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Koyukuk Bulk Fuel Facility & Electric Utility Upgrade Project January 25, 2004
Business Operating Plan of the Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Project January 25,2004 City of Koyukuk P.O.Box 49 Koyukuk,AK 99754 Phone:(907)927-2215 Fax:(907)927-2215 TABLE OF CONTENTS PAGE I.EXECUTIVE SUMMARY .....scsssscssssscsssscssssssosccossssesssessssascesseeseneersscnesssceessearesecerssaeensesosceesccescsesesoesesoes 3 Document Interrelationships .......csssssssesssessssssssesssscssseosssessssecsnsecnsecsueecnessesecusesasecssessascstecsanessecsssseeaseccantsessesssesses 3 TI.BACKGROUND.......cccsscssssesssssssssesccsscscsssesesssonsesssessesssnssenscssceseecessseseeesscsesenersessessessesevenerscesssssoscsosses 4 Selected Statistics -Koyukuk.......ccssssssseessssessssessessssssssssssessvecsssssssressscscsesaneessessssecsueancecasecseecsunassecssscssasecenecesssesses 4 TTT.BULK FUEL FACILITY UPGRADE ..........ssssscossscosssscssssscssnscecarersnscessnseesnscecessecesessessenceessaeessscvessarereeesees 5 Bulk Fuel Storage Facility Description ......scesssessseecssessseesssssssessssssssesssssssssssssssseesssesssssssesssosssesssssssecesneessesesseeenee 5 Project Exclusions.....cssssssssssssssssesssesssesssssssesssesssesssesssessssssssssssssssssssssosscssesescesssesesssesssseseessecseessesssessneesecseenseasseceneeese 5 Facility Participant ......ssssssssssssesssssssessssssssssssssssnssseees sessoseesnensessees ee 5 Community Bulk Fuel Storage Layout Plan and Details wc cccessecssesssecsessvseseesscesessssonnes ws 16 Bulk Fuel Storage Facility Capacity ....ssssssscssssssesssssssessssssesssesssessssssssesesssessscssscssnssssssssssssessscsssesssesasssesssnsssesssessenssse 8 TV.ELECTRIC UTILITY UPGRADE .u....cccsssscsossssecssorsscoosscssssssnscesesssncesessssesesessnneesessscacecscecsessessensessesseees 9 Electric Utility Upgrade Description .......csccssssssssssseessssesssssssesssesseessssstesssssnessssessessssasessesssscsesesceenseneseaveesnenssessesees 9 Project Exclusions.....sscsesssessssssesessssssecsssssssssssnssessssesssssssssssssssssssssssssssssssesnssessesesosssenees sens 9 Electric Utility Upgrade Facility Capacity .....cscsssssssssssssssssessseessssssssssessssssessscsssssecssessnsssseeseesnesaneeseeesesensssneseseensnees 9 Project Site Plan and Layout .....cssssssssssssssesssecseessessesssesssesssesssessssssssessssseseseesssssnssssssesesesaveesssssssssessssesssseseessonsssssnees 9 Vv.PRIMARY OPERATOR......ccssssecsssssscsssssccerssscsscsscsnesessenseseevensessessnssecssoassessscecaccessesscsessevsonsesssvensssooesenss 12 Turnover and Assumption of Responsibilities/Sustainability .......ssssssessssssssesssecssessssssssesssessseessesssneesssseesse .12 Staffing and Training ......cccssssesssssssesssessssssessessssesssossescsecsnesssesssesssssssssssssssessssseesssecssssessscesscescsaseeseeeeceessees 12 Financial Responsibilities ........sssssssessssesssessseessecsesesseesssessessssssessneesscesscenesenssaneesseensssseqnccuceasesusessessecssscsasesssecseseaenseees 13 Operations and Maintenance Guidelines .....ccssesssssssseessssssssessssssssssssssssncsssssesessessssssssnessacesssensscssnecnsssscnscenecnsanensas 13 Renewal and Replacement Guidelines......csssssssssesssseesssessssessnsesssessssecssecsssssssesssssssecsnnssuscssssssnessaeensessanscnnrenseseesee 14 Audits and Reporting.....cscsssessssecssessnsssssesssesnsessssesssessses sessouasesssessssssesssusscesosssaseseesseseensessesssossesseees 14 VI.SECONDARY OPERATOR ...ssssssssssssesessssesssscssscsscesssesaconssesesensasonsossssossscsscesssssssssosssssesonsssseussorneseesesees 15 VII.INSURANCE..........ccsssccscssccccccscssssnsecevcscsssnsseeecccssceseneneesssessssesenssenneesesescsceccesensenaneceeseeseseeaaees 16 VIII.REGULATORY COMPLIANCE .......scsssssrsocsscssssssnceessnsonssoseccssscsvccsnsonsnsccssnesscessseenecseesessesesssenassosessesees 17 TX.FINANCIAL INFORMATION ......scccccccccsssscssssscsccscscssvesecssscsssssesssssssscsnessssessescecesscsesencccecoescecoeensscsceesess 18 Key Financial Assumptions .......sssessesssecsesssesseessessssscessssssssassnesnenecesseasenseess ven sssseeaeensennenseenes 18 Key Operating Assumptions.....ccsssssssssesssseesssssssssecessnsesssnsessosscssncsessssessusesssssessncessscesusessuecesnnsecsnsecsunsessnecetsnsesenseeses 18 Project Funding ....cssscssssssssssssssessseessesnessssesssesssesnesssecssecsseenecsnserseenneceneessesaesneessenseeneeeseennees ee 19 Subsequent Operating Year Revisions......ssesssesssssscssssnsecsserseesnersseecnsenssescnseeueessnesssessssosssssnncensessncesssessananssesssass 19 FINANCIAL TABLES -ELECTRIC POWER UTILITY .......sscccccssssosssssossscvssvsnsnnscsnsccsensssssssscccecccsecsenneoes 20 Table A:40 Year Estimated Utility Net Income and Cash flow......ssessscssscrnsernsersesennsenneessneesssenseconsvsssaoesseses 21 Table B:Power Generation and Consumption Summa ry....secssessccssssserecssercensesnsennsssessuessessnssarsevecessessessneesens 22 Table C:Annual O&M Schedule...ccssssseesecesecseensentennee sesseasecsscssosscsscssesessssssesenssussscesesnssssssseneeanennees 23 Table D:40 Year O&M Schedule oe essssessesssssssssssscessscsesscssescsssassnsasessssssenesecsenenseassersescnessensesennsssensenensonesrents 24 Table E:Annual Fuel Costs ..0....ecsssssssssssssssssssosssssssnssssssssceneenssssssecssassncsacanssnessancneasenecenenseanesceesenseesersseseerssaesets 25 Table F:Annual G&A and Depreciation Expemses......ssssssessesssenssseensenesscverncssssssssssnssusensensenccssssessnessecsaseseease 26 Table G:40 Year R&R Schedule...essssssssssessoesnssssssessesseeesssssesesncsnsssesssnssesssesseasiscserstenscnsatensensensensseaavonnenness 27 Table H:40 Year R&R Cash flow....cessssssssssssssssscrsrssscssssnssssssssssssssnssssnessssecneesssassnsnsssssscesseanecnesnesecanessnssasassagegsonsese 28 FINANCIAL TABLES -BULK FUEL STORAGE ........ccssccossssnsnnnrcccocccnsnnssnsnnsssssssssssnseesescosessosesssesessosonse 29 Table I:Summary of Facility Expenses to Participants...sssvssvcessssessesssensssecaneaseesscnnesnecnneness 30 Table J:Participant Allocation ....ssssssssessesssssesscscesnneecssssssssecsscssnsssssssssnssesssssnsesssssunecessanssscessansescaneannesscensonansnsssessey 31 Table K:Annual O&M Costs .....ssesesssssssssssssosssscsssssessenssssarsnssaceasanesecsssncenecnsaneasensssssnescessnosorgsssssssesseessesseess 31 Table L:40 Year O&M Cashflow ...ssssssssesssssesssssessssssssssssnsessesssssnsearenssncenssoenenesns sesssessecevonssenseaseeses 32 Table M:40 Year R&R Schedule...eececsecccssessssssssessssssssesssssesecseenesssasssscsssssrececasssesnscessssrsnssssseseensrsesseneacenesssass 33 Table N:40 Year R&R Cash flow...sscssssssscssssssrssnesrssnsssaneensesseneseessensesrensennns ven sesssssonssseaneeseaseeaseseeasess 34 Table O:Loan Schedule...csssesssssseessessssesseesensrecscsnenesensensnessssenenesevonseseas esssscsessssossseeeseaeensenenerseess 36 City of KoyukukBulkFuelFacility and Electric Utility Upgrade Business Operating Plan Page 1 of 37 TABLE OF CONTENTS (CONTINUED) APPENDIX A:PRIMARY OPERATOR STATEMENT OF QUALIFICATION APPENDIX B:O&M AND R&R COST ESTIMATE -BULK FUEL STORAGE APPENDIX C:O&M AND R&R COST ESTIMATE -ELECTRIC POWER UTILITY ADDITIONAL RELATED AND ATTACHED DOCUMENTS 1.ACCESS,OCCUPANCY,OPERATIONS AND MAINTENANCE (A,O,O&M)AGREEMENT 2.SECONDARY OPERATOR AGREEMENT 3.SITE CONTROL DOCUMENTS 4,GRANT AGREEMENTS 5.R&R FUND ACCOUNT --SAMPLE DOCUMENTS City of KoyukukBulkFuelFacility and Electric Utility Upgrade Business Operating Plan Page 2 of 37 SEE BACK COVER FOR CD VERSION OF THIS PLAN. I,EXECUTIVE SUMMARY a a - This Business Operating Plan (the "Plan”)provides a guideline for the City of Koyukuk (the "City”)maintenance,operation and sustainability of a new Bulk Fuel Storage and Electric Power Utility Facility (the "Facility”).The City will be responsible to operate and maintain the newly installed Facility and to ensure its ongoing sustainability.For the new Facility,the Plan includes minimum estimates of operation and maintenance needs and costs,renewal and replacement needs and costs,a per kilowatt hour (KwH)surcharge for residential and commercial users,total electrical costs and a per gallon surcharge for fuel.The surcharges should be reviewed and recalculated annually.For the electric utility,Table A:40 Year Estimated Utility Net Income and Cashflow includes projections of utility revenues and expenses with resulting annual net income and cashflow as well as the estimated retail price per kilowatt hour.For the bulk fuel storage,this Plan focuses on wholesale operations only.Additional costs that will be borne by the end-user include fuel costs and other retail operation and maintenance costs (defined later in this Plan).These additional costs are not part of this Plan.See Table I:Summary ofFacility Expenses to Participants for the estimated per gallon fuel surcharge. The Bulk Fuel Upgrade Project will construct a new Bulk Fuel Storage Facility in Koyukuk that will replace all of the existing storage facilities of the City and the Yukon Koyukuk School District (the "YKSD”).The City will utilize its Facility assets to operate City owned utilities and facilities and will directly retail fuel,while the YKSD will operate school district assets.The Rural Power System Upgrade Program will construct a New Electric Power Generation Facility in Koyukuk. Upon construction,the Facility will be turned over to the management of the City (the "Primary Operator”)after the satisfactory completion,as determined by the Alaska Energy Authority (AEA)or its representative,of a 14-day test period.After this test period,AEA will provide written notice (Certificate of Substantial Completion)that the Facility is ready for Beneficial Occupancy.Upon receipt of this Certificate,the City will become the Primary Operator and will assume responsibility for the use,day-to-day operations,and long-term maintenance of all Facility components,except those noted elsewhere in the Plan.When the project has been completed (the Facility is complete,crews have demobilized,invoices have been paid and there are no outstanding issues),the AEA will issue,through its Grants Manager,a Notice of Project Completion.This Notice is included in the Grant Agreements,see Additional Related and Attached Documents. Document Interrelationships The Business Operating Plan is a plan,not an agreement.Attached to this Plan are: Access,Occupancy,Operations and Maintenance Agreement (A,O,O&M) Secondary Operator Agreement Site Control Documents Grant Agreements R&R Fund Account -Sample Documents The A,0,0c%M Agreement and the Secondary Operator Agreement reference the Plan,and includelanguagerequiringthePlanbefollowed.The Plan takes effect after these Agreements areexecuted.Acceptance of the Plan by execution of these Agreements is pre-requisite to fundingfromtheDenaliCommission(the "Commission”),which will be provided through separate Grant Aagreements (See Attachments). City of KoyukukBulkFuelFacility and Electric Utility Upgrade Business Operating Plan Page 3 of 37 II.BACKGROUND The Denali Commission was established by the Federal Government to fund improvement projects within the State of Alaska,including the Bulk Fuel and Electric Utility Upgrade Projects. 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 Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Project,which is to be partially funded by the Commission. The village of Koyukuk is located in interior Alaska on the Yukon River,approximately 30 miles west of Galena.Transportation to the village is by air or water,and the river is generally ice-free from mid-May through mid-October.The state owns and operates a 3,000-foot,gravel runway. The economy of Koyukuk,is subsistence based,and there are very few full-time jobs in the village. The population,predominantly Athabascan,has fluctuated over the years,and is now at approximately 100 people.The residents do not have individual plumbing but rather haul water from the washeteria and use honeybuckets.However,work has begun to upgrade the community to a flush/haul system and currently seven households are on the flush/haul system.The City provides most utility services;it owns and operates the washeteria,health clinic,and electric utility. Selected demographic and historical data for the community is provided below: Selected Statistics -Koyukuk Population 2000 101 1990 126 1980 98 1970 124 1960 128 1950 79 Housing (2000 Data) Occupied Housing 39 Vacant Housing Due to Seasonal Use 16 Other Vacant Housing 0 Economic Data (2000 Data) Unemployment Rate 23.1% Median Household Income $19,375 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 4 of 37 III.BULK FUEL FACILITY UPGRADE The Bulk Fuel Upgrade Project will construct a new Bulk Fuel Storage Facility in Koyukuk that will replace all of the existing storage facilities of the City and YKSD (the "Participants”). Bulk Fuel Storage Facility Description The AEA has contracted with LCMF Incorporated to develop a Conceptual Design Report (CDR)for the Bulk Fuel Facility,which was submitted to AEA on October 8,2001,and with Hattenburg,Dilley &Linnell to develop final drawings,which were submitted to AEA on June 19, 2003.The purpose of the CDR,and design drawings,is to provide a concept design and construction cost estimate for consolidation and upgrade of bulk fuel storage/electric power in the community,which are referenced in this Plan.This Plan is predicated upon the information contained in the CDR's and their acceptance by the community. The new Bulk Fuel Facility will be located near the school on a site with adequate area for consolidation of all required village fuel storage as well as adequate set-backs for a fuel dispensing facility.The Facility will include four bulk storage tanks,a dispensing tank and six intermediate storage tanks.The new Electric Power Generation Facility will be located adjacent to the new Bulk Fuel Facility. Project Exclusions Neither AEA nor the Commission will take responsibility for the following,which are not a part of this project: e Decommissioning of existing tanks or environmental remediation e Retail business:including licenses,revenue,prices,taxes,profits,or contributions to the wholesale fuel storage program The AEA and the Commission will not provide any guarantees,warrantees or ongoing support, other than that which is defined in the Plan.However,manufacturer warranties will be transferred at the time of project turnover (defined in Sectton V.Primary Operator). Facility Participants: City of Koyukuk Primary Contact Name:Jason Malemute,Mayor Phone:(907)927-2215 Fax:(907)927-2215 Address:P.O.Box 49,Koyukuk,AK 99754 Yukon Koyukuk School District Primary Contact Name:Christopher Simon,Superintendent Phone:(907)374-9400 Fax:(907)374-9440 Address:4762 Old Airport Way,Fairbanks,AK 99709-4456 See the following diagrams for the storage location layout plan and details of the Facility: City of KoyukukBulkFuelFacility and Electric Utility Upgrade Business Operating Plan Page 5 of 37 CommunityBulkFuelStorageLayoutPlan40'FROM 12.001-.92,000 OULLOM BERK STORACE TANS FD THE NEARESTPROPONTYUNEWeSCH@OfCANMfBURTURC39"FROM BULK TRANSFOR HOSE STAND TO THE NEAREST THE NEARESTBRODITBUDATHETEARSPOPLINCREGTSOFCATBe RTUPON,COMBUSTIBLE SATEAMALE.AND FIXED SOURCES OF IONTION,500'FROM FUG BSCR AnD PELE 7D AUC Aso va cy AEA 22 DHE PITERMEDIAIE WOKS AT THE SCHOOL AND SASHETENA WRL PROMDE STOMOE OF DESH.FALTHe 3 he Ons ORT aD CrSoMe DABS WALL GE CRICONPRTIED FROM Mipeas,DRAKE OF PRODECT,$0 BENE PLACED St ACCORDANCE WITH CURRENT AEA POUCY APPLICABLE STATE AND FEDERM,RETRRADOVS..DESEXUTION AND DISPOSAL OF THE WEL MOT BE PART OF THal PROJECT.BELOW GRADE PENG WelBEABWONEO HgTTENBURGDRLEY&LINN!95%DRAWINGSmio€zA£ONOTFORYUSR1)eutxFue.uPcravesFoR:PVAIDEAIAEAosKOYUKUK,ALASKAiv)tHSBulkFuelFacilityandElectricUtiityUpgradeBusinessOperatingPlanPage6of37CityofKoyukuk ws)BulkFuelFacilityDetailsVs Pomme somes amu /®CA nase ox ue a)msn wee ©am .O ceee °soe tt namedALEXIe "RS PRESSURE RELIEF WUE @ mmesnne once O {8 east |-o-er RUSTON if SBeAtusmewwe©mee maeaSENDWaNEiG]ne @ smeraasce 3 cua OG sw AE CHECK be OK - ae |28 SoH 80 omen T On,| |REP EBS *Oe.Obes]Nie)soe ie .|Sa)|_y sae outa -aeife |fe IS)6 df 17 "a 31 NOTES:l I l \*,SEE PROUT LAYOUT PLAN SHEET C1 FOr TAN Saad|||1 LOCADOMAA]PIPELINE ROUTPR 4O "it |°om |oe . 2 Sited Secroroa "errunn,eeie|[ogier| o ||| = a}CITY OF KOYUKUK TANK SCHEDULE --nid Ceesa a|re ee o 33.090 77000 (EF AZO,BAK Poet A 4 OT cz |32000 77,000 >HORZTO.LK De i _iI |@ a 30,000 27,000 NEW ONCOL,AX DN F .cee ...o sooo |3000 |220 |2x0 a ome se a ee ©O on o 4000 ae Le OER DOK POR MOM)J souen C 1 \hog al |os 2000 rma0 Ae crameneE weer (mart).© _4 - - $1 os wo 20 my eacmne ment gamer)&LLJ- i i j |op}9}a mo 270 a Ce Be fom)w ;|i |i w s oe xo 20 lew ReREeNs ww 2”CREE)<x |ee x me <i a 2 @ #«4 OTH 7 rakon KOMMIN SCHOOL D8 a Jogo ge ge ted "TB |cx ronan oon parncrwowsowmens |18 CYa@ltsObreso|ose ponerseen[sees ra e_}-soeas "io wees LL 4 a ow 3 16.000 13,500 NEW ORIN BAK Duet <<SfalIcymamecr|a iadHyTG)Ano 1 s 2000 1400 (RE FECENOE WHR SONI,MLO - (9)(9G)fas OE oP at 1 ci i vom:17,000 un svsrene 3 aalis ea me "pan Ze @ G)mse \os eeu omer J =os moe OFF-LINE PPLE @ ®some _)a @ it Caelti OperatingPlanBulkFuelFacilityandElectricUtilityUpgradeBusinessPage7of37CityofKoyukuk Bulk Fuel Storage Facility Capacity The following table provides a summary of the tankage,by type of fuel (obtained from the CDR), which will be included in the Facility upgrade: Facility Components &Capacities Gallons Gallons Primary Storage/Dispensing ©Number Per Total Per Tank Total Tank Gallons (Net)Gallons (Gross)(Gross)(Net) City Diesel Primary Storage 2 30,000 60,000 27,000 54,000 Intermediate Storage 1 6,000 6,000 5,400 5,400 Intermediate Storage 1 2,000 2,000 1,800 1,800 Intermediate Storage 3 300 900 270 810 Dispensing 1*3,000 3,000 2,700 2,700 Subtotal Diesel 8 71,900 64,710 Gasoline Primary Storage 1 30,000 30,000 27,000 27,000 Dispensing 1*3,000 3,000 2,700 2,700 Subtotal Gasoline 2 33,000 33,000 29,700 29,700 Total City 9 104,900 94,410 YKSD Diesel Primary Storage 1 15,000 15,000 13,500 13,500 Intermediate Storage 1 2,000 2,000 1,800 1,800 Total YKSD 2 17,000 15,300 Total Primary 11 121,900 109,710 Storage/Dispensing Pipeline Components Number Marine Header 1 Barge &Transfer Filler Pipelines 2 Pipeline to City Power Plant 1 Pipeline to School 1 Pipeline to Dispenser 1 Dual-Fuel Retail Dispenser 1 Each Participant's storage capacity is in excess of its present usage.The Commission guidelines dictate that extra capacity is provided to account for 10 years of growth in fuel requirements.However,if annual fuel requirements increase to levels above the planned storage capacity,the tank farm can be expanded or multiple deliveries can be made each year. City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 8 of 37 IV.ELECTRIC POWER UPGRADE The Rural Power System Upgrade Program will construct a new Electric Power Generation Facility in Koyukuk that will consist of three diesel engine generators,automated switchgear,fuel handling,and a step-up transformer bank. Electric Utility Upgrade Description The AEA contracted with and Hattenburg,Dilley &Linnell to develop a CDR for the Electric Power Upgrade Project,and a draft was submitted to AEA on March 25,2003.The purpose of the CDR is to provide a concept design and construction cost estimate for upgrades to the electrical generation system for the community of Koyukuk.This Plan is predicated upon the information contained in the CDR and its acceptance by the community. The new Electric Power Generation Facility will be located next to the Koyukuk School adjacent to the existing school mechanical building.The Facility will consist of three diesel engine generators,automated switchgear,fuel handling,and a step-up transformer bank. Project Exclusions Neither AEA nor the Commission will take responsibility for the following,which are not a part of this project: e Off-site fuel storage e Abandonment or decommissioning of existing facilities e Environmental cleanup The AEA and the Commission will not provide any guarantees,warrantees or ongoing support, other than that which is defined in the Plan.However,manufacturer warranties will be transferred at the time of project turnover (defined in Section V.Primary Operator). Electric Utility Upgrade Facility Capacity The proposed capacity of the Facility will be 490 Kw,using three generators,which is an increase from existing capacity.The generators will feed a load sensing switchgear and step-up transformers.The generators are sized so the largest generator can handle peak loading during the winter. The Facility's power generation capacity is in excess of its present usage.The Commission guidelines dictate that extra capacity is provided to account for 10 years of growth in electric power requirements.The initial annual estimated KwH consumption by the community isestimatedtobe218,779 KwH;growing to 227,662 KwH by year five and 239,275 KwH by year ten. Project Site Plan and Layout The following diagrams detail the project site plan and layout: City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 9 of 37 Electric Power Upgrade Site Plan \The {(|{ME (CMG\i Ge \|Wl AN \|ia |i i yeeaee --Wir Z\t |if s\\|||if f \}I-74 AN i \4/iv '|CALLE&-\)a AN licePGana}i |fr Ky VyH\a \\' 1 \enef1\WhH|\\.Vy \[|_-__'\ ||T te N||4 :R \|/|p a1 XY f |iL/rt-4)J VV if --- / A Not fi \ifi\\\\ \\o- \_-a |pet en Vt;!Wy Wea!RURAL POWER SYSTEW UPGRADES FOR, cae KOYUKUK,ALASKA City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 10 of 37 Electric Power Upgrade Layout sy ed OT ofPaty pat CNS MEE PS feel sary eh SY ¥Sf 2 en e oad s xg ys %,Paths )Ee .2adbite '6 Fae Sa =a St°Pinta ah wwii iyoytetSaBeeikenFtlaweeea.fhsASN tae ae itLPreaeanes"ah pe +++++ we &I]RURAL POWER SYSTEMS UPGRADES FoR:HO Sane!ae |lahieenedaainan »moran NOTFOR E- Figde||AIDEA/AEA ==coveralcTan Bs |”KOYUKUK,ALASKA :apes as D City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 11 of 37 V.PRIMARY OPERATOR The Primary Operator for the Koyukuk Bulk Fuel Storage Facility and Electric Power Utility is theCity.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 Primary Operator after the satisfactory completion,as determined by AEA or its representative,of a 14-day test period.After this test period,AEA will provide written notice (Certificate of Substantial Completion)stating that the Facility is ready for Beneficial Occupancy.Upon receipt of this Certificate,the City will become the Primary Operator and will assume responsibility for the use,day-to-day operations,and long-term maintenance of all Facility components,except those noted elsewhere in the Plan. When the project has been completed (the Facility is complete,crews have demobilized,invoices have been paid and there are no outstanding issues),the AEA will issue through its Grants Manager a Notice of Project Completion.This Notice is included in the Grant Agreements,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,maintenanceandadministrativepositions.Because all functions are essential to the successful operation of the Facility,replacements will be recruited and trained as necessary.The Manager will be responsibleformaintainingadequatestaffingandtrainingatalltimes.When the Primary Operator lackstrainedoperatorsandadministrativestaff,training will be obtained to ensure sustained Facility operation. Training programs may be available from AEA,the Alaska Vocational Technical Center (AVTEC) in Seward,the Commission and other training sources. City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 12 of 37 Financial Responsibilities There are two cost categories that will be incurred in the ongoing operation and upkeep of the Facility -O&M and R&R. 1)O&M:The Primary Operator 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,as well as replacement costs of items under $5,000.Electric Utility related O&M expenses are detailed in Tab C:Annual OeM Schedule and in the narrative detail provided in Section IX.Financial Information.Bulk Fuel Storage O&M expenses are detailed in Table K:Annual O@M Costs and in the narrative detail provided in Section IX.Financial Information.Certain Bulk Fuel Facility components are common to all Participants,and the O&M costs of these items will be properly allocated,prorated accordingtofuelstoragecapacitytoallParticipantsasdefinedinTabkJ:Participant Allocation. 2)R&R:R&R costs are those expenses defined as items costing greater than $5,000 and/or that are not replaced on an annual basis.For the Electric Utility,Table G:40 Year R&”R Schedule details the anticipated items,the frequency of their replacement and their present day value.For the Bulk Fuel Storage,Tabk M:40 Year RR Schedule details the anticipated items,the frequency of their replacement and their present day value.Certain Bulk Fuel Facility components are common to all Participants,and the R&R costs of these items shall be properly allocated,prorated according to fuel storage capacity,to all Participants as defined in Tabée J:Participant Allocation. The Participants will make annual O&M and R&R contributions on a mutually agreeable date,as specified in the attached _4,O,O¢™M Agreement.The contribution will be made directly to the Primary Operator,which will deposit contributions into separate accounts.The Primary Operator will maintain separate O&M and R&R accounts and will maintain a sufficient account balance to meet the O&M and R&R financial goals in this Plan.The O&M account may be an active non- interest bearing account,while the R&R account must be an interest-bearing,managed savings account,which requires two signatories and a community resolution for withdrawals,until such time as the cash balance makes an escrow account more cost effective;then the R&R account must be transferred to an interest-bearing invested escrow account that is acceptable to the Denali Commission.The Manager will be authorized to draw against the O&M funds for routine expenses of the Facility,however individual expenditures in excess of $5,000 will require the authorization of the Primary Operator's management or governing body.See Appendix A: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 May 31,the Primary Operator willdevelopabudgetfortheupcomingfiscalyear,July 1 through June 30,for both O&M and R&R.This will include an update of actual expenses and projections and assumptions used in this Plan, as described in Section IX.Financial Information,Subsequent Operating Year Revisions.Additionally, Tables A-O should be updated. Operations and Maintenance Guidelines The Primary Operator will establish an account to fund the Facility O&M so that the O&MschedulecanbecompletedandtheFacilityoperationscanbesustainedintothefuture(this is anticipated to be an active non-interest bearing account).For the Electric Utility,Section IX.Financial Information provides Table C:Annual OM Schedule as a guide to plan for annual maintenance activities and Table D:40 Year O¢7M Schedule as a guide to estimated yearly O&M City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 13 of 37 required contributions.For the Bulk Fuel Storage,Section IX.Financial Information provides Tabk K:Annual O@*M Costs as a guide to plan for annual maintenance activities and Table L:40 Year Oe>M Cashflow as a guide to estimated yearly O&M required contributions.The Primary Operator of the Facility will be responsible for the majority of the O&M of the Facility.The YKSD will be responsible for the O&M of its facilities,and as such,these costs are not included as part of this Plan. 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 Re*R Fund Account-Sample Documents for "How to Establish a R¢?R Account'), For the Electric Utility,Section IX.Financial Information provides Tabk G:40 Year R¢>R Schedule as a guide to plan for annual R&R activities and Table H:40 Year R¢7R Cashjlow as a guide to estimate annual R&R required contributions.These costs are based on the R&R cost estimate included in Appendix C:O@%M and R&R Cost Estimate -Electric Power Utility. For Bulk Fuel,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 M:40 Year Re>R Schedule as a guide to plan for annual Bulk Fuel R&R activities, Table N:40 Year R¢*R Cashflow as a guide to estimated yearly R&R required contributions,and Table O: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 HMS,Inc,included in Appendix B: O&M and R&R Cost Estimate -Bulk Fuel Storage. When applicable,the Primary Operator will periodically remit R&R funds to the administrator of its R&R escrow account,according to guidelines to be established by the Denali Commission. Management and other fees charged by the escrow fund administrator will be automatically deducted from the Primary Operator's R&R escrow account,according to a Management Agreement or other similar document. The Participants will use the estimates in this Plan for year one contributions,and in subsequent years will recalculate contributions based upon assets to be maintained as actually built. Audits and Reporting The Primary Operator will arrange for an annual financial reconciliatory audit that is conducted by qualified,independent auditors at their office.The auditors will not travel to Koyukuk unless the Primary Operator requests an on-site audit.The Primary Operator will provide an annual report of operations to the Commission that includes a summary description of O&M and R&Rprojections,annual O&M and R&R budgets and expenditures,a projection of future O&M andR&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 inthisPlan.The Commission has reserved the right to visit the site and to access all books and records related to the Facility at any time upon written request. City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 14 of 37 maa,VI.SECONDARY OPERATOR The Secondary Operator for the Koyukuk Bulk Fuel Facility and Electric Power Generation Facility will be determined in the future by the Denali Commission,if the need arises.See the attached Secondary Operator Agreement for details. City of KoyukukBulkFuelFacility and Electric Utility Upgrade Business Operating Plan Page 15 of 37 VII.INSURANCE For the Electric Utility,the Primary Operator is required to be insured for General Liability and Property,which will be included in the annual O&M costs.Currently,the City is eligible to cover its electric power utility through the Alaska Municipal League Joint Insurance Association (AMLJTA),Inc,for General Liability and Property coverage at an estimated annual cost of $10,000. For the Bulk Fuel Facility,the Primary Operator is required to be insured for General Liability Insurance,which will be included in the annual O&M costs.Currently,the City is eligible to cover its bulk fuel facility through the Alaska Municipal League Joint Insurance Association (AMLJIA), Inc,for General Liability coverage at an estimated annual cost of $2,000. City of KoyukukBulkFuelFacility and Electric Utility Upgrade Business Operating Plan Page 16 of 37 VIII.REGULATORY COMPLIANCE The Primary Operator is responsible for ensuring the operation and maintenance of the storage tanks and transfer systems that they own and operate are compliant with state and federal requirements.The Primary Operator shall comply with the procedures established in the spill prevention and response plans listed below and will maintain and be familiar with the following regulatory plans: e US Coast Guard Facility Response Plan (33 CFR Part 154)/EPA Facility Response Plan (40 CFR Part 112)-This plan establishes spill response procedures and organization for the tank farm.It commits the Participants to maintain adequate spill response equipment and to conduct annual training and drill programs. e US Coast Guard Operations Manual (33 CFR Past 154)-This plan describes the required procedures to be followed by each Participant when off-loading fuel from marine vessels to the tank farm. e US Environmental Protection Agency (EPA)Spill Prevention Control and Countermeasures Plan (SPCC)(40 CFR Part 112)-This plan confirms compliance of the Facility with the spill prevention and operating requirements of 40 CFR Part 112. A Registered Professional Engineer must certify the plan. These plans include commitments and guidelines for spill prevention,response,and other related environmental information to ensure the environmental integrity of the Facility and the community.The plans will be developed near the end of tank farm construction.The Primary Operator will participate in development and review of the plans as requested.Estimated expenses have been provided herein and include the anticipated costs of implementing the plans, ensuring the reliability of the spill response equipment,maintaining the proper records,and conducting periodic spill drills. The Primary Operator shall ensure the plans are approved,maintained,and updated in accordance with Coast Guard and EPA requirements described in the plans. The Primary Operator's Electric Utility must be certificated by the Regulatory Commission ofAlaska.Additionally,the Primary Operator will apply to the State of Alaska,Department of Environment Conservation for a Construction Permit prior to electric power generation facility construction and for a Diesel-Electric Generator Facility General Operating Permit. City of KoyukukBulkFuelFacility and Electric Utility Upgrade Business Operating Plan Page 17 of 37 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%. 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. Bulk Fuel year one general liability insurance is estimated to be $2,000,based upon AMLJIA,Inc.coverage,with subsequent years inflated at 1.5%,while the Electric Utility insurance is estimated to be $10,000 in year one with subsequent years inflated at 1.5%. Bulk Fuel 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. Annual Electric Utility collection rate is assumed to be 90%. 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 Facility are not included in this Plan.Bulk Fuel retail operations,or its profits,are not included in the Plan. Key Operating Assumptions Fuel costs for electric generation in the first year are estimated to be $1.55 per gallon. Annual KwH usage is estimated to grow at 1%per year. Line loss and unbilled production are assumed to be 14.46%per year. Initial first year power generation is estimated to be 255,762 KwH for general community consumption. Initial annual billed KwH is estimated to be 218,779 KwH to community users. Energy is produced at 14 KwH/gallon on average. Initial annual bulk fuel throughput estimates:City -53,000 gallons/diesel and 24,000 gallons/gasoline.YKSD -14,300 gallons/diesel. City Bulk Fuel throughput is estimated to grow annually at a rate of 5%for diesel and 2.5%for gasoline consumption.And,YKSD Bulk Fuel throughput is estimated to grow annually at a rate of 0.5%. YKSD will pay its proportionate share of O&M costs and R&R costs of Bulk Fuel Common Facilities. O&M and R&R expenses associated with Bulk Fuel Common Facilities will be allocated to each participant based on its share of installed primary storage capacity or as detailed in the A,O,O@>M Agreement Appendix A:Participants'Operational Responsibiiines. Retail operations,or its profits,are not included in the Plan. City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 18 of 37 Project Funding This Plan is not a commitment to provide project funding. Subsequent Operating Year Revisions Starting with the second year,as operating experience specific to this Facility is obtained,the ptojections 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: Bulk Fuel Revisions Step 1:Review previous years'O&M and R&R costs and compare to current projections Step 2:Adjust O&M and R&R projections and assumptions based upon actual experience Step 3:Recalculate City per gallon O&M costs based upon updated throughput estimates Step 4:Recalculate City per gallon R&R costs based upon updated throughput estimates Step 5:Recalculate total City per gallon fuel costs Electric Utility Revisions Step 1:Review previous years'O&M and R&R costs and compare to current projections Step 2:Adjust O&M and R&R projections and assumptions based upon actual experience Step 3;Recalculate per KwH O&M surcharge based upon updated demand estimates Step 4:Recalculate per KwH R&R surcharge based upon updated demand estimates Step 5:Update Table .A:40 Year Estimated Utility Net Income and Cashflow Step 6:Establish updated retail rate per kilowatt hour City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 19 of 37 FINANCIAL TABLES -ELECTRIC POWER UTILITY City of KoyukukBulkFuelFacility and Electric Utility Upgrade Business Operating Plan Page 20 of 37 Inflation Rate :Annual Profit Margin:10.0% 40 YEAR ESTIMATED UTILITY NET INCOME AND CASHFLOW TABLE A Annual Revenue Annual Expenses Net Annual Cashfiow Before Taxes .General &Year Estimated one Estimated O&M Fuel Costs |Administrative |Depreciation Total Income Net Income Plus:.Less:R&R AnnualRetailPriceKwH/Year Annual Expenses (Table E)Expenses (Table F)Expenses Before Year]Before Taxes ||Depreciation |Cash Deposit Cashflow$/KwH (Table B)Revenue (Tables C&D)(Table F)Taxes (Table F)|(Tables G&H) 1 $0.444 196,901 ||$87,497 $28,726 |$28,317 |$21,000 |$1,500 |$79,543 $7,954 17$7,954 $1,500 |$7,876 $1,578 2 $0.448 198,870 $89,126 $29,157 |$29,029 |$21,315 |$1,523 |$81,023 $8,102 27$8,102 $1,523 |$8,193 $1,431 3 $0.452 200,859 ||$90,787 $29,594]$29,759 |$21,635 |$1,545 |$82,533 $8,253 3 4$8,253 $1,545 |$8,524 $1,275 4 $0.456 |202,867 $92,481 $30,038 |$30,507 |$21,959 |$1,569 |$84,073 ||$8,407 41{$8,407 $1,569 1 $8,867 $1,109 5 $0.473 204,896 $96,919 $30,489 |$31,274 |§22,289 |$4,056 |$88,108 ]$8,811 5 1$8,811 $4,056 |$9,224 ||$3,643 6 $0.477 206,945 $98,681 $30,946 |$32,061 |$22,623 |$4,080 |$89,710 $8,971 6 /$8,971 $4,080 |$9,596 $3,455 7 $0.481 |209,014 $100,479 $31,410 |$32,867 |$22,962 1 $4,104 1 $91,344 $9,134 74$9,134 $4,104 |$9,983 $3,256"8 ils 0472 211,104 |[$99,002]|$31,882[$33,.094/$ 23,307[$1,605]$90,547][$9,055 Bis 90551]/$ 1,665[$103385}|$334 9 $0.476 213,215 $101,472 $32,360 |$34,541 |$23,656 |$1,690 |$92,247 ||$9,225 9 71$9,225 ||$1,690 |§10,804 $111 10 $0.541 215,348 $116,435 $32,845 |$35,410 |$24,011 |$13,584 |$105,850 i$10,585 10 ]7$10,585 $13,584 |$11,239 $12,930Ee$0.544 217,501 ||$118,382 $33,338 |$36,301 |$24,371 |$13,610 |$107,620 $10,762 11.1$10,762 |$13,610 |$11,692 $12,68042$0.548 219,676 $120,367 $33,838 |$37,214 |$24,737 |$13,636 |$109,424||$10,942 12 |$10,942 $13,636 |$12,163 $12,4153B$0.534 221,873 $118,568 $34,3461 $38,149]$25,108 |$10,186 |$107,789 $10,779 13 |$10,779 $10,186 |$12,654 S 8,311"14 |$0.538 224,092 $120,634 $34,861 |$39,109 |$25,485 |$10,213 |$109,667 $10,967 14]%10,967 $10,213 |$13,163 $8,016 15 $0.520 226,333 }|$117,643 $35,384 1$40,093 |$25,867 |$5,605 |$106,948 $10,695 (15 /$10,695 $5,605 |$13,694 $2,60616$0.524 228,596 $119,793 ||$35,914}$41,101 |$26,255 |$5,633 |$108,903 $10,890 16 4$10,890 $5,633 |$14,246 $2,27847|$0.528 |230,882 |$121,987 $36,453 |$42,135 |$26,649 |$5,661 |$110,897 $11,090 17 |$11,090 $5,661 |$14,820 $1,93118$0.519 233,191 $121,080 $37,000 |$43,194 |$27,048 |$2,830 |$110,072 $11,007 18 |$11,007 $2,830 |$15,417 $(1,580) 19 $0.524 235,523 $123,363 ||$37,555 |$44,281]$27,454 |$2,859 |$112,148 $11,215 19 |$11,215 $2,859 1 $16,038 ||$(1,965)20 $0.600 237,878 ||$142,783 $38,118 |$ 45,394|$27,866 |$18,425 |$129,803||$12,980 20 |$12,980 $18,425 |$16,685 $14,720 a }1s 0.604 240,257]|$145,161]|S 38,690[$46,536]$ -28,284]$-18,455|$131,964||$13,196]|21/8 13,190]|$18,455|$_17,357||$14,204 22 $0.608 242,659 ||$147,587 $39,270 |$47,706 |$28,708 |$18,485 |$134,170 ||$13,417 22 |$13,417 $18,485 |$18,057 $13,84523]|/[$0.595|245,086 ||$145,898]|S 39,859]$48,906 ($29,139 14,730[$132,634]|$13,263]|23[$13,2031 1$ 14,730[$18,784]|$9,209 24 $0.600 247,537 $148,423 $40,4571$50,136 {$29,576 |$14,761 |$134,930 $13,493 24]$13,493 $14,761 |$19,541 $8,713 25 $0.616 250,012 $153,935 $41,064 |$51,397 |$30,020 |$17,460 |$139,940 $13,994 25 1$13,994 $17,460 |$20,329 $11,125 26 $0.620 252,512 $156,565 $41,680 |$52,690 |$30,470 |$17,492}$142,332 ys 14,233 26|$14,233 $17,492 |$21,148 $10,57727|$0.624 255,037 $159,249 $ 42305|/$54,015]30,927 |$17,525}$144,772 $14,477 27|$14,477 $17,525 |$22,000 $10,001 28 $0.615 257,588 $158,337}|{$42,940]$55,373 |$31,391 |$14,239 |$143,943 $14,394 28 |$14,394 i$14,239 |$22,887 $5,746 29 $0.619 260,163 $161,132 $ 43,584]$56,766 |$31,862 |$14,272]$146,484 $14,648 29 |$14,648 $14,272 |$23,809 $5,11130$0.676 262,765 $177,722 $44,2385 $58,194 |$32,340 |$26,795 |$161,565 i$16,157 30 |$16,157 $26,795 |$24,769 $18,182 31 $0.681 265,393 $180,634 $ 44901)$59,657]$32,825 |$ 26,829]$164,212 i$16,421 31 |]$16,421 $26,829 |$25,767 $17,483 32 $0.685 268,047 $183,605 $45,575 ]$61,157 |$33,317 |$26,864 |$166,914 $16,691 32]$16,691 $26,864 |$26,806 $16,75033,$0.672 270,727 $181,923 $46,258 |$62,696 |$33,817 |$22613 |$165,384 $16,538 33 |$16,538 $22,613 |$27,886 i $11,266 34 $0.677 273,434 $185,018 $ 46,952|$64,272 |$34,324 |$22,650 |$168,198 $16,820 34 |$16,820 $22,650 |$29,010 $10,460 35 $0.624 276,169 $172,414 $47,657]$65,889 |$34,839 |$8,355 |$156,740 $15,674 35 |$15,674 $8,355 |$30,179 $(6,149)36 $0.630 278,930 $175,639 $48,371]$67,546]$35,362 |$8,393 |$159,672 $15,967 36 |$15,967 $8,393 |$31,395 $7.,035)|37 $0.635 281,720 $178,931 $49097 }$69,245]$35,892 |$8,431]$162,664 $16,266 37 |$16,266 $8,431 |$32,660 $(7,963) 38]1$0.625 284,537 $177,719 $ 49,834]$70,986 ]1$36,430 |$4,313 |$161,563 $16,156 38 |$16,156}|$4,313 |$33,976 $(13,507) 3941 $0.630 287,382 $181,149 $ 50,581]$ 72,772|$36,977 |$4,352 |$164,681 $16,468 39 |$16,468 $4,352 |$35,346 $(14,526)40 $0.744 290,256 $215,975 $51,340,$74,602]1$37,531 |$32,868 |$196,341 $19,634 40|$19,634 $32,868 |$36,770 $15,733 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 21 of 37 wTVFVTPoelHPower Generation and Consumption Summary TABLE B Total Annual Line .Assumed Year Generated Loss and Total Billed Collectable KwH/Year Unbilled KwH/Yeat KwH/Year 1 255,762 36,983 218,779 196,901 2 258,320 37,353 220,967 198,870 3 260,903 37,727 223,176 200,859 4 263,512 38,104 225,408 202,867 5 266,147 38,485 227,662 204,896 6 268,808 38,870 229,939 206,945 7 271,497 39,258 232,238 209,014 8 274,211 39,651 |234,561 211,104 9 276,954 40,047 236,906|213,215 10 279,723 40,448 |239,275 215,348 11 282,520 40,852 }241,668}217,501 12 285,346 41,261,244,085 |219,676 13 288,199 41,674 246,525 221,873 14 291,081 42,090 |248,991 224,092 15 293,992 42,511 251,481 226,333 16 296,932 42,936 253,995 228,596 17 299,901 43,366 |256,535 |230,882 18 302,900 43,799 259,101 233,191 19 305,929 44,237 261,692 235,523 20 308,988 |44,680 264,309 |237,878 21 312,078 45,127 266,952 240,257 22 315,199 45,578 269,621 242,659 23 318,351 46,034 272,317 245,086 24 321,535 46,494 275,041 247,537 25 324,750 46,959 277,791 250,012 26 327,997 47,428 280,569 252,512 27 331,277 47,903 283,375 255,037 28 334,590 48,382 286,208 |257,588 29 337,936 48,866 289,070 260,163 30 341,315 49,354 291,961|262,765 31 344,729 |49,848 294,881 |265,393 32 348,176 50,346 |297,830 268,047 33 351,658 50,850 300,808 |270,727 34 355,174 51,358 303,816 273,434 35 358,726 51,872 306,854 276,169 36 362,313 52,390 |309,923 278,930 37 365,936 52,914 313,022 281,720 38 369,596 53,444 316,152 |284,537 39 373,292 53,978 319,314 287,382 40 377,025 54,518 322,507 290,256 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 22 of 37 Assumed Collection Rate 90% Annual KwH Increase 1.0%| Annual Line Loss/Unbille 14.46% City of Koyukuk TABLE C ANNUAL "O and M"SCHEDULE Rate Per Fringe Total Hourly Position Hour Rate Cost Duties Operator 1 -Primary $20.00 19.4%$23.88 Maintenance &Primary Operations Lineman/Electrician $25.00 19.4%$29.85 Line/Electrical Maintenance Fuel Man $15.00 19.4%$17.91 Fuel Delivery Bookkeeper $16.00 19.4%$19.10 Payroll,Accounts Payable Utility Manager $-0.0%$- Annual O&M Costs: Labor Costs Hours/Hourly Monthly Labor:Month Cost Cost Annual Costs Operating Labor Operator 10.18 $23.88]|$243.10 Lineman/Electrician 659 |1$2985)]/$196.71 Subtotal Operating Labor 16.77 $439.81 $5,278 Administrative Labor Bookkeeper 20 $19.10]|$382.08 Utility Manager 0 $$-$- Subtotal Administrative Labor 20 $382.08 $4,585 Materials: Materials &Equipment $3,276 Annual Top End Overhaul $2,988 Outside Labor $600 Other Costs: Training (Lump Sum)$500 Annual Audit (Lump Sum)$1,000 Office Expenses $500 Insurance $10,000 Total Annual O&M Costs |$28,726 Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 23 of 37 TABLE D 40 YEAR "O and M"SCHEDULE .Assumed Year Annual ORM Katte Collectable O&M Surcharge P ear KwH/Year $/KwH 1 $28,726 218,779 196,901 ||$0.146 2 $29,157 220,967 198,870 ||$0.147 3 $29,594 223,176 ||---200,859 ||$0.147 4 $30,038 225,408 202,867 ||$0.148 5 $30,489 227,662 204,896 ||$0.149 6 $30,946 229,939 ||206,945]|$0.150 7 $31,410 |232,238 209,014 ||$0.150 8 $31,882,234,561 211,104 ||$0.151 9 $32,360 236,906]|213,215]|$0.152 10 $32,845 239,275 215,348 ||$0.153 11 $33,338 241,668]|217,501 ||$0.153 12 $33,838 244,085 219,676}|$(0.154 13 $34,346 246,525 221,873 ||$0.155 14 $34,861 248,991 224,092 ||$0.156 15 $35,384 251,481,226,333||$0.156 16 $35,914 253,995 228,596 ||$0.157 17 $36,453 256,535 230,882 ||$0.158 18 $37,000|259,101 233,191 ||$0.159 19 $37,555 261,692 235,523 ||$0.159 20 $38,118 264,309 237,878|{|$0.160 21 $38,690 266,952.240,257||$0.161 22 $39,270 269,621 242,659}|$(0.162 23 $39,859 272,317,245,086]|$(0.16324[$40,457 275,041||247,537]|$0.163 25 $41,064 277,791 ||_--250,012 ||$0.164 26 -|$41,680 280,569.252,512)|}$0.165 27 «([$42,305 283,375.255,037||$0.16623Od$42,940 286,208||257,588 ||$0.167 29 $43,584 289,070 260,163 ||$0.168 30 $44,238 291,961 262,765||$0.168 31 $44,901 294,881 265,393 ||$0.169 32 $45,575|297,830 268,047 ||$0.170 33 $46,258 300,808 270,727 ||$0.171 34 $46,952.303,816 |273,434 ||$0.172 35 $47,657|306,854 ||---276,169 ||$0.173 36 $48,371 309,923.278,930]|$0.173 37 $49,097 313,022||_--281,720 ||$0.174 38 $49,834 316,152,284,537||$0.175 39 $50,581 319,314 287,382 ||$0.176 40 $51,340 322,507 |290,256 ||$0.177 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 24 of 37 Inflation Rate Collection Rate 1.5% 90% Inflation Rate TABLE E ANNUAL FUEL COSTS KwH Produced per Gallon Estimated Total Total Fuel Usage Assumed Year Fuel Cost per Generated @ °Total Annual Collectable Fuel Cost Gallon KwH/Year ||14KwH/Gallon ||FY!||xwtt/vear |*/K¥H 1 $1.55 255,762}|==:18,269]|$28,317 196,901}$0.144 2 $157 258,320]|ss:18,451]|$29,029 198,870}$0.146 3 $1.60 260,903 18,636 ||$29,759|200,859 |$0.148 4 $1.62 263,512 18,822]|$30,507 202,867 |$0.150 5 $1.65 266,147 19,010]|$31,274 204,896 |$0.153 6 $1.67 268,808]| -=-=-19,201]|$32,061.206,945 |§0.155 7 $1.69 271,497 19,393]1$32,867]|209,014 $0.157 8 $1.72 274,211]|--ss:19,587||$33,694]|211,104]$0.160 9 $1.75.276,954||19,782]|$34,541 213,215]$0.162 10 $1.77 279,723 ||19,980]|$35,410 215,348 |$0.164 11 $1.80,282,520 20,180}|$36,301]|217,501}$0.167 12 $1.83 285,346 ||20,382||$37,214]|219,676 1 $0.169 13 $1.85 288,199|20,586]|$38,149 221,873 |$0.172 14 $1.88 291,081 20,792 ||$39,109 224,092|$0.175 15 $1.91 293,992 20,999 ||$40,093]|226,333]$0.177 16 $1.94 296,932.21,209 ||$41,101 228,596 |$0.180 17 $1.97]299,901.21,422]|$42,135.2301882.$0.182 18 |$2.00 302,900}|21,636 ||$43,194|233,191]$0.185 19 $2.03 305,929 24,852)|$44,281.235,523|$0.188 20 =|$2.06 308,988]| --22,071||$45,394]|337,878|$0.19120[$2.09 312,078 -22,291||$46,536]|-240,257|$0.194 22 $2.12 315,199 || 22,514[|$47,706]|242,659 $0.197 23 $2.15 318,351 22,739 ||$48,906]|_-245,086}$0.200 24 $2.18 321,535 22,967]|$50,136 247,537]$0.203 25 $2.22 324,750 23,196]|$51,397}|250,012 |$-_(0.206 26 $2.25 327,997 ||_23,428]|$52,690]|252,512)$0.209 27 $2.28|331,277 23,663)|$54,015]|255,037]$0.212 28 $2.32 334,590||23,899]|$55,373 257,588 |$0.215 29 $2.35 337,936]|24,138 ||$56,766]|260,163 |$0.218 30 $2.39,|341,315 24,380]|$58,194 262,765 |$0.221"31(|g 242]|344,729]|24.623]1 $59,657]|265,393]$0.225 32 $2.46 348,176||--=--«-24,870]|$61,157]|268,047]$(0.228 33 $2.50 351,058 25,118]|$62,696]|_-270,727)$(0.232 34 $2.53 355,174 25,370||$64,272 273,434)$0.235 35 |$2.57]358,726 25,623||$65,889 276,169 |$0.239 36 $2.61 362,313 25,880 ||$67,546.278,930 |$0.242 37 $2.65 365,936 "26,138 ||$69,245.281,720|$0.246 38 $2.69 369,596 26,400]|$70,986]|284,537]$0.249 39 $ 273||373,292 26,664 ||$72,772]|287,382}$0.25340$277 377,025 26,930||$74,602 290,256 |$0.257 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 25 of 37 TABLE F ANNUAL "G and A"AND DEPRECIATION EXPENSES Annual General &Administrative Costs: Salaries Professional Services Office Expenses Total Annual O&M Costs - Annual R&R Depreciation Expense: Depreciation-Other Year Depreciation R&R Assets Total Annual Depreciation 1 [$-[8 1500]|$1,500 2 |$-|$1523;|$si 3 |$-|$1,545]|$_1,545 4 [$-I$1,569||$1,569 5 |$2,464 |$1,592]|$4,056 6 |§2,464 |$1,616]|$4,080 7 I$2,464 |$1,640]|$4,104 8 I$-|$1,665]|$1,665 9 |$-|$1,690| | $1,690 10 |$11,869 |$1,715].|$13,584 1 =|$11,869 |$1,741||$13,610 12 |$11,869 |$1,767||$13,636 13 |$8,392 |$1,793 |$10,186 14 |$8,392 |$1,820]|$10,213 15 |$3,758 |$1,848 ||$5,605 16 |$3,758 |$1,875]|$5,633 17 |$3,758 |$1,903 $5,661 18 |$898 |$1,9321 |$2,830 19 |$898 |§1,961]|$-2,859 20 |$16,434 |§1990}1$18,425 21 |$16,434 |$2020}1$18,455 22 |$16,434 |$2051)|$18,485 23 |$12,649}$2081}|$14,730 24 |$12,649 |$2113,|$=|14,761 2 |$15,316 |$2144,$e 17,460 26 |$15,316 |$2176 |$©17,492 27 |$15316/$----2,209]|$17,525 28 |$11,997 |$2242,|$14,239 29 |$11,997 |$2,276 |.|$14,27230[$24,485 |$2310]|$26,795 31 |$24,485 |$2345||$26,829 32 |$24,485 |$2380}|$26,864 33,|$20,198)$2415]|$22,613 34 (1$20,198]$2,452]|$;22,650 35 |$5,867 |$2,488}|$-8,355 36 |$5,867 |$2,526||$8,393 37 |$5,867|$2,564]|$8,431 38 |$1,711 |$2,602}|$4,313 39 |$1,711 |$2,641]|$-4,352 40 |$30,188 |$2,681}|$32,868 City of Royukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 26 of 37 TABLE G 40 YEAR "R and R"SCHEDULE Year of Present Day |}Annual Inflated Activity R&R Activity Value Total Value R&R Activities:Cost Activity Year 5 Repair Ramp/Site Grading $2,018 Replace Values/Gauges 219 Repair Ramp/Site Grading __$2,018 5/10/15/25/30/35 Repair Siding/Overhead Door 869 Resurface Drive Access __-$4,933 20/40 Upgrade Floors/Walls/Ceilings 1,508 Replace Ramps/Stairs ||LS 12,395]|40 - Mechanical Upgrade 530 PumpReplacement |-|8 254 10/20/30/40 Replace Batteries/Alternators /Etc 1,650 Replace Fuel Tank |$_4,600 40 Repair Ballasts/Lenses 856 |]$7,650 7,8 8,119 Replace Values/Gauges .$_219 _,5/15/25/35 10 Repair Ramp/Site Grading $2,018 Refurbish Electric Systems $343]|10/20/30/40 Pump Replacement 234 Replace Electrical Systeme .$2,625 :”20/40 Refurbish Electric Systems 343 Floor/Roof Repair $607}1 -10/20/30/40Floor/Roof Repair 607 Upgrade Floor/Roofs |$2,647 20/40 Repair Siding/Overhead Door 869 Repair Siding/Overhead Door ._ $869 5/10/15/25/30/35 Repair Roof 551 Replace Siding/Insulation/Windows -|$6,852 _40 7 Change Door Hardware 438 RepairRoof $551 10/20/35 Upgrade Floors/Walls/Ceilings 1,508 Replace Roofing/Insulation__ $5,293 15/35 Mechanical Upgrade 530 Change Door Hardware __fy 438 10/30_ Repair Ducts/Grilles 744 Window Upgrade :--ffs 47 20 Repair Fire Supression System 2,150 Upgrade Floors/Walls/Ceilings_ee $1,508 $/10/15/25/30/35ReplaceBreakers/Fuses 870 Replace Window/Doors_|20/40 Repair Ballasts/Lenses 856 Mechanical Upgrade |§/10/15/25/30/35 Overhaul Genset/Controls 35,625 ||$47,361 [|$54,152 Replacement Mechanical System 4 15 Repair Ramp/Site Grading $2,018 Repair Ducts/Grilles 10/30 Replace Values/Gauges 219 Refurbish Ducts/Grilles 20/40 Repair Siding/Overhead Door 869 Repair Fire Supression System 10/30 Upgrade Floors/Walls/Ceilings 1,508 Replace Fire Supression System __Sh 0 Mechanical Upgrade 530 Replace Breakers/Fuses Cd LS - W/80 Replace Batteries/Alternators/Ete 1,650 RepairBallasts/Lenses =||S856 ||5/10/15/25/30/35 Repair Ballasts/Lenses 856 Replace Panels/Switches/Fixtures/Alarms ||$16,951]|20/40, Replace Roofing/Insulation -.5,293 JP $12,943 YS 15,942 Overhaul Genset/Controls dT |S$35,625]|10/30 20 Pump Replacement $254 Replace Gensets/Feeders &Conductors||$94,875 |]20/40 - Refurbish Electric Systems 343 Replace Batteries/Altemators/Etc,||$1,650]|5/15/25/35 Floor/Roof Repair 607 Replace Conductors/Transformers /Controls $37,275 40 Repair Roof 551 Window Upgrade 477 (Note:O&M and R&R Cost Estimates are estimated at 50%of enclosed cost estimate) Resurface Drive Access 4,933 Replace Electrical Systems 2,625 Upgrade Floor/Roofs 2,647 Replace Window/Doors 6,328 Refurbish Ducts/Grilles 3,780 Inflation Rate Replace Panels /Switches/Fixtures/Alarms 16,951 Reinvestment Rate Replace Gensets/Feeders &Conductors 94,875 ||$134,370 ||$178,302 25 Repair Ramp/Site Grading $2,018 Replace Values/Gauges 219 Repair Siding/Overhead Door 869 Upgrade Floors/Walls /Ceilings 1,508 Mechanical Upgrade 530) Replace Batteries/Alternators/Etc 1,650 Repair Ballasts /Lenses 856 |]$7,650 |]$«10,935 30 Repair Ramp/Site Grading $2,018 Pump Replacement 254 Refurbish Electric Systems 343 Floor/Roof Repair 607 Repair Siding/Overhead Door 869 Change Door Hardware 438 Upgrade Floors/Walls/Ceilings 1,508 Mechanical Upgrade 530 Repair Ducts/Grilles 744 Repair Fire Supression System 2,150 Replace Breakers/Fuses 870 Repair Ballasts/Lenses 856 Overhaul Genset/Controls _35,625 ||$46,810 |}$72,087 35 Repair Ramp/Site Grading $2,018 Replace Values/Gauges 219 Repair Siding/Overhead Door 869 Repair Roof 551 Upgrade Floors/Walls/Ceilings 1,508 Mechanical Upgrade 530 Replace Batteries /Alternators/Etc 1,650 Repair Ballasts/Lenses 856 Replace Roofing/Insulanon |52934]$13,493 |]$22,385 40 Pump Replacement $254 Refurbish Electric Systems 343 Floor/Roof Repair 607 Resurface Drive Access 4,933 Replace Ramps/Stairs 12,395 Replace Fuel Tank 4,600 Replace Electrical Systems 2,625 Upgrade Floor/Roofs 2,647 Replace Siding/Insulation/Windows 6,852 Replace Window/Doors 6,328 Replacement Mechanical Systems 21,600 Refurbish Ducts/Grilles 3,780 Replace Fire Supression System 14,250 Replace Panels /Switches/Fixtures/Alarms 16,951 Replace Conductors/Transformers/Controls 37,275 Replace Gensets/Feeders &Conductors 94,875 ||$230,314 [|$411,619 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 27 of 37 TABLE H 40 YEAR RENEWAL AND REPLACEMENT CASHFLOW R &R Fund Balance Assumed R&R Year nee of Annual Renewals/Eaminge (Net nna of Collectable Surcharge Balance Deposits Replacements of Fees)Balance KwH/Year $/KwH 1 $-$7,876 $-|$7,876 196,901 $0.040 2 $7,876 |$8,193 $236 |$16,306 198,870 $0.041 3 $16,306 |$8,524 $489 |$25,319 200,859 $0.042 4 $25,319 |$8,867 $760 |$34,945 202,867 $0.044 5 $34,945 |$9,224 1 $8,119 |$805 |$36,855 204,896 $0.045 6 $36,855 |$9,596 $737|$47,189 206,945 $0.046 7 $47,189 |$9,983 $944/$58,115 209,014 $0.048 8 $58,115 |$10,385 $1,162 |$69,663 211,104 |[$0.049 9 $69,663 |$10,804 $1,393 |$81,860 213,215 $0.051 10 $81,860 |$11,239 |$54,152 |$5541 $39,502 215,348 |[$0.052 11 $39,502 |$11,692 $790 |$51,984 217,501 ||$0.054 12 $51,984 |$12,163 $1,040 |$65,187 219,676 $0.055 13 $65,187 |$12,654 $1,304 |$79,144 221,873 $0.057 14 $79,144 |$13,163 $1,583 |$93,890 224,092 |$0.059 15 $93,890 |$13,694 |$15,942 |$1,559 |$93,201 226,333 $0.061 | 16 $93,201 |$14,246 $1,864 [3 109,311 228,596 $0.062 17 $109,311 |$14,820 $2,186 |$126,317 230,882 ||$0.064 18 $126,317 |$15,417 $2,526 |$144,260 233,191 ||$0.066 19 $144,260]$16,038 $2,885 |$163,184 235,523 $0.068 20 $163,184 |$16,685 |$178,302 |$-|$1,567 237,878 $0.070 21 $1,567 |$17,357 $31]$18,955 |240,257 $0.072 22 $18,955 |$18,057 $379 |$37,391 |242,659 ||$0.074 23 $37,391 |$18,784 $748 1 $56,923 245,086 $0.077 24 $56,923 |$19,541 $1,138 |$77,603 247,537 $0.079 25 |$77,603 |$20,329 |$10,935 |$1,333 |$88,330 250,012 $0.081 26 $88,330 |$21,148 $1,767 |$111,245 252,512 $0.084 27 $111,245]$22,000 $2,225 |$135,470 255,037 $0.086 28 $135,470]$22,887 $2,709 |$161,067 257,588 $0.089 29 $161,067 |$23,809 $3,221 |$188,097 260,163 |1 $0.092 30 $188,097 |$24,769 |$72,087 |$2,320]$143,100 262,765 $0.094 31 $143,100 |$25,767 $2,862 |$171,729 265,393 ||$0.097 32 $171,729 |$26,806 $3,435 |$201,969 268,047 $0.100 33 $201,969 |$27,886 $4,039 |$233,894 270,727 $0.103 34 $233,894 |$29,010 $4,678 |$267,581 273,434 $0.106 35 $267,581 |$30,179 |$22,385 |$4,904 |$280,279 276,169 |1 $0.109 36 $280,279 |$31,395 $5,606 |$317,279 278,930 |1 $0.113 37 $317,279 |$32,660 $6,346 |$356,285 281,720 $0.116 38 $356,285 |$33,976 $7,126 |$397,387 284,537 $0.119 39 $397,387 |$35,346 $7,948 |$440,680 287,382 $0.123 40 $440,680 |$36,770 1$411,619 |$581 |$66,412 290,256 |[$0.127| City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 28 of 37 Inflation Rate : Reinvestment Rate : Escrow Fees: Initial KwH Collectable : Initial Cost per KwH : Annual increase : 150% 3.00% 196,901 $0.040 3% FINANCIAL TABLES -BULK FUEL STORAGE City of KoyukukBulkFuelFacility and Electric Utility Upgrade Business Operating Plan Page 29 of 37 TABLE I Summary of Facility Expenses to Participants City of Koyukuk YKSD NA y O&M R&R Total O&M R&R Total O&M R&R Totalear Annual $$Per Annual $$Per Total Total Per Annual $$Per Annual $$Per Total Total Per Annual $8 Per Annual $$Per Toral Total Per Payments Gallon Payments Gallon Payments Gallon Payments Gallon Payments Gallon Payments Gallon Payments |Gallon [|Payments |Gallon |Payments |Gallon 1 $12290|/$O160]$8855;$O1154$21,145)$O275/1$2644)§$0.185]$715{$0.050]$§3,359|$0.23511 $-|$$-|$-|$-{$§- 2 $12,475;$0.160($9,223/$0.118]$21,698|$0279/)$2,683!)$0.187]$740!$0.052]$§3,424/$0.238]|$-|$$-|$-|$-|$- 3 $12662|$0.161]$9,607;$0.122]$22,269/$02831))$2724/3 0.189]$§766|$0.053]$3,490 |$0.24211 $-($$-|$-|$-|$- 4 $12,852/$0.161]$10,008|$0.126]$22,860/$O.287/}$2,764|$0.190]$793 |$ 0.055]$3,558|$0.245}]$-|$$-|$-|$-|$- 5 $13,044]$0.162]$10,427]$0.129]$23,472|$0.291/]$2806/3 0.192]5 821|$0.056]$3,627 |$0.2491 |$-1$$-|$-|$-|$- 6 $13,240)$0.162}$10,864/$0.133]$24104)$O296}]$2,848|$0.194)$5 850/$0.058]$§3,698|$0.252]|$-|$$-($-{$-|$. 7 $13,439]$0163]$11,321)$0.137]$24,759;$O300}]$2891/$0.196)$880 |$0.060]$3,770 |$0.256 |4 §-|$$-|$-{$-|$- 8 $13,640}$0164)$11,797;$0.141]$25438!$O305)1/$2,934/$0.198]$9111 $0061/5 3,845 |$0.260]|$-[$$-($-|$-{$- 9 $13,845)S$0164]$12295)$0.146]$26140/$O310){$2,978)$0.200]$5 943 |$0.063]$§3,921|$0.263}]$§-1$$-|$-|$-{$- 10 J]$14053|$0.165[$12,815|$0.150;$26868|$0315/]$3,023|$0202/$976|$ 0.065]$3,999 |$O.267]}]5 -{$$-{$-|$-|$- "1 $14263)$0.165}$13,358|$0155]$27,622;$0320){$3,068/$0.204/$1,010/$0.067/$§4,078 |$0.271}]$-1$$-|$-|$-|$- 12 |$14477/$0165|$13,926)$0.159]$28403,$0325/]$3,114;38 0.206/$1,046|$0.069]§4,160|$O.275}]$-|$$-|$-|$-|$- 13,|$14694;$0166]$14518)$0.164]$29213 $0330);$8 3,161/$0.208/$1082/3 0.071/$4,243 [$ O2797 1 $-{$$-|$-{|$-|$- 14 |$14915]$0166]$15,138)$0169/$30,052)$0.335})$8 3,208)$0O210]$1,120|$0.073|$4329 |$0.284]1$-|$$-[$-{$-|$- 15 |]$15,139}$0167]$15,785|$O174|$30,923)$0.341 $ _3,256|$O212|$1,160|$0.076|§4416 [$0.288];1 $-!$$-(3$-1$-{$- 16 |$15,366/$0.1671 $16461 /$O.179/$31,827,|$O346]/17$3,305)$0214/$1,200|$ 0.078/$4,506 |$0.292];135 -|$$-($-{$-{$- 17,|$15,596}$0.168]$17,168/$0.185}$32,764;$O352])]$3,355|$0.217|/$1,243;$0.080/$4598 |$0.297 |1 $-1$$-|$-{$-|$- 18 |$15,8301$0.168]$17,907;$0190]$33,737{$0O358]/]$3,405'$0.219]$1,286/$ 0.083/$4692/$O.301/1$-1$$-[$-{$-|$-"19 [S$16068/$0168|/$18679/$0196|$34,747/$O304;/[$3,456,/$0.221]$1,332 |$ 0.085|$4,788 |$0.306]1S -|$$-($-{$-|$- 20 [S$16,309)$0169]$19,487}$0202]$35,795)$O370;4$3,508:$0.2231 $1,378 |$0.088 |§4,886 |$O311}]$-($$-($-{$-|$- 21 [$16553)$0169]$20,331!$0.208]$36884)S$O377)1$3,561/$0225/$1,427|$0.090]$4,988/$0.316]7$-[s $-1$-|$-|$- 22 {$16,802;$0.169)$21,214;$0.214]$38016)$0383}13 3,614)$0228/$1,477|$0.093/$5,091 ]$O3214/1$§-|s $-|3$-|$-|$- 23 |$17,0541$0.170]$22,137|$0.220]$39,191/$O390}]$3,668)$0.230/$1529)$ 0.096|$5,197 |$0.3261 |$-[$$-I|$-{$-{$- 24 [S$17309/$0.170]$23,103)$0.2271$40,413/$0397]]$3,723|$0232/8 1,583|$0.099/$5,306 |$0.331 1 |$-($$-|$-|$-|$- 25 {$17,569;$O.170|$24113/$0234]$41682}$0404/78 3,779|$0.234/$1638/)$0.102/$5,417 |$0.336 ||$-|$$-{s -|$-{$- 26 |$17,833 |$0.171}$25,170|$0.241]$43,002|$0411)]7$3,836;$0237;$1696'$0.105/$5,532 |$0.341 1 1 $-[$$-[$-|$-|$§- 27 |$18100|$ O171{$26,2751 $0.248)$44,375)$041971 $3,893 |$0.239]§1,755 |$0.108 |$5,649 |$0.347 7 |$-|$$-($-|§-|$. 28 |$ 18,371|$O.171|]$27,432;$0.255|]$45,803|$0427/]$3,952|$0242/$1,817|$O111/$5,769 |$0.3531 |$-[$$-1$-1$-|$- 29 |$18647;$0.171]$28642)$0.263|$47,289)$0434//$4011;$0.244]$1,881 |$ 0O.114/§5,892 |$0.358 1 |$-|$$-|$-{$-|$- 30 |$18,927;$O4171[$29,909}$O271/$48835|)$0443118 4071;$0.246/$1,947|$ 0.118}$6018/5 0.364 1 |$-($$-1$-|$-|$- 31 |$19,211 |$0.172]$31,234)$0.279)$504451 S$0451)1S 4132/8 0249/3 2016/3 0.121)$6,148 |$0.370 ||$-[$$-|$-|$-|$- 32 [$19,4991$0172]$32,621)$0288]$52120|$O459/]$4194/$O251/$2,086|$0125]/$6,281|/$0376)]$-[$$-|$-|$-|$- 33 |$19,791)$0172]$34074/$0296|$53,865|/$0468)]$4,257/$0254/$2,860|$0129/$6,417 |$0.383 ||$-1$$-[$-|$-{$- 34,7$20,088)$0.172]$35,5941 $0305/8 55,682|/$O477/13 4321)$8 0256/3 2236/$0.133/$6,557 |$0.389 ||$-|$$-{$-|$-{$- 35 1$20390;$O4172|$37,186|$0314]$57,575;$0486/18 43861$0259/$2314/3 0.13715 6,700 |$0395]]$-($$-1$-{$-|$. 36 |$20695|$0.1721 $38852/$0.324}$59,548;$0496/]$4452/$0.2614/$2396/$O141/$6,847 1$0402/1 ]5 -([$$-{$-{$-|$- 37 |$21,006/$0172)$40,598|$0.33375 61,604)$0.506/]$4519/$0264/$2480)$0.145/$6,998 ;/$0409/15 -|$$-|$-|$-|$- 38 1$21,321)$0.173]$42,426]$0.343]$63,747|$0516/48 4586|$0267}$2,567)$0.149/$7,153 }$0416]]§-|$$-|$-{$-1$§- 39 {|$21,641/$0173]$443401)$0354/8 65,981|$0526/]$4655|$0269]/$2,657/$0.154/$§7,312}$0423];1$-($$-|$-|$-\|§-_ | 40 |[$24,965'$ 0.173|$463451 $ 0.364/$68311 '$0.53771$ 4,7251$ 0.2721{$2,751)$0.158]$7,476|$0.43011 $-!§$-1$-|$-1$- City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 30 of 37 TABLE J PARTICIPANT ALLOCATION City YKSD NA Total Primary Capacity (Net)Gallons 94,410 15,300 0 109,710 Percentage 86.1%]|13.9%0.0%100% Initial Throughput Gallons 77,000 14,300 0 91,300 Volumes Percentage 84.3%15.7%0.0%100% %Share of O&M and R&R on Common Assets 86.1%13.9%0.0%100% ___(based upon Primary Capacity)|tt TABLE K ANNUAL O&M COSTS Annual O&M Costs City YKSD NA Total Annual O&M Expenses (per HMS cost estimate)$9,860 ||$2,574 ||$-$12,434 Common Power Costs (estimated based upon current)|$4301 |$70)|$-$500 Insurance (based upon AML insurance rates)$2,000 ||$-$-$2,000 $12,290 ||$2,644 ||$-$14,934 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 31 of 37 TABLE L 40 YEAR "O and M"CASHFLOW Initial Throughput -Gallons:Throughput Growth Rate: City Diesel Consumption 53,000 City Diesel Consumption 0.50% Inflation Rate Gasoline Consumption 24,000 Gasoline Consumption 2.50% YKSD Gasoline Consumption 14,300 YKSD 0.50% NA Diesel Consumption -NA 0.00%: Annual O&M Expense Assumed Throughput (Gallons)Per Gallon O&M Payment City Year City YKSD NA Total YKSD NA City YKSD NADieselGasoline .-TotalConsumpton|Consumption 1 $12,290 |$2,644 |$$14,934 53,000 24,000 77,000 14,300 $0.160 |$0.185 |$- 2 $12,475 |$2,683 |$$15,158 53,265 24,600 77,865 14,372 $0.160 |$0.187 |$: 3 $12,662 |$2,724 |$$15,385 53,531 25,215 78,746 14,443 $0.161 |$0.189 |$: 4 $12,852 |$2,764 |$$15,616 53,799 25,845 79,644 14,516 $0.161 |$0.190 }$- 5 $13,044 |$2,806 |$$15,850 54,068 26,492 80,559 14,588 $0.162 |$0.192 |$: 6 $13,240 |$2,848 |$$16,088 54,338 27,154 81,492 14,661 E 0.162 |$0.194 |$: 7 $13,439 |$2,891 |$$16,329 54,610 27,833 82,443 14,734 $0.163 |$0.196 |$- 8 $13,640 |$2,934 1 $$16,574 54,883 28,528 83,412 14,808 $0.164 |$0.198 |$- 9 $13,845 |$2,978 |$$16,823 |55,157 |29,242 84,399 14,882 $0.164 |$0.200 |$- 10 $14,053 |$3,023 |$$17,075 55,433 |29,973 85,406 14,957 $0.165 |$0.202 |$- | 11 $14,263 |$3,068 |$$17,332 55,710 30,722 86,432 15,031 $0.165 |$0.204 |$- 12 $14,477 |$3,114 |$$17,591 55,989 31,490 87,479 15,106 j $0.165 |$0.206 |$- 13 $14,694 |$3,161 |$$17,855 |56,269 32,277 88,546 15,182 $0.166 |$0.208 |$- | 14 $14,915 |$3,208 |$$18,123 56,550 33,084 89,635 15,258 $0.166 |$0.210 |$- | 15 $15,139 |$3,256 |$$18,395 56,833 33,911 90,744 15,334 $0.167 |$0.212 |$- 16 $15,366 |$3,305 |$$18,671 57,117 34,759 91,876 15,411 $0.167 |$0.214 |$- 17 $15,596 |$3,355 |$$18,951 57,403 35,628 93,031 15,488 $0.168 |$0.217 |$: 18 $15,830 |$3,405 |$$19,235 57,690 36,519 94,209 15,565 $0.168 |$0.219 |$: 19 $16,068 |$3,456 |$$19,524 57,978 37,432 95,410 15,643 $0.168 |$0.221 |$- 20 $16,309 |$3,508 |$$19,817 58,268 38,368 96,636 15,721 i$0.169 |$0.223 |$- 21 $16,553 |$3,561 |$$20,114 58,559 39,327 97,886 15,800 $0.169 |$0.225 |$- | 22 $16,802 |$3,614 |$$20,416 58,852 40,310 99,162 15,879 |$0.169 |$0.228 |$- 23 $17,054 |$3,668 |$$20,722 59,147 41,318 100,464 15,958 3 0.170 |$0.230 |$- 24 $17,309 |$3,723 |$$21,033 |59,442 42,351 101,793 16,038 i$0.170 |$0.232 |$- 25 $17,569}$3,779 |$$21,348 59,739 43,409 103,149 16,118 $0.170|[$0.234]§- 26 $17,833 |$3,836 |$$21,668 60,038 44,495 104,533 16,199 $0.171 ]$0.237)$- 27 $18,100 |$3,893 |$$21,993 60,338 45,607 105,945 16,280 $0.171 |$0.239 |$-| 28 $18,371 |$3,952 |$$22,323 60,640 46,747 107,387 16,361 i$0.171 |$0.242 1 $- 29 $18,647 |$4,011 |$$22,658 |60,943 47,916 108,859 16,443 $0.171 |$0.244 |$- 30 $18,927 |$4,071 |$$22,998 61,248 49,114 110,362 16,525 $0.171 |$0.246 |$- 31 $19,211 |$4,132 |$$23,343 61,554 50,342 111,896 16,608 $0.172 |$0.249 |$- 32 $19,499 |$4,194 |$$23,693 61,862 51,600 113,462 16,691 $0.172 |$0.251 |$- 33 $19,791 |$4,257 |$$24,049 62,171 52,890 115,061 16,775 $0.172 |$0.254 |$- 34 $20,088 |$4,321 |$$24,409 62,482 54,212 116,695 16,858 $0.172 |$0.256 |$- 35 $20,390 |$4,386 |$$24,775 62,795 55,568 118,362 16,943 $0.172 |$0.259 |$- 36 $20,695 |$4,452 |$$25,147 63,109 56,957 120,065 17,027 $0.172 |$0.261 |$- 37 $21,006 |$4,519 |$$25,524 63,424 58,381 121,805 17,113 $0.172 |$0.264 |$- 38 $21,321 |$4,586 |$$25,907 63,741 59,840 123,582 17,198 $0.173 |$0.267 |$- 39 $21,641 |$4,655 |$$26,296 64,060 61,336 125,396 17,284 $0.173 |$0.269 |$- 40 $21,965 |$4,725 |$$26,690 64,380 62,870 127,250 17,371 $0.173 |$0.272 |$ City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 32 of 37 TABLE M 40 YEAR "R and R"SCHEDULE Cost Allocation Year of Present Day Inflated |)Yearly Inflated Care _NAActivityR&R Activity Value Value Total Common Common Only NA 5 Electrical Upgrade $3,825 ||$4,060 ||$4,060 ||$4,060 ||$-|{s_-Inflation Rate 10 Fence/Gates Upgrade $4,339 11 $4,962 $3,426 ||$1,536 |]$- Pad Upgrade 48,113 55,011 55,011 -- Dispenser Shed Repair 802 917 917 --R&R Activities:Cost Interval Pump Replacement 10,443 11,940 11,940 --Category City YKSD (Years) Valve Replacement 4,914 5,619 5,619 --Fence/Gates Upgrade BIA $2,996]$1,343 10/30 Repair Fill Lines 2,129 2,434 1,984 450 -Fence/Gate Replacement C1A $12,220]¢820 20/40 Electrical Upgrade 3,825 4,373 4,373 --Pad/Dike/Steps Upgrade BiB |$48113/$ -10/20/30/40 'Tank Inspection 4,200 4,802||$90,058 4,802 Dispenser Shed Repair BiB $802/$-10/30/40 15 Electrical Upgrade $3,825 ||$4,711 [1 $4,711 ||$4,711 $1$-$-Replace Dispenser Enclosure C1B $2,023/$-40 20 Fence/Gate Replacement $13,040 |]$17,304 $16,216 {|$1,088 })$-Pump Replacement B2A $10,443/$-10/20/30/40 Pad Upgrade 48,113 63,843 63,843 -Valve Replacement B2A $4,914/$-10/20/30/40 Pump Replacement 10,443 13,857 13,857 --Electrical Upgrade B3 $3,8251$-§/10/15/25/30/35 Valve Replacement 4,914 6,521 6,521 --Major Electrical c3 $27,900|$-20/40 Major Electrical 27,900 37,022 37,022 --Dispenser Replacement C2A $19,500/$-40 Tank Inspection o 4,200)9,973}|$144,120 5,573 Tank Replacement 1 C2A $141,600|$-40 |25 _'||Electrical Upgrade J,$_3,825 11 $5,468 ||$5,468 ||$5,468 ||$-$-Repair Fill Lines B2B $1,736|$393 10/30 30 Fence/Gates Upgrade $4,339 11 $6,682 $4,614 ||$2,068 ||$-Replace Pipelines 2 C2B $79,546 |$32,269 40 Pad Upgrade 48,113 74,093 74,093 --Tank Inspection C2C $4,200]$-10/20/30 Dispenser Shed Repair 802 1,235 1,235 -- Pump Replacement 10,443 16,081 16,081 --Variances from HMS Cost Estimate: Valve Replacement 4,914 7,567 7,567 --1 Tank Replacement reduced 50% Repair Fill Lines 2,129 3,278 2,673 605 -2 Replace Pipelines for year 20 deleted Electrical Upgrade 3,825 5,890 5,890 -- |st :*[Tank Inspection a 4,200}=G,468])$121,295 6,468 Or $- 35 Electrical Upgrade |$ _-«-3,825||/$«6,346 ]1$«6346J $6,346 11 $-$: 40 Fence/Gate Replacement $13,040 ||$23,306 $21,840 ||$1,466 Pad Upgrade 48,113 85,987 85,987 -| Dispenser Shed Repair 802 1,433 1,433 -- Dispenser Replacement 19,500 34,851 34,851 -- Tank Replacement 141,600 253,069 253,069 -- Replace Dispenser Enclosure 2,023 3,615 3,615 -- Pump Replacement 10,443 18,663 18,663 -- Valve Replacement 4,914 8,782 8,782 -- Major Electrical 27,900 49,863 49,863 -- Replace Pipelines $ 111,815]]$199,838 1)$679,407 ||$142,166 ||$57,672 ||$- $661,588 ]7$1,055,465 {|$1,055,465 |13 990,578 |1 $64,887 |}$- City of Koyukuk Bulk Fuel Facility and Electric Uslity Upgrade Business Operating Plan Page 33 of 37 TABLE N 40 YEAR RENEWAL AND REPLACEMENT CASHFLOW City Inflation Rate :150%Initial Cost per gallon ($/gallon):|$0.115 Reinvestment Rate :3.00%Annual increase :3.0%) Escrow Fees:1.00%City 20 Year R&R:$144,120 City Initial Throughput (gallons):77,000 YKSD 20 Year Loan Proceeds:|$86,472 YKSD Initial Throughput (gallons):14,300 Initial Cost per gallon ($/gallon):|$0.050 Loan Rate:§.50°%NA Initial Throughput (gallons):-Annual increase :3.0% Loan Term:10 Years)NA Initial Cost per gallon ($/gallon):|$- Annual increase :0.0% R &R Fund Balance Assumed Throughput (Galions)Per Galion Payment .of Annual Deposit _.Interest End ofYearnee-Principal 1 Debt Service |.Rete |Exenings (Net Year City YKSD NA City YKSD NABalanceCityYKSDNATotalReceivedReplacementsofFees)Balance rts -|s 8,855 |$715 1$-|$9,570 $-|$-|$9,570 77,000 14,300 -lIs 0.115 |$0.050 |$ 2|Is 9570/$9,223 |§740 |$:9,963 $-|s 287|1$19,820 77,865 14,372 -|[s 0.118 |$0.052 |$3 |[s 19,820[/$9,607 |$766 |$-|$10373 $-|$595|$30,788 78,746 14,443 -|[s 0.122 |$0.053 |$ 4|[s 30,788|/$10,008 '1$793''$-|$10,801 5 -{$924[$42,514 79,644 14,516 -|[s 0.126 |$0.055 |$ 5 |[s 42514/$10,4275 821 1 $-[$11,248 $4,000]$1,154[$50,855 80,559 14,588 -|[s 0.129 |$0.056 |$6 |fs 50,855/$10,864 |$850 |$-lsu74[$-|s 1,526|[$64,095 81,492 14,661 -|[s 0.133 |$0.058 |$ 7){8 64095]$11,3211 880 |$-{$12,200 $-|s 1,923]$78,218|82,443 14,734 -|{s 0.137 |$0.060 |$8 tts 78218]$11,797$911 |$-|$12,708 5 -[$1,5641$92,491 83,412 14,808 -|{s 0.14115 0.061 |$ols 92,491/$12,2951 §943 |$-|$13,238 $-|$1,850]$107,578 84,399 14,882 -|Ts 0.146 |$0.063 |$10]{s__107,578[$12,815!s 976 |$=|$13,791 $90,058 |$350]$31,661 85,406 14,957 __-|qs 0.150]$0.065 |$ Pir]{Ss 31,6ct]$13,3588 1,010 |$-'$14368|$633 [$46,663 86,432 031f|CS 0.155 |§0.067 |§ 12][$s 46,603]$13,926 '$1,046 |$"13 14971 $-[$933 [$62,567|87,479 15,106 __-|Is 0.159 1 $0.069 |$13|[[$s 62567/$14,518!§1,082 |$is 15601[$-|$1,251 |$79,419 88,546 15,182 -|{$0.1641 $0.071 |$14,13 79,419($15,1381 $-1,120/$3 6258f $-|s 1,588[$97,265|89,635 |15,258 -l[s 0.169]$0.073 |$ 15][$s 97,265]$15,785.$1,160 |$$16,945 $471{$1,851 |$111,350 90,744 |15,334 -|[s 0.174/$0.076 |$ 16][$111,350|/5 16,461 "s 4200's-"Ts 17,662 |i $-|$2,227|$131,238 91,876 |15,411 -{{$0.179 |5 0.078|$17 |[s_131238[$17,168 $1,243|5 28184]$-[$2,625]$152,274|93,031 15,488 -{{s 0.185 |$0.080 |$18||s 152274($ 17,907'$1,286!$-13 19,193]$-|$-3,045[$174,513 94,209 15,565 |[s 0.190 |$0.083 |$49}[8 174513]$18679 $1,332!:-[s 20,011|$-[s 3,490]$198,014 95,410 15,643 -|{$s 0.196 |$0.085 |$20|[$s _198,014|]3 19,487 |$1378/3 -'$ 20,865[$85,819 $1441201$2,794]$163,373|96,636 15,721 -|[s_o202]$0.088 |$ 21][s 163373/$-2033118 1,427)$-$21,758 $_11,385.44|$-|3 3,040]$176,785 97,886 15,800[-|[$s -o208]$0.090 |$22|[8 176785]5 21,2145 LaTT|$_-|$22,691 [| s_11,385.44/$-|$_3,308]$191,399 99,162 ig79{fs 02a s 0.093 |$ 234}1$ 191,399]$22,137 $1,529;$-|$23,666]$11,385.44 |$-|$3,000 |$207,280 100,464 15,958 |-{4s 0.220 |$0.096 |$ 24|{$s 207280]$23,103 15 15835 $24,686 $11,385.44 |$-|$3,918|$224,498 101,793 16,038 -l[s._o227[5 0.099 |§ 25 |{$224408]$24113 S$1,638|$-'§25,752 |$11,385.44 [§5,468[$4,153]$237,550 103,149 |16,118 -|[3 0.234 [$0.102 |$26|{$s 237,550[$25170 $1,696 $--'$26,866,$11,385.44 |$-|s 4523|$257,553}|104,533 |16,199 ts 0.241 |$0.105 |$27)[8 257553[$26,275.$1755/8 -'$28,031|$11,385.44]$-|$4,923 |$279,122.105,945 16,280 __-f {$s 0.248 |$0.108|$P28]|$ 279,1221$ 27,432'$1,817!§--'$29,249]$11,385.44 |$-[$_5,355/$302,340 107,387 16,361 |-|[s 0.255 |$0111]$29|[s 302,340[$28,642:$1,881 15 +18 30,5234 $11,385.44 |§-[$5,819]$327,297 108,859 16,443 "-}1s _0203]0.114]$ 30||327297[$29,909:$1,947 /$-,$31,856[$11,385.44[$ 121,295]$3,892 $230,365 110,362 16,525 -|{s 027 1$0.118 |$a1]ls 230,365(531,234.2016'S $33,250]$-1$4,607 |$268,221|111,896 16,608 __-f Ts 0.279 |$0.121]$ P32]{$s 208221]$32,621 $2,086:$-i$34,708.$-|$5,364[$308,294 113,462 16,691 =f ds 0.288 |$0.1251§$ 33)1s 308294[$34074 §2,160 §36,233 $-[3 6,166]$350,693 115,061 16775]|8 0.296 |$0.129 |$134]/$ 350,693[$ 35,594'°$2236'S 37,830 |$-[s _-7,014[$395,537 116,695 16,858 -|]s 0.305 |$0.133 [$35 ||s 395,537[$_37,186'$2314/5 --'$39,500 $6,346[$7,784]$436,475 118,362[16,943 [-|{8 o3i4a]s 0.1371 $ 36)|S 43647515 38,852 $239018 41,248 $-[$8,730]$486,453 120,065 o27[|[S324 s 0.141]$ 37)(8 486,453]5 40,598 $2,480$43,078 $-[$ 9,729[$539,259 121,805 17,113 _-|[s_0333[s ors]53a|{3 539,259]$42,426,$3 _44993 [$-1s 10,785 [$595,037 123,582[17,98 5 0.149 |$39;|s 595,037[$44,340.$46,997 |$-1$11,901 |$653,935 125,396 |17,284 "|[s_5 0.154]$40 ||S 65393545 46,345 S$2,751 49,096 3 679,407 $24213 23,866 127,250 17,371 TE ls is oases City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 34 of 37 TABLE N -PAGE2 Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 35 of 37 R and R Participant Payment Schedul City YKSD NA R &R Fund Balance R &R Fund Balance R &R Fund Balance Year]B®°F 1 pamuat |Principal __|Renewals/|.terest Year]B&F |pseu |Principal |Renewals/|__Interest Year]Bee of |Annual |Principal]Debt |Renewals/|InterestBeDepositReceivedDebtServiceReplacements,at Total pat.Deposit Received Debt Service Replacements a ee |Total Bee Deposit |Received Service |Replacements Over of ees Toral 1 4$-_[$8855 $-|$8,855 11$-_|$715 $-1$75 1 ss -_|$-$ t$ 2 4$8,855 |$9,223 $266|$18,344 2 18 715 |$740 $21;)$1,477 2 18 -$-$-1$ 3 4$18,344|$9,607 $550|$28,501 3 4$1,477 |$766 $44|$2,287 3 4S -|$-$-T$ 4 4$28501/$10,008 $855 1$39,365 44$2,287 |$793 $691 §$3,149 4 4$-$-$-|$ 5 |S 39,365 |$10,427 4,0001$ 1,059|$46,791 5 [s 31491$821 $-[$s 941$4,004 5 |s -|$:$-Is -T$ 6 [$ 46,791/$10,864 $1,404;$59,059 6 1$4,064 |$850 $122 |$5,036 6 4$-$:$-|$ 7 F$59,059 /$11,321 $1,772;$72,152 7 $5,036 |$880 $1511 $6,067 7 $-$-$-1$ 8 {$72152)$11,797 $1,443 |$85,392 8 Es 6,067 |$911 $121/$7,099 8 4S -_|$-$-1§$ 9 ES 85,392)$12,295 $1,708 |$99,395 9 I$7,099 |$943 $142 |$8,183 9 1S :$:$-!$ 10 [$99,395 |$12,815 88,072 |$226|$24,364 10 [$8,183 |$976 $1,985 |$124,;$7,298 10 1$-|$-$:$-|$ 1 [$24,364 |$13,358 $487 $38,210 11 =U$7,298 |$1,010 $146 |$8,454 11-+$-_[$-$-|$ 12 |$38210 |$13,926 $764|$52,900 12 1$§8,454 |$1,046 $169|$9,668 12:1$-|$-$-1$ 13 $$ 52,900|$14,518 $1,058 |$68,476 13 |$9,668 |$1,082 $193 |$10,944 13 T$-$-$-|$ 14 |$68476 |$15,138 $1,370)$84,983 14 [$10,944 /$1,120 $219 |$12,283 14 1$:$-$-|$ 15 [$84,983 |$15,785 4711 /$1,605 |$97,662.15 [$12,283 $1,160 $:$246[$13,688 15 [$-$-$:$-|$ 16 [$ 97,662/$16,461 $1,953 |$116,077 16 J$13,688 |$1,200 $274;$15,163 16 4$-$:$-{$ 17 [$116,077 |$17,168 $2,322 |$135,566 17 [$15,163 |$1,243 $3031 $16,709 17:4$-_|$-$-l$ 18 F$135,566 |$17,907 $2,711 |$156,184 18 [$16,709 |§1,286 $334($18329 18 1$-$-$-1$ 19 J $156,184 |$18,679 $3,124 |$177,987 19 [$18,329 |$1,332 $367 {$20,027 19 I$-$-$-1$ 20 |$177,987 |$19,487 |$85,819 143,032 |$2,415 |$142,677 20 {$2002715 1,378 |$-$1,088 |$379 |$20,697 20 |$$-|$-$-$-|$ 21:4$142677 |$20,331 $11,385 $2,626 |$154,249 21 |S 20697 |$1,427 $:$414 |$22537 21 1$:$:$$-|$ 22 JS 154,249)$21,214 $11,385 $2,857 |$166,935 22 |$225371 $1,477 $:s 451 ($24,465 22 4$-$=$:$-|$ 23 J$166,935 |$22,137 $11,385 $3,111 |$180,798 23:[$24,465 |$1,529 $:$489 |$26,483 23 1$:$:$:$-|$ 24 [S$180,798 |$23,103 $11,385 $3,388 |$195,904 24 7$26,483 |$1,583 $:$530 |$28,596 24 15 :$:$:$-|$§ 25 FS 195,904 |$24,113 $11,385 5,468 |$3,581 |$206,745 25 [$28,596 |$1,638 $-\$:$572[$30,806 25 {$=$-$-|$:$-|$ 26 [$206,745 |$25,170 $11,385 $3,907 |$224,436 26 [$30,806 |$1,696 $:$616 |$33,118 26 1{$-$:$:$-|$ 27 [$224,436 |$26,275 $11,385 $4,261 |$243,587 27 [$33,118 |§$1,755 $-$662 |$35,535 27 4S $-$-$-|$ 28 [S$243,587 |$27,432 $11,385 $4,644 |$264,277 28 7S 35,535 |$1,817 $:$711 |$38,063 28 |$$:$.$-1$ 29:7$264,277 |$28,642 $11,385 $5,058 |$286,592 29 [$38,063 |$1,881 $=$761 |$40,706 29:I$-$:$-$-|1§ 30 J $286,592}$29,909 $11,385 118,621 |$3,132 |$189,626 30 [$40,706 |$1,947 $-|$2,673 |$761 |$40,740 30_-1$>$:$$:$-|$ 31_[$189,626 |$31,234 $3,793 {|$224,652 fF]31 [$40,740 |$2,016 $815 [$43,571 Ff 31 1$.$-$-1$ 32 I$224,652 |$32,621 $4,493 |$261,767 32 S$43,571 |§2,086 $871 |$46,528 32:18 :$-$-|$ 33.4$261,767 |$34,074 $5,235 |$301,076 33 [S$46,528 |$2,160 $931 /$49,619 33:1$a $-$-|$ 34 [$301,076 |$35,594 $6,022 |$_342,691 34 [$49,619|$2,236 $992 |$52847 34S -{$s -$ 1§ 35 |$342691 ;$37,186 6346 [$6,727 |$380,258 |]35 |$5287/8 2,314 $-_|$1,057 |$56,218 35 1$-_|s -$-|$-1$ 36 |$380,258 |$38,852 $7,005 |$426,716 36 {S$56,218 /1$2396 $1,124 1 $59,738 36 4$-{$s -$ 1$ 37 ]$426,716}$40,598 $8534 |$475,848 37 [$59,738|/$2,480 $1,195 |$63,413 37:-1$-t$-$-1$ 38 [$475,848 1$42,426 $9,517 |$527,790 38 I$63413 /$2,567 $1,268 |$67,248 38 4$-_|$-$-1$ 39 [$527,790;$44,340 $10,556 |$582,686 39 FS 67,248/$2,657 $1,345 |$71,250 30 I$-|$-$-1$ 40 JS 582,686'$46,345 620,269 |$-'$8,763 40 TS 71,250'$=2.751 $59,138 '$242'$15,105 40 4$-'$-'§$-$$-$ City of Koyukuk =City of Koyukuk TABLE O Loan Schedule Year 20 R&R Loan -City Principal $85,819 Term 10 Years Rate 5.5% Payment $(11,385.44) Beginning Principal |Ending Year Balance Interest Payment |Payment |Balance1__[S_85,819.20 §4,720.06 |($11,385.44)|$6,665.39[$79,153.81__2 [$79,153.81]$4,353.46 |($11,385.44)|$7,031.98|$_72,121.833|$_72,121.83/$3,966.70|_($11,385.44)|$_7,418.74|$64,703.09"4 |$64,703.09 |3,558.67|($11,385.44)|§_7,826.7 |$56,876.325[$856,87632/$3,128.20|($11,385.44)|$8,257.24 $48,619.086_|$48,619.08 |2,674.05 |_($11,385.44)|$8,711.39 |$__39,907.687|$39,907.68]2,194.92 |_($11,385.44)|$9,190.52 $_30,717.16_8 |$30,717.16]$1,089.44|($11,385.44)|$9,696.00]$_21,021.179|$21,02117|$1,156.16 |($11,385.44)|$10,229.28|$10,791.8910$10,791.89 |$593.55 |($11,385.44)|$10,791.89 |$(0.00) $28,035.22 ($113,854.42)$85,819.20 Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 36 of 37 APPENDIX A:PRIMARY OPERATOR STATEMENT OF QUALIFICATION The Primary Operator Statement of Qualification includes: 1.A description of the Primary Operator,its personnel and experience,and its responsibilities and functions.This discussion includes a description of the ability and history of the Primary Operator to operate a bulk fuel facility as a business and/or its history of operating other business enterprises,as well as a description of the Primary Operator's fiscal controls and accounting procedures.This discussion details organization history,management and structure;identification of key personnel,their experience and responsibilities;and,proposed organization of bulk fuel facility management and operations,including an organizational chart. 2.A description of the Primary Operator's,if any,staffing or training needs. 3.A description of the training plan proposed by the Primary Operator to address current and future needs. City of KoyukukBulkFuelFacility and Electric Utility Upgrade Business Operating Plan Page 37 of 37 CITY OF KOYUKUK Organization History The Koyukon Athabascans traditionally had spring,summer,fall and winter camps,and moved as the wild game migrated,with 12 summer fish camps located on the Yukon River between the Koyukuk River and the Nowitna River.A Russian trading post was established at nearby Nulato in 1838 and a smallpox epidemic,the first of several major epidemics,struck the Koyukon in 1839.A military telegraph line was constructed along the north side of the Yukon around 1867 and, subsequently,Koyukuk became the site of a telegraph station.Just before the gold rush of 1884-85 a trading post opened and the population of Koyukuk was approximately 150.Missionary activity was intense along the Yukon River,and a Roman Catholic Mission and school opened downriver in Nulato in 1887.Steamboats on the Yukon,which supplied gold prospectors,peaked in 1900 with 46 boats in operation.A measles epidemic and food shortages during 1900 tragically reduced the Native population by one-third.Gold seekers left the Yukon area after 1906,but other mining activity,such as the Galena lead mines,began operating in 1919.The first Koyukuk school was constructed in 1939,which led to families living in Koyukuk year-round.The City government was incorporated in 1973. Today,the community of Koyukuk is primarily Koyukon Athabascans with approximately 101 year round residents.Most residents depend on a subsistence lifestyle for most food sources,while employment is primarily with the school,City,health clinic and store.Seasonal jobs include BLM fire fighting and construction work and two residents hold commercial fishing permits.Trapping and beadwork provide supplemental incomes for some residents. The City of Koyukuk has successfully administered and operated a wide variety of community programs.The following table lists the City's active programs and grants: CURRENT SERVICES AND PROGRAMS Village Health Clinic Community Programs:Library Landfill Water and Sewer Haul Service Electric Utility Water Treatment Plant Washeteria Volunteer Fire/EMS City of KoyukukBulkFuelFacility and Electric Utility Upgrade Business Operating Plan Appendix A-1 Description of Business History The City of Koyukuk manages and operates the following utilities:electric,water and sewer haul service.Currently,community residents and businesses pay for all of these utility services. The City of Koyukuk owns and operates the community's electric generator plant.City employees maintain the generator plant,monitor electric meters at residences and commercial businesses,and collect electrical fees.Currently,residents and businesses are paying 45 cents/kilowatt per hour and the school is paying 33 cents/kilowatt per hour.The City participates in the Power Cost Equalization Program. The City purchases fuel twice a year in the spring and fall from Yukon Fuel.Deliveries are made by barge.The fall of 2001 fuel delivery included approximately 10,000 gallons of diesel and 11,000 gallons of gasoline.The spring of 2002 fuel delivery included approximately 5,000 gallons of diesel and 7,000 gallons of gasoline.The diesel fuel purchased by the City is used to operate the electric generator plant and to heat City buildings.Resident must purchase heating fuel in the communities of Galena and Nulato by traveling down or up the Yukon River by boat or snow machine.The City sells gasoline fuel in the community for $3.10 per gallon. Description of Fiscal Controls and Accounting Procedures All check requests must have supporting documents prior to being processed by the City's Clerk. The City Administrator ensures that program budgets are followed,however all checks must be signed by two of the Council Members.A copy of the check is attached to the supporting documents and filed at the City office.The City staff uses IBM Compatible computers and accounting software program Quick Books 2002 Pro.The City receives financial technical assistance from Wilson and Wilson,an accounting firm located in Fairbanks.Additionally,the City receives technical assistance from the state's RUBA program approximately four to five times per year.The City operates on a July through June fiscal year. Management and Structure The City of Koyukuk Council consists of seven members.Below are the names and titles of the 2002/03 City of Koyukuk Council Members. CITY OF KOYUKUK 2002/03 COUNCIL MEMBERS Jason Malemute,Mayor Shirley Sam,Member Darlene Pilot,Vice Mayor Tom Kriska,Sergeant of Arms Percy Lolnitz,Member Karen Kriska,Member Martha Dayton,Member City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-2 The organizational chart below shows the relationship between the various components of the City's overall structure.At the apex of management is a City Council,lead by the Mayor,all representing the village of Koyukuk. City of Koyukuk Organizational Chart Residents City Council Mayor City Administrator Vera Lestenkof City Clerk/Bookkeeper City Janitor Tanya Bourdon Nadine Lolnitz Librarian Library/Clinic Janitor April Dayton Oscar Dayton Enrichment Program Maty Mayfield Assistant | John Williams Waterplant Operator Water &Sewer Haul Bulk Fuel Facility Tribal Electric Co. John Williams Cory Jones Martha Dayton John Williams Alternate Alternate Alternate Alternate David Charles Dayton Kenny Green Jason Malemute Cory Jones City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-3 Identification of Key Personnel The Koyukuk Bulk Fuel and Electric Power Facilities will have overall direction from the City of Koyukuk headed by the Mayor,Jason Malemute.Mayor Malemute will be involved in this project from the beginning and is the main contact for the City.He will work with AEA and the Denali Commission to ensure the City's role in the project timeline.Vera Lestenkof,City Administrator, will provide financial management,budget and reporting for the Bulk Fuel and Electric Power Facilities. The City will operate and maintain the Bulk Fuel Facility.Martha Dayton is primary Fuel Depot Manager of the City's existing Bulk Fuel Facility and is responsible for the Facility's overall management and operations.Her position will remain the same with the new consolidated Bulk Fuel Facility.Jason Malemute is Alternate Fuel Operator.See attached resumes. The City will operate and maintain the Tribal Electric Company.John Williams is primary Electric Power Operator of the City's existing Electric Power Facility and is responsible for the Facility's overall management and operations.His position will remain the same with the new Electric Power Facility.Cory Jones is Alternate Electric Power Operator.See attached resumes. Vera Lestenkof has been City Administrator since 1999.Ms.Lestenkof has a strong background in city management.Tanya Bourdon has been the City Clerk/Bookkeeper since 2000.Ms.Lestenkof and Ms.Bourdon are responsible for payroll,accounts payable,accounts receivable,tax filings and schedules,program budgets,and for tracking project expenses and preparation of required project financial reports.See attached resumes. Organization of Bulk Fuel Management and Operations The following chart illustrates the staff relationships of the Koyukuk Bulk Fuel Facility: KOYUKUK BULK FUEL FACILITY PROJECT STAFFING /\ Mayor \¥/ Vera Lestenkof City Administrator || Martha Dayton 'Tanya Bourdon John Williams Fuel Depot Manager||City Clerk/Bookkeeper Fuel Hauler Jason Malemute Alternate City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-4 Organization of Electric Power Management and Operations The following chart illustrates the staff relationships of the Koyukuk Electric Power Facility: KOYUKUK ELECTRIC POWER FACILITY PROJECT STAFFING = Vera Lestenkof City Administrator | | John Williams Tanya Bourdon Electric Power Operator City Clerk/Bookkeepeg Cory Jones Alternate Staff Training Needs Below is an initial list of training and assistance the City of Koyukuk has identified for the Bulk Fuel and Electric Power Facilities staff: e Oil Spill Response Training e Bulk Fuel Operator Training e Power Plant Operator Training Proposed Training Plan The City will utilize training resources available through AEA and the Alaska Vocational Technical Center (AVTEC)to ensure proper training of its personnel.The following is a summary of those resources: City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-5 e Alaska Energy Authority (AEA) The Alaska Energy Authority has developeda series of courses relating specifically to BulkFuelandPowerUtilityoperations.These courses are taught through the Alaska Vocational Technical Center (AVTEC)in Seward: Phone:(907)-269-3000 Contacts Bruce Tiedeman,Rural Energy Manager,Alaska Energy Authority/AIDEA Address:813 West Northern Lights Blvd.,Anchorage,Alaska 99503 Phone:(907)269-4641 Fax:(907)269-3044 Web Address:www.aidea.org/training.htm Email address:btiedeman@aidea.org Dick Harrell,Instructional Administrator,Alaska Vocational Technical Center Address:P.O.Box 889 809 2"Avenue,Seward,Alaska 99664 Phone:(907)-224-4162 1-800-478-5389 fax (907)224-4144 Web Address:www.avtec.alaska.edu Email:dick_harrell@educ.state.ak.us Technical Assistance Provided Facility Maintenance and Operations Cost The state will pay for transportation to and from your community to the Alaska Vocational Technical Center (AVTEC)as well as lodging and $10 per meal allowance while in transit to AVTEC.Furthermore,while at AVTEC the state will pay for tuition,deposit,room and board and training related materials. Currently,the primary bulk fuel and electrical power 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. Currently,the primary power plant related training provided by AEA is: Power Plant Operator Training -This is an 8-week program that prepares students for employment within a power plant.Approximately 60 percent of the course is spent operating and maintaining diesel generator sets representative of installations in rural Alaska with the remainder of time spent in classroom instruction. Advanced Power Plant Operator Training -This is a 2 to 3-week program that builds on the principals taught in the Power Plant Operator Training course. City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-6 Utility Clerk Training -This is a three-day course offered in Anchorage entirely through the Alaska Energy Authority.The course will focus on Power Cost Equalization (PCE) reporting,how to understand and report to the Regulatory Commission (RCA),how to apply for Bulk Fuel Loans,and general accounting practices that utilities can use to keep their records and reports current. 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 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 outthesecoststotal-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: City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-7 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 houts. Basic course content includes:O.A.W.(Oxyacetylene Welding);S.M.A.W.(Stick electrode); G.M.A.W.(MIG);G.T.A.W.(TIG);shop safety;industrial first aid and CPR and job search skills. Industrial Electricity -This program prepares students for entry-level positions in the field of industrial electricity.The course is broken into three parts;classroom presentation, experimental lab work,and electrical maintenance shop work.Four certificates can be obtained,Industrial Controls Technician,Industrial Electrical Technician,Electrical Apprentice,and Electrical Helper.The entire course will cost an estimated $8,175 and can take up to 40 weeks or 1400 hours depending on the certification level. Basic course content includes:electrical theory and wiring practices;electrical construction and national electrical code,industrial process automation,and job search and interview skills. The following program and courses are offered relating to Business Administration: Business and Office Technology -This program is an individualized,self-paced program. The following certificate levels can be obtained within the program,Accounting Clerk, Administrative Assistant,General Business/Office Assistant,and Business/Office Clerk. The entire course will cost an estimated $6,855 and take approximately 35 weeks or 1225 hours. Basic course content includes:Computer operations and software applications;Keyboarding and document processing;Proofreading and editing;Office procedures and office machines; Machine transcription;Accounting and record keeping;Business English and mathematics; Job and interview preparation;and,Internship training. City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-8 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 is classroom instruction with the remainder being hands on training.Two certificates can be obtained: Building Maintenance Repairer and Building Maintenance Repairer Helper.The entire course will take approximately 38 weeks or 1316 hours. The main courses of study are carpentry,plumbing,heating and electrical.Basic course content includes:Carpentry (blueprint reading,power tools and hand tools,framing, sheetrock,structural repair,foundations);Plumbing (names of fittings,join pipe,repair and replace fixtures);Heating (proper cleaning,troubleshooting,preventative maintenance);and, Electrical (electrical theory,residential wiring,electrical troubleshooting,national electrical code,blueprints,schematics). Facility Maintenance/Mechanical -This program prepares students for installation, maintenance,service,repair and diagnostics of HVAC/R equipment.Approximately 45 percent of the course is classroom instruction with the remainder being hands on training. Six certificates can be obtained:Plumbing and Heating Technician;Plumbing and Heating Repairer;Plumbing and Heating Assistant Repairer;HVAC/R Technician;HVAC/R Unit Repairer;HVAC/R Helper.The entire course will take approximately 36 weeks or 1260 hours. Basic course content includes:electrical theory;troubleshooting and repair;reading blueprints and schematics;electrical circuits and controls;testing circuits,system design; retrofitting systems;heat loads;installation techniques;heat pumps;oil,gas and kerosene heating systems;domestic refrigerators and freezers;small hermetic systems;refrigeration systems;heating and cooling systems;introductions to carpentry,residential wiring and computers,and industrial first aid. Power Plant Operation -This program prepares students for employment within a power plant.Approximately 60 percent of the course is spent operating and maintaining diesel generator sets representative of installations in rural Alaska with the remainder of time spent in classroom instruction.Certificates can be obtained in Diesel Plant Operator and Assistant Diesel Plant Operator.The entire course will cost an estimated $1,935 and take approximately 8 weeks or 280 hours. Basic course content includes:engine theory,maintenance,and troubleshooting;electrical system theory maintenance and troubleshooting;generator theory and maintenance; introduction to electrical distribution systems;operation of diesel electric sets;control panels;paralleling generator sets;load management;fuel management;waste heat recovery;plant management skills;power plant safety;industrial first aid and CPR;and job search skills. City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-9 RESUMES/JOBS DESCRIPTION City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-10 City of Koyukuk PO Box 49 Koyukuk,Alaska 99754 Work 907-927-2215 Fax 907-927-2215 Vera Lestenkof Employment Previous Employment Education Additional Training Additional Skills City of Koyukuk 1999-Present City Administrator Manages and coordinates the day-to-day activities of the City's operations to ensure attainment of the goals and objectives set by the City Council.Develops and maintains all administrative and financial systems,develops program budgets,prepares all reports for compliance with funding agencies,assists with City Council meetings' agendas and minutes and identifies funding opportunities.Reports directly to the Mayor. Koyukuk Tribal Council 1998-1999 Tribal Clerk Space Mark,Inc.in Adak,AK 1998 Postal Clerk/Food Service Koyukuk Tribal Council 1997-1998 Administrative Assistant U.S.Postal Service in St.George,AK 1989-1992 Postmaster 1979 GED Fairbanks,AK 1980 Office Occupations Training AVTEC Seward,AK 1999 Office Technology Program Tanana Valley Campus,UAF 1999 Advanced Tribal Administrator Training TCC 1997 Alaska Inter-tribal Council and BIA Rural Provider's Conf.Anchorage,AK 1997 Advanced Tribal Administrator Training TCC 1994 Positive Parenting Fairbanks,AK Customer Relations Quickbooks 2002 Pro Bookkeeping City of KoyukukBulkFuelFacility and Electric Utility Upgrade Business Operating Plan Appendix A-11 City of Koyukuk PO Box 49 Koyukuk,Alaska 99754 Work 907-927-2215 Fax 907-927-2215 Tanya Bourdon Employment City of Koyukuk 2000-Present City Clerk/Bookkeeper Responsible for implementing payroll,accounts payable,accounts receivable,tax filings and schedules,and tracking project expenses and preparation of required project financial reports.Assists the City Administrator with the day-to-day activities of the City's operations to ensure attainment of the goals and objectives set by the Council. Previous Experience Doyon Universal Prudue Bay,AK 1996-1997 Cook Education 1992 GED Additional Training 2002-2002 Utility Clerk Training AEA City Clerk DECD Personnel Management Training TCC Conflict Resolution and Peace Making TCC Quickbooks 2002 Pro Wilson and Wilson Consulting Additional Skills IMB Compatible Computers Software Programs Quickbooks 2002 Pro and Excel City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-12 City of Koyukuk PO Box 49 Koyukuk,Alaska 99754 Work 907-927-2215 Fax 907-927-2215 Martha Dayton Employment Education Additional Training Community Work City of Koyukuk 1984-Present Fuel Depot Manager Responsible for inspection,operation and minor maintenance of bulk fuel facility.Maintains daily and monthly reports on retail fuel sales. Larry's Airline 1997-Present Agent BLM Firefighting . 1974-Present Seasonal Firefighter 1978 GED 1990's HAZWoper Training AEA 1990's_BLM Firefighter Training 2002-Present City Council Member 1980's-Present Koyukuk Tribal Council Member 1974-Present Tribal,City and State Elections Worker City of KoyukukBulkFuelFacility and Electric Utility Upgrade Business Operating Plan Appendix A-13 City of Koyukuk PO Box 49 Koyukuk,Alaska 99754 Work 907-927-2215 Fax 907-927-2215 Jason Malemute Employment Previous Experience Education Additional Training Additional Skills Community Work City of Koyukuk 2003-Present Alternate Fuel Depot Operator Backup for primary Fuel Depot Manager. City of Koyukuk 2002-Present Strong Mayor. Self-Employed 1999-Present Contract office assistance and researcher. Koyukuk Tribal Council 1999-2001 Environmental Technician 1993 High School Diploma Andrew K.Demonski Nulato,AK 1998 HAZmat Training (Needs a Refresher Course)AEA 2000 Fuel Spill Cleanup 2000 Soil Contaminant Testing 2000 Indoor Air Sampling Supervisory Self-Employment IBM Compatible and Mac Computers Microsoft Word and Excel Heavy Equipment Operator Minor Electric Carpentry Plumbing 2002-Present City of Koyukuk Mayor 1993-Present City of Koyukuk Council Member 1999-2000 Koyukuk Tribal Council Member Present Volunteer Search and Rescue Present Volunteer at local school City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-14 John Williams City of Koyukuk PO Box 49 Koyukuk,Alaska 99754 Work 907-927-2215 Fax 907-927-2215 Employment Previous Experience Education Additional Training Additional Skills Community Work City of Koyukuk 2001-Present Fuel Hauler Delivers diesel fuel to all City buildings. City of Koyukuk 2002-Present Electric Power Operator Responsible for the operations and maintenance of the electric generator plant that provides power to the community's homes and buildings. City of Koyukuk 2002-Present Water Plant Operator Responsible for the operations and maintenance of the water plant that provides water for the community's homes and buildings. City of Koyukuk 2002-Present Enrichment Program Assistant Assists residents in the community with job training and placement. Housing Authority 1999-2000 Seasonal Laborer/Carpenter Currently working toward GED 2003 Light Plant Operator Training,AVTEC Seward,AK 2002 Pipe Soldering Trng.,Hutchinson Career Cntr.Fairbanks,AK 2002 Washer and Drier Repair Training TCC Fairbanks,AK 2002 Water Testing Training TCC Fairbanks,AK Semi-truck Driver Carpentry 2002-Present Koyukuk Traditional Council's Enrichment Program Youth Program Worker City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-15 Cory Jones City of Koyukuk PO Box 49 Koyukuk,Alaska 99754 Work 907-927-2215 Fax 907-927-2215 Employment Education Additional Training Additional Skills Community Work City of Koyukuk 2000-Present Alternate Electric Power Operator Backup for primary Electric Power Operator. City of Koyukuk 2000-Present Water and Sewer Utility Operator Responsible for the delivery of water and the removal of sewer for the community's homes and businesses. Koyukuk Traditional Council 2003-Present Work Development Specialist Assists residents in the community with job training and placement. State of Alaska,Division of Public Assistance 2003-Present Fee Agent 1988 GED 2002 Hazardous Waste Operations and Emergency Response 1997 HAZWoper Certificate Minor Mechanical Minor Electric Small Engine Repair Volunteer Search and Rescue City of KoyukukBulkFuelFacility and Electric Utility Upgrade Business Operating Plan Appendix A-16 CITY OF KOYUKUK JOB DESCRIPTION BULK FUEL FACILITY MANAGER Exempt (Y/N):No Salary: Division:Bulk Fuel Location:Koyukuk Employee:Supervisor:City Administrator Approved By:Mayor Date: SUMMARY:Plans and directs activities of bulk fuel facility operations.Ensures facility is maintained according to guidelines outlined in Business Plan,the Operations and Maintenance Manual,all manufacturers'recommendations for maintenance,and all state and federal laws and regulations governing operation. ESSENTIAL DUTIES AND RESPONSIBILITIES include the following.Other duties may be assigned. Acts as point of contact for communications between the City of Koyukuk,the Denali Commission,Regulatory Agencies,and other interested parties. Interprets company policies and methods and develops specific operating procedures. Delegates functional activities to workers and establishes supervisory schedules and responsibilities to ensure quality and timeliness of independent decisions required to provide continuous service to public and safety of workers. Maintains operator training program and training records to ensure that trained operators are available to maintain sustained Facility operation. Assists City Administrator with annual report of operations to the Denali Commission and other required reporting. Implements the spill response and related regulatory plans and ensure that required spill response and related regulatory plans are updated and available on-site:Ensures the reliability of the spill response equipment,maintains the proper records,and conducts periodic spill drills. Oversees proactive program to recognize,identify and correct operational problems within the facility.Investigates,evaluates,and determines best application of new developments in bulk fuel storage industry,and devises other means of securing maximum efficiency of personnel and equipment. Directs maintenance of property records and upkeep of equipment and structures. City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-17 Job Description Bulk Fuel Facility Manager Page 2 SUPERVISORY RESPONSIBILITIES: Directly supervises employees in the Bulk Fuel Facility.Carries out supervisory responsibilities in accordance with the organization's policies and applicable laws.Responsibilities include interviewing,hiring,and training employees;planning,assigning,and directing work;appraising performance;addressing complaints and resolving problems. QUALIFICATIONS:To perform this job successfully,an individual must be able to perform each essential duty satisfactorily.The requirements listed below are representative of the knowledge,skill, and/or ability required. Education and/or Experience:Associate's degree (A.A.)or equivalent from two-year college or technical school;or six months to one year related experience and/or training;or equivalent combination of education and experience. Language Skills:Ability to read and interpret documents such as safety rules,operating and maintenance instructions,and procedure manuals.Ability to write routine reports and correspondence.Ability to speak effectively before groups of customers or employees of organization. Reasoning Ability:Ability to solve practical problems and deal with a variety of concrete variables in situations where only limited standardization exists.Ability to interpret a variety of instructions furnished in written,oral,diagram,or schedule form. PHYSICAL DEMANDS:The job will be physically demanding;will be required to push,maneuver and sometimes lift heavy objects. City of KoyukukBulkFuelFacility and Electric Utility Upgrade Business Operating Plan Appendix A-18 CITY OF KOYUKUK JoB DESCRIPTION ELECTRIC POWER GENERATION FACILITY MANAGER Exempt (Y/N):No Salary: Division:Tribal Electric Co.Location:Koyukuk Employee:Supervisor:City Administrator Approved By:Mayor Date: SUMMARY:Plans and directs activities of electric power generation facility operations.Ensures facility is maintained according to guidelines outlined in Business Plan,the Operations and Maintenance Manual,all manufacturers'recommendations for maintenance,and all state and federal laws and regulations governing operation. ESSENTIAL DUTIES AND RESPONSIBILITIES include the following.Other duties may be assigned. Acts as point of contact for communications between the City of Koyukuk,the Denali Commission,Regulatory Agencies,and other interested parties. Interprets company policies and methods and develops specific operating procedures. Delegates functional activities to workers and establishes supervisory schedules and responsibilities to ensure quality and timeliness of independent decisions required to provide continuous service to public and safety of workers. Maintains operator training program and training records to ensure that trained operators are available to maintain sustained Facility operation. Assists City Administrator with annual report of operations to the Denali Commission and other required reporting. Implements the spill response and related regulatory plans and ensure that required spill response and related regulatory plans are updated and available on-site:Ensures the reliability of the spill response equipment,maintains the proper records,and conducts periodic spill drills. Oversees proactive program to recognize,identify and correct operational problems within the facility.Investigates,evaluates,and determines best application of new developments in electric power generation industry,and devises other means of securing maximum efficiency of personnel and equipment. Directs maintenance of property records and upkeep of equipment and structures. City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-19 Job Description Electric Power Generation Facility Manager Page 2 SUPERVISORY RESPONSIBILITIES: Directly supervises employees in the Electric Power Generation Facility.Carries out supervisory responsibilities in accordance with the organization's policies and applicable laws.Responsibilities include interviewing,hiring,and training employees;planning,assigning,and directing work; appraising performance;addressing complaints and resolving problems. QUALIFICATIONS:To perform this job successfully,an individual must be able to perform each essential duty satisfactorily.The requirements listed below are representative of the knowledge,skill, and/or ability required. Education and/or Experience:Associate's degree (A.A.)or equivalent from two-year college or technical school;or six months to one year related experience and/or training;or equivalent combination of education and experience. Language Skills:Ability to read and interpret documents such as safety rules,operating and maintenance instructions,and procedure manuals.Ability to write routine reports and correspondence.Ability to speak effectively before groups of customers or employees of organization. Reasoning Ability:Ability to solve practical problems and deal with a variety of concrete variables in situations where only limited standardization exists.Ability to interpret a variety of instructions furnished in written,oral,diagram,or schedule form. PHYSICAL DEMANDS:The job will be physically demanding;will be required to push,maneuver and sometimes lift heavy objects. City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-20 APPENDIX B:O&M AND R&R CostT ESTIMATE -BULK FUEL STORAGE COST CONSULTANT HMS Inc. 4103 Minnesota Drive Anchorage,Alaska 99503 (907)561-1653 (907)562-0420 FAX City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-1 HMS #03080 (A) FINAL SUBMITTAL BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS CITY TANK FARM AND POWER PLANT KOYUKUK,ALASKA CLIENT Aurora Consulting 880 H Street,Suite 105 Anchorage,Alaska 99501 December 16,2003 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM AND POWER PLANT PAGE 1 KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE DATE:December 16,2003 HMS Project No.:03080 A NOTES REGARDING THE PREPARATION OF THIS ESTIMATE These Operations/Maintenance and Replacement/Renewal costs are based on Koyukuk City Bulk Fuel Facility 95%revised drawings dated June 2003, prepared by HDL Engineering consultants 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 2003 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 and are established in 2003 dollars. Replacement costs are based one to four times over 40 years and are established in 2003 dollars. Please note that this report excludes all work to the existing tank farm,O&M,and R&R costs for non-related tank farm work. ESTIMATING ASSUMPTIONS Operation/Maintenance Costs:All costs are on yearly basis for one time event only. 0 5 10 15 20 25 30 35 40 Years:|||||||| i ||I i ||I 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. City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-2 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM AND POWER PLANT PAGE 2 KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE DATE:December 16,2003 HMS Project No.:03080 A SUMMARY TOTAL COST One Time Cost (In 2003 Dollars) A.Operations &Maintenance Costs (Yearly)14,460 x 40 Years =$578,385 B.Renewal Costs (Over 40 Years)See Business Plan Table C.Replacement Costs (Over 40 Years)See Business Plan Table TOTAL O&M AND RENEWAL/REPLACEMENT COSTS (2003 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. City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-3 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM AND POWER PLANT PAGE 3 KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE DATE:December 16,2003 HMS Project No.:03080 A QUANTITY MATERIAL LABOR EQUIPMENT A.Operations &Maintenance Costs (Yearly)No.of |Unit]Unit Cost MH |Total Cost Unit Cost TOTAL Units Meas!Price $Unit Hrs Rate $Price $$ NOTE:These projections are based on Koyukuk City fuel facility tank farm comprising (3)30,000 gallon tanks,and (1)6,000 galion powerplant tank,(1)6,000 gallon dual product tank,(1)2,000 gallon and (3)300 gallon intermediate storage tanks with fill and dispensing lines and pumping system (total shell capacity 104,900 gallons). All costs are projected on yearly basis using local labor and construction equipment rented from local resources. 1.GROUND MAINTENANCE Annual maintenance (shared cost)12 Mos 8.000 96.000 17.85 1,714 1,714 SUBTOTAL 1.GROUND MAINTENANCE (YEARLY):1,714 1,714 2.TANKS,PIPELINES AND INSPECTIONS Fuel delivery (46,000 gallons - 4 time -shared cost){4 LOT 12.000 12.000 17.85 214 214 Perform minor repairs,repair faulty valves and gauges (1 time/year-9 tanks -37 valves)1 LOT 1350.00 1,350 26.000 26.000 17.85 464 75.00 75 1,889 Annual inspection/pressure testing (1 outside person)(shared cost)1 LOT 700.00 700 18.000 18.000 75.00 1,350 200.00 200 2,250 SUBTOTAL 2.TANKS,PIPELINES,ETC.(YEARLY):2,050 2,028 275 4,353 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-4 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM AND POWER PLANT KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE PAGE 4 DATE:December 16,2003 HMS Project No.:03080 A QUANTITY MATERIAL LABOR EQUIPMENT A.Operations &Maintenance Costs (Yearly)No.of |Unit]Unit Cost MH |Total Cost Unit Cost TOTAL Units |Meas}Price $Unit Hrs Rate $Price $$ 3.OTHER COSTS Operator training (shared cost)1 EA 10.000 10.000 45.00 450 450 Administration -clerical (shared cost)12 Mos 6.000 72.000 16.80 1,210 1,210 Supervision (shared cost)12 Mos 4.000 48.000 19.44 933 933 Annual audit (in Anchorage) (shared cost)1 EA 12.000 12.000 100.00 1,200 1,200 Tankage insurance 46,000 GAL 0.10 4,600 4,600 SUBTOTAL 3.OTHER COSTS (YEARLY):4,600 3,793 8,393 SUMMARY (YEARLY) 1.GROUND MAINTENANCE $1,714 2.TANKS,PIPELINES AND INSPECTIONS 4,353 3.OTHER COSTS 8,393 TOTAL IN PRESENT DOLLARS/YEAR:$14,460 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-5 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM AND POWER PLANT KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE HMS Project No.:03080 A PAGE 5 DATE:December 16,2003 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 (SHARED COST) Repair 8'0"high fence and gates (at 10 and 30 years -2 times)270 =oLLF 4.50 1.215 0.280 75.600 17.85 1349 1.60 432 2,996 1B.TANK PLATFORM AND STEPS,ETC. Check and stabilize 12"diameter piles and bracings (at 10,20,30 and 40 years -4 times)24 EA 130.00 3,120 6.000 144.000 17.85 2,570 100.00 2,400 8,090 Repair platform grate,steps and catwalks (at 10,20,30 and 40 years - 4 times)2,848 SF 5.50 15,664 0.350 996.800 17.85 17,793 1.00 2,848 36,305 Ditto railings (ditto)182 LF 10.00 1,820 0.500 91.000 17.85 1,624 1.50 273 3,717 Repair dispenser enclosure (at 10,30, and 40 years -3 times)64 SF 3.50 224 0.450 28.800 17.85 514 =1.00 64 802 SUBTOTAL 1A &B.FENCE,TANK PLATFORM &STEPS,ETC 22,043 23,851 6,017 51,911 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-6 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM AND POWER PLANT KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE HMS Project No.:03080 A PAGE 6 DATE:December 16,2003 QUANTITY MATERIAL LABOR EQUIPMENT B.Renewal Costs (Over 40 Years)No.of Units Unit Unit Meas|Price Cost MH $Unit Total Hrs Rate Cost Unit $Price Cost $ TOTAL 2A.TANKS Replace pumps (at 10,20,30 and 40 years -4 times -6 each) Replace miscellaneous valves and gauges (at 10,20,30 and 40 years - 4 times -9 tanks -37 valves) 2B.PIPELINES AND HEADERS Check dual product barge fill line manifold and repair (at 10 and 30 years -2 times) (shared cost) Check and repair tank fill lines manifolds (at 10 and 30 years -2 times -9 each) LOT 9500.00 LOT 4075.00 LOT 300.00 LOT 700.00 9,500 36.000 4,075 40.000 300 10.000 700 20.000 36.000 40.000 10.000 20.000 17.85 17.85 17.85 17.85 643 300.00 714 125.00 179 100.00 357 100.00 300 125 100 100 10,443 4,914 579 1,157 SUBTOTAL 2.TANKS AND PIPELINES:14,575 1,892 625 17,092 3.ELECTRICAL MAINTENANCE Check electrical systems serving pumps and fuel dispensers and repair as necessary (at 5,10,15,25, 30 and 35 years -6 times -6 each)LOT 750.00 750 30.000 30.000 100.00 3,000 75.00 75 3,825 SUBTOTAL 3.ELECTRICAL MAINTENANCE:750 3,000 75 3,825 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-7 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM AND POWER PLANT KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE PAGE 7 DATE:December 16,2003 HMS Project No.:03080 A QUANTITY MATERIAL LABOR EQUIPMENT B.Renewal Costs (Over 40 Years)No.of |Unit}Unit Cost MH Total Cost Unit |Cost TOTALUnitsMeas]Price $Unit Hrs Rate $Price $$ SUMMARY (One time cost -multiply by number of times to be renewed) 1A &B.FENCE AND DIKES $51,911 2A &B.TANKS AND PIPELINES 17,092 3.ELECTRICAL MAINTENANCE 3,825 TOTAL IN PRESENT DOLLARS FOR 40 YEARS:$72,828 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-8 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM AND POWER PLANT PAGE 8 KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE DATE:December 16,2003 HMS Project No.:03080 A QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs |(Over 40 Years)No.of}Unit Unit Cost MH Total Cost Unit Cost TOTALUnits|Meas Price $Unit Hrs Rate $Price $$ 1A.FENCE Replace 8'0"fencing (at 20 and 40 years -3 times)270 =-soaLF 23.50 6,345 0.400 108.000 17.85 1,928 5.00 1,350 9,623 Ditto (shared cost)24 =F 23.50 564 0.400 9.600 17.85 171 5.00 120 855 Replace 3'0"man gates (at 20 and 40 years -2 times)2 EA 500.00 1,000 18.000 36.000 17.85 643 50.00 100 1,743 1B.TANK PLATFORM AND STEPS,ETC. Replace dispenser enclosure (at 40 years -1 time)64 SF 17.50 1,120 0.650 41.600 17.85 743 2.50 160 2,023 SUBTOTAL 1A &B.FENCE,TANK PLATFORM &STEPS,E1 9,029 3,484 1,730 14,243 2A.TANKS Replace tanks,30,000 gallon (at 40 years -1 time -3 tanks)1 EA 157500.00 157,500 460.000 460.000 75.00 34,500 4000.00 4,000 196,000 Ditto,6,000 gallon (1 tank -1 time)1 EA 19200.00 19,200 64.000 64.000 75.00 4,800 750.00 750 24,750 Ditto,2,000 gallon (1 tank-1 time)1 EA 6500.00 6,500 40.000 40.000 75.00 3,000 250.00 250 9,750 Ditto,300 gallon (at 40 years -1 time - 3 tanks)1 EA 6000.00 6,000 60.000 60.000 75.00 4,500 300.00 300 10,800 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-9 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM AND POWER PLANT PAGE 9 KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE DATE:December 16,2003 HMS Project No.:03080 A QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of}Unit Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas Price $Unit Hrs Rate $Price $$ 2A.TANKS (Continued) Replace,6,000 gallon dual product (at 40 years -1 time -1 tank)1 EA 35500.00 35,500 72.000 72.000 75.00 5,400 1000.00 1,000 41,900 Replace dual product dispenser (at 40 years -1 time)1 EA 15000.00 15,000 60.000 60.000 75.00 4,500 19,500 2B.PIPELINES AND HEADERS Replace 3"Schedule 80 buried barge lines in 18"carrier pipe and anodes including trenching (at 20 and 40 years - 2 times -2 pipes)810 LF 32.00 25,920 0.800 648.000 17.85 11,567 7.50 6,075 43,562 Ditto 3"on timber sleepers (ditto)594 LF 27.00 16,038 0.750 445.500 17.85 7,952 5.00 2,970 26,960 Ditto 3"burried (1 pipe-shared cost)405 LF 32.00 12,960 0.800 324.000 17.85 5,783 7.50 3,038 21,781 Ditto 3"above grade (1 pipe -shared cost)298 LF 27.00 8,046 0.750 223.500 17.85 3,989 5.00 1,490 13,525 Replace 2”dispensing lines (at 20 and 40 years -2 times -2 pipes)300 =LF 13.55 4,065 0.600 180.000 17.85 3,213 7.50 2,250 9,528 Replace 2”diameter above grade fuel transfer line at tanks (at 20 and 40 years -2 times -1 pipe)232 =2OLF 15.00 3,480 0.500 116.000 17.85 2,071 2.50 580 6,131 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-10 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM AND POWER PLANT PAGE 10 KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE DATE:December 16,2003 HMS Project No.:03080 A QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of}Unit Unit Cost MH Total Cost Unit Cost TOTALUnits|Meas]Price $Unit Hrs Rate $Price $$ 2B.PIPELINES AND HEADERS (Continued) Replace pipeline valves at barge and tank lines (at 20 and 40 years - 2 times -9 each)1 EA 1300.00 1,300 18.000 18.000 17.85 321 1,621 2C.INSPECTION (OUTSIDE CONTRACTOR) Major inspection of tanks by outside person including per diem and travel costs (at 10,20 and 30 years - 3 times -9 tanks)1 LOT 1200.00 1,200 36.000 36.000 75.00 2,700 300.00 300 4,200 SUBTOTAL 2.TANKS,PIPELINES &INSPECTION:312,709 94,297 23,003 430,008 3.ELECTRICAL SYSTEMS Replace wiring,panels and circuit breakers for pumps,etc.at each tank (at 20 and 40 years -2 times - 6 each)1 EA 10800.00 12,500 144.000 200.000 75.00 15,000 400.00 400 27,900 SUBTOTAL 3.ELECTRICAL SYSTEMS:12,500 15,000 400 27,900 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-11 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM AND POWER PLANT PAGE 11 KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE HMS Project No.:03080 A DATE:December 16,2003 QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of}Unit Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas|Price $Unit Hrs Rate $Price $$ SUMMARY (One time cost -multiply by times to be replaced) 1A &B.FENCE AND DIKES $14,243 2A &B.TANKS AND PIPELINES 430,008 3.ELECTRICAL SYSTEMS 27,900 TOTAL RENEWAL:$472,152 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-12 COST CONSULTANT HMS Inc. 4103 Minnesota Drive Anchorage,Alaska 99503 (907)561-1653 (907)562-0420 FAX City of Koyukuk HMS #03080 (B) FINAL SUBMITTAL BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS SCHOOL TANK FARM KOYUKUK,ALASKA CLIENT Aurora Consulting 880 H Street,Suite 105 Anchorage,Alaska 99502 December 16,2003 Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-13 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -SCHOOL TANK FARMS PAGE 1 KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE DATE:December 16,2003 HMS Project No.:03080 B NOTES REGARDING THE PREPARATION OF THIS ESTIMATE These Operations/Maintenance and Replacement/Renewal costs are based on Koyukuk School Bulk Fuel Facility 95%revised drawings dated June 2003,prepared by HDL Engineering consultants 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 2003 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 and are established in 2003 dollars. Replacement costs are based one to four times over 40 years and are established in 2003 dollars. 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 40 15 20 25 30 35 40 Years:||||||||| |||\|I J I 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. City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-14 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -SCHOOL TANK FARMS PAGE 2 KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE DATE:December 16,2003 HMS Project No.:03080 B SUMMARY TOTAL COST One Time Cost (in 2003 Dollars) A.Operations &Maintenance Costs (Yearly)3,774 x 40 Years =$150,963 B.Renewal Costs (Over 40 Years)See Business Plan Table C.Replacement Costs (Over 40 Years)See Business Plan Table TOTAL O&M AND RENEWAL/REPLACEMENT COSTS (2003 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. City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-15 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -SCHOOL TANK FARMS KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE HMS Project No.:03080 B PAGE 3 DATE:December 16,2003 QUANTITY MATERIAL LABOR FQUIPMEN] A.Operations &Maintenance Costs (Yearly)No.of |Unit}Unit Cost MH |Total Cost!Unit |Cost]}TOTAL Units Meas!Price $Unit Hrs Rate $|Price|$$ NOTE:These projections are based on Koyukuk School fuel facility tank farm comprising (1)15,000 gallon tank and (1)2,000 gallon intermediate tank with fill and dispensing lines and pumping system (total shell capacity 17,000 gallons). All costs are projected on yearly basis using local labor and construction equipment rented from local resources. 1.GROUND MAINTENANCE Annual maintenance (shared cost)12 Mos 2.000 24.000 17.85 428 428 SUBTOTAL 1.GROUND MAINTENANCE (YEARLY):428 428 2.TANKS,PIPELINES AND INSPECTIONS Fuel delivery (12,000 gallons - 1 time)(shared cost)1 LOT 4.000 4.000 17.85 71 71 Perform minor repairs,repair faulty valves and gauges (1 time/year -9 tanks -10 valves)1 LOT 440.00 440 8.000 8000 17.85 143 40.00 40 623 Annual inspection/pressure testing (1 outside person)(shared cost)1 LOT 175.00 175 4.000 4.000 75.00 300 50.00 50 525 SUBTOTAL 2.TANKS,PIPELINES,ETC.(YEARLY):615 514 90 1,219 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-16 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -SCHOOL TANK FARMS KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE HMS Project No.:03080 B PAGE 4 DATE:December 16,2003 QUANTITY MATERIAL LABOR EQUIPMENT) A.Operations &Maintenance ..cCosts(Yearly)No.of |Unit]Unit Cost MH |Total Cost}Unit |Cost]TOTAL Units Meas]Price $Unit Hrs Rate $|Price!$$ 3.OTHER COSTS Operator training (shared cost)1 EA 2.000 2.000 45.00 90 90 Administration -clerical (shared cost)12 Mos 2.000 24.000 16.80 403 403 Supervision (shared cost)12 Mos 1.000 12.000 19.44 233 233 Annual audit (in Anchorage)(shared cost)1 EA 2.000 2.000 100.00 200 200 Tankage insurance 12,000 GAL 0.10 1,200 1,200 SUBTOTAL 3.OTHER COSTS (YEARLY):1,200 926 2,126 SUMMARY (YEARLY) 1.GROUND MAINTENANCE $428 2.TANKS,PIPELINES AND INSPECTIONS 1,219 3.OTHER COSTS 2,126 TOTAL IN PRESENT DOLLARS/YEAR:$3,774 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-17 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -SCHOOL TANK FARMS PAGE 5 KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE DATE:December 16,2003 HMS Project No.:03080 B QUANTITY MATERIAL LABOR EQUIPMENT B.Renewal Costs (Over 40 Years)No.of |Unit]Unit Cost MH Total Cost |Unit |Cost TOTALUnitsMeas]Price $Unit Hrs Rate $Price |$$ 1A.FENCE (Shared Cost) Repair 8'0"high fence and gates (at 10 and 30 years -2 times)121 LF 4.50 545 0.280 33.880 17.85 605 1.60 194 1,343 1B.TANK PLATFORM &STEPS,ETC. Check and stabilize 12"diameter piles and bracings (at 10,20,30 and 40 40 years -4 times)4 EA 130.00 520 6.000 24.000 17.85 428 100.00 400 1,348 Keparr plattorm grate,steps and catwalks (at 10,20,30 and 40 years - 4 times)552 SF 5.50 3,036 0.350 193.200 17.85 3,449 1.00 552 7,037 Ditto railing (at 10,30,and 40 years - 3 times)75 LF 10.00 750 0.500 37.500 17.85 669 1.50 113 1,532 SUBTOTAL 1A &B.FENCE,TANK PLATFORM &STEPS,ETC 4,851 5,151 1,258 11,260 2A.TANKS Replace pumps (at 10,20,30 and 40 years -4 times -1 each)1 LOT 1500.00 1,500 6.000 6.000 17.85 107 50.00 50 1,657 Replace miscellaneous valves and gauges (at 10,20,30 and 40 years - 4 times -9 tanks -10 valves)1 LOT 1100.00 1,100 12.000 12.000 17.85 214 50.00 50 1,364 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-18 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -SCHOOL TANK FARMS PAGE 6 KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE DATE:December 16,2003 HMS Project No.:03080 B QUANTITY MATERIAL LABOR EQUIPMENT B.Renewal Costs (Over 40 Years)No.of Unit |Unit Cost MH Total Cost |Unit |Cost TOTALUnits|Meas}Price $Unit Hrs Rate $Price $$ 2B.PIPELINES AND HEADERS Check dual product barge fill line manifold and repair (at 10 and 30 years -2 times) (shared cost)1 LOT 200.00 200 8.000 8.000 17.85 143 50.00 50 393 Check and repair tank fill lines manifolds (at 10 and 30 years -2 times -2 each)1 LOT 155.00 155 4000 4.000 17.85 71 25.00 25 251 SUBTOTAL 2.TANKS AND PIPELINES:2,955 536 175 3,666 3.ELECTRICAL MAINTENANCE Check electrical systems serving pumps and fuel dispensers and repair as necessary (at 5,10,15,25, 30 and 35 years -6 times -1 each)1 LOT 125.00 125 5.000 5.000 100.00 500 30.00 30 655 SUBTOTAL 3.ELECTRICAL MAINTENANCE:125 500 30 655 SUMMARY (One time cost -multiply by number of times to be renewed) 1A &B.FENCE AND DIKES $11,260 2A &B.TANKS AND PIPELINES 3,666 3.ELECTRICAL MAINTENANCE 655 TOTAL IN PRESENT DOLLARS FOR 40 YEARS:$15,580 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-19 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -SCHOOL TANK FARMS PAGE 7 KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE DATE:December 16,2003 HMS Project No.:03080 B 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 $$ 1A.FENCE Replace 8'0"fencing (at 20 and 40 years -2 times)121 LF 23.50 2,844 0.400 48.400 17.85 864 5.00 605 4,312 Ditto (shared cost)23.«OLF 23.50 541 0400 9.200 17.85 164 5.00 115 820 Replace 3'0"man gates (at 20 and 40 years -2 times)3 EA 500.00 1,500 8.000 24.000 17.85 428 50.00 150 2,078 1B.TANK PLATFORM &STEPS,ETC.N/A SUBTOTAL 1A &B.FENCE,TANK PLATFORM &STEPS,E 4,884 1,457 870 7,211 2A.TANKS Replace tanks,15,000 gallon (at 40 years -1 time -1 tank)1 EA 27500.00 27,500 76.000 76.000 75.00 5,700 1200.00 1,200 34,400 Ditto,2,000 gallon (1 tank-1 time)1 EA 6500.00 6,500 40.000 40.000 75.00 3,000 250.00 250 9,750 2B.PIPELINES AND HEADERS Replace 3"Schedule 80 above grade barge lines (at 20 and 40 years - 2 times -1 pipe)150 LF 21.50 3,225 0.750 112.500 17.85 2,008 7.50 1,125 6,358 3"ditto (shared cost)405 LF 32.00 12,960 0.800 324.000 17.85 5,783 18,743 Ditto 3"burried (shared cost)298 LF 27.00 8,046 0.750 223.500 17.85 3,989 5.00 1,490 13,525 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-20 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -SCHOOL TANK FARMS PAGE 8 KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE DATE:December 16,2003 HMS Project No.:03080 B QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of|Unit Unit Cost MH Total Cost Unit Cost TOTALUnits|Meas]Price $Unit Hrs__|Rate $Price | $$ 2B.PIPELINES AND HEADERS (Continued) Replace 2"dispensing line (at 20 and 40 years -2 times -2 pipes)890 LF 13.55 12,060 0.600 534.000 17.85 9,532 7.50 6,675 28,266 Replace 2"diameter above grade fuel transfer line at tanks (at 20 and 40 years -2 times -1 pipe)40 LF 15.00 600 0.500 20.000 17.85 357 2.50 100 1,057 Replace pipeline valves at tank lines (at 20 and 40 years -2 times -2 each)1 EA 290.00 290 4.000 4.000 17.85 71 361 2C._INSPECTION (OUTSIDE CONTRACTOR) Major inspection of tanks by outside person including per diem and travel costs (at 10,20 and 30 years - 3 times -2 tanks)1 LOT 270.00 270 8.000 8.000 75.00 600 75.00 75 945 SUBTOTAL 2.TANKS,PIPELINES &INSPECTION:71,451 31,041 10,915 113,407 3.ELECTRICAL SYSTEMS Replace wiring,panels and circuit breakers for pumps,etc.at each tank (at 20 and 40 years -2 times - 1 each)1 EA 1800.00 12,500 24.000 200.000 75.00 15,000 75.00 400 27,900 SUBTOTAL 3.ELECTRICAL SYSTEMS:12,500 15,000 400 27,900 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-21 BULK FUEL OPERATION /MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -SCHOOL TANK FARMS KOYUKUK,ALASKA FINAL SUBMITTAL CONSTRUCTION COST ESTIMATE HMS Project No.:03080 B PAGE 9 DATE:December 16,2003 QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of)Unit Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas]Price $Unit Hrs |Rate $Price $$ SUMMARY (One time cost -multiply by times to be replaced) 1A &B.FENCE AND DIKES $7,211 2A &B.TANKS AND PIPELINES 113,407 3.ELECTRICAL SYSTEMS 27,900 TOTAL RENEWAL:$148,517 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-22 APPENDIX C:O&M AND R&R Cost ESTIMATE -ELECTRIC POWER UTILITY POWER PLANT OPERATION &MAINTENANCE AND REPLACEMENT &RENEWAL COSTS AEA 813 W.Northern Lights Bivd. Anchorage,Alaska 99503 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-1 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 1 NOTES REGARDING THE PREPARATION OF THIS ESTIMATE These Operations/Maintenance and Replacement/Renewal costs do not include costs that could incur due to unexpected events such as natural disaster,vandalism,etc. Each work item is priced using utility maintenance staff or "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 today's 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 power plant building and 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 power plant and 4,000 LF (3")pipeline to bulk fuel tank farm. ESTIMATING ASSUMPTIONS Operation/Maintenance Costs:All costs are on yearly basis for one time event only. 0 5 10 15 20 25 30 35 40 Years:||||||||| {||i 1 I |T 1 Renewal/Replacement Costs:Total cost column represents one time event only.Years in parentheses indicate number of times to be renewed/replaced.Therefore,the Business Plan should apply the total dollars and multiply by the number of years item to be renewed or replaced. NOTE:The original draft has been revised to incorporate review comments made by the project manager. City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-2 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS SUMMARY TOTAL COST One Time Cost A.Operations &Maintenance Costs (First Year)12,093 x 40 Years =$483,714 B.Renewal Costs (Over 40 Years) C.Replacement Costs (Over 40 Years) With Business Plan With Business Plan TOTAL O&M AND RENEWAL/REPLACEMENT COSTS (2002 DOLLARS):N/A City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-3 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. PAGE 2 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 3 QUANTITY MATERIAL LABOR EQUIPMENT A.Operations &Maintenance Costs (First Year)No.of |Unit]Unit Cost MH |Total Cost Unit Cost TOTAL Units Meas]Price |$Unit Hrs Rate $Price $$ 1.SITE MAINTENANCE Annual maintenance 12 Mos 25.00 300 3.000 36.000 16.42 591 891 Building pad 13,500 SF Included Above Boardwalk 900 SF Included Above Steel grate ramps and steps 610 SF Included Above TOTAL 1.:300 591 891 2.FUEL TANK,PIPELINES AND TRANSFORMER Check step-up transformers 2 EA 2.000 3.000 16.42 49 49 Fuel delivery (12,000 gallon via pipeline)With Tank Farm Perform minor repairs,replace faulty valves and gauges (1 tank)1 LOT 250.00 250 8.000 8.000 16.42 131 50.00 50 431 TOTAL 2.:250 181 50 481 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-4 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 4 QUANTITY MATERIAL LABOR EQUIPMENT A.Operations &Maintenance Costs (First Year)No.of |Unit}Unit Cost MH |Total Cost Unit Cost TOTAL Units Meas!Price $Unit Hrs Rate $Price $$ 3.OTHER COSTS NOTE:Included with Business Plan Table B. Operator training 1 EA Administration -clerical 12 Mos Administration -supervision 12 Mos Annual audit (in Anchorage){LOT Power plant insurance (1,440 SF building and gensets,switchgear, 12,000 gallon fuel tank,etc.)1 EA TOTAL 3.: 4.BUILDING SYSTEMS Check the following and repair as necessary: Steel piles and cross bracing for loose connections,settlement,etc.9 EA 20.00 170 1.500 12.750 16.42 209 10.00 85 464 Floor structure 720 SF 0.05 36 0.020 14.400 16.42 236 272 Roof structure 816 SF 0.05 41 0.020 16.320 16.42 268 309 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-5 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 5 QUANTITY MATERIAL LABOR EQUIPMENT A.Operations &Maintenance Costs (First Year)No.of Unit |Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas|Price $Unit Hrs |Rate $Price $$ 4.BUILDING SYSTEMS (Continued) Exterior walls metal siding and interior FRP 1,352 SF 0.07 95 0.013 17.576 16.42 289 383 10'0"x10'0"overhead door 1 EA 40.00 40 4.000 4.000 16.42 66 106 3'0"x7'0"single door 1 EA 15.00 15 1.000 1.000 16.42 16 31 3'6"x3'6"windows 2 EA 10.00 20 0.500 1.000 16.42 16 36 Metal roofing 816 SF 0.10 82 0.020 16.320 16.42 268 350 interior stud/gypboard partitions 372 SF 0.05 19 0.020 7.440 16.42 122 141 3'0"x7'0"single doors 3.EA 5.00 15 0.350 1.050 16.42 17 32 3'6"x8'0"window 1 EA 5.00 5 1.000 1.000 16.42 16 21 Clean floors 720 SF 0.10 72 0.030 21.600 16.42 355 427 Clean FRP wall finishes 1,680 SF 0.01 17 0.007 11.760 16.42 193 210 Ditto ceiling finishes 720 =SF 0.01 7 0.007 5.040 16.42 83 90 Specialties 1 LOT 2.000 2.000 16.42 33 33 TOTAL 4.:633 2,188 85 2,906 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-6 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 6 QUANTITY MATERIAL LABOR EQUIPMENT A.Operations &Maintenance Costs (First Year)No.of |Unit]Unit Cost MH |Total Cost Unit Cost TOTAL Units Meas]Price $Unit Hrs Rate $Price $$ 5.MECHANICAL Check heating,ventilation and ducts, grilles,louvers and controls 720 SF 0.10 72 0.016 11.520 16.42 189 261 Fire alarm and fire suppression system inspection and certification (outside contractor)1 LOT 1000.00 1,000 16.000 16.000 75.00 1,200 2,200 TOTAL 5.:1,072 1,389 2,461 6.ELECTRICAL Check service and distribution 720 «SF 0.013 9.360 16.42 154 154 Change lamps/replace lenses (28 fixtures x 25%)4 EA 24.00 84 0.700 2.450 16.42 40 124 Check devices,switches,etc.1 LOT 6.000 6.000 16.42 99 99 TOTAL 6.:84 292 376 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-7 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 7 QUANTITY MATERIAL LABOR EQUIPMENT A.Operations &Maintenance Costs (First Year)No.of |Unit}Unit Cost MH |Total Cost Unit Cost TOTAL Units _|Meas}Price $Unit Hrs_|Rate $Price $$ 7.POWER GENERATION SYSTEMS Check 200 KW genset radiators, mufflers and additives 2 &EA 18.000 36.000 16.42 591 591 Ditto 170 KW 1 EA 10.000 10.000 16.42 164 164 Ditto 140 KW 1 EA 8.000 8.000 16.42 131 131 Ditto switchgear and controls 1 EA 12.000 12.000 16.42 197 197 Change oil,oil filter,fuel filter and air filters in generator engine 1 EA 3500.00 3,500 24.000 24.000 16.42 394 3,894 TOTAL 7.:3,500 1,478 4,978 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-8 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 8 QUANTITY MATERIAL LABOR EQUIPMENT A.Operations &Maintenance Costs (First Year)No.of |Unit]Unit Cost MH |Total Cost Unit Cost TOTAL Units |Meas]Price $Unit Hrs |Rate $Price $$ SUMMARY (YEARLY) 1.SITE MAINTENANCE $891 2.FUEL TANK,PIPELINES AND TRANSFORMER 481 3.OTHER COSTS -- 4.BUILDING SYSTEMS 2,906 5.MECHANICAL 2,461 6.ELECTRICAL 376 7.POWER GENERATION SYSTEMS 4,978 TOTAL IN PRESENT DOLLARS/YEAR:$12,093 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-9 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 9 QUANTITY MATERIAL LABOR EQUIPMENT B.Renewal Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas}Price $Unit Hrs Rate $Price |$$ 1.SITE Repair boardwalks (at 5,10,15,25, 30 and 35 years -6 times)900 SF 0.30 270 0.060 54.000 17.85 964 0.15 135 1,369 Minor repairs to steel grate ramps and steps (ditto)610 SF 0.45 275 0.080 48.800 17.85 871 0.25 153 1,298 TOTAL 1.:545 1,835 288 2,667 2.FUEL PUMPS,PIPELINE AND ELECTRICAL Replace pump (at 10,20,30 and 40 years -4 times,1 tank)1 EA 1200.00 1,200 14.000 14.000 17.85 250 100.00 100 1,550 Replace valves and gauges (at 5, 15,25 and 35 years -4 times)1 LOT 300.00 300 6.000 6.000 17.85 107 30.00 30 437 Refurbish electrical systems for fuel tank and pump (at 10,20,30 and 40 years -4 times)1 LOT 300.00 300 16.000 16.000 17.85 286 100.00 100 686 TOTAL 2.:1,800 643 230 2,673 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-10 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-11 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 10 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 $$ 3.BUILDING SYSTEMS Minor repairs to floor system (at 10, 20,30 and 40 years -4 times)1440 SF 0.15 216 0.030 43.200 17.85 771 987 Ditto roof structure (ditto)1,632 SF 0.10 163 0.020 32.640 17.85 583 746 Repair exterior metal siding (at 5,10, 15,25,30 and 35 years -6 times)2,704 SF 0.20 541 0.030 81.120 17.85 1,448 1,989 Ditto interior plywood/FRP (ditto)2,704 SF 0.10 270 0.020 54.080 17.85 965 1,236 Repair/caulk 10'0"x10'0"overhead door (ditto)1 EA 50.00 50 4.000 4.000 17.85 71 121 Repair/caulk 3'0"x7'0"exterior door (at 5,10,15,25,30 and 35 years - 6 times)1 EA 12.00 12 1.500 1.500 17.85 27 39 Ditto 3'6"x3'6"windows (ditto)2 EA 8.00 16 1.000 2.000 17.85 36 52 Repair metal roofing and flashings (at 10,20 and 35 years -3 times)1,632 SF 0.25 408 0.040 65.280 17.85 1,165 1,573 Change interior door hardware (at 10 and 30 years -2 times)3 EA 265.00 795 1.500 4.500 17.85 80 875 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 11 QUANTITY MATERIAL LABOR EQUIPMENT B.Renewal Costs (Over 40 Years)No.of Unit Unit Cost MH Total Cost Unit Cost TOTAL Units Meas]Price $Unit Hrs i Rate $Price $$ 3.BUILDING SYSTEMS (Continued) Replace acoustical glazing and seals on 3'6"x8'0"interior windows (at 20 years -1 time)28 SF 27.50 770 =©0.370 10.360 17.85 185 955 Paint steel plate floors (at 5,10,15, 25,30 and 35 years -6 times)1440 SF 0.18 259 0.040 57.600 17.85 1,028 1,287 Patch and clean FRP walls (at 5, 10,15,25,30 and 35 years -6 times)992 SF 0.22 218 0.050 49.600 17.85 885 1,104 Ditto ceilings (ditto)1,440 SF 0.15 216 0.030 43.200 17.85 771 987 Repair specialties (at 10,20,and 30 years -3 times)1 LOT 50.00 50 1.000 1.000 17.85 18 TOTAL 3.:3,985 8,034 11,951 4.MECHANICAL Replace filters,check motor belts, bearings,etc.(at 5,10,15,25,30 and 35 years -6 times)1 LOT 700.00 700 16.000 16.000 22.50 360 1,060 Repair ducts,grilles and controls (at 10 and 30 years -2 times)1,440 SF 0.35 504 0.050 72.000 22.50 1,620 2,124 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-12 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 12 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 $$ 4.MECHANICAL (Continued) Repair fire suppression system and charge FM containers (at 10 and 30 years -2 times)1 LOT 3500.00 3,500 10.000 10.000 75.00 750 50.00 50 4,300 TOTAL 4.:4,704 2,730 50 7,484 5.ELECTRICAL Replace panel circuit breakers,fuses, etc.(at 10 and 30 years -2 times)1 LOT 1200.00 1,200 24.000 24.000 22.50 540 1,740 Replace fixture ballasts and lenses (at 5,10,15,25,30 and 35 years - 6 times -28 fixtures x 35%)10 EA 60.00 600 1.500 15.000 22.50 338 938 Repair devices (ditto)40 EA 2.50 100 0.750 30.000 22.50 675 775 TOTAL 5.:1,900 1,553 3,453 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-13 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 13 QUANTITY MATERIAL LABOR EQUIPMENT B.Renewal Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units Meas|Price $Unit Hrs Rate $Price $$ 6.POWER GENERATION SYSTEMS Overhaul 200 KW genset (at 10 and 30 years-2 times,2 each)1 LOT 30000.00 30,000 200.000 200.000 75.00 15,000 3000.00 3,000 48,000 Ditto 170 KW (ditto,1 each)4 LOT 12000.00 12,000 80.000 80.000 75.00 6,000 1500.00 1,500 19,500 Ditto 140 KW (ditto,1 each)1 LOT 10000.00 10,000 70.000 70.000 75.00 5,250 1500.00 1,500 16,750 Refurbish switchgear and controls, instrumentation and recalibrate (at 10 and 30 years -2 times)1 LOT 5500.00 5,500 100.000 100.000 75.00 7,500 500.00 500 13,500 Top end overhaul (every year except 1,10,20,30,40 -35 times)1 LOT 2000.00 2,000 53.000 53.000 75.00 3,975 5,975 Change battery,alternator,etc. (every 4-years except 10,20, 30 and 40 years -6 times)1 LOT 1500.00 1,500 24.000 24.000 75.00 1,800 3,300 TOTAL 6.:61,000 39,525 6,500 107,025 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-14 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 14 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 $$ SUMMARY 1.SITE $2,667 2.FUEL PUMPS,PIPELINE AND ELECTRICAL 2,673 3.BUILDING SYSTEMS 11,951 4.MECHANICAL 7,484 5.ELECTRICAL 3,453 6.POWER GENERATION SYSTEMS 107,025 TOTAL IN PRESENT DOLLARS OVER 40 YEARS (1 TIME EVENT):$135,252 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-15 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 15 QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units Meas]Price $Unit Hrs |Rate $Price $$ 1.SITE Replace boardwalks (at 20 and 40 years -2 times)900 SF 5.50 4,950 0.250 225.000 17.85 4,016 1.00 900 9,866 Replace steel grate ramp and steps (at 40 years -1 time)610 SF 32.50 19,825 0.400 244.000 17.85 4,355 1.00 610 24,790 TOTAL 1.:24,775 8,372 1,510 34,657 2.FUEL TANK AND ELECTRICAL Replace 12,000 gallon fuel tank (at 40 years -1 time)1 EA 30000.00 30,000 64.000 64.000 75.00 4,800 1200.00 1,200 36,000 Replace electrical system for fuel tank (at 20 and 40 years -2 times)1 LOT 3500.00 3,500 50.000 50.000 75.00 3,750 250.00 250 7,500 TOTAL 2.:33,500 8,550 1,450 43,500 3.BUILDING SYSTEMS Shim piles and replace bracings (at 20 and 40 years -2 times)17 EA 255.00 4,335 6.000 102.000 17.85 1,821 215.00 3,655 9,811 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-16 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 16 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 $$ 3.BUILDING SYSTEMS (Continued) Upgrade floor system (at 20 and 40 years -2 times)1440 SF 1.00 1,440 0.100 144.000 17.85 2,570 4,010 Ditto roof structure (ditto)1,632 SF 0.75 1,224 0.080 130.560 17.85 2,330 3,554 Replace exterior metal siding (at 40 years -1 time)2,704 SF 4.25 11,492 0.170 459.680 17.85 8,205 19,697 Replace exterior wall plywood and insulation (at 40 years -1 time)2,704 SF 1.25 3,380 0.070 189.280 17.85 3,379 6,759 Replace 10'0"x10'0"overhead door (at 20 and 40 years -2 times)1 EA 1850.00 1,850 8.000 8.000 17.85 143 1,993 Ditto 3'0"x7'0"single door (ditto)1 EA 785.00 785 3.000 3.000 17.85 54 839 Replace 3'6"x3'6"exterior windows (ditto)2 EA 380.00 760 3.000 6.000 17.85 107 867 Replace metal roofing and insulation (at 15 and 35 years -2 times)1,632 SF 5.70 9,302 0.200 326.400 17.85 5,826 15,129 Replace 3'0"x7'0"interior doors (at 20 and 40 years -2 times)3 EA 655.00 1,965 2.500 7.500 17.85 134 2,099 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-17 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 17 QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units Meas}Price $Unit Hrs |Rate $Price $$ 3.BUILDING SYSTEMS (Continued) Replace 3'6"x8'0"window unit (at 40 years -1 time)28 SF 35.00 980 0.400 11.200 17.85 200 1,180 Paint trim and doors (at 20 and 40 years -2 times)3.EA 20.00 60 1.250 3.750 17.85 67 127 Replace FRP paneling (at 20 and 40 years -2 times)2,160 SF 3.70 7,992 0.110 237.600 17.85 4,241 12,233 Replace specialties (at 40 years - 1 time)1 LOT 250.00 250 3.000 3.000 17.85 54 304 TOTAL 3.:45,815 29,131 3,655 78,601 4.MECHANICAL Replace major mechanical equipment (at 40 years -1 time)1 LOT 35000.00 35,000 160.000 160.000 75.00 12,000 1200.00 1,200 48,200 Refurbish grilles,louvers,ducts and controls (at 20 and 40 years -2 times)1,440 SF 4.50 6,480 0.040 57.600 75.00 4,320 10,800 Replace FM200 fire suppression system (at 40 years -1 time)1 LOT 22500.00 22,500 80.000 80.000 75.00 6,000 28,500 TOTAL 4.:63,980 22,320 1,200 87,500 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-18 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 18 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 $$ 5.ELECTRICAL Replace panels,disconnect switches, motor controls,etc.(at 20 and 40 years - 2 times)1 LOT 7500.00 7,500 80.000 80.000 75.00 6,000 3000.00 3,000 16,500 Replace conductors only (at 40 years - 1 time)1 LOT 2200.00 2,200 48.000 48.000 75.00 3,600 5,800 Replace light fixtures (at 20 and 40 years - 2 times)28 EA 152.50 4,270 1.500 42.000 75.00 3,150 7,420 Replace devices (ditto -2 times)40 EA 18.00 720 0.500 20.000 75.00 1,500 2,220 Replace fire alarm system (at 20 and 40 years -2 times)1440 SF 4.70 6,768 0.040 57.600 75.00 4,320 11,088 Replace transformers (at 40 years - 1 time)3 EA 7200.00 21,600 32.000 96.000 75.00 7,200 28,800 TOTAL 5.:43,058 25,770 3,000 71,828 City 8f Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-19 POWER PLANT OPERATION AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 19 QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units i(Meas|Price $Unit Hrs |Rate $Price $$ 6.POWER GENERATION SYSTEM Replace 200 KW generator (at 20 and 40 years -2 times,2 each)4 LOT 105000.00 105,000 240.000 240.000 75.00 18,000 6000.00 6,000 129,000 Ditto 170 KW (ditto,1 each)1 LOT 47000.00 47,000 110.000 110.000 75.00 8,250 1500.00 1,500 56,750 Ditto 140 KW (ditto,1 each)4 LOT 39000.00 39,000 80.000 80.000 75.00 6,000 1000.00 1,000 46,000 Replace switchgear and controls complete (at 40 years -1 time)1 LOT 28000.00 28,000 150.000 150.000 75.00 11,250 700.00 700 39,950 Replace equipment feeders and conductors (at 20 and 40 years - 2 times)1 LOT 5000.00 §,000 100.000 100.000 75.00 7,500 12,500 TOTAL 6.:224,000 51,000 9,200 284,200 SUMMARY 1.SITE $34,657 2.FUEL TANK AND ELECTRICAL 43,500 3.BUILDING SYSTEMS 78,601 4.MECHANICAL 87,500 5.ELECTRICAL . 71,828 6.POWER GENERATION SYSTEM 284,200 TOTAL RENEWAL:$600,286 City of Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-20 ADDITIONAL RELATED AND ATTACHED DOCUMENTS 1,Access,Occupancy,Operations and Maintenance (A,O,O&M)Agreement 2.Secondary Operator Agreement 3.Site Control Documents 4,Grant Agreements 5.R&R Fund Account --Sample Documents ACCESS,OCCUPANCY,OPERATIONS AND MAINTENANCE AGREEMENT City of Koyukuk and Yukon Koyukuk School District WHEREAS the Koyukuk Bulk Fuel Storage Facility is to be constructed in Koyukuk,Alaska,by the Alaska Energy Authority; WHEREAS the City of Koyukuk will be the Primary Operator of a Bulk Fuel Storage Facility;which is being constructed for the benefit and use of the Participants,as well as for the greater benefit of the general public,and will be operated in good faith by the Primary Operator; WHEREAS the Participants are the City of Koyukuk and the Yukon Koyukuk School District; WHEREAS the Alaska Energy Authority is acting as an agent for the Denali Commission,using various gtant funding for the construction of the Bulk Fuel Storage Facility; WHEREAS the Commission has required that the Primary Operator prepare a Business Operating Plan that provides for operating and maintaining the Facility; WHEREAS the City of Koyukuk,Business Operating Plan of the Koyukuk Bulk Fuel Facility, dated January 25,2004,has been prepared;and WHEREAS the Business Operating Plan intends that an agreement be entered into between the Participants of the Facility that specifies each Participant's responsibilities regarding operations and maintenance of the Facility and payment for such services and this Access,Occupancy,Operations and Maintenance Agreement is such agreement. Now THEREFORE,in consideration of the mutual promises herein and the benefits from the construction and operation of the Bulk Fuel Storage Facility,the Parties agree as follows: SECTION 1:DEFINITIONS.For purposes of this Agreement,the following definitions apply: a."Agreement”means this Access,Occupancy,Operations and Maintenance Agreement. b."Business Operating Plan”,or "Plan”,means the Business Operating Plan of the Koyukuk Bulk Fuel Facility,dated January 25,2004. c."Concept Design Report”,or "CDR”,means the concept design and construction cost estimate for the Bulk Fuel Facility submitted to AEA on October 8,2001 by LCMF, Incorporated and by Hattenburg,Dilley &Linnell on June 19,2003. d."Participants”mean the owners of the Facility assets,including the City of Koyukuk and the Yukon Koyukuk School District. "City”means the City of Koyukuk. "YKSD”means the Yukon Koyukuk School District. "Commission”means the Denali Commission or its successor. "AEA”means the Alaska Energy Authority. "Facility”means the Bulk Fuel Storage Facility to be constructed in Koyukuk. "Common Facilities”means Facility assets that are shared proportionately among the Participants. k."Primary Operator”means the Participant responsible for operating and maintaining both its own and Common Facilities.popmo Koyukuk Bulk Fuel Facility Access,Occupancy,Operations and Maintenance Agreement Page 2 1,"Operations and Maintenance”,or "O&M”,means expenses that are incurred on a regular basis (administration,audits,etc)and maintenance expenses that are incurred on an annual basis. m."O&M Account”means a separate non-interest bearing account established and maintained for holding and disbursing funds for O&M. n."Renewal and Replacement”,or "R&R”,means expenses costing greater than $5,000 and/or that are not replaced on an annual basis. o."R&R Fund”means an interest-bearing invested escrow account established and maintained for holding and disbursing funds for R&R. p."Fiscal Year”means the 12-month period from July 1*through June 30". SECTION 2;PROJECT DESCRIPTION This project will construct the Facility in Koyukuk that will replace all of the existing bulk fuel storage facilities of the Participants.The project is described in detail in the Plan and in the CDR (except as noted in the Plan),which is a concept design and construction cost estimate for consolidation and upgrade of bulk fuel storage in the community. SECTION 3:OWNERSHIP The ownership of Facility assets is described in detail in the Plan,particularly Section IL.Bulk Fuel Facility Upgrade. SECTION 4:RESPONSIBILITY FOR OPERATION,MAINTENANCE,REPAIR AND SUSTAINABILITY The responsibilities for operation,maintenance,repair and sustainability of the Facility and its assets are outlined in the Plan,particularly Section III.Bulk Fuel Facility Upgrade and Section V.Primary Operator.The Primary Operator agrees to operate and maintain the Facility in a prudent manner and to keep all Facility components (except those non-Common Facilities owned and maintained by other Participants)in good working order.The Primary Operator will be responsible for the O&M of the City facilities and for facilities that are common to both Participants,as designated in Appendix A:Participants'Operational Responsibilities. SECTION 5:OCCUPANCY OF AND ACCESS TO PREMISES For the economic life of its Facility assets,each Participant shall have the right to occupy the real property premises upon which its Facility assets are located.Each Participant also shall have access to the premises sufficient to enable the Participant to conduct its operations,maintenance,and repairs and to enjoy its other rights and discharge its other responsibilities under this Agreement. Each Participant shall maintain the premises that it occupies or uses in an orderly,neat and clean condition,free of hazard and nuisance.No Participant shall cause,maintain,or permit any public or private nuisance to exist on the premises.Each Participant shall conduct its operations on the premises so as to avoid interference with the other Participants'operations on the premises. Koyukuk Bulk Fuel Facility Access,Occupancy,Operations and Maintenance Agreement Page 3 SECTION 6:FINANCIAL RESPONSIBILITY All Participants agree to pay to the Primary Operator their respective share of costs as specified herein and as per the allocation formula used in the determination of costs in the Plan,and to assume the financtal responsibilities of the Participants as outlined in the Plan,particularly Section III. Bulk Fuel Facility Upgrade and Section V.Primary Operator. At least once each year,no later than May 31",the Primary Operator will convene a meeting of the Participants for the purpose of developing a budget of shared costs for the coming fiscal year beginning July 1".The Participants shall use their best efforts to reach agreement on the annual budget of shared costs.However,if no agreement is reached by June 30",the Primary Operator shall have the sole authority to establish a reasonable budget of shared costs for the coming fiscal year,based on its best estimate of actual costs for the year,and to collect from each Participant its proportionate share of the budgeted costs.Each Participant shall pay its share of the costs by May 31". The annual sum of deposit into the O&M Fund and R&R Fund will depend on actual costs,but for the first year this sum will be set at the levels specified in the Plan.Beginning in year two,the budget for the upcoming year shall be adjusted up or down by the shortfall or surplus of the prior year's budget as compared to actual O&M or R&R costs.In the event of unanticipated budget shortfalls,it may be necessary to adjust the annual budget during the course of the year. The Primary Operator shall keep the shared cost payments in a separate account,and shall use the payments only for the costs identified above.The Primary Operator shall properly account for all expenditures from this account.The Primary Operator must provide back-up documentation that fairly justifies its annual budget using the allocation methods described in the Plan.Each Participant may review the accounting records,invoices,and other documents associated with the shared costs, and the information upon which the proposed budget of shared costs is based. SECTION 7:EXCLUSIONS Operations and maintenance of each Participant's fuel dispensing facilities will be the responsibility of the individual participant and are not part of this Agreement.Neither the AEA nor the Commission will take responsibility for any environmental cleanup and remediation issues;see the Plan,for a discussion of project exclusions,particularly Section III.Bulk Fuel Facility Upgrade. SECTION 8:BUSINESS OPERATING PLAN The Business Operating Plan,the "Plan”,is incorporated by reference herein and the execution of this Agreement is an agreement to adhere to all of the Terms &Conditions contained in the Plan. SECTION 9:REPORTING AND AUDITING The responsibilities and requirements for reporting and auditing are detailed in the Plan,particularly Section V.Primary Operator and Section VIII.Regulatory Compliance.The Primary Operator shall provide all Participants with copies of the annual financial report and audit. Each Participant has a right to review and copy,at its own expense,any plans,manuals,reports,and other documents required by or submitted to,any regulatory agency by any other Participant, including but not limited to submittals to the Alaska Department of Environmental Conservation, the U.S.Coast Guard,and the U.S.Environmental Protection Agency. Koyukuk Bulk Fuel Facility Access,Occupancy,Operations and Maintenance Agreement Page 4 SECTION 10:DISPUTES If a dispute arises between the patties to this agreement,the parties will attempt to resolve the dispute through mediation.If that is unsuccessful,a party may bring an action to resolve the dispute in the Superior Court of the State of Alaska. SECTION 11:LAND All unresolved land issues will be resolved prior to startup of Facility construction.See Site Control Documents,if needed,for details of land ownership,lease,or other usage terms and conditions. SECTION 12:SECONDARY OPERATOR The Secondary Operator,as identified in the Plan,Section VI.Secondary Operator shall be the Secondary Operator until such time that it chooses not to act as such or the Commission designates an alternative Secondary Operator.If the Secondary Operator,as designated in the Plan,chooses not to act as Secondary Operator,the Commission must approve its successor. The Secondary Operator does not have any responsibilities under this Agreement unless and until it is designated to act in the role of the Primary Operator.At that time,its responsibilities will be that of the Primary Operator pursuant to this Agreement and as described in the Plan. SECTION 13:TERM This Agreement shall become effective on the date when all Participants have signed this Agreement and shall remain in effect until terminated by the Participants. SECTION 14:MODIFICATIONS AND IMPROVEMENTS Each Participant shall have the right to make such modifications,additions and repairs to its facilities as are reasonably necessary to its operations and activities. If a Participant's property on the premises is destroyed by fire,earthquake,or other cause,the Participant shall remove the debris and clean up the immediate area as soon as possible within 270 days of the occurrence. SECTION 15:COMPLIANCE WITH LAWS AND ACCEPTED PRACTICES Each Participant that is responsible for the operation and maintenance of its facilities will conduct its operations in compliance with manufacturer's recommendations and all applicable state and federal laws and regulations.In addition,each Participant shall at all times conduct its operations in accordance with the safety,fire prevention and oil spill prevention practices generally accepted as proper for such facilities.Each Participant shall comply with the spill prevention and response procedures established in the Facility Response Plan,Operations Manual,and Spill Prevention Control and Countermeasure Plan. If a release or threatened release of oil or other hazardous substance occurs,the responsible party will promptly take whatever measures ate necessary to stop or prevent the release,clean up the release,mitigate the damage caused thereby,and restore the atea."Responsible party”means the Participant whose activities proximately caused the release or threatened release,or if the release or threatened release is not caused by an identifiable activity,the owner of the premises at which the release or threatened release occurs.As described in the Facility Response Plan,in the event of an oil spill,all Participants shall assist one another with manpower and equipment to cleanup spilled fuel. Koyukuk Bulk Fuel Facility Access,Occupancy,Operations and Maintenance Agreement Page 5 SECTION 16:SUCCESSORS BOUND All covenants and provisions of this Access,Occupancy,Operations,and Maintenance Agreement shall extend to and bind the legal representatives,successors,transferees,assigns,and lessees and sublessees of the parties. SECTION 17:COUNTERPARTS This agreement may be executed in several counterparts,each of which shall be an original and all of which together shall constitute one and the same instrument SECTION 18:NOTICES Any and all notices required or permitted under this Agreement,unless otherwise specified in writing by the party whose address is changed,shall be addressed as follows: City:City of Koyukuk Attn:Mayor P.O.Box 49 Koyukuk,AK 99754 YKSD:Yukon Koyukuk School District Attn:Superintendent 4762 Old Airport Way Fairbanks,AK 99709-4456 CITY OF KOYUKUK Lo em SA 3-U/-0Y (Signature)(Date) Jason Lelomut 2 layer (Name Printed)(Title)' YUKON KOYUKUK SCHOOL DISTRICT Nan Soon alas In(Signature)(Date) Cnr istoplnar S (mon Dvpecinitandentt(Name Printed)(Title) Koyukuk Bulk Fuel Facility Access,Occupancy,Operations and Maintenance Agreement Page 6 Appendix A Participants'Operational Responsibilities Participant System Information System City YKSD Total Tank volume,gross 90,000 15,000 96,000 Intermediate tank volume,gross 8,900 2,000 10,900 Dispenser volume,gross 6,000 6,000 Subtotals 104,900 17,000 112,900 Pro-ration 86.1%13.9%100% #tanks 8 2 10 #retail dispensers 1 1 #pumps 6 1 7 #valves 37 10 47 Responsibility for Performing the Work (an "X"means responsible) HMS Cost Category Task City YKSD Allocation Method O&M A1_jGround Maintenance X Shared cost,prorated by gross volume A2_|Fuel delivery x Shared cost,prorated by gross volume Minor repairs,city X City only contributes Minor repairs,school x School only contributes Pressure test,all tanks in tank farm X Shared cost,prorated by gross volume A3_{Training Xx Shared cost,prorated by gross volume Administration Xx Shared cost,prorated by gross volume Supervision x Shared cost,prorated by gross volume Annual audit x Shared cost,prorated by gross volume Insurance,city x City only contributes Insurance,school X School only contributes Repairs B1A Repair fence Xx Shared cost,prorated by gross volume B1B Grade pads Xx Shared cost,prorated by gross volume Repair catwalk,ladder xX Shared cost,prorated by gross volume B2A |Replace pumps,city X City only contributes Replace pumps,school X School only contributes Replace valves &gauges,city Xx City only contributes Replace valves &gauges,school x School only contributes B2B (Barge fill line manifold repair X Shared cost,prorated by gross volume Tank fill lines manifold Xx Shared cost,prorated by gross volume B3 Electrical maintenance Xx Shared cost,prorated by gross volume Replacement C1A 'Fence replacement X Shared cost,prorated by gross volume C1B iPad,catwalk grating &ladder replace X Shared cost,prorated by gross volume Steel dike wall and platform X Shared cost,prorated by gross volume C2A Retail dispensers,replacement Xx City only contributes Tanks,replacement,city Xx City only contributes Tanks,replacement,school x School replaces own C2B |Dispensing lines,replace X City only contributes Utility fuel transfer lines,replace,city x City only contributes Fuel transfer lines,replace,school X Schoo!only contributes Fill lines -Header to storage Xx Shared cost,prorated by gross volume Valves replace,city X City only contributes Valves replace,school xX School only contributes C2C Tank inspection,city Xx City only contributes Tank inspection,school Xx School only contributes C3 [Electrical replacement,city Xx City only contributes Electrical replacement,school Xx School only contributes SECONDARY OPERATOR AGREEMENT FOR THE KOYUKUK BULK FUEL STORAGE AND ELECTRIC POWER UTILITY 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 Koyukuk ("City”) for the upgrading of bulk fuel storage and electric power generation facilities at Koyukuk,Alaska (the "Facility”)owned by the City and WHEREAS,grant funds may also be provided by HUD and/or the State of Alaska,and the financial aspects of those separate grants will be managed and the Facility construction will be overseen by the Commission (which term shall include HUD and/or the State of Alaska in this Secondary Operator Agreement for the Facility,hereinafter the "Agreement”);and WHEREAS,the Commission has adopted Sustainability Criteria that apply to the use of Commission funds for the Facility,in order to ensure the long-term economic sustainability of the Facility;and WHEREAS,the Commission and the City have agreed to a Business Operating Plan consistent with the Sustainability Criteria for the operation of the Facility,as contained in the Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Project Business Operating Plan dated January 25,2004 ("Plan”);and WHEREAS,the Plan specifies that the City shall act as the Primary Operator of the Facility,as specified therein,and shall operate the Facility in compliance with the terms and conditions of the Plan;and WHEREAS,the Commission and the City agree that,if the Primary Operator is not operating the Facility in compliance with the terms and conditions of the Plan,the Commission may designate a Secondary Operator to assist the Primary Operator or to take over such functions of the Facility operations that the Commission determines are necessary for such time as it determines is necessary, pursuant to the terms and conditions of this Agreement; Now THEREFORE,the Commission and the City agree as follows,in consideration for the mutual promises contained herein and the benefits to the parties resulting from the completion and operation of the Facility: 1.The Primary Operator shall operate the components of the Facility specified in the Plan in accordance with the terms and conditions of the Plan and the requirements contained herein. 2.In addition to,and consistent with its duties specified in the Plan,the Primary Operator shall,in a timely manner: 2.1 properly establish and maintain accurate books and records; 2.2 account for,bill for,and use its best efforts to collect all fuel sales and all other receivables; Secondary Operator Agreement for the Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Project Page 2 of 4 2.3 2.4 2.5 2.6 2.7 2.8 deposit moneys into the appropriate accounts,including deposits into the Operations & Maintenance Fund account as well as deposits into the Renewal &Replacement invested escrow account (as such accounts are defined in the Plan); maintain adequate cash reserves for fuel purchases so that emergency fuel shipments are not necessary; obtain annual audits showing the absence of any management or financial irregularities; perform necessary maintenance of and repairs to the Facility; provide or obtain necessary training for Facility operations;and meet its financial obligations. 3.If the Commission determines,in the exercise of its sole discretion,that the Primary Operator has failed or is unable to operate the Facility in accordance with the Plan and this Agreement and that this failure or inability significantly threatens the long-term economic sustainability of the Facility,the Commission may contract with and utilize a Secondary Operator. The Commission has the sole right to transfer the full custody and control of the assets and business operations of the Facility,including but not limited to,the cash,receivables,and inventory of the Facility,to the Secondary Operator and assign the Secondary Operator responsibility for partial or total management of the Facility. 4.1 4.2 4.3 The Commission may appoint the Secondary Operator to assist the Primary Operator in some or all aspects of the Facility operations or to take over some or all aspects of Facility operation from the Primary Operator,in such a manner and for such period of time as the Commission determines to be necessary and appropriate for operation of the Facility in compliance with the Plan and the long-term economic sustainability of the Facility.(For example,the Secondary Operator may be asked to assist the Primary Operator for a short period of days or weeks in bringing certain aspects of the operations back into compliance. Alternatively,the Secondary Operator may be asked to replace the Primary Operator as Facility operator.The foregoing are intended only as illustrative examples,without limiting the effect of this Agreement.) If the Commission utilizes a Secondary Operator,the Primary Operator will transfer the complete control and authority over the following assets to the Secondary Operator:the books and records relating to the Facility operations,accounts receivable,and all account funds.The City agrees to cooperate with the Commission and the Secondary Operator in the release of the stated assets and the transfer of operations to the Secondary Operator. The Secondary Operator will be entitled to reasonable compensation for its services.Thiscompensationwill,at a minimum,reimburse the Secondary Operator for any and allexpensesassociatedwiththeirdutiesasFacilityoperator,plus a reasonable profit.Theprofitwillnotexceedwhatisconsiderednormalandcustomaryforlikeservice,as determined by the Commission in the exercise of its sole discretion. Secondary Operator Agreement for the Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Project Page 3 of 4 10. 4.4 The parties anticipate that,if a Secondary Operator is appointed,the Commission will appoint (to 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 time a Secondary Operator is needed,or other circumstances may prevent (to be determined)from serving as Secondary Operator.Therefore,the City acknowledges and agrees that the Commission may appoint any qualified entity or entities to serve as Secondary Operator.The Commission will consult with the City on the replacement to the Secondary Operator;however,the Commission maintains final approval authority for the replacement Secondary Operator. 4.5 The Commission will act reasonably and responsibly in its enforcement of the Plan and this Agreement and its designation of a Secondary Operator,consulting with the City and taking into account the needs and interests of the community of Koyukuk as well as the general public interest.If the Commission employs the Secondary Operator,the Commission shall oversee the operations of the Secondary Operator to make sure that it is conducting its operations reasonably,in a cost-efficient manner,and consistent with the needs and interests of the community as well as the general public interest. If a dispute or controversy arises between the parties to this Agreement or among the parties to an agreement with the Secondary Operator,application or enforcement of this Agreement shall be decided through mediation.If mediation is unsuccessful,any party to this Agreement may bring an action to resolve the dispute in the Superior Court of the State of Alaska. This Agreement may be executed simultaneously in two (2)or more counterparts,each of which will be considered an original,but all of which together will constitute one and the same instrument.The exchange of a fully executed Agreement (in counterparts or otherwise)by fax shall be sufficient to bind the parties to the terms and conditions of this Agreement. No delay on the part of a party in the exercise of any right,power,or remedy shall operate as a waiver thereof,nor shall any single or partial exercise of any right,power,or remedy preclude other or further exercise thereof or the exercise of any other right,power,or remedy.No amendment, modification,or waiver of,or consent with respect to,any provision of this Agreement shall be effective unless it shall be in writing and signed and delivered by the parties hereto. All notices,demands or requests required or allowed under this Agreement or applicable law from one party to another shall be in writing and delivered in person or sent by mail,certified or registered,postage prepaid,to the parties hereto at the addresses set forth in this Agreement or to such other persons and addresses as either patty may designate.Notice shall be deemed to have been given three (3)days after the day of mailing. This Agreement is a contract made under and governed by the laws of the State of Alaska.Allobligationsandrightsofthepartiesstatedhereinshallbeinadditionto,and not in limitation of, those provided by applicable law. This Agreement shall be binding upon,and inure to the benefit of,the parties hereto,and their respective heirs,successors,and assigns. Secondary Operator Agreement for the Koyukuk Bulk Fuel Facility and Electric Utility Upgrade Project Page 4 of 4 ; 11.This Agreement represents the entire agreement between the parties,and there are no other agreements,either oral or written,with respect to the subject matter of this Agreement. This AGREEMENT has been reviewed,agreed to,and executed by the following parties: for the CITY OF KOYUKUK b °-Cm iho _3-67 (Signature)(Date) ase Lalemule Llayy f (Name Printed)(Title) for the DENALI COMMISSION»Le eS 7/0 [&(Signature)Mate)| "Tessa LD:Binner Wicecter ef Programs(Name Printed)(Title): for (TO BE DETERMINED) by (Signature)(Date) (Name Printed)(Title) 2003-000168-0 Recording Dist:415 -Nulato UTIL Nulato Rec ondm,Disttrek Retunte:Ge Aathorage,fk GnttyPreamble.The community of Koyukuk has an opportunity to receive fundingfromtheDenaliCommissiontorenovateitspowerandfuelstoragefacilitiesat Koyukuk,The City of Koyukuk needs to secure an interest in land in order to meet the Denali Commission's site control requirements for this project.The purpose of this Agreement is to provide the framework for obtaining site control. THIS AGREEMENT is made as of the add,day of Ocfabex ,2003,byandbetweentheCityofKoyukuk(City),whose mailing address is P.O.Box 49,Koyukuk,AK 99754,and the Yukon-Koyukuk Schoo!District (School District),whose mailing address Is 4762 Old Airport Way,Fairbanks,AK 99709-4456. NOW THEREFORE,in consideration of mutual agreements and covenantscontainedinthisAgreementthePartiesherebyagreeandcovenantasfollows: 1.THIS MEMORANDUM and the stated appendix embody the wholeAgreementbetweenthepartiesheretoasitpertainstotherealestate,andtherearenopromises,terms,conditions,or obligations referring to thesubjectmatterhereof,other than as contained herein. 2.Property Description and Ownership.Lot 2,Block 5,U.S.Survey 4488 IscurrentlyownedbytheStateofAlaska,Department of Transportation andPublicFacilities(DOT&PF).The Koyukuk School is located on this lot.ThecityownedwasheteriaandlagoonarealsolocatedonthisJot. 3.Location of Proposed New Facilities.It has been proposed that a new powerplantandbulkfuelstorageareabelocatedonthislot. 4,Transfer of Ownership:DOT&PF has indicated a willingness to transfer titletotheappropriatepublicentitiesuponanagreementbetweenthepartiesandasubdivisionoftheparcel. 5.Boundary Agreement.The parties agree that the boundaries of thesubdivisionsnouldbeasshowninAppendixA. 6.Community ball field use.The School!District agrees to allow the community _to use the existing ball field area.The area around the basketball cout,<P”softball field and playground is to remain open to the public.The city iss”allowed access for continued maintenance and upgrading.ff the schoolfacilityisexpandedIntotheballfieldarea,the School District will developanotherareaofequalsizeandqualityonCityownedland.The communitywillhavecontinueduseofthenewathleticimprovements. City of Koyukuk Site Control Documents Page 1 of 5 7,Sewer pipe ownership.The sewer pipe behind the teacher housing is to beownedbytheSchoolDistrictuptothejunctionwiththeCityownedfine.ThemainsewerlinerunningfromthewaterplanttothelagoonwillremaininCityownership. 8.Request for subdivision survey and land transfer.The parties hereby agreethatthesubjectparcelbesubdividedinaccordancewithparagraph5aboveandthatupontherecordingofthesurveythepartieswillrequestthatDOT&PF transfer title to the City of Koyukuk and to the Yukon-KoyukukSchoolDistrict.The requesting parties will provide legal descriptions for thetransferdocumentation.The cost for the survey and iand transfer will beincludedaspartoftheprojectcost. 9.Request for right of entry.The parties will prepare a request that DOT&PFgrantarightofentrytotheCityofKoyukuktoallowtheproposedprojecttoproceed.. 10.THIS AGREEMENT shall be deemed a CONTRACT extending to andbindinguponthepartiesheretoandupontherespectiveheirs,devises,executors,administrators,legal representatives,successors and assigns of the parties. 11.Modification of Agreement:This agreement may be modified by a documentinwritingexecutedbythepartiestothisAgreement. iN WITNESS WHEREOF,the parties hereto have executed this Agreement asofthedatesetforthabove. Appendix A -Boundary Map LAUZot§ 2003-000168-0 City of Koyukuk Site Control Documents Page 2 of 5 City of Koyukuk BY Le iLits:LLases ACKNOWLEDGEMENT STATE OF ALASKA ) }ss.FOURTH JUDICIAL )DISTRICT THIS IS TO CERTIFY that on the _/77A day of Gets Ae ,2003,before me,the undersigned Notary Public for the State of Alaska,dulycommissionedandswomassuch,personally came fagan Wale mute",for andonbehalfoftheCityofKoyukukandacknowledged"hat this MEMORANDUMOFAGREEMENTwassignedandsealedonbehalfoftheCityofKoyukukbyproperauthoritydelegatedandvestedinhimself,and acknowledged furthersaidinstrumenttobethefreeactanddeedoftheCityofKoyukuk. IN WITNESS WHEREOF,|have hereunto sat my hand and affixed my seal thedayandyearfirstabovewritten. ken Nee tNotaryPublicforXlaskaMyCommissionexpires:474 7-2 Z we tase .wah Be up oageetaae:.--w *ae,RY 5 ni Ow "Ae. =2 oaZoe S 7 ..22%,at tie.at,wt ad .PMA aeaaeMenger AM RUN 2003-000168-0 City of Koyukuk Site Control Documents Page 3 of 5 Yukon-Koyukuk School DistrictBy:(ae)Shinnits:Supsaitindust ACKNOWLEDGEMENT STATE OF ALASKA hes.EO CL IUDICIAL ) THIS IS TO CERTIFY that on the _ ¢”*day of _Octaher , 2003,before me,the undersigned Notary Public for the STATE OF ALASKA,uly commissioned and sworn as such,personally appearedheistodlyceSimon,on behalf of the Yukon-Koyukuk School District andacknowledgedthatthisMEMORANDUMOFAGREEMENTwassignedandsealedonbehalfoftheYukon-Koyukuk School District by proper authoritydelegatedandvestedinhimself,and acknowledged further said instrument tobethefreeactanddeedonbehalfoftheYukon-Koyukuk School District. IN WITNESS WHEREOF,|have set may hand and affixed my Seal the day andyearfirstabovewritten. Notary Public in and for AlaskaMyCommissionexpires:__0724/07--¥ Oaof 2003-000768-0 City of Koyukuk Site Control Documents Page 4 of 5 gjogsegsjusmmNs0C]youu05ausynynfoyyjoAIDRHEMUSKPAT ALLEYSON ATH \ow :spon?\'To Be|widow Kean F |+E School Prsiiet :5|6 6So Antes |(55 Ye !:airs,ure Uh ¥E8 t Land ts be ConveyQUEN5.488 e {sum dyatraa4.7 oe tainoq->r saree 9a oe Pe aot |woe corey,|OT ROeTH wsmiwa WEST oy!5 |crm Wamp |6( SON oo"i SureofAlaskaCepeofCocuemity&Eoenms DevelopacntfoeAlaskatedestrallDeveiopenere&Export Autcrity's Aladcs Prerypy Authenty KOYUKIEK SCHOOL LAND AGREEMENT APPENDIX A GRANT AGREEMENT -BULK FUEL UPGRADE PROJECT State of Alaska Alaska Energy Authority = = qe)=ENERGY AUTHORITY Grant Agreement Grant Agreement Number Amount of Funds 2195194 $1,700,000.00 Project Code(s)Encumbrance Number/AR Project Title340190KoyukukBulk Fuel Upgrade Grantee Authority Contact Person Name Name City of Koyukuk David Lockard Street/PO Box Title P.O.Box 49 Project Manager City/State/Zip Street/PO Box Koyukuk,Alaska 99754 813 W.Northern Lights Bivd Contact Person City/State/Zip Jason Malemute,Mayor Anchorage,AK 99503 Phone Fax Phone Fax 907-927-2215 907-927-2215 907-269-4541 907-269-3044 AGREEMENT The Alaska Energy Authority (hereinafter 'Authority')and the City of Koyukuk (hereinafter 'Grantee')agree as set forth herein. Section 1.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 $1,700,000.00,unless the grant amount is amended as provided herein. Section Il.The Grantee shall apply the grant funds to the construction of the Project and perform all of the work and other obligations required by this Agreement. Section Ill.Performance under this agreement begins upon signature by the Authority's Executive Director and shall be completed no later than December 31,2004. Section IV.The agreement consists of this page and the following: ATTACHMENTS APPENDICES Article A:Definitions Appendix 1:Notice of Project Completion Article B:Special Provisions Appendix 2:Funding Sources Article C:General Provisions Appendix 3:In-Kind Contributions Appendix 4:Employer Identification Number App AMENDMENTS:Any fully executed amendments Appendix 5:EIN Power of Attorney to this Agreement Grantee Authority, Signature Signatu r AvaLeLbA=Printed Name and Title Jason Malemute,Mayor Printed/Name and Title Ronald W.Miller,Executive Director ne 3 M/-04 Date ©34-04/ Koyukuk Bulk Fuel Upgrade Project Grant Agreement Number 2195194 Page 2 of 18 ARTICLE A.DEFINITIONS In this Grant Agreement: a)"Authority”means the Alaska Energy Authority,a public corporation of the State of Alaska.The Authority is herein charged with the role and responsibility as both the Grantor and as an agent of the Grantee. b)"Denali Commission”means the federal-state commission established under 42 USC 3121 and its successors or assigns. c)"Executive Director'means the Executive Director of the Authority or authorized designee. d)"Grantee”means the City of Koyukuk. e)"Grantor”means the Alaska Energy Authority. f)"Project”means the Koyukuk Bulk Fuel Upgrade Project. g)"Procurement Manager”means the employee of the Authority who determines disputes as provided in Article C.Section 3. h)"State”means the State of Alaska. i)"Project Manager”means the employee of the Authority in charge of the Project. j)"Design Documents”are the technical documents and drawings specifying how the Project is constructed. k)"Construction Manager'means the on-site supervisor of the Project as assigned by the Authority.The Construction Manager may or may not be an employee of the Authority. |)"Project Completion”means the Project is complete,the work is complete, and all Project costs have been billed and paid as determined by the Authority. m)"Grants Manager”means the employee of the Authority in charge of managing the Grant. AEA:Rev.11/03 H:Mjudd/Grants/2003/2003Q4/Koyukuk -2195194.doc Koyukuk Bulk Fuel Upgrade Project Grant Agreement Number 2195194 Page 3 of 18 ARTICLE B.SPECIAL PROVISIONS Subject to appropriation and availability of funds,the Authority agrees to grant to the Grantee the amounts stated herein,and the Grantee agrees to expend grant funds only for eligible costs to perform the Scope of Work as attached and stated herein. Section 1.Description of Project and Scope of Work. This grant provides funding to be used for the design and construction of a new code compliant consolidated bulk fuel tank farm in Koyukuk,Alaska,as described more fully in the 65%design document dated June 19,2003,and detailed design documents and specifications to be prepared by the Authority. Section 2.Project Funding Sources. This Grant is subject to appropriation and availability of funds from the sources of funding shown in Appendix 2.The Authority may redesignate the sources of the grant funding and/or adjust the project budget shown in Appendix 2,and will provide an updated Appendix 2 to the Grantee upon the Grantee's request. If the Project costs exceed the Grant funds and if additional funds are available to perform the work described in this Agreement,the Authority may grant additional funds to the Grantee to perform this work by issuing and providing to the Grantee an amended Appendix 2 showing the amended Grant amount.Grantee acknowledges that such a grant of additional funds will be pursuant to the terms and conditions of this Agreement, and acknowledges that by accepting the grant funds and the grant-funded Project work it is accepting them subject to the terms and conditions of this Agreement. Section 3.Grant Disbursements. a)The Authority will disburse grant funds as eligible costs are incurred. b)The Authority may engage an accounting firm (Trustee)to provide Project related services.If engaged,the Trustee may receive and disburse a portion of Grant funds to cover various project costs which may include payroll and related obligations, including taxes and workers compensation insurance,and other selected project costs as the Authority directs.If engaged,the Trustee may be used to prepare quarterly and annual payroll tax reports for the IRS and the State of Alaska, Department of Labor,as applicable,and W-2 Forms for the Project employees.If engaged,the Trustee will submit such reports and pertinent checks to the appropriate federal and state offices. If the Authority retains the services of the Trustee,the Authority will be the liaison between the Grantee and the Trustee.The Authority will follow the procurement regulations specified by the funding sources. AEA:Rev.11/03 H:Mjudd/Grants/2003/2003Q4/Koyukuk -2195194.doc Koyukuk Bulk Fuel Upgrade Project Grant Agreement Number 2195194 Page 4 of 18 c)The Authority,as agent for the Grantee,will account for and disburse selected Grant funds for any Project costs not covered under (b)of this section in accordance with the funding sources referenced in Appendix 2.The Authority as agent for the Grantee will disburse Grant funds as required by the funding sources. d)Upon Project Completion: 1.any Grant funds not expended under this agreement and any interest accruing on the grant funds belong to the Authority and shall be returned to the Authority; 2.the Authority may apply to other projects any other grant monies authorized for the Project but not expended or obligated under this agreement. Section 4.Eligible Costs Under This Grant. a)The Authority,as Grantor,shall have sole discretion to determine which projectcostsareeligibletobepaidforfromGrantmoniesunderthisagreement.No workshallbeperformedorinitiatedwithoutthepriorapprovalfromtheAuthority.UponapprovalbytheAuthority,the following necessary reasonable,actual expensesassociatedwiththedesignandconstructionoftheProjectareeligibleforpaymentorreimbursementfromgrantfunds: 1.Payroll Costs.Payroll costs are comprised of wages paid to Grantee personnelfortimeworkeddirectlyontheProject,plus payroll taxes and insurance,as wellasvacation,holiday,sick leave and retirement benefits,if any. 2.Direct Non-Salary Costs.These costs must be directly attributable to theProjectandshallincludethefollowing: vi. The costs associated with consultants,inspectors,surveyors,contractors,subcontractors,and other services required to design and construct the Project. .The cost of materials,supplies and freight purchased by,or on behalf of,theGranteeandusedintheconstructionoftheProject. The Grantee's costs of reproducing plans,specifications,maps,reports,and other documents. .The cost of long distance communication and other utilities needed for construction. Purchase or rental of small equipment or tools needed in the construction of the Project. Insurance covering the Grantee and the Authority. 3.The Authority may pay for costs not specifically listed in this section from Grantmonies,if in the determination of the Authority the costs are necessary. AEA:Rev.11/03 H:Mjudd/Grants/2003/2003Q4/Koyukuk -2195194.doc Koyukuk Bulk Fuel Upgrade Project Grant Agreement Number 2195194 Page 5 of 18 b)Costs not in listed in subsection a)of this section or not deemed eligible by theAuthorityundera),3)of this section are not eligible to be paid for from moneygrantedunderthisagreement. Section 5.Authority as Grantee's Agent. a)The Authority will serve as the Grantee's agent for the design and construction management of the Project,including,but not limited to,where applicable,issuing Invitations to Bid and selecting contractors.The Authority will be responsible for all matters related to the Project design and construction,including,but not limited to: approval of plans and specifications;choices of scheduling,manpower,and methods;procedures for administering the Project;procurement of materials; insurance during construction;disposition of surplus equipment;payment of all Project billings;complying with all federal reporting requirements (except as provided in Article C section 12 or elsewhere herein);performance of final project inspection;and issuance of a Notice of Project Completion.Permitting and other items specified herein are the responsibility of the Grantee.The Construction Manager,who serves as an on-site representative of the Authority,has the right to hire and fire,and establish wage rates and work hours of Project employees. The Authority shall not be responsible for environmental investigation or remediation of the existing facilities or properties,or for any other environmental matters.In addition,the Authority will not be responsible for the removal and decommission of any existing facilities. b)If the funding sources for the Project include Indian Community Development Block Grant monies or Community Development Block Grant monies granted to the Grantee,the Authority may enter into a Grant Management Agreement with the Grantee in relation to some or all of those monies.If such agreement is entered into, the Authority may have additional duties as the agent of the Grantee as outlined in those Agreements which will be attached as an appendix hereto. Section 6.Grantee's Responsibilities a)The Grantee is responsible for securing the real property interests necessary for the construction and operation of the Project,through ownership,leasehold,easement, or otherwise.The Grantee also is responsible for obtaining the required permits and approvals.These permits may include,but are not limited to,Corps of Engineers' Wetlands Permit,State Fire Marshal approval,rights-of-way for the pipelines,and site control,including any necessary Coastal Zone Management coordination through the Division of Governmental Coordination (DGC).The Authority will assist the Grantee in obtaining these permits and approvals. b)The Grantee will assist the Authority in obtaining qualified local labor for the Project and will provide necessary local administration assistance,including recommending qualified local personnel;assisting in obtaining necessary personnel information; assisting in obtaining housing for nonresident workers;facilitating communications AEA:Rev.11/03 H:Mjudd/Grants/2003/2003Q4/Koyukuk -2195194.doc Koyukuk Bulk Fuel Upgrade Project Grant Agreement Number 2195194 Page 6 of 18 between the Authority,the community and local employees;and serving as a liaison between the Authority and the community. c)The Grantee will provide,as an in-kind contribution,local equipment (excluding operator,fuel and maintenance)and tools as available to support the Project,and the contribution specified in Appendix 3.The Grantee will not be paid for its contributions of the use of equipment,tools,supplies,materials,or its contributions of services except as agreed to in writing by the Authority.The Authority requires in- kind contributions to demonstrate that the grantee and the community are committed to and invested in the proposed project.Typical in-kind contributions include,but are not limited to:land for the tank farm,the use of heavy equipment as available, lodging,etc.The Authority encourages the grantee and the community to support this project with in-kind contributions to the greatest extent possible. d)The Grantee is responsible for reviewing project documents and monitoring the Project work to the extent necessary for the Grantee to determine that the work is proceeding satisfactorily and so that it can perform its responsibilities pertaining to the Project,including its responsibilities to operate and maintain the Project after Project completion.The Grantee will raise with the Authority promptly and prior to Project completion any concerns or issues it may have regarding the Project,and if those concerns or issues are not satisfactorily resolved will promptly give written notice with a detailed description of the concerns or issues to the Authority's contact designated in Article C,section 18. Section 7.Project Completion Notice. The Grantee shail sign the Notice of Project Completion located at Appendix 1 within 15 days after it is delivered by the Authority.Upon receipt of the signed signature page, the Authority will close the Grant.The Grant will automatically be closed if the Grantee fails to return the Notice of Project Completion within 30 days after it is delivered by the Authority. Section 8.Grantee Responsibilities After Project Completion. a)The Grantee will not sell,transfer,encumber,or dispose of any of its interest in the facilities constructed with this grant funding during the economic life of the Project without prior written Authority approval. b)The Grantee agrees that it will complete the Project,and that upon completion of the Project it will be responsible for and will perform those activities and functions necessary for the operation and maintenance of the Project for the public benefit, except for those that are expressly the responsibility of another party under this Grant Agreement or any appendices hereto.These responsibilities may not be altered or transferred without the prior written approval of the Denali Commission. AEA:Rev.11/03 H:Mjudd/Grants/2003/2003Q4/Koyukuk -2195194.doc Koyukuk Bulk Fuel Upgrade Project Grant Agreement Number 2195194 Page 7 of 18 ARTICLE C.GENERAL PROVISIONS Section1.Inspection and Retention of Records. The Grantee shall allow the Authority or its designees to examine all Project related records at any reasonable time for the purpose of copying,audit or inspection.The Grantee shall ensure that the Authority,its contractors and consultants,and any Secondary Operators have reasonable access to Project facilities during construction of the Project,and reasonable access for performance analysis and testing over the life of Project facilities for no cost.The Grantee shall retain all Project related records for four years following the completion date of the Project or until final resolution of any audit, negotiation,claim or other action related to the Project which is started prior to the end of the four year period,whichever is later. Section 2.State and Authority held harmless. As a condition of this Grant,the Grantee agrees to defend,indemnify,and hold harmless the Authority and the State of Alaska,and their agents,servants,contractors, and employees,from and against any and all claims,demands,causes of action, actions,and liabilities arising out of,or in any way connected with this grant or the project for which the grant is made,howsoever caused,except to the extent that such claims,demands,causes of action,actions or liabilities are the proximate result of the sole negligence or willful misconduct of the Authority or the State of Alaska. Section 3.Disputes. a)The parties agree that any dispute arising out of this agreement which cannot be resolved by mutual agreement shall be addressed as set forth in this Section.It is further agreed and understood that compliance with this Section shall be a condition precedent to bringing or filing an action or court proceeding for determination of any dispute.The intent of the dispute process set forth in this Section is to facilitate the timely resolution of disputes arising from or out of this agreement. b)Disputes which cannot be resolved by agreement shall be decided by the Procurement Manager.The decision shall be in writing and be made not more than 60 days after receipt by the Procurement Manager of all appropriate information (as determined by the Procurement Manager)from the Grantee.Failure of the Grantee to furnish appropriate information (as determined by the Procurement Manager)to the Procurement Manager within 21 days of the receipt of the Procurement Manager's request constitutes a waiver of the Grantee's claim. c)The time for issuing the Procurement Manager's decision may be extended for good cause by the Executive Director.The Procurement Manager shall notify the Grantee in writing that the time for the issuance of a decision has been extended and of the date by which a decision shall be issued.The Procurement Manager shall furnish a copy of the decision to the Grantee by certified mail or other method that provides AEA:Rev.11/03 H:Mjudd/Grants/2003/2003Q4/Koyukuk -2195194.doc Koyukuk Bulk Fuel Upgrade Project Grant Agreement Number 2195194 Page 8 of 18 h) evidence of receipt.Pending a final decision,the Grantee shall proceed with diligent performance of the agreement in accordance with the Procurement Manager's decision notwithstanding any disagreement with that decision. The Procurement Manager's decision is final unless,within 30 days of receipt of the decision,the Grantee delivers a Notice of Appeal to the office of the Executive Director.The Grantee shall provide a copy of the appeal to the Procurement Manager. The appeal must contain a copy of the decision being appealed and identification of the factual or legal errors in the decision that form the basis for the appeal.General assertions that the Procurement Manager's decision is contrary to law or facts are not sufficient. Except as provided in subsection (g)of this section,a hearing on an appeal to the Executive Director shall be conducted according to the procedures set out in (h)of this article. Within 15 days after receipt of an appeal on a dispute,the Executive Director may adopt the decision of the Procurement Manager as the final decision without a hearing,if the Executive Director determines that there are no material issues of fact. The Executive Director may act as the hearing officer and upon hearing the evidence,render findings of fact and conclusions of law,or the Executive Director may appoint an impartial hearing officer to conduct the hearing. The hearing officer shall arrange for a prompt hearing and notify the parties in writing of the time and place.The hearing will be conducted in an informal manner and will be held in Anchorage,Alaska.Participants outside Anchorage may attend by phone.The hearing officer may conduct the hearing as set forth in AS 36.30.670(b), which is incorporated herein by reference. If the Executive Director is not acting as the hearing officer,the hearing officer shall recommend a decision to the Executive Director based on the evidence presented. The recommendation must include findings of fact and conclusions of law.The Executive Director may affirm,modify,or reject the hearing officer's recommendations in whole or in part,may remand the matter to the hearing officer with instructions,or take other appropriate action. The Executive Director's decision shall be sent within 20 days after the hearing to all parties by personal service or certified mail.The decision of the Executive Director is final and conclusive unless appealed to superior court,Third Judicial District at Anchorage within 30 days of receipt of the decision.The laws of the state of Alaska govern this agreement. AEA:Rev.11/03 H:Mjudd/Grants/2003/2003Q4/Koyukuk -2195194.doc Koyukuk Bulk Fuel Upgrade Project Grant Agreement Number 2195194 Page 9 of 18 Section 4.Termination. a)The Grantee shall have no rights to compensation or damages for termination except as provided in this Section. b)In addition to all other rights available under law,the Authority may terminate this Agreement or stop work on the Project for the convenience of the Authority or for cause upon ten (10)days written notice. c)"Cause"for termination shall exist when the Grantee has failed to perform under this Agreement,has provided incorrect or misleading information or has failed to provide information which would have influenced the Authority's actions.In order for termination to be for cause,the Grantee's failure to perform or the Grantee's provision of incorrect,misleading,or omitted information must be material. d)If this Agreement is terminated for cause,the Grantee shall be entitled to no compensation.The Grantee shall reimburse the Authority for all grant funds expended under this Agreement by the Grantee or on the Grantee's behalf including interest accrued from the date of disbursement.The Grantee shall also reimburse the Authority for any costs incurred to collect funds subject to reimbursement,and for any damages incurred by the Authority as a result of the Grantee's failure to perform or provision of incorrect or misleading information.The Authority may require the Grantee to return to the Authority some or all of the project assets if this Agreement is terminated for cause. e)If this Agreement is terminated at the sole request of the Authority for the sole reason of its convenience,the Grantee is not required to reimburse the Authority for funds expended prior to the date of termination.If the Grantee has incurred costs under this agreement,the Grantee shall only be reimbursed by the Authority for eligible costs the Grantee incurred prior to the date of termination of the Agreement. However,prior to making any claim or demand for such reimbursement,the Grantee shall use its best effort to reduce the amount of such reimbursement through any means legally available to it.The Authority's reimbursement to the Grantee shall be limited to the encumbered,unexpended amount of funds available under this Agreement. Section 5.Sovereign Immunity. By execution of this grant agreement,the Grantee irrevocably waives any sovereign immunity which it may possess,and consents to suit against itself or its officials,under the laws of the State of Alaska,in the courts of the State of Alaska as to all causes of action by the Authority arising out of or in connection with this agreement.If the Grantee is an entity which possesses sovereign immunity,it shall provide the Authority with a resolution of the Grantee's governing body waiving sovereign immunity,and such resolution shall be incorporated into this agreement as an Appendix. AEA:Rev.11/03 H:Mjudd/Grants/2003/2003Q4/Koyukuk -2195194.doc Koyukuk Bulk Fuel Upgrade Project Grant Agreement Number 2195194 Page 10 of 18 Section 6.Binding Effect. This Agreement and all of its terms,covenants,conditions and appendices represent the entire Agreement of the parties and shall extend to and be binding upon the respective heirs,executors,administrators,grantees,successors and assigns of the parties to this Agreement. Section 7.No Assignment or Delegation. Unless otherwise allowed by this Agreement or in writing by the Authority,any assignment by the Grantee of its interest in any part of this Agreement or any delegation of its duties under this Agreement without such approval shall be void. Section 8.Grantee Shall Not Act as an Agent of the Authority. The Grantee,its officers,agents,servants and employees shall act in an independent capacity and not as agents of the Authority in the performance of this Agreement. Section 9.Rights of Other Parties. The parties agree that the Denali Commission and any successor is a third party beneficiary of the Grantees obligations in Art.B Sec.8 (Grantee Responsibilities after Project Completion),Art.C Sec.1 (Inspection and Retention of Records),Art.C Sec.10 (Compliance with Applicable Law and Funding Source Mechanisms),and Art.C Sec.13 (Declaration of Public Benefit);otherwise,no person is a third party beneficiary of this Agreement and this Agreement creates no third party rights.Specifically,any person who is not a party to this Agreement shall be precluded from bringing any action asserting the liability of a party or asserting any right against a party to this Agreement, through the terms of this Agreement.No person,other than a party to this Agreement, may bring any action based upon this Agreement for personal injuries,property damages,or otherwise. Section 10.Compliance with Applicable Law and Funding Source Requirements. The Grantee shall comply with all applicable local,state and federal statutes, regulations,ordinances and codes,whether or not specifically mentioned herein including,but not limited to:the Americans with Disabilities Act (ADA)of 1990;Equal Employment Opportunity Executive Orders;Copeland Anti-Kickback Act;Davis-Bacon Act;Contract Work Hours and Safety Standards Act;Clean Air and Clean Water Act; and 15 C.F.R.Part 24.The Grantee agrees to comply with all applicable grant terms and conditions imposed by the Denali Commission and any other funding sources, including Denali Commission policies on sustainability,private enterprise,project prioritization,pipelines and dispensers,project design capacity,and construction containment,and the other applicable terms and conditions in Denali Commission Financial Assistance Award Number 0048-DC-2002-I1. AEA:Rev.11/03 H:Mjudd/Grants/2003/2003Q4/Koyukuk -2195194.doc Koyukuk Bulk Fuel Upgrade Project Grant Agreement Number 2195194 Page 11 of 18 Section 11.Audit Requirements. The Grantee agrees that it will be bound by any audit requirements that may apply to this agreement including 2 AAC 45.010 commonly referred to as the "Single Audit Regulation”and any applicable federal audit requirements.The Grantee acknowledges that it is responsible for compliance with federal and state single audit requirements and all other applicable audit requirements,and agrees to obtain all required audits. Section 12.Severability. If any section,paragraph,clause or provision of this Agreement or any agreement referred to in this Agreement shall be finally adjudicated by a court of competent jurisdiction to be invalid or unenforceable,the remainder of this Agreement shall be unaffected by such adjudication and all the remaining provisions of this Agreement shall remain in full force and effect as if such section,paragraph,clause or provision or any part thereof so adjudicated to be invalid had not been included herein. Section 13.Declaration of Public Benefit. The parties acknowledge and agree that the Project shall be constructed,owned and operated for the benefit of the general public and will not deny any person use and/or benefit of Project facilities due to race,religion,color,sex,marital status,age or national origin. Section 14.Nonwaiver. The failure of either party at any time to enforce a provision of this Agreement shall in no way constitute a waiver of the provision,nor in any way affect the validity of this Agreement,or any part hereof,or the right of such party thereafter to enforce each and every provision hereof. Section 15.Amendment. This Agreement may only be modified or amended in writing,executed by the authorized representatives of the parties with the same formality as this Agreement was executed.For the purpose of any amendment,modification or change to the terms and conditions of this Agreement,the authorized representatives are the Executive Director of the Authority or designee,and the Mayor of the Grantee or written designee of record. Section 16.Integration. This instrument and all appendices,amendments,and attachments hereto embody the entire Agreement of the parties concerning the grant funds granted hereunder.There are no promises,terms,conditions,or obligations regarding said funds other than those contained in the documents described above;and such documents shall supersede all AEA:Rev.11/03 H:Mjudd/Grants/2003/2003Q4/Koyukuk -2195194.doc Koyukuk Bulk Fuel Upgrade Project Grant Agreement Number 2195194 Page 12 of 18 previous communications,representations or agreements,either oral or written, between the parties hereto. Section 17.Applicable Law. This Agreement is to be construed according to the laws of the State of Alaska.Any civil action arising from this Agreement shall be brought in the Superior Court for the Third Judicial District of the State of Alaska at Anchorage. Section 18.Notices. Any notice required of either party shall be in writing and,unless proof of receipt of such notice is expressly required by another term of this Agreement,shall be deemed served when deposited in the mail in a sealed envelope,with sufficient first class postage affixed,and addressed to the appropriate party.The notices shall be sent to each party's place of business,which in the case of the Authority shall be: Deputy Director,Rural Energy Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage,Alaska 99503 Phone 907-269-3000 Fax 907-269-3044 and in the case of the Grantee shall be: Jason Malemute,Mayor City of Koyukuk P.O.Box 49 Koyukuk,Alaska 99754 Phone 907-927-2215 Fax 907-927-2215 AEA:Rev.11/03 H:Mjudd/Grants/2003/2003Q4/Koyukuk -2195194.doc Koyukuk Bulk Fuel Upgrade Project Grant Agreement Number 2195194 Page 13 of 18 Appendix 1 NOTICE OF PROJECT COMPLETION ALASKA ENERGY AUTHORITY Date: Project Name Koyukuk Bulk Fuel Upgrade Project Contracting Party City of Koyukuk Authority Contract No.2195194 Agreement Execution Date The ALASKA ENERGY AUTHORITY certifies and acknowledges that the Project referenced above has been completed,and that all tasks have been satisfactorily carried out in accordance with the terms and conditions of Agreement No.2195194. Project Manager Date Alaska Energy Authority AEA:Rev.11/03 H:Mjudd/Grants/2003/2003Q4/Koyukuk -2195194.doc Koyukuk Bulk Fuel Upgrade Project Grant Agreement Number 2195194 Page 14 of 18 The City of Koyukuk certifies that the Project named above is complete in accordance with the terms and conditions of Authority Agreement No.2195194. The City of Koyukuk acknowledges and certifies that all expenses incurred by the City under the Agreement have been paid in full.The City further acknowledges that it can make no further claims for reimbursement. Authorized Signature (Title) (Name Printed)Date AEA:Rev.11/03 H:Mjudd/Grants/2003/2003Q4/Koyukuk 2195194.doc Koyukuk Bulk Fuel Upgrade Project Grant Agreement Number 2195194 Page 15 of 18 Appendix 2 FUNDING SOURCES AND TOTAL GRANT BUDGET Project Code 340190 $1,700,000.00 Total AEA Grant $1,700,000.00 Total Project Budget $1,700,000.00 Anticipated Funding Allocation: Denali Commission:$1,700,000.00 AEA:Rev.11/03 H:Mjudd/Grants/2003/200304/Koyukuk -2195194.doc Koyukuk Bulk Fuel Upgrade Project Grant Agreement Number 2195194 Page 16 of 18 Appendix 3 GRANTEE IN KIND CONTRIBUTIONS TO THE PROJECT The Grantee will provide,at no cost to the project the following: Use of City owned heavy equipment. AEA:Rev.11/03 H:Mjudd/Grants/2003/2003Q4/Koyukuk -2195194.doc Koyukuk Bulk Fuel Upgrade Project Grant Agreement Number 2195194 Page 17 of 18 Appendix 4 EMPLOYER IDENTIFICATION NUMBER APPLICATION AEA:Rev.11/03 H:Mjudd/Grants/2003/2003Q4/Koyukuk -2195194.doc com SOA Application for Employer Identification Number on(For useby employers,corporations,partnerships,trusts,estates,cchurches,(Rev.Decernber 2001)govemment agencies;Indian tribal entities,certain individuals,and others.)OMB No.1545-0003ireerralnevorunSenven»See separate instructions for each line.>Keep a copy for your records. 1 Leqal name of entity {or individual)for whom the EINis being requested|City of Koyukuk - : 2 2 Trade nee of business (it ditterent uum ame on Ene 1)3 Executor,tustee,"care of”name 2 ®:Richards,Johnson &Granberry P.-C. GO]4a Mailing address (room,apt,suite no.and street,or P.O.box)|5a Street address (if different)(Do not enter a P.O.box,)=1100 West Barnette Street,Suite 102 o.|4b Cry,state,and ZIP code Sb City,state,and ZIP code S|__Fairbanks,Alaska 99701 4 6 County and state where principal business is located >--=Ja Name of principd officer,general partner,grantor,owner,or trustor |7b SSN,ITIN,or EIN 8a Type of entity (check only one box}.C)Estate (SSN of decedent)a > DD Sote proprietor (SSN):1 Plan administrator (SSN)iD)Pannership 1 Tnist (SSN of grantor)ene O Corporation (enter form numbeto be filed)>0 National Guard DD Statefocal government -©Personal service corp.CO Farmers'cooperative ([]Federal governmentinilitay TI Chureh or church-controlled organization OO remic 03 indan vba goverrments/enterpises(J Other nonprofit organization (specify)>Group Exemption Number (GEN)>A Other (specify)»Rural Energy Construction Grant8b'if a corporation,name the state or foreign country |State .Foreign country (ff applicable)where incorporated ° 9 Reason for applying (check only one box)(1)Banking purpise (specify purpose)>(J Started new business (specify type)>___sO)Changed type of organization (specify new type)> C)Purchased going businessODHiredemployees(Check the box and see fine 12.)(J Created a trust (specify type}>4}Compliance with IRS withholding regulations .C0 Createda pension plan (specify type)>()Other (specify)>. 10 Date business started or acquired (month,day,year)-11 Closing month of accounting year, 12 'First date wages or annuities were paid or will be paid (month,day,year).Note:if applicant is a withholding agent,enter date income willfirstbepaidtononresidentalien.(month,day,year).2.2 6 6 6 ee ek a13Highestnumberofemployeesexpectedinthenext12months.Note:if the applicant does not |Agricultural |-Household Other expect to have any employees during the period,enter *-O0-.”eee ee ee : 14 Check one box that best describes the principalactivity of your business O Health care &socialassstaice oO Whobsde-agatrcker(4 Consncton C]Rentd &leasing [1]Transpotatbn&warchousng []Acconmocatin &foodsenice []Wndesle-oha ()RetaiCJReatestte[]Manufacturing (Frrarcesiinsuarce (0 othe (speafy 15 Indicate principal line of merchandise sold;specific construction work done;products produced;or services provided.Bulk Fuel Tank Farm 16a Has the applicant ever applied for an employer identification number for this or any other business?Note:/f "Yes,”please complete lines 16b and 16c.. ....OD Yes W\No 16b If you checked "Yes”on line 16a,give applicant's legal narne and trade name shown on prior application if different from fine 1 or 2 above.Legal name >-Trade name > 16c Approximate date when,and city and state where,the application was filed.Enter previous empioyer identification number if known.Approximate date when filed (mo.,day,year)"City and statefe where filed Previous EIN Complete this section aly F you wart to auberize the named individualtoreceivetheentity's EIN and answer questions Shout the completion of tis form.Third Designee'sname .Desigre'stelephorenunbe(rouch ares cock}Party Stefani Dalrymple/Richards,Johnson &Granberry CPA P.C.(907 )452-4156 Designee |Address and ZIP code Designee's fax number finde area Code)1100 West Barnette St.,Ste.102,Fairbanks,AK 99701 (907 )456-2290Underpenaltiesofperjury,|declare that |have exatinedthis appltation.and to the best of my knowledgeand belie,is rue,cored,and comple.WLYYYYYY/YY/Y/Y» . . .Apprart'stdeptone mums (induce aren codNameandtitle(type or print clearty)>-Tecen Aoleun te c Layer ;(_) Applicaw's fax number {induce area code) Signanwe >«LLC...st pate &"3 /,/"OF ()For Privacy"ActAct and Paperwork Reduction Act Notice,see separate instructions.Cat.No.16055N Form SS-4 (Rev.12-2001) Pace 2FormSS-4 (Rev.12-2001) Do I Need an EIN? File Form SS-4 if the applicant entity does not already have an EIN but is required to show an EIN on anyreturn,statement,or other document See also the separate instructions for each line on Form SS-4. IF the applicant...AND...THEN... Started a new business Does not currently have (nor expect to have) employees Complete lines 1,2,4a-6,8a,and 9-16c._ Hired (or will hire) employees,including household employees Does not already have an EIN Complete lines 1,2,4a-6,7a-b (f applicable),8a,8b (if applicable),and 9-16c. Opened a bank account Needs an EIN for banking purposes only Complete lines 1-5b,7a-b (ff applicable),Ba, 9,and 16a-c. 'Changed type of Elther the legal character of the organization Complete lines 1-16c (as applicable).-organization or its ownership changed (e.g.,you . .incorporate a sole proprietorship or form apartnership)" Purchased a going Does not already have an EIN Complete lines 1-16c {as applicable).business*.. Created a trust The trust ts other than a grantortrustoranIRAtust*. Complete lines 1-16c {as applicable).© Created a pension plan astor®a plan administra Needs an EIN for reporting purposes _Complete lines 1,2,4a-6,8a,9,and 16a-c. ls a foreign person needinganEINtocomplywithIRS_withholding regulations Needs an EIN to complete a Form W-8 (other than Form W-8EC)),avoid withholding onportfofioassets,or claim tax treaty benefits® Complete lines 1-5b,7a-b (SSN or ITIN : optional),82-9,and 16a-c. .'s administering an estate Needs an EIN to report estate Income onForm1041mo Complete Tines 1,3,4a-b,8a,9,and 16a-c. Is a withholding agent fortaxesonnon-wage incomepaidtoanalien(.e., individual,corporation,or partnership,etc.) Is an agent,broker,fiduciary,manager,tenant, or spouse who is required to file Form 1042, Annual Withholding Tax Return for U.S.Source Income of Foreign Persons Complete lines 1,2,3 (if applicable),4a-5b, Ja b (if applicable),8a,9,and 16a-c.. Py Is a state or local agency Serves as a tax reporting agent for publicassistancerecipientsunderRev.Proc.80-4,1980-1 €.B.581' Complete lines 1,2,4a 5b,8a,9,and 16a-c. Is a single-member LLC . Needs an EIN to fle Form 8832,ClassificationElection,for filing employment tax returns,or forciaterevertingented Complete lines 1-16c {as applicable). Is an S corporation Needs an EIN to file Form 2553,Election by aSmailBusinessCorporation®Complete fines 1-16c {as applicable). ”For example,a sole proprietorshiporself-emoffirearmsretugns,must have an EIN.Aetc),or farmers'cooperative must use an EIN for ployed farmer who establishes a qualified retirement pian,or is required to file excise,employment,alcohol,tobacco,sp,corporation,REMIC (real estate mortgage investment conduit),nonprofit organization.(church,club,any tax-related purpose even if the entity does not have employees..*However,do not apply for a new EIN if the existing entity only (2)changed its business name,(b)elected on Form 8832 to change the way i is taxed (or iscoveredbythedefaultmutes},or (c}terminated ks parmership status because at least 50%of the total interests in parmership capita!and were sold orexchangedwithina12-month period.(The EIN of the terminated partnership should continuetobeused.See Reguiations section 301.6109-1(d\(2)(H))>Do not use the EIN of the prior business unless you became the "owner”of a corporation by acquiring Its stock.° *However,IRA trusts that are required to file Form 990-T,Exempt Organization Business income Tax Return,must have an EIN.*A plan administrator is the persoti or group of persons specified as the administrator by the instrument under which the plan is operated.*Entities applying to be a Qualified intermediary (Q)need a QI-EIN evén if they already have an EIN,See Rev.Proc.2000-12..7 See also Household employer on page 4.(Note:State or local agencies may need an EIN for other reasons,e.g.,hired employees)*Most LLCs do not need to file Form 8832.See Limited liability company (LLC)on page 4 for details on completing Form SS-4 for an LLC.7 An existing corporation that is electing or revoking S corporation status should use its previously-assigned EIN. @ Koyukuk Bulk Fuel Upgrade Project Grant Agreement Number 2195194 Page 18 of 18 Appendix 5 EIN POWER OF ATTORNEY AEA:Rev.11/03 H:Mjudd/Grants/2003/2003Q4/Koyukuk -2195194.doc rom 2048 Power of Attorney Oui No 2545.180 -=°'oT(Rev.Jaruzaty 2002)and Declaration of Representative ved by.aerial Roveme Servos,i >See the separate instructions. :Name :TelephoneE24)Power of Attorney (Type or print.)Funct 1 Taxpayer information.Taxpayer(s)must sign and date this form on page 2,line 9.Date /:/Taxpayer name(s)and address Social security number(s)Employer identification.::umberCityofKoyukuki:sian P.O.Box 49 .: 5 ae - Koyukuk,AK 99754 Daytime telephone number |Pian number (if applicable)_ () hereby appoint(s)the following representative(s)as attorney(s)-in-fact 2___Representative(s)must sign and date this form on page 2,Part il.: Name and address CAF No....--.-.----8005-72238R Arlene Koenig Telephone No.........907/452-41561100WestBarnetteSt,Ste.102 --Fax No._...2:..-.--9O7/4523156Fairbanks,Alaska 99704 Check if new:Address []Telephone No.[) Name and address CAF No._.8006-01437R a Debra Gross Telephone No..........907/432-41561100WestBarnetteSt.,Ste.102 Fax No,............9O7/452:3156 oo.Fairbanks,Alaska 997014 Check if new:Address []Telephone No.[] Name and address.CAF No...._.._a Stefani Dalrymple Telephone No._.......907/452-41561100WestBarnetteSt,Ste.102 Fax No.....'907/452-3156,. Fairbanks,Alaska 99701 Check if new:Address [) to represent the taxpayer(s)before the Internal Revenue Service for the following tax matters: 3.Tax matters Telephone No.1 Type of Tax (income,Employment,Excise,etc.)__or Civil Penalty (See the instructions for line 3) Tax Form Number (1040,941,720,etc.) Year(s)or Period(s) Application for Employer Identification Number Ss-4 2002,2003 ,2004,2005,2006 Employer's Quarterly Federal Tax Retum 941 2002,2003,2004,2005,2006 Employer's Annual Federal Unemployment Tax 940 2002,2003,2004,2005,2006 4 on CAF,check this box.Seé the instructions for Line 4.Specific uses not recorded on CAF.. Specific use not recorded on Centralized Authorization File (CAF).if the power of attorney is for a specific use not recorded.-O 5 Acts authorized.The representatives are authorized to receive and inspect confidential tax information and to perform anyandallactsthat|(we)can perform with respect to the tax matters described on line 3,for example,the authority to sign anyagreements,Consents,or other documents.The authority does notinclude the power to receive refund checks (see line 6below},the power to substitute another representative,the authority to execute a request for a tax retum,or a Consent todisclosetaxinformationunlessspecificallyaddedbelow,or the power to sign certain returns.See the instructions for Line5.Acts authorized. List any specific additions or deletions to the acts otherwise authorized in this power of attorney:............---nesecenece ences, Note:In general,an unénrolled preparer of tax returns cannot sign any document for a taxpayer.See Revenue Procedure 81-38,printed as Pub,470,for more infor mation.. Note:The tax matters partner of a partnership is not permitted to authorize representatives to perform certain acts.See the separateinstructionsformoreinformation. 2 6 Receipt of refund checks.If you want to authorize a representative named on line 2 to receive,BUT NOT TO ENDORSE OR CASH,refund checks,initial here Name of representative to receive refund check(s)> and fist the name of that representative below. For Paperwork Reduction aid Privacy Act Notice,see the separate instructions.Cat.No.11980)Forn 2848 (Rev.1-2002). Form 2848 (Rev.1-2002);Page 2 7 Notices and communications.Original notices and other written communications will be sent to you and a copy to the"first representativefisted on line 2 unless you check one or more of the boxes below. a ff you want the first representative listed on line 2 to teceive the original,and yourself a copy,of such notices or ypcommunications,check this box er oarsbIfyoualsowantthesecondrepresentativelistedtoreceivea4copyofsuchnoticesandcommunications,check this box.>-Oc_If you do not want any notices or communications sent to your representative(s),check this box...+ss .>-O8Retention/revocation of prior power(s)of attorney.The filing of this power of attorney automatically revokes all earlierpower(s)of attorney on file with the Internal Revenue Service for the same tax matters and years or periods covered y qthisdocument.If you do not want to revoke a prior power of attorney,check here,...coe eeeYOUMUSTATTACHACOPYOFANYPOWEROFATTORNEYYOUWANTTOREMAININEFFECT. 9 Signature of taxpayer(s).If a tax matter concerns a joint return,both husband and wife must sign if joint representation isrequested,otherwise,see the instructions.If signed by a corporate officer,partner,guardian,tax matters partner,executor,receiver,administrator,or trustee on behalf of the taxpayer,|certify that |have the authority to execute this form on behalf of the taxpayer.>IF NOT SIGNED AND DATED,THIS POWER OF ATTORNEY WILL BE RETURNED. Date Title (ifOF applicable) Print Name Signature .Date Title (f applicable) Print Name Part I]Declaration of RepresentativeCaution:Students with a special order to represent taxpayers in Qualified Low IncomeTaxpayer Clinics or the Student Tax ClinicProgram,see the separate instructions for Part Il. Under penalties of perjury,|declare that: ©|am not currently under suspension or disbarment from practice before the Internal Revenue Service; e |am aware of regulations contained in Treasury Department Circular No.230 (31 CFR,Part 10),as amended,concerning the practice of attorneys,certified public accountants,enrolled agents,enrolled actuaries,and others; e |am authorized to represent the taxpayer(s)identifiedin Part |for the tax matter(s)specified there;and©1am one of the following:: a Attorney-a memberin good standing of the bar of the highest court of the jurisdiction shown below. Certified Public Accountant-duly qualified to practice as a certified public accountant in the jurisdiction shown below.Enrolled Agent-enroilled as an agent under the requirements of Treasury Department Circular No.230. Officer-a bona fide officer of the taxpayer's organization. Full-Time Employee-a full-time employee of the taxpayer.Family Member--a_member of the taxpayer's immediate family(1.e.,spouse,parent,child,brother,or sister). Enrolled Actuary-enrolied as an actuary by the Joint Board for the Enrollment of Actuaries under 29 U.S.C.1242 (the authority to practice before the Serviceis limited by section 10.3(d)(1)of Treasury Department Circular No.230).h Unerrolled Return Preparer-an unenrolled return preparer under section 10.7(c)(1}wiil)of Treasury Department Circular No.230.>IF THIS DECLARATION OF REPRESENTATIVE IS NOT SIGNED AND DATED,THE POWER OF ATTORNEY WILL BE RETURNED.agQqwroansrDesignation-insert |Jurisdiction (state)or Signature Dateaboveletter(ah)Enrollment Card No. b Alaska b ”Alaska h Alaska Form 2848 (Rev.1-2002) GRANT AGREEMENT -POWERHOUSE UPGRADE PROJECT State of Alaska = Alaska Energy Authority qx ENERGY AUTHORITY Grant Agreement Grant Agreement Number Amount of Funds 2195186 $1,300,000.00 Project Code(s)Encumbrance Number/AR Project Title350185KoyukukPowerhouse Upgrade Grantee Authority Contact Person Name Name City of Koyukuk Lenny Landis Street/PO Box Title P.O.Box 49 Project Manager City/State/Zip Street/PO Box Koyukuk,Alaska 99754 813 W.Northern Lights Blvd Contact Person City/State/Zip Jason Malemute,Mayor Anchorage,AK 99503 Phone Fax Phone Fax 907-927-2215 907-927-2215 907-269-4684 907-269-3044 AGREEMENT The Alaska Energy Authority (hereinafter 'Authority')and the City of Koyukuk (hereinafter 'Grantee')agree as set forth herein. Section I.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 $1,300,000.00,unless the grant amount is amended as provided herein. Section Il.The Grantee shall apply the grant funds to the construction of the Project and perform all of the work and other obligations required by this Agreement. Section Ill.Performance under this agreement begins upon signature by the Authority's Executive Director and shall be completed no later than June 30,2005. Section IV.The agreement consists of this page and the following: ATTACHMENTS APPENDICES Article A:Definitions Appendix 1:Notice of Project Completion Article B:Special Provisions Appendix 2:Funding Sources Article C:General Provisions Appendix 3:In-Kind ContributionsAppendix4:|Employer Identification Number App AMENDMENTS:Any fully executed amendments Appendix 5:-EIN Power of Attorney to this Agreement Grantee Authority Af Signature a)hi Printed Name and Title Printed Name and Title Jason Malemute,Mayor Ronajd W.Miller,Executive Director Date Date Ly YS-//-o4 fH e Koyukuk Powerhouse Upgrade Project Grant Agreement Number 2195186 Page 2 of 18 ARTICLE A.DEFINITIONS In this Grant Agreement: a)"Authority”means the Alaska Energy Authority,a public corporation of the State of Alaska.The Authority is herein charged with the role and responsibility as both the Grantor and as an agent of the Grantee. b)"Denali Commission”means the federal-state commission established under 42 USC 3121 and its successors or assigns. c)"Executive Director'means the Executive Director of the Authority or authorized designee. d)"Grantee”means the City of Koyukuk. e)"Grantor”means the Alaska Energy Authority. f)"Project”means the Koyukuk Powerhouse Upgrade Project. g)"Procurement Manager”means the employee of the Authority who determines disputes as provided in Article C.Section 3. h)"State”means the State of Alaska. i)"Project Manager”means the employee of the Authority in charge of the Project. j)"Design Documents”are the technical documents and drawings specifying how the Project is constructed. k)"Construction Manager'means the on-site supervisor of the Project as assigned by the Authority.The Construction Manager may or may not be an employee of the Authority. |)"Project Completion”means the Project is complete,the work is complete, and all Project costs have been billed and paid as determined by the Authority. m)"Grants Manager'means the employee of the Authority in charge of managing the Grant. AEA:Rev.7/03 H:Mjudd/Grants/2003/2003Q3/Koyukuk -2195186.doc Koyukuk Powerhouse Upgrade Project Grant Agreement Number 2195186 Page 3 of 18 ARTICLE B.SPECIAL PROVISIONS Subject to appropriation and availability of funds,the Authority agrees to grant to the Grantee the amounts stated herein,and the Grantee agrees to expend grant funds only for eligible costs to perform the Scope of Work as attached and stated herein. Section 1.Description of Project and Scope of Work. This grant provides funding to be used for the design and construction of a new code compliant powerhouse in Koyukuk,Alaska,as described more fully in the conceptual design report dated March 25,2003,and detailed design documents and specifications to be prepared by the Authority. Section 2.Project Funding Sources. This Grant is subject to appropriation and availability of funds from the sources of funding shown in Appendix 2.The Authority may redesignate the sources of the grant funding and/or adjust the project budget shown in Appendix 2,and will provide an updated Appendix 2 to the Grantee upon the Grantee's request. If the Project costs exceed the Grant funds and if additional funds are available to perform the work described in this Agreement,the Authority may grant additional funds to the Grantee to perform this work by issuing and providing to the Grantee an amended Appendix 2 showing the amended Grant amount.Grantee acknowledges that such a grant of additional funds will be pursuant to the terms and conditions of this Agreement, and acknowledges that by accepting the grant funds and the grant-funded Project work it is accepting them subject to the terms and conditions of this Agreement. Section 3.Grant Disbursements. a)The Authority will disburse grant funds as eligible costs are incurred. b)The Authority may engage an accounting firm (Trustee)to provide Project related services.If engaged,the Trustee may receive and disburse a portion of Grant funds to cover various project costs which may include payroll and related obligations, including taxes and workers compensation insurance,and other selected project costs as the Authority directs.If engaged,the Trustee may be used to prepare quarterly and annual payroll tax reports for the IRS and the State of Alaska, Department of Labor,as applicable,and W-2 Forms for the Project employees.If engaged,the Trustee will submit such reports and pertinent checks to the appropriate federal and state offices. if the Authority retains the services of the Trustee,the Authority will be the liaison between the Grantee and the Trustee.The Authority will follow the procurement regulations specified by the funding sources. AEA:Rev.7/03 H:Mjudd/Grants/2003/2003Q3/Koyukuk -2195186.doc Koyukuk Powerhouse Upgrade Project Grant Agreement Number 2195186 Page 4 of 18 c)The Authority,as agent for the Grantee,will account for and disburse selected Grant funds for any Project costs not covered under (b)of this section in accordance with the funding sources referenced in Appendix 2.The Authority as agent for the Grantee will disburse Grant funds as required by the funding sources. d)Upon Project Completion: 1.any Grant funds not expended under this agreement and any interest accruing on the grant funds belong to the Authority and shall be returned to the Authority; 2.the Authority may apply to other projects any other grant monies authorized for the Project but not expended or obligated under this agreement. Section 4.Eligible Costs Under This Grant. a)The Authority,as Grantor,shall have sole discretion to determine which project costs are eligible to be paid for from Grant monies under this agreement.No work shall be performed or initiated without the prior approval from the Authority.Upon approval by the Authority,the following necessary reasonable,actual expensesassociatedwiththedesignandconstructionoftheProjectareeligibleforpaymentorreimbursementfromgrantfunds: 1.Payroll Costs.Payroll costs are comprised of wages paid to Grantee personnelfortimeworkeddirectlyontheProject,plus payroll taxes and insurance,as wellasvacation,holiday,sick leave and retirement benefits,if any. 2.Direct Non-Salary Costs.These costs must be directly attributable to the Project and shall include the following: i.The costs associated with consultants,inspectors,surveyors,contractors,subcontractors,and other services required to design and construct the Project. ii.The cost of materials,supplies and freight purchased by,or on behalf of,theGranteeandusedintheconstructionoftheProject. iii.The Grantee's costs of reproducing plans,specifications,maps,reports,and other documents. iv.The cost of long distance communication and other utilities needed for construction. v.Purchase or rental of small equipment or tools needed in the construction of the Project. vi.Insurance covering the Grantee and the Authority. 3.The Authority may pay for costs not specifically listed in this section from Grantmonies,if in the determination of the Authority the costs are necessary. AEA:Rev.7/03 H:Mjudd/Grants/2003/2003Q3/Koyukuk 2195186.doc Koyukuk Powerhouse Upgrade Project Grant Agreement Number 2195186 Page 5 of 18 b)Costs not in listed in subsection a)of this section or not deemed eligible by theAuthorityundera),3)of this section are not eligible to be paid for from moneygrantedunderthisagreement. Section 5.Authority as Grantee's Agent. a)The Authority will serve as the Grantee's agent for the design and construction management of the Project,including,but not limited to,where applicable,issuing Invitations to Bid and selecting contractors.The Authority will be responsible for all matters related to the Project design and construction,including,but not limited to: approval of plans and specifications;choices of scheduling,manpower,and methods;procedures for administering the Project;procurement of materials; insurance during construction;disposition of surplus equipment;payment of all Project billings;complying with all federal reporting requirements (except as provided in Article C section 12 or elsewhere herein);performance of final project inspection;and issuance of a Notice of Project Completion.Permitting and other items specified herein are the responsibility of the Grantee.The Construction Manager,who serves as an on-site representative of the Authority,has the right to hire and fire,and establish wage rates and work hours of Project employees. The Authority shall not be responsible for environmental investigation or remediation of the existing facilities or properties,or for any other environmental matters.In addition,the Authority will not be responsible for the removal and decommission of any existing facilities. If the funding sources for the Project include Indian Community Development Block Grant monies or Community Development Block Grant monies granted to the Grantee,the Authority may enter into a Grant Management Agreement with the Grantee in relation to some or all of those monies.If such agreement is entered into, the Authority may have additional duties as the agent of the Grantee as outlined in those Agreements which will be attached as an appendix hereto. Section 6.Grantee's Responsibilities a)The Grantee is responsible for securing the real property interests necessary for the construction and operation of the Project,through ownership,leasehold,easement, or otherwise.The Grantee also is responsible for obtaining the required permits and approvals.These permits may include,but are not limited to,Corps of Engineers' Wetlands Permit,State Fire Marshal approval,rights-of-way for the pipelines,and site control,including any necessary Coastal Zone Management coordination through the Division of Governmental Coordination (DGC).The Authority will assist the Grantee in obtaining these permits and approvals. The Grantee will assist the Authority in obtaining qualified local labor for the Project and will provide necessary local administration assistance,including recommending qualified local personnel;assisting in obtaining necessary personnel information; AEA:Rev.7/03 H:Mjudd/Grants/2003/2003Q3/Koyukuk 2195186.doc Koyukuk Powerhouse Upgrade Project Grant Agreement Number 2195186 Page 6 of 18 assisting in obtaining housing for nonresident workers;facilitating communications between the Authority,the community and local employees;and serving as a liaison between the Authority and the community. c)The Grantee will provide,as an in-kind contribution,local equipment (excluding operator,fuel and maintenance)and tools as available to support the Project,and the contribution specified in Appendix 3.The Grantee will not be paid for its contributions of the use of equipment,tools,supplies,materials,or its contributions of services except as agreed to in writing by the Authority.The Authority requires in- kind contributions to demonstrate that the grantee and the community are committed to and invested in the proposed project.Typical in-kind contributions include,but are not limited to:land for the tank farm,the use of heavy equipment as available, lodging,etc.The Authority encourages the grantee and the community to support this project with in-kind contributions to the greatest extent possible. d)The Grantee is responsible for reviewing project documents and monitoring the Project work to the extent necessary for the Grantee to determine that the work is proceeding satisfactorily and so that it can perform its responsibilities pertaining to the Project,including its responsibilities to operate and maintain the Project after Project completion.The Grantee will raise with the Authority promptly and prior to Project completion any concerns or issues it may have regarding the Project,and if those concerns or issues are not satisfactorily resolved will promptly give written notice with a detailed description of the concerns or issues to the Authority's contact designated in Article C,section 18. Section 7.Project Completion Notice. The Grantee shall sign the Notice of Project Completion located at Appendix 1 within 15 days after it is delivered by the Authority.Upon receipt of the signed signature page, the Authority will close the Grant.The Grant will automatically be closed if the Grantee fails to return the Notice of Project Completion within 30 days after it is delivered by the Authority. Section 8.Grantee Responsibilities After Project Completion. a)The Grantee will not sell,transfer,encumber,or dispose of any of its interest in the facilities constructed with this grant funding during the economic life of the Project without prior written Authority approval. b)The Grantee agrees that it will complete the Project,and that upon completion of the Project it will be responsible for and will perform those activities and functions necessary for the operation and maintenance of the Project for the public benefit, except for those that are expressly the responsibility of another party under this Grant Agreement or any appendices hereto.These responsibilities may not be altered or transferred without the prior written approval of the Denali Commission. AEA:Rev.7/03 H:Mjudd/Grants/2003/2003Q3/Koyukuk -2195186.doc Koyukuk Powerhouse Upgrade Project Grant Agreement Number 2195186 Page 7 of 18 ARTICLE C.GENERAL PROVISIONS Section 1.Inspection and Retention of Records. The Grantee shall allow the Authority or its designees to examine ail Project related records at any reasonable time for the purpose of copying,audit or inspection.The Grantee shall ensure that the Authority,its contractors and consultants,and any Secondary Operators have reasonable access to Project facilities during construction of the Project,and reasonable access for performance analysis and testing over the life of Project facilities for no cost.The Grantee shall retain all Project related records for four years following the completion date of the Project or until final resolution of any audit, negotiation,claim or other action related to the Project which is started prior to the end of the four year period,whichever is later. Section 2.State and Authority held harmless. As a condition of this Grant,the Grantee agrees to defend,indemnify,and hold harmless the Authority and the State of Alaska,and their agents,servants,contractors, and employees,from and against any and all claims,demands,causes of action, actions,and liabilities arising out of,or in any way connected with this grant or the project for which the grant is made,howsoever caused,except to the extent that such claims,demands,causes of action,actions or liabilities are the proximate result of the sole negligence or willful misconduct of the Authority or the State of Alaska. Section 3.Disputes. a)The parties agree that any dispute arising out of this agreement which cannot be resolved by mutual agreement shall be addressed as set forth in this Section.It is further agreed and understood that compliance with this Section shall be a condition precedent to bringing or filing an action or court proceeding for determination of any dispute.The intent of the dispute process set forth in this Section is to facilitate the timely resolution of disputes arising from or out of this agreement. b)Disputes which cannot be resolved by agreement shall be decided by the Procurement Manager.The decision shall be in writing and be made not more than 60 days after receipt by the Procurement Manager of all appropriate information (as determined by the Procurement Manager)from the Grantee.Failure of the Grantee to furnish appropriate information (as determined by the Procurement Manager)to the Procurement Manager within 21 days of the receipt of the Procurement Manager's request constitutes a waiver of the Grantee's claim. c)The time for issuing the Procurement Manager's decision may be extended for good cause by the Executive Director.The Procurement Manager shall notify the Grantee in writing that the time for the issuance of a decision has been extended and of the date by which a decision shall be issued.The Procurement Manager shall furnish a AEA:Rev.7/03 H:Mjudd/Grants/2003/2003Q3/Koyukuk 2195186.doc Koyukuk Powerhouse Upgrade Project Grant Agreement Number 2195186 Page 8 of 18 f) j) k) copy of the decision to the Grantee by certified mail or other method that provides evidence of receipt.Pending a final decision,the Grantee shall proceed with diligent performance of the agreement in accordance with the Procurement Manager's decision notwithstanding any disagreement with that decision. The Procurement Manager's decision is final unless,within 30 days of receipt of the decision,the Grantee delivers a Notice of Appeal to the office of the Executive Director.The Grantee shall provide a copy of the appeal to the Procurement Manager. The appeal must contain a copy of the decision being appealed and identification of the factual or legal errors in the decision that form the basis for the appeal.General assertions that the Procurement Manager's decision is contrary to law or facts are not sufficient. Except as provided in subsection (g)of this section,a hearing on an appeal to the Executive Director shall be conducted according to the procedures set out in (h)of this article. Within 15 days after receipt of an appeal on a dispute,the Executive Director may adopt the decision of the Procurement Manager as the final decision without a hearing,if the Executive Director determines that there are no material issues of fact. The Executive Director may act as the hearing officer and upon hearing the evidence,render findings of fact and conclusions of law,or the Executive Director may appoint an impartial hearing officer to conduct the hearing. The hearing officer shall arrange for a prompt hearing and notify the parties in writing of the time and place.The hearing will be conducted in an informal manner and will be held in Anchorage,Alaska.Participants outside Anchorage may attend by phone.The hearing officer may conduct the hearing as set forth in AS 36.30.670(b), which is incorporated herein by reference. If the Executive Director is not acting as the hearing officer,the hearing officer shall recommend a decision to the Executive Director based on the evidence presented. The recommendation must include findings of fact and conclusions of law.The Executive Director may _affirm,modify,or reject the hearing officer's recommendations in whole or in part,may remand the matter to the hearing officer with instructions,or take other appropriate action. The Executive Director's decision shall be sent within 20 days after the hearing to all parties by personal service or certified mail.The decision of the Executive Director is final and conclusive unless appealed to superior court,Third Judicial District at Anchorage within 30 days of receipt of the decision.The laws of the state of Alaska govern this agreement. AEA:Rev.7/03 H:Mjudd/Grants/2003/2003Q3/Koyukuk 2195186.doc Koyukuk Powerhouse Upgrade Project Grant Agreement Number 2195186 Page 9 of 18 Section 4.Termination. a) b) The Grantee shall have no rights to compensation or damages for termination except as provided in this Section. In addition to all other rights available under law,the Authority may terminate this Agreement or stop work on the Project for the convenience of the Authority or for cause upon ten (10)days written notice. "Cause"for termination shall exist when the Grantee has failed to perform under this Agreement,has provided incorrect or misleading information or has failed to provide information which would have influenced the Authority's actions.In order for termination to be for cause,the Grantee's failure to perform or the Grantee's provision of incorrect,misleading,or omitted information must be material. If this Agreement is terminated for cause,the Grantee shall be entitled to no compensation.The Grantee shall reimburse the Authority for all grant funds expended under this Agreement by the Grantee or on the Grantee's behalf including interest accrued from the date of disbursement.The Grantee shall also reimburse the Authority for any costs incurred to collect funds subject to reimbursement,and for any damages incurred by the Authority as a result of the Grantee's failure to perform or provision of incorrect or misleading information.The Authority may require the Grantee to return to the Authority some or all of the project assets if this Agreement is terminated for cause. If this Agreement is terminated at the sole request of the Authority for the sole reason of its convenience,the Grantee is not required to reimburse the Authority for funds expended prior to the date of termination.If the Grantee has incurred costs under this agreement,the Grantee shall only be reimbursed by the Authority for eligible costs the Grantee incurred prior to the date of termination of the Agreement. However,prior to making any claim or demand for such reimbursement,the Grantee shall use its best effort to reduce the amount of such reimbursement through any means legally available to it.The Authority's reimbursement to the Grantee shall be limited to the encumbered,unexpended amount of funds available under this Agreement. Section 5.Sovereign Immunity. By execution of this grant agreement,the Grantee irrevocably waives any sovereign immunity which it may possess,and consents to suit against itself or its officials,under the laws of the State of Alaska,in the courts of the State of Alaska as to all causes of action by the Authority arising out of or in connection with this agreement.If the Grantee is an entity which possesses sovereign immunity,it shall provide the Authority with a resolution of the Grantee's governing body waiving sovereign immunity,and such resolution shall be incorporated into this agreement as an Appendix. AEA:Rev.7/03 H:Mjudd/Grants/2003/2003Q3/Koyukuk 2195186.doc Koyukuk Powerhouse Upgrade Project Grant Agreement Number 2195186 Page 10 of 18 Section 6.Binding Effect. This Agreement and all of its terms,covenants,conditions and appendices represent the entire Agreement of the parties and shall extend to and be binding upon the respective heirs,executors,administrators,grantees,successors and assigns of the parties to this Agreement. Section 7.No Assignment or Delegation. Unless otherwise allowed by this Agreement or in writing by the Authority,any assignment by the Grantee of its interest in any part of this Agreement or any delegation of its duties under this Agreement without such approval shall be void. Section 8.Grantee Shall Not Act as an Agent of the Authority. The Grantee,its officers,agents,servants and employees shall act in an independent capacity and not as agents of the Authority in the performance of this Agreement. Section 9.Rights of Other Parties. The parties agree that the Denali Commission and any successor is a third party beneficiary of the Grantees obligations in Art.B Sec.8 (Grantee Responsibilities after Project Completion),Art.C Sec.1 (Inspection and Retention of Records),Art.C Sec.10 (Compliance with Applicable Law and Funding Source Mechanisms),and Art.C Sec.13 (Declaration of Public Benefit);otherwise,no person is a third party beneficiary of this Agreement and this Agreement creates no third party rights.Specifically,any person who is not a party to this Agreement shall be precluded from bringing any action asserting the liability of a party or asserting any right against a party to this Agreement, through the terms of this Agreement.No person,other than a party to this Agreement, may bring any action based upon this Agreement for personal injuries,property damages,or otherwise. Section 10.Compliance with Applicable Law and Funding Source Requirements. The Grantee shall comply with all applicable local,state and federal statutes, regulations,ordinances and codes,whether or not specifically mentioned herein including,but not limited to:the Americans with Disabilities Act (ADA)of 1990;Equal Employment Opportunity Executive Orders;Copeland Anti-Kickback Act;Davis-Bacon Act;Contract Work Hours and Safety Standards Act;Clean Air and Clean Water Act; and 15 C.F.R.Part 24.The Grantee agrees to comply with all applicable grant terms and conditions imposed by the Denali Commission and any other funding sources, including Denali Commission policies on sustainability,private enterprise,project prioritization,pipelines and dispensers,project design capacity,and construction containment,and the other applicable terms and conditions in Denali Commission Financial Assistance Award Number 0048-DC-2002-!1. AEA:Rev.7/03 H:Mjudd/Grants/2003/2003Q3/Koyukuk -2195186.doc Koyukuk Powerhouse Upgrade Project Grant Agreement Number 2195186 Page 11 of 18 Section 11.Audit Requirements. The Grantee agrees that it will be bound by any audit requirements that may apply to this agreement including 2 AAC 45.010 commonly referred to as the "Single Audit Regulation”and any applicable federal audit requirements.The Grantee acknowledges that it is responsible for compliance with federal and state single audit requirements and all other applicable audit requirements,and agrees to obtain all required audits. Section 12.Severability. lf any section,paragraph,clause or provision of this Agreement or any agreement referred to in this Agreement shall be finally adjudicated by a court of competent jurisdiction to be invalid or unenforceable,the remainder of this Agreement shall be unaffected by such adjudication and all the remaining provisions of this Agreement shall remain in full force and effect as if such section,paragraph,clause or provision or any part thereof so adjudicated to be invalid had not been included herein. Section 13.Declaration of Public Benefit. The parties acknowledge and agree that the Project shall be constructed,owned and operated for the benefit of the general public and will not deny any person use and/or benefit of Project facilities due to race,religion,color,sex,marital status,age or national origin. Section 14.Nonwaiver. The failure of either party at any time to enforce a provision of this Agreement shall in no way constitute a waiver of the provision,nor in any way affect the validity of this Agreement,or any part hereof,or the right of such party thereafter to enforce each and every provision hereof. Section 15.Amendment. This Agreement may only be modified or amended in writing,executed by the authorized representatives of the parties with the same formality as this Agreement was executed.For the purpose of any amendment,modification or change to the terms and conditions of this Agreement,the authorized representatives are the Executive Director of the Authority or designee,and the Mayor of the Grantee or written designee of record. Section 16.Integration. This instrument and all appendices,amendments,and attachments hereto embody the entire Agreement of the parties concerning the grant funds granted hereunder.There are no promises,terms,conditions,or obligations regarding said funds other than those AEA:Rev.7/03 H:Mjudd/Grants/2003/2003Q3/Koyukuk +2195186.doc Koyukuk Powerhouse Upgrade Project Grant Agreement Number 2195186 Page 12 of 18 contained in the documents described above;and such documents shall supersede all previous communications,representations or agreements,either oral or written, between the parties hereto. Section 17.Applicable Law. This Agreement is to be construed according to the laws of the State of Alaska.Any civil action arising from this Agreement shall be brought in the Superior Court for the Third Judicial District of the State of Alaska at Anchorage. Section 18.Notices. Any notice required of either party shall be in writing and,unless proof of receipt of such notice is expressly required by another term of this Agreement,shall be deemed served when deposited in the mail in a sealed envelope,with sufficient first class postage affixed,and addressed to the appropriate party.The notices shall be sent to each party's place of business,which in the case of the Authority shall be: Deputy Director,Rural Energy Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage,Alaska 99503 Phone 907-269-3000 Fax 907-269-3044 and in the case of the Grantee shall be: Jason Malemute,Mayor City of Koyukuk P.O.Box 49 Koyukuk,Alaska 99754 Phone 907-927-2215 Fax 907-927-2215 AEA:Rev.7/03 H:Mjudd/Grants/2003/2003Q3/Koyukuk -2195186.doc Koyukuk Powerhouse Upgrade Project Grant Agreement Number 2195186 Page 13 of 18 Appendix 1 NOTICE OF PROJECT COMPLETION ALASKA ENERGY AUTHORITY Date: Project Name Koyukuk Powerhouse Upgrade Project Contracting Party City of Koyukuk Authority Contract No.2195186 Agreement Execution Date The ALASKA ENERGY AUTHORITY certifies and acknowledges that the Project referenced above has been completed,and that all tasks have been satisfactorily carried out in accordance with the terms and conditions of Agreement No.2195186. Project Manager Date Alaska Energy Authority AEA:Rev.7/03 H:Mjudd/Grants/2003/2003Q3/Koyukuk -2195186.doc Koyukuk Powerhouse Upgrade Project Grant Agreement Number 2195186 Page 14 of 18 The City of Koyukuk certifies that the Project named above is complete in accordance with the terms and conditions of Authority Agreement No.2195186. The City of Koyukuk acknowledges and certifies that all expenses incurred by the City under the Agreement have been paid in full.The City further acknowledges that it can make no further claims for reimbursement. Authorized Signature (Title) (Name Printed)Date AEA:Rev.7/03 H:Mjudd/Grants/2003/2003Q3/Koyukuk -2195186.doc Koyukuk Powerhouse Upgrade Project Grant Agreement Number 2195186 Page 15 of 18 Appendix 2 FUNDING SOURCES AND TOTAL GRANT BUDGET Project Code 350185 $1,300,000.00 Total AEA Grant $1,300,000.00 Total Project Budget $1,495,000.00 Anticipated Funding Allocation: Denali Commission:$1,495,000.00 AEA:Rev.7/03 H:Mjudd/Grants/2003/2003Q3/Koyukuk -2195186.doc Koyukuk Powerhouse Upgrade Project Grant Agreement Number 2195186 Page 16 of 18 Appendix 3 GRANTEE IN KIND CONTRIBUTIONS TO THE PROJECT The Grantee will provide,at no cost to the project the following: AEA:Rev.7/03 H:Mjudd/Grants/2003/2003Q3/Koyukuk -2195186.doc Koyukuk Powerhouse Upgrade Project Grant Agreement Number 2195186 Page 17 of 18 Appendix 4 EMPLOYER IDENTIFICATION NUMBER APPLICATION AEA:Rev.7/03 H:Mjudd/Grants/2003/2003Q3/Koyukuk -2195186.doc om SS-4 Application for Employer Identification Number Decem €loyers,corporations,partnerships,trusts,estates,churches,|_Neereams)Government auencics,Indiantibal ¢entities,certain individuals,and others)interned Reverie:Sendce >See separate instructions for each ihe.>Keep a copy for your records.OMB No.1545-0003 1 Leqial name of entity (or individual!for whom the EIN is being requested|City.of Koyukuka2Tradenameofbusiness(it diterent sus ameon ine 1)3 Executor,trustee,"care of name ; o ;.Richards,Johnson &Granberry P:C. 'O|4a Mailing address (room,apt.,suite no.and street,or P.O.box)|5a Street address (f different)(Do not enter a P.O.box.)E\|___1100 West Bamette Street,Suite 102 : GJ 4b Cry,state,and ZIP code Sb City,state,and ZIP code6]__Fairbanks,Alaska 99701 oO @|6 County and state where principal business is locatedfiat ee Ja Nameof principd officer,general partner,grantor,owner,or trustor |7b SSN,ITIN,or EIN Ba Type of entity (check only one box).C)Estate (SSN of decedent). OO)Sole proprietor (SSN)::CJ Ptan administrator (SSN) (1D Partnership _2 Tnist (SSN of granton i. O Corporation (enter form numberto be filed)>oO National Guard (1 statefocal goverment -C)Personal service corp.(1 Farmers'cooperative [1].Federal govermmentinilitay 0 Church or church-controlled organization OO remic C1 indan sib goverrments/enterpises1]Other nonprofit organization (specify)>Group Exemption Number (GEN)>V1 Other (specify)>Rural Energy Construction Grant 8b "If a corporation,name the state or foreign country |State(f applicable)where incorporated Foreign country Reason for applying (check only one box) C1]Purchasedgoirigbusiness()Hired employees (Check the box and see line 12)(1 Created a trust (specify type)> (J Banking purpose (specify purpose)>(C1 Started new business (specify type)»_____-__1)Changedtype of organization {specify new type)> 1 Compkance with IRS withholding reguiations -{C]Created a pension pian (specify type)>1 Other (specify)>. . 10 Date businessstartedoracquired {month,day,year)-41 Closing month of accounting year, 12 'First date wages or annuitieswere paid or will be paid (month,day,year).Note:if applicant is 8 withholding agent,enter dateincome willfirstbepaidtononresidentalien.{month,day,year).©6 kw wwe13Highestnumberofemployeesexpectedinthenext12months.Note:I the applicant does not Agricuttural |-Household |Otherexpecttohaveanyemployeesduringtheperiod,enter*-O--"..1.2.6 ee ee . 14 Check one box that best describesthe principalactivity of your business oO Health care &socialasdstaice [_]Whobsde-agettrcker[4 Consneton (]Rentd &lesing [)Tranppotaton&warchasng []Accorinodatin &foodsénice []Whdesale-ohe [)Retal(]Realestate (1 Manufacuing (J Fnarce&inswarce [)othe (specty 15 Indicate principal fine of merchanriise sold;specific construction work done;products produced;or services provided.___Electric Power Upgrade16aHastheapplicanteverappliedforanemployeridentification umber for this or any other business?....(1 Yes No Note:If "Yes,”please complete lines 16b and 16c.: 16b If you checked "Yes”on line 16a,give applicant's \egal name and wade name shown on prior application if different from line 1 or 2 above. Legal name >-Trade name b-16c Approximate date when,and city and state where,the application was filed.Enter previous employer identification number if known. Approximate date when filed (mo.,day,year)"City and state where filed Previous EIN Complete tis section only #you want to authorize the named Fi eta WAR s EN waver ns ha compen aThirdDesignee's name .'Desigpee's tdephore nurbe (induct aren onc) Party Stefani Dalrymple/Richards,Johnson &GranberryCPA P.C.(907 )452-4156 Designee |Address and ZIP code Designes'sfaxnumberGinciuce area Code}1100 West Barnette St,Ste.102,Fairbanks,AK 99701 ;(907 )456-2290 Underpenaltiesofperjury.|dectare that |have examined this application,and to the best of my mowedgeand befief,it is true,correct,and complete.Ys Name and tite type or print cearty *"Jase WMalmute .fUover {_.) .a Applicant'sfaxnurrberinduce area code)Sigrawre_>-Co LL.aloov ws -pated 37//-OY {tf } For Privacy Ret and Paperwork Reduction Act Notice,see separate instructions.Cat.No.16055N Form SS-4 (Rev.12-2001) Page 2FormSS-4 (Rev.12-2001) Do I Need an EIN? File Form SS-4 if the applicant entity does not already have an EIN but is required to show an EIN on anyreturn,Statement,or other document”See also the separate instructions for each line on Form SS-4. IF the applicant...AND...THEN... Started a new business Does not currently have (nor expect to have) employees Complete lines 1,2,4a-6,8a,and 9-16c. Hired (or will hire) employees,including household employees Does not already have an EIN Complete lines 1,2,4a-6,7a-b (if applicable),8a,8b (if applicable),and 9-16c. Opened a bank account Needs an EIN for banking purposes only Complete ines 1-5b,7a-b (if applicable),8a, 9,and 16a-c. 'Changed type oforganization Either the legal character of the organization or its ownership changed (e.g.,you incorporate a sole proprietorship or form apartnership) Complete lines 1-16c (as applicable).- Purchased a goingbusiness*Does not already have an EIN Complete lines 1-16c (as applicable). Created a trust The trust is other than a grantor trust or anIRAtrust : Complete lines 1-716c (as applicable).© Created a pension plan as a plan administra Needs an EIN for reporting purposes -Complete lines 1,2,4a-6,8a,9,and 16a-c. Is a foreign person needing an EIN to comply with IRS_withholding regulations Needs an EIN to complete a Forni W-8 (other than Form W-8EC)),avoid withholding onportfofioassets,or claim tax treaty benefits® Complete lines 1-5b,7a-b (SSN or ITIN - optional),8a-9,and 16a-c. _ls administering an estate Needs an EIN to report estate income o Form 1041 a Complete fines 1,3,4a-b,8a,9,and 16a-c. Is a withholding agent for taxes on non-wage income paid to an alien (i.e., individual,corporation,or partnership,etc.) Is an agent,broker,fiduciary,manager,tenant, or spouse who is required to file Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons Complete fines 1,2,3 (if applicable),4a-5b, 7a-b (if applicable),8a,9,and 16a-c. . Is a state or local agency Serves as a tax reporting agent for public assistance recipients under Rev.Proc.80-4,1980-1 €.B.587' Complete lines 1,2,4a-5b,8a,9,and 16a-c. Is a single-member LLC ¥ Needs an EIN to file Forrm 8832,Classification Election,for filing employment tax returns,or for State reporting purpos Complete lines 1-16c {as applicable). Is an S corporation Needs an EIN to file Form 2553,Election by aSmallBusinessCorporation?Complete lines 1-16c {as applicable). "For example,a sole proprietorship or self-employed farmer who establishes a qualified retirement plan,or is required to file excise,employment,atcohol,tobacco,or firearms returns,must have an EIN.A partnership,corporation,REMIC (real estate mortgage investment conduit),nonprofit organization.(church,club,etc),or farmers'cooperative must use an EIN for any tax-related purpose even if the entity does not have employees..?However,do not apply for a new EIN if the existingentityonly(a)changeditsbusinessname,(b)elected on Form 8832 to change the way &is taxed (or iscoveredbythedefaultrules),or (c)terminated its parmership status because at ledst 50%of the total interests in partnership capital and were sold orexchangedwithina12-month period.(The EIN of the terminated partnership should continue to be used.See Regulations section 301.6109-1(d}(2)(iii)) 7 Do not use the EIN of the prior business unless you became the "owner”of a corporation by acquiring its stock.. *However,IRA trusts that are required to file Form 990-T,Exempt Organization Business Income Tax Return,must have an EIN. *A plan administrator is the person or group of persons specified as the administrator by the instrument under which the pian is operated. *Entities applying to be a Qualified intermediary (Qi)need a QI-EIN even if they already have an EIN,See Rev.Proc.2000-12. ;7 See aiso Household employer on page 4.(Note:State or local agencies may need an EIN for other reasons,e.g.,hired employees.)*Most LLCs do not need to file Form 8832.See Limited liability company (LLC)on page 4 for details on completing Form SS-4 for an LLC.San existing corporation that is electing or revoking S corporation status should use its previously-assigned EIN. @ Koyukuk Powerhouse Upgrade Project Grant Agreement Number 2195186 Page 18 of 18 Appendix 5 EIN POWER OF ATTORNEY AEA:Rev.7/03 H:Mjudd/Grants/2003/2003Q3/Koyukuk -2195186.doc OMB No.1545-0150rom2O4OPowerofAttorney;Oe SS(Rev.January 2002)and Declaration of Representative wed bypatinaRevermeService.”>See the separate instructions. , Name :Telephone[48 Power of Attorney (Type or print.)Function i j i i °/_ef1__'Taxpayer information.Taxpayer(s)must sign and date this form on page 2,line 8.Dae 7Taxpayername(s)and address Social securitynumber(s)Employes identificationCityofKoyukuk::oy P.O.Box 49°.oe a oeKoyukuk,AK 99754 .Daytime telephone number |Plan number (f applicable)_() hereby appoint(s)the following representative(s)as attorney(s)-in-fact 2 ___Representative(s)must sign and date this form on page 2,Part Il.. Name and address CAF No._.Bogs T2z2eR.zs'Arlene Koenig :Telephone No.ge1100WestBarnetteSt.,Ste.102 --Fax No.....907/452:3 ; Fairbanks,Alaska 99701 Check if new:Address 0 Telephone No.O Name and address CAF No...8006-01437R. Debra Gross Telephone No.nnn OT ANS -4100 West Barnette St,Ste.102 Fax No...907/452-Fairbanks,Alaska 99701 Check if new:Address []Telephone No.Oj Name and address._CAF No. Stefani Dalrymple Telephone No.aang MRE AIS1100WestBarnetteSt.,Ste.102 Fax No...._907/452-3 Fairbanks,Alaska 987014 Check if new:Address 19 Telephone No.DC) to represent the taxpayer(s)before the Internal Revenue Service for the following tax matters:. 3.Taxmatters - Type of Tax (income,Employment,Excise,etc.)Tax Form Number Year(s)or_or Civil Penalty (See the instructions for line 3)(1040,941,720,etc.)Period(s) Application for Employer Identification Number SsS4 2002,2003,2004,2005,2006 Employer's Quarterly Federal Tax Retum 941 2002,2003,2004,2005,2006 Ermployer's Annual Federal Unemployment Tax 940 2002,2003,2004,2005,2006 4 Specific use not recorded on Centralized Authorization File (CAF).If the power of attorney is for a specific use not recordedonCAF,check this box.Seé the instructionsfor Line 4.Specific uses not recordedon CAF........>-O 5 Acts authorized.The representatives are autharized to receive and inspect confidential tax information and to perform anyandallactsthat|(we)can perform with respect to the tax matters described on line 3,for example,the authority to sign anyagreements,Consents,of other documents.The authority does not include the power to receive refund checks (see line 6below),the power to substitute another representative,the authority to execute a request for a tax retum,or a consent todisclosetaxinformationunlessspecificallyaddedbelow,or the power to sign certain returns.See the instructions for Line5.Acts authorized.. : List any specific additions or deletions to the acts otherwise authorized in this power of attorney:__.....-..-.---teseeeecenenees,, Note:In general,an unénrolled preparer of tax returns cannot sign any document for a taxpayer.See Revenue Procedure 81-38,printed as Pub.470,for more infor mation. Note:The tax matters partner ofa partnership is not permitted to authorize representatives to perform certain acts.See the separateinstructionsformoreinformation.; 6 Receipt of refund checks.If you want to authorize a representative named on line 2 to receive,BUT NOT TO ENDORSEORCASH,refund checks,initial here and list the name of that representative below. Name of representative to receive refund check(s)>- For Paperwork Reduction aind Privacy Act Notice,see the separate instructions.Cat.No.11980)Fom 2848 (Rev.1-2002). - ;Pace 2Form2848Rev.1-200) 7 Notices and communications.Original notices and other written communications will be sent to you and a copy to the"first representative listed on line 2 unless you check one or more of the boxes below. a if you want the first representative listed on line 2 to receive the original and yourself a copy,of such notices or +ecommunications,check this box ...-cote robIfyoualsowantthesecondrepresentativelistedtoreceiveaacopyofsuchnoticesandcommunications,check this box.c_If you do not want any notices or communications sent to your representatives),check this box...+s OD8Retention/revocation of prior power(s)of attorney.The filing of this power of attorney automatically revokes all earlierpower(s)of attorney on file with the Internal Revenue Service for the same tax matters and years or Periods covered byYOthisdocument.If you do not want to revoke a prior power of attorney,check here,.2 2 6 -ee ceeYOUMUSTATTACHACOPYOFANYPOWEROFATTORNEYYOUWANTTOREMAININEFFECT. 9 Signature of taxpayer(s).If a tax matter concerns a joint retum,both husband and wife must sign if joint representation isrequested,otherwise,see the instructions.if signed by a corporate officer,partner,guardian,tax matters partner,executor,receiver,administrator,or trustee on behalf of the taxpayer,|certify that |have the authority to execute this form on behalf of the taxpayer. >IF NOT SIGNED AND DATED,THIS POWER OF ATTORNEY WILL BE RETURNED. Chem Lelam A...Bellen,largon rareSignatureDatee(if applicable) Print Name Signature : Date Title (if applicable) Print Name Part I Declaration of RepresentativeCaution:Students with a special order to represent taxpayers in Qualified Low incomeTaxpayer Clinics or the Student Tax ClinicProgram,see the separate instructions for Part Il. Under penalties of perjury,|declare that: ©|am not Currently under suspension or disbarment from practice before the Internal Revenue Service; ©|am aware of regulations contained in Treasury Department Circular No.230 (31 CFR,Part 10),as amended,concerningthepracticeofattomeys,certified public accountants,enrofied agents,enrolled actuaries,and others; ©|am authorized to represent the taxpayer(s)identifiedin Part |for the tax matter(s)specified there;and@|am one of the following:Attorney-a memberin good standing of the bar of the highest court of the jurisdiction shown below. Certified Public Accountant-duly qualified to practice as a certified public accountant in the jurisdiction shown below. Enrolled Agent-envrolled as an agent under the requirements of Treasury Department Circular No.230. Officer-a bona fide officer of the taxpayer's organization. Full-Time Employee-a full-time employee of the taxpayer.Family Member-a member of the taxpayer's immediate family (e.,spouse,parent,child,brother,or sister).Enrolled Actuary-enrolled as an actuary by the Joint Board for the Enrolment of Actuaries under 29 U.S.C.1242 (the authority to practice before the Service is limited by section 10.3(d)(1)of Treasury Department Circular No.230).h Unenrolied Return Preparer-an unenrolled retum preparer under section 10.7(c)(1\vil)of Treasury Department Circular No.230.>IF THIS DECLARATION OF REPRESENTATIVE IS NOT SIGNED AND DATED,THE POWER OF ATTORNEY WILL BE RETURNED.aQnaoanomaDesignation-insert |Jurisdiction (state)or Signature Dateaboveletter(a h)Enrollment Card.No. b Alaska b .Alaska h Alaska Form 2848 {Rev.1-2002} 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. City of Koyukuk 1 R&R Fund Account -Sample Documents 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.On 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. City of Koyukuk 2 R&R Fund Account -Sample Documents 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 arising out of the negligence or willful misconduct of bank.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. 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 fs 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 sult,execution,attachment (before or after judgment)or other legal process,depositor irrevocably agrees not to claim,and it hereby waives,such immunity. City of Koyukuk 3 R&R Fund Account -Sample Documents 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: City of Koyukuk 4 R&R Fund Account -Sample Documents Wells Fargo Renewal and Replacement Account Escrow Managed "Regular Savings”Account Agreement ,2003 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 ,2003,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 City of Koyukuk 5 R&R Fund Account -Sample Documents 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 (Owner) Date By: Its: Taxpayer ID # Address: City of Koyukuk 6 R&R Fund Account -Sample Documents National BankYAlaska 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: \hand you herewith the following described item(s): Beginning Balance $P:of$Maturity Date a Monthly o Quarterly a Semi-Annually QO Annually First payment due:Interest start date at Payments made in excess of the regular scheduled amount oO wil Q will not satisfy future payments due. Excess funds oa will a will not be applied to prior interest lation based on Oo 360 days a 365 days. Attached:O Exhibit A Special Payment Provisions QO Exhibit B Multiple Disbursements.O Exhibit C Partial Releases O Exhibit O Reserves Additional Instructions: You are authorized to charge my WF Account #Os for the scheduled escrow payments,Q balloon payments. Payer Signature Remit payments to payee: Address Or Credit Payments to:oO Cashier's Check a E.F.T.(Enclose voided check) o Checking Os Savings:WF Acct.No.{Disbursement fees paid by payee per payment'transaction) Upon execution of this agreament the parties herein agree to pay fees in accordance with the current fee schedule,fees are collected perfalSpaymentitransaction.Set up fee:paid O collect from first payment.Fees Paid by:G Payee GO Payer O sDivide Equally (Fees Subject to Change Without Notice)1 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 pet y,the i )for herein ih to any one of the undersigned Payees for and on behalf of all Payees at any address given below or such otheraddressasanyoneofthePayeesshallinwritinguponPayee's request or at WF's option under the following conditions: At Payee's request when: (a) {b) tegistered or certified mail. At WF's option when: {a) (b) Any payment is delinquent 30 days or more;or Payee fumishes WF evidence that Payer has received at least 20 days'written notice of Payee's intent to terminate,delivered by One payment has been delinquent for three months and WF has provided 10 days'prior notice to Payee and Payer. 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 to each of us.Upon receipt by the Bank of the final payment,the Bank will deem the contract satisfied and the and/or will be Employer 1.0.Number provided below is true,correct and complete,and |am not subject to backup withholding. Date Date PLEASE PRINT NAME SOCIAL SECURITY NO.OR EMPLOYEE 1.0.NO.PLEASE PRINT NAME X PAYEE (SELLER)SIGNATURE ADORESS PLEASE PRINT NAME SOCIAL SECURITY NO.OR EMPLOYEE I.D.NO. X PAYEE (SELLER)SIGNATURE to the Payer.Under penalty of pesjury,|certify that the Social Security or SOCIAL SECURITY NO.OR EMPLOYEE 1.0.NO. X PAYER (BUYER)SIGNATURE ADDRESS PLEASE PRINT NAME SOCIAL SECURITY NO.OR EMPLOYEE 1.0.NO. X PAYER (BUYER)SIGNATURE ADDRESS Received above item(s)subject to conditions herein mentioned. Walls Fargo Bank Alaska. By ADDRESS PLEASE COMPLETE THIS AREA TO INSURE CORRECT ROUTING City of Koyukuk R&R Fund Account -Sample Documents Wational BankYAlaska 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,Alaska$9510-0600 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 shail have no duty or obligation to refuse any payment nor shall it be responsible for determining the sufficiency of any such payment untess otherwise agreed in writing by WF.WF will credit the account for payments as received and will disburse funds the following business day,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 other named Payees in reliance upon Payer's dishonored payment.Upon receipt of such notice,Payee shall promptiy 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 reverse the credit to an account to which it has disbursed funds and/or to deduct from Payee's account the amount of the charge plus the amount of funds it has disbursed in reliance upon said dishonored payment.If two (2)checks are dishonored during any calendar year for any reason,WF may without notice terminate this account,cancel this Agreement and return the documents to Payee. 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,to principal.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. tf 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 of the agreements between,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 be deducted from the proceeds of the final payment.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 arbitrator for determination,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 of the Third Judicial District,Anchorage,Alaska,and upon so doing to be absolved from ail further obligations or liability hereunder.Payee and Payer jointly and severally agree to pay to WF all costs and expenses incurred by WF,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 upon WF'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;(9)To determine the sufficiency or verification of the account balances on any other previously or subsequently-recorded encumbrance or security interest against the property,inctuding 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; (h)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; )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,shall 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.NotwithstandinganyotherprovisionofthisAgreement,WF will 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 WFaccountofanypartyheretotosecurepaymentofallcosts,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 financingsecuredbytheproperty,WF is authorized to furnish to the lender,closing agent,or any other interested party,any information conceming 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'priorwrittennoticetoPayerandPayee.Upon such transfer,WF shail 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 solebenefitofthepartieshereto,and shall not be construed to create any rights in third parties.This Agreement shall be governed and interpreted in accordance with the laws oftheStateofAlaska,and any litigation arising out of or relating to this Agreement to which WE is a party shall be commenced and maintained only in the appropriate court of the Alaska State Court System,Third Judicial District,at Anchorage. City of Koyukuk 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, City of Koyukuk 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 1751 Gambell St. Anchorage,AK 99501 Phone:(907)777-3424 Fax:(907)777-3446 301 West Northern Lights Blvd. Anchorage,AK 99503 Phone:(907)265-2162 Fax:(907)265-2170 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 is above $2,500 balance is above $300 Disbursement Fee $25.00 each time a community requests funds (through approved resolution) $5.00 each time (for a Money Order)when a community requests funds (through approved resolution) City of Koyukuk 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 City of Koyukuk R&R Fund Account -Sample Documents 11 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. 1)O&M: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,as well as replacement costs of items under $5,000.Electric Utility related O&M expenses are detailed in Table C>Axnual O@M Schedule and in the narrative detail provided in Section LX.Financial Information.Bulk Fuel Storage O&M Expenses are detailed in Tab K:Annual OC”M Costs and in the narrative detail provided in Section LX.Financial Information.Certain Bulk Fuel Facility components are common to all Participants,and the O&M costs of these items will be properly allocated,prorated according to fuel storage capacity to all Participants as defined in Table J:Participant Allocation. 2)R&R:R&R costs ate those expenses defined as items costing greater than $5,000 and/or that are not replaced on an annual basis.For the Electric Utility,Tab G:40 Year RR Schedule details the anticipated items,the frequency of their replacement and their present day value.For the Bulk Fuel Storage,Table M:40 Year Re>R Schedule details the anticipated items,the frequency of their replacement and their present day value.Certain Bulk Fuel Facility components are common to all Participants,and the R&R costs of these items shall be properly allocated,prorated according to fuel storage capacity,to all Participants as defined in Tabse J:Participant Allocation. The Participants will make annual O&M and R&R contributions on a mutually agreeable date,as specified in the attached _A,O,O¢™M Agreement.The contribution will be made directly to the Primary Operator,which will deposit contributions into separate accounts.The Primary Operator will maintain separate O&M and R&R accounts and will maintain a sufficient account balance to meet the O&M and R&R financial goals in this Plan.The O&M account may be an active non- interest bearing account,while the R&R account must be an interest-bearing,managed savings account,which requires two signatories and a community resolution for withdrawals,until such time as the cash balance makes an escrow account more cost effective;then the R&R account must be transferred to an interest-bearing invested escrow account that is acceptable to the Denali Commission.The Manager will be authorized to draw against the O&M funds for routine expenses of the Facility,however individual expenditures in excess of $5,000 will require the authorization ofthePrimaryOperator's management or governing body.See AppendixA:Primary Operator StatementofQualificationforanoverviewofthePrimaryOperator's fiscal controls and accounting procedures. At least once a year,no later than May 31,the Primary Operator will develop a budget for the upcoming fiscal year,July 1 through June 30,for both O&M and R&R.This will include an updateofactualexpensesandprojectionsandassumptionsusedinthisPlan,as described in Section IX.Financial Information,Subsequent Operating Year Revisions.Additionally,Tables A-O should be updated. City of Koyukuk 12 R&R Fund Account -Sample Documents OPERATIONS AND MAINTENANCE GUIDELINES The Primary Operator will establish an account to fund the Facility O&M so that the O&M schedule can be completed and the Facility operations can be sustained into the future (this is anticipated to be an active non-interest bearing account).For the Electric Utility,Section IX.Financial Information provides Table C:Annual O@*M Schedule as a guide to plan for annual maintenance activities and Table D:40 Year OC7M Schedule as a guide to estimated yearly O&M required contributions.For the Bulk Fuel Storage,Section LX.Financial Information provides Table K:Annual OeM Costs as a guide to plan for annual maintenance activities and Tabk L:40 Year OC*M Cashflow as a guide to estimated yearly O&M required contributions.The Primary Operator of the Facility will be responsible for the majority of the O&M of the Facility.The YKSD will be responsible for the O&M of its facilities,and as such,these costs are not included as part of this Plan. 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 Re>*R Fund Account-Sample Documentsfor "How to Establish a R¢*R Account'). For the Electric Utility,Section IX.Financial Information provides Table G:40 Year R@”R Schedule as a guide to plan for annual R&R activities and Tab H:40 Year R¢*R Cashflow as a guide to estimated annual R&R required contributions.These costs are based on the R&R cost estimate included in Appendix C:O@*M and R&R Cost Estimate -Electric Power Utility. For Bulk Fuel,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%over 10 years.Section LX.Financial Information provides Table M:40 Year R&>R Schedule as a guide to plan for annual Bulk Fuel R&R activities,Table N:40 Year Re>R Cashflow as a guide to estimated yearly R&R required contributions,and Table O:Loan Schedules as a guide to Year 20 R&R loan assumptions and payment schedules.These costs are based upon the R&R cost estimate provided by HMS,Inc,see Appendix B:OM and R&7R Cost Estimate Bulk Fuel Storage. When applicable,the Primary Operator will periodically remit R&R funds to the administrator of its R&R escrow account,according to guidelines to be established by the Denali Commission. Management and other fees charged by the escrow fund administrator will be automatically deducted from the Primary Operator's R&R escrow account,according to a Management Agreement or other similar document. The Participants will use the estimates in this Plan for year one contributions,and in subsequent years will recalculate contributions based upon assets to be maintained as actually built. City of Koyukuk 13 R&R Fund Account -Sample Documents ATTACHMENT D 40 YEAR RENEWAL AND REPLACEMENT CASHFLOW City Inflation Rate :150%Initial Cost per gallon ($/gallon):|$0.115 Reimvestment Rate :3.00%Annual increase :3% Escrow Fees:1.00%City &Store 20 Year R&R:|$144,120 City Initial Throughput (gallons):77,000 YKSD 20 Year Loan Proceeds:|$86,472 YKSD _Initial Throughput (gallons):14,300 Initial Cost per gallon ($/gallon):|$0.050 Loan Rate:5.50%NA Initial Throughput (gallons):-Annual mcrease :3%| Loan Term:10 Years|NA Initial Cost per gallon ($/gallon):|$- Annual increase:0% R &R Fund Balance Assumed Throughput (Gallons)Per Gallon Payment Bee.of Annual Deposit Interest End ofYearvor;Pencpal 1 Debt Service |-ReneW2/|Eamings (Net |Year City YKSD NA City YKSD NA Balance City YKSD NA Towa!Received Replacements of Fees)Balance 1]fs -{$8 8855/5 715 '$-$9570 $-[s -|$9,570 77,000 14,300 -|[s 0.115 |$0.050 |$- 2/]$ 9570|$9,223 §7401 §-_3 9,963 $-|s 287|$19,820 |77,865 14372 -|[s 0.118 |§0.052 |$: 3 |]{s 19820/$9,607 §766 |§-$10373 $-[s 595|$30,788 78,746 |14,443 -|[s 0.122 |$0.053 |$: 441s 30,788[$10,008 $793 1$-|$10,801 $-|$924/$42,514 79,644 |14,516 -|[5 0.126 |$0.055 |$- 5 |1s 42.514]$10,4271 $821 |$-'$11,248 $4,060 1,154[$50,855 80,559 14,588 _-{fs 0.129 |§0.056 |$- 16][S 50855/$10,804$850 |$-.$11,714 {s -[$1,526[$64,095|81,492 14,661 |[s 0.133 |$0.058 |§: 7][s_6ao95{$1321's 880s -.$12,200 $-[$1,923|$78,218 82,443 14,734 -|[s 0.137 [$0.060 |§- 8|{s 7a218]$11,797 $911/$-'$12,708 $-|s 1,564[$92,491|83,412 14,808 -|[s 0.141 [$0.061 |$=9}{s 9240/15 12.295 1 §943 |$-.$13,238 $-|s 1,850]$107,578 84,399 14,882 __-{fs 0.146 |$0.063 |$= To}Ts 107,578;5 12,815 $9761 §-$13,791]$90,058 1$350]$31,661 85,406 |14,957 -][s 0.i50[$0.065 |$aai}[s31661{s 13358-$8 1,010;§$14,368 _ $633|$46,663 86,432 15,031 dis o1s{s 00c7]§=a2]{5 46603[$13,926,8 1,046:5 $14,971 | $-[$9331$62,567|87,479 15,106 |-|[s 0.159[$0.069 [$13)]S 62,567[$14518/$1,082 /$-{$15,601 $-|$1,251]$79,419 88,546 |15,182 --][$__0.164]0.071 |$- 14t[s 79,4197$15,138 $1,120 $-'$16,258]$-{$1,588[$97,265 89,635 |15,258 ___-{[s 0.169 |$0.073 |$-_ is|[s_97265[$15,785.5.1,1601§-'$-16,945[$47111 $1,851]$111,350 90,744 |15,334 -{[s 0.174[$0.076 |$: a6)[$s 111,350]$16,461;$'1,200 §-$17,662]|$-{$2,227/$131,238 91,876 |15,411 _-|qs 0.179 |$0.078 |$>"17|[S$131,238 ]$17,168ss 1,243|§-$18,411 i; $-[$2,625]$152,274 93,031 |15,488 -|]{s.o185[s o.og0|s =P18][$s 152274]§ 17,907.$1,286.5.-$19,193 s -[$3,045 [$174,513|94,209 15,565 =|[s o190[s 0.083 $: to}[$s 174513[5 18679 $1,332,8 20,011 |$-[s 3,490]$198,014 95,410 15,643 -|{s 0.196 |§0.085 |§=20}{$s198014[$19,487 +13783 _20,865|$85,819 $_144120[5 2,704 [$163,373 96,636 15,721 -]{s_0202/5 oosa ts21}[$ 163373]$20,331'1427!$21,758 |$11,385.44 |§-[s_3,040[$176,785 97,886 |15,800 -|[s 0.208|§0.090 |§: 22)|s 176,785[$21,214 is 7a7 $22,691 $11,385.44 |$-[$3,308]$191,399 99,162 |15,879 --is 0.214[$0.093 |$-_23)|s 1913991$22,137 ie 1,529/$"23,666 |__|s_11,385.44]5 -[$3,600]$207,280 100,464 15,958 -|{s 0.220 |§006[$ - 244 1$ 207,280]$23,103|Ls 1583'S 24,686 |s_11,385.44[5 -[S 3,918 $224,408 101,793 16,038 -{{[s 0.227 |$0.099 |$: 25)13 224408[$ 24113:$1,638:$25,752 {S$11,385.44/$ -5408[$4,153]$237,550 103,149 |16,118 -|{s 0.234 |§0.102 |$-26415 237,550[$25,170 3 1,696 1 $26,866 $11,385.44 [$-[S 4523 [$257,553 104,533 16,199 -|{s 0.241 |$0.105 |$__ 27]|$__257,553|$26.275$_-_-1,755 1 $28,031 ____|$_11,385.44]$-|$4,923 ]$279,122 105,945 16,280 -[[s 0.248 |$0.108|$: 28|]$ 279122[$27,432'$1817'S 29,249[$11,385.44[$-[$5355]$302340 107,387 16,361 -|[s 0.255[$0.111 [3 -_ 291 ]$30234045 28,642'$1,881 1 $30,523[$11,385.44/$-[$5,819]$327,297 108,859 16,443 |-|1s 0.263]0.114 |$=301 |$_327,297|$29,909'$1,947 |$31,856 |$11,385.44/$121,295 [$3,892]$230,365 110,362 16,525 -|[s 0.271 [$0.118|$a31||S 230365[$31,234/§2,016 |$33,250 $-[$4,607 268,221 |111,896 16,608 -|[s 0.279|$0.121|§: 32]$8 268221[$ 32,021/$2,086 '$34,708 - $-|$_5,364/$308,294 113,462 16,691 -||s 0.288 |$0.125 |$: |33.||$__308,294[$§340747$2,160|$36,233 |_s -[$ 6166]$350,693.115,061 16,775 -|[s 0.296 |§0.129|§_34]|$350,093 $35,594§2.23618 37,830 |$-{$___7,014|$395,537 116,695 16,858 "|]8 0.305|$0.133|§: 35]|S 395,537[$37,186.$BS,§_39,500 |S$6346]$7,784]§436,475 118,362 16,943 -__-t[s 0.314 [$0.137 [$: 36]15 436,475[$38,852 .$2,396 '§41,248 s -[$8730]$486,453 120,065 17,027 -|fs 0.324 |$0.141 |$; 37 ||$ 486,453[$40,598 $2,480.$43,078 |_ $-[$9,729 $539,259 121,805 17,113 -|fs 0.333|$0.145|$- 38 ||s 539250]$ 42,426/$2567/5 _44,993 _js -|$10,785 ]§595,037 123,582 17,198 [-|[s 0.343 |$0.149 $: 39 ||$__595,037]$44,340)$2657/8 |$46,997 |$____-|$___so1]$653,935]|125,396 17,284 -] 48 0.354 |$0.154]$40}|$653,935 [$ 46345°$2,751 15 -1$49,096 $679,407 |$242 [$23,866 127,250 17,371 $0.364 |$0.158 |$: City of Koyukuk Sample R&R Documents 14 ATTACHMENT E ELECTRIC POWER UTILITY 40 YEAR RENEWAL AND REPLACEMENT CASHFLOW R &R Fund Balance Assumed R&R Year Beg.of Annual Renewals/Interest End of Collectable SurchargeYearDepositsReplacementsEarnings(Net Year KwH/Y $/KwHBalance"po P of Fees)Balance wH/Year 1 $-$7,876 |$-|$-|$7,876 196,901 $0.040 2 $7,876 |$8,193 |$-|$236 |$16,306 198,870 $0.041 3 $16,306 |$8,524 |$-{$489 |$25,319 200,859 $0.042 4 $25,319 |$8,867 |$-1$760 |$34,945 202,867 $0.044 5 $34,945 |$9,224 |$8,119 |$805 |$36,855 204,896 $0.045 | 6 $36,855 |$9,596 |$-{$737 |$47,189 206,945 $0.046 7 $47,189 |$9,983 |$-|$94415 58,115 209,014 $0.048 8 $58,115 |$10,385 |$-|$1,162 |$69,663 211,104 $0.049 9 $69,663 |$10,804 }$-|$1,393 |$81,860 213,215 $0.051 10 $81,860 |$11,239 |$54,152 |$554 |$39,502 215,348 $0.052 11 $39,502 |$11,692 |$-{|§790 |$51,984 217,501 $0.054 12 $51,984 |$12,163 |$-|$1,040 |$65,187 219,676 $0.055 13 $65,187 |$12,654 |$-1$1,304 |$79,144 221,873 $0.057 14 $79,144 |$13,163 |$-|$1,583 |$93,890 224,092||$0.059 15 $93,890 |$13,694 |$15,942 |$1,559 }$93,201 226,333 $0.061 16 $93,201 |$14,246 1 $-|$1,8641$109,311 228,596 $0.062 17 $109,311 |$14,820 |$-|$2,186 |$126,317 230,882 $0.064 18 $126,317 |$15,417 |$-|$2,526 |$144,260 233,191 $0.066 | 19 $144,260 |$16,038 |$-|$2,885 |$163,184 235,523 $0.068 20 $163,184 |$16,685 |$178,302 |$-|$1,567 237,878 $0.070 21 $1,567 |$17,357 |$-|$311 $18,955 240,257 ||$0.072 22 $18,955 |$18,057 |$-|$379 |$37,391 242,659 $0.074 23 $37,391 |$18,784 |$-|$748 |$56,923 245,086 $0.077 24 |$56,923 |$19,541 |$-{$1,138 |$77,603 247,537 $0.079 25 $77,603 |$20,329 |$10,935 |$1,333 |$88,330 250,012 ||$0.081 26 $88,330 |$21,148 |$-|$1,767}$111,245 252,512 $0.084 27 $111,245]$22,000 |$-|$2,2251$135,470 255,037 $0.086 28 $135,470 |$22,887 |$-|$2,709 |}$161,067 |257,588 $0.089 29 $161,067 |$23,809 |$-|$3,221 |$188,097 260,163 $0.092 30 $188,097 |$24,769 |$72,087 |$2,320 1$143,100 262,765 $0.094 31 $143,100 |$25,767 |$-|$2,862 |$171,729 265,393 $0.097 32 $171,729 |$26,806 |$-|$3,435 |$201,969 268,047 $0.100 33 $201,969 |$27,886 |$-{$4,039 |$233,894 270,727 ||$0.103 34 $233,894]$29,010 |$-{$4,678 |$267,581 273,434 $0.106 35 $267,581]$30,179 |$22,385 |$4,904 |$280,279 276,169 $0.109 36 $280,279 |$31,395 |$-|$5,606 |$317,279 278,930 $0.113 37 $317,279]$32,660 |$-|$6,346 |$356,285 281,720 $0.116 38 $356,285 |$33,976 |$-|$7,126 |$397,387 284,537 ||$0.119 | 39 $397,387 |$35,346 |$-|$7,9481$440,680 287,382 $0.123 40 $440,680 |$36,770 |$411,619 |$5814 $66,412 290,256 $0.127 City of Koyukuk R&R Fund Account -Sample Documents Inflation Rate : Reinvestment Rate : Escrow Fees: Initial KwH Collectable : Initial Cost per KwH : Annual increase : 1.50% 3.00% 196,901 $0.040 $0.030 15