,records of the Seldovia Recording District,Third Judicial District,State of Alaska. If the City is successful in leasing Lot 27A,then it shall become part of the Premises described in and leased under this Facility Lease. Both SF&L and the City shall also cooperate with one another and work together towards SF&L acquiring title to,or at least an easement in and across,the northern 15 feet of Lot 27,Block 10,U.S.Survey 1771,Seldovia, Alaska.If an easement is obtained,the easement shall be for the installation, repair,replacement and use of petroleum and petroleum product pipelines.In the event the City leases or obtains an easement in and across the northern 15 feet of Lot 27,the interest in the property that the City has shall become part of the Premises described in and leased under this Facility Lease. Conditional Agreement:Construction of New Facility.Both parties obligations under this Lease are expressly conditioned on the City being successful in Bulk Fue!Storage and Distribution Facility Lease Page 6 (City of Seldovia and Seldovia Fuel &Lube) securing a written commitment for the funding needed to remove the existing bulk fuel storage facility from the Premises and to construct a new bulk fuel storage facility on the Premises.The parties shall cooperate with another and use their best efforts to fulfill this condition.If the condition is not fulfilled by no later than December 31,2006,time being of the essence,then either party shall have the right at any time thereafter,for as long as the condition remains unfulfilled,to cancel this Facility Lease by giving written notice of cancellation to the other party.Upon cancellation,both parties shall be excused from all obligations under this Lease.If the condition is fulfilled by the deadline or before a cancellation notice is given,then this Facility Lease shall be effective and the City shall proceed,in accordance with the requirements and restrictions of the funding source the City has obtained,to remove the existing bulk fuel facility and construct a new facility in accordance with plans and specifications the funding source,the City and SF&L approve. BY SIGNING THIS BULK FUEL STORAGE AND DISTRIBUTION FACILITY LEASE,the City and SF&L agree to be bound by its provisions as set out above. Seldovia Fuel and Lube,Inc. Facility Leasee aA DATED:_5/Taw 06 By:Le.Bhipot rw)Its: City of Seldovia Facility Lessor DATED:_#(Gem Ob py:#C kS Lh Its:y/o Bulk Fuel Storage and Distribution Facility Lease Page 7 (City of Seldovia and Seldovia Fuel &Lube) _---wrKew--6/1/05(08:52)BY:rmoorePLOTTINGDATE:leaseagreementsurveymap.dwgSELDOVIA TOWNSITE 1 \ | US SURVEY . \ \1771 AND 2160 a \'LOTS 28 AND 29,BLOCK 10 USS 1771 "soy ,\LOTS 29 ANO 39,BLOCK 10 USS 2160 5 hai e|'-ae.OnaBLOCK10«”" a \°1s "7 \SCALE IM FEET LOT 28 \Af | hal! \alps 1 ig -----r7 2 | | || \\ a | a"\1 \{ | | \ '; | | t \i |ENGLISH \DRIVE \ |! \ ! ¥ -[ oS . L/AUTOCADDRAWNGNAME:LCMIF..NOt 126 E.Giet Ae.«Antheraga,Alaska 09603 -(007)273-1630 LEASE AGREEMENT EXHIBIT A LESSE:CITY OF SELDOVIA SELDOVIA,ALASKA LESSOR:SELDOVIA LUBE AND FUEL,INC. DATE:05/31/05 DRAWN BY:RRM SHEET: SCALE:AS SHOWN CHECKED BY:GMO W.O.No:05-752 GROUND LEASE This Ground Lease (hereinafter called "Ground Lease”or "Lease”)is entered intothis3/57 day of _/Auudey 2006,between Ground Lessor Seldovia Fuel andLube,Inc.,an Alaskan Corporation,hereinafter called SF&L,whose address is Post Office Box 93230,Anchorage,Alaska 99509,and Ground Lessee the City of Seldovia, hereinafter called the City,wnose address is Drawer B,Seldovia,Alaska 99683. The parties agree as follows: 1.The Premises.SF&L hereby leases to the City the following real property (the "Premises”)located in the Seldovia Recording District,State of Alaska: Portions of Lots 28 and 29,Block 10,U.S Survey 1771 and Lot 39,U.S.Survey 2160,as shown on the attached Exhibit A.The general location,as shown on Exhibit A,is subject to redescription upon survey,as necessary,to reflect as-built alignments of improvements. 2.TermofLease.The initial lease term shall be for a period of fifty (50)years. The lease term shall commence on the date that the City secures a written commitment for the funding needed to remove the existing bulk fuel storage facility from the Premises and to construct a new bulk fuel storage facility on the Premises.At the expiration of the initial term,the lease term shall be automatically renewed for an additional term of fifty (50)years,so long as the City or its representatives,successors,sublessees,and assigns is then continuing to use the Premises for bulk fuel storage and distribution in the City of Seldovia and complies with the terms and conditions stated herein. 3.Rent.The annual rent for the Premises for the first five (5)years of the initial term shall be TWELVE THOUSAND DOLLARS ($12,000),payable in the equal monthly installments.At the expiration of the first five (5)years of the initial term,and every five (5)years thereafter through the remainder of the initial term and any renewal term,the annual rent shall be adjusted to equal the greater of TWELVE THOUSAND DOLLARS ($12,000)or the fair market rent.For this purpose,the fair market rent shall be determined by negotiation and agreement between the parties,but if the parties are unable to agree on the fair market rent then it shall be determined by an MAI appraiser who is jointly selected by the parties.In determining the fair market rent of the Premises,the appraiser shall established the rent based on the value the Ground Lease (City of Seldovia and Seldovia Fuel &Lube)Page 1 Premises as unimproved,commercial property.The cost of the MAI appraiser shall be equally shared by the parties. Notwithstanding the foregoing,the parties may decide,by mutual agreement, not to make any adjustments in the annual rent for as long as SF&L,or its successor in interest,is both the fee owner of the Premises and the Facility Lessee of the bulk fuel storage and distribution facility located on the Premises.The decision to forego making one or more adjustments in the annual rent required under this Section 3,however,shall not operate as a waiver of the right to require future rent adjustments to be made.In any event,adjustments in the annual rent shall be made every five (5)years as provided for in this Section 3 if SF&L,or its successor to the fee interest in the property is not also the Facility Lessee. For as long as SF&L,or its successor,is both the fee owner of the Premises and the Facility Lessee of the bulk fuel storage and distribution facility located on the Premises,there will be an offset of the Facility Lease rent payable by SF&L (or the successor who is both the fee owner and Facility Lessee)to the City against the rent payable by the City to SF&L under this Ground Lease. In the event SF&L or its successor remains the fee owner of the Premises but ceases to be the Facility Lessee,and this Ground Lease remains in effect, then the City shall cause the successor Facility Lessee to pay,the monthly installments of rent to SF&L (or its successor)that are required under this Section 3.All of those monthly payments shall be made in advance on or before the first day of each calendar month,without any deduction or offset. 4.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. 5.Encumbrance of Premises.During the term of this Lease,the City may not assign this Lease or sublet the Premises,nor enter into any lease,easement, or other obligation affecting SF&L's title without the prior written approval of SF&L.Any such act,without prior written approval of the SF&L,is void against SF&L's title to the Premises.However,such approval is not required if the City assigns this Lease or sublets the Premises to another facility operator following termination of its Facility Lease with SF&L. 6.Successors Bound.All covenants and provisions in this Lease extend to and bind the legal representatives,successors,sublessees,and assigns of the parties. Ground Lease (City of Seldovia and Seldovia Fuel &Lube)Page 2 7.Access to Premises.SF&L or its authorized representatives reserve the right of ingress to and egress from the Premises as long as the purpose is related to developing and operating a bulk fuel storage site and related facilities. 8.Operation and Maintenance.So long as SF&L is the Facility Lessee of the bulk fuel storage and distribution facility located on the Premises,SF&L,at no cost to the City,shall obtain and pay for all utilities,services,and maintenance necessary for the use of the Premises.So long as SF&L is the Facility Lessee,SF&L shall 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.In the event SF&L ceases to be the Facility Lessee and this Ground Lease remains in effect,then the City shall cause the successor Facility Lessee to obtain and pay for,all utilities,services,and maintenance necessary for the use of the Premises.Also in that event,the City shall cause any successor Facility Lessee to take reasonable steps to protect the surface of the leased area and natural resources,and improvements thereon,and maintain the Premises in a reasonably net and clean condition. In discharging its obligations for maintenance under this Lease,SF&L shall be entitled to utilize the funds for operations and maintenance (O&M)and Renewal and Replacement (R&R)that are set aside for this purpose under the Secondary Operator Agreement between the City,SF&L and the Denali Commission.The City shall approve SF&L's use of the R&R funds so long as the use of the R&R funds is consistent with the requirements and restrictions of the Secondary Operator Agreement and the Business Operating Plan of the Seldovia Bulk Fuel Facility. 9.Surface Reservation.Unless otherwise stated in this Lease,the City may not sell or remove for use elsewhere any of the surface resources of the Premises. 10.Breach and Remedies. (a)The Premises are to be used only for purposes related to developing and operating the bulk fuel storage facility and other related activities that will serve the greater good of the community of Seldovia and for no other purpose without specific written authorization of SF&L.SF&L retains the right to terminate this Lease upon thirty (30)days written notice if the Premises are used for unauthorized purposes., (b)Time is of the essence in this Lease.If the City breaches any provision ofthisLease,other than a breach for improper use of the Premises which is governed by subparagraph (a)above,and the breach is not remedied within Ground Lease (City of Seldovia and Seldovia Fuel &Lube)Page 3 thirty (30)days after written notice of it has been served on the City,the City is subject to any legal action that SF&L considers appropriate,including the termination of this Lease. 11.No_waiver.The failure of SF&L 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. 12.Indemnification.For as long as SF&L or its successor is both the fee owner of the Premises and the Facility Lessee of the bulk fuel storage and distribution facility located on the Premises,SF&L or that successor assumes all responsibility,risk and liability for the operation;use of the Facility and Premises by SF&L,its successors,or its invitees;control;maintenance and repair of the Facility.In addition,for as long as SF&L or its successor is both the fee owner of the Premises and the Facility Lessee,SF&L or that successor shall defend,indemnify,and hold harmless the City from and against any and all demands,causes of action (whether in the nature of an action for damages,indemnity,contribution,government cost recovery or otherwise),fines,judgments,suits,claims,actions,losses,costs (including attorneys fees and litigation costs),expenses,charges,forfeitures,liens, liabilities,penalties and damages of any kind or nature whatsoever,including but not limited to,any accident or fire on the Premises,personal injury, wrongful death,environmental contamination,nuisance,or property damages,or any failure of SF&L to keep the Facility or the Premises in a safe and lawful condition consistent with applicable laws,regulations,ordinances, or orders;or any assignments,sublease or conveyance,attempted or successful,by SF&L which is contrary to the provisions of the Facility Lease, arising out of,in connection with,arising or resulting directly or indirectly from, or otherwise incident to the Facility.The City may tender any such cause of action,lawsuit,or other proceeding brought against the City to SF&L and such tender shall immediately be accepted by SF&L.Any attorney's fees or costs incurred by the City prior to such tender of defense shall be the complete and sole responsibility,without limitation,of SF&L.The obligations under all of the indemnification provisions of this Lease shall survive beyond the termination or expiration of the term of this Ground Lease. If SF&L or its successor is fee owner of the Premises but ceases to be the Facility Lessee,and this Ground Lease remains in effect,then the City shall cause the successor Facility Lessee to assume,during the time of the successor's operation of the Facility,all responsibility,risk and liability for the operation and use of the Facility and Premises and the control,maintenance and repair of the Facility.In addition,if SF&L or its successor is the fee owner of the Premises but ceases to be the Facility Lessee,the City shall Ground Lease (City of Seldovia and Seldovia Fuel &Lube)Page 4 cause the successor Facility Lessee,during the time of the successor's operation of the Facility,to defend,indemnify,and hold harmless SF&L (and its successor who is the fee owner of the Premises)from and against any and all demands,causes of action (whether in the nature of an action for damages,indemnity,contribution,government cost recovery or otherwise), fines,judgments,suits,claims,actions,losses,costs (including attorneys fees and litigation costs),expenses,charges,forfeitures,liens,liabilities,penalties and damages of any kind or nature whatsoever,including but not limited to, any accident or fire on the Premises,personal injury,wrongful death, environmental contamination,nuisance,or property damages,or any failure to keep the Facility or the Premises in a safe and lawful condition consistent with applicable laws,regulations,ordinances,or orders;or any assignments, sublease or conveyance,attempted or successful,which is contrary to the provisions of this Facility Lease,arising out of,in connection with,arising or resulting directly or indirectly from,or otherwise incident to the Facility. SF&L and its successor,for as long as it is both the fee owner of the Premises and the Facility Lessee,shall keep all goods,materials,furniture, fixtures,equipment,machinery,and other property on the Premises at its sole risk,and will hold the City harmless from any claim of loss or damage to them by any cause.If SF&L or its successor remains the fee owner of the Premises but ceases to be the Facility Lessee,then the successor Facility Lessee shall keep all goods,materials,furniture,fixtures,equipment, machinery,and other property on the Premises at its sole risk,and will hold SF&L and its successor who is the fee owner of the Premises harmless from any claim of loss or damage to them by any cause. 13.Notice of Claim.The parties agree to immediately notify each other of any claim,demand,or lawsuit arising out of or affecting the City'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. 14.Laws and Taxes.At no expense to the City,SF&L,as Facility Lessee,will conduct all activities authorized by this Lease in compliance with all Federal, State,and local laws,ordinances,rules and regulations now or hereafter in force,which apply to the activities authorized herein or to the use,care, operation,maintenance,and protection of the facilities,including but not limited to matters of health,safety,sanitation,and pollution.The acquisition of any necessary licenses or permits and payment of any taxes and special assessments accruing against the premises during this lease term will be the responsibility of SF&L or its sublessees,as long as SF&L is the Facility Lessee,and not that of the City. Ground Lease (City of Seldovia and Seldovia Fue!&Lube)Page 5 15. 16. 17. 18. 19. 20. 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. Seldovia Fuel and Lube,Inc Post Office Box 93230 Anchorage,Alaska 99509 City of Seldovia Drawer B Seldovia,Alaska 99683. Warranty Concerning Title and Conditions.SF&L specifically warrants,both expressed or implied,the title and condition of the Premises,including survey, access and suitability for use such as a bulk fuel storage site,including those uses authorized by this Lease.The City leases the Premises subject to any and all of the covenants,terms,and conditions affecting SF&L's title to the premises. 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. 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. Headings.The heading of the numbered paragraphs in this lease shall not be considered in construing any provision of this lease. Additional Land.SF&L may have the opportunity to acquire an additional parcel of land located adjacent to the Premises.The additional parcel is described as Lot 27A,Block 10,U.S.Survey 1771,according to Plat No.81- 10,Waterfront Subdivision No.5,records of the Seldovia Recording District,Third Judicial District,State of Alaska. Ground Lease (City of Seldovia and Seldovia Fuel &Lube)Page 6 If SF&L is successful in acquiring Lot 27A,then it shall become part of the Premises described in and leased under this Lease,and in that event,Lot 27A shail thereafter be considered in determining rental adjustments under Section 3 above. Both SF&L and the City shall also cooperate with one another and work together towards SF&L acquiring title to,or at least an easement in and across,the northern 15 feet of Lot 27,Block 10,U.S.Survey 1771,Seldovia, Alaska.If an easement is obtained,the easement shall be for the installation, repair,replacement and use of petroleum and petroleum product pipelines.In the event SF&L acquires title to or an easement in and across the northern 15 feet of Lot 27,the interest in the property that SF&L holds shall become part of the Premises described in and leased under this Lease and shall thereafter be considered in determining rental adjustments under Section 3 above. 21.Conditional Agreement:Construction of New Facility.Both parties obligations under this Lease are expressly conditioned on the City being successful in securing a written commitment for the funding needed to remove the existing bulk fuel storage facility from the Premises and to construct a new bulk fuel storage facility on the Premises.The parties shall cooperate with one another and use their best efforts to fulfill this condition.If the condition is not fulfilled by no later than December 31,2006,time being of the essence,then either party shall have the right at any time thereafter,for as long as the condition remains unfulfilled,to cancel this Ground Lease by giving written notice of cancellation to the other party.Upon cancellation,both parties shall be excused from all obligations under this Lease.If the condition is fulfilled by the deadline or before a cancellation notice is given,then this Lease shall be effective and the City shall proceed,in accordance with the requirements and restrictions of the funding source the City has obtained,to remove the existing bulk fuel facility and construct a new facility in accordance with plans and specifications the funding source,the City and SF&L approve. BY SIGNING THIS GROUND LEASE,SF&L and the City agree to be bound by its provision as set out above. Seldovia Fuel and Lube,Inc. Ground Lessor DATED:3!Jaw OG By:L).OLA.Apt VeIts:iS Vite! Ground Lease (City of Seldovia and Seldovia Fuel &Lube)Page 7 6/1/05(08:52)BY:rmoorePLOTTINGDATE:leoseagreementsurveymap.dwgAUTOCADDRAWINGNAME:|SELDOVIA TOWNSITE US SURVEY |1771 AND 2160 LOTS 28 AND 29,BLOCK 10 USS 1771 LOTS 29 AND 39,BLOCK 10 USS 2160 .34SAGsagre LOT 29 BLOCK 10 ENGLISH DRIVE QULCHIF..ie 120 E Stat Ave.-Ancherage,Aissks 09603 -(007)273-1830 LEASE AGREEMENT EXHIBIT A LESSOR:SELDOVIA LUBE AND FUEL,INC. LESSE:CITY OF SELDOVIA SELDOVIA,ALASKA DATE:05/31/05 DRAWN BY:RRM SHEET: SCALE:AS SHOWN CHECKED BY:GMO W.O.No:05-752 quay UUs 2uuus baby bts oe Aion PAA WV,JU 4UN JUTT 1,uu State of Alaska Alaska Energy Authority J/=ENERGY AUTHORITY forth herein. Grant Agreement Grant Agreement Number Amount of Funds 2195243 $1,000,000 Project Code(s)Encumbrance Number/AR Project Title340220PBO00194SeldoviaBulk Fuel Upgrade auests SBE.'caus:a Name Name City of Seldovia Ron Brown StreeUPO Box Title Drawer B Project Manager City/State/Zip Street/PO Box Seldovia,AK 99663 813 W.Northern Lights Blvd Contact Person City/State/Zip Richard Wyland,Mayor Anchorage,AK 99503 Phone Fax Phone Fax 807-234-7643 907-234-7430 907-269-4698 907-269-3044 AGREEMENT The Alaska Energy Authority (hereinafter 'Authority')and City of Seldovia (hereinafter 'Grantee')agree as set Section |,Upon receiving notification from the funding source(s)identified in Appendix 2 of the availability of funds,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 the attached scope of work.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 $1,000,000,unless the grant amount is amended as provided herein. Section II.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. Saction [l.Performance under this agreement begins upon signature by the Authority's Executive Director and shall be completed no later than December 31,2007. 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 Articia C:General Provisions Appendix 3:In-Kind Contributions Appendix 4:Employer Identification Number App. AMENDMENTS:Any fully executed amendments Appendix 5:EIN Power of Attorney to this Agreament Appendix 6:Tax Information Authorization A A 22/Signatur fy T= Printed Namie and Title Richard Wyland,Mayor Printed Name and Title Ronald W.Miller,Executive Director Date Date 144.0 RESOLUTION 06-24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SELDOVIA, ALASKA EXPRESSING SUPPORT FOR THE ALASKA ENERGY AUTHORITY GRANT. WHEREAS,the current fuel tank farm and associated pipelines are in desperate need of replacement;and WHEREAS,the City of Seldovia in conjunction with Seldovia Fuel &Lube have pursued replacement funding through the Alaska Energy Authority,a public corporation of the State of Alaska in addition to the Denali Commission;and WHEREAS,the City of Seldovia is the designated Grantee;and WHEREAS,the Alaska Energy Authority has awarded this project to the Grantee in two phases;and WHEREAS,the first phase will be to replace all fuel distribution lines;and WHEREAS,the second phase will be to replace the fuel tanks; NOW THEREFORE BE IT RESOLVED the City Council of the City of Seldovia by this resolution hereby whole heartily accepts the grant provided by the Alaska Energy Authority and supports the effort to replace the grossly deteriorated fuel lines and tanks. PASSED AND APPROVED by a duly constituted quorum of the City Council of the City of Seldovia,Alaska,on this 14th day of June,2006. APPROVED:ELbhAlMl ae"Richard Wyland,Mayor ATTEST: Ronda Haynes,Clerk 7% First National Bank Alaska Renewal and Replacement Account Escrow Managed "First Investment”Account Agreement Dated:Account No. The parties to this deposit account agreement are »TIN No. (hereinafter "depositor”)and First National Bank Alaska (hereinafter "bank”).The agreement of the parties is as follows: 1.Money paid to bank for credit to the above account and interest earned thereon and credited to the above account shall constitute the "Renewal and Replacement Account”of depositor specified under the terms of depositor's agreement with the Denali Commission intended for use by depositor for replacement and repair of capital expenditure items that are part of depositor's Energy Facility as contemplated under that agreement.Depositor hereby represents and warrants,which representations and warranties shall be continuing and shall be deemed to be reaffirmed upon each instruction given by depositor,that:(a)depositor is duly organized and existing under the laws of the jurisdiction of its organization,with full power to carry on its business as now conducted,to enter into this agreement and to perform its obligations hereunder;(b)this agreement has been duly authorized,executed and delivered by depositor,constitutes a valid and legally binding obligation of depositor,enforceable in accordance with its terms,and not statute,regulation,rule,order,judgment or contract binding on depositor prohibits depositor's execution or performance of this agreement;(c)the Taxpayer Identification Number shown above (TIN)is depositor's correct taxpayer identification number;and (d)depositor is not subject to backup withholding because taxpayer is an exempt recipient under the Internal Revenue Service Regulations. 2.Under the terms of its agreement with Denali Commission,depositor is obliged to pay to bank the sum of $and a like sum,not later than the last day of each and every month thereafter until the expiration of this agreement,equal to 1/12 of the annual deposit required in the respective year,as set forth in Attachment D entitled "40 Year Renewal and Replacement Cashflow”and any revisions thereof to be administered by FNBA in accordance with the terms hereof.Bank will furnish to depositor payment coupons that may be submitted by depositor with a payment to bank for credit to the above account.Bank will give only provisional credit until collection is final for any item,other than cash,bank accepts from depositor (including items drawn "on us”).Actual credit for payments of,or payable in,foreign currency will be at the exchange rate in effect on final collection in U.S.dollars. Bank is not responsible for transactions by mail or at an outside depository until it actually record them at it Escrow Department.Bank will treat and record all transaction received after bank's "daily cutoff time”on a business day bank is open,or received on a day bank's escrow department is not open for business on the next following day bank's Escrow Department is open. 3.Bank shall credit to the above account interest earned on the account balance in accordance with the provisions of bank's "First Investment Account”agreement,as amended by bank from time to time. 4.Bank shall disburse credit to the account to the order of depositor when it receives a resolution from depositor in the form of Attachment A hereto.Any two officers of depositor,acting together,may execute a resolution in the form of Attachment A to withdraw or transfer all or any part of the above account balance at any time.Bank may require not less than 7 days after receiving such a resolution before a withdrawal.Depositor authorizes any officer of depositor to endorse any item payable to depositor or depositor's order for deposit to the above account or any other transaction with bank.Bank may require the governing body of the legal entity opening this account to give bank a separate authorization telling bank who is authorized to act on its behalf.Bank will not honor the authorization until bank actually receives at its Escrow Department written notice of a change from the governing body of depositor. Seldovia Fuel and Lube,Inc. R&R Fund Account -Sample Documents 1 5.Bank's current fee schedule for its services hereunder is attachment B hereto.Bank's set-up fee and first year's annual fee have been paid to bank as of the date of acceptance of this account by bank specified below. Future annual fees shall be due and payable by depositor to bank on the same day each consecutive year of the term hereof.An annual fee is due and earned when an account year begins.The first account year begins on the effective date hereof.Any fee due and payable to bank hereunder may be charged against the above account when due.Bank may amend Exhibit B hereto from time to time on thirty days prior written notice to depositor. 6.Qn the last calendar day of each month of the term hereof,bank shall furnish to depositor and Denali Commission a written statement of the above account specifying the account balance,and any payment(s) received and interest earned credited to the account,as well as all disbursements of credit to the account to the order of depositor and fees charged to the account by bank,since the last statement date.Until further instructed in writing statements shall be furnished to depositor and Denali Commission by mailing the same in a first class postage prepaid envelope addressed as follows: To Depositor:To Denali Commission Depositor must examine its statement of account with "reasonable promptness.”If depositor discovers (or reasonably should have discovered)any unauthorized signatures or alterations,depositor must promptly notify bank of the relevant facts.As between depositor and bank,if depositor fails to do either of these duties,depositor will either share the loss with bank,or bear the loss entirely itself (depending on whether bank used ordinary care and,if not, whether bank substantially contributed to the loss).The loss could be not only with respect to items on the statement but other items with unauthorized signatures or alterations by the same wrongdoer.Depositor agrees that the time it has to examine its statement and report to bank will depend on the circumstances,but will not,in any circumstance exceed a total of 30 days from when the statement is first sent or made available to depositor.Depositor further agrees that if depositor fails to report any unauthorized signatures,alterations,forgeries or any other errors in its account within 30 days of when bank first sends or makes the statement available,depositor cannot assert a claim against bank on any items in that statement,and as between depositor and bank the loss will be entirely depositor's. 7.Bank's duties are determined from these instructions alone and without reference to other agreements,including,without limitation,any agreement between depositor and Denali Commission,and no covenant or obligation shall be implied against bank in connection with this agreement. 8.The effective date hereof is the date of acceptance of the account as specified by bank below. Money received by bank prior to acceptance is deemed to be received on the date of acceptance. 9.Bank may assign its duties hereunder (and thereby be released from its duties)to any corporation regularly engaged in the business of providing,in Alaska,the service bank is required to provide hereunder. 10.Bank may terminate the above account upon 30 days written notice to depositor and Denali Commission.After such termination bank will pay any account balance to the order of depositor. 11.Bank is deemed to have notice only when notice is actually received at its Escrow Department office, which does not include any branch office of bank. 12.A claim against bank is unenforceable unless an action is commenced within 90 days after termination of this agreement. 13.Bank shall not be liable for any costs,expenses,damages,liabilities or claims including attorneys' and Accountants'fees (collectively,"Losses”)incurred by or asserted against depositor except those Losses arisingoutofthenegligenceorwillfulmisconductofbank.In no event shall bank be liable to depositor or any third party for special indirect or consequential damages,or lost profits or loss of business,arising in connection with this agreement. Seldovia Fuel and Lube,Inc. R&R Fund Account -Sample Documents 2 14.Bank has no duty to look to the propriety or application of any payment or distribution made to depositor,or to the order of depositor,and depositor agrees to indemnify bank and hold bank harmless from and against any and all Losses sustained or incurred by or asserted against bank by reason of or as a result of any action or inaction,or arising out of bank's performance hereunder,including reasonable fees and expenses of counsel incurred by bank in a successful defense of claims by depositor;provided,that depositor shall not indemnify bank for those Losses arising out of bank's negligence or willful misconduct.This indemnity shall be a continuing obligation of depositor,its successors and assigns,notwithstanding the termination of this agreement. 15.Bank shall have no duty or responsibility to inquire into,make recommendations,supervise,or determine the suitability of any transactions affecting the above account. 16.Bank shall be entitled to rely upon any resolution in the form of Attachment A actually received by bank and reasonably believed by bank to be duly authorized and delivered. 17.Bank is authorized to supply to any third party any information regarding the above account which is required by any law,regulation,rule or court order (including without limitation any subpoena)now or hereafter in effect. 18.Bank shall not be responsible for preparing or filing any tax report or return nor for the payment of any tax assessed against,or with respect to,any of the assets of the above account or any transaction for the account of depositor. 19.Each and every right granted to either party hereunder or under any other document delivered hereunder or in connection herewith,or allowed it by law or equity,shall be cumulative and may be exercised from time to time.No failure on the part of either party to exercise,and no delay in exercising,any right will operate as a waiver thereof,nor will any single or partial exercise of any other right. 20.In case any provision in or obligation under this agreement shall be invalid,illegal or unenforceable in any jurisdiction,the validity,legality and enforceability of the remaining provisions shall not be amended or modified in any manner except by a written agreement executed by both parties.This agreement shall extend to and shall be binding upon the parties hereto,and their respective successors and assigns. 21.This agreement shall be construed in accordance with the substantive laws of the State of Alaska, without regard to conflicts of laws principles thereof.Depositor and bank hereby consent to the jurisdiction of a state or federal court situated in the Third Judicial District,State of Alaska,in connection with any dispute arising hereunder.Depositor hereby irrevocable waives,to the fullest extent permitted by applicable law,any objection which it may now or hereafter have to the laying of venue of any such proceeding brought in such a court and any claim that such proceeding brought in such a court has been brought in an inconvenient forum.Depositor and bank each hereby irrevocably waives any and all rights to trial by jury in any legal proceeding arising out of or relating to this agreement.To the extent that in any jurisdiction depositor may hereafter be entitled to claim,for itself or its assets, immunity from suit,execution,attachment (before or after judgment)or other legal process,depositor irrevocably agrees not to claim,and it hereby waives,such immunity. Seldovia Fuel and Lube,Inc. R&R Fund Account -Sample Documents 3 22.This agreement and the attachments hereto constitute the entire agreement of the parties.Bank has not made representations or assurances to depositor not stated herein. Date: Depositor By: By: First National Bank Alaska accepted this account on By: Seldovia Fuel and Lube,Inc. R&R Fund Account -Sample Documents Wells Fargo Renewal and Replacement Account Escrow Managed "Regular Savings”Account Agreement ,2005 Account No. 1.The parties to this agreement are (Owner),and Wells Fargo.Owner hereby appoints Wells Fargo,acting through its Trust Department,as the Invested Escrow Agent for the investment and disbursement of the funds in accordance with this agreement. Wells Fargo agrees to serve as Invested Escrow Agent,pursuant to the terms set forth in this agreement. 2.Monies deposited by the Owner with Wells Fargo shall be for the purpose of establishing an R&R Account,which shall be used for replacement and repair of capital expenditure items with regard to the Owner's Energy Facility,which is partially or fully funded with monies from the Denali Commission. 3.Onor before ,2005,Owner shall deposit the sum of $ and a like sum,not later than the last day of each and every month thereafter,until the expiration of this agreement,equal to 1/12 of the annual deposit required in the respective year,as set forth in Attachment D entitled "40 Year Renewal and Replacement Cashflow” and any revisions thereof to be administered in accordance with the terms of this Agreement. 4.The funds shall be deposited into an interest bearing "Regular Savings”account. Disbursements from this account will be restricted and can only be approved by Wells Fargo's Escrow Department pursuant to this agreement. 5.Upon written instruction from Owner,in the form of a Resolution identical to Attachment A, signed by two parties,Wells Fargo's Escrow Department shall disburse funds to the Owner. 6.The interest earned on the account shall accrue for the benefit of the Owner. 7.Wells Fargo will assess the fees and charges set forth in the fee schedule which is attached as Attachment B. 8.Wells Fargo will compile a "Monthly Report”,at the end of each calendar month,on all Renewal and Replacement Accounts that are established under similar agreement.This report will show all account activity by each Owner including;deposit amounts,date of deposits,disbursements,and date of disbursements.Monthly reports shall be sent to: Denali Commission Attn:Chief of Staff 510 L Street Suite 410 Anchorage,AK 99501 Seldovia Fuel and Lube,Inc. R&R Fund Account -Sample Documents 5 9.Wells Fargo shall have no duties not expressly provided for herein,and will not incur liability if it substantially complies with the instructions contemplated herein,using reasonable care in executing transactions,and in safekeeping the funds. Wells Fargo By:Date Its: (Owner) Date By: Its: Taxpayer ID # Address: Seldovia Fuel and Lube,Inc. R&R Fund Account -Sample Documents 6 PLEASE COMPLETE THIS AREA TO INSURE CORRECT ROUTING ORIGINATED BY ESCROW AGREEMENT ACCEPTED COPY Acct.#RETURN TO TO:WELLS FARGO BANK ALASKA (WF), its successors and assigns Date: i hand you herewith the following described item(s): Beginning Balance $Payments of $Maturity Date o Monthly Qa Quarterly o Semi-Annually a Annually First payment due:Interest start date at Payments made in excess of the regular scheduled amount oO wit OC will not satisfy future payments due. Excess funds a will a will not be applied to prior gage/debt.interest ion based on Oo 360 days Qo 365days. Attached:O Exhibit A Special Payment Provisions QO Exhibit B Multiple Disbursements QO Exhibit C Partial Releases O Exhibit D Reserves Additional Instructions: You are authorized to charge my WF Account #Os forthe scheduled escrow payments,__sballoon payments. Payer Signature Remit payments to payee: Address Or Credit Payments to:a Cashier's Check Oo E.F.T.(Enclose voided check) Oo Checking O Savings:WF Acct.No.(Disbursement fees paid by payee per payment/transaction) Upon execution of this agreement the parties herein agree to pay fees in accordance with the current fee schedule,fees are collected per paymenttransaction.Set up fee:O spaid ©collect from first payment.Fees Paid by:Ol Payee QO Payer O]_sDivide Equally (Fees Subject to Change Without Notice)O We request late payment monitoring (additional fee) Untess otherwise instructed.all service charges and fees will be charged to Payee WF is hereby authorized to deliver,by regi mail or the i and/or herein i to any one of the undersigned Payees for and on behalf of all Payees at any address given below or such other address as any one of the Payees shall i in writing upon Payee's request or at WF's option under the following conditions: At Payee's request when: (a)Any payment is delinquent 30 days or more;or (b)Payee furnishes WF evidence that Payer has received at least 20 days'written notice of Payee's intent to terminate,delivered by registered or certified mail. At WF's option when: (a)One payment has been delinquent for three months and WF has provided 10 days'prior notice to Payee and Payer. (b)Upon 30 days'prior written notice by WF to Payee and Payer. We the undersigned have read this Agreement,including the Terms and Conditions set forth on the reverse side,and understand the contents thereof and acknowledge that the terms of the Agreement are satisfactory toeachofus,Upon receipt by the Bank of the final payment,the Bank will deem the contract satisfied and the and/or will be to the Payer.Under penalty of pegury,|certify that the Social Security or Employer |.0.Number provided below is true,correct and complete,and i am not subject to backup withholding. Date Date PLEASE PRINT NAME SOCIAL SECURITY NO.OR EMPLOYEE LD.NO.PLEASE PRINT NAME SOCIAL SECURITY NO.OR EMPLOYEE I.D.NO. PAYEE (SELLER)SIGNATURE PAYER (BUYER)SIGNATURE ADDRESS ADDRESS PLEASE PRINT NAME SOGIAL SECURITY NO.OR EMPLOYEE 1.0.NO.PLEASE PRINT NAME SOCIAL SECURITY NO.OR EMPLOYEE 1D.NO. PAYEE (SELLER)SIGNATURE PAYER (BUYER)SIGNATURE ADDRESS ADDRESS Received above item(s)subject to conditions herein mentioned. Wells Fargo Bank Ajaska. By PLEASE COMPLETE THIS AREA TO INSURE CORRECT ROUTING Seldovia Fuel and Lube,Inc. R&R Fund Account -Sample Documents 7 WELLS FARGO BANK ALASKA ESCROW AGREEMENT Terms and Conditions Payments.Payer shall pay all sums due Payee from time to time in the manner set forth herein to WF Escrow Service Department,at P.O.Box 100600,Anchorage,Alaska99510-0600 or such other address as may be directed by WF in the future.WF shall accept all payments tendered on this transaction,regardless of whether they are partial,full,or additional payments or whether they are tendered before or after the payment due date.WF shall have no duty or obtigation to refuse any payment nor shail it beresponsiblefordeterminingthesufficiencyofanysuchpaymentunlessotherwiseagreedinwritingbyWF.WF will credit the account for payments as received and willdisbursefundsthefollowingbusinessday,but shall not be required to disburse to Payee prior to the time WF determines the payment is from collected funds.If any checkreceivedbyWFisdishonoreduponpresentmentforanyreason,WF may notify Payee of such dishonor and the amount of funds which WF has disbursed to Payee or othernamedPayeesinrelianceuponPayer's dishonored payment.Upon receipt of such notice,Payee shall promptly remit to WF the amount of such funds so disbursed by WFtogetherwithWF's then customary charge for the handling of returned checks,which charge shall be stated in the notice sent to Payee.WF is hereby given authority to reversethecredittoanaccounttowhichithasdisbursedfundsand/or to deduct from Payee's account the amount of the charge plus the amount of funds it has disbursed in relianceuponsaiddishonoredpayment.If two (2)checks are dishonored during any calendar year for any reason,WF may without notice terminate this account,cancel this AgreementandreturnthedocumentstoPayee. Interest Computation.Interest will be computed on a 365-day factor,except for leap year.Payments will be applied first to WF's fees,then to interest,the remainder,if any,toprincipal.The parties shall have 30 days in which to dispute the application of payments as computed by WF.WF shall be notified of any such dispute in writing within 30 days.\f WF does not receive such notice within 30 days,all computations made by WF shall be conclusively deemed correct.Nothing in this paragraph shall modify or change any oftheagreementsbetween,or rights and remedies of Payer and Payee,as between the two.Any modification to this method of computation must be agreed to in writing by WF. Service Charge.WF may deduct its fees and service charges from payments received or credited to Payee's account.if fees or service charges are not received within 30 days of their due date,WF is authorized to terminate this Agreement without notice and deliver the documents to Payee.The expenses of closing of this collection may bedeductedfromtheproceedsofthefinalpayment.Service charges and fees are set forth in WF's published rates,which are subject to change from time to time without notice. Disputes.In the event of any dispute or misunderstanding,WF shall have the option to close the escrow and deliver instruments or documents to any one of the Payees or on behalf of the Payees upon 30 days prior written notice by WF to Payee and Payer or to hold undisbursed funds,or to require settlement by a neutral party,such as an arbitratorfordetermination,or to pursue any legal remedies which may be available to it,including the right to deposit the subject matter hereof in interpleader in the appropriate court oftheThirdJudicialDistrict,Anchorage,Alaska,and upon so doing to be absolved from all further obligations or liability hereunder.Payee and Payer jointly and severally agree topaytoWFallcostsandexpensesincurredbyWF,including actual attorney's fees,in any interpleader action. Limitation of WF's Responsibility.WF shall be responsible only for the exercise of ordinary care in performing the duties set forth in this Agreement.WF shall be relieved from any further or additional liability beyond the performance of the duties expressly set forth herein.The parties hereto jointly and severally agree to defend,indemnify,and hold WF,its officers,employees,shareholders,attorneys,directors,agents and representatives harmless from and against,and to pay on demand ail claims,costs,damages, judgments,attorney's fees,expenses,obligations and liabilities of every kind and nature suffered or incurred in connection with this Agreement except any liability founded uponWF's failure to exercise ordinary care in performing the duties contained herein.Payee and Payer agree that WF will not be responsible for any of the following. (a)To notify any party of nonpayment or declaration of default,condemnation or the condition of any property; (b)To construe,enforce or determine the performance or nonperformance of any terms of the documents underlying the transaction; {c)To determine if any agreement or document is in compliance with local,state,or federal laws and regulations; {d)To determine the authenticity,validity,enforceability or sufficiency of any document deposited,or for the accuracy of description of any such document,the description having been furnished by the parties; {e)To give notice of any change of ownership or to enforce any due-on-sale or similar provisions; (f)To determine if any payment schedule will amortize any obligation;(g)|To determine the sufficiency or verification of the account balances on any other previously or subsequently-recorded encumbrance or security interest against theproperty,including security interests which this collection agreement may,in whole or in part,satisfy;further,WF does not assume any responsibility for determining if any payments being made by this escrow to satisfy,in whole or in part,any other obligation will,in fact,amortize the obligation receiving the payments hereunder at or before the satisfaction of this escrow; (hn)To pay or notify any party regarding recording of documents,perfection of security interests,or nonpayment of insurance premiums,taxes or other assessments or encumbrances; (i)To assess,bill,collect or pay any late charges due under the terms of the documents deposited herewith unless otherwise agreed in writing by WF;Gj)For the determination of balances to third parties or overpayments to them where instructed to credit payments to persons other than the Payee; (k)To verify or determine whether the assignment of the payments under this escrow for security purposes or otherwise does not create a default in the terms of the documents underlying this transaction; (I)To account or give credit for any payment made or received outside this collection; {m)To vote or exercise any of the rights of ownership of corporate stock or similar items deposited herewith;or{n)|To perform any act not expressly set forth in this Agreement even though contained in any documents deposited herewith. The liability of WF for negligent performance,or negligent non-performance,shail be limited to the amount of charges or fees charged to the parties hereto,under this Agreement,for the month in which any damages are incurred.Under no circumstances will WF be liable for any special,consequential,or punitive damages.Notwithstanding any other provision of this Agreement,WF wili not be liable for any damage,loss,liability,or delay caused,directly or indirectly,in whole or in part,by those items set forth above. Lien-Offset.WF shall have a first and paramount lien on all documents,monies and things deposited in connection with this Agreement and the right of offset against any WF account of any party hereto to secure payment of ail costs,expenses,obligations and fees due WF. Agreement Controls.In the event of conflict or omission between the documents deposited in connection with this Agreement,this Agreement shall control as to WF.WF shall not be responsible for determining the existence of any such conflict or omission. Authority to Release Information.If any party to this Agreement sells or contracts to sell the property described in the documents deposited herewith,or applies for financing secured by the property,WEF is authorized to furnish to the lender,closing agent,or any other interested party,any information concerning the status of this account,including the payment records and copies of the documents deposited. Authority to Transfer.WF is authorized to assign,delegate and/or transfer all its duties and the documents held hereunder to another institution upon ten (10)days'prior written notice to Payer and Payee.Upon such transfer,WF shall be relieved of all further duties and liabilities under or related to this Agreement. Notice.Any notice to WF required or permitted hereunder shall be sent certified or registered mail to Wells Fargo Bank Alaska Escrow Service Department,P.O.Box 100600, Anchorage,Alaska 99510-0600,or such other address as may be designated by WF.Notice shall be effective only when received in the Escrow Service Department. General.This Agreement may be modified or amended only by written instructions accepted by WF and payment of the applicable fee.This Agreement is intended for the sole benefit of the parties hereto,and shall not be construed to create any rights in third parties.This Agreement shail be governed and interpreted in accordance with the laws of the State of Alaska,and any litigation arising out of or relating to this Agreement to which WF is a party shall be commenced and maintained only in the appropriate court of the Alaska State Court System,Third Judicial District,at Anchorage. Seldovia Fuel and Lube,Inc.8 R&R Fund Account -Sample Documents ATTACHMENT A Resolution for Disbursement of Renewal and Replacement Funds for Energy Facility An Identical Resolution to This Must be Passed and Signed by the Community To Withdraw Funds from The R&R Account Community of Resolution No. WHEREAS,the Community of has established an escrow managed interest bearing renewal and replacement account with the financial institution of for the purpose of renewal and replacement expenditures related to the facility,which was partially or fully funded by the Denali Commission, and WHEREAS,pursuant to the communities approved business plan for facility the community has agreed that funds deposited into this renewal and replacement account will only be used for the renewal and replacement of facility,and WHEREAS,eligible withdrawal of funds from this account must be for the labor,transportation,equipment rental, professional services,materials,equipment and other costs for the replacement and repair of assets essential to the on-going sustainability of the facility.For energy facilities this is including but not limited to:Access Roads,Buildings,Poles,Transformers,Generators,Radiators,Electrical Systems,Wires,Meter Systems,Pumps,Fencing,Fuel Storage Tanks,Fuel Distribution Systems,Walkways,Access Roads Dispensers, Fill Stations,Tank Liners,Fencing,Pad,Valves,Pipelines,Piling,Decks,Manwalks,Headers,Ground Maintenance and Containment Systems THEREFORE,the Community of hereby attests that the funds being requested from the escrow managed interest bearing renewal and replacement account with the financial institution of is for renewal and replacement expenses related to the facility as outlined above and is not being used for any other purpose,and THEREFORE,the Community of requests the total sum of $for the following detailed expenses Signed by two people representing the community, Seldovia Fuel and Lube,Inc.9 R&R Fund Account -Sample Documents ATTACHMENT B How to Establish a Renewal and Replacement Account for Denali Commission Funded Public Infrastructure Background Under the guidelines of Denali Commission funding a community is required to have a business plan that outlines how the Denali Commission funded project will be operated and maintained.One of the conditions required in the business plan is a community established Renewal and Replacement (R&R)Account.An R&R account will provide a mechanism for the community to save money for the inevitable renewal and replacement costs associated with the facility. General Guidelines of a Renewal and Replacement Account e Allows community to make monthly deposits e Must be an interest bearing account e Only allows withdrawal of funds for Renewal and Replacement costs of the facility. o Requires a Resolution from the community certifying funds are being used for Renewal and Replacement expenses related to the facility that was partially or wholly funded by the Denali Commission. e Account must allow for Denali Commission and other Auditing agencies to monitor deposit and withdrawal activity (Monthly Reports on account activity must be sent to Denali Commission) Financial Institutions The Denali Commission has negotiated terms with two Financial Institutions that will allow for the unique guidelines of these R&R accounts.Other institutions that will allow accounts that meet the guidelines above are acceptable. First National Bank Wells Fargo Contact Person Lorraine O'Neal Jackie Zuspan Sr.Escrow Officer Escrow Manager First National Bank Operations Wells Fargo Center 301 West Northern Lights Blvd. 1751 Gambell St.Anchorage,AK 99503 Anchorage,AK 99501 Phone:(907)265-2162 Phone:(907)777-3424 Fax:(907)265-2170 Fax:(907)777-3446 Type of Account Escrow Managed "First Escrow Managed "Regular Investment”Account Savings”Account Set-Up Fee $30.00 $35.00 Annual/Monthly Fee $50.00 Annual Fee and $5 $3 Monthly Fee until account monthly fee until account balance |balance is above $300 is above $2,500 Disbursement Fee $25.00 each time a community $5.00 each time (for a Money requests funds (through approved |Order)when a community resolution)requests funds (through approved resolution) Seldovia Fuel and Lube,Inc. R&R Fund Account -Sample Documents 10 Check Writing None None Reports Monthly Report to Denali Commission on Deposit and Withdrawal activity (.50 Charge) Monthly Report to Denali Commission on Deposit and Withdrawal activity (No Charge) Requirement for Withdrawal of Funds Approved Resolution Identical to Attached Template must be submitted to Escrow Department Approved Resolution Identical to Attached Template must be submitted to Escrow Department Interest First Investment Account Tiered depending on balance of account (based on current Treasury Bill).Below are 1/02/02 rates: $0-$2,499 557% $2,500-$4,999 .778% $5,000-$24,999 825% $25,000-$49,999 .846% $50,000-$99,999 .887% $100,000+917% Based on the Regular Savings account: 5/20/02 rate =1% To establish an account: 1.Contact one of the representatives above 2.Tell them you need to establish a "Denali Commission Renewal and Replacement Account” 3.Sign the Account Agreement for the institution. 4.Pay set-up fee and fill out other general information to establish account Sample documents attached include: o Business plan language that requires R&R accounts o Account agreements (between institution and community)templates o Example of the resolution that is required to withdraw funds from a R&R account Seldovia Fuel and Lube,Inc. R&R Fund Account -Sample Documents li ATTACHMENT C EXAMPLE OF LANGUAGE IN ALL DENAI COMMISSION FUNDED ENERGY FACILTIES Financial Responsibilities There are two cost categories that will be incurred in the ongoing operation and upkeep of the Facility - O&M and R&R. The Primary Operator will incur a number of expenses relating to the O&M of the Facility.O&M items are defined as expenses that are incurred on a regular basis (administration,audits,etc)and maintenance expenses that are incurred on an annual basis.O&M expenses are detailed in Table C:Annual O@7M Schedule and a narrative detail is provided in Section LX:Financial Information to address estimates and assumptions. R&R costs are those expenses defined as items costing greater than $5,000 and/or that are not replaced on an annual basis.Table E:40 Year RC>R Schedule details the anticipated items,the frequency of their replacement and their present day value. The Primary Operator will maintain separate O&M and R&R accounts and will maintain a sufficient account balance to meet the O&M and R&R financial goals in this Plan.The O&M account may be an active non- interest bearing account,while the R&R account must be an interest-bearing,managed savings account,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.Withdrawals from the R&R account of $5,000 and under will require two SF&L signatories and a City Manager signature;while withdrawals from the R&R account over $5,000 will require two SF&L signatories and a city resolution.See Appendix A:Primary Operator Statement ofQualification for an overview of the Primary Operator's fiscal controls and accounting procedures. At least once a year,no later than November 30,the Primary Operator will develop a budget for the upcoming calendar year,January 1 through December 31,for both O&M and R&R. Operations and Maintenance Guidelines The Primary Operator will establish an active non-interest bearing account for the Facility O&M so that the O&M schedule can be completed and the Facility operations can be sustained into the future.Section IX: Financial Information provides Table C:Annual O@7M Schedule as a guide to plan for annual maintenance activities and Tabk D:40 Year O¢™M Cashflow as a guide to estimated yearly O&M required contributions. These costs are based upon the O&M cost estimate provided by CRW Engineering Group,LLC,see Appendix B:O&M and R&R Cost Estimate. Renewal and Replacement Guidelines The Primary Operator will establish an interest bearing escrow managed renewal and replacement account acceptable to the Denali Commission,which will ensure capitalization of an amount sufficient to maintain the R&R Schedule (see attached R¢*R Fund Account -Sample Documents for "How to Establish a RC*R Account').It is assumed that the R&R activities for Year 20 will be funded 40%from the R&R account and 60%from debt financing,at 5.5%over 10 years.Section IX:Financial Information provides Table E:40 Year R¢*R Schedule as a guide to plan for annual R&R activities,Table F:40 Year R¢>R Cashflow as a guide to estimated yearly R&R required contributions,and Table G:Loan Schedule as a guide to Year 20 R&R loan assumptions and payment schedule.These costs ate based upon the R&R cost estimate provided by CRW Engineering Group,LLC,see Appendix B:O&M and R&>R Cost Estimate. Seldovia Fuel and Lube,Inc.12 R&R Fund Account -Sample Documents The Primary Operator will periodically remit R&R funds to the administrator of its R&R escrow account according to guidelines to be established by the Denali Commission.Management and other fees charged by the escrow fund administrator will be automatically deducted from the Primary Operator's R&R escrow account,according to an Escrow Agreement or other similar document. The Primary Operator will use the estimates in this Plan for year one contributions,and in subsequent years will recalculate contributions based upon assets to be maintained as actually built. Seldovia Fuel and Lube,Inc.13 R&R Fund Account -Sample Documents ATTACHMENT D 40 YEAR RENEWAL AND REPLACEMENT CASHFLOW SF&L Inflation Rate :Initial Cost per gallon ($/gallon): Reinvestment Rate :20 Year R&R:Annual increase : Escrow Fees:|:20 Year Loan Proceeds:SF&L Initial Throughput (gallons):NA NA __Initial Throughput (gallons):Initial Cost per gallon ($/gallon): Loan Rate:NA Initial Throughput (gallons):Annual increase :Loan Term:[-NA Initial Cost per gallon ($/pallon): Annual increase:{ R &R Fund Balance Assumed Throughput (Gallons)Per Gallon Payment Year Beg.of Annual Deposit Principal Renewals/Interest End of Year :Debt Service Earnings (Net Year SF&L NA NA SF&L NA NA Balance SF&L NA NA Total Received Replacements of Fees)Balance 1 ]{$=[$14,445 |$-|$-|$14,445 $-|$-|$14,445 555,586.:-|[$0.026 |$-|s - "2448 14445[$15,028[§-|$___-[$__15,028 a $-|s 4331 §$29,907 569,476]:-|[s 0.026 |$-I$3 |1$ 29907|/$15,635 §-|$-[|$15,635 a -|$897|$46,440 583,713 |--|1$0.027 |$-|[s - "4/846440]§16207[/$ --|$-|$16,267 a $-|$1,393]$64,099 598,305 :-|{§0.027 |$_TZ Is5S}[s 64099/§16,9231$_-|$-|$16,923 $7,353 |§1,702|$75,372 613,263 --||$0.028 |§-Is.|"6 |[8 75,372]$17,607]$-[$-|$17,607 $-|$-2261]$95,239]|628,595 :-|[s 0.028 |$-{$s - "T|[S$95,239]$18,317|§-|$-|$18,317 $-[$2857/8 116,414]|644309|-|.|I 0.028 |$-|$7 8 |[$ 116,414]$19,057 |§-|$-|$19,057 $-|$2,328]$137,799]|660,417 -|_s-d ds 0.029 |$-|$a"9 |13 137,799|$19,826 [$-|$-[$19,826 $-|$2,756 |$160,382.676,928 |--|[$0.029 |$Is ZtO}|$ 160,382|$20,627]$-|$_-[$8 20627]$ _51,502($2,178 |$131,684 693,851 |--|1s 0.030 |$-Is .11][$_131,684/$21,460 |§-|$-[$21,4600]$-|$2,634]$155,777|711,197 --11$0.030 |$-([$_- 12)[$ 155,777]§22,326 [$-|$__-|$22,326 |$-[$3,116]$181,219 728,977 :-|4s 0.031 |§-1g 3)[$s 181,219]$2322813 =|§-|$23,228 -__|$-[$3,624]$208071}|747,201|--|]8 _0.031/§-_|$- 14]|208071/$24,165/$-[$-|$24,165 $-=/$4,161]$-236,398|765,881 :-|fs 0.032 |§Ts z15][$ 236,398)$25,141 |§-|§-|$25,141 $_8534($4,557]§257,562|785,028 |:__-)1$0.032]§-_|$: 16]|$ 257,562|$26,156|$-{$-|$26,156 $-|$5,151]$288,870|804,654 -||[ss 0.033 |$-|s : 17|[$ 288,870|$27,212 §-[$-|[$27,212 $-|$5,777 |$321,859|824,771 --|[3 0.033 |$Is i18]1$321,859]$28,311 |§-|$-[$28,311 $-|$6,437 [$356,607|845,390]--|[$0.033 |$-Is |> 19 ||$__356,607|$29,454 |$-|$__-|$29,454 | $-|$7,132[$393,193 866,525 --|1s 0.034 |$7 20)|$ 393,193|$30043[$=-[$-|$30,643 |$58,231 -_|$_97,052]$5,923]§390,939 888,188 :-|/$0.035 |$-_|§21]]$ 390939]§ 31gs0'sss -S -|$31,880 $7,725 |$-[$7,819]$422,912 910,392 __--|[s 0.035 |$-(8 - 22)1$ 422,9121§33,1671§-|$-[$33,167 §7,725 |$-|$8,458]§456,813|933,152 |:-|1 0.036 |$-|g : 23)|$ 456,813|$34,507]$-|$-|$34,507 $7,725 |$-|$_9,136]$492,730 956,481 :-1/$0.036 |$-|$: 24|]$ 492,730]$35,900 |§-[$-[$35,900]__$7,725 |$-|§9,855 |$530,759 980,393.--|/$0.037 |§-|$. 25}18530,759|/$37,349 [$-|[s [837,349 _|$__7,725]$9,904]§-10,417|$560,897|1,004,903 --|1s 0.037 |$-_I|s . 26]|$560,897]$38,857 |$-1$-|$38857;sd $7,725 1 §-|$11,218]$§603,246]|_1,030,025 --[1$0.038 |$-_ig.27]18 603,246|$40,426 |$_-(|$-[$40,426 $_7,725|$-|$12,065]648,012]]1,055,776 --HdS 0.038 |$__|s.-28 ||$ 648,012]$ 42058]/$--($-[$42,058 |$_7,7251§-|$12,960]$695,305]|__1,082,170 :-|[s 0.039 |$-{$s29|/{$695305]$43,756/$ss -($-|[$43,756]$7,725 |$-|$13,906 |$745,243]|__1,109,225|--|1$0.039 |$-|g : 30]4§ 745,243{8 45523/$--[$-|$45,523 $7,725|$ 69,366[$13,518]§727,192]|__1,136,955 --|[s 0.040 |$mc;: 31]]s 727,192/$§47,361[$-|$-[$47,361 __{$-|$14,544]789,097|1,165,379 |--1 1s 0.041 |§-|s : 32 $789,097 $49,273 |$-|$-|$49,273 $-|$15,782 |$854,152 |1,194,514 --$0.0411 $-$- 33)]$ 854,152/$51,263 |§-|$_-|$51,263 $-|$17,083]$922,498|1,224,377,--|1$0.042 |$-Is.- 34][§ 922,498|$53,332|$-|$-|$53,332 | $-|$18,450]§ 994,280||1,254,986 :-|[5 0.042 |$-_|$: 351 [$994,280]$55,486 |§-[$-[$55,486 $_11,494[$19,656]$1,057,928]|_1,286,361.--[|[$0.043 |§-|$: 36 ||$1,057,928]$57,726 |§-[$-[$57,726 $-|[$21,159]§1,136,812 1,318,520 |--|[$0.044 |§-_|$_ 371 [$1,136,812]$60,057|$-[$-[$60,057 _ $-|$22,736]$1,219,605 1,351,483 --|{$0.044 |$I$-38 |]$1,219,605($§62,481 |§-|$-[$62,481 -_{s -|$24,392]§1,306,479]|__1,385,270 :-[[s 0.045 |§-|$> 39 |1$1,306,479($65,004 |§-|$-|$65,004]i $-|$26130]$1,397,613]|__1,419,901 --|{s 0.046 |§-1s : 40 |[$1,397,613 ]$67,6291§-|$-[$67,629 |§-$1,359,501|$7624 $106,503|1,455,399 :-E Ts 0.046 [$-[$: Seldovia Fuel and Lube Inc. R&R Fund Account -Sample Documents 14 LAZASIIIIIALSIIIIIT