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Pedro Bay Bulk Fuel Facility & Electric Utility Upgrade Project Feb 25, 2004
Business Operating Plan of the Pedro Bay Bulk Fuel Facility and Electric Utility Upgrade Project FEBRUARY 25,2004 Pedro Bay Village Council P.O.Box 47020 Pedro Bay,AK 99647 Phone:(907)850-2225 Fax:(907)850-2221 MAR 01 2004 AIDEA/AEA oe PEDRO BAY VILLAGE COUNCIL <> P.O.Box 47020 Pedro Bay,AK 99647 907.850.2225 /907.850.2221 (fax) TheCouncil@pedrobay.com February 25,2004 State of Alaska Alaska Energy Authority Denali Commission To Whom It May Concern: This letter is to certify that Ben Foss,Council Vice-President,has signature authority in the absence of Keith Jensen,Council President,and may sign official grant agreements,resolutions,and other necessary documents as approved by the PedroBayVillageCouncil. If there are any questions or concerns regarding this signature authority,please feel free to contact Village Administrator,John Baalke. Signed, b2 wn.Kab,apesfey,John M.Baalke,Administrator 'Bate La Qn.2/asft7KévinJensen/founcil Member Date TABLE OF CONTENTS PAGE TI.-§EXECUTIVE SUMMARY ....s.ssssssssssssssssssssssssssseceseneneneseneneseseseseseossnssenesessaeecenusssessasesenseusearssesesaceeaaseoros 3DocumentInterrelationships..........sscssesssssesssessssesssessssssssrossnccsssosssssssuesssnscsessuesssessesessvecsscesasscusesseessnssenneessnessneessases 3 IT,BACKGROUND ........sccssccssscssscsssscsscsesssosensccescesesesonssesssessssssssssensessnasessseassesensesenscessessssscssessseossssessscnee 4 Selected Statistics -Pedro Bay.....sssecsssssesssesssessscsseessessnsscsssssessecssscascnesesecssessessncesecesesseeusecseensesssesscssssenscesees 4 ITI.BULK FUEL FACILITY UPGRADE .....ccsscssssscssssccscccssesessncccescecesscecessecsssecsssceeeseesenss 5 Bulk Fuel Storage Facility Description .....ccsssssssesssessessssssssssesssesnsesseenees 5 Project EXclusions.....sscsssessssssssssssssssssssssssssssesssssscessescsssssssnssssssssssssatsssanseassseenssscensesnsenseneenees 5 Community Bulk Fuel Storage Facility Site Plan and Details...sssssssscssssssseesssssscnscsssaeenscseessecsecscensensenseenees 5 Bulk Fuel Storage Facility Capacity ...c.ssssssssesssesssesssessssssssssesssesssscssssssesssesssssssssessssssssssessssssesssessssessessssssesssvsssseessoess 9 TV.ELECTRIC POWER UPGRADE .....ssssssssssseersesssesessssaseescsensesscssasescesssssansonenenssssesseesesenesonscsssosssesessseeses 10 Electric Power Generation Facility Description .......sessssssesssssesesessssssssseseas 10 Project Exclusions...sesesseesescssescssesonsusceseacsssausseseeaeseescsesscasesssseesscseanteses 10 Electric Power Generation Facility Capacity ......ssessecssssssesssssssssssssssssareersensssssseessees 10 Project Site and Layout Plan ....sssssssssssssssssecseecssessecssecssesssssssssssssescseesseseneseseeseessessees sesensssesnecesseneceneenees 10 Vv.PRIMARY OPERATOR ......scsssscevsssssssossnsevesvsesessscssecssssssesesvsecessssesosssssvensssesssoeasesesnenssscsssnssesesnssssssooeenss 2 Turnover and Assumption of Responsibilities /Sustainability ...........ssessssessssecssssssssesssseessssessaseesssseeessesees 12 Staffing and Training .......scsesssssssssesssessessecsssssessssssssassnsssssesessessesssssscsssssssensancesceacesessusenssncenseseesccacsansaneenseaeeaneeaes 12 Financial Responsibilities ..........sscsssssesssssssssesesssssseesssssesneesssseessesssessssssensensesssssenscesecseeasssseaussacaucescanceanennceseessensenseensess 13 Operations and Maintenance Guidelines .......s.ssssscsscsesssessssssessesssesessecessessesssnsesesensseseneens 13 Renewal and Replacement Guidelines.......sssessssssesssssssesessserssessseensesssesneensees 14 Audits and Reporting......cssccssssssssessnsessesssessnessnesssesssscssessecsssesscssecsssccanecsescasenseessess 14 VI.SECONDARY OPERATOR ..ssscssssssssssssesssscsssncensasensssenserensesssssnesessessssesssceosessessssossssosesssssesserosensonsasees 15 VIT.INSURANCE .......sssscccsssssssevssssscsecscccsccscnsscssssssssssssnseneneeesscssesecesesececccearensssssessssesesesssseessessesenees 16 VIII.REGULATORY COMPLIANCE usssssssscessssssssssrersesssrcnsenssssssssssssnsesssesssassnsenssssesssssesersessesssnscosssseesseseuaeers 17 TX.FINANCIAL INFORMATION ......ccsssccscccssscescvcccesccccnsevecessccscscvesevenenevsvsssscscesecenesenssscesoosossooscoeovoseesessess 18 Key Financial Assumptions .....sscsssssssecssseesssecsssccnsecssssssssessssscsscssnsessncssnsesssccusecaseccuserasessscannesnnvosnseseasocssessanessssesnssseans 18 Key Operating Assumptions....cssesssesssesssssessecssecssnesssessssscsssssnsesssscsssessnsecasecascesuressccssecnnecearernecseaecansasaneasanesansossne 18 Project FUNding.....ccsscssscssessssssessecssecsseessessnessnessscsssccssesssessesssccnseceneccscsaecasecsecevecaececenssesecenscansenssnrsesuosssaesuasseassenesssens 19 Subsequent Operating Year Revisions......ccssscsssessssssssesssesssssssnsecsusennsscnscecarccanrecnsecneceansceneesancensessasossnseavesasesssnsstsas 19 FINANCIAL TABLES -ELECTRIC POWER UTILITY ....scccsssssssscsssesssssceecssssenscsnsssssssccsssesoessssecenesssnencars 20 Table A:40 Year Estimated Utility Net Income and Cash flow......sesssesssssssssernsessessensesseesssesssssessecesessnsoesssess 21 Table B:Power Generation and Consumption SUMMALY......csssssssseesseseerssseerssesecnceneens 22 Table C:Annual O&M Schedule...ssssssesssssssssssssnsssssssesseessssssssaseassssesssssssesesssssessesnesseneeneaeersertentes 23 Table D:40 Year O&M Schedule ...cssssssessesecsssssssesessssecsssssssssssseseesesassseesceenrsnsensnnenns 24 Table E:Annual Fuel Costs oc ccecesssssssecssssssssssscasoosossossssscensesssnsessassnesnesesseanscssssssssncsassscaauesssseanconsensnnseeganssssenes 25 Table F:Annual G&A and Depreciation Expenses....cssssssssssssssesesecssrssressesteacessesennenssseesssecneensensensenseesaneaneenees 26 Table G:40 Year R&R Schedule...ssecessssessssssscssessessssesssssnsssessessncsaceeesaessssssnsesenssnsceceeeseeseesecnssnenenseneaueesnees 27 Table H:40 Year R&R Cashflow...sssesesssssessssscssersssssssssssarencsssesssessenecesseessssssessssasconeneaneaseassnsassessensenassonoeeerints 28 FINANCIAL TABLES -BULK FUEL STORAGE .....ssssssssssssesssessscscecooceserscssnssesncossssssssecscnorseseaeseesecoraenes 29 Table I:Summary of Facility Expenses to Participant .......eccsssesssessssecsssescsssessnsessnsecnnecessaes 30 Table J:Participant AMOcation .....ssssesssssssnneeccnsessnsessssneasssecnssnressssessssesssneccssesssnseersnssesnessnnetey 31 Table K:Annual O&M Cost ..sssesssssersssrsesesneeneenees 31 Table L:40 Year O&M Cash flow...esssssssscscnseneeseesneesees 32 Table M:40 Year R&R Schedule.....ssesssessecssensensecsesenneerees 33 Table N:40 Year R&R Cash flow....ceccsssssesssscseccnecneeseenmessesseesneesneeaneanes 34 Table O:Loan Schedules.......seessessssssssesssssesssssecssesneessersssnsensenssesessessnsenseans 36 Pedro Bay Village Council Bulk Fuel Facility 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,SECONDARY OPERATOR AGREEMENT 2.SITE CONTROL DOCUMENTS 3,GRANT AGREEMENTS 4.R&R FUND ACCOUNT --SAMPLE DOCUMENTS 5.POWER PURCHASE AGREEMENT Pedro Bay Village CouncilBulkFuelFacilityandElectric Utility Upgrade Business Operating Plan Page 2 of 37 SEE BACK COVER FOR CD VERSION OF THIS PLAN. I.EXECUTIVE SUMMARY This Business Operating Plan (the "Plan”)provides a guideline for the Pedro Bay Village Council's (the "Council”)maintenance,operation and sustainability of a new Bulk Fuel Storage and Electric Power Generation Facility (the "Facility”).The Council 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 (CwH)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 operation,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 Tabk I:Summary ofFacility Expenses to Participants for the estimated per gallon fuel surcharge. The Bulk Fuel Upgrade (BFU)Project will construct a new Bulk Fuel Storage Facility in Pedro Bay that will replace all of the existing storage facilities of the Council.The Council will utilize its Facility assets to operate Council owned facilities and will directly retail fuel.The Rural Power System Upgrade Program will construct a New Electric Power Generation Facility in Pedro Bay. Upon construction,the Facility will be turned over to the management of the Council (the "Primary Operator”)after the satisfactory completion,as determined by the Alaska Energy Authority (AEA) ot 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 Council will become the Primary Operator and will assume responsibility for the use,day-to-day operations,and long-term maintenance of all Facility components,except those noted elsewhere in the Plan.When the project has been completed (the Facility is complete,crews have demobilized,invoices have been paid and there are no outstanding issues),the AEA will issue,through its Grants Manager,a Notice of Project Completion.This 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 the following: Secondary Operator Agreement Site Control Documents Grant Agreements R&R Fund Account -Sample Documents Power Purchase Agreement The Secondary Operator Agreement references the Plan,and includes language requiring the Plan befollowed.The Plan takes effect after this Agreement is executed.Acceptance of the Plan by execution of this Agreement is pre-requisite to funding from the Denali Commission (the "Commission”),which will be provided through separate Grant Agreements (See Attachments). Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 3 of 37 4 ' II.BACKGROUND The Denali Commission was established by the Federal Government to fund improvement projects within the State of Alaska,including the Bulk Fuel Upgrade 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 Pedro Bay Bulk Fuel Facility and Electric Utility Upgrade Project,which ts to be partially funded by the Commission. The village of Pedro Bay is located at the east end of Iliamna Lake,at the head of Pedro Bay,176 air miles southwest of Anchorage on the Alaska Peninsula.Transportation to the village is by air or water and the State of Alaska owns and operates a 3,000-foot,gravel runway. Pedro Bay,a Dena'ina Indian village,has 50 residents,of which approximately half are Alaska Native.The economy of Pedro Bay is seasonally based and heavily reliant on fishing and tourism industries,although residents heavily depend on subsistence activities.Most occupied homes in Pedro Bay,many of which are used only seasonally,have individual wells and septic systems and are fully plumbed.Water is derived from Iliamna Lake,and honeybuckets are used by some households.The Council is the primary provider of utility services;it owns and operates the washeteria,health clinic,electric utility,water and sewer utility,bulk fuel facility and associated retail fuel sales,and landfill. Selected demographic and historical data for the community is provided below: Selected Statistics -Pedro Bay Population 2000 50 1990 42 1980 33 1970 65 1960 53 1950 44 Housing (2000 Data) Occupied Housing 17 Vacant Housing Due to Seasonal Use 26 Other Vacant Housing 0 Economic Data (2000 Data) Unemployment Rate 0.0% Median Household Income $36,750 Pedro Bay Village CouncilBulkFuelFacilityandElectric 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 Pedro Bay that will replace all of the existing storage facilities of the Council (the "Participant”). Bulk Fuel Storage Facility Description The AEA contracted with Alaska Energy and Engineering,Inc.to develop a Conceptual Design Report (CDR),which was submitted to AEA on July 8,2003.The purpose of the CDR is to provide a concept design and construction cost estimate for consolidation and upgrade of bulk fuel storage/electtic power in the community,which are referenced in this Plan.This Plan is predicated upon the information contained in the CDR,and updates,and its acceptance by the community. The new bulk fuel Facility will be located at two sites:(1)a bulk fuel storage,bulk transfer and dispensing site (the village site)located in the vicinity of the community power plant,and (2)a bulk fuel storage site (the school site)at the new school in Big Hill Subdivision.The total Facility will include six bulk storage tanks and a dispensing tank. Project Exclusions The project does not include the following: e Decommissioning of existing tanks or environmental cleanup e Retail business:including licenses,revenue,prices,taxes,profits,or contributions to the wholesale fuel storage program The AEA and the Commission will not provide any guarantees,warrantees or ongoing support, other than that which is defined in the Plan.However,manufacturer warranties will be transferred at the time of project turnover (defined in Section V.Primary Operator). Community Bulk Fuel Storage Facility Site Plan and Details See the following diagrams for the details of the bulk fuel portion of the Facility: Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 5 of 37 Community Bulk Fuel Storage Facility Site Plan [)REMAINDER ANCSA 14(c) TRACT 7 n 3 _-NEW ROAD RIGHT-OF-WAY,TYP 1=150 | ---eo oS LOT 1,BLK1.+.eC3]BIG HILLEXISTING S au CWT Saar SUBDWMISION GRAVEL ROAD i { VILLAGE OFFICE,-WELL ! SEE SH2 FOR ® VILLAGE TANK EXISTING VILLAGE VILLAGE OFFICE FARM WORK POWER PLANT TO BUILDING BE ABANDONED .. PROPOSED VILLAGE TANK FARM PROPERTY BOUNDARY USS ( 'Lj6972' PROPERTY LINE//EASMENT,TYP NN / //SEE SH38&4 FOR 'TEACHER INSCHOOLTANKHOUSING i HFARMANDPOWER PLANT WORK 'SCHOOL/\MeN P WELL REMAINDER is oW® ANCSA 14(c)\RENOVATED SCHOOL x.TRACT 7 POWER PLANT /USS NN EXISTING SCHOOL6117TANKFARM SPECIFIC NOTES: [1 >4 EA.EXISTING 6,000 GALLON VILLAGE POWER PLANT TANKS TO BE TAKEN OUT OF SERVICE. [2>>EXISTING VILLAGE GASOLINE AND DIESEL TANKS TO BE TAKEN OUT OF SERVICE. [35>2 EA.EXISTING 1,000 GALLON TANKS AND 1”BURIED FUEL UNE TO BE TAKEN OUT OF SERVICE. [4>NEW 600 GALLON TANK V-5 WITH CATCH BASIN AND DOUBLE WALL ABOVE GROUND FUEL PIPING TO BUILDING BOILER proect:PEDRO BAY BULK FUEL STORAGE ora wv:=JTD SCALE:NONE awe Sito CHS on &POWER SYSTEM UPGRADE DESCNED BY:BCG sae 10/26/05 a is oi AGLAWme:PLE WANE SHEET oF |IN Rurel Eneray Group (20!PROJECT SITE PLAN PBAYSITE Ss H 1 4 4 rs 813,West Norther Uqhts LASKSA Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 6 of 37 Village Site Tank Farm Plan +-2”TO GASOLINE DISPENSERliii TANK V1 8'-0"¢«22'L bh >e 30)o OO pay Qc 9}8,000 GALLONS 1"=10' GASOLINE DISPENSING ELM + TANK V2 O aheanral (-mo [ae]00 [O pun +TANK FILL12,000 GALLONS C /CONNECTIONSDIESELFUEL{- TANK V3 9'-8"6x23'LwoC)oO O OO 6 Hea}|o" 12,000 GALLONS ;|+BULK DIESEL FUEL TRANSFER HOSE STAND TANK V4 S 9'-B"bx23'L L-<"|||[>wo O oO teno)jor12,000 GALLONS pfDIESELFUEL Ne \ TANK SCHEDULE TANK |NEW PREVIOUS |NEW/|1YPE FUNCTION |DIESEL GASOLINE4lower[owNneR |ExiSTING |(2)CAPACITY(1)|CAPACITY(1) 51”VILLAGE]SCHOOL EXISTING |OW ___1BULK 16,000 $2 [VILLAGE [SCHOOL [EXISTING [OW {BULK 10,000 VILLAGE -EXISTING STORAGE TOTAL 20,000 Yi__[VILAGE NEW FR JOISPENSING #000)|PUMP SCHEDULE V2__|VILLAGE NEW SW jBULK 2,000 LABEL |FUNCTION STYLE MOTOR "te au 24 ace a P-1 GASOLINE DISPENSING |SUBMERSIBLE |3/4HP,250V V5 |VILLAGE EW Sw [BULK 600 P-2 |DIESEL TRUCK LOADING |CENTRIFUGAL [THP,230V VILLAGE -NEW STORAGE TOTAL 36,600 8,000 PROJECT STORAGE CAPACITY BY PRODUCT 56,600 8,000 PROJECT TOTAL GROSS STORAGE CAPACITY 84,600 NOTES:i ALL CAPACITIES ARE GROSS SHELL CAPACITY IN GALLONS2)SW =SINCLE WALL,DW =DOUBLE WALL,FR =TWO-HOUR FIRE RATED proect:PEDRO BAY BULK FUEL STORAGE onanwy:JTD |SoNe:NONE oepertent of Comsiaty APE emis 0 ; &POWER SYSTEM UPGRADE DESICNED BY:BCG DATE:10/26/03 Te ea a AOEA/AEA zeme:R NG PLAN PLE.WAN SHEET OF at eety ee.FE ALASKAVILLAGETANSCHEDULES.PL paarvTFPLaN ISH?4 a cnn aah Pedro Bay Village CouncilBulkFuelFacilityandElectric Utility Upgrade Business Operating Plan Page 7 of 37 BaSchool Site Tank Farm Plan pee MIN.3°HIGH CURB THREE SIDES [SCHOOL BOILER ROOM| - Z LLLLL NEW 2”SUPPLY PIPELINE TO NEW SCHOOL DAY TANK LLLLL XXi 4"CONTAINMENT PIPE,i a SLOPE TO DIKEhl il EXISTING 2”DAY TANKIMSUPPLYPIPELINETO ul (POWER PLANT DAY TANK 1”ACTUATED BALL VALVES CONTROLLED BY AUTOMATIC FILL DAY TANK CONTROL PANEL,"7 (1 EXISTING &1 NEW)Ont ©oedatd EXISTING SCHOOL TANK $1 10,000 GALLON DIESEL NN EXISTING LINED TIMBERTERTIARYCONTAINMENT DIKE EXISTING PIPING,TYP Qo]C)OoDO EXISTING SCHOOL TANK S2 10,000 GALLON DIESEL \---tr---------:. ; x oN ;*:4 ,-- ra 7 \-NEW CONCRETE DRIVE THROUGH TRUCK SLAB FOR SURFACE FLOW SPILL CONTAINMENT promct:PEDRO BAY BULK FUEL STORAGE DRA Wy:JTO SCALE:NONE &POWER SYSTEM UPGRADE besn BCG |DHE 1/205 |*Dapartpent of aa AyrePeonomic CevaloprnentTITLE:SHEET "yen an ural EneegyEnergy oe../EA!=A LASKA'Anchorage,AloskaSCHOOLTANKFARMPLANPBAYSTFPLANISH344 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 8 of 37 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 -bos :_Gallons Total Gallons Total Storage/Dispensing Capacity Number.PetTank Gallons PerTank Gallons (Gross)(Gtoss)(Net)(Net) Pedto Bay Village Council Gasoline Dispensing 1 8,000 8,000 7,200 7,200 Diesel Existing Primary Storage 2 10,000 20,000 9,000 18,000 Intermediate Storage 4 12,600 36,600 11,340 32,940 Subtotal Diesel 6 56,600 50,940 Total Storage/Dispensing 7 64,600 58,140 Pipeline Components Numbet Header (on-site)1 Pipeline to dispenser 1 Single Product -Retail Dispenser 1 The 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. Pedro Bay Village CouncilBulkFuelFacilityandElectric Utility Upgrade Business Operating Plan Page 9 of 37 IV.ELECTRIC POWER UPGRADE mm a eT a _ The Rural Power System Upgrade Program will construct a renovated Electric Power Generation Facility in Pedro Bay that will consist of three diesel engine generators,automated switchgear,fuel handling,and a step-up transformer bank.The school will retain one diesel engine generator for emergency power. Electric Power Generation Facility Description The AEA contracted with Alaska Energy and Engineering,Inc.to develop a CDR for the Electric Power Upgrade Project,which was submitted to AEA on July 8,2003.The purpose of the CDR is to provide a concept design and construction cost estimate for consolidation and upgrades to the electrical generation system for the community of Pedro Bay.This Plan is predicated upon the information contained in the CDR,and updates,and its acceptance by the community. The renovated Electric Power Generation Facility will be located at the new school site in the existing school Electric Power Generation Facility.The renovated Facility will consist of three diesel engine generators,automated switchgear,fuel handling,and a step-up transformer bank.The school emergency power facility will be located in a new addition at the north end of the renovated Electric Power Generation Facility.The emergency power facility will consist of one diesel engine generator,which will be interconnected through the existing school switchgear to the new Facility. 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 Power Generation Facility Capacity The proposed capacity of the Facility will be 285 Kw,using three generators,which is an increase from existing capacity.The generators will feed automatic load sensing switchgear and step-up transformers.The generators are sized so the largest generator is capable of handling peak loads. 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 powerrequirements.The initial annual estimated KwH consumption by the community is estimated to be223,000 KwH;growing to 232,000 KwH by year five and 244,000 KwH by year ten.Annual school KwH consumption is assumed to remain constant at 60,000 KwH. Project Site and Layout Plan The following diagrams show the project layout and site plan: Pedro Bay Village CouncilBulkFuelFacilityandElectric Utility Upgrade Business Operating Plan Page 10 of 37 Power Plant Equipment Layout GN FP ALL0, NEW 20°x16'BUILDING EXTENSION Lk SCHOOL UTILITY/ EMERGENCY GENERATOR ROOM SANSi= EXISTING 6OkW EXISTING SCHOOL RADIATOR EXISTING SCHOOLxiBACKUPGENERATOR NEW POWER PLANT STATION SERVICE PANEL NEW VILLAGE SWITCHGEAR AND DISTRIBUTION PANEL GALLON POWERGENERATOR VILLAGEGENERATOR |__| 4 ROOM EXISTING VILLAGE A rN125kWGENERATORpo|| =o A NEW VILLAGE -\ 100KW GENERATOR Ds Ucay=iT||y=|Lf L377 EXISTING 100 y PLANT DAY4TANK IP EXISTING ELECTRICAL PANELS AND SWITCHGEAR ian wr rq SARL SE YMEXIST.RADIATOR Ha NN i i EXISTING SCHOOL HEATING foays SS (scHoot)i:AT &WATER UTILITY NEW RADIATOR ve BOILER |||EQUIPMENT,TYP m ROOM i Uo BOILER u4 KA ha cocabY'!roan i |we[_]tryaPALl Le ji 4 NEW 100 GALLON DAY TANK - ts FOR SCHOOL BOILER AND noa BACKUP GENERATOR 1 =8 | proxct:PEDRO BAY BULK FUEL STORAGE beam BY:JTD/SJS]Sue:NONE Stoty of Alogka &POWER SYSTEM UPGRADE nese or806 |owe 10/26/03 *we ee wfeons Owelpmert:FILE NAME SHEET OF Rurol Energy Group =ALASKA™ POWER PLANT PLAN paavpprian IS H4 4 wk »ote te aes FS Aitmorure Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 11 of 37 ahV.PRIMARY OPERATOR The Primary Operator for the Pedro Bay Bulk Fuel Storage Facility and Electric Power Facility is theCouncil.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 Council will become the Primary Operator and will assume responsibility for the use,day-to-day operations,and long-term maintenance of all Facility components,except those noted elsewhere in the Plan. When the project has been completed (the Facility is complete,crews have demobilized,invoices have been paid and there are no outstanding issues),the AEA will issue through its Grants Manager a Notice of Project Completion.This 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 operations and will inform the Commission in a timely fashion whenever a Manager is to be replaced.The Manager will manage the Primary Operator 's enterprises and will be given complete responsibility for operating the Facility in compliance with this Plan. It is recognized that there will be,from time to time,turnover in various operational,maintenance and administrative positions.Because all functions are essential to the successful operation of the Facility,replacements will be recruited and trained as necessary.The Manager will be responsibleformaintainingadequatestaffingandtrainingatalltimes.When the Primary Operator lacks trainedoperatorsandadministrativestaff,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. Pedro Bay Village Council 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 theFacility-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 replacementcostsofitemsunder$5,000.Electric Utility related O&M expenses are detailed in Table C:AnnualOMScheduleandinthenarrativedetailprovidedinSectionIX: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 LX:Financial Information to address estimates and assumptions. 2)R&R:R&R costs are those expenses defined as items costing greater than $5,000 and/or that are not incurred on an annual basis.For the Electric Utility,Tab 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,Table M:40 Year R¢*R Schedule details the anticipated items,the frequency of their replacement and their present day value. The Primary Operator will maintain separate O&M and R&R accounts and will maintain a sufficient account balance to meet the O&M and R&R financial goals in this Plan.The O&M account may be an active non-interest bearing account.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 authorization of the Primary Operator's management or governing body.See AppendixA: Statement ofQualification for an overview of the Primary Operatotr's fiscal controls and accounting procedures.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.See Attachment 4:R&R Fund Account --Sample Documents,for examples of acceptable R&R account agreements and a sample community resolution that limits the use of the funds to R&R expenses only. At least once a year,no later than August 31,the Primary Operator will develop a budget for the upcoming fiscal year,October 1 through September 30,for both O&M and R&R.This will include an update of actual expenses and projections and assumptions usedin this Plan,as describedinSectionIX: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&M schedule can be completed and the Facility operations can be sustained into the future (this isanticipatedtobeanactivenon-interest bearing account).For the Electric Utility,Section IX:FinanaalInformationprovidesTableC:Annual O@*M Schedule as a guide to plan for annual maintenanceactivitiesandTableD:40 Year O¢”M Schedule as a guide to estimated yearly O&M required contributions.For the Bulk Fuel Storage,Section IX:Financial Information provides Table K:Annual Oe>M Costs as a guide to plan for annual maintenance activities and Table L:40 Year O@7™M Cashflow as a guide to estimated yearly O&M required contributions. Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 13 of 37 Renewal and Replacement Guidelines The Primary Operator will establish a Facility managed savings account or an interest-bearing invested escrow account acceptable to the Denali Commission,which will ensure capitalization of anamountsufficienttomaintaintheR&R Schedule (see Re*R Fund Account-Sample Documents for"How to Establish a RCPR Account'). For the Electric Utility,Section LX:Financial Information provides Table G:40 Year RR Schedule as a guide to plan for annual R&R activities and Table H:40 Year RC*R Cashflow as a guide to estimate annual R&R required contributions.These costs are based on the R&R cost estimate include as Appendix C:O&M and RC*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 ptovides Tab M:40 Year RC*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 Tabk 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: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 Participant 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 Pedro Bay unless the Primary Operator requests an on-site audit.The Primary Operator will provide an annual report of operations to the Commission that includes a summary description of O&M and R&R projections, annual O&M and R&R budgets and expenditures,a projection of future O&M and R&R cash flows, and any other information appropriate to the Facility.The Commission will review the reports and the annual financial reconciliatory audits of Facility operations and will actively monitor the Primary Operator's ability to operate consistent with guidelines outlined in this Plan.The Commission has reserved the right to visit the site and to access all books and records related to the Facility at any time upon written request. Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 14 of 37 VI.SECONDARY OPERATOR The Secondary Operator for the Pedro Bay Bulk Fuel Facility and Electric Power Generation Project will be determined in the future by the Denali Commission,if the need arises.See the attached Secondary Operator Agreement for details. Pedro Bay Village CouncilBulkFuelFacilityandElectric 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,estimates are included in the annual O&M costs. For the Bulk Fuel Facility,the Primary Operator is required to be insured for General Liability Insurance,which is estimated to be 10 cents/gallon based on the year one throughput with subsequent years inflated at 1.5%.The Primary Operator will include the cost of General Liability Insurance in the annual O&M costs. Pedro Bay Village CouncilBulkFuelFacilityandElectric 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 of Alaska.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. Pedro Bay Village Council Bulk Fuel Facility 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 insurance is estimated to be 10 cents/gallon based on the year one throughput with subsequent years inflated at 1.5%,while Electric Utility insurance is estimated to be $2,000 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 85%. 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 $2.17 per gallon. Annual KwH usage is estimated to grow at 1%per year. Line loss and unbilled production are assumed to be 10%per year. Initial first year total power generation is estimated to be 223,000 KwH for general community consumption and 60,000 for school consumption. Initial annual billed KwH is estimated to be 200,700 KwH to community users and 60,000 KwH to the school district. Energy is produced at 14 KwH/gallon on average. Initial annual bulk fuel throughput estimates:48,500 gallons/diesel and 6,750 gallons/gasoline. Council Bulk Fuel throughput is estimated to grow annually at a rate of .75%for diesel and .25%for gasoline consumption. Pedro Bay Village CouncilBulkFuelFacilityandElectric 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 Council per gallon O&M costs based upon updated throughput estimates Step 4:Recalculate Council per gallon R&R costs based upon updated throughput estimates Step 5:Recalculate total Council per gallon fuel costs Ekectric 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 Pedro Bay Village CouncilBulkFuelFacilityandElectric Utility Upgrade Business Operating Plan Page 19 of 37 FINANCIAL TABLES -ELECTRIC POWER UTILITY Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 20 of 37 TABLE A 40 YEAR ESTIMATED UTILITY NET INCOME AND CASHFLOW Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 21 of 37 Inflation Rate :Annual Profit Margin:F'-)-:- Annual Revenue Annual Expenses N Annual Cashflow Before Taxes Estimated Assumed Estimated timated .General & et Year Nonschool Nonschool Annual AnnvalSchool Estimated O&M Fuel Costs |Administrative |Depreciation Total Income Net Income Plus:Less:R&R Annual Retail Price Kol Yea Nonschool Revenue Rene Cables C&D)(Table E)Expenses (Table F)Expenses Before Year|Before Taxes ||PePreciation |Cash Deposit Cashflow $/KwH (Table B)Revenue (Table B)©(Table F)Taxes (Table F)|(Tables G&H) 1 $0.496 170,595 $84689]$ 19,800|$104,489 $40,538 }$43,865 |$11,250 |$2,000 |$97,653 $6,836 1|§$6,836 $2,000 |$8,530 $306 2 $0.503 172,301 $86,631 ]$19,800}$106,431 $41,146]$44,874]§11,419 |$2,030 |$99,469 $6,963 2 1$6,963 $2,030 |$8,615 $378 3 $0.509 174,024,|$88613 |$ 19,800]$108,413 $41,763 |$45,907 |$11,590 |$2,060 1 $101,320 $7,092 3 |$7,092 1 1$2,060 |$8,701 $452 4 $0.516 175,764 $90,633}$19,800]$110,433 $42,390]$46,964 |$11,764 |$2,091 |$103,209 $7,225 41$7,225 $2,091 |$8,788 $528 5 $0.534 177,522 $94,712}$ 19,800{$114512]1$ 43,026|$48,046]$11,940 |$4,009 1$107,021 $7,491 5 |$7,491 $4,009 |$8,876 $2,624 6 $0.540 |179,297 $96,814]$19,800]$116,614 $43,671 |$49,154 |$12,119 |$4,040 7 $108,985 $7,629 6 |$7,629 $4,040}$10,758 $912 7 /1$0.546 181,090 ||$98,958]$19,800 |$118,758 $44,326 |$50,289 |$12,301 |$4,073 |$110,989 $7,769 71$7,769 $4,073 |$10,865 $977 8 $0.542 182,901 $99,127}$19,800]$118,927 $44,991 |$51,451}$12,486 |$2,220 1$111,147 $7,780 8 i$7,780 $2,220|$10,974 $(974) 9 $0.549 184,730 $101,358]$19,800]$121,158 $ 45666|$52640]%12,673 |$2,253 {$113,232 $7,926 9 {$7,926 $2,253 |$11,084 $(905) 10]|$0.616 186,577 $114,930]$ 19,800]$134,730 $46,351 |$53,857 |$12,863 |$12,845 {$125,916 $8,814 10 1 $8,814 $ 12845/$11,195 $10,464 3!$0.622 188,443 $117,251]$19,800]$137,051 $47,040,$55,104]$13,056 |$12,879 |$128,085 §8,966 114$8,966 $12,879]$13,191 $8,654 12 $0.628 190,327 $119,618}$ 19,800]$139,418 $47,752]$56,380 |$13,252 |$12,914]$130,298 $9,121 12 1$9,121 $12,914]$13,323 $8,712 13 $0.618 192,231 $118885]$ 19,800]$138,685 $48,4681$57,687 |$13,451 1$10,006]$129,612 $9,073 13 |$9,073 $10,006]$13,456 $5,623 14 $0.625 194,153 $121,349])$ 19,800]$141,149 $49,195]$59,025 1 §$13,652([$10,042]$131,915 $9,234 14]$9.2341 7% 10042]$13,591 $5,685 |15|1 $0.606 196,095 }|$118,896|$19,800 ]$138,696 $49,933 |$60,395 1 $13,857 |$5,437 |$129,622 $9,074 15 |$9,074 $9,437 |$13,727 $784 |16||0.613 198,055 $121,460|$19,800]$141,260 $50,682]$61,798]$14,065 |$5,474.1 $132,019 $9,241 16 |$9,241 $5,4741$15,844 $(1,129) 17 $0.620 200,036 $124,076|$19,800|$143,876 $51,442]$63,234]$14,276 |$5,5121$134,464 $9,412 17 |$9,412 $5,512]$16,003 $(1,079) 18 $0.616 202,036 $124,403 }$19,800]$144,203 $52,214]$64,704 |$14,490 |$3,361]$134,769 $9,434 18 |$9,434 $3,361]$16,163 $(3,368) 19 $0.690 204,057 $140,702]$ 19,800]$160,502]1$52997|$66,210]$14,708 {$16,088 |$150,002}+$-10,500 19 |$10,500 $16,088]$16,325 $10,263 20 $0.696 206,097 $143,481 |$19,800}$163,281 $53,792 |$67,752 |$14,928 |$16,127]$152,599 $10,682 20|$10682}1$16127]$16,488 $10,321 21 $0.703 208,158 $146,316|$ 19,800]$166,116 $54,599}$69,331]$15,152]$16,167]$155,248 $10,867 21]$10,867 $16,167 |$18,734 $8,300 22 $0.710 210,240 $149,208]$19,800]$169,008 $55,418]$70,947]$15,379 |$16,207 |$157,951 $11,057 22 4$(11,057 $16,207 |$18,922 $8,342 23 $0.707 212,342)|$150,200}$19,800]$170,000 $56,249]$72,602]$15,610 |$14,417]$158,878 $11,121 23 |$11,121 $14,417,$19,111 $6,427 24 $0.714 214,466 $153,2111$ 19,800]$173,011 $ 57,0931$74,297!$15,844 |$ 14.458]$161,693 $11,318 24 7$11,318 $14,458 1$19,302 $6,475 25 $0.731 216,610 ||$158,337]$19,800]$178,137 $ 57,949|$76,033 |$16,082 |$16,419]$166,483 $11,654 25 ]$11,654 $16,4191 $19,495 $8,578 26 $0.738 218,776 $161,473 |$19,800]$181,273 $ 58818/$77,810 |$16,323 |$16,462)$169,414]|]$11,859 26 |$11,859 $ 16,4621$21,878 $6,444 27 $0.745 220,964}|$164,673 |$19,800 |$184,473 $59,701 |$79,630 |$16,568 |$16,506 |$172,405 $12,068 27 |$12,068 $16,506]$22,096 $6,478 28 $0.740 223,174}|$165,221|$19,800]$185,021 $60,596]$81,4941 $16,817 |$14,010 |$172,917 $12,104 28 |$12,104 $14,010]$22,317 $3,797 29 $0.748 225,406 $ 168,5531$19,800]$188,353 $61,505]$83,402]$17,069 |$14,055]$176,031 $12,322 291%12322),)$14055]$22541 $3,837 30 $0.804 227,660 $183,092}$ 19,800]}$202892}|$ 62,428}$85,357]$17,325 |$24,509]$189,619 $13,273 30 |$13,273 $24,509 1$22,766 $15,017 31 $0.811 229,936 $186,563]$19,800]$206,363 $63,364)$87,358 |$17,585 |$24,556 |$192,863 $13,500 31]$%13,500,]$24556]$25,293 $12,763 32]71%0.819 232,236 $190,105]$19,800]$209,905 $ 64315]7$89,408 |$17,848 |$24,603 |$196,173 $13,732 32}$13,732]|$24,6031$25,546 $12,789 33 $0.810 234,558 $189,883]$ 19,800|$209,683]}$ 65,2791$91,506 |$18,116]$21,063 |$195,965 $13,718 33 |$13,718 $21,063 |$25,801 $8,980 34]718 0.817 236,904 ||$193,573}$19,800]$213,373 $66,259]$93,656 |$18,388 |$21,112]$199,414 $13,959 34]$13,959 $21,112}$26,059 $9,011 35 $0.766 239,273 $183,254]$ 19,800|$203,054]|$ 67,252|$95,8571 $18,664 |$7,997 |$189,770 $13,284 35 |$13,284]|$7,997 |$26,320 $6,039) 36 $0.774 241,665 $187,098]$ 19,800|$206,898 $68,261)$98111]$18,944 |$8,047 |$193,363 $13,535 36 |$13,535 $8,047 |$29,000 $(7,418) 37 $0.783 244,082 |[$191,022]$19,800}$210,822}|$69,285 |$100,420 |$19,228 |$8,097 |$197,030 $13,792 37 |$13,792]|$8,097 |$29,290 $(7,400)38 $0.777 246,523 $191,563]$19,800]$211,363 $70,324 |$102,784]$19,516 |§$4,911 |$197,536 $13,827 38 |$13,827 ||$4911 |$29,583 $(10,844) 39 $0.786 248,988 $195,651 1$ 19,800]$215,451 $71,379 |$105,205 |$19,809 |$4,963 |$201,356 $14,095 39 |$14,095 $4,963 |$29,879 $(10,821) 40 $0.894 251,478 $224,801 }$ 19,800|$244,601 $72,4501 $107,685 |$20,106 |$ 28,358|$228,599 $16,002 401]$16,002}{$ 28,358]$30,177 $14,182 Pedro Bay Village Council TABLE B Power Generation and Consumption Summary N °va 1 Annual Line Total Assumed Total School School Year Cn,noe Loss and Nonschool NonSchool Generated Revenue @eneratedUnbilledBilledCollectableKwH/Year |$.33 per KwHKwH/Year KwH/Year KwH/Year ??P 1 223,000 22,300 200,700 170,595 60,000 |$19,800 2 225,230 22,523 202,707 172,301 60,000 |$19,800 3 227,482 22,748 204,734 174,024 60,000 |$19,800 f:a 4 229,757 22,976 206,781 175,764 60,000 |$19,800 5 232,055 23,205 208,849 177,522 60,000 |$19,800 6 234,375 23,438 210,938 179,297 60,000 |$19,800 I: 7 236,719 23,672 213,047 181,090 60,000 |$19,800 8 239,086 23,909 215,178 182,901 60,000 |$19,800 Annual Line Loss/Unbilled 9 241,477 24,148 217,329 184,730 60,000 |$19,800 ws a aaa 10 243,892 24,389 219,503 186,577 60,000 |$19,800 11 246,331 24,633 221,698 188,443 60,000 |$19,800 12 248,794 24,879 223,915 190,327 60,000 |$19,800 13 251,282 25,128 226,154 192,231 60,000 |$19,800 14 253,795 25,379 228,415 194,153 60,000 |$19,800 Annual 15 256,333 25,633 230,699 196,095 60,000 |$19,800 zz 16 258,896 25,890 233,006 198,055 60,000 |$19,800 17 261,485 26,149 235,337 200,036 60,000 |$19,800 18 264,100 26,410 237,690 202,036 60,000 |$19,800 19 266,741 26,674 240,067 204,057 60,000 |$19,800 20 269,408 26,941 242,467 206,097 60,000 |$19,800 21 272,102 27,210 244,892 208,158 _60,000 |$19,800 22 274,823 27,482 247,341 210,240 60,000 |$19,800 23 277,572 27,757 249,814 212,342 60,000 |$19,800 24 280,347 28,035 252,313 214,466 60,000 |$19,800 25 283,151 28,315 254,836 216,610 60,000 |$19,800 26 285,982 28,598 257,384 218,776 60,000 |$19,800 27 288,842 28,884 259,958 220,964 60,000 |$19,800 28 291,731 29,173 262,558 223,174 60,000 |$19,800 29 294,648 29,465 265,183 225,406 60,000 |$19,800 30 297,594 29,759 267,835 227,660 60,000 |$19,800 31 300,570 30,057 270,513 229,936 60,000 |$19,800 32 303,576 30,358 273,218 232,236 60,000 |$19,800 33 306,612 30,661 275,951 234,558 60,000 |$19,800 34 309,678 30,968 278,710 236,904 60,000 |$19,800 35 312,775 31,277 281,497 239,273 60,000 |$19,800 36 315,902 31,590 284,312 241,665 60,000 |$19,800 37 319,061 31,906 287,155 244,082 60,000 |$19,800 38 322,252 32,225 290,027 246,523 60,000 |$19,800 39 325,475 32,547 292,927 248,988 |60,000 |$19,800 40 328,729 32,873 295,856 251,478 60,000 |$49,800 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 22 of 37 TABLE C ANNUAL "O and M"SCHEDULE Rate Per Fringe Total Hourly|. Position Hout Rate Cost Duties Operator 1 -Primary $23.75 19.4%$28.36 |{Maintenance &Primary Operations Bookkeeper $14.75 19.4%$17.61}{Payroll,Accounts Payable Utility Manager $26.15 19.4%$31.22 |{Manager,Denali Commission Reporting Annual O&M Costs: Labor Costs Hours/Hourly Monthly Labor:Month Cost Cost Annual Costs Operating Labor Operator 1 41.59 $28.36 $1,179.48 Subtotal Operating Labor 41.59 $1,179.48 $14,154 Administrative Labor Bookkeeper 8 $17.61]}$140.89 Utility Manager 20 $31.221 ]$624.46 Subtotal Administrative Labor 28 $765.35 $9,184 Materials: Materials &Equipment $5,000 Top End Overhaul $6,000 Outside Labor $1,200 Other Costs: Training (Lump Sum)$1,000 Annual Audit (Lump Sum)$2,000 Insurance $2,000 Total Annual O&M Costs $40,538 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 23 of 37 TABLE D 40 YEAR "0 and M"SCHEDULE 'Annual O&M Total Billed Assumed Non Non SchoolearExNonSchoolCollectablO&M SurchargebensesKwH/Year onectable $/KwHKwH/Year 1 $40,538 200,700 170,595 $0.238 2 $41,146 202,707 172,301 $0.239 3 $41,763 204,734 174,024 $0.240 4 $42,390 206,781 175,764 $0.241 5 $43,026 208,849 177,522 $0.242 6 $43,671 210,938 179,297 $0.244 7 $44,326 213,047 181,090 $0.245 8 $44,991 215,178 182,901 $0.246 9 $45,666 217,329 184,730 $0.247 10 $46,351 219,503 186,577 $0.248 11 $47,046 221,698 188,443 $0.250 12 $47,752 223,915 190,327 $0.251 13 $48,468 226,154 192,231 $0.252 14 $49,195 228,415 194,153 $0.253 15 $49,933 230,699 196,095 $0.255 16 $50,682 233,006 198,055 $0.256 17 $51,442 235,337 200,036 $0.257 18 $52,214 237,690 202,036 $0.258 19 $52,997 240,067 204,057 $0.260 20 $53,792 242,467 206,097 $0.261 21 $54,599 244,892 208,158 $0.262 22 $55,418 247,341 210,240 $0.264 23 $56,249 249,814 212,342 $0.265 24 $57,093 252,313 214,466 $0.266 25 $57,949 254,836 216,610 $0.268 26 $58,818 257,384 218,776 $0.269 27 $59,701 259,958 220,964 $0.270 28 $60,596 262,558 223,174 $0.272 29 $61,505 265,183 225,406 $0.273 30 $62,428 267,835 227,660 $0.274 31 $63,364 270,513 229,936 $0.276 32 $64,315 273,218 232,236 $0.277 33 $65,279 275,951 234,558 $0.278 34 $66,259 278,710 236,904 $0.280 35 $67,252 281,497 239,273 $0.281 36 $68,261 284,312 241,665 $0.282 37 $69,285 287,155 244,082 $0.284 38 $70,324 290,027 246,523 $0.285 39 $71,379 292,927 248,988 $0.287 40 $72,450 295,856 251,478 $0.288 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 24 of 37 TABLE E ANNUAL FUEL COSTS -BWwH ProducedperGalloa{ .Total Non Non School Total Non Assumed Y Estimated School Total Fuel School Non School Non School School Total FuelearFuelCostperFuelCostAnnualFuelGallonGeneratedUsage@AnnualFuelCollectable$/KwH Costs CostsKwH/Year |114 KwH/Gallon|Costs KwH/Year 1 $2.17 223,000 15,929 $34,565 170,595 |$0.203 $9,300 $43,865 2 $2.20 225,230 16,088 $35,434 172,301 |$0.206 $9,440 $44,874 3 $2.24 227,482 16,249 $=.36,325 174,024 |$0.209 $9,581 $45,907 4 $2.27 229,757 16,411 $37,239 175,764 |$0.212 $9,725 $46,964 5 $2.30 232,055 16,575 $38,176 177,522 |$0.215 $9,871 $48,046 6 $2.34 234,375 16,741 $39,136 179,297 |$0.218 $10,019 $49,154 7 $2.37 236,719 16,908 $40,120 181,090 |$0.222 $10,169 $50,289 8 $2.41 239,086 17,078 $©41,129 182,901 |$0.225 $=10,322 $51,451 9 $2.44 241,477 17,248 $42,163 184,730 |$0.228 $10,476 $52,640 10 $2.48 243,892 17,421 $43,224 186,577 |$0.232 $10,634)1 $53,857 11 $2.52 246,331 17,595 $44,311 188,443 |$0.235 $10,793 $55,104 12 $2.56 248,794 17,771 $45,425 190,327 |$0.239 $10,955 $56,380 13 $2.59 251,282 17,949 $46,568 192,231 |$0.242 $11,119 $57,687 14 $2.63 253,795 18,128 $47,739 194,153 |$0.246 $11,286 $59,025 15 $2.67 256,333 18,309 $48,940 196,095 |$0.250 $11,455 $60,395 16 $2.71 298,896 18,493 $50,170 198,055 |$0.253 $11,627 $61,798 17 $2.75 261,485 18,678 $51,432 200,036 |$0.257 $11,802 $63,234 18 $2.80 264,100 18,864 $52,726 202,036 |$0.261 $=11,979 $64,704 19 $2.84 266,741 19,053 $54,052 204,057 |$0.265 $©:12,158 $66,210 20 $2.88 269,408 19,243 $655,411 206,097 |$0.269 $=12,341 $67,752 21 $2.92 272,102 19,436 $56,805 208,158 |$0.273 $12,526 $69,331 22 $2.97 274,823 19,630 $58,233 210,240 |$0.277 $=12,714 $70,947 23 $3.01 277,572 19,827 $=59,698 212,342 |$0.281 $12,904)|$72,602 24 $3.06 280,347 20,025 $61,199 214,466 |$0.285 $=13,098 $74,297 25 $3.10 283,151 20,225 $62,739 216,610 |$0.290 $13,294]|$76,033 26 $3.15 285,982 20,427 $64,316 218,776 |$0.294 $13,494)|$77,810 27 $3.20 288,842 20,632 $65,934 220,964 |$0.298 $13,696 $79,630 28 $3.24 291,731 20,838 $67,592 223,174 |$0.303 $©13,902 $81,494 29 $3.29 294,648 21,046 $69,292 225,406 |$0.307 $©14,110 $83,402 30 $3.34 297,594 21,257 $=71,035 227,660 |$0.312 $=14,322 $85,357 31 $3.39 300,570 21,469 $=72,821 229,936 |$0.317 $14,537 $87,358 32 $3.44 303,576 21,684 ||$74,653 232,236 |$0.321 $14,755 $89,408 33 $3.49 306,612 21,901 $©76,530 234,558 |$0.326 $14,976 $91,506 34 $3.55 309,678 22,120 $78,455 236,904 |$0.331 $15,201 $93,656 35 $3.60 312,775 22,341 $80,428 239,273 |$0.336 $15,429 $95,857 36 $3.65 315,902 22,564 $82,451 241,665 |$0.341 $15,660 $698,111 37 $3.71 319,061 22,790 $84,525 |244,082 |$0.346 $15,895 $100,420 38 $3.76 322,252 23,018 $86,650 246,523 |$0.351 $=16,133 $102,784 39 $3.82 325,475 23,248 $88,830 248,988 |$0.357 $16,375 $105,205 40 $3.88 328,729 23,481 $691,064 251,478 |$0.362 $§©616,621 $107,685 Pedro Bay Village Council 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 $5,000 Office Expenses $3,000 Insurance §1,750 Operating Expenses $1,500 Other $- 'Total Annual O&M Costs $11,250 Annual R&R Depreciation Expense: Depreciation-Other Year Depreciation R&R Assets Total Annual Depreciation 1 $2,000 $2,000 2 $2,030 $2,030 3 $2,060 $2,060 4 $2,091 $2,091 5 $1,886 |$2,123 $4,009 6 $1,886 |$2,155 $4,040 7 $1,886 |$2,187 $4,073 8 I$-_|[$2,220 $2,220 9 $-|$2,293 $2,293 10 |$10,558 |$2,287 $12,845 11 +$10,558 |$2,321 $12,879 12 |$10,558 |$2,356 $12,914 13,|$7,615 |$2,391 $10,006 14 |$7,615 |$2,427 $10,042 15 |$%2,974 |$2,464 $5,437 16 |$2,974 |$2,500 $5,474 17 |$2,974 |$2,538 $5,912 18 |$785 |$2,976 $3,361 19 |$785 |$2,615 $16,088 20 |$13,473 |$2,654 $16,127 21 |$13,473 |$2,694 $16,167 22 1 $13,473 |$2,734 $16,207 23 |$11,642 |$2,775 $14,417 24 |$11,642 |$2,817 $14,458 25 |$13,560 |$2,859 $16,419 26 {$13,560 |$2,902 $16,462 27 |$13,560 |$2,945 $16,506 28 |$11,020 |$2,990 $14,010 29 |$11,020 |$3,034 $14,055 30 |%$21,430 |$3,080 $24,509 31 13%21,430 |$3,126 $24,996 32 |$21,430 |$3,173 $24,603 33 {$17,843 |$3,221 $21,063 34 |$17,843 |$3,269 $21,112 35 |$4,679 |$3,318 $7,997 36 «|S 4,679 |$3,368 $8,047 37 {$4,679 |$3,418 $8,097 38 49 1,441 1 $3,470 $4,911 39 |$1,441 |$3,522 $4,963 40 |$24,783 |$3,574 $28,358 Pedro Bay Village Council 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 Inflated Activity R&R Activity Value Value R&R Activities:Activity Year5RepairRamp/Boardwalks $889 Replace Values/Gauges 146 Repair Ramp/Boardwalk $5/10/15/25/30/35 3 Repair Siding/Overhead Door 1,145 [Replace Boardwalks s 20/40 20 Upgrade Floors/Walls/Ceilings 1,126 Replace Ramps /Staire $40 20 Mechanical Upgrade 353 Pump Repl.$10/20/30/40 3 Replace Batteries/Alternators/Ete 1,100 i Replace Fuel Tank $a)20 Repair Ballasts/Lenses 571 $5,657 |Replace Values/Gauges $$/18/25/35 3 10 Repair Ramp/Boardwalks $889 Refurbish Electric Systems $10/20/30/40 3 Pump Replacement 517 Replace Electrical Systems $20/40 20 Refurbish Electric Systems 229 Floor/Roof Repair $s 10/20/30/40 3 Floor/Roof Repair 578 Upgrade Floor/Roofs $20/40 10 Repair Siding/Overhead Door 1,145 Repair Siding /Overhead Door $5/10/15/25/30/35 3 Repair Roof 524 Replace Siding/I ion/Windows $0 2 Change Door Hardware 292 Replace Piles /Bracings $20/40 10 Upgrade Floors/Walls/Ceilings 1,126 Repair Roof $10/20/35 3 Mechanical Upgrade 353 Replace Roofing/Insulaci $15/35 10 Repair Ducts/Grilles 708 Change Door Hi $s 10/30 3 Repair Fire Supression System 1,433 'Window Upgrade $2 3 Replace Breakers/Fuses 580 |Upgrade Floors/Walls /Ceilings $5/10/15/25/30/35 3 Repair Ballasts/Lenses 571 }Replace Window/Doors $20/40 3 Overhaul Genset/Controls 32,583 $47,483 }}Mechanical Upgrade $5/10/15/25/30/35 3 15 Repair Ramp/Boardwalks $889 Repl Mechanical S:$40 20 Replace Values/Gauges 146 Repair Ducts/Grilles $10/30 3 Repair Siding/Overhead Door 1,145 Refurbish Ducts /Grilles $20/40 10 Upgrade Floors/Walls/Ceilings 1,126 Repair Fire Supression System $10/30 10 Mechanical Upgrade 353 Replace Fire Sup System $4 20 Replace Batteries/Alternators/Ete 1,100 Replace Breakers/Fuses $10/30 3 Repair Ballasts /Lenses 571 |Repair Ballasts /Lenses $5/10/15/25/30/35 3 Replace Roofing/Insulation 5,043,$12,777 |Replace Panels /Switches /Fixtures/Alarms $20/0 pO 20 Pump Replacement $517 Overhaul Genset/Controls $10/30 5 '{Refucbish Electric Systems 229 Replace Gensets/Feeders &Cond $20/40 6 Floor/Roof Repair 578 Replace Batteries/A /Etc $5/15/25/35 3 Replace Piles/Bracings 3,270 Replace RFP Panels $20/40 10 Repair Roof 524 Replace Cond /Transfc $40 20 Window Upgrade 318 Replace Switchgear/Controls $40 20 Replace Boardwalks 3,295 || Replace Electrical Systems 2,500 (Note:O&M and R&R Cost Esti losed cost esti Upgrade Floor/Roofs 2,522 Replace Window/Doors 1,975 Replace RFP Panels 4,078 Refurbish Ducts/Gniles 3,600 Replace Panels/Switches/Fixtures/Alarms 12,409 Replace Gensets/Feeders &Conductors 81,417 $155,560 25 Repair Ramp/Boardwaiks $889 Replace Values/Gauges 146 Repair Siding/Overhead Door 1,145 Upgrade Floors/Walls/Ceilings 1,126 Mechanical Upgrade 353 Replace Batteries/Alternators/Etc 1,100 Repair Ballasts/Lenses 571 $7,620 30 Repair Ramp/Boardwalks $889 Pump Replacement 517 Refurbish Electric Systems 229 Floor/Roof Repait 578 Repair Siding/Overhead Door 1,145 Change Door Hardware 292 Upgrade Floors/Walls/Ceilings 1,126 Mechanical Upgrade 353 Repair Ducts/Grilles 708 Repair Fire Supression System 1,433 Replace Breakers/Fuses 580 Repair Ballasts/Lenses 571 Overhaul Genset/Controls 32,583 $63,145 35 Repair Ramp/Boardwalks $889 Replace Values/Gauges 146 Repair Siding/Overhead Door 1,145 Repaic Roof 524 Upgrade Floors/Walls/Ceilings 1,126 Mechanical Upgrade 353 Replace Batteries/Alternators/Etc 1,100 Repair Ballasts/Lenses 571 Replace Roofing/Insulati 5,043 $18,079 |] 40 Pump Replacement $517 Refurbish Electric Systems 229 Floor/Roof Repair 578 Replace Piles/Beacings 3,270 Replace Boardwalks 3,295 Replace Ramps/Stairs 8,263 Replace Fuel Tank 12,000 Replace Electrical Systems 2,500 Upgrade Floor/Roofs 2,522 Replace Siding/Insulation/Windows 9,212 Replace Window/Doors 1,975 Replace RFP Panels 4,078 Repl Mechanical Sy 16,067 Refurbish Ducts/Grilles 3,600 Replace Fire Supression System 9,500 Replace Panels/Switches/Fixtures/Alarms 12,409 Replace Conductors/Transformers 11,533 Replace Gensets/Feeders &Conductors 81,417 Replace Switchgear/Controls 13,317 $350,795 Pedro Bay Village Council 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 Non Schoo! Year Beg.of Annual Renewals/Interest End of Non School ReRSonehargeYearDepositsReplacementsEamungs(Net Year Collectable $/KwHBalance"P "P of Fees)Balance KwH/Year 1 $:$8,530 $-|$8,530 170,595 $0.050 2 $8,530 1 $8,615 $256]$17,401 172,301 $0.050 3 $17,401 |$8,701 $522 1$26,624 174,024 $0.050 4 $26,624 |$8,788 $799 1$36,211 175,764 $0.050 5 $36,211 |$8,876 |$5,657 |$917 |$40,346 177,522 $0.050 6 $40,346 |$10,758 $1,210 |$52,314 179,297 $0.060 7 $52,314 |$10,865 $1,569 |$64,749 181,090 $0.060 8 $64,749 |$10,974 $1,942 |$77,666 182,901 $0.060 9 $77,666 |$11,084 $2,330 |$91,079 184,730 $0.060 10 $91,079 |$11,195 |$47,483 |$1,308 |$56,099 186,577 $0.060 11 $56,099 |$13,191 $1,683 |$70,973 188,443 $0.070 12 $70,973 |$13,323 $2,129 |$86,425 190,327 $0.070 13 $86,425 |$13,456 $2,593 |$102,474 192,231 $0.070 14 $102,474]$13,591 $3,074 |$119,139 194,153 $0.070 15 $119,139 |$13,727 |$12,777 |$3,191]$123,279 196,095 $0.070 16 $123,279 |$15,844 $3,698}$142,822 198,055 $0.080 17 $142,822 1$16,003 $4,285 |$163,109 200,036 $0.080 18 $163,109}$16,163 $4,893 |$184,165 202,036 $0.080 19 $184,165 |$16,325 $3,683 |$204,173 204,057 $0.080 20 $204,173 |$16,488 |$155,560 |$-|$65,101 206,097 $0.080 21 $65,101 |$18,734 $1,302 |$85,137 208,158 $0.090 22 $85,137 |$18,922 $1,703 |$105,761 210,240 $0.090 23 $ 105,761|$19,111 $2,115]$126,987 212,342 $0.090 24 $126,987 |$19,302 $2,5401$148,829 214,466 $0.090 25 $148,829 |$19,495 |$7,620 |$2,824)$163,529 216,610 $0.090 26 $163,529 |$21,878 $3,271]$188,677 218,776 $0.100 27 $188,677|$22,096 $3,774}$214,547 220,964 $0.100 28 $214,547 |$22,317 $4,291]$241,155 223,174 $0.100 29 $241,155 |$22,541 $4,823 |}$268,519 225,406 $0.100 30 $268,519 |$22,766 |$63,145 |$4,107 |$232,247 227,660 $0.100 31 $232,247 |$25,293 $4,645]$262,185 229,936 $0.110 32 $262,185 |$25,546 $5,244 1$292,974 232,236 $0.110 33 $292,974]§$25,801 $5,859 1 $324,635 234,558 $0.110 34 $324,635 |$26,059 $6,493 |$357,187 236,904 $0.110 35 $357,187 |$26,320 |$18,079 |§6,782}$372,210 239,273 $0.110 36 $ 372,210|$29,000 $7,444 |$408,654 241,665 $0.120 37 $408,654]§$29,290 $8,173 |$446,117 244,082 $0.120 38 $446,117|$29,583 $8,922]$484,622 246,523 $0.120 39 $484,622 |$29,879 $9,692 |$524,193 248,988 $0.120 40 $524,193]4$30,177 |$350,795 |$-|$203,576 251,478 $0.120 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 28 of 37 Inflation Rate : Reinvestment Rate : Invested Escrow Fees:[[:- Initial KwH Collectable :|: Initial Cost per KwH : 5 year step cost increase :|' FINANCIAL TABLES -BULK FUEL STORAGE Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 29 of 37 TABLE I Summary of Facility Expenses to Participants Pedro Bay Village Council NA NA y O&M R&R Total O&M R&R Total O&M R&R Totalear Annual $$Per Annual $$Per Total Total Per Annual $$Per Annual $$Per Total Total Per Annual $$Per Annual $$Per Total Total Per Payments Gallon Payments Gallon Payments Gallon Payments Gallon Payments Gallon Payments Gallon Payments Gallon Payments Gallon _|Payments Gallon 1 $13,191 |$0.239]$5,525|$0.100)$18,716/$0.339 $:$:$:$:$-|$:$-|$-1$-|§-|$-4$- 2 $13,389 |$0.241]$5,730 |$0.103]$19,4119)$0.344 $:$-$:$:$-|$§:$-|$-{$-|$§-1$-{|$- 3 $ 13,590|$0.2431 $5,943 |$0.106]$19,532}$034941 $-$:$:$:$-|$:$-|$-|$-|$-1$-|$: 4 $13,794)$0.2457 §$6,163 |$0.109]$19,957]$0.354 $-$:$:$:$-|$:$-|$-|$-|$-|$-|$- 5 $14,000!$0.247/§6,392}$O113]$20392|$0.359 $:$:$:$s :$-|$-$-|$-|$-|$-|$-1§- 6 $14,210;$0.249]$6629|$0.116]$20,839)$0.364]1]$-$:$:$:$-|$:$-|$-|$-|$-|$-1$- 7 $14,424|$0251]$6875/$0.119]$21,298|$0.370 $:$:$:$:$-|$:$-|$-|$-1$-|$-4$ 8 $14,640/$0.2533 $7,130 |$0.123]$21,770 |$0.376 $-$:$:$:$-|$:$-|$-|[$-|§-|$-1$- 9 $ 14860|$0.255]$7,395 |$0.127]$22,254)$0.381 $-$:$:$:$-|$:$-|$-|$-|$-|$-|$- 10 |$15,082|$0.257]$7,669)$0.130]$22,752|$0.387 $:$:$:$:$-|$:$-|$-|$-i$-{$-($- 11 $ 15,309|$0259/$7,954)$0.134]$23,262|$0.393 $-$:$-$:$-|$:$-|$-|$-|$-1$-|$. 12 |$15,538 |$0.261)$8,249|$0.138]$23,787 |$0.399 $:$:$-$:$-|$:$-|$-{$-[§-[$-|$- 13 |$15,771;$0.2634 $8555|$0.143]$24,327)$0.405 $:$:$:$:$-|$°$-|$-1$-|$-|$-|$§- 14 |$16,008|$0.265|$8873|$0147|$24881)$0.412 $:$:$:$:$-|$:$-|$-|$-|$-{|$-$. 15 |[$16,248|$0.2671$9,202;$0.1514 $25,450)$0.418 $-$:$-$:$-|$:$-{$-|$-|$§-|$§-{1$- 16 {$16,492!$0269}$9,544)$0.156]$26,036;$0.425 $-$:$:$-$-|$:$-l$-|$-|$-|$-|$- 17 |$16,739;$O271]$9,899]$ 0160|$26,638/|$0.432 $-$:$:$:$-|$§:$-[$-|%-|$§-{$-|$: 18 |$16,990|$0.274]$10,266|$0165]$27,256|$0.439 $-$:$-$-$-|$:$-|$-|$-{$-{$§-{$- 19 |$17,245|$0276]$10,647|$06.170|$27,893 |$0.446 $:$:$:$:$-{$:$-|$-|$-|§-|$-1$- 20 ]$17,504)$0.278}$11,043)$0.175]$28,547)$0.453 $-$:$-$:$-{$:$-|$-|$§-($-|$-1§. 21 $ 17,766|$0280}$11,453)$0.181]$29,219|$0.461 $-$:$:$:$-($:$-|$-{$-|$-[$-[$- 22 |$18033 |$0.282]$11,879|$0.186]$29,911|$0.468 $-$:$:$:$-1$:$-|$-{§-|$-|$-|$- 23 $$18303 |$0.285|$12,320}$0.192]$30,623;$0.476 $-$:$:$:$-1$:$-|$-|$-|$-|$-|$- 24 {$18578:$0287]$12,778|$0.197]$31,356/$0.484]|$-$:$:$:$-|$:$-|$-|$-|$-{$-1$§- 25 1$18857|$0.289}$13,252!$0.203]$32,109|$0.493 $:$:$:$:$-|$:$-|$-{$-|$-{$-1$- 26 |$19,139}$0.2921$13,745}$0209}$32,884|$0.501 $-$:$:$:$-|$:$-{|§-|$-1$-|$-{1$- 27 |$19,427|$0.294]$14,256/$0216]$33,682|$0.510|}$:$:$.$:$-|$:$-1$-|$-i$-|$-{$- 28 |$19,718!$0.296]$14,785|$0.222|$34503|$0.518 $:$-$:$:$-|$:$-|$-{$-($-($-|$- 29 1$20,014|$0.299}$15,335|$0.229]$35,349/$0.527 $:$:$:$:$-|$:§-|$-{$-|$-{$-|$. 30 |$20314/$0.308]$15,905)$0.236]$36219|$0.537 $:$:$:$:$-|[$:$-|$-{$-|$-|$-|$- 31 $ 20,619|$0303]$16,496]$0.243]$37,115)$0.546 $:$:$:$:$-|$§:§-|$-{$§-|$-|$§-{$- 32 1$20,928;$0.306]$17,109/$0250}$38037;$0.556 $:$:$:$:$-|$:$-|$-{|$-|$-|$-1$- 33 1 $21,242/$0.308}$17,745|$0.258]$38,987|$0.566 $:$:$:$:$-|$§-$-|$-{$-|$-{$-1$- 34 1|$21,560|$0.311]$18,405|$0.265/$39,966|$0.576 $:$:$-$:$-|$:$-|$-|$-|$§-|$-{$- 35 |$21,884!$03131 $19,089)$0273]$40,973 |$0.586 $-$-$-$:$-|$:$-|$-|$-|$-|$-{$- 36 |$22,2121$03167 $19,799/$0.281]$42,011/$0.597 $:$:$:$:$-1§-$-|$-{$-{$-1$-1$- 37 |$22545|$0.318}$20,536|$0.290]$43,081/$0.608 $:$-$:$:$-|$§:is -|$-|$-{$-|5 -{$- 38 |$22,883|$0321]$21,299|$0.299]$44,1831 $0.619 $:$:$:$:$-{$:$-|$-{$-|$-{$-1$- 39 |$23227)$0323]$22,091;$0307|$45,318;$0.631 $:$.$:$:$-|$§:$-|$-{$-|$-1$-{$- 40 |$23,5751 $0.326 |$22,913 |§0317 |$46,4881$064317§-|$$:$-$-1$-4$-1$-1$-1$-1$-1$- Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 30 of 37 TABLE J PARTICIPANT ALLOCATION Council NA NA Total Primary Capacity (Net)Gallons 58,140 oO}0 58,140) Percentage 100.0%0.0%0.0%100% Initial Throughput Gallons 55,250 0 0 55,250 Volumes Percentage 100.0%0.0%0.0%100% %Share of O&M and R&R on Common Assets 100.0%0.0%0.0%100% (based upon Primary Capacity)oe TABLE K ANNUAL O&M COSTS Annual O&M Costs Council NA NA Total Annual O&M Expenses (per HMS cost estimate)$7,566 $-$-$7,566 Common Power Costs (estimated based upon current)|$100 $-$-$100 Insurance (based on $.10/gallon)$5,525 ||$-$-$5,525 $13,191 ||$-$-$13,191 Variances from HMS Cost Estimate: Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 31 of 37 Inflation Rate TABLE L 40 YEAR "O and M"CASHFLOW Annual O&M Expense Assumed Throughput (Gallons)Per Gallon O&M Payment Council Year Council NA NA Total NA NA Council NA NA Diesel Gasoline Total 1 $13,191 |§$$13,191 48,500 6,750 55,250 -$0.239 |§-4s - 2 $13,389 |$$$13,389 48,864 6,767 55,631 :$0.241 /$-I$> 3 $13,590 |$$$13,590 49,230 6,784 56,014 -$0.243 |$-$- 4 $13,794 |$$$13,794 49,599 6,801 56,400 :$0.245 1$-|$: 5 $14,000 |$$$14,000 49,971 6,818 56,789 -$0.247 |$-$- 6 $14,210 |$$$14,210 50,346 6,835 57,181 -$0.249 |§$-$- 7 $14,4241 §3 §14,424 50,724 6,852 57,516 2 $0.251 |$-_1$- 8 $14,640 |$$$14,640 51,104 6,869 57,973 -$0.253 |$-$- 9 $14,860 |$$$14,860 51,488 6,886 58,374 :$0.255 |$>t$: 10 $15,082 |$$$15,082 51,874 6,903 58,777 -$0.257 |$-$- 11 $15,309 |$$$15,309 52,263 6,921 59,183 -$0.259 |$-$- 12 $15,538 |$$$15,538 52,655 6,938 59,593 -$0.261 |$-$- 13 $15,771 |$$$15,771 53,050 6,955 60,005 :$0.263 |$-$- 14 $16,008 |$$$16,008 53,448 6,973 60,420 :7 0.265 |$-I$2 15 $16,248 |$$$16,248 53,848 6,990 60,838 -$0.267 |$-$- 16 $16,492 |$$$16,492 54,252 7,008 61,260 -$0.269 |$-$- 17 $16,739 |§§$16,739 54,659 7,025 61,684 $0271 1$-13 : 18 $16,990 |$$$16,990 55,069 7,043 62,112 -$0.2741 §-$- 19 $17,245 |$$$17,245 55,482 7,060 62,542 -$0.276 |$-$- 20 $17,504 |$$$17,504 55,898 7,078 62,976 -$0.278 |$-$- 21 $17,766 |$$$17,766 56,317 7,096 63,413 -$0.280 |$-$. 22 $18,033 |$$$18,033 56,740 7,113 63,853 -$0.282 |$-$- 23 $18,303 |$$$18,303 57,165 7,131 64,297 -$0.285 |$-$. 24 $18,578 |$$$18,578 57,594 7,149 64,743 -$0.287 |$-$- 25 $18,857 |$$$18,857 58,026 7,167 65,193 -$0.289 |$-$- 26 $19,139 |$$$19,139 58,461 7,185 65,646 -$0.292 |$-$- 27 $19,427 |$$$19,427 58,900 7,203 66,102 -$0.294 |$-$- 28 $19,718 |$$$19,718 59,341 7,221 66,562 -$0.296 |$-$- 29 $20,014 |$$$20,014 59,787 7,239 67,025 -§0.299 |$-$- 30 $20,314 |$$$20,314 60,235 7,257 67,492 -$0.301 |$-[$- 31 $20,619 |$$$20,619 60,687 7,275 67,962 -§0.303 |$-$- 32 $20,928 |$$$20,928 61,142 7,293 68,435 -$0.306 |$-I$- 33 $21,242 |§$$$21,242 61,600 7,311 68,912 -$0.308 |$-|$ 34 $21,560 |$$$21,560 62,062 7,330 69,392 -$0.311 |$:$- 35 $21,884 |$$$21,884 62,528 7,348 69,876 :$0.313 |$:$- 36 $22,212 |$$$22,212 62,997 7,366 70,363 -$0.316 |§-$- 37 $22,545 |$$$22,545 63,469 7,385 70,854 -$0.318 |$-$- 38 $22,883 |$$$22,883 63,945 7,403 71,349 :$0.321 |$-$- 39 $23,227 |$$$23,227 64,425 7,422 71,847 -$0.323 |$-$- 40 $23,575 |$$$23,575 64,908 7,440 72,348 -$0.326 |$-$- Pedro Bay Village Council 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 Council NA NA Activity R&R Activity Value Value Inflated Total | 5 Electrical Upgrade $985 |1 $1,045 ||$1,045 41 $1,045 |]$-$- 10 Fence/Gates Upgrade $3,434 1)$3,927 $3,927 ||$-$- Repair Pad 6,303 7,207 7,207 -- Pump Replacement 2,257 2,581 2,581 -- Valve Replacement 1,991 2,276 2,276 -- Repair Pipelines 2,332 2,667 2,667 -- Electrical Upgrade 985 1,126 1,126 -- Tank Inspection 3,250 3,716 ||$23,500 3,716 -- 15 Electrical Upgrade $985 ||$1,213 ||$1,213 ||$1,213 ||$-$- 20 Fence/Gates Replacement $13,898 |]$18,442 $18,442 |]$-$- Resurface Pad 6,428 8,529 8,529 -- Pump Replacement 2,257 2,995 2,995 -- Valve Replacement 1,991 2,641 2,641 -- Major Electrical 27,900 37,022 37,022 -- Replace Pipelines 12,990 17,237 17,237 -- Tank Inspection 3,250 4,313 ||$91,180 4,313 -- 25 Electrical Upgrade $985 |}$1,408 ||$1,408 f]$1,408 |]§-$- 30 Fence/Gates Upgrade $3,434 11 $5,289 $5,289 11 $-$- Repair Pad 6,303 9,707 9,707 -- Pump Replacement 2,257 3,476 3,476 -- Valve Replacement 1,991 3,065 3,065 -- Repair Pipeline 2,332 3,592 3,592 -- Electrical Upgrade 985 1,517 1,517 -- Tank Inspection 3,250 5,005 ||$31,651 5,005 -- 35 Electrical Upgrade $985 |t $1,634 ||$1,634 1]$1,634 ||$-$- 40 Resurface Pad $6,428 1]$11,487 $11,487 ||$-$- Fence/Gates Replacement 13,898 24,839 24,839 --Variances from HMS Cost Estimate: Foundation/Liner 76,723 137,120 137,120 --1 Replace Tanks -Reduced 50% Pump Replacement 2,257 4,034 4,034 --2 Replace Pipeline -Reduced 50% Valve Replacement 1,991 3,558 3,558 -- Major Electrical 27,900 49,863 49,863 -- Replace Pipelines 12,990 23,216 23,216 -- Replace Tanks 76,325 136,409 ||$390,527 136,409 -- $332,271 ||$542,157 ||$542,157 |]$542,157 11 $-$- Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 33 of 37 40 YEAR RENEWAL AND REPLACEMENT CASHFLOW TABLE N Council Inflation Rate :Initial Cost per gallon ($/gallon): Reinvestment Rate:20 Year R&R:f°Annual increase :[ Escrow Fees:[---20 Year Loan Proceeds:{°Council -_-nigal Throughput (gallons):J---NA NA __Initial Throughput (gallons):Initial Cost per gallon (§/gallon):}- Loan Rate:[°-NA Initial Throughput (gallons):Annual increase :|!Loan Tenn:[7 NA Initial Cost per gallon ($/gallon):|;Annual increase :[5 R &R Fund Balance Assumed Throughput (Gallons)Per Gallon Payment of Annual Deposit A Interest End ofYear|Pe Principal |Debs Service |_Renewals/Earnings (Net Year Council NA NA Council NA NABalanceCouncilNANATotalReceivedReplacements|Of Fees)Balance ek)-_|$5,525 |$$$5,525 $-|$-|$5,525 55,250 ::$0.100 |$$ 12445 5,525 |$5,730 |$$$5,730 $-|$11]$11,365 55,631 ::$0.103 |$$ 341s 11,365 |§5,943 |$$$5,943 $-[$2271 $17,535 56,014 --$0.106 |$$ 4 $17,535 |$6,163 |$$$6,163 $-|$3511$24,049 56,400 :-][S$0.109 |$$ 5 1}s 240491$6,392 |§$5 $6,392 $1,045 |$4601$29,855 56,789 :-|Ts 0.113 |$$6|13 29,855 1$6,629 |§$$$6,629 $-t$597|$37,081 57,181 ;-|I$0.116 |$$ 17 {1t$ 37,08t/1$6,875 |$$$6,875 $-|$742|$44,698 57,576 --|15 0.119 |$$8 |$44,698 |$7,130 |$$$7,130 $-1$8941 $52,722 57,973 --§0.123 |§$ rolls 52,722/$7,395 |$$$7395 $-1$1,054]$61,171 58,374 --|[s 0.127 |$$ 1107 {$61,171 |$7,669 |$$$7,669 $23,500 |$753 |$46,094 58,777 :-$0.130 1 $$ rar}ts 460041$7,954 |$$$7,954 $-T$922]$54,969 59,183 .-17$0.134]$$ ;12)1$54,969 |$8,249 |$$$8,249 $-|$1,099 |$64,318 59,593 ::$0.138 |$$ 137918 64,318 |$8,555 |$$4 8,555 $-|$1,286 |$74,159 60,005 --$0.143 1$$ 14)1$74,159 |$8,873 |$$$8,873 $-|$1,483 |$84,515 60,420 --$0.147 |$$ mis 64515/$9,202 |$$$9,202 $1,213 |$1,666]$94,170 60,838 --|[s 0.151 [$$ 16){$941701 $9,544 |$$$9,544 $-l$1,883]$105,598 61,260 --|Is 0.156 |$$ fi7|[$s 105,598 $9,899 |$$$9,899 $-I$2,112[$117,608 61,684 --|fs 0.160 |$$ 18 $117,608]$10,266 |$$$10,266 $-|$§2,352 |$130,227 62,112 --|18 0.165 |$$19|V$130,227]$ 10,647|$$$10,647 $-|$2,605 [$143,479 62,542 --|Ts 0.170 |$$ 201 {$14347915 11,043 1$$$11,043]$54,708 $91,180}$2,140[$120,190 62,976 --J1$0.175 |$$ 21)ts 1201901$11,4531 $$$11,453 $7,258 |$-{|$2,2591$126,644 63,413 --|[s 0.181 |§$22|[$126,644 1$11,879 |§$$11,879 $7,258 |$-|$2,388 |$133,652 63,853 --l Ts 0.186 |$$ |23.)|133,652]$12,320 |$$$12,320 $7,258 |$-|$2,528 |$141,242 64,297 ::$0.192 |$$ |24}[$141,242 1 $12,778 |$$$12,778 $7258 |$-|$2,680 |$149,441 64,743 --$0.197 |$$ Pasi fs 149,441 [$13,252]$$$13,252 $7,258 |$1,408 |$2,816]$156,843 65,193 --|{s 0.203 |$$ |26)1S 156,843 1 $13,745 |$$$13,745 $7,258 |$-|$2,992 |$166,322 65,646 ::$0.209 |$$ 27 §$166,322 |$14,256 |$$$14,256 $7,258 |$-|$3,181 |$176,500 66,102 --$0.216 |$$ros |Ts 17650015 14,785|$$$14,785 $7,258 |$-[$3,385]$187,413 66,562 :-l[s 0.222|$$29|$187,413 1$15,335 1$3 $15,335 $7,258 [$-[$3,603 |$199,093 67,025 --l{s 0.229 |$$30}$$199,093]$15,905 |$$$15,905 $7,258{$ 31,651|$3,204]$179,293 67,492 --l Ts 0.236 |$$ 31 $179,293 |$16,496 |$$$16,496 $-1$3,586]$199,375 67,962 --$0.243 |$$ 3211$19937518 _17,109/$$$17,109 $-V$3,987 |$220,472 68,435 --l Ts 0.250 |$$ 133 4%$220,4721$17,745 |$$$17,745 $-1$§4409 |$242,626 68,912 -:$0.258 |$$ 34 $242,626 |¢18,405 |$$$18,405 $-{$4853 |$265,884 69,392 --$0.265 |$$ 35113 26588415 19,089 |$$$19,089 $1,634[$5,285]$288,624 69,876 --|[5 0.273 |$$ 36 $288,624]$19,799 |$$$19,799 $-1$5,772 |$314,196 70,363 :-$0.281 |$$ 37 $314,196]$20,536 |$$$20,536 $-|$6,2841$341,016 70,854 -:$0.290 |$$ 38 $341,016]$21,299 |$$$21,299 $-|$6,820 |$369,135 71,349 :-|4s 0.299 |$$ 39}1$369,135]$22,091 |$$$22,091 $-|$7,383 [$398,609 71,847 :-{4s 0.307 |$$ 40 $398,609 1$22,913 |$$$22,913 $390,527]$-{$30,995 72,348 --$0.317 1$$ Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 34 of 37 TABLE N -PAGE 2RandRParticipantPaymentSchedules Council NA NA R &R Fund Balance R &R Fund Balance R &R Fund Balance Year|Bes of Annual |Principal |Renewalss |__Interest Year]Bea of Annual |Principal __|Renewals/|__Mnterest Year}Bf |Annual |Principal]Debe |Renewals/|interestBa.Deposit Received Debt Service Replacements ae Total pe Deposit Received Debt Service Replacements ae Total pt Deposit |Received Service |Replacements (Nero es)Total 1 4$§-$5,525 $-|§§,525 1 |$=$:$-|$1 1$-$:$-{$ 2 4$5,525 |$5,730 $1 [$14,365 218 :$:$-|$2 1$:$:$-|$ 3 TS 11,365 /$5,943 $227|$17,535 3.48 -$$-1$3 °4$-$-$-1$ 4 [$17,535 /$6,163 $351|$24,049 4 4s :$:$-|$4 i$:$$-|$ 5 }$24,0491 $6,392 1,045 |$460 [$29,855 5 |§:$$:$$5 I$-$:$-$-1$ 6 [$29,855|$6,629 $5971 $37,081 6 $s :$:$-1$6 I$-§:$-1$ 7 4$37,081;$6,875 $742)$44,698 7 4s :$:$-1$7 4$:$-$-1$ 8 [S$44,698)$7,130 $894 |$52,722 8 i$:$$-1$8 I$-$:$-1$ 9 [8 52,7221 $7,395 $1,054 |$61,171 9 4$:$$-|$9 4$:$:$-|$ 10 F$61,171 |§7,669 23,500 |$753 |$46,094 10 7$-$-$-$-1$10 1$-$-$.$-1$ 11 J$46,094 /$7,954 $922 ;$54,969 uid$-$:$-1$11:*49$-$-$-1$ 12 [$54,969 |$8,249 $1,099 |$64,318 12 [$:$:$-{$12 4$-$-$-1$ 13 [$64,318)$8,555 $1,286 |$74,159 13 [$-$:$-{$13 1$-$-$-|$ 14 |$74,159 |$8,873 $1,483 |$84,515 14 |$-$:$-|$14 $:$:$-1$ 15 |$84,515 |$9,202 1,213 |$1,666 |$94,170 15 [$:$:$:$-1$15 7$-$-$-$-1$ 16 J$94,170|$9,544 $1,883 |$105,598 16 |$-$-$-1$16 V$-$-$-l$ 17 [$105598 |$9,899 $2,112 |$117,608 17 [$:$:$-|$17 4$-$$-1 18 [$117,608 |$10,266 $2,352 |$130,227 18 ]$-$:$-|$18 [$-$-$-T$ 19 |$130,227 |$10,647 $2,605 |$143,479 19 4$-$-$-|$19 1$-$-$-1$ 20 [$143,479 |$11,043 |$54,708 91,180 |$2,140 |$120,190 20 [$:$-1$:$x $-|$20 {$-$$:$-$-|$ 21 7$120,190 |$11,453 $7,258 $2,259 |$126,644 21 [$-$-$:$-|$21 1$-$$$-T$§ 22 |$126,644 |$11,879 $7,258 $2,388 |$133,652 22 |$:$2 $:$-|$22 |$:$:$-$-1$ 23 [$133,652 /$12,320 $7,258 $2,528;$141,242 233 |$:$:$:$-{$23 |$§:$-$-$-!1¢ 24 JS 141,242 |}$=12,778 $7,258 $2,680 |$149,441 24 1$-$-$:$-{$24 1$-$-$-$-1$ 25 [$149,44t |$13,252 $7,258 1,408 |§2,816 |$156,843 25 [$:$$-|$:$-|$25 1$-$:$-|$-$-|$ 26 |$156,843 |$13,745 $7,258 $2,992 |$166,322 26 |$-$-$:$-|$26 1$-$:$$-|$ 27 [$166,322 [$14,256 $7,258 $3,181 |$176,500 27 1$$-$-$-|$27 1$-$-$-$-1$ 28 [$176,500|$14,785 $7258 $3,385 |$187,413 28 [$-$:$:$-1$28 5 $:$$-5 -|$ 29 [$187,413 |$15,335 $7,258 $3,603 |$199,093 29 13 -$:$:$-|$29 45 :$:$:$-|$ 30 |$199,093 |$15,905 $7,258 31,651 |$3,204 |$179,293 30 |$:$:$-|$-$-1%30 [$:$:$-[$:$-|$ 31 {$179,293 /$16,496 $3,586 |$199,375 31 *[$-$-$-|$31 4$=$-$-|$ 32 J$199,375 |$17,109 $3,987 |$220,472 32 1$-$:$-1$32 1$-$-$-l$ 33 [$220,472($17,745 $4,409 |$242,626 33 |$:$:$-|$33 1$:$-$-1$ 34 |$242,626 |$18,405 $4,853 |$265,884 34 1$:$:$-{$34 1$:$-$-1$ 35 |$265,884 |$19,089 1,634 |$5,285 |$288,624 35 |$-$:$:$-|$35 1$-$-$-$-|$ 36 |$288,624 |$19,799 $5,772 |$314,196 36 [S$:$:$-([$36 1$=$-$$ 37 {$314,196 |$20,536 $6,284 |$341,016 37 "1$:$:§$37 [$:$:$-l§ 38 |$341,016 |$21,299 $6,820 |$369,135 38 [$:$z $-|$38 1$:$:$-|$ 39 F$369,135 |$22,091 $7,383 |$398,609 39 I$-$-$-|$39 [§-$-$-1$ 40 [$398,609 |$22,913 390,527 |$-1$30,995 40 15 -$-|$-$-$-{$40 1$-$-|$-$-$-1$ Pedro Bay Village Council Bulk Fue!Facility and Electric Utility Upgrade Business Operating PlanPagy35of37 Pedro Bay Village Council TABLE O Loan Schedules Year 20 R&R Loan -Council Beginning Principal |Ending Year Balance Interest Payment |Payment |Balance 1 $54,707.76 |$3,008.93 ($7,257.96)|$4,249.03 |$50,458.73 2 $50,458.73 |$2,775.23 ($7,257.96)|$4,482.73 |$45,976.00 3 $45,976.00 |$2,528.68 ($7,257.96)|$4,729.28 |$41,246.73 4 $41,246.73 |$2,268.57 ($7,257.96)|$4,989.39 |$36,257.34 5 $36,257.34 |$1,994.15 ($7,257.96)|$5,263.80 |$30,993.54 6 $30,993.54 |$1,704.64 ($7,257.96)|$5,553.31 |$25,440.23 7 $25,440.23 |$1,399.21 ($7,257.96)|$5,858.74 |$19,581.48 8 $19,581.48 |$1,076.98 ($7,257.96)|$6,180.97 |$13,400.51 9 $13,400.51 |$737.03 ($7,257.96)|$6,520.93 |$6,879.58 10 |$ 6,879.58]$378.38 |($7,257.96)|$6,879.58 |$(0.00) $17,871.80 ($72,579.56)$54,707.76 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. Pedro Bay Village CouncilBulkFuelFacilityandElectric Utility Upgrade Business Operating Plan Page 37 of 37 PEDRO BAY VILLAGE COUNCIL a Community History The Dena'ina Indians,historical occupants of the Pedro Bay area,warred with Russian fur traders over trade practices in the early 1800s.The community of Pedro Bay was named for a man known as "Old Pedro”,who lived in this area in the early 1900s.A post office was established in the village in 1936. Today,the community of Pedro Bay has approximately 46 year round residents and is a traditional Dena'ina Indian village.The economy is based on a combination of subsistence living and wages earned from the Bristol Bay fishery or the Lake Iliamna tourism industry.Three residents hold commercial fishing permits. Description of Business History Most of the occupied homes,many of which are only used seasonally,use individual wells and septic systems and are fully plumbed.Water is also derived from Iliamna Lake and honey buckets are used by some of the residents.The Pedro Bay Village Council (Council)provides honeybucket hauling and septic pumping services and maintains the landfill.A new landfill and access road are near completion and INN Electric has asked for funding to construct an intertie to Pedro Bay from the Tazimina Hydroelectric Plant. The Council owns and/or operates a variety of business and service activities in the community. PEDRO BAY VILLAGE COUNCIL CURRENT BUSINESSES AND SERVICES Business or Service Description Bulk Fuel Facility &Retail Fuel Heating diesel fuel delivery and Sales gasoline fuel dispenser Electric Utility Electricity for homes and bldgs. Village Health Clinic Janitorial and maintenance, property insurance and utilities Landfill Refuse collection and landfill maintenance Sewer System Utility Honeybucket haul and septic pump Washeteria Coin-op washer and drier The Pedro Bay Village Council purchases fuel twice a year from the fuel supplier,Everett Air,aKenaiairplanefueldeliveryoperatorthatcandeliverapproximately2,000 gallons in each trip.Occasionally,fuel may be delivered by barge if Lake Iliamna is accessible.The Council purchasesapproximately41,000 to 45,000 gallons of diesel fuel and 5,750 to 6,000 gallons of gasoline fuelannually.In July 2003,the Council purchased #1 diesel for $2.174 per gallon and gasoline for $2.633 per gallon. Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-1 The Pedro Bay Village Council sells #1 diesel fuel for heating for a price of $2.37 per gallon delivered or $2.22 per gallon customer pickup.The Council sells gasoline fuel for motor vehicles for a price of $2.83 per gallon delivered or $2.68 per gallon customer pickup. The Pedro Bay Village Council owns and operates the community's electric utility,which maintains the generator plant,monitors electric meters at residences and commercial businesses,and collects electrical fees.Currently,residents and commercial businesses are paying .39 cents/kilowatt per hour.The Council participates in the Power Cost Equalization (PCE)Program so the residential rate changes depending on funding available. The Council maintains a residential collection rate of 87 percent and a commercial collection rate of 100 percent.During the period of October 2002 through September 2003,214,880 kilowatt hours were generated and 178,693 kilowatt hours were billed by the Council's electric utility. Description of Fiscal Controls and Accounting Procedures The Village Administrator,John Baalke,oversees and approves all expenditures made by the Pedro Bay Village Council.The Finance and Contracting Officer,Rebecca Jenson,is responsible for accounts receivable and accounts payable.All Council staff has the authority to submit check requests,which must have supporting documents prior to being processed by the Finance and Contracting Officer.Council checks must be signed by two authorized signatories,of which there are currently four -John Baalke,and the Council President,Vice President and Treasurer.A copy of issued checks is attached to appropriate supporting documents and filed at the Council's office. The Council's accounting office uses the software program MYOB and is converting to MIP in the near future. The Council operates on an October through September fiscal year.The Anchorage based accounting firm CPMG conducts an annual financial audit of the Council and the most recent audit was completed for 2002 fiscal year with no significant findings. Management and Structure The Pedro Bay Village Council consists of seven members.Below are the names of the 2003 Council Members. ; PEDRO BAY VILLAGE COUNCIL FY2003 COUNCIL MEMBERS Keith Jensen,President Ben Foss,Vice President Michael Jacko,Secretary Marjorie Jensen,Treasurer Kevin Jensen,Member Sean Paul Taylor,Member Sherlie Taylor,Member Pedro Bay Village Council 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 Pedro Bay Village Council's overall services and structure.At the apex of management is a Tribal Council comprised of the President,all representing the Native community of Pedro Bay. Pedro Bay Village Council 2003 Organizational Chart [Tribal Members ] Tribal Council Keith Jensen,President.y, Village Administrator John Baalke ||| Enviromental Coord.Tribal Admin Specialist Realty Specialist Finance &Contract Officer Ben Foss Kevin Jensen Sherlie Taylor Rebecca Jensen Env/GIS Technician Library Technician Senafont Shugak III Vacant | Building &Maintenance Janitorial Services Coord.Public Works Tech.Plant Operator/Lineman SJ Shugak Linda Henry Michael Jacko Carl Jensen Plant/Shop Mechcanic Keith Jensen Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-3 Identification of Key Personnel The Bulk Fuel and Electric Upgrade Facilities will have overall direction from the Council President, Keith Jensen,and John Baalke,Village Administrator.President Jensen and Mr.Baalke will be involved in this project from the beginning and will be the main contacts for the Facility.President Jensen and Mr.Baalke will work with AIDEA/AEA and the Denali Commission to ensure the Council's role in the project timeline. John Baalke is the Village Administrator for Council and is responsible for day-to-day administration of community services and businesses,financial management,budgeting,grant writing and administration,planning,purchasing,risk management and serves as primary supervisor for Council. See attached resume. Rebecca Jensen is the Finance and Contracting Officer for the Council and is responsible for payroll,accounts payable,accounts receivable,tax filings and schedules,and for tracking project expenses and preparation of required project financial reports.See attached resume. Michael Jacko is the Public Works Technician of the existing Bulk Fuel Facility and is responsible for inspecting the Bulk Fuel Facility for possible leaks and spills,minor maintenance and repairs,and coordinating major maintenance and repairs with the Village Administrator.His position will remain the same with the new Bulk Fuel Facility.See attached resume and job description. Carl Jensen is the Plant Operator/Lineman of the existing Electric Facility and is responsible for the operations and maintenance the electric generators.His position will remain the same with the new Electric Upgrade Facility.See attached resume and job description.Keith Jensen is the Plant/Shop Mechanic of the existing Electric Facility.He is secondary operator of the electric generators.His position will remain the same with the new Electric Upgrade Facility.See attached resume. Organization of Bulk Fuel Facility Management and Operations The following chart illustrates the staff relationships of the Council's new Bulk Fuel Facility: PEDRO BAY VILLAGE COUNCIL BULK FUEL PROJECT STAFFING Tribal Council Keith Jensen,President Village Administrator Joho Baalke [| Finance &Contracting Officer Public Works Technician Rebecca Jensen Michael Jacko Pedro Bay Village CouncilBulkFuelFacilityandElectric Utility Upgrade Business Operating Plan Appendix A-4 Organization of Electric Upgrade Facility Management and Operations The following chart illustrates the staff relationships of the Council's new Electric Upgrade Facility: PEDRO BAY VILLAGE COUNCIL ELECTRIC UPGRADE PROJECT STAFFING Tribal Council Keith Jensen President Village Administrator John Baalke { |i ! Finance &Contracting Officer Plant Operator/Lineman Plant/Shop Mechanic Rebecca Jensen Carl Jensen Keith Jensen Staff Training Needs Below is an initial list of training and assistance the Village Administrator has identified for the Council's staff: e Oil Spill Response Training e Bulk Fuel Operator Training e Advanced Power Plant Operator Training Proposed Training Plan The Council will utilize training resources available through AEA and the Alaska Vocational Technical Center to ensure proper training of its personnel.The following is a summary of those resources: e Alaska Energy Authority (AEA) The Alaska Energy Authority has developed a series of courses relating specifically to Bulk Fuel and Power Utility operations.These courses are taught through the Alaska Vocational Technical Center (AVTEC)in Seward: Phone:(907)-269-3000 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 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-5 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 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. 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. Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-6 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. ¢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 Addrtess:P.O.Box 889 809 2 Avenue,Seward,Alaska 99664 Phone:(907)-224-4152 1-800-478-5389 fax (907)224-4143 Web Address:www.avtec.alaska.edu Technical Assistance Provided Skilled Labor Business Administration Facility Maintenance and Operations Cost Fees for courses vary based on the specific program.An estimated fee for various programs has been included next to the listing of programs offered.The estimated fees include tuition,activity fee,security deposit,room and board,and books and supplies.Broken out these costs total -activity fee ($25),security deposit ($50),and room and board ($20/day). The tuition,books and supplies vary in cost according to the course and course length. The following programs and courses are offered relating to Skilled Labor: Construction Machinery and Diesel Engine Technology -This program teaches students the skills and competencies of servicing,maintaining,and repairing construction machinery and diesel engines.Approximately 40 percent of the course is classroom instruction with the remainder being shop work.Four certification levels can be obtained within the program.The entire course will cost an estimated $7,280 and take approximately 40 weeks or 1379 hours. Basic course content includes:tire repair;basics of equipment operation;chassis components;differentials;transmissions;brakes;electrical systems;hydraulic systems; introduction to gas and arc welding;diesel engine operation and tuning;precision measurement;disassembly and reassembly of diesel engines;fuel injection systems and governors,including electronically injected diesels;mathematics;industrial first aid;job search skills;and,shop safety. Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-7 Welding Technology -This program teaches students the skills necessary to successfully pass the AWS-D1.1 Structural Certification Test and become employed in the welding and fabrication industry.Certificates can be obtained in;Combination Welder,Welder SMAW, Wire-Feed Welder,Aluminum Welder,and Welder Helper.The entire course will cost an estimated $5,260 and take approximately 20 weeks or 700 hours. Basic course content includes:O.A.W.(Oxyacetylene Welding);S.M.A.W.(Stick electrode); G.M.A.W.(MIG);G.T.A.W.(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.Fout certificates can be obtained,Industrial Controls Technician,Industrial Electrical Technician,Electrical Apprentice,and Electrical Helper.The entire course will cost an estimated $8,175 and can take up to 40 weeks or 1400 hours depending on the certification level. Basic course content includes:electrical theory and wiring practices;electrical construction and national electrical code,industrial process automation,and job search and interview skills. The following program and courses are offered relating to Business Administration: Business and Office Technology -This program is an individualized,self-paced program. The following certificate levels can be obtained within the program,Accounting Clerk, Administrative Assistant,General Business/Office Assistant,and Business/Office Clerk. The entire course will cost an estimated $6,855 and take approximately 35 weeks or 1225 hours. Basic course content includes:Computer operations and software applications;Keyboarding and document processing;Proofreading and editing,Office procedures and office machines; Machine transcription;Accounting and record keeping;Business English and mathematics; Job and interview preparation;and,Internship training. The following programs are offered relating to Facility Maintenance and Operations: Facility Maintenance/Construction Trades -This 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, Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-8 Electrical (electrical theory,residential wiring,electrical troubleshooting,national electrical code,blueprints,schematics). Facility Maintenance/Mechanical -This program prepares students for installation, maintenance,service,repait and diagnostics of HVAC/R equipment.Approximately 45 percent of the coutse ts 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 houts. 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. Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-9 RESUMES/JOBS DESCRIPTION Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-10 John Baalke Pedro Bay Village Council PO Box 47020 Pedro Bay,Alaska 99647 Work 907-850-2225 Fax 907-850-2221 Employment Previous Experience Pedro Bay Village Council 1996-Present Village Administrative Manages and coordinates the day-to-day activities of the Council's operations to ensure attainment of the goals and objectives set by the Tribal Council.Develops and maintains all administrative systems, draft policies and procedures for the Council's operations and employees,prepares all reports for compliance with funding agencies, assists with agendas and minutes,identifies funding opportunities, and writes grants.Oversees the operations and management of all utilities and services owned and controlled by the Council. City of Grand Marais,Grand Marais,MN 1995-1996 Deputy Clerk/Treasurer-Personnel Coordinator Responsible for fund accounting for City's departments,generating payroll,preparing and maintaining City budget,overseeing special assessments and property taxes,and completing state audit and sales tax reports.Responsible for personnel duties including:hiring new staff,benefit administration,personnel files,and serving on the City Labor Board.Additional duties include taking minutes at City Council meetings. Backcountry Connection,Glennallen,AK 1992 -1995 Owner/Operator Seasonal van touring and regional reservations services. Cross Road Medical Center,Glennallen,AK Jan.-May 1995 Maintenance Supervisor Responsible for overseeing all facility and equipment maintenance. May-Sept.1995 Manager of Finance &Office Administration Responsible for bookkeeping and financial management,hiring and supervising staff,and assisting Administrator and Board of Directors with financial matters. Alaska Bible College,Glennallen,AK Jan.-May 1995 X-C Ski Instructor/Business Manager AssistantResponsibleforteachingbeginningX-C skiing and assisting Business Manager with accounts receivables and monthly reports. Pedro Bay Village CouncilBulkFuelFacilityandElectric Utility Upgrade Business Operating Plan Appendix A-11 John Baalke Resume Continued SEND Intemational of Alaska,Glennallen,AK Sept.1992 -Dec.1994 Bookkeeper Full Charge Sept.-Dec.1994 Computer Services Manager Copper Valley Electric Association,Glennallen,AK July 1990 -May 1991 Data Technician May 1991-June 1992 Personnel Assistant National Park Service,Glennallen,AK Wrangell-St.Elias National Park &Preserve July 1986 -July 1990 Seasonal Park Ranger Education 1982 High School Diploma Sheboygan South High Sheboygan,WI 1982-1985 Moody Bible Institute Chicago,IL 1985-1986 Alaska Bible College Glennallen,AK 1988-1989 Bachelor of Arts University of Alaska Fairbanks Fairbanks,AK Skills &Training Bookkeeping Budget Preparation and Maintenance Grant Writing and Administration Utility Organization Management Community Planning Computers (PCs/Mac/Systems) Community Work 1998 -Present Nilavena Tribes,Inc. Governance Committee Coordinator/Administrator 1998-Present Tanalian Village Council Administrative Associate 1999 -2001 Port Alsworth Improvement Corporation Administrative Associate 1993 -1995 Greater Copper Valley Chamber of Commerce President Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-12 Pedro Bay Village Council PO Box 47020 Pedro Bay,Alaska 99647 Work 907-850-2225 Fax 907-850-2221 Rebecca Jensen Employment Previous Employment Pedro Bay Village Council 2000-Present Finance &Contracting Officer 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 Village Administrator with the day-to-day activities of the Council's operations to ensure attainment of the goals and objectives set by the Tribal Council. Pedro Bay Bible Church 1986-Present Bookkeeper Lake &Peninsula Schools,Pedro Bay,AK 1996-1998 Preschool Instructor Pedro Bay Village Council 1988-1990 Village Administrator/Administrative Assistant Great Land General Agency,Anchorage,AK 1982-1984 Claims Representative 1997-Present University of Alaska,Bristol Bay Campus Working toward a Bachelor in Business Administration 2001 &2003 Ziegner Technologies,Inc.,Honolulu,HI 1996-Present Association of AK School Boards,Juneau,AK 1981-1982 Alaska Business College,Anchorage,AK 12 months Bookkeeping/Accounting Instruction Present Lake &Peninsula School Board,Board of Director Present Koniag Educational Foundation,Board of Director Volunteer Lake &Peninsula Schools and Pedro Bay Bible Church Education Formal Training 23 CPE Credits School Board Training Administrative Assistant Diploma;and, Community Work Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-13 Pedro Bay Village Council PO Box 47020 Pedro Bay,Alaska 99647 Work 907-850-2225 Fax 907-850-2221 Michael Jacko Employment Previous Employment Education Formal Training Community Work Skills Pedro Bay Village Council 2000-Present Public Works Technician Operates and maintains bulk fuel and sewer utilities.Responsible for fuel orders,shipment,transfer and deliveries. Pedro Bay Village Council 1985-2000 Seasonal Laborer,Equipment Operator & Maintenance Worker 1981 GED 1980's Heavy Equipment Operator Training 2001-Present Board of Director Pedro Bay Corporation 1999-Present Secretary Pedro Bay Village Council Minor Bulk Fuel Facility Repair and Maintenance Minor Electrical Repair and Maintenance Heavy Equipment Operator Mechanical Repair and Maintenance Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-14 Carl Jensen Pedro Bay Village Council PO Box 47020 Pedro Bay,Alaska 99647 Work 907-850-2225 Fax 907-850-2221 Employment Previous Employment Pedro Bay Village Council 1983-Present Plant Operator and Lineman Operates and maintains the electric power plant.Installs meters and electrical lines. 1970's-Present Alaska Big Game Guide Alaska Communication System (ACS) 1983-Present Install/Repair Tech 1970's St.Eugene Mining Co.Core Driller 1970's Alaska State SchoolsMaintenance Education 1984 GED Formal Training HAZwoper Certificate ETT Card Community Work Past Pedro Bay Corporation -Board Member Past Pedro Bay Village Council -Council President Present Iliamna Fish Advisory Committee -Board Member Skills Minor Bulk Fuel Facility Repair and Maintenance Minor Electrical Repair and Maintenance Power Line Repair Installing Meters Pedro Bay Village CouncilBulkFuelFacilityandElectric Utility Upgrade Business Operating Plan Appendix A-15 Keith Jensen Pedro Bay Village Council PO Box 47020 Pedro Bay,Alaska 99647 Work 907-850-2225 Fax 907-850-2221 Employment Previous Employment Pedro Bay Village Council 1985-Present Plant/Shop Mechanic Responsible for maintenance of the electric generators,Council owned buildings and motor vehicles. 1989-Present BP Exploration 1984-1985 Reality Sign Service 1984 Norcoast Beck &Assoc. 1986 Alaska Petroleum Contractors 1980 High School Diploma Lake &Peninsula School Dist. 1996-Present President of the Pedro Bay Village Council Minor Bulk Fuel Facility Repair and Maintenance Education Formal Training 1980-1983 Diesel/Gas Engine Mechanic 1984 Heavy Equipment Operator Community Work Skills Minor Electrical Repair and Maintenance Small Engine Repair Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-16 PEDRO BAY VILLAGE COUNCIL JOB DESCRIPTION BULK FUEL FACILITY MANAGER Exempt (Y/N):No Salary: Division:Bulk Fuel Location:Pedro Bay Employee:Supervisor:Tribal Council Approved By:Tribal Council Date: SUMMARY:Plans and directs activities of bulk fuel facility operations.Ensures facility is maintained according to guidelines outlined in Business Plan,the Operations and Maintenance Manual,all manufacturers'recommendations for maintenance,and all state and federal laws and regulations governing operation. ESSENTIAL DUTIES AND RESPONSIBILITIES include the following.Other duties may be assigned. Acts as point of contact for communications between the Pedro Bay Village Council,the Denali Commission,Regulatory Agencies,and other interested parties. Interprets company policies and methods and develops specific operating procedures. Delegates functional activities to workers and establishes supervisory schedules and responsibilities to ensure quality and timeliness of independent decisions required to provide continuous service to public and safety of workers. Maintains operator training program and training records to ensure that trained operators are available to maintain sustained Facility operation. Assists Tribal Council with annual report of operations to the Denali Commission and other required reporting. Implements the spill response and related regulatory plans and ensure that required spill response and related regulatory plans are updated and available on-site:Ensures the reliability of the spill response equipment,maintains the proper records,and conducts periodic spill drills. Oversees proactive program to recognize,identify and correct operational problems within the facility.Investigates,evaluates,and determines best application of new developments in bulk fuel storage industry,and devises other means of securing maximum efficiency of personnel and equipment. Directs maintenance of property records and upkeep of equipment and structures. Pedro Bay Village Council 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 cotrespondence.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. Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-18 PEDRO BAY VILLAGE COUNCIL JOB DESCRIPTION ELECTRIC POWER GENERATION FACILITY MANAGER Exempt (Y/N):No Salary: Division:Electric Utility Location:Pedro Bay Employee:Supervisor:Tribal Council Approved By:Tribal Council 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 Pedro Bay Village Council,the Denali Commission,Regulatory Agencies,and other interested parties. Interprets company policies and methods and develops specific operating procedures. Delegates functional activities to workers and establishes supervisory schedules and responsibilities to ensure quality and timeliness of independent decisions required to provide continuous service to public and safety of workers. Maintains operator training program and training records to ensure that trained operators are available to maintain sustained Facility operation. Assists Tribal Council with annual report of operations to the Denali Commission and other required reporting. Implements the spill response and related regulatory plans and ensure that required spill response and related regulatory plans are updated and available on-site:Ensures the reliability of the spill response equipment,maintains the proper records,and conducts periodic spill drills. Oversees proactive program to recognize,identify and correct operational problems within the facility.Investigates,evaluates,and determines best application of new developments in 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. Pedro Bay Village Council 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 cotrespondence.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. Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-20 APPENDIX B:O&M AND R&R Cost ESTIMATE -BULK FUEL STORAGE COST CONSULTANT HMS Inc. 4103 Minnesota Drive Anchorage,Alaska 99503 (907)561-1653 (907)562-0420 FAX Pedro Bay Village Council BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS VILLAGE COUNCIL TANK FARM PEDRO BAY,ALASKA Bulk Fuel Facility and Electric Utility Uprgrade Business Operating Plan Appendix B-1 HMS #03140 CLIENT Aurora Consulting 6326 Chevigny Street #B Anchorage,Alaska 99502 November 3,2003 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -VILLAGE COUNCIL TANK FARM PAGE 1 PEDRO BAY,ALASKA November 03,2003 CONSTRUCTION COST ESTIMATE HMS Project No.:03140 NOTES REGARDING THE PREPARATION OF THIS ESTIMATE These Operation/Maintenance and Replacement/Renewal costs are based on Pedro Bay Village Council Bulk Fuel Facility conceptual drawings dated,July 2003,prepared by Alaska Energy and Engineering,Inc.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. Replacement costs are based one to four times over 40 years. Please note that this report excludes all work to the existing tank farm,O&M,and R&R costs for non-related tank farm work. ESTIMATING ASSUMPTIONS Operation/Maintenance Costs:All costs are on yearly basis for one time event only. 0 5 10 15 20 25 30 35 40 Years:|\|||||| '||{|{I t 1 Renewal/Replacement Costs:Total cost column represents one time event only.Years in parentheses indicate number of times to be renewed/replaced.Therefore,the Business Plan should apply the total dollars and multiply by the number of years item to be renewed or replaced. Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-2 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -VILLAGE COUNCIL TANK FARM PAGE 2 PEDRO BAY,ALASKA CONSTRUCTION COST ESTIMATE DATE:November 3,2003 HMS Project No.:03140 SUMMARY TOTAL COST One Time Cost (In 2003 Dollars) A.Operations &Maintenance Costs (Yearly)13,091 x 40 Years =$523,643 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. Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-3 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -VILLAGE COUNCIL TANK FARM PEDRO BAY,ALASKA CONSTRUCTION COST ESTIMATE HMS Project No.:03140 PAGE 3 DATE:November 3,2003 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 $$ NOTE:These projections are based on Pedro Bay Native Corporation fuel facility tank farm comprising (2)existing 10,000 gallon tanks and (3)12,000 gallon,(1)8,000 gallon and (1)600 gallon new tanks with fill and dispensing lines and pumping system (total shell capacity 64,600 gallons). All costs are projected on yearly basis using local labor and construction equipment rented from local resources. 1.GROUND MAINTENANCE Annual maintenance 12 Mos 12.000 60.000 17.85 1,071 1,071 SUBTOTAL 1.GROUND MAINTENANCE (YEARLY):1,071 1,071 2.TANKS,PIPELINES AND INSPECTIONS Fuel delivery (55,250 gallons -1 time)1 LOT 12.000 5.000 17.85 89 89 Perform minor repairs,replace faulty valves and gauges (1 time/year -7 tanks -13 each)1 LOT 550.00 550 14.000 14.000 17.85 250 50.00 50 850 Annual inspection/pressure testing (1 outside person)1 LOT 850.00 850 10.000 10.000 75.00 750 50.00 50 1,650 SUBTOTAL 2.TANKS,PIPELINES,ETC.(YEARLY):1,400 1,089 100 2,589 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-4 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -VILLAGE COUNCIL TANK FARM PEDRO BAY,ALASKA CONSTRUCTION COST ESTIMATE HMS Project No.:03140 PAGE 4 DATE:November 3,2003 QUANTITY MATERIAL LABOR EQUIPMENT A.Operations &Maintenance Costs (Yearly)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units Meas Price $Unit Hrs Rate $Price $$ 3.OTHER COSTS Operator training 1 EA 8.000 8.000 45.00 360 360 Administration -clerical 12 Mos 8.000 96.000 16.80 1,613 1,613 Supervision 12 Mos 4.000 48.000 19.44 933 933 Annual audit (in Anchorage)1 EA 10.000 10.000 100.00 1,000 1,000 Tankage insurance (throughput)55,250 GAL 0.10 5,525 5,525 SUBTOTAL 3.OTHER COSTS (YEARLY):§,525 3,906 9,431 SUMMARY (YEARLY) 1.GROUND MAINTENANCE $1,071 2.TANKS,PIPELINES AND INSPECTIONS 2,589 3.OTHER COSTS 9,431 TOTAL IN PRESENT DOLLARS/YEAR:$13,091 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-5 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -VILLAGE COUNCIL TANK FARM PAGE 5 PEDRO BAY,ALASKA CONSTRUCTION COST ESTIMATE DATE:November 3,2003 HMS Project No.:03140 QUANTITY MATERIAL LABOR EQUIPMENT B.Renewal Costs (Over 40 Years)No.of Unit Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas Price $Unit Hrs Rate $Price $$ 1A.FENCE Repair 6'0"fence and gates (at 10 and 30 years -2 times)350 =F 3.75 1,313 0.250 87.500 17.85 1,562 1.60 560 3,434 1B.PADS AND DIKE,ETC. Grade pads (at 10 and 30 years - 2 times)5,000 SF 0.30 1,500 0.010 50.000 17.85 893 0.28 1,400 3,793 Repair grip strut/stairs and landing (ditto)44 SF 1.50 66 0.150 6.600 17.85 118 0.25 11 195 Ditto concrete pad (ditto)462 SF 1.00 462 0.180 83.160 17.85 1,484 0.80 370 2,316 SUBTOTAL 1A &B.FENCE AND PADS &DIKE:3,341 4,057 2,341 9,738 2A.TANKS Replace pumps (at 10,20,30 and 40 years -4 times -2 each)1 LOT 2100.00 2,100 6.000 6.000 17.85 107 50.00 50 2,257 Replace miscellaneous valves and gauges (at 10,20,30 and 40 years - 4 times -7 tanks -13 each)1 LOT 1625.00 1,625 16.000 16.000 17.85 286 80.00 80 1,991 2B.PIPELINES AND HEADERS Check bulk fuel transfer hose,nozzle and reel and repair (at 10 and 30 years -2 times -1 each)1 LOT 250.00 250 8.000 8.000 17.85 143 50.00 50 443 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-6 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -VILLAGE COUNCIL TANK FARM PEDRO BAY,ALASKA CONSTRUCTION COST ESTIMATE HMS Project No.:03140 PAGE 6 DATE:November 3,2003 QUANTITY MATERIAL LABOR EQUIPMENT B.Renewal Costs (Over 40 Years)No.of Units Unit Meas Unit Price Cost $ MH Unit Total Hrs Rate Cost Unit $Price Cost $ TOTAL 2B.PIPELINES AND HEADERS (Continued) Check single product dispenser (at 10 and 30 years -2 times -1 each) Repair 6"x6"treated timber sleepers (at 10 and 30 years -2 times)50 Check and repair custody transfer meter and key control system and single product dispenser (at 10 and 30 years -2 times -3 each) LOT LF LOT 550.00 1.00 550.00 550 50 550 12.000 0.080 18.000 12.000 4.000 18.000 17.85 17.85 17.85 214 50.00 71°(0.15 321 75.00 50 129 946 SUBTOTAL 2.TANKS AND PIPELINES:5,125 1,142 313 6,580 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 -2 pumps)LOT 550.00 550 16.000 16.000 22.50 360 75.00 75 985 SUBTOTAL 3.ELECTRICAL MAINTENANCE:550 360 75 985 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-7 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -VILLAGE COUNCIL TANK FARM PEDRO BAY,ALASKA CONSTRUCTION COST ESTIMATE HMS Project No.:03140 PAGE 7 DATE:November 3,2003 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 $$ SUMMARY (One time cost -multiply by number of times to be renewed) 1A &B.FENCE AND DIKES $9,738 2A &B.TANKS AND PIPELINES 6,580 3.ELECTRICAL MAINTENANCE 985 TOTAL IN PRESENT DOLLARS FOR 40 YEARS:$17,303 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-8 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -VILLAGE COUNCIL TANK FARM PEDRO BAY,ALASKA CONSTRUCTION COST ESTIMATE HMS Project No.:03140 PAGE 8 DATE:November 3,2003 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 $$ 1A.FENCE Replace 6'0"fencing (at 20 and 40 years -2 times)350 =LF 18.50 6,475 0.320 112.000 17.85 1,999 4.00 1,400 9,874 Replace 3'0"man gates (at 20 and 40 years -2 times)4 EA 285.00 1,140 5.000 20.000 17.85 357 1,497 Ditto 12'0"2 EA 1150.00 2,300 16.000 7.000 11.00 77 =--75.00 150 2,527 1B.PAD,DIKE AND STEPS 3"gravel surfacing to pad,100 CY (at 20 and 40 years -2 times)5,000 SF 0.45 2,250 0.030 150.000 17.85 2,678 0.30 1,500 6,428 Excavate,replace pad liner and backfill (at 40 years -1 time)5,000 SF 4.45 22,250 0.350 1750.000 17.85 31,238 1.00 5,000 58,488 Ditto woven geotextile 22,000 SF 0.16 3,520 0.002 44.000 17.85 785 4,305 Ditto 4”geogrid at spill pad (at 40 years -1 time)2,400 SF 1.70 4,080 0.030 72.000 17.85 1,285 0.12 288 §,653 Ditto grip strut stairs and landings (ditto)44 SF 32.20 1,417 0.420 18.480 17.85 330 2.50 110 1,857 Ditto concrete pad (ditto)462 SF 5.20 2,402 0.420 194.040 17.85 3,464 1.20 554 6,420 SUBTOTAL 1A &B.FENCE,PAD &DIKE:45,834 42,212 9,002 97,049 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-9 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -VILLAGE COUNCIL TANK FARM PEDRO BAY,ALASKA CONSTRUCTION COST ESTIMATE HMS Project No.:03140 PAGE 9 DATE:November 3,2003 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-10 QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas}Price $Unit Hrs Rate $Price $$ 2A.TANKS Replace tanks,12,000 gallon (at 40 years -3 tanks -1 time)1 EA 47500.00 47,500 250.000 250.000 75.00 18,750 1700.00 1,700 67,950 Ditto,600 gallon intermediate tank (1 tank -1 time)1 EA =3200.00 3,200 12.000 12.000 75.00 900 150.00 150 4,250 Ditto,10,000 gallon tanks (2 tanks - 1 time)1 EA 25500.00 25,500 150.000 150.000 75.00 11,250 1000.00 1,000 37,750 Ditto,8,000 gallon fireguard tank (1 tank -1 time)1 EA 32500.00 32,500 120.000 120.000 75.00 9,000 1200.00 1,200 42,700 2B.PIPELINES AND HEADERS Replace 2"Schedule 80 above grade line and supports (at 20 and 40 years - 2 times -1-2 pipes)400 LF 17.50 7,000 0.650 260.000 17.85 4,641 5.20 2,080 13,721 Ditto 1"ditto (at 20 and 40 years -2 times -1 pipe)100 LF 12.50 1,250 0.500 50.000 17.85 893 3.40 340 2,483 Replace pipeline valves at tank fill (at 20 and 40 years -2 times -7 tanks)1 EA 820.00 820 16.000 16.000 17.85 286 1,106 Replace 6'0"x6'0"treated timber sleepers 50 LF 6.50 325 0.220 11.000 17.85 196 1.00 50 571 Replace bulk fuel transfer nozzle,reel, custody meter and single product dispenser (2 times -3 each)1 EA §000.00 5,000 40.000 40.000 75.00 3,000 100.00 100 8,100 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -VILLAGE COUNCIL TANK FARM PEDRO BAY,ALASKA CONSTRUCTION COST ESTIMATE HMS Project No.:03140 PAGE 10 DATE:November 3,2003 QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of Units Unit Meas Unit Price Cost $ MH Unit Total Hrs Rate Cost Unit Price Cost $ TOTAL 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 -7 tanks)41 LOT 1250.00 1,250 24.000 24.000 75.00 1,800 200.00 200 3,250 SUBTOTAL 2.TANKS,PIPELINES &INSPECTION:124,345 50,715 6,820 181,880 3.ELECTRICAL SYSTEMS Replace wiring,panels and circuit breakers for pumps,etc.at each tank (at 20 and 40 years -2 times - 7 tanks -2 pumps)8500.00 12,500 96.000 200.000 75.00 15,000 300.00 400 27,900 SUBTOTAL 3.ELECTRICAL SYSTEMS:12,500 15,000 400 27,900 SUMMARY (One time cost -multiply by times to be replaced) 1A &B.FENCE AND DIKES 2A &B.TANKS AND PIPELINES 3.ELECTRICAL SYSTEMS $97,049 181,880 27,900 TOTAL RENEWAL:$306,829 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-11 APPENDIX C:O&M AND R&R CosT ESTIMATE -ELECTRIC POWER UTILITY POWER PLANT OPERATION &MAINTENANCE AND REPLACEMENT &RENEWAL COSTS Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-1 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS NOTES REGARDING THE PREPARATION OF THIS ESTIMATE These Operations/Maintenance and Replacement/Renewal costs are based on conceptual drawings and do not include costs that could incur due to unexpected events such as natural disaster,vandalism,etc. Each work item is priced using 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 2002 dollars and should be projected to the initial 40 years of the facility using appropriate inflation factor over next 40 years. Renewal costs are based on repairing 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 2 30 35 40 Years:|!t || r !i i T 1 Renewal/Replacement Costs:Total cost column represents one time event only.Years in parentheses indicate number of times to be renewed/replaced.Therefore,the Business Plan should apply the total dollars and multiply by the number of years item to be renewed or replaced. NOTE:The original draft has been revised to incorporate review comments made by the project manager. Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-2 PAGE 2 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 3 SUMMARY TOTAL COST One Time Cost (In 2002 Dollars) A.Operations &Maintenance Costs (First Year)16,698 x 40 Years =$667,915 B.Renewal Costs (Over 40 Years)With Business Plan C.Replacement Costs (Over 40 Years)With Business Plan TOTAL O&M AND RENEWAL/REPLACEMENT COSTS (2002 DOLLARS):NWA 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. Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-3 POWER PLANT OPERATIONS 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 $$ 1.SITE MAINTENANCE Annual maintenance 12 Mos 50.00 600 6.000 72.000 16.42 1,182 1,782 Building pad 13,500 SF Included Above Boardwalk 900 SF Included Above Steel grate ramps and steps 610 SF Included Above TOTAL 1.:600 1,182 1,782 2.FUEL TANK,PIPELINES AND TRANSFORMER Check step-up transformers 3 EA 4.000 12.000 16.42 197 197 Fuel delivery (12,000 galton via pipeline)With Tank Farm Perform minor repairs,replace faulty valves and gauges (1 tank)1 LOT 500.00 500 16.000 16.000 16.42 263 50.00 50 813 TOTAL 2.:500 460 50 1,010 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-4 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 5 QUANTITY MATERIAL LABOR EQUIPMENT A.Operations &Maintenance Costs (First Year)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas Price $Unit Hrs Rate $Price $$ 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)1 LOT Power plant insurance (1,440 SF building and gensets,switchgear, 42,000 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.17.EA 20.00 340 1.500 25.500 16.42 419 10.00 170 929 Floor structure 1,440 SF 0.05 72 0.020 28.800 16.42 473 545 Roof structure 1,632 SF 0.05 82 0.020 32.640 16.42 536 618 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-5 POWER PLANT OPERATIONS 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 $$ 4.BUILDING SYSTEMS (Continued) Exterior walls metal siding and interior FRP 2,704 SF 0.07 189 0.013 35.152 16.42 577 766 10'0"x10'0"overhead door 1 EA 40.00 40 4.000 4000 16.42 66 106 3'0"x7'0"single door 1 EA 15.00 15 1.000 1.000 16.42 16 31 3'6"x3'6"windows 2 EA 10.00 20 0500 1.000 16.42 16 36 Metal roofing 1,632 SF 0.10 163 0.020 32.640 16.42 536 699 Interior stud/gypboard partitions 744 =SF 0.05 37 0.020 14.880 16.42 244 282 3'0"x7'0"single doors 3 EA 5.00 15 0.350 1.050 16.42 17 32 3'6"x8'0"window 1 EA 5.00 5 1.000 1.000 16.42 16 21 Clean floors 1,440 SF 0.10 144 0.030 43.200 16.42 709 853 Clean FRP wall finishes 3,360 SF 0.01 34 0.007 23.520 16.42 386 420 Ditto ceiling finishes 1,440 SF 0.01 14 0.007 10.080 16.42 166 180 Specialties 1 LOT 2.000 2.000 16.42 33 33 TOTAL 4.:1,170 4,211 170 5,551 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-6 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 7 QUANTITY MATERIAL LABOR EQUIPMENT A.Operations &Maintenance Costs (First Year)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas Price $Unit Hrs Rate $Price $$ 5.MECHANICAL Check heating,ventilation and ducts, grilles,louvers and controls 1,440 SF 0.10 144 0.016 23.040 16.42 378 522 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 §.:1,144 1,578 2,722 6,ELECTRICAL Check service and distribution 1,440 SF 0.013 18.720 16.42 307 307 Change lamps/replace lenses (28 fixtures x 25%)7 EA 24.00 168 0.700 4900 16.42 80 248 Check devices,switches,etc.1 LOT 6.000 6.000 16.42 99 99 TOTAL 6.:168 486 654 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-7 POWER PLANT OPERATIONS 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 $$ 7.POWER GENERATION SYSTEMS Check 200 KW genset radiators, mufflers and additives 2 EA 18.000 36.000 16.42 591 591 Ditto 170 KW 1 EA 10.000 10.000 16.42 164 164 Ditto 140 KW 1 EA 8.000 8.000 16.42 131 131 Ditto switchgear and controls 1 EA 12.000 12.000 16.42 197 197 Change oil,oil filter,fuel filter and air filters in generator engine 1 EA 3500.00 3,500 24.000 24.000 16.42 394 3,894 TOTAL 7.:3,500 1,478 4,978 SUMMARY (YEARLY) 1.SITE MAINTENANCE $1,782 2.FUEL TANK,PIPELINES AND TRANSFORMER 1,010 3.OTHER COSTS - 4.BUILDING SYSTEMS 5,551 5.MECHANICAL 2,722 6.ELECTRICAL 654 7.POWER GENERATION SYSTEMS 4,978 TOTAL IN PRESENT DOLLARS/YEAR:$16,698 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-8 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 9 QUANTITY MATERIAL LABOR EQUIPMENT B.Renewal Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTALUnits|Meas Price $Unit Hrs Rate $Price $$ 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 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-9 POWER PLANT OPERATIONS 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 TOTALUnits|Meas Price $Unit Hrs Rate $Price $$ 3.BUILDING SYSTEMS Minor repairs to floor system (at 10, 20,30 and 40 years -4 times)1440 SF 0.15 216 0.030 43.200 17.85 771 987 Ditto roof structure (ditto)1,632 SF 0.10 163 0.020 32.640 17.85 583 746 Repair exterior metal siding (at 5,10, 15,25,30 and 35 years -6 times)2,704 SF 0.20 541 0.030 81.120 17.85 1,448 1,989 Ditto interior plywood/FRP (ditto)2,704 SF 0.10 270 0.020 54.080 17.85 965 1,236 Repair/caulk 10'0°x10'0"overhead door (ditto)1 EA 50.00 50 4.000 4.000 17.85 71 121 Repair/caulk 3'0"x7'0"exterior door (at 5,10,15,25,30 and 35 years - 6 times)1 EA 12.00 12 1.500 1.500 17.85 27 39 Ditto 3'6"x3'6"windows (ditto)2 EA 8.00 16 1.000 2.000 17.85 36 52 Repair metal roofing and flashings (at 10,20 and 35 years -3 times)1,632 SF 0.25 408 0.040 65.280 17.85 1,165 1,573 Change interior door hardware (at 10 and 30 years -2 times)3.EA 265.00 795 1.500 4.500 17.85 80 875 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-10 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 11 QUANTITY MATERIAL LABOR EQUIPMENT B.Renewal Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTALUnits|Meas Price $Unit Hrs Rate $Price $$ 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)1,440 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 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-11 PAGE 12POWERPLANTOPERATIONSANDMAINTENANCEANDREPLACEMENTANDRENEWALCOSTS 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 $$ 4,MECHANICAL (Continued) Repair fire suppression system and charge FM containers (at 10 and 30 years -2 times)1 LOT 3500.00 3,500 10.000 10.000 75.00 750 50.00 50 4,300 TOTAL 4.:4,704 2,730 50 7,484 5.ELECTRICAL Replace panel circuit breakers,fuses, etc.(at 10 and 30 years -2 times)1 LOT 1200.00 1,200 24.000 24.000 22.50 540 1,740 Replace fixture ballasts and lenses (at 5,10,15,25,30 and 35 years - 6 times -28 fixtures x 35%)10 EA 60.00 600 1.500 15.000 22.50 338 938 Repair devices (ditto)40 EA 2.50 100 0.750 30.000 22.50 675 775 TOTAL 5.:1,900 1,553 3,453 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-12 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 13 QUANTITY MATERIAL LABOR EQUIPMENT B.Renewal Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTALUnits|Meas Price $Unit Hrs Rate $Price $$ 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)1 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 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-13 POWER PLANT OPERATIONS 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 $$ SUMMARY 1.SITE $2,667 2.FUEL PUMPS,PIPELINE AND ELECTRICAL 2,673 3.BUILDING SYSTEMS 11,951 4.MECHANICAL 7,484 5.ELECTRICAL 3,453 6.POWER GENERATION SYSTEMS 107,025 TOTAL IN PRESENT DOLLARS OVER 40 YEARS (1 TIME EVENT):$135,252 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-14 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 15 QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units [Meas Price $Unit Hrs Rate $Price $$ 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 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-15 POWER PLANT OPERATIONS 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 $$ 3.BUILDING SYSTEMS Shim piles and replace bracings (at 20 and 40 years -2 times)17 EA 255.00 4,335 6.000 102.000 17.85 1,821 215.00 3,655 9,811 Upgrade floor system (at 20 and 40 years -2 times)1440 SF 1.00 1,440 0.100 144.000 17.85 2,570 4,010 Ditto roof structure (ditto)1,632 SF 0.75 1,224 0.080 130.560 17.85 2,330 3,554 Replace exterior metal siding (at 40 years -1 time)2,704 SF 4.25 11,492 0.170 459.680 17.85 8,205 19,697 Replace exterior wall plywood and insulation {at 40 years -1 time)2,704 SF 1.25 3,380 0.070 189.280 17.85 3,379 6,759 Replace 10'0"x10'0"overhead door (at 20 and 40 years -2 times)1 EA 1850.00 1,850 8.000 8.000 17.85 143 1,993 Ditto 3'0"x7'0"single door (ditto)1 EA 785.00 785 3.000 3.000 17.85 54 839 Replace 3'6"x3'6"exterior windows (ditto)2 EA 380.00 760 3.000 6.000 17.85 107 867 Replace metal roofing and insulation (at 15 and 35 years -2 times)1,632 SF 5.70 9,302 0.200 326.400 17.85 5,826 15,129 Replace 3'0"x7'0"interior doors (at 20 and 40 years -2 times)3 EA 655.00 1,965 2.500 7.500 17.85 134 2,099 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-16 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 17 QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units [Meas Price $Unit Hrs Rate $Price $$ 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-2times)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)41 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 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-17 POWER PLANT OPERATIONS 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 Totai Cost Unit Cost TOTAL Units [Meas Price $Unit Hrs Rate $Price $$ 5.ELECTRICAL Replace panels,disconnect switches, motor controls,etc.(at 20 and 40 years - 2 times)1 LOT 7500.00 7,500 80.000 80.000 75.00 6,000 3000.00 3,000 16,500 Replace conductors only (at 40 years - 1 time)1 LOT 2200.00 2,200 48.000 48.000 75.00 3,600 5,800 Replace light fixtures (at 20 and 40 years - 2 times)28 EA 152.50 4,270 1.500 42.000 75.00 3,150 7,420 Replace devices (ditto -2 times)40 EA 18.00 720 0.500 20.000 75.00 1,500 2,220 Replace fire alarm system (at 20 and 40 years -2 times)1,440 SF 4.70 6,768 0.040 57.600 75.00 4,320 11,088 Replace transformers (at 40 years - 1 time)3 EA 7200.00 21,600 32.000 96.000 75.00 7,200 28,800 TOTAL 5.:43,058 25,770 3,000 71,828 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-18 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 19 QUANTITY MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units [Meas Price $Unit Hrs Rate $Price $$ 6.POWER GENERATION SYSTEM Replace 200 KW generator (at 20 and 40 years -2 times,2 each)1 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)1 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)4 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 &40 years -2 times)1 LOT 5000.00 5,000 100.000 100.000 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 Pedro Bay Village Council Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-19 ADDITIONAL RELATED AND ATTACHED DOCUMENTS 1.Secondary Operator Agreement 2.Site Control Documents w.Grant Agreements 4.R&R Fund Account --Sample Documents 5.Power Purchase Agreement SECONDARY OPERATOR AGREEMENT FOR THE PEDRO BAY 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 Pedro Bay Village Council ("Council”)for the upgrading of bulk fuel storage and electric power generation facilities at Pedro Bay,Alaska (the "Facility”)owned by the Council;and WHEREAS,grant funds may also be provided by HUD and/or the State of Alaska,and the financial aspects of those separate grants will be managed and the Facility construction will be overseen by the Commission (which term shall include HUD and/or the State of Alaska in this Secondary Operator Agreement for the Facility,hereinafter the "Agreement”);and WHEREAS,the Commission has adopted Sustainability Criteria that apply to the use of Commission funds for the Facility,in order to ensure the long-term economic sustainability of the Facility;and WHEREAS,the Commission and the Council have agreed to a Business Operating Plan consistent with the Sustainability Criteria for the operation of the Facility,as contained in the Pedro Bay Bulk Fuel Facility and Electric Utility Upgrade Project Business Operating Plan dated January 12,2004 ("Plan”);and WHEREAS,the Plan specifies that the Council shall act as the Primary Operator of the Facility,as specified therein,and shall operate the Facility in compliance with the terms and conditions of the Plan;and WHEREAS,the Commission and the Council 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 Council agree as follows,in consideration for the mutual promises contained herein and the benefits to the parties resulting from the completion and operation of the Facility: 1.The Primary Operator shall operate the components of the Facility specified in the Plan in accordance with the terms and conditions of the Plan and the requirements contained herein. 2.In addition to,and consistent with its duties specified in the Plan,the Primary Operator shall,in a timely manner: 2.1 properly establish and maintain accurate books and records; 2.2 account for,bill for,and use its best efforts to collect all fuel sales and all other receivables; Secondary Operator Agreement for the Pedro Bay Bulk Fuel Storage and Electric Power Utility Facility Page 2 of 4 2.3 2.4 2.5 2.6 2.7 2.8 3.If the 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; ptovide or obtain necessary training for Facility operations;and meet its financial obligations. 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 Council agrees to cooperate with the Commission and the Secondary Operator in the release of the stated assets and the transfer of operations to the Secondary Operator. The Secondary Operator will be entitled to reasonable compensation for its services.This compensation will,at a minimum,reimburse the Secondary Operator for any and all expenses associated with their duties as Facility operator,plus a reasonable profit.The profit will not exceed what is considered normal and customary for like service,as determined by the Commission in the exercise of its sole discretion. Secondary Operator Agreement for the Pedro Bay Bulk Fuel Storage and Electric Power Utility Facility Page 3 of 4 10. 4.4 The parties anticipate that,if a Secondary Operator is appointed,the Commission will appoint (fo be determined),which will joint venture with an establish bulk fuel operator. However,the parties acknowledge that (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 Council acknowledges and agrees that the Commission may appoint any qualified entity or entities to serve as Secondary Operator.The Commission will consult with the Council on the replacement to the Secondary Operator;however,the Commission maintains final approval authority for the replacement Secondary Operator. 4.5 The Commission will act reasonably and responsibly in its enforcement of the Plan and this Agreement and its designation of a Secondary Operator,consulting with the Council and taking into account the needs and interests of the community of Pedro Bay 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 patties to an agreement with the Secondary Operator,application or enforcement of this Agreement shall be decided through mediation.If mediation is unsuccessful,any party to this Agreement may bring an action to resolve the dispute in the Superior Court of the State of Alaska. This Agreement may be executed simultaneously in two (2)or more counterparts,each of which will be considered an original,but all of which together will constitute one and the same instrument.The exchange of a fully executed Agreement (in counterparts or otherwise)by fax shall be sufficient to bind the parties to the terms and conditions of this Agreement. No delay on the part of a party in the exercise of any right,power,or remedy shall operate as a waiver thereof,nor shall any single or partial exercise of any right,power,or remedy preclude other or further exercise thereof or the exercise of any other right,power,or remedy.No amendment, modification,or waiver of,or consent with respect to,any provision of this Agreement shall be effective unless it shall be in writing and signed and delivered by the parties hereto. All notices,demands or requests required or allowed under this Agreement or applicable law from one party to another shall be in writing and delivered in person or sent by mail,certified or registered,postage prepaid,to the parties hereto at the addresses set forth in this Agreement or to such other persons and addresses as either party may designate.Notice shall be deemed to have been given three (3)days after the day of mailing. This Agreement is a contract made under and governed by the laws of the State of Alaska.All obligations and rights of the parties stated herein shall be in addition to,and not in limitation of, those provided by applicable law. This Agreement shall be binding upon,and inure to the benefit of,the parties hereto,and their respective heirs,successors,and assigns. Secondary Operator Agreement for the Pedro Bay Bulk Fuel Storage and Electric Power Utility Facility Page 4 of 4 11.This Agreement represents the entire agreement between the parties,and there are no other agreements,either oral or written,with respect to the subject matter of this Agreement. This AGREEMENT has been reviewed,agreed to,and executed by the following parties: for the PEDRO BAY VILLAGE COUNCIL b "OZ-2e-o4(Signature)(Date) Red oss UP. (Name Printed)(Title) for AUK cenb:°Ce 3-11-04 (Signature)a (Date) AN Evins Crre Sof GefF (Name Printed)7 (Title) for (TO BE DETERMINED) by (Signature)(Date) (Name Printed)(Title) PACIFIC NORTHWEST TITLE _.........OF ALASKA,INC.K\\ CERTIFICATE TO PLAT AMENDMENT NO.1 ORDER NO.:00062836 Date:January 30,2004 ALASKA ENERGY &ENGINEERING,INC. 1217 E.KLATT ROAD STE A ANCHORAGE,AK 99511 Attn:STEVEN STASSEL Reference:PEDRO BAY This is a Certificate as of January 16,2004 at 8:00 a.m.on the following described property: See Exhibit A Attached hereto and made a part hereof A search of the records of the lliamna Recording Office by this Company reveals that title to the property described herein is vested on the date shown above in: See Exhibit A Attached hereto and made a part hereof SUBJECT only to the exceptions shown herein:wwCERTIFICATE TO PLAT Printed on Recycled Paper GENERAL EXCEPTIONS: Encroachments or questions of location,boundary and area,which an accurate survey may disclose;public or private easements, claims of easements or encumbrances which are not disclosed by the public records including but not limited to rights of the state and/or public in and to any portion of the land for right of way as established by federal statute RS 2477;rights or claims of persons in possession,or claiming to be in possession,not disclosed by the public records;material or labor liens or statutory liens under State Acts not disclosed by the public records;water rights or matters relating thereto;any service,installation or construction charges for sewer,water or electricity. Right of use,control or regulation by the United States of America in the exercise of powers over navigation;defects,liens, encumbrances,or other matters created or suffered by the insured;rights,claims based upon instruments or upon facts not disclosed by the public records but of which rights,claims,instruments or facts the insured has knowledge.General taxes not now payable;matters relating to special assessments and special levies,if any,preceding the same becoming a lien.Mining claims,reservations or exceptions in patents or in Acts authorizing the issuance thereof. Any law,ordinance or governmental regulation (including but not limited to building and zoning laws,ordinances,or regulations) restricting,regulating,prohibiting or relating to (i)the occupancy,use or enjoyment of the land;(ii)the character,dimensions or location of any improvement now or hereafter erected on the land;(iii)a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part;or (iv)environmental protection,or the effect of any violation of theselaws,ordinances or governmental regulations,except to the extent that a notice of the enforcement thereof or a notice of a defect,lienorencumbranceresultingfromaviolationorallegedviolationaffectingthelandhasbeenrecordedinthepublicrecordsatDateof Certificate. "Consumer Credit Protection,”"Truth in Lending”or similar law,or failure to comply with said law(s). Any claim by reason of the operation of federal bankruptcy,state insolvency,or similar creditors'rights laws. 3201 C Street Suite 110,Anchorage,AK 99503, PHONE (907)561-5122 @ rax:(907)261-2201 Page 1 Pedro Bay Village Council Site Control Documents 1 Exhibit A PARCEL 1: VESTING: STATE OF ALASKA,DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS,as Trustee for any futuremunicipalcorporationthatmaybeestablishedinthevillageofPedroBay,Alaska,an estate in fee simple. LEGAL DESCRIPTION: A Triangular shaped portion of Tract 7,of PEDRO BAY ANCSA 14(c)SURVEY,according to Plat 92-10,records of the liamna Recording District,Third Judicial District,State of Alaska,LYING Southwesterly of a 60 foot Right-of-Way created by Book 13,Page 943 and Southeasterly of a 60 foot Right-of- Way depicted on Plat 93-8,Big Hill Subdivision and Northerly of U.S.Survey No.7962. EXCEPTING THEREFROM the subsurface estate and all rights,privileges,immunities and appurtenances of whatsoever nature,accruing unto said estate pursuant to the Alaska Native Claims Settlement Act of December 18, 1971 (85 Stat.688,704;43 U.S.C.1601,1613 (f)(1976),as reserved by the United States of America, PARCEL 2; VESTING: STATE OF ALASKA,DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT,as Trustee for any future municipal corporation that may be established in the village of Pedro Bay,Alaska,an estate in fee simple. LEGAL DESCRIPTION: Lot 1 and Tract "A”,of BIG HILL SUBDIVISION,according to Plat 93-8,records of the Iliamna Recording District, Third Judicial District,State of Alaska, EXCEPTING THEREFROM the subsurface estate and all rights,privileges,immunities and appurtenances of whatsoever nature,accruing unto said estate pursuant to the Alaska Native Claims Settlement Act of December 18, 1971 (85 Stat.688,704;43 U.S.C.1601,1613 (f)(1976),as reserved by the United States of America. Pedro Bay Village CouncilSiteControlDocuments 2 PARCEL 3: VESTING: ARTHUR ROEHL,as to a restricted fee simple estate. LEGAL DESCRIPTION: Lots 1 and 3,of U.S.SURVEY NO.7962 SUBDIVISION,according to Plat 94-4,records of the Iliamna Recording District,Third Judicial District,State of Alaska. Pedro Bay Village Council Site Control Documents 3 Order No.:00062836 SPECIAL EXCEPTIONS: 1.EXCEPTIONS,RESERVATIONS,AGREEMENTS,EASEMENTS AND USE RIGHTS as set forth ininterimconveyance: Recorded:November 4,1980Book/Page:9/555 2.TERMS,COVENANTS,CONDITIONS AND PROVISIONS,including rights of way and easements,ascontainedintheAlaskaNativeClaimsSettlementAct,dated December 18,1971,U.S.Public Law 92-203, (85 Stat.688,704;43 U.S.C.1601,et seq.). NOTE:No assurance is given as to the vertical delineation of the surface and subsurface estates in said land as provided in said Act. 3.ANY DEFECT OR INVALIDITY of the title to said land based on the fact that no patent has been issued by the United States of America.Upon the issuance of said patent and recordation thereof in the herein named recording district,said land will be subject to all the provisions and reservations contained therein Recording District:Iliamna 4.GRANT OF RIGHT OF WAY,including the terms and conditions thereof In Favor Of:State of Alaska,Department of Transportation and Public Facilities Recorded:January 29,1986 Book/Page:13/943 For:Right-of-Way for the use and maintenance of an access road serving the Pedro Bay Airport Affects:Portion of Parcel 1,See instrument 5.LEASE (Equipment Storage and Shop Facility),including the terms and conditions thereof Lessor:State of Alaska,Department of Community and Regional Affairs,as trustee for any future first or second class city in Pedro Bay,Alaska Lessee:Pedro Bay Village Council Term:30 years commencing on April 8,1986 and ending at midnight on April 8,2016 Dated:April 8,1986 Recorded:April 11,1986 Book/Page:14/89 Affects:Portion of Parcel 1,See instrument AMENDMENT NO.1,including the terms and conditions thereof Dated:January 17,1991 Recorded:February 6,1991 Book/Page:19/424 CERTIFICATE TO PLAT Printed on Recycled Paper Page 2 Pedro Bay Village Council Site Control Documents 4 Order No.:00062836 SPECIAL EXCEPTIONS (Continued) 6.LEASE (Bulk Fuel Storage and Electrical Generator Facilities),including the terms and conditions thereofLessor: Lessee: Term: Dated: Recorded: Book/Page: Affects: Lessor: Lessee: Term: Dated: Recorded: Book/Page: Affects: In Favor Of: Recorded: Book/Page: For: Affects: In Favor Of: Recorded: Book/Page: For: Affects: State of Alaska,Department of Community and Regional Affairs,as trustee for any future first or second class city in Pedro Bay,Alaska Pedro Bay Improvement Corporation 30 years commencing on July 3,1986 and ending at midnight on July 3,2016July3,1986 July 9,1986 14/337 Portion of Parcel 1,See instrument LEASE (Community Hall),including the terms and conditions thereof State of Alaska,Department of Community and Regional Affairs,as trustee for any future first or second class city in Pedro Bay,Alaska Pedro Bay Village Council 30 years commencing on January 17,1991 and ending at midnight on January 17,2021 January 17,1991 February 6,1991 19/428 Portion of Lot 1 of Parcel 2,See instrument EASEMENT AGREEMENT,including the terms and conditions thereof Telephone Utilities of the Northland d/b/a PTI Communications December 27,1994 22/345 Cable system for the provision of telephone service Portion of Parcels 1 and 2,See instrument RIGHT-OF-WAY EASEMENT,including the terms and conditions thereof'Pedro Bay Village Council March 12,1996 22/985 Use and maintenance of a public access road in the village...60 feet in width Not defined of record,See instrument 10.RIGHT-OF-WAY EASEMENT,including the terms and conditions thereof In Favor Of: Recorded: Book/Page: For: Affects: Pedro Bay Village Council August 13,1996 23/335 Use and maintenance of a public access road in the village...60 feet in width Portion of Parcel 1,See instrument 11.ELECTRIC RIGHT-OF-WAY EASEMENT,including the terms and conditions thereof In Favor Of: Recorded: Book/Page: For: Affects: CERTIFICATE TO PLAT Printed on Recycled Paper PEDRO BAY VILLAGE COUNCIL March 3,1999 28/394 Electric transmission and/or distribution line or system Portions of Parcel 1 and 2,See instrument Page 3 Pedro Bay Village Council Site Control Documents 5 12. 13. 14. 15. 16. 17. 18. 19. Order No.:00062836 SPECIAL EXCEPTIONS (Continued) ELECTRIC RIGHT-OF-WAY EASEMENT,including the terms and conditions thereofInFavorOf:PEDRO BAY VILLAGE COUNCIL Recorded:June 16,1999 Book/Page:28/661 For:Electric transmission and/or distribution line or systemAffects:Portions of Parcel 1 and 2,See instrument PUBLIC SCHOOL LEASE,including the terms and conditions thereofLessor:State of Alaska,Department of Community and Economic DevelopmentLessee:Lake and Peninsula School District Term:55 yearsDated:March 12,2001 Recorded:March 15,2001 Book/Page:30/159 Affects:Tract A of Parcel 2 EFFECT of the notes as shown on Plat No.92-10,93-8,95-2. RESERVATIONS AND EXCEPTIONS as contained in Native Allotment Certificate Recorded:October 30,1986 Book/Page:14/599 Affects:Parcel 3 RESTRICTIONS AGAINST ALIENATION AND TAXATION pursuant to the provisions of the Act of May 17,1906 (34 Stat.197),as amended,and as imposed upon said land by Native Allotment Serial No.:AA-6722 Certificate No.:50-86-0605 Recorded:October 30,1986 Book/Page:14/599 Affects:Parcel 3 ANY CONVEYANCE AND/OR ENCUMBRANCE of said interest must be approved by the Secretary of the Interior,Bureau of Indian Affairs. Affects:Parcel 3 RIGHTS of the public and/or governmental agencies in and to that portion of said premises lying below the ordinary high water line of Pedro Bay of Lake Iliamna. Affects:Lot 3 of Parcel 3 ANY PROHIBITION OR LIMITATION on the use,occupancy or improvement of the land resulting from the rights of the public or riparian owners to use any waters which may cover the land,or to use any portion of the land which is now or may formerly have been covered by water. Affects:Lot 3 of Parcel 3 20.EASEMENT dedicated or delineated on the face of the plat Plat No.:94-4 For:30 foot wide public use easement Affects:A Portion of Lot 1 of Parcel 3 CERTIFICATE TO PLAT Printed on Recycled Paper Page 4 .Pedro Bay Village CouncilSiteControlDocuments 6 Order No.:00062836 SPECIAL EXCEPTIONS (Continued) 21.EFFECT of the notes as shown on Plat No.94-4. Note:Not within a taxing area. This report is restricted to the use of the addressee and is not to be used as a basis for closing any transaction affecting title to said property.Liability of the Company is limited to the compensation received therefor. CHARGE:$650.00 Update Charge:$100.00 PACIFIC NORTHWEST TITLE OF ALASKA,INC. By:NY Yaw/Authorized Signature Howard Hancock,Phone:261-2230 Amended to add Parcel 3 and exceptions 15 through 21 and update effective date. Hh Attachments January 30,2004 CERTIFICATE TO PLAT Printed on Recycled Paper Page 5 Pedro Bay Village Council Site Control Documents 7 Frank H.Murkowski,Governor Department of Community and Economic Development Division of Community Advocacy 550 W.7th Avenue,Suite 1770,Anchorage,AK 99501-3510 Telephone:(907)269-4501 »Fax:(907)269-4539 »Text Telephone:(907)465-5437 Email:questions@dced.state.ak.us »Website:www.dced.state.ak.us/cbd/ January 23,2004 Mr.Keith Jensen,President Pedro Bay Village Council P.O.Box 47020 Pedro Bay,AK 99647 Dear Mr.Jensen: You have asked about the use of Pedro Bay ANCSA 14(c)(3)land for a proposed new bulk fuel storage facility.The Department of Community and Economic Development (DCED)supports the Pedro Bay Village Council's project to develop Pedro Bay 14(c)(3) land for the facility.We understand that the proposed site is located on land currently under lease for the village shop and existing bulk fuel tank farm and generator.A consolidation of these two leases and the lengthening of the overall lease term seems to be the appropriate approach for these facilities that will all be under the management of necessary before the new lease can be issued.An existing easement for the airport access road also impacts a small portion of this site and is to be avoided when sititig the new facilities.The approximate location of this easement is displayed on the attached drawing. Pedro Bay ANCSA 14(c)(3)land is managed on behalf of village residents and a future city that residents could form.Before ANCSA 14(c)(3)land can be made available or in this case a consolidation and extension of the existing Village Council lease,local residents must approve of the action.In Pedro Bay the Village Council has been recognized as the "Appropriate Village Entity”for representing the views of local residents and advising DCED on the acquisition and disposal of ANCSA 14(c)(3)land. We understand that the Council approves of the proposed lease changes and is prepared to formalize that approval with a written resolution and the signing of the lease forms. Based upon the Council's action DCED has begun the process to consolidate the leases for the 14(c)(3)land involved in the project.Besides the Council approval the process includes;1)approval by DCED,and 2)completion of the public notice to dispose of a parcel of ANCSA 14(c)(3)land. Pedro Bay Village Council"Promoting a healthy economy and strong communities”Site Control Documents Mr.Keith Jensen January 23,2004 Page Two It is the DCED's intent to issue a 30-year lease extension to the Council upon the completion of the land disposal process.Given the experience and capacity of the Council we believe that this is likely to be completed without problems or lengthy delays. Please contact Keith Jost at 269-4548 if you have any questions. Sincerely, tanr- Gene Kane Municipal Land Trust Officer Municipal Lands Trustee Program Enclosure:Drawing showing the approximate location of the airport access road. Casefile;34-0355 Pedro Bay Village CouncilSiteControlDocuments 9 359 syUaUINIO(][ONUODauSPouniogasakegorpedotPedro /'wed 7"_ ' 'LO \/aa Landfill '\ '\Ler L yyjANCSA14(c)(3);\'re '\- !DEED .:;(7f!34-0142 ,;iA:i!j |nfftWi j LANDFILL Pedro Bay ANCSA 14(c)SurveyjMacD:Plat 92-1034-0055 Tract 7j'LSE j 1-34-0227 COMM FA L 34-0495 54-0676 A100aaa at SS en -a \\<a” Bay ANCSA 14(c)Survey oeos State of Alaska «> Alaska Energy Authority ENERGY AUTHORITY Grant Agreement Grant Agreement Number Amount of Funds 2195196 $1,531,617.00 Project Code(s)Encumbrance Number/AR Project Title340212/350258 Pedro Bay Bulk Fuel and Powerplant Upgrades Grantee Authority Contact Person Name Name Pedro Bay Village d/b/a Pedro Bay Village David Lockard Council Street/PO Box Title P.O.Box 47020 Project Manager City/State/Zip Street/PO Box Pedro Bay,Alaska 99647-0020 813 W.Northern Lights Blvd Contact Person City/State/Zip Keith Jensen,President Anchorage,AK 99503 Phone Fax Phone Fax 907-850-2225 907-850-2221 907-269-4541 907-269-3044 AGREEMENT The Alaska Energy Authority (hereinafter 'Authority')and the Pedro Bay Village d/b/a Pedro Bay Village Council (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 $1,531,617.00,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:Waiver of Sovereign Immunity AMENDMENTS:Any fully executed amendments Appendix 5:Employer Identification Number App to this Agreement Appendix 6:EIN Power of Attorney Grantee AuthorityCDwn iePrintedNamexandTitlifiedName&nd TitleKeithJensen,Presiden ANTIIG \)Ronald W.Milles,Executive Director Date ii YO2-21.-OY b-[be Ob Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 2 of 21 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 the Grantor and also acts as an agent of the Grantee for certain functions relating to project design and construction as described herein. 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 Pedro Bay Village d/b/a Pedro Bay Village Council. e)"Grantor”means the Alaska Energy Authority. f)"Project”means the Pedro Bay Bulk Fuel and Powerplant Upgrades Project. g)"Procurement Manager”means the employee of the Authority who determines disputes as provided in Article C.Section 3. h)"State”means the State of Alaska. i)"Project Manager”means the employee of the Authority in charge of the Project. j)"Design Documents”are the technical documents and drawings specifying how the Project is constructed. k)"Construction Manager'means the on-site supervisor of the Project as assigned by the Authority.The Construction Manager may or may not be an employee of the Authority. 1)"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.5/03 H:Mjudd/Grants/2003/200304/Pedro Bay -2195196.doc Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 3 of 21 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. Section1.Description of Project and Scope of Work. This grant provides funding to be used for the design and construction of a new code compliant consolidated bulk fuel tank farm and powerplant upgrades in Pedro Bay, Alaska,as described more fully in the CDR Design dated July 8,2003,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. lf 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.5/03 H:Mjudd/Grants/2003/200304/Pedro Bay -2195196.doc Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 4 of 21 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: 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.5/03 H:Mjudd/Grants/2003/2003Q4/Pedro Bay -2195196.doc Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 5 of 21 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 11 or elsewhere herein);performance of final project inspection;and issuance of a Notice of Project Completion.Permitting and other items specified herein are the responsibility of the Grantee.The Construction Manager,who serves as an on-site representative of the Authority,has the right to hire and fire,and establish wage rates and work hours of Project employees. The Authority shall not be responsible for environmental investigation or remediation of the existing bulk fuel facilities or properties,or for any other environmental matters.In addition,the Authority will not be responsible for the removal and decommission of any existing facilities. If the funding sources for the Project include Indian Community Development Block Grant monies or Community Development Block Grant monies granted to the Grantee,the Authority may enter into a Grant Management Agreement with the Grantee in relation to some or all of those monies.If such agreement is entered into, the Authority may have additional duties as the agent of the Grantee as outlined in those Agreements which will be attached as an appendix hereto. Section 6.Grantee's Responsibilities a)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.5/03 H:Mjudd/Grants/2003/2003Q4/Pedro Bay 2195196.doc Pedro Bay Bulk Fue!and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 6 of 21 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 upon completion of the Project it is responsible for and willperformthoseactivitiesandfunctionsnecessaryfortheoperationandmaintenanceoftheProjectforthepublicbenefit,except for those that are expressly theresponsibilityofanotherpartyunderthisGrantAgreementoranyappendiceshereto.These responsibilities may not be altered or transferred without the prior written approval of the Denali Commission. AEA:Rev.5/03 H:Mjudd/Grants/2003/2003Q4/Pedro Bay -2195196.doc Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 7 of 21 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 goodcausebytheExecutiveDirector.The Procurement Manager shall notify the Granteeinwritingthatthetimefortheissuanceofadecisionhasbeenextendedandofthedatebywhichadecisionshallbeissued.The Procurement Manager shall furnish a AEA:Rev.5/03 H:Mjudd/Grants/2003/2003Q4/Pedro Bay -2195196.doc Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 8 of 21 f) h) i) 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 officers 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 Directorisfinalandconclusiveunlessappealedtosuperiorcourt,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.5/03 H:Mjudd/Grants/2003/2003Q4/Pedro Bay -2195196.doc Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 9 of 21 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 sovereignimmunitywhichitmaypossess,and consents to suit against itself or its officials,underthelawsoftheStateofAlaska,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 Granteeisanentitywhichpossessessovereignimmunity,it shall provide the Authority with aresolutionoftheGrantee's governing body waiving sovereign immunity,and such resolution shall be incorporated into this agreement as an Appendix. AEA:Rev.5/03 H:Mjudd/Grants/2003/2003Q4/Pedro Bay -2195196.doc Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 10 of 21 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.7 (Grantee Responsibilities after Project Completion),Art.C Sec.1 (Inspection and Retention of Records),Art.C Sec.9 (Compliance with Applicable Law and Funding Source Mechanisms),and Art.c Sec.12 (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,projectprioritization,pipelines and dispensers,project design capacity,and constructioncontainment,and the other applicable terms and conditions in Denali Commission Financial Assistance Award Number 0048-DC-2002-I1. AEA:Rev.5/03 H:Mjudd/Grants/2003/200304/Pedro Bay -2195196.doc Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 11 of 21 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 President 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.Therearenopromises,terms,conditions,or obligations regarding said funds other than those AEA:Rev.5/03 H:Mjudd/Grants/2003/2003Q4/Pedro Bay -2195196.doc Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 12 of 21 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: Keith Jensen,President Pedro Bay Village d/b/a Pedro Bay Village Council P.O.Box 47020 Pedro Bay,Alaska 99647-0020 Phone 907-850-2225 Fax 907-850-2221 AEA:Rev.5/03 H:Mjudd/Grants/2003/2003Q4/Pedro Bay -2195196.doc Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 13 of 21 Appendix 1 NOTICE OF PROJECT COMPLETION ALASKA ENERGY AUTHORITY Date: Project Name Pedro Bay Bulk Fuel and Powerplant Upgrades Project Contracting Party Pedro Bay Village d/b/a Pedro Bay Village Council Authority Contract No.2195196 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.2195196. Project Manager Date Alaska Energy Authority AEA:Rev.5/03 H:Mjudd/Grants/2003/2003Q4/Pedro Bay -2195196.doc Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 14 of 21 The Pedro Bay Village d/b/a Pedro Bay Village Council certifies that the Project named above is complete in accordance with the terms and conditions of Authority Agreement No.2195196. The Pedro Bay Village d/b/a Pedro Bay Village Council acknowledges and certifies that all expenses incurred by the Village under the Agreement have been paid in full.The Village further acknowledges that it can make no further claims for reimbursement. Authorized Signature (Title) (Name Printed)Date AEA:Rev.5/03 H:Mjudd/Grants/2003/2003Q4/Pedro Bay -2195196.doc Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 15 of 21 Appendix 2 FUNDING SOURCES AND TOTAL GRANT BUDGET Project Code 340212 $751,100.00 Project Code 350258 $780,517.00 Total AEA Grant $1,531,617.00 Total Project Budget $1,531,617.00 Anticipated Funding Allocation: Denali Commission:$1,531 ,617.00 AEA:Rev.5/03 H:Mjudd/Grants/2003/2003Q4/Pedro Bay -2195196.doc Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 16 of 21 Appendix 3 GRANTEE IN KIND CONTRIBUTIONS TO THE PROJECT The Grantee will provide,at no cost to the project the following: e Use of Grantee owned heavy equipment and tools. e Lodging for laborers as available. AEA:Rev.5/03 H:Mjudd/Grants/2003/2003Q4/Pedro Bay 2195196.doc Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 17 of 21 Appendix 4 WAIVER OF SOVEREIGN IMMUNITY AEA:Rev.5/03 H:Mjudd/Grants/2003/2003Q4/Pedro Bay 2195196.doc Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 18 of 21 WAIVER OF SOVEREIGN IMMUNITY RESOLUTION NUMBER IY-d3 A RESOLUTION OF THE PEDRO BAY VILLAGE D/B/A PEDRO BAY VILLAGE COUNCIL accepting State of Alaska,Alaska Energy Authority Grant number 2195196 for the Pedro Bay Bulk Fuel and Powerplant Upgrades Project and waiving sovereign immunity from suit for actions arising out of,or in connection with,the Grant. WHEREAS,the Authority and the Denali Commission requires as a condition of the Grant that the Pedro Bay Village d/b/a Pedro Bay Village Council irrevocably waive any sovereign immunity which it may possess,and consent to suit against itself or its officials as to all causes of action arising out of or in connection with the Grant Agreement; NOW THEREFORE BE IT RESOLVED THAT: 1.THE PEDRO BAY VILLAGE D/B/A PEDRO BAY VILLAGE COUNCIL (PBV) hereby consents to suit by the State of Alaska and/or by the Denali Commission against PBV and its officials in state court ,federal court or in administrative proceedings with respect to any disputes,claims or causes of action (including without limitation enforcement or injunctive relief)arising out of or in connection with Grant Agreement 2195196;,the contractual duties assumed by PBV under that agreement,the Secondary Operator Agreement,the Access,Operations,and Maintenance Agreement, the Covenant of Public Purpose,Use,and Access,and any other agreement pertaining to the grant-funded project;or the operation of the facility following construction. 2.PBV hereby consents to levy,execution,or garnishment against PBV's real and personal property,however held and wherever located,for any judgment or order entered in any lawsuit or administrative proceeding related to or arising out of Grant Agreement 2195196;,the contractual duties assumed by PBV under that agreement, the Secondary Operator Agreement,the Access,Operations,and Maintenance Agreement,the Covenant of Public Purpose,Use,and Access,and any other agreement pertaining to the grant-funded project;or the operation of the facility following construction,including,but not limited to,awards of attorneys fees and costs entered by any court. 3.PBV consents to the assertion by the State of any defenses,cross-claims,or counterclaims in any civil action that is filed by PBV against the state. 4.With respect to a claim or action by a force account employee or other employee of PBV arising out of or in connection with Grant Agreement 2195196;,the contractual duties assumed by PBV under that agreement,the Secondary Operator Agreement,the Access,Operations,and Maintenance Agreement,the Covenant of Public Purpose, Use,and Access,and any other agreement pertaining to the grant-funded project;or the operation of the facility following construction,PBV waives sovereign immunity to AEA:Rev.5/03 H:Mjudd/Grants/2003/2003Q4/Pedro Bay -2195196.doc Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 19 of 21 the extent of,and to the extent necessary to secure,insurance coverage including workers compensation insurance. 5.This waiver shall in no case be deemed a waiver or consent to suit,tax,or any other charge against PBV by any party other than the State of Alaska or the Denali Commission,except as specifically provided in (4)above. 6.Keith Jensen is hereby authorized to negotiate,administer and execute on behalf of PEDRO BAY VILLAGE D/B/A PEDRO BAY VILLAGE COUNCIL Grant number 2195196 for the Pedro Bay Bulk Fuel and Powerplant Upgrades Project and to negotiate,execute,and administer any other documents,agreements,and contracts required under or related to the Grant Agreement including subsequent amendments. PASSED AND APPROVED BY THE PEDRO BAY VILLAGE D/B/A PEDRO BAY VILLAGE COUNCIL On__Fes,974 2004. IN WITNESS THERETO BY:SIGNATURE OF PRESIDENT senate >Titel ree Vyoss Loe Attest:SIGNATURE OF CLERK/SECRETARY Signatue LE ts elle Title ALweiustn AEA:Rev.5/03 H:Mjudd/Grants/2003/2003Q4/Pedro Bay -2195196.doc Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 20 of 21 Appendix 5 EMPLOYER IDENTIFICATION NUMBER APPLICATION AEA:Rev.5/03 H:Mjudd/Grants/2003/2003Q4/Pedro Bay -2195196.doc om SO-4 Application for Employer Identification Number (For use by employers,corporations,partnerships,trusts,estates,churches,BNIndiantribalentities,certain individuals,and others.) internal Revenue Service >See separate instructions for each line.|>Keep a copy for your records. (Rev.Decernber 2001)government agencies,Depanment of the Trezay OMB No.1545-0003 1 Legainame of entity for individual)for whom the EINis being requested|___Pedro Bay Village Council22Tradenameofbusiness{ft dierent nun ame on fine 1)3 Executor,trustee,"care of name : Richards,Johnson &Granberry P-C. 1100 West Bamette Street,Suite 102 4a Mailing address (room,apt.,suite no.and street,of P.O.box)/5a Street address (if different)(Do not enter a P.O.box.) 4b City,State,and ZIP code ”Fairbanks,Alaska 99701 5b City,state,and ZIP code 6 County and state where principal business is located Typeorprint|7a Nameof principd officer,general partner,grantor,owner,or trustor |7b SSN,ITIN,or EIN 8a Type of entity (check only one box)C1)Sole proprietor (SSN):: (1 Estate (SSN of decedent) 0 Pitan administrator {SSN) C0 Parmership .(2 Tnist (SSN of grantor)(1 Corporation (enter form nunibe to be filed)> -(Personal service corp.TD Church or church-controlled organization C remic (0 Other nonprofit organization (specify)>V1 Other (specify)>Rural Energy Construction Grant 0 Nationa!Guard C statefocat government(-]Farmers'cooperativa [1].Federal govemmentinilitary C1 indan tid goverments/etterpises™ Group Exemption Number (GEN)> 8b "If a corporation,name the state or foreign country |State€applicable)where incorporated Foreign county 3 Reason for applying (check only one box) [J Started new business (specify type)> Compliance with IRS withtiolding requiations (1 Other (specify)> (J Banking purpase (specify purpose)>C]Changed type of organization (specify new type)>(1)purchased going business0Hiredemployees(Check the box and see line 12.)()Created a trust (specify type)>-([]Created a pension plan (specify type)> 10 Date business started or acquired (month,day,year)-11 Closing month of accounting year 12 'First date wages or annuitieswere paid or will be paid (month,day,year}.Note:if applicant is a withholding agent,enter dateincome willfirstbepaidtononresidentalien.(month,day,year)..13 Highest number of employees expectedin the next 12 months.Note:if the applicant does notexpecttohaveanyemployeesduringtheperiod,enter"-O-.".2.2...ke -> Agricuttural -Household Other 14 Check one box that best describes the principalactivity of your business O Health care &socialassstaice [1]Whobsde-agentorckerMAConnection(]Rentd &leasing ([)Transpotatin'&warchausng [1]Accommrodaticn &foodsenice []Whdesale-ohe ()RetalC1Realestte(]Mansfactuing (1 Farce &insvarce (1 othe (spedhy 45 Indicate principal line of merchanchse sold;specific constuction work done;products produced;or services provided. _.._Electric Power Upgrace&Bulk Fuel Tank'Farm 16a Has the applicant ever applied for an employer identification number for this or any other business?.Note:If *Yes,”please complete lines 16b and 16c. ...OC)Yes V1 No 16b_If you checked "Yes”on fine 16a,give applicant's legal name and trade name shown on prior application if different from line 1 or 2 above, Legal name >Trade name >-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 Carpe scion wy yoo wat aera ered Fad hee ais EN ad ber Guns aa compan a is om ;Third Designee's name . Party Stefani Dalrymple/Richards,Johnson &GranberryCPA P.C.Designer's telephore nurbe §rofuch ares cade) (907 )452-4156 Designee |Address and ZIP code1100WestBarnette St,Sfe.102,Fairbanks,AK 99701Underpenaltiesofperjury,|dedare that]have exavined this appitation,and to the best of my mnowledgeand befel Kis bus,cure,and omnis Designee's fax number §ndudearea code) (907 )456-2290 Yip Appicart'stdeptmenumizr(irchude re oodPo9SO-AQAS”Name and tile (type or print clearty)>-c.kpss.Uiee Pres SAE Applicant'sfaxnurrber§ndiude area code)Qu)250-222."Signaure .Date 7 -24,-04ForPrivacyActand\Phperwork Reduction Act Notice,see separate instructions.Cat.No.16055N Form SS-4 (Rev.12-2001) Form SS-4 (Rev.12-2001)«Page 2 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 iines 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--16c (as applicable)., Created a pension plan asaplanadministrator 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 Form W-8 (other than Form W-8EC}),avoid withholding onportfolioassets,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 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 (Le., 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, 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 C.B.581' Complete lines 1,2,4a-5b,8a,9,and 16a-c. Is a single-member LLC ' Needs an EIN to file Form 8832,Classification Election,for filing employment tax returns,or forstatereportingpurposes 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,alcohol,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-reiated purpose even if the entity does not have employees.. ?However,do not appily for a new EIN if the existing entity only (a)changed its business name,(b)elected on Form 8832 to change the way it is taxed (or iscoveredbythedefaultrules),or (c}terminated its partnership status because at ledst 50%of the total interests in partnership capital and profits were sold orexchangedwithina12-month period.(The EIN of the terminated partnership should continue to be used.See Regulations section 301 .6109-1(d)(2)(ii).) *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 plan is operated. *Entities applying to be a Qualified Intermediary (Ql)need a QI-EIN even 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 detaits on completing Form SS-4 for an LLC.*An existing corporation that is electing or revoking S corporation status should use its previousty-assigned EIN. © Pedro Bay Bulk Fuel and Powerplant Upgrades Project Grant Agreement Number 2195196 Page 21 of 21 Appendix 6 EIN POWER OF ATTORNEY AEA:Rev.8/03 H:Mjudd/Grants/2003/2003Q4/Pedro Bay -2195196.doc rorm 2048 Power of Attorney |_OMBNo,1545-0150 (Rev.Jaruaty 2002)and Declaration of Representative For IRS Use OnlyReceivedby:Deparonert of the Treasury .imernal Reverse Service >See the separate instructions.Name Gua Power of Attorney (Type or print.).Teepnone Function 1___Taxpayer information.Taxpayer(s)must sign and date this form on page 2,line 9.Date /_sef Taxpayer name(s)and address Social security number(s)|Employer identification Pedro Bay Village Council ,i i number P.O.Box 47020 Pedro Bay,Alaska 99647 :Daytime telephone number |Plan 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.....-..0----8005-72238R 'Arlene Koenig :Telephone No.........907/452-41561100WestBarnetteSt.,Ste.102 -.:Fax No._...-:......907/452:3156Fairbanks,Alaska 99701 Check if new:Address (Telephone No.[J Name and address CAF No._.._.8006-01437R _ Debra Gross Telephone No........-SO7/452-41564100WestBarnetteSt.,Ste.102 Fax No...........--907/452-3156Fairbanks,Alaska 99701 Check if new:Address ([)Telephone No.[] Name and address.CAF No.__.--a Stefani Dalrymple .:Telephone No.sone ----9OT7I452-4156 1100 West Barnette St.,Ste.102 Fax No....._.......907/452-3156 00 Fairbanks,Alaska 99701 Check if new:Address [9 Telephone No.()to represent the taxpayer(s)before the internal Revenue Service for the following tax matters: 3 Tax matters - 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 Ss4 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 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 notrecordedon CAF........-.0 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,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:_...--.-..-.---t-------------+.: 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 information.. Note:The tax matters partner of a 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 ENDORSE OR CASH,refund checks,initial here _____and list the name of that representative below. Name of representative to receive refund check(s)> For Paperwork Reduction aid Privacy Act Notice,see the separate instructions.Cat.No.71980)Form 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 representative fisted on line 2 unless you check one or more of the boxes below. a_lf you want the first representative listed on line 2 to receive the original,and yourself a copy,of such notices orcommunications,check this box .....ee ewbIfyoualsowantthesecondrepresentativelistedtoreceivea4copyofsuchnoticesandcommunications,'check this box,>O c_{f you do not want any notices or communications sent to your representative(s),check this box.......*O 8 Retentior/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 by this document.If you do not want to revoke a prior power of attorney,check here....2...oOYOUMUSTATTACHACOPYOFANYPOWEROFATTORNEYYOUWANTTOREMAININEFFECT. 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. DV ccc cecceeceeseeseeseeenevesensnenenenees 22.AL.ioe PresbSignatureDateTitle(if applicable} be)Sos cveevueeesneecttutentuevuvesseessueeseeeePrintName EE Signature=SSt : < S :';<C;<C;é AT]!«Tite GF applicable) PrintName SSS Part Il|Declaration of Representative Caution:Students with a special order to represent taxpayers in Qualified Low Income Taxpayer Clinics or the Student Tax ClinicProgram,see the separate instructions for Part Il. Under penalties of perjury,|declare that: e |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,concerning the practice of attorneys,certified public accountants,enrolled agents,enrolled actuaries,and others; ©|am authorized to represent the taxpayer(s)identifiedin Part t for the tax matter(s)specified there;and@|am 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-enrolled 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). Enrolied Actuary-enrolled as an actuary by the Joint Board for the Enrollment of Actuaries under 29 U.S.C.1242 (the authority to practice before the Sérvice is limited by section 10.3(d)(1)of Treasury Department Circular No.230). h _Unerrolled Return Preparer-an unenrolied return preparer under section 10.7(c)(1)(viil)of Treasury Department Circular No.230.>IF THIS DECLARATION OF REPRESENTATIVE IS NOT SIGNED AND DATED,THE POWER OF ATTORNEY WILL BE RETURNED.aQaaoandseDesignation-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. Pedro Bay Village Council 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 Denalt 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 {ts duties)to any corporation regularly engaged in the business of providing,in Alaska,the service bank is required to provide hereunder. 10.Bank may terminate the above account upon 30 days written notice to depositor and Denali Commission.After such termination bank will pay any account balance to the order of depositor. 11.Bank is deemed to have notice only when notice is actually received at its Escrow Department office, which does not include any branch office of bank. 12.A claim against bank is unenforceable unless an action is commenced within 90 days after termination of this agreement. Pedro Bay Village Council 2 R&R Fund Account -Sample Documents 13.Bank shall not be Hable 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 is authorized to supply to any third party any information regarding the above account which is required by any law,regulation,rule or court order (including without limitation any subpoena)now or bereafter in effect. 18.Bank shall not be responsible for preparing or filing any tax report or return nor for the payment of any tax assessed against,or with respect to,any of the assets of the above account or any transaction for the account of depositor. 19.Each and every right granted to either party hereunder or under any other document delivered hereunder or in connection herewith,or allowed it by law or equity,shall be cumulative and may be exercised from time to time.No failure on the part of either party to exercise,and no delay in exercising,any right will operate as a waiver thereof,nor will any single or partial exercise of any other right. 20.In case any provision in or obligation under this agreement shall be invalid,illegal or unenforceable in any jurisdiction,the validity,legality and enforceability of the remaining provisions shall not be amended or modified In any manner except by a written agreement executed by both parties.This agreement shall extend to and shall be binding upon the parties hereto,and their respective successors and assigns. 21,This agreement shall be construed in accordance with the substantive laws of the State of Alaska, without regard to conflicts of laws principles thereof.Depositor and bank hereby consent to the jurisdiction of a state or federal court situated in the Third Judicial District,State of Alaska,in connection with any dispute arising hereunder.Depositor hereby irrevocable waives,to the fullest extent permitted by applicable law,any objection which it may now or hereafter have to the laying of venue of any such proceeding brought In such a court and any claim that such proceeding brought in such a court has been brought in an inconvenient forum.Depositor and bank each hereby irrevocably waives any and all rights to trial by jury in any legal proceeding arising out of or relating to this agreement.To the extent that in any jurisdiction depositor may hereafter be entitled to claim,for itself or its assets, immunity from suit,execution,attachment (before or after judgment)or other legal process,depositor irrevocably agrees not to claim,and it hereby waives,such immunity. Pedro Bay Village Council 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: Pedro Bay Village Council 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 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. Pedro Bay Village Council 5 R&R Fund Account -Sample Documents Wells Fargo By:Date (Owner) Date By: Its: Taxpayer ID # Address: Pedro Bay Village Council 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): Baginning Balance $Payments of $Maturity Date Qo Monthly Oo Quarterly Q Sem+-Annually Os Anrwally First payment due:Interest start date Payments made in excess of the regular scheduled amount QO wil O will not satisfy future payments due. Excess funds a will Q will not be applied to prior gag interest based on Oo 360 days 0 365 days. Attached:DO Exhibit A Special Payment Provisions O Exhibit B Multiple Disbursements O Exhibit C Partial Releases OC sExhibit D Reserves Additional Instructions: You are authorized to charge my WF Account # Payer Signature G sfor the scheduled escrow payments,CO _sobalioon payments. Remit payments to payee: Address Or Credit Payments to:Oo Cashier's Check GO sE-F.T.(Enclose voided check) a Checking ©Savings:WF Acct.No.(Disbursement fees paid by payee per payment/transaction) Upon execution of this agreement the parties herein agree to pay fees in accordance with the current fee schedule,fees are collectedper0spaidOcollectfromfirstpayment.paymentiransaction.Set up fee: (Fees Subject to Change Without Notice)Fees Paid by:QsPayee Payer Os We request late payment monitoring (additional fee) Unless otherwise instructed,all service charges and fees will be charged to Payee. OD sDivide Equally and/orWF|s hereby authorized to Geliver,by mail or address as any one of the Payees shall desig At Payee's request when: (a)Any payment is delinquent 30 days or more;or(b)Payee furnishes WF evidence that Payer has received at least 20 days'written notice of Payee's intent to terminate,delivered byregisteredorcertifiedmail.At WF's option when: herein (a)One payment has been delinquent for three months and WF has provided 10 days'prior noticeto Payee and Payer.(b)Upon 30 days'prior written notice by WF to Payee and Payer. the to any one of the undersigned Payees for and on behalf of all Payees at any address given below or such otherinwritinguponPayee's requestoratWF's option underthefollowing conditions: We the undersigned have read this Agreement,inciuding the Terms and Conditions set forth on the reverse side,and understand the contents thereof and acknowledge that the terms of the Agreement are satisfactory toeachofus.Upon receipt by the Bank of the final payment,the Bank will deem the contract satisfied and the and/or will be to the Payer.Under penalty of perjury,|certify that the Social Security or Employer |.D.Number provided below is true,correct and complete,and |am not subject to backup withholding. Oate Date PLEASE PRINT NAME SOCIAL SECURITY NO.OR EMPLOYEE I.0.NO.PLEASE PRINT NAME SOCIAL SECURITY NO.OR EMPLOYEE 1.0.NO. X PAYEE (SELLER)SIGNATURE ADDRESS PLEASE PRINT NAME X SOCIAL SECURITY NO.OR EMPLOYEE 1.D.NO. PAYEE (SELLER)SIGNATURE X PAYER (BUYER)SIGNATURE ADDRESS PLEASE PRINT NAME SOCIAL SECURITY NO.OR EMPLOYEE |.D.NO. X PAYER (BUYER)SIGNATURE ADDRESS Received above kem(s)subject to conditions herein mentioned. Wells Fargo Bank Alaska. By Pedro Bay Village Council ADORESS PLEASE COMPLETE THIS AREA TO INSURE CORRECT ROUTING R&R Fund Account Sample Documents Wational Bank'Alaska 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 99510-0600 or such other address as may be directed by WF in the future.WF shall accept all payments tendered on this transaction,regardless of whether they are partial, full,or additional payments or whether they are tendered before or after the payment due date.WF shall have no duty or obligation to refuse any payment nor shail it be responsible for determining the sufficiency of any such payment unless 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 check fteceived by WF is dishonored upon presentment for any reason,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 promptly remit to WF the amount of such funds so disbursed by WF together with WF's then customary charge for the handling of returned checks,which charge shail 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. If WF does not receive such notice within 30 days,alt 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 behaif 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 hoid WF,its officers,employees,shareholders,attorneys,directors,agents and representatives harmless from and against,and to pay on demand all 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)|Todetermine if any agreement or document is in compliance with local,state,or federal laws and reguiations;(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; (p To determine if any payment schedule will amortize any obligation;(g)|To determine the sufficiency or verification of the account balances on any other previously or subsequently-recorded encumbrance or security interest against theproperty,including security interests which this collection agreement may,in whole or in part,satisfy;further,WF does not assume any responsibility fordeterminingifanypaymentsbeingmadebythisescrowtosatisfy,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; (n)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 uniess otherwise agreed in writing by WF;(j)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 defauit in the terms of the documents underlying this transaction; (I)To account or give credit for any payment made or received outside this collection; (m)To vote or exercise any of the rights of ownership of corporate stock or similar items deposited herewith;or(n)To perform any act not expressly set forth in this Agreement even though contained in any documents deposited herewith. The liability of WF for negligent performance,or negligent non-performance,shail be limited to the amount of charges or fees charged to the parties hereto,under thisAgreement,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 shail have a first and paramount lien on all documents,monies and things deposited in connection with this Agreement and the right of offset against any WF account of any party hereto to secure payment of ali costs,expenses,obligations and fees due WF. Agreement Controls.In the event of conflict or omission between the documents deposited in connection with this Agreement,this Agreement shall control as to WF.WF shall not be responsible for determining the existence of any such conflict or omission. Authority to Release Information.If any party to this Agreement sells or contracts to sell the property described in the documents deposited herewith,or applies for 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 shail be governed and interpreted in accordance with the laws oftheStateofAlaska,and any litigation arising out of or relating to this Agreement to which WF is a party shall be commenced and maintained only in the appropriate court of the Alaska State Court System,Third Judicial District,at Anchorage. Pedro Bay Village Council 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, Pedro Bay Village Council 9 R&R Fund Account -Sample Documents ATTACHMENT B How to Establish a Renewal and Replacement Account for Denali Commission Funded Public Infrastructure Background Under the guidelines of Denali Commission funding a community is required to have a business plan that outlines how the Denali Commission funded project will be operated and maintained.One of the conditions required in the business plan is a community established Renewal and Replacement (R&R)Account.An R&R account will provide a mechanism for the community to save money for the inevitable renewal and replacement costs associated with the facility. General Guidelines of a Renewal and Replacement Account e Allows community to make monthly deposits e Must be an interest bearing account e Only allows withdrawal of funds for Renewal and Replacement costs of the facility. o Requires a Resolution from the community certifying funds are being used for Renewal and Replacement expenses related to the facility that was partially or wholly funded by the Denali Commission. e Account must allow for Denali Commission and other Auditing agencies to monitor deposit and withdrawal activity (Monthly Reports on account activity must be sent to Denali Commission) Financial Institutions The Denali Commission has negotiated terms with two Financial Institutions that will allow for the unique guidelines of these R&R accounts.Other institutions that will allow accounts that meet the guidelines above are acceptable. First National Bank Wells Fargo Contact Person Lorraine O'Neal Jackie Zuspan Sr.Escrow Officer Escrow Manager First National Bank Operations Wells Fargo Center 301 West Northern Lights Blvd. 1751 Gambell St.Anchorage,AK 99503 Anchorage,AK 99501 Phone:(907)265-2162 Phone:(907)777-3424 Fax:(907)265-2170 Fax:(907)777-3446 Type of Account Escrow Managed "First Escrow Managed "Regular Investment'”Account Savings”Account Set-Up Fee $30.00 $35.00 Annual/Monthly Fee $50.00 Annual Fee and $5 $3 Monthly Fee until account monthly fee until account balance |balance is above $300 is above $2,500 Disbursement Fee $25.00 each time a community $5.00 each time (for a Money requests funds (through approved |Order)when a community resolution)requests funds (through approved resolution) Pedro Bay Village Council 10 R&R Fund Account -Sample Documents 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 TB% $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 Pedro Bay Village Council 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 Bulk Fuel Facility and Electric Facility equipment -operations and maintenance ("O&M”)and renewals and replacements ("R&R”). The Primary Operator will incur a number of expenses relating to the O&M of the facility and equipment. O&M items are defined as expenses that are incurred on a regular basis (administration,audits,etc)and maintenance expenses that are incurred on an annual basis.O&M expenses are detailed in Tables C¢>K: Annual OC7M Schedule/Costs and a narrative detail is provided in Section LX.Financial Information to address estimates and assumptions. R&R costs are those expenses define as items costing greater than $5,000 and/or that are not replaced on an annual basis.Tables G27M:40 Year R¢*R Schedule details the anticipated items,the frequency of their replacement and their present day value. The Primary Operator will maintain separate O&M and R&R accounts and will maintain a sufficient account balance to meet the O&M and R&R financial goals in this Plan.The O&M account may be an active non- interest bearing account.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 authorization of the Primary Operator's management or governing body.See AppendixA:Statement ofQuatification for an overview of the Primary Operator's fiscal controls and accounting procedures.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 may be transferred to an interest-bearing invested escrow account that is acceptable to the Denali Commission.See Attachment 4:RC*R Fund Account --Sample Documents,for examples of acceptable R&R account agreements and a sample community resolution that limits the use of the funds to R&R expenses only. At least once a year,no later than August 31,the Primary Operator will develop a budget for the upcoming fiscal year,October 1 through September 31,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 LX.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 Bulk Fuel Facility and Electric Facility O&M so that the O&M schedule can be completed and the Facility operations can be sustained into the future (this ts anticipated to be an active non-interest beating account).Section IX.Financial Information provides Tables C@7K: Annual O@M Schedule/Costs as a guide to plan for annual maintenance activities and Tables De7L:40 Year Oe>M Schedule/Cashflow as a guide to estimated yearly O&M required contributions. Renewal and Replacement Guidelines The Primary Operator shall establish an interest bearing escrow managed renewal and replacement accountacceptabletotheDenaliCommission,which will ensure capitalization of an amount sufficient to maintain theR&R Schedule (see Re”R Fund Account -Sample Documents for "How to Establish a RC*R Account').Section IX.Financial Information provides Tables G¢7M:40 Year R&R Schedule as a guide to plan for annual R&R activitiesandTablesH&N:40 Year RC*R Cashflow as a guide to estimate annual R&R required contributions.These costs are based on the R&R cost estimate provided in Appendix B and C:O&M and RC*R Cost Estimate. The Primary Operator will use the estimates in this Plan for year one contributions,and in subsequent years will recalculate contributions based upon actual costs. Pedro Bay Village Council 12 R&R Fund Account -Sample Documents ATTACHMENT D 40 YEAR RENEWAL AND REPLACEMENT CASHFLOW Council Inflation Rate :Initial Cost per gallon ($/gallon):[- Reimvestment Rate :20 Year R&R:Annual increase : Escrow Fees:20 Year Loan Proceeds:Counal Inital Throughput (gallons):NA NA __Inital Throughput (gallons):Initial Cost per gallon ($/gallon): Loan Rate:|-NA _Initial Throughput (gallons):[-Annual increase : Loan Term:NA Initial Cost per gallon ($/pallon): Annual increase : R &R Fund Balance Assumed Throughput (Gallons)Per Gallon Payment of Annual Deposit .Interest End ofYearalPrincipal|Debt Service |,Renewals'|camnings (Net Year Council NA NA Council NA NA Balance Counell NA NA Total Received Replacements |"¢Fees)Balance 1 $-$5,525 |$$$5,525 $-|$-|$5,525 55,250 --$0.100 |$$ 2 $5,525 |$5,730 |$$$5,730 $-|$111]$11,365 55,631 -:$0.103 |$$ i3]18 11,365 |$5,943 |$$$5,943 $-1$2271$17,535 56,014 -:$0.106 |$$ 4 $17,535 |$6,163 |$$$6,163 $-|$3511$24,049 56,400 --$0.109 1 $$S|is 24049[$63021 §$$6392 $1,065 /$460|$29,855 56,789 --|[s 0.113 |$$ 6 $29,855 |§6,629 |$$$6,629 $-|$597|$37,081 57,181 :-|[$s 0.116]$$ 7 $37,081 |$6,875 |$$$6,875 $-4$742 |$44,698 $7,576 --$0.119 |$$ 8 $44,698 |$7,130 |$$$7,130 $-|$8941 §$$2,722 57,973 -:$0.123 |§$ 9 $52,722 |$7,395 |$$$7,395 $-|$1,054 |$61,171 $8,374 ::$0.127 |$$ 10 $61,171 |$7,669 |$$$7,669 $23,500 |$7531 $46,094 58,777 :-$0.130 |$$ 11 $46,094 |$7,954 |$$$7,954 $-1[$922 |$54,969 59,183 -:$0.134 |$$ 12 $54,969 |$8,249 |$$$8,249 $-1$1,099 |$64,318 59,593 --$0.138 |$$ AB]1S 64,318 |$8,555 |$$$8,555 $-|$1,286 |§74,159 60,005 --$0.1431 §$ 14}]s 74159[$§8,873 |$$$8,873 $-[s 1,483 [§84,515 60,420 --lIs 0.1471$$15 |$84,5151 $9,202 |$$$9,202 $1,213 |$1,666 |$94,170 60,838 ::$0.151 1 $$ 167 /$94,170 |$9,544 |$$$9,544 $-|[$1,883 |$105,598 61,260 --$0.156 1 $$ AT][S$105,598 1 $9,899 |$$$9,899 $-1$2112]$117,608 61,684 -:$0.160 |$$ 18 $117,608]$10,266 |$$$10,266 $-1$2,3521$130,227 62,112 ::$0.165 1 $$"19 |$ 130,227/$10,647 |$$$10,647 $-1$2,605 {$143,479 62,542 -:$0.170 |$$"20 |$143,479 1 $11,043 |$$$11,043 |$54,708 $91,180 |$2,140 ]$120,190 62,976 --$0.175 1$$21 |$120,190]$11,453 |$$$11,453 $7,258 1 $-1$2,259 ]$126,644 63,413 --$0.181 1 $$22 |$126,644]$11,879 |$$$11,879 $7,258 |$-1$2,388)$133,652 63,853 -:$0.186 |$$23 |$133,652]$12,320 |$$$12,320 $7,258 |$-|$2,528{$141,242 64,297 ::$0.192 |$$ 24 $ 141,242|$12,778 |$$$12,778 $7,258 1 $-|$2,680 ]$149,441 64,743 -:$0.197 |$$ 25 $149,441 1}$13,252 |$$$13,252 $7,258 |$1,408 |$2,816]$156,843 65,193 --$0.203 |$$"26 |$156,843 /$13,745 |$$$13,745 $7258 |$-{$2,992 1$166,322 65,646 :-$0.209 |$$27 |$166,322]$14,256 |$$$14,256 $7,258 |$-|$3,181 |$176,500 66,102 :-$0.216 1 $$"28 |$176,500 |$14,785 |$$$14,785 $7,258 |$-1$3,385 ]$187,413 66,562 ::$0.222 1 §$ 29 $187,413 ]$15,335 |$$$15,335 $7,258 |$-1$3,603 |$199,093 67,025 -:$0.229 |$$|30 |$199,093 1 $15,905 |§$$$15,905 $7,258 |$31,651 |$3,204]$179,293 67,492 --$0.236 |$$ 31 $ 179,2931$16,496 |$$$16,496 $-|$3,586 |$199,375 67,962 --$0.243 1$$ 32 $199,375]$§17,109 |$$$17,109 $-{$3,987 |$220,472 68,435 ::$0.250 |$$ 33 $220,472 |$17,745 |$$$17,745 $-|$4,409 |$242,626 68,912 ::$0.258 |$$3414S 242,626/$18,405 |$$$18,405 $-|$4853|$265,884 69,392 :-|1s 0.265 |$$ 35 $265,884 |$19,089 |$$$19,089 $1,634 |$5,285 |$288,624 69,876 ::$0.273 |$$ 36 $288,624 |$19,799 |$$$19,799 $-|$5,772]$314,196 70363 -:$0.281 |$$ 371 1$314,196]$20,536 |$$$20,536 $-|$6,2841$341,016 70,854 :-]1s 0.290 |$$38 |$ 341,016|$21,299 |$$$21,299 $-|$6,820]$369,135 71,349 --$0.299 |$$39|1$369,135 1 $22,091 |$$$22,091 $-{$7383 |$398,609 71,847 :-]48 0.307 |$$"40|4$398,609]22.913;$$$$22.913[$-$ 390,52715 -|[$30,995 72,348 :-1{$0317{$$ Pedro Bay Village Council R&R Fund Account -Sample Documents 13 ATTACHMENT E 40 YEAR RENEWAL AND REPLACEMENT CASHFLOW R &R Fund Balance Assumed R&R Year me of Annual Renewals/Eaminge (Net ingot Collectable Surcharge Balance Deposits Replacements of Fees)Balance KwH/Year $/KwH 1 $-$8,530 |$-|$-|$8,530 170,595 $0.050 2 3 8,530 |$8,615 |$-|$256 |$17,401 172,301 $0.050 3 $17,401 |$8,701 |$-|$522 |$26,624 174,024 $0.050 Inflation Rate : 4 $26,624 |$8,788 |$-|$799 |$36,211 175,764 $0.050 Reinvestment Rate : 5 $36,211 |$8,876 |$5,657 |$917 |$40,346 177,522 $0.050 | 6 '$40,346 1 $10,758 |$-1$1,210 |$52,314 179,297 $0.060 7 ls 52,314 |$10,865 |$-|$1,569 |$64,749 181,090 $0.060 Invested Escrow Fees: 8 $64,749 |$10,974 |$-|$1,942 |$77,666 182,901 $0.060 9 $77,666 |$11,084 |$-1$2,330 |$91,079 184,730 $0.060 | 10 $91,079 |$11,195]$47,483 |$1,308 |$56,099 186,577 $0.060 11 $56,099 |$13,191 |$-{$1,683 |$70,973 188,443 $0.070 Initial KWH Collectable : 12 |$70,973 |$13,323 1 $-|$2,129 |$86,425 190,327 $0.070 Initial Cost per KwH : 13 $86,425 |$13,456 |$-1$2,593 |$102,474 192,231 $0.070 5 year step cost increase : 14 $102,474]$13,591 |$-|$3,074}$119,139 194,153 $0.070 15 $119,139]$13,727 |$12,777 |$3,191 |$123,279 196,095 $0.070 16 $ 123,279|$15,844 |$-|$3,698 |$142,822 198,055 $0.080 17 $142,822 |$16,003 |$-|$4,285 |$163,109 200,036 $0.080 18 $163,109 |$16,163 |$-|$§4,893 |$184,165 202,036 $0.080 19 $184,165 |$16,325 |$-|$3,683 |$204,173 204,057 $0.080 | 20 $204,173 |$16,488 |$155,560 |$-{|$65,101 206,097 $0.080 21 $65,101 |$18,734 |$-|$1,302 |$85,137 208,158 $0.090 22 $85,137 |$18,922 |$-|$1,703 }$105,761 210,240 $0.090 23 $105,761 |$19,111 |$-|$2,115 1$126,987 212,342 $0.090 24 $126,987 |$19,302 |$-|$2,540 |$148,829 214,466 $0.090 25 $148,829]$19,495 |$7,620 |$2,824 |$163,529 216,610 $0.090 | 26 $163,529 |$21,878 |$-1$3,271 |$188,677 218,776 $0.100 27 $188,677]$22,096 |$-1$3,774 |$214,547 220,964 $0.100 28 $214,547]$22,317 |$-|$4,291 |$241,155 223,174 $0.100 29 $241,155]$22,541 |$-|$4,823 |$268,519 225,406 $0.100 30 $268,519 |$22,766 |$63,145 |$4,107 |$232,247 227,660 $0.100 31 $232,247 |$25,293 |$-|$4,645]$262,185 229,936 $0.110 32 $262,185 |$25,546 |$-|$5,244]$292,974 232,236 $0.110 33 $292,974}$25,801 |$-|[$5,859 |$324,635 234,558 $0.110 34 $324,635 ]$26,059 |$-|$6,493 |$357,187 236,904 $0.110 35 $357,187 |$26,320 |$18,079 |$6,782 |$372,210 239,273 $0.110 36 $ 372,210|$29,000 |$-|$7,444 |$408,654 241,665 $0.120 37 $408,654 |$29,290 |$-|$8,173 |$446,117 244,082 $0.120 38 $446,117 |$29,583 |$-|$8,922 |$484,622 246,523 $0.120 39 $484,622 |$29,879 1$-|$9,692 |$524,193 248,988 $0.120 40 $524,193 |$30,1771 $350,795 |$-|$203,576 251,478 $0.120 Pedro Bay Village Council R&R Fund Account -Sample Documents Pedro Bay Waste Heat/Power Agreement The following represents an Agreement effective July 1,2004 between the Pedro Bay Village Council,herein referred to as "Council”,and The Lake and Peninsula Borough School District, herein referred to as "District”. The Council agrees to provide the District 120/240V,60 CYCLE,1PH electrical service to the Pedro Bay School facility.The Council will provide necessary metered electric service to the school facility,including all switch gear necessary to allow the District to operate District generators.The District agrees to pay $0.33/kWh for all electricity used.The District will not be required to pay for Brown Power supplied by the Council (power not conforming to rated voltage +/-10%and rated cycles +/-1%of that listed above).Meters,which are located on or in the Pedro Bay School generator facility,shall be read monthly and a billing prepared by the Council and forwarded to the District.The District will pay such a bill within 30 days upon receipt. Failure to receive payments for electricity supplied by the Council to the District within 40 days following the end of the month will result in disconnection of service without notice. Disconnection of electrical service does not alter the remaining provision of this agreement - Within 30 days after a five year period ending June 30",either party may request to renegotiate the price charged for electricity for a subsequent five year period.If the Council and the District cannot agree upon a kWh price for electricity with 90 days of the request,either the Council or the District can opt to terminate electrical service after 90 days by giving written notice. In return for free waste heat from the Council the District will during the duration of this agreement. 1)Allow the Council to renovate and upgrade the existing Pedro Bay school generator facility for use by the Council to house its generators,waste heat,and switching equipment.The required modifications to the District's existing generator facility, including but not limited to required metering for school electric service,shall be constructed at no cost to the District.The Council will coordinate with the District on the design and installation of generators,waste heat equipment,and switch gear.Installation of equipment will not interfere with school operations or limit the District's ability to operate its own generators and heating system.The District shall reserve the night to inspect and approve the generator facility and equipment selection and installation.Any modifications and or corrections required by the District to the generator facility shall be performed by the Council,at Council expense,prior to Council's occupancy of the facility. 2)Allow the Council to utilize District's existing storage tank area (2-10,000 gallon fuel tanks).The Council will be required to provide the District fuel oil on an as needed basis at the Council's landed cost.The Council will be responsible for metering and record keeping in accordance with District requirements for fuel oil supplied to the District. Existing fuel in the District's tanks at the time of start-up of the renovated generator facility will be purchased by the Council at current replacement cost. 3)Provide required easements and access to the Council as required for fuel lines,power distribution lines and access to Council electrical equipment. There will be no compensation to the District for Council's use of the generator facility and fuel storage other than the waste heat provided for in this agreement.The Council will assume all responsibility and liability for the generator facility,generators,distribution system,distribution lines,fuel storage tanks,and connecting fuel line(s).Council will indemnify and hold the District Pedro Bay Agreement Page |of3 February 11,2004 Pedro Bay Waste Heat/Power Agreement harmless for all claims of property damage or personal injury arising from the Council's power production,power distribution and the storage of the Council's fuel in the District's tanks. In return,as good and due consideration,the Council will provide free waste heat to the District up to the capacity of the generator's (and any upgraded generation capacity)ability to generate waste heat.The District will be responsible for pumping waste heat through the District's waste heat loop.In the event that the Council's generators have the capacity to generate waste heat in "excess”of the District's demand,the Council may use this "excess”waste heat.It is understood and agreed that the Council's use of waste heat shall not limit or interfere with the District's use of the waste heat.It is also understood that in the event of a mechanical breakdown,which would prevent the operation of the Council's generators to generate electricity and waste heat,that the District shall maintain capacity to generate it's own electricity and heat until the Council generators are in operation again. The Council will allow the District access to the generator facility for approved modifications and subsequent inspection and/or maintenance and operation of school heating and water system, waste heat equipment and stand-by generation.The District will allow the Council reasonable access to the Pedro Bay School site for operation,maintenance and upkeep of the Council's generators and waste heat delivery system. It is agreed that the maintenance of the waste heat system will be the responsibility of the District and generator system located on the Council's side of the generator facility will be the responsibility of the Council.The Council will be responsible for the electrical service lines and equipment to the school site up to and including meters. The Council will indemnify and hold the District harmless for claims of property damage or personal injury arising from the Council's operation of its power production facility,including sale and distribution of power or lack thereof.The Council shall be liable to the District for property damages and or additional incurred cost due to its failure to provide fuel oil to the District.The Council shall maintain liability insurance for it's Council operations,naming the District as an additional insured in regards to the generator facility and its contents. At termination,the Council will be entitled to remove all electrical and generator equipment that it has installed in the generator facility.At termination the District will be allowed to purchase all or any portion of the remaining Council's fuel oil left in the District's tanks at the Council's cost. At termination any fuel not purchased by the District will be removed by the Council within Two (2)weeks of termination.At termination the Council will vacate,within 30 days,the generator facility. This agreement will be automatically renewed at the end of five (5)years for an additional five (5)years unless either the District or the Council objects within thirty (30)days prior to the end of the initial five (5)year period. If either the District or the Council objects,the parties shall meet to renegotiate for an additional five (5)year term.If the parties are unable to negotiate for an agreement for additional five (5) year term,the agreement shall terminate. This agreement will be binding on all subsequent organization,and/or political subdivision evolving from the Council and District. Pedro Bay Agreement Page 2 of 3 February 11,2004 Pedro Bay Waste Heat/Power Agreement The above hereto mutually agreed to on the date indicated below being duly authorized by their respective organizations. THE LAKE AND PENINSULA SCHOOL DISTRICT ay Vlows -2M /oxStephen@Atwater,Chief $chool Administrator Date PEDRO BAY VILLAGE COUNCIL \4 CO )a 2{ CPresidkht,Pedro Bay Village Council Date Pedro Bay Agreement Page 3 of 3 February 11,2004 "ONONAIDEA/AEAIN CNNANANRANANNIANIANININOSPedro Bay Village Council Bulk Fuel Facility &Electric Utility Upgrade Business Operating Plan 2/25/04 Alaska Lrergy Aythority