Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Tenakee Springs Bulk Fuel Facility & Electric Utility Upgrade Project Aug 1, 2005
' Business Operating Plan of the Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Project AUGUST 1,2005 City of Tenakee Springs P.O.Box 52 Tenakee Springs,AK 99841 Phone:(907)736-2207 Fax:(907)736-2207 TABLE OF CONTENTS PAGE I.EXECUTIVE SUMMARY ......csccsccsscceccccsccssecceccoscssccsscccscsccavacccccusstnssausccusceuesencacescenecapespessceseneccusscossees 3 Document Interrelationships .......scsccescsessesssesseessesscssecseeessssssssecseesnenseesscesecseseseessssseqsecaucesessessasanseseenscanersesaseeneessenneess 3 II.BACKGROUND .....cccccoscvnvcsssscavacccccccccesscesscceveusconsssesccesensssenseeeseeenseaseancenassenssaaseaascoessnsssensnoessosssoscaucess 4 Selected Statistics -Tenakee Springs ....ccssesssessssesseeseessscsssesseessscsssessecessessecssecssecsseessecssscsseceueesscssecesnecssesnscessensneses 4 TIT.BULK FUEL FACILITY UPGRADE..........ccccssscssssssssssssssscecccecesssssccceeesscssssssscsncseassossscnncccaacassosssscccceeseoes 5 Bulk Fuel Storage Facility Descriptioti.......ssecssessseesssessessssssssesssesssecssecssenssessecesseensensvessecaseceneesnesssseaneceucecnsssneenneenaees 5 Project Exclusions ......csccsscssssssssessessssssessecsssssesseessessesssssseeseeseessessssaseenessneconssacsneesecsuesanssecanecseesecsssssesssseassavenvenseeenenss 5 Community Bulk Fuel Storage Facility Site Plan and Details.......ccccssssssesseeseessssssssesseesnesneessesneeneesensesseanees 5 Bulk Fuel Storage Facility Capacity.....cssssssesssssssssssseesssssssessssssesssseesecsssesssssssessscssecssecsssssueesscessecanecsnecaseesnecsnecesessae 8 TV.ELECTRIC POWER UPGRADE .........sssssccsscccssccsccessnsssseccccccnasssscssesevescosssensovsccoessesrsvescnscscscorsssesscasenenss 9 Electric Power Generation Facility Descriptionn......cccsesesssssessessessesseseeseeseeseesessssseassenesneesseesnsessaeseenssaneneeseeneens 9 Project Exclusions .....scscssssssssssssssssesssesseesscesssessssssssssessssssecesecesccsuecesssensesseesueccasecsessneqsaceaecnsanneesnsecaecnecarseaenneenensy 9 Electric Power Generation Facility Capacity......cssssssssssecssecssessessessssssssesessneesneessessessseesesseceseenueennesseeeaeeaneenneeey 9 Project Site and Layout Plat.....secsssscssecsssesssesssssecsscssseceeneesssecsseessnsecsnesssaseeseassvessuscqunecaueccusstsnetausocseeenansecneceasetsnee 9 Vi.«---PRIMARY OPERATOR .......ssssssssssssssscccscccccccsccssceseesecccceeeessoeseseccoesrssseseccssccccccccsccsesarosecossenevevesevovsseoees 22 Turnover and Assumption of Responsibilities /Sustainability......scsccsssssssescssusesssseecsseessssuecesnecssnnecssneecennneeseey 12 Staffing and Traiming......ccsseccssscsssesssecssneesssessssecssecssssesssscsssessssccsnescssesnesecaressavesnisessasecaseccasensnetsaecnesenneceasesensenensetey 12 Financial Responsibilities .......cescsssesssesssssessessssecssecsssecssecsssccessecsssecesacessnesessessnensnecsansecnessasesnssessusseaneeraseccunecennensaneeey 13 Operations and Maintenance Guidelines.......ccsssesssecsseeessnecssneesssneessnasecsneessnacecsneesnnsenssuseecsuessnareesanseeenarersanaees 13 Renewal and Replacement Guidelines .......cccssecssscssesssessssssessecsessnecssecensesusesneecusecuessaeesneeaneecussaneensesensecncenneenneceaneey 14 Audits and Reporting ....scscscssssssessseessseesssesssecsseesssscsnecssseecssscsssesssensaseccnnessarsensessusscaseccarecanetsasesnsessneeeaseseanesanseseanes 14 VI.SECONDARY OPERATOR ........ccccescsssscssccescccsccsccessecsscnsscasssssceeescesssescccsscnssnsconsnssecsousccesscassaosscesscassosss 15 VIL.INSURANCE.......cccccssssscccccessssscccensosscesectarssesssessescecssnssscsessscassssscceeesnsccscecnssssessnaancesseenanseseseees 16 VIII.REGULATORY COMPLIANCE.....cssssssecsccssssssssssscessssssssnoceesensscccensessssssscceeeesssssssnssseesasssceceseensaseenaceesoons 17 IX.FINANCIAL INFORMATION ......cccccssscsscssccscccccccnccescescnscnscnsseesessessessesseseseneeuensnsesescessansesscssssccscosscocones 18 Key Financial Assumptions «.....sscsccssssseesseessseessssesssessnssesnsersnsecnseessnessanecsurecsnsennrecevecssasssaneessnesssuesassesasessanecanissneseense 18 Key Operating Assumptions ....csscssssescsssssssnsecsnsecssssesssnsessnsessnecensancesnseeesuessastssrnnencaeessnnsssansesesnesssecensnaessneses 18 Project Funding....ccssecssssssessssecsssessseccsecsseessssessseesssessaseesneesareesaseceusetsneessaecseeeenorsnesasassssuessanessnsessanessnesssaeeaseensestsnes 19 Subsequent Operating Year Revisions ....sssecssssecssssecsnsercneeessnsecssreesnerecsseressneesssesssnecssssssssnsecsancnsaneesssessesnseseey 19 FINANCIAL TABLES -ELECTRIC POWER UTILITY .......ccscccssccscscconssccsasscccsceccsssrsessesccccesonssssescsscosenacs 20 Table A:40 Year Estimated Utility Net Income and Cash flow......seessecsseseecesseenetsneeseeaereescstesneeaneenrersntennes 21 Table B:Power Generation and Consumption Summary ....sscssscssessesssescnserneeeneeceesneecneecneesnessseesneecneeaseeantenseenes 22 Table C:Annual O&M Schedule ..ccccccccccscsssseccecsessssssscesessesssssesscesensseessseseesseseceessesessseecedeaseassedeseseasasseseeneeeeases 23 Table D:40 Year O&M Schedule...ccccccssccccssssssssssssssssessessssssscsesensceseseseseessseceeenesessessseseasuessssusoaessassassseseseceses 24 Table E:Annual Fuel Costs .ccccccccsssssscssssssssesssescssesessssesesecsesscssssseessseenseasseecessseseseesssesessssaussseseuneeseseeseaeeeasenteatanens 25 Table F:Annual G&A and Depreciation Expenses .....scsssssssesssessessecssnessneseeneccssnsssnssneeaescneeneenecaeennenneeanenne 26 Table G:40 Year R&R Schedule oovccccccccsccssssscssscsecsscssssssscsscsesrcsnsssssssasssseseseesesseceescsaeeascsseasassasanenesesnssenesses 27 Table H:40 Year R&R Cash flow...ccccccsssesssssssssscssssesesesssscssessesesecssseseacesssseensecessseesseneeseseneeseeeedsesasssesnessensssesense 28 FINANCIAL TABLES -BULK FUEL STORAGE.......cccsssccscssososssnncesccescocoseeessuressessccssccssesesssssennesscasananaass 29 Table I:Summary of Facility Expenses to Participants......esccssscsseerscesnseessesssssessssnenssseessanecssnsesssneensnneenssass 30 Table J:Participant Allocation...csscsssecssssescssessnesesnnecesnneecsnetessnntersanesssssessatecsssssssseesssnecnsassccssnscssnasseananensnnsensens 31 Table K:Annual O&M Costs.cccccccccssssssssssssscsssssecescsssssscssesesessessssssesessessenessesseseasecestserecsesesseassssensdsansssesseseeassengsanes 31 Table L:40 Year O&M Cash flow..teccsssssscssccsssssssscscscssssssssessscessssssssssseseeseseessssesenesessessssecsecasassesesasevessssanaseeeseenenees 32 Table M:40 Year R&R Schedule ..ccccccccssssssssscsssscsesecsscsssssessesessessssesseceacseeseecsseecersrssseossssanessessasesneserensteeesnenes 33 Table N:40 Year R&R Cashflow...cccccsccssssssssssssssscsssssssssssesessssssssssesessenssecsesceaqeseaeeececsessseeessssssussassssessnesenensersseneees 34 Table O:Loan Schedules ....c.c.ccessssssssssscsscscssssescssscsssscssssccsessesssscccesenenececcessesseseseseseadesssescssecssssusonesesneessessasneeeseneass 36 City of Tenakee Springs 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 AGREEMENT 4.R&R FUND ACCOUNT --SAMPLE DOCUMENTS City of Tenakee Springs Bulk Fuel Facility and Electric 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 City of Tenakee Spring's (the "City'””)maintenance,operation and sustainability of a new Bulk Fuel Storage and Electric Power Generation Facility (the "Facility”).The City will be responsible to operate and maintain the newly installed Facility and to ensure its ongoing sustainability.For the new Facility,the Plan includes minimum estimates of operation and maintenance needs and costs,renewal and replacement needs and costs,a per kilowatt hour (KwH)surcharge for residential and commercial users,total electrical costs and a per gallon surcharge for fuel.The financial tables should be reviewed and recalculated annually.For the electric utility,Tab A:40 Year Estimated Utility Net Income and Cashflow includes ptojections of utility revenues and expenses with resulting annual net income and cashflow as well as the estimated retail price per kidlowatt-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 Table I:Summary of Facility 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 Tenakee Springs that will replace all of the existing storage facilities of the City.The City will utilize its Facility assets to operate City owned facilities and will directly retail fuel.The Rural Power System Upgrade Program will construct a New Electric Power Generation Facility in Tenakee Springs. Upon construction,the Facility will be turned over to the management of the City (the "Primary Operator')after the satisfactory completion,as determined by the Alaska Energy Authority (AEA) 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 1s ready for Beneficial Occupancy.Upon receipt of this Certificate,the City will become the Primary Operator and will assume responsibility for the use,day-to-day operations,and long-term maintenance of all Facility components,except those noted elsewhere in the Plan.When the project has been completed (the Facility is complete, crews have demobilized,invoices have been paid and there are no outstanding issues),the AEA will issue,through its Grants Manager,a Notice of Project Completion.This Notice is included in the Grant Agreement;see Additional Related and Attached Documents. Document Interrelationships Attached to this Plan are the following: e Secondary Operator Agreement e Site Control Documents e Grant Agreement e R&R Fund Account -Sample Documents The Secondary Operator Agreement references the Plan,and includes language requiring the Plan be followed.The Plan takes effect after this Agreement is executed.Acceptance of the Plan by execution of this Agreement is pre-requisite to funding from the Denali Commission (the "Commission”),which will be provided through separate Grant Agreement (See Attachments). City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 3 of 37 II.BACKGROUND The Denali Commission was established by the Federal Government to fund improvement projects within the State of Alaska,including the Bulk Fuel 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 Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Project,which is to be partially funded by the Commission. Tenakee Springs is located on the east side of Chichagof Island,45 miles southwest of Juneau and 50 miles northeast of Sitka.Tenakee Springs is predominately a retirement community and summer retreat for Juneau and Sitka residents.Many residents practice a subsistence lifestyle and actively exchange resources with their neighbors.Although Tenakee Springs has long been considered a retirement community,a limited number of residents hold commercial fishing permits.Additionally, tourism is becoming increasingly important to the local economy.Currently,the City and the store are the only local employers. Tenakee Springs has no community water,sewer or refuse service.Residents haul water from local streams or use individual wells.The City owns and operates the electric utility.Tenakee Springs 1s dependent on seaplanes and the Alaska Marine Highway System (AMHS)for transport.The State of Alaska owns a seaplane base and heliport,and scheduled or chartered float planes are available from Juneau.The AMHS provides passenger transportation only,since there are no vehicle-landing facilities or local roads in Tenakee Springs.Barges deliver fuel and goods six times a year and the marine facilities include a small boat harbor and ferry terminal.Local transportation is primarily by bicycle or ATV. Selected demographic and historical data for the community is provided below: Selected Statistics -Tenakee Springs Population 2000 104 1990 94 1980 138 1970 86 1960 109 1950 140 Housing (2000 Data) Occupied Housing 59 Vacant Housing Due to Seasonal Use 79 Other Vacant Housing 6 Economic Data (2000 Data) Unemployment Rate 13.7% Median Household Income $33,125 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 4 of 37 III.BULK FUEL FACILITY UPGRADE The Bulk Fuel Upgrade Project will construct a new Bulk Fuel Storage Facility in Tenakee Springs that will replace all of the existing storage facilities of the City (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 August 23,2004.The purpose of the CDR is to provide a concept design and construction cost estimate for consolidation and upgrade of bulk fuel storage/electric power in the community,which are referenced in this Plan.This Plan is based upon the information contained in the CDR. The new bulk fuel and power plant Facility will be located near the intersection of E Street and Chichagof Avenue,up the hill and north of the existing bulk fuel facility.A new set of stairs will be constructed in the E Street right-of-way to provide access to the new power plant and tank farm. The three new barge fill/distribution pipelines between the fuel dock and the tank farm will also be routed within this right-of-way.A truck loading area will be constructed within the Tenakee Avenue right-of-way near the foot of the new tank farm/powerplant access stairs.The marine header,retail gasoline dispenser,#1/#2 diesel marine fueling station,and portions of the barge fill/distribution pipelines will be located on and under the existing City ferry /fuel dock. 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: City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 5 of 37 Community Bulk Fuel Storage Facility Site Plan PROPOSED CITY TANK FARM/POWER PLANT PROPERTY AND EXTENDED "E”STREET R.O.W. NEW ACCESS STAIRS -*NEW1FARM -SEE |SHEET SH2 'PLANT -SEE |SHEET SH4 |TANK(FARM IEXISTING || ey CITY TANK | | + TENAKEEAVE.-keer \:DIESEL | FILL/DISTRIBUTION |PIPELINES JelexisteCITYPOWERPLANTHE NEW GASOLINE ||DISPENSER,; DIESEL BULK ||TRANSFER & 'MARINE HEADER|1"=80' prove:TENAKEE SPRINGS BULK FUEL STORAGE [ow 8:_J1D/SJS|sows:1°80"Departrent of Comsatts4°ESnomie.DevelopmentANDPOWERSYSTEMUPGRADEsowe806|om 9-27-04 Ma oe AIDEA/AEA =FILE Wake 'SHEET OF pi Ne a BAMARSAPROJECTSITEPLANTENASITESH1«4 +we City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 6 of 37 Tank Farm Plan *TANK #4 9'6x32°L NOMINALromet15,000 GALLONS (_)**OOr* GASOLINE BULK STORAGE TANK #3 Ni8'0x17'L_NOMINAL 6,000 GALLONS GASOLINE DISPENSING -5- \|-__1”=10' -3°GASOLINE)(VvFILL/PUMP SCHEDULE OPEN LABEL |FUNCTION STYLE MOTOR +P-1 |GASOLINE BULK TRANSFER |SUBMERSIBLE |.75HP,230V) P-2 GASOUNE DISPENSING SUBMERSIBLE |.75HP,230V P-3 |#1 DIESEL BULK TRANSFER |SUBMERSIBLE |.75HP,250V P-4 |#2 DIESEL BULK TRANSFER |SUBMERSIBLE |1.5HP,230V x | a HIGH CHAIN LINK FENCEVaP2 TANK #2 x -10'¢x38'L NOMINAL MataTegO©22,000 GALLONS Og #1 DIESEL BULK STORAGE |Va P=j TANK #1 10°6x38°L NOMINAL©)2 27,000 GALLONS Os tOOrs #2 DIESEL BULK STORAGE i TANK SCHEDULE TANK |NEW NEW/TYPE |FUNCTION |#2 DIESEL [#1 DIESEL |GASOLINE#|OWNER |EXISTING |(2)CAPACITY(1)|CAPACITY(1)|CAPACITY(1)7 Tony |NEW |DW |BULK 15,000 #2 |CITY NEW FR DISPENSING 6,000 #3 [CITY NEW OW |BULK 22,000 #4 I CIY NEW DW _{BULK 22,000 PROJECT STORAGE CAPACITY BY PRODUCT 22,000 22,000 21,000 PROJECT TOTAL GROSS STORAGE CAPACITY 65,000 NOTES:1)ALL CAPACITIES ARE GROSS SHELL CAPACITY IN GALLONS 2)DW =DOUBLE WALL,FR =TWO-HR FIRE RATED PROJECT:TENAKEE SPRINGS BULK FUEL STORAGE [amt _J1D/S/S]seve:1°=10"ot AND POWER SYSTEM UPGRADE eso BCG |we 9-27-04 |e,pet ane wa °meenmm:YANK FARM PIPING PLAN PLE wade SHET OF pi ot oat Ce Se AbeARISAANDSCHEDULESTENA-TF=PLANIS 2,4 7 aacroreg.hene Wats City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 7 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 Gallons Total Gallons Total Storage/Dispensing Capacity Number PerTank Gallons Per Tank Gallons (Gross)(Gross)(Net)(Net) City of Tenakee Springs Gasoline Dispensing 1 6,000 6,000 5,400 5,400 Primary Storage 1 15,000 15,000 13,500 13,500 Subtotal Gasoline 2 21,000 18,900 Diesel Primary Storage 2 22,000 44,000 19,800 39,600 Subtotal Diesel 2 44,000 39,600 Total Storage /Dispensing 4 65,000 58,500 Pipeline Components Number Header 1 Pipelines to storage facility 3 Pipeline to power plant 1 Pipeline to truck loading area 1 Single Product -Retail Dispenser 3 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.The facility is sized based on approximately 6 deliveries per year City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 8 of 37 IV.ELECTRIC POWER UPGRADE The Rural Power System Upgrade Program will construct a new Electric Power Generation Facility in Tenakee Springs that will consist of three diesel engine generators,automated switchgear,a fire suppression system,fuel handling,and a step-up transformer bank. 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 August 23,2004.The purpose of the CDR is to provide a concept design and construction cost estimate for upgrades to the electrical generation system for the community of Tenakee Springs.This Plan is based upon the information contained in the CDR. The new bulk fuel and power plant Facility will be located near the intersection of E Street and Chichagof Avenue,up the hill and north of the existing bulk fuel facility.Due to the steep slope of the site and potentially shallow depth to bedrock,a series of three narrow benches are proposed for placement of the power plant module,diesel tanks and gasoline tanks.The power plant will be located on the lower bench to make it more accessible for daily monitoring and maintenance as well as for future engine/equipment replacement.A new set of stairs will be constructed in the E Street right-of-way to provide access to the new power plant and tank farm. 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 #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 270 Kw,using three generators.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 proposed power generation capacity is based upon estimates of future power needs developed in the CDR.The Commission guidelines dictate that extra capacity is provided to account for 10 years of growth in electric power requirements.The initial annual estimated KwH generation by the community is estimated to be 456,000 KwH;growing to 465,000 KwH by year five and 477,000 KwH by year ten. Project Site and Layout Plan The following diagrams show the project layout and site plan: City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 9 of 37 Power Plant Site Plant NOTES: oe=40 1)APPROXIMATELY 1,200°OF EXISTING SINGLE PHASE OVERHEAD S-PHASE FOR CONNECTION 70 tf---UPGRADE EXISTING OVERHEAD DISTRIBUTION @ BETWEEN POLES W13 AND - -W18 -SEE NOTE 1. DISTRIBUTION TO BE UPGRADED TO EXISTING BURIED 3-PHASE WIRED SOWEREXTENSIONONWESTENDOFTOWN.PLANT------_--_--MODULE }___--__--___..__||j SEE | SHEET SH4 a !| NEW STAR | |MOUNTED '\' CONDUIT FOR ;COMMUNITY ||FEEDER "TT | |||| |||! || | t !ia f |Ld {ie | EXISTING iPOWER ePOLE,TYP \-NEW BURIED CONDUIT FOR CONNECTION Ena = {t ''' ] ||H |t |{t protect TENAKEE SPRINGS BULK FUEL STORAGE [em JTD_|swe 1"=40'StateotNapho bevelANDPOWERSYSTEMUPGRADEfpeioesor800|we 9-27-04 [ve rage HONEA ne:FLE WME 'SHEET OF ALASKATHLE:yo 13 est mortar,wat.SRALSPOWERPLANTSITEPLANTENA=PP=SITE SH3 4 ae City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 10 of 37 Power Plant Equipment Layout \A \vy s,7 S57 Nn aN 7 '7 '\ 4 NN 4 XN Oo =7 =----5 -- u WT]av -ay ) Io GEN#1 98kW BBkW PRIME(Re | -2) GEN#2 98kW t (88kW PRIME||PREE=2 GENERATION 2 ROOM»LCIp|EX od)VFDGENg374xw|PANELOo(64kW PRIME) PANEL -o-Ss-1DaeSTATIONSERVICETRANSFORMER BLENDER FIRE SUPPRESSION AGENT CYLINDER CONTROL ROOM GEN |GEN |GEN DISTR.#s |#2 |ft TDp pract TENAKEE SPRINGS BULK FUEL STORAGE [omnes JT |swe 3/16°=1'>5AHScenic DevelopmeANDPOWERSYSTEMUPGRADEween9600|oe 927-1 |ay OR ORETagan Orr-FLE wade SHEET py...oid bey ee.SRALASKAPOWERPLANTMODULEPLANTENA=PP=PLANS HY 4 + City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 11 of 37 V.PRIMARY OPERATOR The Primary Operator for the Tenakee Springs Bulk Fuel Storage Facility and Electric Power Facility is the City.A detailed statement of qualification for the Primary Operator is included as Appendix A:Primary Operator Statement ofQualification. Turnover and Assumption of Responsibilities /Sustainability The Facility will be turned over to the Primary Operator after the satisfactory completion,as determined by AEA or its representative,of a 14-day test period.After this test period,AEA will provide written notice (Certificate of Substantial Completion)stating that the Facility is ready for Beneficial Occupancy.Upon receipt of this Certificate,the City will become the Primary Operator and will assume responsibility for the use,day-to-day operations,and long-term maintenance of all Facility components,except those noted elsewhere in the Plan. When the project has been completed (the Facility is complete,crews have demobilized,invoices have been paid and there are no outstanding issues),the AEA will issue through its Grants Manager a Notice of Project Completion.This Notice is included in the Grant Agreement;see Additional Related and Attached Documents. The Primary Operator is responsible for the long-term sustainability of the Facility for the benefit of the local community.The complete Facility will be maintained according to guidelines outlined in this Plan,all manufacturers'recommendations for maintenance,and all state and federal laws,codes and regulations governing operation.The Primary Operator is responsible for the transfer of fuel. 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 "Managers”)for both the bulk fuel facility and electric utility.The Managers 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 Managers prior to the start of operations and will inform the Commission in a timely fashion whenever a Manager is to be replaced.The Managers will manage the Primary Operator 's enterprises and will be given complete responsibility for operating the respective facilities 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 ate essential to the successful operation of the Facility,replacements will be recruited and trained as necessary.The Managers will be responsible for maintaining adequate staffing and training at all times.When the Primary Operator lacks trained operators and administrative staff,training will be obtained to ensure sustained Facility operation. Training programs may be available from AEA,the Alaska Vocational Technical Center (AVTEC) in Seward,the Commission and other training sources. City of Tenakee Springs 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 both the bulk fuel facility and electric utility -O&M and R&R. 1)O&M:The Primary Operator will incur a number of expenses relating to the O&M of the Facility.O&M items are defined as expenses that are incurred on a regular basis (administration, audits,etc)and maintenance expenses that are incurred on an annual basis,as well as replacement costs of items under $5,000.Electric Utility related O&M expenses are detailed in Table C:Annual Oe>M Schedule and in the narrative detail provided in Section IX:Financial Information.Bulk Fuel Storage O&M expenses are detailed in Tab 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 for both the bulk fuel facility and the electric utility and will maintain sufficient account balances to meet the O&M and R&R financial goals in this Plan.The O&M accounts may be active non-interest bearing accounts.The Managers will be authorized to draw against the O&M funds for routine expenses;however, individual expenditures in excess of $5,000 will require authorization of the Primary Operator's management or governing body.See Appendix A:Statement ofQualification for an overview of the Primary Operator's fiscal controls and accounting procedures.The R&R accounts 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 mote cost effective;then the R&R accounts 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 May 31",the Managers will develop a budget for the upcoming fiscal year,July 1"through June 30",for both O&M and R&R for their respective facilities.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 accounts to fund the Facility O&M so that the O&M schedule can be completed and the Facility operations can be sustained into the future (this is anticipated to be an active non-interest bearing account).For the Electric Utility,Section IX:Financial Information provides Table C:Annual O@*M Schedule as a guide to plan for annual maintenance activities and Table D:40 Year 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 OM Costs as a guide to plan for annual maintenance activities and Tab L:40 Year O¢>M Cashflow as a guide to estimated yearly O&M required contributions. City of Tenakee Springs 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 an amount sufficient to maintain the R&R Schedule for both the bulk fuel facility and the electric utility (see Re*R Fund Account-Sample Documents for "How to Establish a RC*R Account'). For the Electric Utility,Secton LX:Financial Information provides Table G:40 Year R¢>R Schedule as a guide to plan for annual R&R activities and Table H:40 Year R¢>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 R&R Cost Estimate -Electric Power Unihty. For Bulk Fuel,it is assumed that the R&R activities for Year 20 will be funded 40%from the R&R account and 60%from debt financing,at 5.5%over 10 years.Section LX:Financial Information provides Table M:40 Year Re>R Schedule as a guide to plan for annual Bulk Fuel R&R activities,Table N:40 Year R&R Cashflow as a guide to estimated yearly R&R required contributions,and 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 Alaska Energy &Engineering,Inc.,see Appendix B: Oe>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 accounts,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 accounts,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 Tenakee Springs 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. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 14 of 37 VI.SECONDARY OPERATOR The Secondary Operator for the Tenakee Springs 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. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 15 of 37 VII.INSURANCE For the Electric Utility,the Primary Operator is required to be insured for General Liability and Property,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, estimates are included in the annual O&M costs.It is assumed that the Primary Operator will be able to access General Liability Insurance through the City's participation in the Alaska Municipal League Joint Insurance Association (AMLJIA),Inc.It is assumed that such coverage will cost approximately $500 per year aggregate for the Facility,based upon current AMLJIA rates. Otherwise,the Primary Operator will be required to set-aside an amount equal to 10 cents/gallon based on the Year One City throughput with subsequent years inflated at 1.5%. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 16 of 37 VIII.REGULATORY COMPLIANCE The Primary Operator is responsible for ensuring the operation and maintenance of the storage tanks and transfer systems that they own and operate are compliant with state and federal requirements.The Primary Operator shall comply with the procedures established in the spill prevention and response plans listed below and will maintain and be familiar with the following regulatory plans: e US Coast Guard Facility Response Plan (33 CFR Part 154)/EPA Facility Response Plan (40 CFR Part 112)-This plan establishes spill response procedures and organization for the tank farm.It commits the Participants to maintain adequate spill response equipment and to conduct annual training and drill programs. e US Coast Guard Operations Manual (33 CFR Past 154)-This plan describes the required procedures to be followed by each Participant when off-loading fuel from marine vessels to the tank farm. e US Environmental Protection Agency (EPA)Spill Prevention Control and Countermeasures Plan (SPCC)(40 CFR Part 112)-This plan confirms compliance of the Facility with the spill prevention and operating requirements of 40 CFR Part 112.A Registered Professional Engineer must certify the plan. These plans include commitments and guidelines for spill prevention,response,and other related envitonmental information to ensure the environmental integrity of the Facility and the community. The plans will be developed near the end of tank farm construction.The Primary Operator will patticipate in development and review of the plans as requested.Estimated expenses have been provided herein and include the anticipated costs of implementing the plans,ensuring the reliability of the spill response equipment,maintaining the proper records,and conducting periodic spill drills. The Primary Operator shall ensure the plans are approved,maintained,and updated in accordance with Coast Guard and EPA requirements described in the plans. 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. City of Tenakee Springs 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 e Annual inflation rate of 1.5%. @ Annual investment rate of 3%. e R&R funds may be deposited into an interest bearing invested escrow accounts.Fees are assumed to be 1%,beginning when the account balances are estimated to reach $100,000. e Bulk Fuel insurance is estimated to be $500 in year one,based upon AMLJIA,Inc. current rates,with subsequent years inflated at 1.5%;while Electric Utility insurance 1s estimated to be $2,000 in year one with subsequent years inflated at 1.5%. e 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. e Annual Electric Utility collection rate is assumed to be 90%. e Detailed assumptions regarding labor rates,required labor hours,and other operating costs ate provided in the tables that follow. e 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 e Fuel costs for electric generation in the first year are estimated to be $2.66 per gallon. e Annual KwH usage is estimated to grow at .5%per yeat. e Line loss and unbilled production are assumed to be 10.5%per year. e Initial first year total power generation is estimated to be 456,000 KwH. e Initial annual billed KwH is estimated to be 408,000 KwH. e Energy is produced at 14 KwH/gallon on average. e Initial annual bulk fuel throughput estimates:116,000 gallons/diesel and 28,000 gallons/gasoline. e City Bulk Fuel throughput is estimated to grow annually at a rate of .5%for diesel and 5%for gasoline consumption. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 18 of 37 Project Funding This Plan is not a commitment to provide project funding. Subsequent Operating Year Revisions Starting with the second year,as operating experience specific to this Facility is obtained,the projections and assumptions upon which the Plan is based will be reviewed and modified.The following guidelines are for use in subsequent operating years in updating and modifying Plan projections and assumptions: Bulk Fuel Revisions Step 1:Review previous years'O&M and R&R costs and compare to current projections Step 2:Adjust O&M and R&R projections and assumptions based upon actual experience Step 3:Recalculate City per gallon O&M costs based upon updated throughput estimates Step 4:Recalculate City per gallon R&R costs based upon updated throughput estimates Step 5:Recalculate total City per gallon fuel costs Ekectric Utility Revisions Step 1:Review previous years'O&M and R&R costs and compare to current projections Step 2:Adjast O&M and R&R projections and assumptions based upon actual experience Step 3:Recalculate per KwH O&M surcharge based upon updated demand estimates Step 4:Recalculate per KwH R&R surcharge based upon updated demand estimates Step 5:Update Table A:40 Year Estimated Utility Net Income and Cashflow Step 6:Establish updated retail rate per kilowatt hour City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 19 of 37 FINANCIAL TABLES -ELECTRIC POWER UTILITY City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 20 of 37 TABLE A 40 YEAR ESTIMATED UTILITY NET INCOME AND CASHFLOW Inflation Rate :Annual Profit Margin:Year 1-20:Year 21-40 Annual Revenue Annual Expenses Net Annual Cashflow Before Taxes € .General&Year Estimated Collecuble Estimated O&M Fuel Costs |Administrative |Depreciation Total Income Net Income Plus:less:R&R AnnualRetailPriceKwH/Yeae Annual Expenses (Table E)Expenses (fable F)Expenses Before Year|Before Taxes Depreciation Cash Deposit Cashflow$/KwH (Table B)Revenue (Tables C&D)(Table I)Taxes (Table F)|(Tables G&H) 1|[S_0397][307,308][$145,748}[$_28,703/$86640[$21,850[$__5,000[§142,193][$s 3,555]|1 [$s 3555|]$ 5000/$4a]ls 1072||$0402]|309,145]|$148,385]|$29,133 ]$-88,379/$-22,178|$5,075]$§144,765]$s 3,619]|2 |s 3,019|]s 5,0751$84901]$2043.|1$0407]]370,990]|$151,070]|$29,570]$90,154]$-22,510/$5,151]$147,385]]$3,085]|3 |s 3685]|5,1511$85331 1$30344[$s 0413]|372,845]]$_153,805]1s 30,014]$91,903]§--22,848/$-5,228|$150,054||3,751]|4 [s 3,751]]s 5,2281$ as75}]s 404511$0433}|374,709}[$162,385]|]$30,404]$93,810/$23,191]$10,960 $158,424]|$3,901]|5 [Ss3,961]|s 10,900]8,018]|$6,3026}]S 04390]|376,583]|$165,222]]$30,921]$95,693]$-23,5391$11,040|$161,192]]$4,030]J o |s 4030]|s 11040]$12,4271 |$2,642T{[s 0444]378,406]]$108111]]$31,385/$97,614|$23,8921 $11,120[$164011]]$s 4100]|7 |s 4100]|s 11,120 $12,489]|$82,731BI}[S 0446]380,358)|$169,534]|$31,856]$99,5731 $-242501$9,720/$165,399]|8 4,135]|8 [s 4135];]$9,720]$12,5521 |$1,3039}{8 0451]}382,200][$172,531]|$s 32,334]$1015721 §24,014]$9,803}$168,323||$4,208]|9 |s 4208]|$_9,803]$12615]|$1,396to}|S0475]|384171]|$182,539]]$32,819]$103,611]$24,983 $16,674]$178,087]|$4,452]|10/5 4452]{$_16,674|$12678]|$8,448Ar}[$0481]]386,092]|$185,647 |$33,311]$105,601]$25,358];$16,759]$181,119]|$4,528]|11 [$s 4528]1s 16,759/$16602}|$4,68512]]$04877]388,023]|$188,813]|$33,810]$107,813]$25,738|$16,846]$184,208]|$4,605]|12/8 4,005]|$16,846]$16,685]|$4,76713][8 0483]|389,963]|$188,425]|$-34,318]$109,977]$26,124$13,410 |$_183,829||s 4,596]|131s 4,596||$ 13,4101$16,768]|$1,237|14 [{$80489}391,913]|$191,709]|$34,8321 $112,185]$26,516]$13,500]$187,034]|$4,676]|14]8 4,676]|s 13,500 §16,852 $1,32315]|$0494]|393,872][$194,558]|$35,355]$114,437|$26,914 $13,107]$189,813}|$4,745]|15/8 4,745]18 _13,107[$16,937]|$916Jeol{$s0500f |395,841}|$197,965]|$35,885]$116,735]$27,318 $13,199]$193,137]|$4,828]|16 [$4,828]|$s -13,199|§20,980]|$(2,952)17 |]s__0.5067]397,821]|$201,435]|$36,423]$119,078]$-27,727|$13,293]$196,522]]}$4,913)J i7[s 49131 |s 13,293]$21,0841 |2,879)i8{|$_0508}]399,810 |$203,160]]$36,970]$_121,409|$28,143 $11,623]$198,205]]$4,955]J 18]$s 49551]§11,023]$21,1901 |$(4,612)419}]$0515]|401,809]|$206,760]|$37,524]$123,907]$28,565]$+11,720]$201,717]|S 5,043]|19 [Ss 5,043]1$§11,7201 $21,296]|$(4,533)20]|$0547]|403,818]|$220,754]|$38,087]$126,305]$28,994[$21,8941 $215,370]|8 5,384]|20s 5,384]|S 21,8941 21,402}|$5,8762{{$s 0561]|405,837]|$227,774]|$38,659]$128,932|$-29,429[$21,994]§219013)|$8,761]|21[$8701]1s21,994]$25,508]|$5,187|221/18 0568]}407,866]|$231,633]|$39,238]$131,520/$_ 29,870[$22,095]$222,724]|s 8.909]|2218 8,909]|$22,095]$_25,696]|$5,3082311s0559]]409,906 ||$229,009}|$39,827]$134,161]$30,318]$15,895]$_220,201]|$8,808]|23[8 asos]|s15,895]$25,824]|§(1,121)24}}s o56o]|]411,955]|$233,012]|$40,424]$136,854]$-30,773[$15,999]$224,050]|]$8,962]|24]$8 8902]|$15,999]$25,9531 |$92){ls 0592p]414,015]|$_245.0091 |$41,031]$139,601]$31,235 [$23,7191 $235,585]|$9,423 |25/$9,423]|$23,719]$26,083]|$7,05926118 0599F]416,085 ||$249,162]|$41,640]142,404]$31,703/$23,826 $239,579]|9,583]|260 /§9,583]1 $ 23,826/$30,374,1$3,035ATLAS0.606 |418,165]|$253,302]|$42,2714 $145,262]$32,179 |$23,935 $243,647]|$9,746 |2718 9,746]|$23,935 |§30,526]|$3,15428|1$0.608 "420,256 $255,625]|$42,905]$148,179]$32,661]$-22,048|$245,793}|$9,832 |28]$9,832]|$22,048]$30,679]|$1,20129||8 ooo}|4223571 |$200,014 ||$43,549]$151,153]$33,151]$22,160$250,013}|$10,001]|29]$10,001]|$22,160 $30,8321 |$1,32930][8 0.636]|424,409]|$269,820]|$44,202]$154,188]$33,649]$-27,404/$259,442]1 $10,378}|30/8 103781]$27,404]$30,986]|$6,796|31{]$ 0.643]|426,502][$274,374]|44,865]$157,283 $34,153 18 27,520|$263,821]|$10,553}|31 [$s 10,553]$27,520]$35,407]|$2,60632|[$0.651 428,724||$279,012]|$45,538]$§160,440|$34,006 [$27,037 |$208,281}|$10,731]|32[$10,731]1$27,637]$35,584||$2,78433[[S 0048]1 430,808]|$279,151]|$46,221]$163,661]$35,186|$23,347 $208,415]|$10,737]|33 |$10,737]|$-23,347[$35,762]|$(1,678)34||s 0.056]|433,022]|$283,904]|$46,914]$106,947]§35,713 $23,468 $273,042]|$__10,922||34s 10922]|§23,408]35941]|§(1,551) 35]18 0.650 435,188 ||$283,008]|$47,618]$170,298]$36,249 |$__17,958[$272,123]|$10,885]|35 [$s10,885}|$17,958]$36,121]|§(7,278)36 |($0.658 437,364 ||$_288,001]|$48,332]$173,717|$36,793]$ 18,082[$276,924]|$11,077]|36|$ 11,077||$18,082]$40,675]|$(41,516)37 [18 0.667}|439,550]|$293,087}|$49,057 |$_177,204|$37,345]$-18,209|$281,815]|$ 11,273|J 37]$11,273 |$18,209]$40,878]|$(11,397) 38]]$0.609}|441,748]|$295,479 ||$49,793|$180,762|$-_37,905|$15,655 |$284,114]|$11,305]|38]s 11,305]]$15,655]$41,083]|$(14,063)39 ||$0.677]|__443,957||$300,756]|$50,540|$184,390]$38,473]$15,785]$289,189]|$11,568]|39]$11,508]|$15,785]$41,288]|$(13,930)40 |]$0.769 446,177 ||$343,097}|$51,208]$198,092|$39,051]51,401]$329,901]|$13,196]|40]$3 13,196]|$51,401}41,494]|$23,162 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 21 of 37 Power Generation and Consumption Summary TABLE B Assumed Collection Rate Total Generated]"PD!Line |011 Billed Assumed Year KwH/Year Loss and KwH/Year Collectable Unbilled KwH/Year 1)456,000}__47,880 408,120 367,3082458,280]48,119|-410,161}369,1453460,571 48,360]412,211 370,990 4 462,874]48,602]414,272 372,845 5 465,189 -48,845|=416,344 374,709 6 467,515 49,089]418,426 376,583 7 469,852.49,334]420,518 378,466 8 472,201 49,581}422,620]=380,358 Oo)474,562}49,829]424,733 |382,26010476,935,50,078 426,857 384,171 11 479,320|50,329]=-428,991|386,092 12 _481,716 _50,580 431,136 388,023 13 484,125 50,833}433,292 389,963 14 486,546 51,087}435,458 391,913 15 488,978 |51,343 |437,636 393,872 16 491,423,51,599]439,824 395,841 417 493,880| ---51,857 442,023 397,821 18 496,350 52,117 444,233 399,810 19 498,832}52,377 446,454|401"09 20 -501,326]52,639 448,687 403,818 21 503,832 52,902 450,930 405,837 22 506,352 53,i67|453,185 |407,86623508,883 |53,433 455,451 409,906 24 511,428 53,700]457,728 411.955 25 513,985 53,968 460,016 414,015 26 516555|54,238 462,317 416,085 27 519,138 54,509!464,628 418,165 28 521,733 54,782}466,951 420,256 29 524.342 55,056]469,286 422,357 -30 526,964 55,331|471,632]424,469 31 529,598 55,608 473,991 426,592 32°532,246 55,886 476,361 428,724 33 534,908|56,165 478,742 430,868 34 537,582 56,446 481,136 433,022 35 540,270 56,728 483,542 435,188 36 |542,971]57,012}485,959 437,364 37 545,686 57,297}488,389 439,550 38 548,415 57,584 490,831 441,748 39 551,157]57,871 493,285 443,957 40 |.553,913 58,161]495,752 446,177 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 22 of 37 TABLE C ANNUAL "0 and M"SCHEDULE Rate Per Fringe Total Hourly Position Hour Rate Cost Duties Operator]-Primary 0B 23.75 19.4%||$28.36||Maintenance&Primary Operations _ Bookkeeper ATS |19.4%|$17.61)|Payroll,Accounts PayableUtilityManager$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 LaborOperator1 |25.44 ||$28.36)]$721.55 re Subtotal Operating Labor 25.44 $=721.55 $7 8,659AdministrativeLabor7nn__ Bookkeeper i (asi'<'lé tétt”!C*dC SSTOLL TS 14089]|Oe OO Utility Manager 20 =||$31.22;18 624.46 Subtotal Administrative Labor 2 Jl $765.35 $US 9.1.84. Materials:_a _ Materials &Equipment 1 Is -oe 4,110FireSystemInspection(Outside Contracto)3 a 4.250OtherCosts:ae .Training i (Lump Sum)Zz $1,000AnnualAudit(Lump Sum)$7 2.000 Tnsurance --_$7 2,500 TotalAnnualO&M Costs tst-'-s-s 7 S$28,703. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 23 of 37 TABLE D 40 YEAR "0 and M"SCHEDULE Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 24 of 37 .AssumedYearAnalO&M ee en Collectable O&M Surcharge xpenses wH/Year KwHt/Year $/KwH 1 $28,703 408,120 367,308 ||$0.078 2 |$29,133||410,161 369,145 ||$0.079 3 $29,570 412,211 370,990 1 |$0.080 4 $30,014 414,272 372,845 ||$0.080 5 $30,464 416,344 374,709 ||$0.081 6 $30,921 418,426 376,583 ||$0.082 7 $31,385 420,518 378,466 ||$0.083 8 $31,856 422,620 380,358 ||$0.084 9 $32,334 424,733 382,260 ||$0.085 10 $32,819 426,857 384,171 ||$0.085 11 $33,311 428,991 386,092 ||$0.086 12 $33.810]]431,136 388,023 ||$0.087 13 $34318]|433,292 389,963 ||$0.088 14 $34,832 435,458 391,913 ||$0.089 15 c 35,355 437,636 393,872 ||$0.090 16 $35,885 439,824 395,841]|$0.091 17 $36,423 442,023 397,821 ||$0.092 18 $36,970 444,233 |399,810 ||$0.092 19 |¢$37,524 446,454 401,809 ||$0.093 20 «I$38,087 448,687 403,818 ||$0.094 21 $38,659||450,930 405,837 ||$0.095 22 $39,238 453,185 407,866 ||$0.096 23 $39,827 455,451 409,906 ||$0.097 24 $40,424 457,728 411,955 ||$0.098 25 $41,031 460,016 414,015 ||$0.099 26 $41,646 462,317 416,085 ||$0.100 27 $42,271 464,628 418,165 ||$0.101 28 $42,905 466,951 420,256 ||$0.102 29 $43,549 469,286 422,357 ||$0.103 30 =-«|$44,202 471,632 424.469 ||$0.104 31 $44,865 473,991 426,592}|$0.105 32 $45,538 476,361 428,724]|$0.106 33 $46,221 478,742 430,868 ||$0.107 34 $46,914 481,136 433,022 ||$0.108 35,$47,618 483,542 435,188 ||$0.109 36 $48,332 485,959 ||437,364]|$0.111 37 $49,057 488,389 439,550 ||$0.112 38 $49,793 490,831 441,748 1 1 $0.113 39 $50,540 493,285 443,957 ||$0.114 40 §51,298 495,752 |446,177 ||$0.115 City of Tenakee Springs TABLE E ANNUAL FUEL COSTS Estimated Total Total Fuel Total Annual Assumed Fuel CostYearFuelCostperGeneratedUsage@FuelCostsCollectable§/KwHGallonKwH/Year 14 KwH/Gallon KwH/Year 1 $2.66 456,000 32,5711 |$86,640 367,308]|$0.236 2 $2.70 458,280 32,734 ||$88,379 369,145 |1$0.239 3 $2.74 460,571}|-_-32,898}|$90,154 370,990 |1$0.243 4 $2.78 462,874 33,062||$91,963 372,845 1]$0.247 5 $2.82 465,189 33,228 ||$93,810 374,709 |1$0.250 6 $2.87 467,515 33,394|1$95,693 376,583 ||$0.254 7 $2.91 469,852]|33,561]|$97,614 378,466]||$0.258 8 |$2.95 472,201 33,729 ||$99,573 380,358}1$0.262 9 $3.00 474,562}}33,897 ||$101,572 382,260/}$0.266 10 |§3.04 476,935 34,067 ||$103,611 3841711 ]|$0.270 11 $3.09 479,320 34,2371 |$105,691 386,092 |1$0.274 12 $3.13 481,716 34,408 ||$107,813 388,023 |]$0.278 13.|$3.18 484,125 34,580 ||$109,977 389,963 |]$0.282 14 [$3.23 486,546 34,753 ||$112,185 391,913|]$0.286 15 $3.28 488,978 34,927||$114,437 393,872|}$0.291 16 $3.33 491,423 35,102}|$116,735 395,841}1$0.295 17 $3.38 493,880 35,277 ||$119,078 397,8211|$0.299 18 $3.43 496,350 35,454 ||$121,469 399,810!1$0.304 19 $3.48 498,832||35,631 ||$123,907 401,809 |]$0.308 20 $3.53 501,326 35,809 ||$126,395 403,818}|$0.313 21 $3.58 503,832 35,988 ||$128,932 405,8371/$0.318 22 $3.64 506,352 36,168 ||$131,520 407,866|]$0.322 23 $3.69 508,883 36,349 ||$134,161 409,906}|$0.327 24 $3.75 511,428 36,531 ||$136,854 411,955|}$0.332 25 $3.80]|513,985 36,713 ||$139,601 414,015]|$0.337 26 $3.86 516,555 36,897 ||$142,404 416,085|}$0.342 27 $3.92]|519,138 37,081 ||$145,262 418,165 ||$0.347 28 $3.98 521,733 37,267 ||$148,179 420,256}1$0.353 29 $4.04 524342|]37,453]|$151,153]|422,357]1$0.35830 $4.101]5269641]37,640||$154,188 424,469}1$0.363 31 $4.16 529,598 37,828 ||$157,283 426,592|1$0.369 32 $4.22||532,246 38,018 ||$160,440 428,7241/$0.374 33 $4.28 534,908 38,208 ||$163,661 430,868 |]$0.380 34 $4.35,537,582 38,399 ||$166,947 433,022|]$0.386 35 $4.41 540,270 38,591 ||$170,298.435,188]|$0.391 36 $4.48 542,971 38,784 ||$173,717.437,364}|$0.397 37 $4.55 545,686 38,978 ||$177,204 439,550||$0.403 38 $4.61 548,415 39,1721 |$180,762 441,748 ||$0.409 39 lg 4.68 551,157.39,368 ||$184,390 443.9571 [$0.415 40 $4.75,553,913 39,565||$188092}|]446177]1$0.422 City of Tenakee Springs 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 $18,000 Office Expenses $3,700Other-Interest Expense $150 Total Annual O&M Costs i $BO 21,850 Annual R&R Depreciation Expense: Depreciation-Other Year Depreciation R&R Assets Total Annual Depreciation 1 |$-|$5,000 $5,000 2 |$-|S 5,075 $5,075 3 |§-|§5,151 $5,151 4 |$-|$5,228 $5,228 5 18 5,653 |§5,307 $10,960 6 {8 5,653 |$5,386]|$11,040 7 1$5,653 |$5,467 $11,120 8 1$4,171 |$5,549 $9,720 9 I$4171 |$5,632 $9,803 10 |$10,957 |$5,717]|$16,674 11 1$10,957 |$5,803 $16,759 12 [$10,957 |$_5,890 $16,846 13.1§7,432 |$5,978 $13,410 14 1§7,432 |$6,068 $13,500 15 |$6,948 |$6,159 ||$13,107 16 |$6,948 |$6,251]|$13,199 17 «'($6,948 |$6345||$13,293 18 |$5,183 |$6,440 $11,623 19 |$5,183 |$6,537 $11,720 20 |$15,260 |$6,635 $21,894 21 |$15,260 |$6,734||§21,994 22 |§15,260 |$6,835 ||$22,095 23 |§8,957 |$6,938 $15,895 24 1$8,957 |$7,042 $15,999 2 |$16,571|$7,148 $23,719 26 «|$16,571 |$7,255||$23,826 oT |G 165711$7,364]|$23,935 28 |$14574/$7,474||$22,048 29 |$14574|$7,586 $22,160 30 |$19,705 |$7,700 ||$27,404 31 |$19,705 |$7,815||$27,520 32 |$19,705 |§7,933 $27,637 33 |§$15,296 |$8,052 $23,347 34 |$15,296 |$8,172 $23,468 6-35 «(gS 9,663 |$8,295 $17,958 36 |$9,663 |$8,419 $18,082 37 |$9,663 |$8,546 $18,209 638 «dS 6,981 |$8,674 $15,655 39 |§6,981 |$8,804 $15,785 40 |$42.524]$8,936 $51,461 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 26 of 37 TABLE G 40 YEAR "R and R"SCHEDULE Year of Present Day Annual Inflated DepreciationActivityR&R Activity Value Total Value R&R Activities:Cost Activity Year Term 5 Repair Ramp/Boardwalks $383 Replace Values/Gauges 437 Bi{Repair Ramp/Boardwalks $383 $/10/15/25/30/35.3 Repair Siding/Overhead Door 1,284 ci]Replace Ramps 3 tas 40 0UpgradeFloors/Walls/Ceiings 1,418 B2]Pump Replacement $2,129 |10/20/30/40 3 Top End Overhaul/Battery/Alternator 19,647 C2}ReplaceDayTank &Electrical System $40,950|a 20|Ss |Repair Ballasts/Lenses_al 669 ||$23,838 1]$25,301 B2{Replace Values/Gauges $437 5/15/25/35 3 10 Repair Ramp/Boardwalks $383 |]B3|Floor/Roof Repair $3 683|{-_10/20/30/40 3 Pump Replacement 2,129 C3|Upgrade Floor/Roofs $2,994|20/40 10 Floor/Roof Repair 683 B3|Repair Siding /Overhead Door $1,284 §/10/15/25/30/35 3 |Repair Siding/Overhead Door 1,284 C3/Replace Module Walls/Window Units $10,848 40 20 Repair Roof 659 B3{Repair Roof $659°10/20/35 3 Change Door Hardware 875 B3|Change Door Hardware $875 10/30 3 | Upgrade Floors/Walls/Ceilings 1,418 B3|Replace Window Seals and Glazing $597|20 3 Repair Ducts/Grilles 1,148 B3|Upgrade Floors/Walls/Ceilings_$_1418 5/10/15 /25/30/35 3 Repair Fire Suppression System 3,000 C3|Replace Doors/Metal Roofing &Paint Trim||$8,441|20/40 3RepairBallasts/Lenses 669 C4]Replacement Mechanical Syst $48,200 _40 2 | Overhaul Genset/Controls 31,000 |]$43,248 HT $49,449 |B4 Repair Ducts/Grilles 181148|10/30 3 15 Repair Ramp/Boardwalks $383 C4{Refurbish Ducts/Grilles $4,050|20/40 10ReplaceValues/Gauges 437 B4|Repair Fire Suppression System $3,000|10/30 10 Repair Siding/Overhead Door 1,284 C4]/Replace Fire Suppression System $25,000|40 200 |Upgrade Floors/W'alls/Ceilings 1,418 B5|Replace Breakers/Fuses $_1,740 20 3 Top End Overhaul/Battery/Alternator 19,647 B5|Repair Ballasts/Lenses $669||5/10/15/25/30/35 |3 Repair Ballasts/Lenses 669 ||$_23,838 [|$29,363 C5]Replace Fixtures/Devices/Alarms $7,123 20/40 10 20 Pump Replacement $2,129 B6jOverhaul Genset/Controls $31,000|10/30 5 Refurbish Switchgear/Controls 13,500 Cof Replace Generators/Feeders &Conductors $59,750 20/40 15 Floor/Roof Repair 683 C5]Replace Conductors/Transformers/Panels||$41,300|40 20|Repair Roof 659 B6|Refurbish Switchgear/Controls $13,500.20 10 Replace Window Seals and Glazing 597 Co]Replace Switchgear/Controls $128,200)|40 20 Upgrade Floor/Roofs 2,994 B6|Top End Overhaut/Battery/Alternator $19,647 5/15/25/35 5 Replace Doors/Metal Roofing &Paint Trim 8441 Replace Breakers/Fuses 1,740 Refurbish Ducts/Grilles 4,050 Replace Fixtures/Devices/Alarms 7,123 Ent :ReplaceGenerators/Feeders &Conductors 59,750 $101,666 |]$134,906 Reinvesement Rai25RepairRamp/Boardwalks $383 Replace Values/Gauges 437 Repair Siding/Overhead Door 1,284 Upgrade Floors/W'alls/Ceilings 1,418 Top End Overhaul/Battery/Alternator 19,647 _Repair Bailasts/Lenses 669 ||$23,838 ||$34,076 30 Repair Ramp/Boardwalks $383 Pump Replacement 2,129 Floor/Roof Repair 683 Repair Siding/Overhead Door 1,284 Change Door Hardware 875 Upgrade Floors/Walls/Ceilings 1,418 Repair Ducts/Grilles 1,148 Repair Fire Suppression System 3,000 Repair Ballasts/Lenses 669 Overhaul Genset/Controls 31,000 |]$42,589 1]$65,586 35 Repair Ramp/Boardwalks $383 Replace Values/Gauges 437 Repair Siding/Overhead Door 1,284 Repair Roof 659 Upgrade Floors/Walls/Ceilings 1,418 Top End Overhaul/Battery/Alternator 19,647 ____||Repair Ballasts/Lenses 669 {|$24,497 |]$40,640 40 Pump Replacement $2,129 Floor/Roof Repair 683 Replace Ramps 4,345 Replace Day Tank &Electrical System 40,950 Upgrade Floor/Roofs 2,994 Replace Module Walls/W'indow Units 10,848 Replace Doors/Metal Roofing &Paint Trim 8,441 Replacement Mechanical Systems 48,200 Refurbish Ducts/Grilles 4,050 Replace Fire Suppression System 25,000 Replace Fixtures/Devices/Alarms 74123 Replace Conductors/Transformers/Panels 41,300 Replace Generators/Feeders &Conductors 59,750 Replace Switchgcar/Controls 128.200 [}$384.013 [|]$686,312 $667,527 §$667,527 §1,065,634 $1,733,161 City of Tenakee Springs 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 Beg.of Interest End of Assumed R&R Year Year Annual Renewals/Earnings (Net Year Collectable Surcharge Balance Deposits Replacements of Fees)Balance KwH/Year $/KwH 1 $-1$8,448 $-|$8,448 367,308 ||$0.023 2 11g 8448]$8,490 |$2531$17,192]|]3691451 /1$0.0233T1$17,92]$3533;I$51618 26240]|3709901 |$0.023-4{ls 26240/$8575|£24318 787/$35,6031]372845||$0.023 5 $35,603 |$8618|/$25,3011$309|$19,230 374,709]|$0.0236$19,230]$12,427|{§ -3a5/$32041]|376,583]1$0.033 7 |tg 32041/$12489]oS )-”:t*étA 451721 |3784060]|$0.0338[ts 45,172]$12,552]S903 |$58,027 380,358 ||$0.0339$58627|/$12,615 5 1,173|$72,414 382,260}|$0.03310|tg 72414/$12678]$ 49,449(/$ 459/$361021}384171]|$0.033|{s_36,102]$16602]=S722 |$53,426]|386,092]|$0.04342$53,426|$16,685 $1,069]$71,179 388,023 ||$0.04313+s 7,179/s 16768,°°&z|8 1,424]$89371]|389963]|[$0.04314[|{s_89371]s 6852]S787]8 108,011]|391,913]|§0.04315S_108,011]$16,937}$29,363 ]$1,573]$97,158]|393,872]|$_0.04316|{S$97,158]$20,980]==|$1,943 |$120,080]|-=s 395,841]|$-0.053__17__||$__120,080]$21,084)S02 $143,567)|397,821]|$0.05318|[$_143,567)$-21,190]ES 2871 |$167,628)|399,810]|$0.05319Jf[S$167,628)$521,206)=ES 3,353]S$192,276]|401,809]|$0.053-20 |]F_192,276]S$21,402)$134,906]$1,147]$79,920]|403,818 ||$0.05321|Fs 79,920]$25,568 §1,598]$107,086]|--405,837||$0.06322_||$_107,086]$25,696 $2,142]$134,924]|407,866}|$0.06323||$134,924]$25,824|$2,698 |$163,446)|409,906]|$0.06324$163,446|$§25,953|$3,269 |$-192,668 411,955||$0.063 25|$192,668]$--26,083 |$34,076|§3,172]$187,846]|414,015}|$0.06326||$187,846]$30,374]$_3,757|$221,978]|416,085]|$0.07327|$221,978]$30,526][8 4,440]256,943]|418,165]|$0.07328|1S 256,943]$30679]TS 5,139]$292,761}|420,256]|$0.07329||$292,761]$30,832 __[$_5,855]$329,448]|422,357]|$0.07330$ 329,448/§30,986]$ 65,586|$5,277]$300,125]|424,409]|$0.073__31__||$__300,125]$35,407]S003]$341,535}|426,592]|$0.08332.«|TS 341,535]$35,584 S$6,831 |$383,950 428,724]|$0.08333||$-383,950|$35,762 $7,679 |$427,391 430,868||$0.083 34 $427,391]$35,941]$8,548]$471,880]|433,022 ||$0.08335$_471,880|$36,121 $-40,640/$8,625]$475,984]|435,188 ||$0.083 36 $ 475,984|$40,675.Is 9,520]$526,179)|437,364)|$(0.093.37.||$526179]$40,878 $10,524]$§577,581.439,550]|$0.09338||$577,581]$41,083|[$11,552]$630,215]|441,748]1$0.09339|1$630215/$41,288 $12,604]$684,107]|443,957]|$0.09340|tS 684,1071%41,494/$686312]-|$39,290]|446177)|$0.093 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 28 of 37 Inflation Rate :f:: Reinvestment Rate : Invested Escrow Fees:fi: Initial KwH Collectable : Initial Cost per KwH]: 5 year step cost increase :}: FINANCIAL TABLES BULK FUEL STORAGE City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 29 of 37 TABLE I Summary of Facility Expenses to Participants City of Tenakee Springs NA NA y O&M R&R 'Total O&M R&R Total O&M R&R Total ear Annual $$Per Annual $$Per Total Total Per Annual $$Per Annual $$Per Total Total Per Annual $$Per Annual $$Per Total Total Per Payments Gallon Payments Gallon Payments Gallon Payments Gallon Payments Gallon Payments Gallon Payments |Gallon Payments |Gallon |Payments Gallon1[$12678/$00881$7,920)$0.055]$20598)8 0.143 |]§-1$-|$-{$-{s -|$-$ -|$ -]$ -[/$ -|$-|$- 2 [$12869/$0089|/$8198/$0.057/§21067/$o146{]$-[$-|$-[8 -_|$-}$ -{]$ -/$ _--48 -|$-|$ __-I$- _3_|$_13,062 |$_0.090]$8487)$0.058)$21,548)$0148;PS PS SU LS US IS :$-{$-1$ee a (ee4[$8 13,258[$0.091)$3,785|$0.060]$22042/8 0151]|$-|$-|$-[8 -|$-|$ -[[s -[s -]%-|$-|$_-|$-__5_[$_13,456[$0.092]$9,094)$0.062]$22550/8 0154]$ -[s -fs -[s -{ss _-[s -ffs is 88s es6|$13,658)$0.093]$9,413 |$_0.064 |$23,072 |$0.156 ]|$-_|$-_4$-_|3 -_|$-1$-$-[$_=f Se -TS SSC7|[$_13,863|$ 0.093|$9,744/$0.066|/$23607/$o159};$-[$-[$-|s -{8 $ -|{$ -|$-[$-|$-|$_-|$_-- _8 |§14,071)$0.094]$10,087 |$_0.068]$24158)$8 0162;18 -|S -|S-|S -JS _-48 :$-[$8 eS STS_9 [LS _14,282|$0.095]$_10,441]$0.070]$24,723|$0.1657 |$-_|$-{S$-|S eS TS SSS ae ee10[$14,496 |$0.0961$_10,808 |$0.072)$25,305|$0.168)|$-_{8 -|$ -|$a ee Oe OO -|$ _-|$YS -|$_oo1[$14,714;§0.097/$11,188/$0074/$§25902/$o171]/$-[|$-[$-[$ -[$ --|$--$-[$-|$ _---'|$-|$ -|$_- 12 |$%14,935 |$0.098 |$11,581)$0.076)$26516)$017477 $3 -(S$-_JS -=L$_-_fst §:$_-{[$SS SS"13|$15,159)$ 0.099|$11,988/$0.078|$27147/8 0.178}|$__Is -|$-[$s -|[$-|$-$s -[s -[s-[ss se14|$__15,386|$_0.100)$12,410|$0.081]$27,796)$0.181)|)$=S -_|3$-_|8$ -_|S SL -15 |$15,617/$0.101]$12,846/$0.083 §28463/8 0.184]|$-|$ -|_-[%_-_]$-|$ -$-|$ -[$8 -|$-{$JG 16]$15,851)$0.102]$13,298 |$_0.086 |$29,149|$0.188 ||$-_|$-_|$__1s -_|%-|$-3 -[8 -|$-|$-|$-{$___-_17_[$_16,089]$0.103]$ 13,765/$0.088]$29,8545 o1;|s$-[$-|$-[8 -Js -|s -IIs -|$=|$$LS18|$_16330]$0104]$14,249 $0.091]$30579)$0195}]$s -[8 -|S -Ts Ss -|$-Jys etsts 8 -|$[Se19|$ 16575/$0.105]$14,750)$0.094]$31325/$01991]$ -8 SU SSL LS -1$-|$_-|$_$e20|16824/$0.106]§15,268[$0.096]$32092/$o203|/|/$-[$-|$-[$-|$-|$-$-[$$_-|$ -|$ _-]$-21 [$17,076|$ O.107!$ 15,805|$_0.099 |$32,881)$207)$-|S -_1$-|$__-48 -1$_PSS SYS _ 22 [|$_17,332/$0.108)$16,360]$0.102]$_33,693|$02 T $0 LS ST Se Se 3 -L8 -1$-|$i{$__-|$23 [$17,592]$0.109]$16,935 [$0.1051 $34,528|$§0.215]|§-_|8 -_|$=[$Y "18 :$-|$-1$ee ee24[$17,856$O111]$17,531/$0109/3 35387/$0.219]|$-|$$-|$-|$-|$-$-|$-|$_-/$-|$-|$-25 |$18124|8 0112[$18147[$0112]$36271/§0.223]|$-|$-|$-|$-13 -1$-$-[s___-([$-|$-1$-|$-26 |$183961 $0.113 $18,785/$6.115/$37,181/9 O228;($-[$ -[S$ -[$$ -[$$ -j$ -${SSS -]$0+_27|$18,672]$0.114}$19,445/$0.119]$38117)$02337 7S -S$PS SS -$-18 218.-|$-|$AS :28 |$18,952)$0.115]$20,129|$0.122]$39,080|$_0.237 $-$-$-$-_4$-|$-$-{$ _-4J$-{1$$-|$ - _29 |S 19,236]$0.116]$20,836 |$0.126}$40,072|$__-0.242 ||§-__|$-_|$-_|$-[$e S TSS -1$-|$__=I$-JS_os30|S 19525]$0.117]$21,569]$0.130]$41,093|$0.247)13 -|FB GC HC S :$-{$-|$=|SSS : _31 [$19,817|$0.118 |$22,327]$0.133 |$42,144)$0.252)|§-_|$-_|$-_|%-_|$-|%-$oe eee ee ee _32_]$_201151 $0.120]$23,111 |$0.138)$43,226)$_0.2577]$_-TS _-S -{$-|$-|$={3 -|]$+ 33 {$_20,416/$0.121]§23,924|$_0.142]$44,3401 $0.262]|$-_|3 -_|$ -[8S -_|3 -1$:$$-|$-|$-|$-|$- 34 |$ 20,723|$0.122|$2476513 0146]$45,487/$0.268]|$-[$-|$-[$-{$s -|$-$-|$ _--{$-|$-|$-|$-_35_[$_21,034[$0.123|$25,635]$0.150|$46,609|§0274/18 -|S -|S -|$-[8 -|s 8 -|$-18 -|${$-|$- 36 [S$21,349|$0.125 |$26,536|$0.155]$47,885 |$0.279)1 $-BO US SYS $i 37|$_21,669)$0126[§27,469[$0.159]$49,138/$0.285]|$-$s -|$-[$-|$-{$-$-|$-|$ __--|8 -[$-|$-38 |$21,994)$0.127)$28,435 /$0.164]$5042918 021};s -Is -|$-[$8 -Js -|$_-dys -|$-|8 -[$-[$_-|s39[$22324]$0.128]$29,434/$0169]$51,758$0297//$-[$$ -I$-|$-|_-/$ -4s -|$-|$-|$--|8 -|$- 40 13 22,6591$0.130/$30,469/$0.174/$53,128/$0304]]$-1$-|§-|$-1$-|$-1]$-1$-|$-1$-|$-13 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 30 of 37 TABLE J PARTICIPANT ALLOCATION City NA NA Total Primary Capacity (Net)Gallons 58,500]|0 en)58,500 Percentage 100.0%]|0.0%)Jo 0.0%-100% Initial Throughput Gallons {|144,000)TC 144,000 Volumes Percentage -100.0%0.0%0.0%100% %Shareof O&M and R&R on Common Assets 100.0%0.0%|=0.0%|--- S=«iY 0% (based upon Primary Capacity) TABLE K ANNUAL O&M COSTS Annual O&M Costs City NA NA Total Annual O&M Expenses (per AE&E cost estimate)$__11,928 $-$_-$s __11,928 Common Power Costs (estimated based upon current)|$250;/$==-[I$-$250 Insurance (based on AMLJIA coverage)$500 $-$-$500 $12,678 ||$-$-$12,678 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 31 of 37 TABLE L 40 YEAR "O and M"CASHFLOW Inflation Rate Annual O&M Expense Assumed Throughput (Gallons)Per Gallon O&M Payment Council Year City NA NA Total NA NA Council NA NA Diesel Gasoline Total 1 $12,678 |$-|$ ----|$12,678}|116,000 28,000 144,000 --i/1s 0.088 |$-|$- 2 [$12,869]§-|$_-|$12,869}|116,580 28,140 144,720 -| -|T$oo ls -|g -| 3 [$s 13,062)$[S$LS 13,062]|187,163 [28,281|145,44a |-||s 000 ]$=[8 = 4|s 13,2588 8S 13,258]|7,749 [28.422]467d PS ont ss5{8 B456/8 -/$-[$13,456]|118337/28,504 146,902]==-|Ss sf 8 Coats dS6[$8 13,658/$|8 -|$13,658]}118,929 28,707 |147,636 --||$-0093/$ -[8 -_ 7 $13,863 |$=|3 13,863]F119,524|28,851 148,374 --||$0.093 |$-_|$--s ([$ wmonls -|8 =[$14,071]|120,121;28,995]149,116 |-|[8 oo94/s -[$ - "9 {$14,282 |$-[$_-|s 14282]|1207221 20140;149802 |tt*é«'"dC SS Co SSto|$. 14496/8 -[$ --[$14496]]121,326]29,285)150611]|ESC SO -S-tt [s14,744 [8 -/$-|$14,714)]121,932]29,432 |151,364 :-|{s 0007/9 =TS12{[s 14935)$-18 -|{$14935]]122542[29,579 152,21]|CBS23[$s 15159/$ -1S8 =|$15,159]|123,155|29,727 |152,882 -|ss-J 8 o099}/s -|$-| 14 ° -«1S 15,386/$ -|$-[$15,386]|123,770.29,876|153,646 --l}s omols -[$s - "15«4 $15,617 |$-|8 -|$15,617]|124,389 30,025 154,414 --|13 o11;$-|g -. 6 |S _--15g51/$Ss -[$|S$15,851]|125,011;30,175 155,186 _ -||s 0.102 |$-|e 17 |$16,089]$-|8 -1816089]|125,636|30,326 |155,962 --{._-t1$0103 |$-|g -. 18 $16330/$-(|$-|§16330}]126,204)30,478 |156,742, r}[s otoafs tS 19 §16575/$ -|$ -|§16575]|126,896]30,630 |157,526 --T$0105/$ -I$_ 20 «I$16,824/$-|$-|$16824)|127,530 30,783 158,313 --1}§0.106|§-{$$-21.[$17,076 /$-[$-f$17,076]|128,168|30,937 159,105]|COOT IS -I$_ 227 |s 17332/$8 =FS17,332]|128,809]31,092 |159,900]S08 $s23.|$17,5921$_-|$-|$17,592]]129,453 |31,247 160,700 --|/$ots SO-COd SCO!” 24 $17,856 |$at -|$17,856]|130,100 31,403 161,503 --|]s$o1i;$-1s - 25 [$-18124;$8 -|$18,124}|130,751 31,560 162,311 --|1$0.112 |$-Ig : 26 18 18396 {$F -[$18,396}|131,404]31,718 |163,123 [|Ts.0.113 |$-|[¢-| 27 (8 18,672[$=|S |$18,672]|132,001)31877 |163,038]PS tts Ss2«dS 18,952/$ -|$-{$18,952]]132,722|32,036|__-:164,758 -|-118 0115 |-_|$- 29 -(«d S$19,236 |$-|$-}$19,236]|133,385 [|32,196 165,582 --||[$sotto [$d 30 '$19,525/$-/$ --|$19,525]}134,052|32,357 166,410 --|[3 o117/§-|S -. 31 [s 19817/8 -[$|-|$19817]}134,722 32,519 167,242]=f 0.118 |$-le. 32 «(§20,115 |$-|$--|$20,115]|135,396 |32,682 |168,078 --[]$scon20§| 33.[$8 --20,4161 $-|$_-|$20,416]|136,073 |32,845 168,918 --}1s 0.121 |$-_|s 34 [$ 20,723/$ -|$ -|$20,723)}136,753 |33,009|169,763 --11$0.122 |$-1$- 35.|$21,034/8 -1$.-|$21,034)|137,437 33,174 |170,612]=-T[s 0.123 |$-1|$- -36- -«d:S 2349/8 -1$--1$21,349]|138,124]33,340]17144e5f fe 0.125 |$-1$_ 37 $21,669 |$-|$-1§21,669 138,815 33,507 172,322 --lT1s$0.126 |$-|$- 38 E 21,994 |$-|$--{$21,994]|139,509 33,675 173,184 --|1s 0.127]§-1§- 39 «S$22,324/$-1/$ --|$22,324 140,207 |__33,843 174,050 -"lls 0.128 1 $-|8 : 40 $2265991 4-18 -|%22659]|140,908!34,012 174,920 --{8 0.130 |$-|$- City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgtade Business Operating Plan Page 32 of 37 TABLE M 40 YEAR "R and R"SCHEDULE Cost Allocation Year of Present Day Inflated Yearly Inflated City NA NA Activity R&R Activity Value Value Total 5 Electrical Upgrade $2,000 JS 2,123|}$2,123 ||$2,123 }4 S-$- 10 Fence/Gates Upgrade $3,434 1]$3,927 $3,927 1]$-$- Repair Pad 2,427 2,775 2,775 -- Repair Steps/Transfer Enclosure 5,293 6,052 6,052 -- Pump Replacement 5,181 5,924 5,924 -- Valve Replacement 4,021 4,598 4,598 -- Repair Pipelines 3,600 4,116 4,116 -- Electrical Upgrade 2,000 2,287 2,287 -- ____}|Yank Inspection ft 8,700 FY 9,947 11 $39,626]9947 - 15 Electrical Upgrade $2,000 |]$2,464 $2,464 }]$-$-[Replace Dispensers st]29,400 |f 36,214 ffs 38.677 ]]6214 ff | 20 Fence/Gates Replacement $10,824 |}$14,363 $14,363 {|}$-$- Repair Steps/Transfer [nclosure 5,293 7,024 7,024 |]-- Pump Replacement 5,181 6,875 6,875 -- Valve Replacement 4,021 5,336 5,336 -- Major Electrical 46,900 62,234 62,234 -- Repair Pipelines 3,600 4,777 4,777 -- Replace Pipeline Valves 3,514 4,663 4,663 -- |[rank inspection 8700 |}_11saa {fs sn6si6 ||1544]-| _25 Electrical Upgrade TS 2,000 J]$2859 1 $2859 1 $2859 1]S-S- 30 Fence/Gates Upgrade $3,434 ||$5,289 $5,289 }]$-$- Repair Pad 2,427 3,738 3,738 -- Repair Steps/Transfer Enclosure 5,293 8,152 8,152 -- Pump Replacement 5,181 7,978 7,978 -- Valve Replacement 4,021 6,193 6,193 -- Replace Dispensers 29,400 45,275 45,275 -- Repair Pipeline 3,600 5,544 5,544 -- Electrical Upgrade 2,000 3,080 3,080 -- Tank Inspection 8,700 13,398 ||$98,647 13,398 -- __35__|[Electrical Upgrade IS 200017 $3,318 1]$3,318 1)$3,318 f]$-__YS 40 Renovate Pad $44,774 ||$80,020 $80,020 |}$-$- Fence/Gates Replacement 10,824 19,345 19,345 -- Repair Foundation/Statrs 20,522 36,676 36,676 -- Pump Replacement 5,181 9,259 9,259 -- Valve Replacement 4,021 7,187 7,187 -- Major Electrical 46,900 83,820 83,820 -- Replace Pipelines 74,764 133,619 133,619 -- Replace Pipeline Valves 3,514 6,280 6,280 -- Refurbish Tanks 20,048 35,829 |}$412,035 35,829 -- $454694 ]1$714,102 ]|$ 714,102}])$714,102 |]$-$- City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 33 of 37 TABLE N 40 YEAR RENEWAL AND REPLACEMENT CASHFLOW City Inflation Rate :Initial Cost per gallon ($/gallon): Reinvestment Rate :20 Year R&R:Annual increase : Escrow Fees:20 Year Loan Proceeds:|:City Initial Throughput (gallons):NA NA Initial Throughput (gallons):Initial Cost per gallon ($/gallon): Loan Rate:NA Initial Throughput (gallons):Annual increase : Loan Term:NA Initial Cost per gallon ($/gallon): Annual increase : R &R Fund Balance Assumed Throughput (Gallons)Per Gallon Payment Beg.of Annual Deposit .Interest End ofYearVes .Principal Debt Service Renewals/Earnings (Net Year City NA NA City NA NA Balance City NA NA Total Received Replacements of Fees)Balance Us[s +[$7,920]$-{$LS 920 _|$_-4$-|%7,920 144,000)ed -|[3 0055/8 =TS 2/8 7920/$819($ -|$-[$8198]$-|$158|§16,277,144,720 |=|.=}Is oos7]s -18 . 3][8 16.277{8 8.487/$8 S887 $-|$326]$25,089 145,444 |-:}=][8 oossfs ss4][s_25089]$8785/$-=-|$ -|$875}|S -1$502|$34376]|ss a4gi71 |=]SCs sd .'S51 ]$_34376)$9,094 §-|$-|§904}|[$s 2123/$ -645/1§4to02]|doz]Tt tied CLS 0.06218 #-$-"oOU TS 41,992/8 9,413 [$-|§-[$943]$_-|$840]$52,245]|47,036]|-|[s ooo]s -[§_ Tis 5224516 9744/8 -[8-8 TAA __|s -|$1,045|$§63,034 148,374|es -|[$0.066 |$-|§y 81 [$ 63,034/§10087/$|$$0087]261 $74381|]t491i6[=|Cd _0.068]$a Xen 9 $ 74381/8 10441(/$ --|$-|$10,441|5g _-|$1,488]$86,310 149,862}fo.-[||]$-oovos10]1s g6310/$ 10808/$==-|$10,808 $39,626 |$ 934/$58,425}|150,611 -{_-|18 0072/¢&4-|S -.atts 5a425]$ aiisafs =-/$sid tts]C«dEC tStsié'<'i*SSS:C C™* * '"'«é'"dC LS 70,782,|ttc]Cd]t™t é= -dz'CrS 007m41$-I$-12]]s 70,782[$sar ($8 set]8 ates 83,779)|5221p |LS 0076 -_|$: 3]]s_83779|$11988 |S SS gga}1676}$97,443}|t5agezf ef 0078 _|$ 14][$$97,443]$12,410]$-|$-|$§1240,|-|$1,949}§111,802 153,646[ -f Ct -[8s _- a5|{8 111g02/$1284/8 -[8 -|$12840 |38.6775 1,462/$87,433}|]ss154atat eT oo {$ -[§|-. 16}t$ 87,433/$ 13,298/8 -|$--[$13,298||$-1$1,749 |$102,480.155,186 |-[|=P T8086]gs -Is. 17}1$ 102,480|§13,765/$=[$8 -[$13,765||$s -|$2,050]$118,294 155,962)fe 00s8i$ -[8-.181 /$ 118,294]$14,249]$-/$-1$14,249 |8 2366]$134,909]|156,742]fT -[8 _- 19||$_1349091$14,750 |$-[$-|$14750,$-|$2,698 |$152,357 157,526 -|.dd 0.094 |§-Is20||$ 152,357]$15,268 |§-|$-|$15,268}$§70,090 ||'$116,816|/§2,113]§123,011.158,313 |---t{s --o.oog |s_-|e21)]$ 123,011/$-15,805|/$-|$-{s15805]-si*dT S299]$2741 §131,792]]sso]t '"-«é *dS' CS 009/$ -|g -22|{$ 131,792]$16,360 |§-/$-|§16,360 $9299/$-|[$2450/8 141,303]|159,900]--11$ o102/$ek23|$141,303 $16935/8 -|8 -|$16,935,$9,299 $-|$2,640]$151,580 160,700|-|_-|18 o105/$-_|s __ 24]|$151,580/$17,531/$--|$-[$17531 sf 9,299 |$_-18 2,846|$162,658 161,503.=f -t|¢"0.109 |§-1s25||s 162,658{$18147/§ -|$ -[$18147]dS 9,299 |§2,859 |$3,010[§171,657 162,311 |-|et 0.112 |§-I$: 26)/$171,657/$18,785/$-([§-|s 18,785]sd'9,299 |$-|$3,247]$184,390 163,123 |--1 15 o15|$ -{$-_ 'a7 ||g 184390/$ 19,445/$SS-($-Ss-= «dS |do ge 35024 $§198,039]|163,938 --|{$ om[s isd S _ 28 $198,039 $20,129/$--|$-[$s21290 sd 9,299 |$$3,775 |$212,643 164,758[|C=C *dCd SC -_|$__ 29)|$ 212,643]§ 20836/8 -|$ -|{$20836]ss $299]§$4,067]§228,248]|165,582,|-|4$0.126 |$-|g.-30]|$228,248]$ 21,509/$|S Soo]92991 §$2,406]§144,277 166,410 |--}eds 0.130/$=[831)[§ 144277[$22327/8 (8 $22,327 es -|$2,886]$§169,489 167,242 |--l ts 0133/$- «(|$-32}1$ 169489/§23,111 |$-|$-|$23,114 $-[$3,390]$195,991 168,078 |:-|[s 0.138 |$-_|$E 33)7S 195991|$23,924]$-|$_-[$23,924|__$dS 3,920 |§223,834 168,918 |:-||$0.142 |$-_|$- 34/1 ]§ 223,834/$24,765 |$-|$-|$24,765 $d 4477 |$253,076 169,763 |ed -|8s 0.146 |$-_|$-35.1 |$253,0761$25,635 |$_-[$-|$25,635,$3,318 |§4,995 |$280,388}|170,612)PY PS 0.50]SF ifs :36]|$ 280,388]§26536/6 -|$ -|$26536]__$-|$5,608 |$312,532 171,465 |:-|0.155]§_-_|s371[$312532]$ 27,4691$--|$-|$27,469.| $-($_6,251|$346,252 172,322 |--l 4s 0.159 |§Is"38 |1§ 346,252($28,435 |$$s|$28,435|_$--{$ 6925|$381611]|'173,184|--||s 0.164 |$>5 > 39}418 381,611]$29,434 |$-|$-|$29,434|__$18 7,632|$418,678 47405s0[-||$0.169 |$-|$-40 $418.678 $30,469 |§-1$)-!$30,469,$412,035]$-|$37,111 174,920 --|[$0.174]$-I$- City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 34 of 37 TABLE N -PAGE 2RandRParticipantPaymentSchedules Council NA NA R &R Fund Balance R &R Fund Balance R &R Fund Balance Year]Bea of Annual Peincipal Renewals/|__Mtere .Year|Bes of Annual Principal Renewals/|__Interest Year}BOF |annual |Principal}Debt |Renewals/|interestYearDepositRestedDebtServiceReplacementsEarnings(Net Total Year Deposit Reve Debt Service Replacements Earnings (Net Total Year Deposit Recehnd Service }Replacements Earnings ToralBalancePIofFees)Balance of Fees)Balance "P (Net of Fees)1 fs -8 7,920 S -17s -{$-__§-|$_-|P 1s -js _|$-1§-2_]$_7,9201$8,198 i i $158 |"2 /$-{[$: _ $-|$-|[_2 ]s -Ts -__-_s__-[s =3-48 16277[8 8487 $326|$2 3 fs-[$ -_|$-18 -]f]_3-[$s -fs -a $-[$4]25089/$ a7es[_[$502]§448 -|$:|$-[s fe 4 fs fs gs5|§34,376$9,094 2,123 |$645 5 1s -_|$-f|o $-[$s -[$_eff 5 ss -_|$s.-[gs -fs6[$41,992/$9,413 $840 | sj}6 Js -1s :is -[$-|[.6_]$ -[$s-|$-|$WT[852,245 |$74t |=$1045)63,0304 |[7 Js =[s - oe $-[$-|[-7 |[s_-[s_-$"1s8|$ 63,034|[$10,087 |$1261'$743817,8 1s -[8 -|___i$-|$8 [ss -[$-at oe9|s va3eifs_idsi]|Sids*d Sapp 86310 ]f 9 Js Ts :|$"ls.-|e Js ts [stsJo[$s s6si0[$10.808]|89,626 |$a $s sadas |p to fs ts Ps ss to ss aALp$__58425 |$11,188 $1,169,.$70,782)11 7S VS :-$$tS S :$$12 ]s_7o782[$158[|COT !tCsi*dES ato 83,779 |]12 Y 8 -|g - $-/$-|]12 |s $f -Is -[$-13.]$83,779|$11,988 $1676)$973]13 PS sf [$s _-|$:$s -|$: __$$we [s9743]$1240,|oto §attsor ty a4 fs;ls :ee [$$s -|$|of i$-[$-15 |$tisor!$1sio[|Bo77 |§a4o2[s a7a33a fp as fs ts ss so [ss ss16|$87,433 $13,298 $1749 $F 1024807]16 TS -TS |$8 $-is ef 17 |$102,480)$13765[=|sf 50[$$118209 ff 17 Js -dg E [ds 3 -[$s :an enee ee18|$118209;§14299,OE 2366]$134,909 ff a8 fs |Ls -|$$-{$-|$$"19 |$134,909/$14,750){8 2.698|$152357 19 $$$ -[$e _ls -[s20|$152,357/[$15,268]$70,090|-|116,816 |3 $123,01|]2043 -I$-1$-|gs gs $s -{s -i$|$ -[$lg."21 [$123,011 |$§15,805 $9,299 |§$131,792]21 I$-|$-[$$-|TS $-fs -f [sf is -[$22 |$131,792|$16300!sd $9,299 i$2450!$141,303f]22 78 -S$-$-|sd $-js -}So -f gs ig"23 |$_141,303|$16935][$9,299 $2,640]$151,580 ]]23 |s 4s -s --f Js -[seh $$-|[s"24 [$151,580 [$17,531 $9,209 |[S$2,846)$162,658 |]24 ;ae |ee ns ee [$_$ -|$-|{$=f $s -|$ 25 JF162,658]$18147)|$94,299 2,859;$3,010$174,657]25 FS TS-$|$$o-|§tS -_|$-|$26 |S171,657 |$18,785 $9,209|TS 3247 $184,390 J]26 1S -_\$:-..|$:$$$-I$:{§:ee ce"a7 |§184,300 |$19,445 $9,299 $3,502,$1980394]27 fs Ts|$-[ss $$sd $-|$ 28 $al [S$9299,$8775$2 28 I$-_|s :-_{[$ -$ 3 Js -|[$_-$_|s -[$"29°6 $9,299 __[8 4067[$228,248 ff 29 [$s $ -j$ds [$-_{8 -|$els30$9,209 |986471 $2406)FW277 FP 30 TS -LS $$S80 eS nei31|$144,277 |.2886|$109,489 |]31S -|$-7 $$eff ats Ts]Ts $: 32]$169,489 =$195,991 ]]32 [$ae es -+t§_3 "ff 32.78 -I$- _-{hf $s33[$195,991 $3,920;$223,834 }|33 $s -1 $:-[sls -|]33 Js -[s -|$-|$34 [8 223,834 /8 24705;TT TT $253,076 |]34 PS $- ee ee $-|$_-|)34]-[8 - [T '$-|s"35.|$253,076 |$25,635 3,318|$4,995 [$280,388 |]35 |$-1$-|$-[8 -[$_-If33 Js;fs -f $sel -"36 |$280,388/$26,536 $ 5,608/$3125321]36 J$ -[$F$-f isis -|[36 Js -[$s "fo Zz $-[$="37:P§312,532[$27,469 $6,251 /$346,252]37 [$-_|$-i eeee Ss |ere ©_"ls -[s38|$§346,252|$§28,435 $6,925|$381,611 ]]38 [$-|$: _ $-/$-{]33 fs -[8 -$-[$- 39 |$38011 [$2434]--L _[$__7,632[$_418678]]39 F$TS Is -|$-|f 39 fs st Ts -|$: 40 1$418,678]$30,469 T412,035 |$-|$37,111 {{40 [$-1$-1$:($-|$-|$-}]40 [$$-|$$-{8 -/$ City of Tenakee Springs Bulk Fuel Facility and Electric Utihty Upgrade Business Operating Plan Page 35 of 37 City of Tenakee Springs TABLE O Loan Schedules Year 20 R&R Loan -City 298.67): Beginning Principal Ending Year Balance Interest Payment |Payment |Balance 1 |$70,089.87|$3,854.94 |(99,298.67)$5,443.72 |$64,646.152JS64,646.15]$3,555.54]($9,298.67)|$5,743.13 |$__58,903.02__3__|$58,903.02]$3,239.67 |_($9,298.67)]$6,059.00]$_52,844.024$52,844.02 |$2,906.42 |_($9,298.67)]$6,392.25 |$46,451.775|$46,451.77)$2,554.85 |($9,298.67)$6,743.82 |$39,707.95_©|S 39,707.95)$2,183.94 |_($9,298.67)$7,114.73 |$_32,593.227__|$__32,593.22|$1,792.63 |__($9,298.67)|§7,506.04 |$_25,087.1881$25,087.18)$1,379.80]($9,298.67))$7,918.871$17,168.319{$17,168.31 )$___944.26 |($9,298.67)$8,354.41]$8,813.90 10 $8,813.90 |$484.76 ($9,298.67)|$8,813.90 |$(0.00) $22,896.80 ($92,986.67)$70,089.87 Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 36 of 37 APPENDIX A:PRIMARY OPERATOR STATEMENT OF QUALIFICATION The Primaty Operator Statement of Qualification includes: 1.A description of the Primary Operator,its personnel and experience,and its responsibilities and functions.This discussion includes a description of the ability and history of the Primary Operator to operate a bulk fuel facility as a business and/or its history of operating other business enterprises,as well as a description of the Primary Operator's fiscal controls and accounting procedures.This discussion details organization history,management and structure;identification of key personnel,their experience and responsibilities;and,proposed organization of bulk fuel facility management and operations,including an organizational chart. 2.A description of the Primary Operator's,if any,staffing or training needs. 3.A description of the training plan proposed by the Primary Operator to address current and future needs. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Page 37 of 37 CITY OF TENAKEE SPRINGS Community History Tenakee Springs was originally called Tenakee with the name altered in 1928.Tenakee is from the Tlingit word "tinaghu”,meaning "Coppery Shield Bay”.The name refers to three copper shields, highly prized by the Tlingits that were lost in a storm. Early prospectors and fishermen came to Tenakee to wait out the winters and enjoy the natural hot springs.Around 1895,a large tub and building were constructed to provide a warm bathing place for the increasing number of visitors.In 1899,Ed Snyder established Snyder's Mercantile,which still operates today.A post office was established in the village in 1903.Improvements to the original hot spring bathhouse were made in 1915 and 1929.The existing bathhouse was constructed in 1940.Three canneries operated in the area between 1916 and 1974.A logging camp also operated for a period of time. Today,the community of Tenakee Springs has approximately 104 year round residents and 1s considered a retirement community and summer retreat for Juneau and Sitka residents.The economy is based on a combination of subsistence living and wages earned from commercial fishing or the tourism industry.Eighteen residents hold commercial fishing permits.The City and the store are the primary local employers. Description of Business History Community provided water,sewer or refuse service is not available.Many homes ate fully plumbed. The City owns and operates a diesel generator and the electrical distribution system.There is local interest in developing hydroelectric at Indian River. The City operates a variety of business and service activities in the community. CITY OF TENAKEE SPRINGS 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. Health Clinic City owns the building and leases the facility to SEARCH for operations Community Hall,City Offices &|Own facilities and run programs Library and services from these. Harbor Management Manage harbor activities through a harbor master City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-1 The City of Tenakee Springs purchases fuel 6 to 8 times a year from the fuel supplier,Petro Alaska. Fuel is delivered via barge.The City purchases approximately 10,000 gallons of diesel #1 fuel and approximately 10,000 gallons of diesel #2 fuel per delivery.The City is just completing its first year of purchasing and selling fuel.As a result,the total annual amount of fuel purchased is not known. The City sells #1 diesel fuel for heating for $2.88 to $3.03 per gallon.The City sells #2 diesel for $2.67 to $2.82 per gallon.The City sells gasoline fuel for motor vehicles for $2.72 to $2.87 per gallon. The City of Tenakee Springs 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 45.0 cents/kilowatt per hour.A total of 120 meters are maintained.The City participates in the Power Cost Equalization (PCE)Program.The residential rate changes depend on PCE available funding. The City maintains a residential collection rate of 90 to 95 percent and a commercial collection rate of 90 to 95 percent.In fact,collections are often in excess of 100 percent due to the fact that some customers pay their invoices several months in advance.During the period of October 2003 through September 2004,441,760 kilowatt hours were generated and 390,659 kilowatt hours were billed by the City's electric utility. Description of Fiscal Controls and Accounting Procedures The City of Tenakee Springs Mayor,Art Bloom,oversees and approves all expenditures greater than $50.The Finance Officer position is responsible for accounts receivable and accounts payable for City projects outside of the bulk fuel and electric utility.The Billing and Collection Agent,Terry Kennedy,is responsible for the bulk fuel and electric utility accounts receivable,and accounts payable.And,the bookkeeper position is responsible for payables.All City staff has the authority to submit check requests,which must have supporting documents prior to being processed by the Finance Officer or Billing and Collection Agent.City checks must be signed by two authorized signatories.All seven City Council members have signature authority.Checks are copied prior to issue,attached to appropriate supporting documents and filed at the City's office.The City's accounting office uses the software program Quickbooks. The City operates on a July through June fiscal year.The Juneau based accounting firm Elgee Rehseld Mertz,LLC conducted the last audit of the City approximately 10 years ago.There were no significant findings with that audit.No recent audits have been conducted.The City financial staff has recently developed a relationship with Elgee Rehseld Mertz,LLC to ensure that their financial policies and practices are appropriate. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-2 Management and Structure The City of Tenakee Springs Council consists of seven members.Council member names,titles and term ending dates,following the October 2004 election,are listed below. TENAKEE SPRINGS CITY COUNCIL FY2004 COUNCIL MEMBERS Art Bloom,Mayor William Eberhardt,Vice Mayor Lawrence "Mick”Marx,Member H.Al Rubin,Member Donald Pegues,Member Sue Scriber,Member The City of Tenakee Springs overall services and structure is shown in the organizational chart below.At the apex of management is the City Council comprised of the Mayor,all representing the community of Tenakee Springs. City of Tenakee Springs Organizational Chart Art Bloom Mayor | Vacant City Clerk/Council Secretary Vacant Finance Officer Bill Eberhardt Pete Bogart Electric Utility M anager Fire Chief Ken Wheeler Scott Wilson Fuel Sales Manager Harbormaster Jack C.Thomas Mark Meyer Public Works Director Zoning Official Lisa Speno = Librarian City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-3 Identification of Key Personnel The current Bulk Fuel Facility Manager,Ken Wheeler and the Electric Utility Manager,Bill Eberhardt will provide overall direction and management to the newly constructed Bulk Fuel and Electric Upgrade Facilities.Mr's Wheeler and Eberhardt will be involved in this project from the beginning and will be the main contacts for the Facility.These managers and Art Bloom,City of Tenakee Springs Mayor,will work with AIDEA/AEA and the Denali Commission to ensure the City's role in the project timeline. Ken Wheeler is responsible for day-to-day administration of the bulk fuel facility.Mr.Wheeler's responsibilities may include community/customer services,businesses /financial management, budgeting,grant writing and administration,planning,purchasing,and risk management. Additionally,Mr.Wheeler is responsible for inspecting the Bulk Fuel Facility for possible leaks and spills,minor maintenance and repairs,and coordinating major maintenance and repairs.His position will remain the same with the new Bulk Fuel Facility.See attached resume and job description. Bull Eberhardt is the Electric Utility Manager of the existing Electric Facility and is responsible for the operations and maintenance the electric generators as well as the distribution system.His position will remain the same with the new Electric Upgrade Facility.See attached resume and job description. Robert Walters is the Power Plant Operator of the existing Electric Facility and Delivery Specialist for the existing Bulk Fuel Facility.Mr.Walters is the primary operator of the existing electric generator facility and is also responsible for the general maintenance and repairs of both the bulk fuel and electric utility facilities.His position will remain the same with the new Facility. The Municipal Finance Officer position is responsible for payroll,accounts payable,tax filings and schedules,and for tracking project expenses and preparation of required project financial reports for both the bulk fuel and electric utilities. Terry Kennedy is the Fuel Services Billing/Collection and Inventory Clerk and Electrical Billing and Collections Clerk/Meter Reader for the City and is responsible for the bulk fuel and electric utility accounts receivable,meter reading and billings.See attached resume. Terry Kennedy is the acting Electric Utility Bookkeeper and Fuel Services Bookkeeper for the City and is responsible for accounts payable. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-4 Organization of Bulk Fuel Facility Management and Operations The City of Tenakee Springs new Bulk Fuel Facility will have the following organizational structure: City of Tenakee Springs Bulk Fuel Project Staffing Art Bloom Mayor Ken Wheeler Bulk Fuel Facility Manager I I l Robert Walters Delivery Specialist Don Morgan/Eve Martin Dock Sales Terry Kennedy,Acting Fuel Services Bookkeeper Terry Kennedy Billing/Collection/Inventory Clerk Organization of Electric Upgrade Facility Management and Operations The City of Tenakee Springs new Electric Upgrade Facility will have the following organizational structure: City of Tenakee Springs Electric Upgrade Project Staffing Art Bloom Mayor Bill Eberhardt Electric Utility M anager r ] Robert Walters Power Plant Operator Terry Kennedy,Acting Electrical Bookkeeper Terry Kennedy Billing/Collections/M eter Reader Ken Wheeler Lineman Staff Training Needs Below is an initial list of training and assistance that project managers have identified for the City's staff: e Oil Spill Response Training e Bulk Fuel Operator Training e Advanced Power Plant Operator Training e Familiarization with New Facility and Components City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-5 Proposed Training Plan The City will utilize training resources available through AEA and the Alaska Vocational Technical Center to ensure proper training of its personnel.The following is a summary of those resources: e Alaska Energy Authority (AEA) The Alaska Energy Authority has developed a series of courses relating specifically to Bulk Fuel and Power Utility operations.These courses are taught through the Alaska Vocational Technical Center (AVTEC)in Seward: Phone:(907)-269-3000 Contacts Monica Moore,Training Program Manager,Alaska Energy Authority/AIDEA Address:813 West Northern Lights Blvd.,Anchorage,Alaska 99503 Phone:(907)269-3026 Fax:(907)269-3044 Web Address:www.aidea.org/training.htm Email address:mmoore@aidea.org Dick Harrell,Instructional Administrator,Alaska Vocational Technical Center address:P.O.Box 889 809 2"Avenue,Seward,Alaska 99664 Phone:(907)-224-4162 1-800-478-5389 fax (907)224-4144 Web Address:www.artec.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 1s: 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 1s: 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. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-6 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. 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 (DEQ), Environmental Protection Agency (EPA)and the US Coast Guard. e Alaska Vocational Technical Center (AVTEC) The Alaska Vocational Technical Center (AVTEC)is located in Seward Alaska approximately 120 miles south of Anchorage via the Seward Highway.In addition to offering onsite training and courses AVTEC staff also provide off-site training. Contact Admissions Office Address:P.O.Box 889 809 2"Avenue,Seward,Alaska 99664 Phone:(907)-224-4152 1-800-478-5389 fax (907)224-4143 Web Address:www.avtec.alaska.edu Technical Assistance Provided Skilled Labor Business Administration Facility Maintenance and Operations Cost Fees for courses vary based on the specific program.An estimated fee for various programs has been included next to the listing of programs offered.The estimated fees include tuition,activity fee,security deposit,room and board,and books and supplies.Broken 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 coutses ate offered relating to City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-7 Skilled Labor: Construction Machinery and Diesel Engine Technology -This program teaches students the skills and competencies of servicing,maintaining,and repairing construction machinery and diesel engines.Approximately 40 percent of the course is classroom instruction with the remainder being shop work.Four certification levels can be obtained within the program.The entire course will cost an estimated $7,280 and take approximately 40 weeks or 1379 hours. Basic course content includes:tire repair;basics of equipment operation;chassis components;differentials;transmissions;brakes;electrical systems;hydraulic systems; introduction to gas and arc welding;diesel engine operation and tuning;precision measurement;disassembly and reassembly of diesel engines;fuel injection systems and governors,including electronically injected diesels;mathematics;industrial first aid;job search skills;and,shop safety. Welding Technology -This program teaches students the skills necessary to successfully pass the AWS-D1.1 Structural Certification Test and become employed in the welding and fabrication industry.Certificates can be obtained in;Combination Welder,Welder SMAW, Wire-Feed Welder,Aluminum Welder,and Welder Helper.The entire course will cost an estimated $5,260 and take approximately 20 weeks or 700 hours. Basic coutse content includes:O.A.W.(Oxyacetylene Welding);S.M.A.W.(Stick electrode); G.M.A.W.(MIG);G.T.A.W.(TIG);shop safety;industrial first aid and CPR and job search skills. Industrial Electricity -This program prepares students for entry-level positions in the field of industrial electricity.The course is broken into three parts;classroom presentation, experimental lab work,and electrical maintenance shop work.Four certificates can be obtained,Industrial Controls Technician,Industrial Electrical Technician,Electrical Apprentice,and Electrical Helper.The entire course will cost an estimated $8,175 and can take up to 40 weeks or 1400 hours depending on the certification level. Basic course content includes:electrical theory and wiring practices;electrical construction and national electrical code,industrial process automation,and job search and interview skills. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-8 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,repait and diagnostics to maintain installations and repair numerous types of facility equipment.Approximately 50 percent of the course is classroom instruction with the remainder being hands on training.Two certificates can be obtained: Building Maintenance Repairer and Building Maintenance Repairer Helper.The entire course will take approximately 38 weeks or 1316 hours. The main courses of study are carpentry,plumbing,heating and electrical.Basic course content includes:Carpentry (blueprint reading,power tools and hand tools,framing, sheetrock,structural repair,foundations);Plumbing (names of fittings,join pipe,repair and replace fixtures);Heating (proper cleaning,troubleshooting,preventative maintenance);and, Electrical (electrical theory,residential wiring,electrical troubleshooting,national electrical code,blueprints,schematics). Facility Maintenance /Mechanical -This program prepares students for installation, maintenance,service,repair and diagnostics of HVAC/R equipment.Approximately 45 percent of the course is classroom instruction with the remainder being hands on training. Six certificates can be obtained:Plumbing and Heating Technician;Plumbing and Heating Repairer;Plumbing and Heating Assistant Repairer;HVAC/R Technician;HVAC/R Unit Repairer;HVAC/R Helper.The entire course will take approximately 36 weeks or 1260 hours. Basic course content includes:electrical theory;troubleshooting and repair;reading blueprints and schematics;electrical circuits and controls;testing circuits,system design; retrofitting systems;heat loads;installation techniques;heat pumps;oil,gas and kerosene heating systems;domestic refrigerators and freezers;small hermetic systems;refrigeration systems;heating and cooling systems;introductions to carpentry,residential wiring and computers,and industrial first aid. Power Plant Operation -This program prepares students for employment within a power plant.Approximately 60 percent of the course is spent operating and maintaining diesel generator sets representative of installations in rural Alaska with the remainder of time spent City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-9 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 houts. Basic course content includes:engine theory,maintenance,and troubleshooting;electrical system theory maintenance and troubleshooting;generator theory and maintenance; introduction to electrical distribution systems;operation of diesel electric sets;control panels;paralleling generator sets;load management;fuel management;waste heat recovery; plant management skills;power plant safety;industrial first aid and CPR;and job search skills. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-10 RESUMES/JOBS DESCRIPTION City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-11 City of Tenakee Springs PO Box 52 Tenakee Springs,Alaska 99841-0052 Work 907-736-2207 Fax 907-736-2207 Bill Eberhardt Employment Previous Experience City of Tenakee Springs November,2004-Present Electric Utility Manager 1993 -11/2004 -Retired 1982 -1993 Kodiak Electric Association, Power Production Manager Responsible for power operations,reporting to the General Manager and Board of Directors 1978 -1982 United States Coast Guard Electrical Engineer/Power System Perform/design maintenance supervision in Alaska Coast Guard shore stations. City of Tenakee Springs -City Council Member Education Mountain Home High School Diploma University Portland BS/SE -1960 Registered Electrical Engineer through 1993 Community Work City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-12 City of Tenakee Springs PO Box 52 Tenakee Springs,Alaska 99841-0052 Work 907-736-2207 Fax 907-736-2207 Ken Wheeler Employment City of Tenakee Springs February 2004-Present Bulk Fuel Facility Manager Operates and maintains the bulk fuel utility.Responsible for coordinating fuel orders,shipment,transfers,and deliveries. City of Tenakee Springs 2003-Present Electric Utility Lineman Woodworking -Self Employment Previous Experience ERA Aviation 1991-2003 Commercial Helicopter Pilot Education 1973 Newport Harbor High School Diploma Pierce College,AS Central Washington University -Electronic Engineering City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-13 City of Tenakee Springs PO Box 52 Tenakee Springs,Alaska 99841-0052 Work 907-736-2207 Fax 907-736-2207 Terry Kennedy Employment Previous Experience Education Skills &Training Community Work City of Tenakee Springs 1989-Present Fuel Services Billing/Collection and Inventory Clerk Acting Bookkeeper 1989-Present Electrical Billing and Collections Clerk/Meter Reader Acting Bookkeeper Cougar Production 1984-Present Self-employed,Accounting and Bookkeeping Tenakee Wood 1988-Present Accountant and Bookkeeper The Shamrock -Retail Art 1985-Present Co-Owner,Bookkeeper US Postal Service 1989-1996 Postmaster Relief 1978 High School GED Pima Community College,1 year University Alaska Fairbanks,College Algebra Course Tucson Young Women's Company,Landscaping/Carpentry Course Tucson Urban League,Electrician Helper Certification 1992-Present Planning and Zoning Committee,Current Chair 1995-Present School Board Advisory,Current Chair City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-14 CITY OF TENAKEE SPRINGS JOB DESCRIPTION BULK FUEL FACILITY MANAGER Exempt (Y/N):No Salary: Division:Bulk Fuel Location:Tenakee Springs Employee:Supervisor: Approved By:Mayor Date: SUMMARY:Plans and directs activities of bulk fuel facility operations.Ensures facility is maintained according to guidelines outlined in Business Plan,the Operations and Maintenance Manual,all manufacturers'recommendations for maintenance,and all state and federal laws and regulations governing operation. ESSENTIAL DUTIES AND RESPONSIBILITIES include the following.Other duties may be assigned. Acts as point of contact for communications between the City of Tenakee Springs,the Denali Commission,Regulatory Agencies,and other interested parties. Interprets company policies and methods and develops specific operating procedures. Delegates functional activities to workers and establishes supervisory schedules and responsibilities to ensure quality and timeliness of independent decisions required to provide continuous service to public and safety of workers. Maintains operator training program and training records to ensure that trained operators are available to maintain sustained Facility operation. Assists City with annual report of operations to the Denali Commission and other required reporting. Implements the spill response and related regulatory plans and ensure that required spill response and related regulatory plans are updated and available on-site:Ensures the reliability of the spill response equipment,maintains the proper records,and conducts periodic spill drills. Oversees proactive program to recognize,identify and correct operational problems within the facility.Investigates,evaluates,and determines best application of new developments in bulk fuel storage industry,and devises other means of securing maximum efficiency of personnel and equipment. Directs maintenance of property records and upkeep of equipment and structures. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-15 ==ooJob Description Bulk Fuel Facility Manager Page 2 SUPERVISORY RESPONSIBILITIES: Directly supervises employees in the Bulk Fuel Facility.Carries out supervisory responsibilities in accordance with the organization's policies and applicable laws.Responsibilities include interviewing,hiring,and training employees;planning,assigning,and directing work;appraising performance;addressing complaints and resolving problems. QUALIFICATIONS:To perform this job successfully,an individual must be able to perform each essential duty satisfactorily.The requirements listed below are representative of the knowledge,skill, and/or ability required. Education and/or Experience:Associate's degree (A.A.)or equivalent from two-year college or technical school;or six months to one year related experience and/or training;or equivalent combination of education and experience. Language Skills:Ability to read and interpret documents such as safety rules,operating and maintenance instructions,and procedure manuals.Ability to write routine reports and correspondence.Ability to speak effectively before groups of customers or employees of organization. Reasoning Ability:Ability to solve practical problems and deal with a variety of concrete variables in situations where only limited standardization exists.Ability to interpret a variety of instructions furnished in written,oral,diagram,or schedule form. PHYSICAL DEMANDS:The job will be physically demanding;will be required to push,maneuver and sometimes lift heavy objects. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-16 CITY OF TENAKEE SPRINGS JOB DESCRIPTION ELECTRIC POWER GENERATION FACILITY MANAGER Exempt (Y/N):No Salary: Division:Electric Utility Location:Tenakee Springs Employee:Supervisor:City Mayor Approved By:City 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 City of Tenakee Springs,the Denali Commission,Regulatory Agencies,and other interested parties. Interprets company policies and methods and develops specific operating procedures. Delegates functional activities to workers and establishes supervisory schedules and responsibilities to ensure quality and timeliness of independent decisions required to provide continuous service to public and safety of workers. Maintains operator training program and training records to ensure that trained operators are available to maintain sustained Facility operation. Assists City 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 spul drills. Oversees proactive program to recognize,identify and correct operational problems within the facility.Investigates,evaluates,and determines best application of new developments in electric power generation industry,and devises other means of securing maximum efficiency of personnel and equipment. Directs maintenance of property records and upkeep of equipment and structures. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-17 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.)ot equivalent from two-yeat 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. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix A-18 APPENDIX B:O&M AND R&R CosT ESTIMATE -BULK FUEL STORAGE BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS CITY OF TENAKEE SPRINGS TANK FARM TENAKEE,ALASKA PREPARED BY:CLIENT Alaska Energy and Engineering,Inc.AEA P.O.Box 111405 813 W.Northern Lights Blvd. Anchorage,Alaska 99511-1405 Anchorage,Alaska 99503 September 28,2004 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-1 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM PAGE 1 TENAKEE SPRINGS,ALASKA September 28,2004 NOTES REGARDING THE PREPARATION OF THIS ESTIMATE These Operations/Maintenance and Replacement/Renewal costs are based on City of Tenakee Springs Bulk Fuel Storage conceptual design drawings dated,August 2004,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"focal 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 2004 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 two to six times over 40 years. Replacement costs are based one to three 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:|l ||||||| P |I !] Renewal/Replacement Costs:Total cost column represents one time event only.Years in parentheses indicate number of times to be renewed/replaced.Therefore,the Business Plan should apply the total dollars and multiply by the number of years item to be renewed or replaced. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-2 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM PAGE 2 TENAKEE SPRINGS,ALASKA SUMMARY One Time Cost September 28,2004 TOTAL COST (In 2004 Dollars) A.Operations &Maintenance Costs (Yearly)$12,428 x 40 Years = B.Renewal Costs (Over 40 Years) C.Replacement Costs (Over 40 Years) $497,139 See Business Plan Table See Business Plan Table TOTAL O&M AND RENEWAL/REPLACEMENT COSTS (2004 DOLLARS):See Business Plan NOTE:Items B and C costs are for multiple events over 40 years period.See Business Plan Tables for costs including inflation factor and number of occurrences/event. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-3 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM TENAKEE SPRINGS,ALASKA PAGE 3 September 28,2004 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 $$ NOTE:These projections are based on City of Tenakee Springs tank farm comprising (2)22,000 gallon tanks,(1)15,000 gallon tank and (1)6,000 gallon tank with fill and dispensing lines and pumping system (total shell capacity 65,000 gallons). All costs are projected on yearly basis using local labor and construction equipment rented from local resources. 1.GROUND MAINTENANCE Annual maintenance 12 Mos 6.000 72.000 24.00 1,728 1,728 SUBTOTAL 1.GROUND MAINTENANCE (YEARLY):1,728 1,728 2.TANKS,PIPELINES AND INSPECTIONS Fuel delivery (24000 gallons -6 times)6 EA 5.000 30.000 24.00 720 720 (144,00 gallons,annually) Perform minor repairs,replace faulty valves and gauges (1 time/year -4 tanks)1 LOT 1500.00 1,500 12.000 12.000 24.00 288 150.00 150 1,938 Annual inspection/pressure testing (1 outside person)1 LOT 200.00 200 12.000 12.000 75.00 900 150.00 150 1,250 SUBTOTAL 2.TANKS,PIPELINES,ETC.(YEARLY):1,700 1,908 300 3,908 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-4 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM TENAKEE SPRINGS,ALASKA PAGE 4 September 28,2004 __QUANTITY MATERIAL ______-___-CLABOR EQUIPMENT A.Operations &Maintenance ||Costs (Yearly)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units Meas Price $Unit Hrs Rate $Price $$ 3.OTHER COSTS Operator training 1 EA 8.000 8.000 80.00 640 640 Administration -clerical 12 Mos 8.000 96.000 23.88 2,292 2,292 Supervision 12 Mos 6.000 72.000 30.00 2,160 2,160 Annual audit (in Juneau)1 EA 12.000 42.000 100.00 1,200 1,200 Tankage insurance (based upon AML)500 SUBTOTAL 3.OTHER COSTS (YEARLY):6,292 6,792 SUMMARY (YEARLY) 1.GROUND MAINTENANCE $1,728 2.TANKS,PIPELINES AND INSPECTIONS 3,908 3.OTHER COSTS 6,792 TOTAL IN PRESENT DOLLARS/YEAR:$12,428 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-5 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM TENAKEE SPRINGS,ALASKA PAGE 5 September 28,2004 QUANTITY MATERIAL B.Renewal Costs (Over 40 Years)No.of Units Unit Meas LABOR EQUIPMENT Unit Cost Price $ MH Unit Total Hrs Rate Cost Unit Price Cost $ TOTAL 1A.FENCE Repair fence and gates (at 10 and 30 years -2 times)350 1B.PADS AND DIKE Erosion Control of pads (at 10 and 30 years -2 times)3,200 Repair steps and landings and bulk transfer enclosure (at 10,20, and 30 years -3 times)405 LF SF SF 3.75 1,313 0.30 960 7.50 3,038 0.250 0.010 0.200 87.500 32.000 81.000 17.85 17.85 17.85 1,562 571 1,446 1.60 0.28 2.00 560 896 810 3,434 2,427 5,293 SUBTOTAL 1A &B.FENCE AND PADS &DIKE:5,310 3,579 2,266 11,155 2A.TANKS Replace pumps (at 10,20,30 and 40 years -4 times -4 tanks)4 Replace miscellaneous valves and gauges (at 10,20,30 and 40 years - 4 times -4 tanks)1 2B.PIPELINES AND HEADERS Check barge fill line manifold and repair (at 10,20,and 30 years -3 times)1 City of Tenakee Springs EA 1400.00 5,600 3550.00 3,550 250.00 250 Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-6 8.000 18.000 12.000 32.000 18.000 12.000 17.85 17.85 75.00 571 321 900 400.00 150.00 250.00 1,600 150 250 5,181 4,021 1,400 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM TENAKEE SPRINGS,ALASKA PAGE 6 September 28,2004 _QUANTITY MATERIAL LABOR EQUIPMENT B.Renewal Costs _ (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units Meas Price |$Unit Hrs Rate $Price $$ 2B.PIPELINES AND HEADERS (Continued) Check and repair tank fill lines manifold (at 10,20,and 30 years -3 times)1 LOT 550.00 550 18.000 18.000 75.00 1,350 300.00 300 2,200 SUBTOTAL 2.TANKS AND PIPELINES:9,950 3,143 2,300 12,802 3.ELECTRICAL MAINTENANCE Check electrical systems serving pumps and fuel dispensers and repair as necessary (at 5,10,15,25, 30 and 35 years -6 times -4 tanks)1 LOT 500.00 500 18.000 18.000 75.00 1,350 150.00 150 2,000 SUBTOTAL 3.ELECTRICAL MAINTENANCE:500 1,350 150 2,000 SUMMARY (One time cost -multiply by number of times to be renewed) 1A &B.FENCE AND DIKES $11,155 2A &B.TANKS AND PIPELINES 12,802 3.ELECTRICAL MAINTENANCE 2,000 TOTAL IN PRESENT DOLLARS FOR 40 YEARS:$25,957 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-7 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM TENAKEE SPRINGS,ALASKA PAGE 7 September 28,2004 __QUANTITY MATERIAL LABOR EQUIPMENT_ C.Replacement Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units Meas Price $Unit Hrs Rate $Price $$ 1A.FENCE Replace 6'fencing (at 20 and 40 years -2 times)350 LF 12.50 4,375 0.500 175.000 17.85 3,124 4.40 1,540 9,039 Replace 3'man gates (at 20 and 40 years -2 times)3.EA 275.00 825 5.000 15.000 17.85 268 1,093 Replace 5'gate (at 20 and 40 years - 2 times)1 EA 550.00 550 8.000 8.000 17.85 143 693 1B.PAD,DIKE AND STEPS 3"gravel surfacing to pad,46 CY (at 20 and 40 years -2 times)SF 0.45 0.030 17.85 0.30 N/A Replace steps and grating (40 years -1 time)135 LF 90.00 12,150 1.000 135.000 17.85 2,410 2.50 338 14,897 Replace concrete foundations under tanks (at 40 years -1 time)15 CY 150.00 2,250 7.000 105.000 17.85 1,874 100.00 1,500 5,624 Renovate Tank Farm Pads for Refurbished Tanks (at 40 years-1 time)5,700 SF 1.00 5,700 0.300 1710.000 17.85 30,524 1.50 8,550 44,774 SUBTOTAL 1A &B.FENCE,PAD &DIKE:25,850 38,342 11,928 76,119 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-8 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM TENAKEE SPRINGS,ALASKA PAGE 8 September 28,2004 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-9 _QUANTITY _MATERIAL LABOR EQUIPMENT C.Replacement Costs (Over 40 Years)No.of Unit Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas Price $Unit Hrs Rate $Price $$ 2A.TANKS Replace fuel dispensers (at 15 and 30 years -2 times)3 EA -6000.00 18,000 24.000 72.000 75.00 5,400 2000.00 6,000 29,400 DRAIN,REFURBISH,PAINT AND RECONNECT TANKS: 22,000 &15,000 gallon (at 40 years - 1 time -3 tanks)1 LOT 5000.00 5,000 250.000 250.000 17.85 4,463 6600.00 6,600 16,063 6,000 gallon tank (at 40 years -1 time -1 each)1 EA 1500.00 1,500 100.000 100.000 17.85 1,785 700.00 700 3,985 2B.PIPELINES AND HEADERS Replace 3"barge lines and supports (at 40 years 1 time -3 pipes)2,100 LF 11.00 23,100 0.250 525.000 60.00 31,500 4.50 9,450 64,050 Replace 2”&1"piping (at 40 years -1 time -2 pipes)250 =LF 6.00 1,500 0.200 50.000 60.00 3,000 4.50 1,125 5,625 Replace 2"diameter above grade piping manifold at tanks (at 40 years -1 time -1 pipes)300 3=LF 10.00 3,000 0.250 75.000 17.85 1,339 2.50 750 5,089 Replace pipeline valves at barge and tank lines (at 20 and 40 years - 2 times)1 EA 2800.00 2,800 40.000 40.000 17.85 714 3,514 BULK FUEL OPERATION/MAINTENANCE AND REPLACEMENT/RENEWAL COSTS -CITY TANK FARM TENAKEE SPRINGS,ALASKA PAGE 9 September 28,2004 C.Replacement Costs (Over 40 Years)No.of |Unit Unit Units Meas Price QUANTITY MATERIAL Cost $ MH Unit Total Hrs EQUIPMENT Unit Price Cost TOTAL $$ 2C.INSPECTION (OUTSIDE CONTRACTOR) Major inspection of tanks by outside group including per diem and travel costs (at 10,20 and 30 years - 3 times -4 tanks)1 LOT 1200.00 1,200 80.000 80.000 75.00 6,000 1500.00 1,500 8,700 SUBTOTAL 2.TANKS,PIPELINES &INSPECTION:56,100 54,200 26,125 136,425 3.ELECTRICAL SYSTEMS Replace wiring,panels and circuit breakers for pumps,etc.at each tank (at 20 and 40 years -2 times - 4 tanks)1 LOT 28000.00 28,000 240.000 240.000 75.00 18,000 900.00 900 46,900 SUBTOTAL 3.ELECTRICAL SYSTEMS:28,000 18,000 900 46,900 SUMMARY (One time cost -multiply by times to be replaced) 1A&B.FENCE AND DIKES $76,119 2A &B.TANKS AND PIPELINES 136,425 3.ELECTRICAL SYSTEMS 46,900 TOTAL RENEWAL:$259,445 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix B-10 APPENDIX C:O&M AND R&R CosT ESTIMATE -ELECTRIC POWER UTILITY POWER PLANT OPERATION &MAINTENANCE AND REPLACEMENT &RENEWAL COSTS CITY OF TENAKEE SPRINGS POWER PLANT TENAKEE,ALASKA PREPARED BY:CLIENT Alaska Energy and Engineering,Inc.AEA P.O.Box 111405 813 W.Northern Lights Blvd. Anchorage,Alaska 99511-1405 Anchorage,Alaska 99503 November 26,2004 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-1 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 1 CITY OF TENAKEE SPRINGS DATE:NOVEMBER 26,2004 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 2004 dollars and should be projected to the initia!40 years of the facility using appropriate inflation factor over next 40 years. Renewal costs are based on repairing power plant building and equipment 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 bulk fuel tank farm. ESTIMATING ASSUMPTIONS Operation/Maintenance Costs:All costs are on yearly basis for one time event only. i¢]5 10 15 20 25 30 35 40 Years:|| ]|I ||i 1 T 1 Renewal/Replacement Costs:Total cost column represents one time event only.Years in parentheses indicate number of times to be renewed/replaced.Therefore,the Business Plan should apply the total dollars and multiply by the number of years item to be renewed or replaced. NOTE:The original draft has been revised to incorporate review comments made by the project manager. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-2 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 2 CITY OF TENAKEE SPRINGS DATE:NOVEMBER 26,2004 SUMMARY TOTAL COST One Time Cost (In 2004 Dollars) A.Operations &Maintenance Costs (First Year)10,373 x 40 Years =$414,938 B.Renewal Costs (Over 40 Years)See Business Pian Table C.Replacement Costs (Over 40 Years)See Business Plan Table TOTAL O&M AND RENEWAL/REPLACEMENT COSTS (2002 DOLLARS):See Business Plan NOTE:Items B and C costs are for multiple events over 40 years period.See Business Plan Tables for actual costs including inflation factor and number of occurrences/event. City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-3 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 3 CITY OF TENAKEE SPRINGS DATE:NOVEMBER 26,2004 QUANTITY |==MATERIAL | -__-LABOR ___|EQUIPMENTA.Operations &Maintenance | Costs (First Year)No.of |Unit Unit |Cost MH |Total |Cost Unit |Cost TOTAL Units |Meas Price $Unit |Hrs Rate |!$Price $$ 1.SITE MAINTENANCE Annual maintenance 12 Mos 50.00 600 6.000 72.000 16.42 1,182 1,782 Building pad 3,000 SF Included Above Boardwalk /Stairs 405 SF Included In Tank Farm Cost Est. Steel grate/ramp at Module 180 SF Included Above TOTAL 1.:600 1,182 1,782 2.FUEL TANK,PIPELINES AND TRANSFORMER Check 3-Phase step-up transformer 1 EA 12.000 12.000 16.42 197 197 Fuel delivery Included In Tank Farm Cost Est. Perform minor repairs,replace faulty valves and gauges (1 tank)1 LOT 500.00 500 16.000 16.000 16.42 263 50.00 50 813 TOTAL 2.:500 460 50 1,010 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-4 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 4 CITY OF TENAKEE SPRINGS DATE:NOVEMBER 26,2004 QUANTITY |=MATERIAL |==-----s LABOR ©__|EQUIPMENTA.Operations &Maintenance ||a | Costs (First Year)No.of |Unit Unit i Cost MH |Total |Cost Unit Cost TOTAL Units |Meas Price |$Unit .Hrs |Rate |$Price $$ 3.OTHER COSTS NOTE:Included with Business Plan Table B. Operator training 1 EA Administration -clerical 12 Mos Administration -supervision 12 Mos Annua!audit (in Juneau)1 LOT Power plant insurance (540 SF building and gensets,switchgear, 100 gallon daytank,etc.)1 EA TOTAL 3.: 4.BUILDING SYSTEMS Check the following and repair as necessary: Steel piles and cross bracing for Not Applicable loose connections,settlement,etc.EA 20.00 1.500 16.42 10.00 Floor structure 540 SF 0.05 27 0.020 10.800 16.42 177 204 Roof structure 684 SF 0.05 34 0.020 13.680 16.42 225 259 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-5 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS CITY OF TENAKEE SPRINGS PAGE 5 DATE:NOVEMBER 26,2004 QUANTITY |MATERIAL ___LABOR |EQUIPMENT A.Operations &Maintenance r ))|.Costs (First Year)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas Price $Unit |Hrs Rate $Price $$ 4.BUILDING SYSTEMS (Continued) Exterior walls 1,036 SF 0.05 52 0.013 13.468 16.42 221 273 6'0"x7'0"double door 1 EA 40.00 40 4.000 4.000 16.42 66 106 3'0"x7'0"single door 2 EA 15.00 30 1.000 2.000 16.42 33 63 3'6"x5'0"windows 1 EA 10.00 10 0.500 0500 16.42 8 18 Metal roofing 684 SF 0.10 68 0.020 13.680 16.42 225 293 Interior partitions 140 SF 0.05 7 0.020 2800 16.42 46 53 Clean floors 504 SF 0.10 50 0.030 15.120 16.42 248 299 Clean interior wall finishes 1,000 SF 0.01 10 0.007 7.000 16.42 115 125 Ditto ceiling finishes 504 SF 0.01 5 0.007 3.528 16.42 58 63 Specialties 1 LOT 2.000 2.000 16.42 33 33 TOTAL 4.:334 1,454 1,788 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-6 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 6 CITY OF TENAKEE SPRINGS DATE:NOVEMBER 26,2004 QUANTITY |MATERIAL |LABOR |EQUIPMENT A.Operations &Maintenance ||||Costs (First Year)No.of |Unit Unit |Cost MH Total |Cost Unit |Cost TOTAL Units |Meas Price $Unit |Hrs |Rate $Price $$ 5.MECHANICAL Check heating,ventilation and ducts, grilles,louvers and controls 540 SF 0.10 54 0.016 8640 16.42 142 196 Fire alarm and fire suppression system inspection and certification (outside contractor)1 LOT 500.00 500 10.000 10.000 75.00 750 1,250 TOTAL 5.:554 892 1,446 6,ELECTRICAL Check service and distribution 540 SF 0.013 7.020 16.42 115 115 Change lamps/replace lenses (10 fixtures x 33%)3.EA 24.00 72 0.700 2.100 16.42 34 106 Check devices,switches,etc.1 LOT 6.000 6.000 16.42 99 99 TOTAL 6.:72 248 320 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-7 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS CITY OF TENAKEE SPRINGS PAGE 7 DATE:NOVEMBER 26,2004 QUANTITY MATERIAL LABOR EQUIPMENT A.Operations &Maintenance 7 _es ee Costs (First Year)No.of |Unit}Unit Cost MH |Total |Cost |Unit |Cost TOTAL Units |Meas Price $Unit Hrs |Rate $Price $$ 7.POWER GENERATION SYSTEMS Check 88 KW genset radiators, mufflers and additives 2 EA 18.000 36.000 16.42 591 591 Ditto 64 KW 1 EA 10.000 10.000 16.42 164 164 Not Used EA 8.000 16.42 Ditto switchgear and controls 1 EA 12.000 12.000 16.42 197 197 Change oil,oil filter,fuel filter and air filters in generator engine 1 EA 2500.00 2,500 35.000 35.000 16.42 575 3,075 TOTAL 7.:2,500 1,527 4,027 SUMMARY (YEARLY) 1.SITE MAINTENANCE $1,782 2.FUEL TANK,PIPELINES AND TRANSFORMER 1,010 3.OTHER COSTS -- 4.BUILDING SYSTEMS 1,788 5.MECHANICAL 1,446 6.ELECTRICAL 320 7.POWER GENERATION SYSTEMS 4,027 TOTAL IN PRESENT DOLLARS/YEAR:$10,373 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-8 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS CITY OF TENAKEE SPRINGS PAGE 8 DATE:NOVEMBER 26,2004 QUANTITY|MATERIAL |LABOR _._.|_EQUIPMENT_B.Renewal Costs (Over 40 Years)No.of |Unit Unit |Cost MH Total Cost Unit Cost TOTALUnits|Meas Price $Unit Hrs Rate $Price |$$ 1.SITE Repair stairs (at 5,10,15,25,Included In Tank Farm Cost Est. 30 and 35 years -6 times)SF 0.30 0.060 17.85 0.15 Minor repairs to steel grate/ramp at module (ditto)180 SF 0.45 81 0.080 14.400 17.85 257 0.25 45 383 TOTAL 1.:81 257 45 383 2.FUEL &OIL PUMPS,PIPING AND ELECTRICAL Replace fuel pumps (at 10,20,30 and 40 years -4 times,1 tank)1 LOT 1200.00 1,200 8.000 8.000 17.85 143 100.00 100 1,443 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 system 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::1,800 536 230 2,566 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-9 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS CITY OF TENAKEE SPRINGS PAGE 9 DATE:NOVEMBER 26,2004 QUANTITY|MATERIAL |LABOR -_EQUIPMENT B.Renewal Costs Sf (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTAL Units |Meas Price $Unit Hrs Rate $Price $$ 3.BUILDING SYSTEMS Minor repairs to floor system (at 10, 20,30 and 40 years -4 times)540 SF 0.15 81 0.030 16.200 17.85 289 370 Ditto roof structure (ditto)684 SF 0.10 68 0.020 13.680 17.85 244 313 Repair exterior module (at 5,10, 15,25,30 and 35 years -6 times)1,036 SF 0.20 207 0.030 31.080 17.85 555 762 Ditto interior module (ditto)1,000 SF 0.10 100 0.020 20.000 17.85 357 457 Repair/caulk 10'0"x10'0"overhead door (ditto)EA 50.00 4.000 17.85 Not Used Repair/caulk 6'0"x7'0"exterior door (at 5,10,15,25,30 and 35 years - 6 times)1 EA 12.00 12 1.500 1.500 17.85 27 39 Ditto 3'6"x5'0"window (ditto)1 EA 8.00 8 1.000 1.000 17.85 18 26 Repair metal roofing and flashings (at 10,20 and 35 years -3 times)684 SF 0.25 171 0.040 27.360 17.85 488 659 Change door hardware (at 10 and 30 years -2 times)3.EA 265.00 795 1.500 4.500 17.85 80 875 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-10 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS CITY OF TENAKEE SPRINGS PAGE 10 DATE:NOVEMBER 26,2004 QUANTITY [MATERIAL [CLABORS ss EQUIPMENT_B.Renewal Costs | (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit |Cost TOTALUnits|Meas Price $Unit Hrs Rate $Price $$ 3.BUILDING SYSTEMS (Continued) Replace acoustical glazing and seals on 3'6"x5'0"interior window (at 20 years -1 time)18 SF 27.50 481 0.370 6.475 17.85 116 597 Paint steel plate floors (at 5,10,15, 25,30 and 35 years -6 times)504 SF 0.18 91 0.040 20.160 17.85 360 451 Patch and clean interior walls (at 5, 10,15,25,30 and 35 years -6 times)1,000 SF 0.22 220 0.025 25.000 17.85 446 666 Ditto ceilings (ditto)504.SF 0.15 76 0.025 12.600 17.85 225 301 Repair specialties (at 10,20,and 30 years -3 times)1 LOT 50.00 50 1.000 1.000 17.85 18 TOTAL 3:.:2,360 3,223 5,515 4.MECHANICAL Replace filters,check motor belts, bearings,etc.(at 5,10,15,25,30 and this is included in Tab A -O&M #7 35 years -0 times)LOT 700.00 16.000 22.50 Repair ducts,grilles and controls (at 10 and 30 years -2 times)540 SF 1.00 540 0.050 27.000 22.50 608 1,148 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-11 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 11 CITY OF TENAKEE SPRINGS DATE:NOVEMBER 26,2004 QUANTITY _MATERIAL |__LABOR ss EQUIPMENT B.Renewal Costs | (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost |TOTALUnits|Meas Price $Unit Hrs Rate $Price |$$ 4.MECHANICAL (Continued) Repair fire suppression system and recharge system (at 10 and Labor &T&PD included in annual inspection 30 years -2 times)1 LOT 3000.00 3,000 75.00 3,000 TOTAL 4.:3,540 608 4,148 5.ELECTRICAL Replace panel circuit breakers,fuses, etc.(at 20 years -1 times)1 LOT 1200.00 1,200 24.000 24.000 22.50 540 1,740 Replace fixture ballasts and lenses (at 5,10,15,25,30 and 35 years - 6 times -10 fixtures x 35%)3.EA 60.00 180 1.500 4.500 22.50 101 281 Repair devices (ditto)20 EA 2.50 50 0.750 15.000 22.50 338 388 TOTAL 5.:1,430 979 2,409 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-12 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS CITY OF TENAKEE SPRINGS PAGE 12 DATE:NOVEMBER 26,2004 QUANTITY |MATERIAL|LABOR}EQUIPMENT|B.Renewal Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTALUnits|Meas Price $Unit Hrs Rate $Price $$ 6.POWER GENERATION SYSTEMS Major Rebuild 88 KW genset (at 10 and 30 years -2 times)1 EA 3500.00 3,500 80.000 80.000 75.00 6,000 1500.00 1,500 11,000 Major Rebuild 88 KW genset 1 EA 3500.00 3,500 80.000 80.000 75.00 6,000 1500.00 1,500 11,000 (at 10 and 30 years -2 times) Major Rebuild 64 KW genset 1 EA 2500.00 2,500 80.000 80.000 75.00 6,000 1000.00 500 9,000 (at 10 and 30 years -2 times) Major Rebuild XX KW genset EA 2500.00 80.000 75.00 1000.00 not used (at 10 and 30 years -2 times) Refurbish switchgear and controls, instrumentation and recalibrate (at 20 years -1 times)1 LOT 5500.00 5,500 100.000 100.000 75.00 7,500 500.00 500 13,500 Top end overhaul (at 5,15,25,35 -4 times) 3 EA 2150.00 6,450 40.000 120.000 75.00 9,000 1000.00 3,000 18,450 Change battery,alternator,etc. (at 5,15,25.35 -4 times){LOT 1000.00 1,000 12.000 12.000 16.42 197 1,197 TOTAL 6.:22,450 34,697 7,000 64,147 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-13 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS CITY OF TENAKEE SPRINGS PAGE 13 DATE:NOVEMBER 26,2004 B.Renewal Costs (Over 40 Years) _MATERIAL TOTAL SUMMARY 1.SITE 2.FUEL &OIL PUMPS,PIPING AND ELECTRICAL 3.BUILDING SYSTEMS 4.MECHANICAL 5.ELECTRICAL 6.POWER GENERATION SYSTEMS $383 2,566 5,515 4,148 2,409 64,147 TOTAL IN PRESENT DOLLARS OVER 40 YEARS (1 TIME EVENT):$79,167 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-14 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS CITY OF TENAKEE SPRINGS PAGE 14 DATE:NOVEMBER 26,2004 QUANTITY |MATERIAL |LABOR _..__|__EQUIPMENT_C.Replacement Costs ||(Over 40 Years)No.of |Unit Unit Cost MH |Total |Cost Unit |Cost TOTALUnitsMeasPrice$Unit Hrs Rate $Price $$ 1.SITE Replace stairs (at 20 and 40 Included In Tank Farm Cost Est. years -2 times)SF 5.50 0.250 17.85 1.00 Replace steel grate/ramp (at 40 years -1 time)180 SF 16.00 2,880 0.400 72.000 17.85 1,285 1.00 180 4,345 TOTAL 1.:2,880 1,285 180 4,345 2.FUEL TANK AND ELECTRICAL Replace day tank &used oil blender (at 40 years -1 time)1 EA 18000.00 18,000 40.000 40.000 75.00 3,000 200.00 200 21,200 Replace electrical system for fuel system (at 40 years -1 times)1 LOT 15000.00 15,000 60.000 60.000 75.00 4,500 250.00 250 19,750 TOTAL 2::33,000 7,500 450 40,950 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-15 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS CITY OF TENAKEE SPRINGS PAGE 15 DATE:NOVEMBER 26,2004 QUANTITY |MATERIAL,of}LABOR _C EQUIPMENT _ C.Replacement Costs (Over 40 Years)No.of |Unit Unit Cost MH Total Cost Unit Cost TOTALUnitsMeasPrice$Unit |Hrs Rate $Price $$ 3.BUILDING SYSTEMS Shim piles and replace bracings Not Applicable (at 20 and 40 years -2 times)EA 255.00 6.000 17.85 215.00 Upgrade floor system (at 20 and 40 years -2 times)540 SF 1.00 540 0.100 54.000 17.85 964 1,504 Ditto roof structure (ditto)684 SF 0.75 513 0.080 54.720 17.85 977 1,490 Refurbish exterior module walls (at 40 years -1 time)1,000 SF 4.25 4,250 0.170 170.000 17.85 3,035 7,285 Refurbish interior module walls (at 40 years -1 time)1,000 SF 1.25 1,250 0.070 70.000 17.85 1,250 2,500 Replace 10'0"x10'0"overhead door Not Applicable (at 20 and 40 years -2 times)EA 1850.00 8.000 17.85 Ditto 6'0"x7'0"double door (ditto)1 EA 785.00 785 3.000 3.000 17.85 54 839 Ditto 3'0"x7'0"single door (ditto)1 EA 380.00 380 3.000 3.000 17.85 54 434 Replace metal roofing (at 20 and 40 years -2 times)684 SF 5.70 3,899 0.200 136.800 17.85 2,442 6,341 Replace 3'0"x7'0"interior doors (at 20 and 40 years -2 times)1 EA 655.00 655 2.500 2.500 17.85 45 700 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-16 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS CITY OF TENAKEE SPRINGS PAGE 16 DATE:NOVEMBER 26,2004 QUANTITY |)MATERIAL |LABOR EQUIPMENTC.Replacement Costs |(Over 40 Years)No.of |Unit Unit Cost MH Total |Cost Unit |Cost TOTALUnitsMeasPrice$Unit Hrs Rate |$Price $$ 3.BUILDING SYSTEMS (Continued) Replace 3'6"x5'0"window unit (at 40 years -1 time)18 SF 35.00 630 0.400 7.200 17.85 129 759 Paint trim and doors (at 20 and 40 years -2 times)3.EA 20.00 60 1.250 3.750 17.85 67 127 Replace specialties (at 40 years - 1 time)1 LOT 250.00 250 3.000 3.000 17.85 54 304 TOTAL 3.:13,212 9,067 22,279 4.MECHANICAL Replace major mechanical equipment (at 40 years -1 time)1 LOT 35000.00 35,000 160.000 160.000 75.00 12,000 1200.00 1,200 48,200 Refurbish grilles,louvers,ducts and controls (at 20 and 40 years -2 times)540 SF 4.50 2,430 0.040 21.600 75.00 1,620 4,050 Replace fire suppression system (at 40 years -1 time)1 LOT 18000.00 18,000 80.000 80.000 75.00 6,000 1000.00 1,000 25,000 TOTAL 4.:55,430 19,620 2,200 77,250 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-17 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS CITY OF TENAKEE SPRINGS PAGE 17 DATE:NOVEMBER 26,2004 _QUANTITY MATERIAL fo LABOR |EQUIPMENT C.Replacement Costs || (Over 40 Years)No.of |Unit Unit Cost MH Total |Cost Unit |Cost TOTALUnitsMeasPrice$Unit Hrs |Rate $Price $$ 5.ELECTRICAL Replace panels,disconnect switches, motor controls,etc.(at 40 years -1 time) 1 LOT 16000.00 16,000 60.000 60.000 75.00 4,500 3000.00 3,000 23,500 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)7 EA 152.50 1,068 1.500 10.500 75.00 788 1,855 Replace devices (ditto -2 times)20 EA 18.00 360 0.500 10.000 75.00 750 1,110 Replace fire alarm system (at 20 and 40 years -2 times)540 SF 4.70 2,538 0.040 21.600 75.00 1,620 4,158 Replace transformers (at 40 years - 1 time)1 EA 7500.00 7,500 60.000 60.000 75.00 4,500 12,000 TOTAL 5.:29,666 15,758 3,000 48,423 City of Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Business Operating Plan Appendix C-18 POWER PLANT OPERATIONS AND MAINTENANCE AND REPLACEMENT AND RENEWAL COSTS PAGE 18 CITY OF TENAKEE SPRINGS DATE:NOVEMBER 26,2004 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 $ 6.POWER GENERATION SYSTEM Repower 88 KW generator (at 20 and 40 years -2 times)1 EA 10500.00 10,500 60.000 60.000 75.00 4,500 1750.00 1,750 16,750 Repower 88 KW generator (at 20 and 40 years -2 times)1 EA 10500.00 10,500 60.000 60.000 75.00 4,500 1750.00 1,750 16,750 Repower 64 KW generator (at 20 and 1 EA 7500.00 7,500 60.000 60.000 75.00 4,500 1500.00 1,750 13,750 40 years -2 times) Repower XX KW generator (at 20 and EA 39000.00 80.000 75.00 1000.00 not used 40 years -2 times) Replace switchgear and controls complete (at 40 years -1 time)1 LOT 120000.00 120,000 100.000 100.000 75.00 7,500 700.00 700 128,200 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.:153,500 28,500 5,950 187,950 SUMMARY 1.SITE $4,345 2.FUEL TANK AND ELECTRICAL 40,950 3.BUILDING SYSTEMS 22,279 4.MECHANICAL 77,250 5.ELECTRICAL 48,423 6.POWER GENERATION SYSTEM 187,950 TOTAL RENEWAL:$381,197 City of Tenakee Springs 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 3.Grant Agreement 4.R&R Fund Account --Sample Documents SECONDARY OPERATOR AGREEMENT FOR THE TENAKEE SPRINGS 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(s)by the Authority to the City of Tenakee Springs ("City”)for the upgrading of bulk fuel storage and electric power generation facilities at Tenakee Springs,Alaska (the "Facility”)owned by the City;and WHEREAS,the Commission has adopted Sustainability Criteria that apply to the use of Commission funds for the Facility,in order to ensure the long-term economic sustainability of the Facility;and WHEREAS,the Commission and the City have agreed to a Business Operating Plan consistent with the Sustainability Criteria for the operation of the Facility,as contained in the Tenakee Springs Bulk Fuel Facility and Electric Utility Upgrade Project Business Operating Plan dated August 1,2005 ("Plan”);and WHEREAS,the Plan specifies that the City shall act as the Primary Operator of the Facility,as specified therein,and shall operate the Facility in compliance with the terms and conditions of the Plan;and WHEREAS,the Commission and the City agree that,if the Primary Operator is not operating the Facility in compliance with the terms and conditions of the Plan,the Commission may designate a Secondary Operator to assist the Primary Operator or to take over such functions of the Facility operations that the Commission determines are necessary for such time as it determines is necessary, pursuant to the terms and conditions of this Agreement; Now THEREFORE,the Commission and the City agree as follows,in consideration for the mutual promises contained herein and the benefits to the parties resulting from the completion and operation of the Facility: 1.The Primary Operator shall operate the components of the Facility specified in the Plan in accordance with the terms and conditions of the Plan and the requirements contained herein. 2.In addition to,and consistent with its duties specified in the Plan,the Primary Operator shall,in a timely manner: 2.1 properly establish and maintain accurate books and records; 2.2 account for,bill for,and use its best efforts to collect all fuel and/or kilowatt sales and all other receivables; 2.3.deposit moneys into the appropriate accounts,including deposits into the Operations & Maintenance Fund accounts as well as deposits into the Renewal &Replacement invested escrow accounts (as such accounts are defined in the Plan); Secondary Operator Agreement for the Tenakee Springs Bulk Fuel Storage and Electric Power Utility Facility Page 2 of 4 2.4 maintain adequate cash reserves for fuel purchases so that emergency fuel shipments are not necessary; obtain annual audits showing the absence of any management or financial irregularities; perform necessary maintenance of and repairs to the Facility; provide or obtain necessary training for Facility operations;and meet its financial obligations. If the Commission determines,in the exercise of its sole discretion,that the Primary Operator has failed or is unable to operate the Facility in accordance with the Plan and this Agreement and that this failure or inability significantly threatens the long-term economic sustainability of the Facility,the Commission may contract with and utilize a Secondary Operator. 2.5 2.6 2.7 2.8 3. 4,The Commission has the sole right to transfer the full custody and control of the assets and business operations of the Facility,including but not limited to,the cash,receivables,and inventory of the Facility,to the Secondary Operator and assign the Secondary Operator responsibility for partial or total management of the Facility. 4.1 4.2 4.3 4.4 The Commission may appoint the Secondary Operator to assist the Primary Operator in some or all aspects of the Facility operations or to take over some or all aspects of Facility operation from the Primary Operator,in such a manner and for such period of time as the Commission determines to be necessary and appropriate for operation of the Facility in compliance with the Plan and the long-term economic sustainability of the Facility.(For example,the Secondary Operator may be asked to assist the Primary Operator for a short period of days or weeks in bringing certain aspects of the operations back into compliance. Alternatively,the Secondary Operator may be asked to replace the Primary Operator as Facility operator.The foregoing are intended only as illustrative examples,without limiting the effect of this Agreement.) If the Commission utilizes a Secondary Operator,the Primary Operator will transfer the complete control and authority over the following assets to the Secondary Operator:the books and records relating to the Facility operations,accounts receivable,and all account funds.The City agrees to cooperate with the Commission and the Secondary Operator in the release of the stated assets and the transfer of operations to the Secondary Operator. The Secondary Operator will be entitled to reasonable compensation for its services.This compensation will,at a minimum,reimburse the Secondary Operator for any and all expenses associated with their duties as Facility operator,plus a reasonable profit.The profit will not exceed what is considered normal and customary for like service,as determined by the Commission in the exercise of its sole discretion. The parties anticipate that,if a Secondary Operator is appointed,the Commission will appoint (to be determined),which will joint venture with an establish operator.However,the patties 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 Secondaty Operator Agreement for the Tenakee Springs Bulk Fuel Storage and Electric Power Utility Facility Page 3 of 4 10. 11. (to be determined)from serving as Secondary Operator.Therefore,the City acknowledges and agrees that the Commission may appoint any qualified entity or entities to serve as Secondary Operator.The Commission will consult with the City on the replacement to the Secondary Operator;however,the Commission maintains final approval authority for the replacement Secondary Operator. 4.5 The Commission will act reasonably and responsibly in its enforcement of the Plan and this Agreement and its designation of a Secondary Operator,consulting with the City and taking into account the needs and interests of the community of Tenakee Springs as well as the general public interest.If the Commission employs the Secondary Operator,the Commission shall oversee the operations of the Secondary Operator to make sure that it is conducting its operations reasonably,in a cost-efficient manner,and consistent with the needs and interests of the community as well as the general public interest. If a dispute or controversy arises between the parties to this Agreement or among the parties to an agreement with the Secondary Operator,application or enforcement of this Agreement shall be decided through mediation.If mediation is unsuccessful,any party to this Agreement may bring an action to resolve the dispute in the Superior Court of the State of Alaska. This Agreement may be executed simultaneously in two (2)or more counterparts,each of which will be considered an original,but all of which together will constitute one and the same instrument.The exchange of a fully executed Agreement (in counterparts or otherwise)by fax shall be sufficient to bind the parties to the terms and conditions of this Agreement. No delay on the part of a party in the exercise of any right,power,or remedy shall operate as a waiver thereof,nor shall any single or partial exercise of any right,power,or remedy preclude other ot further exercise thereof or the exercise of any other right,power,or remedy.No amendment, modification,or waiver of,or consent with respect to,any provision of this Agreement shall be effective unless it shall be in writing and signed and delivered by the parties hereto. All notices,demands or requests required or allowed under this Agreement or applicable law from one patty to another shall be in writing and delivered in person or sent by mail,certified or registered,postage prepaid,to the parties hereto at the addresses set forth in this Agreement or to such other persons and addresses as either patty may designate.Notice shall be deemed to have been given three (3)days after the day of mailing. This Agreement is a contract made under and governed by the laws of the State of Alaska.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. 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. Secondary Operator Agreement for the Tenakee Springs Bulk Fuel Storage and Electric Power Utility Facility Page 4 of 4 This AGREEMENT has been reviewed,agreed to,and executed by the following parties: for the CITY OF TENAKEE SPRINGS by 9 ff?4 (Signature) Vhwn £.Lewcoute Rog &£2 Los(Date) Lee WY,BLER.a(Name Printed) for the DENALI COMMISSION (Title) by Lid Vos (Sigfature)(Date) Krag Vo bmsenn Ciel of StafF (Name Prtinted)(Title) for (TO BE DETERMINED) by (Signature)(Date) (Name Printed)(Title) Alaska Energy and Engineering,Inc.Mailing Address -P.O.Box 111405Anchorage,AK 99511-1405 (907)349-0100 349-8001 fax June 22,2004 First American Title of Alaska QPages Faxed)907-789-7395Attn:Mary2227N.Jordan Avenue Juneau,AK 98801 Subject:Tenakee Springs Certificate to Plat Information Dear Mary: Please find enclosed Sheet 1 of 1,Tenakee Springs Power Plant and Bulk FuelUpgradePropertyPlan.Please prepare a Certificate to Plat including the followingproperties: US Survey 1418 Tract 1 E Street,Tenakee Avenue and Chichagof Avenue Lots 6 &7,Block 11 Lots 1,2,and 3,Block 12 ATS 524 MSR #4,Survey 1409OMA=Please indicate the estimated lead-time to deliver the Certificate to Plat. You are authorized to bill up to $500 for this effort.If you anticipate exceedingthisamount,please call me prior to proceeding. if you have any questions,please call me at (907)349-0100,or fax your comments to(907)349-8001. nd ine Inc. Altachmants -as noted Sincerely, te"en J. President City of Tenakee Springs Site Control Documents Page 1 of 5 WS.R Med SUR.No 1499 ee ee ; CHICHAGDE AVE.i :|LOT 7 LOT 6 LOI 5 |Lona | -Td i11)||| A --poyeeaoeaeeebeSaeennannnSi bee MSE Nod = SUR No $409 oT 1 |Lor 2 tor 3 |w H "|Ne ae L_||TENAKEE AVE. SoS]SS see es AfaTire||poweR |'MD |_.S |7 |\|=x |}| ae oe eo jj wth ob : seen nee and |{i 1 oe mevecy.TENAKEE SPRINGS POWER PLANT ANDO BULK FUCL UPGRADE Seta af Aegea PROPERTY PLAN Ehepeert:af Crwvendy vad acongmue Dmaaapmantieé omyMIEpearise pee tr,5.15 Rear i'seg'[thE Ne eT ww lied 'eovenwem Mewte SOE _--ph Coat Wy SIS tare,§-24-p4 |PROP PLAN 3 H i ' City of Tenakee Springs Site Control Documents Page 2 of 5 FIRST AMERICAN TITLE of Alaska 2227 Nerth donjan Averuc,junues,AK 99401 PHONE.(JOT)7433252 Fax (207Y78O-73 95 CERTIFICATE TO PLAT ORDER NO:2040180 TO: Alaska Energy and Engineering,Inc. P.O.Box 111405 Anchorage,AK 99511 Atty Steven Stassel Fee £300.00 This is a Certificate as of July 29,2004,at B.COAM am.for a plat of the following described property: Lots 6 and 7,Block 11 and Lots 1,2 and 3,Block 12,U.S.Survey 1418,Townsite of Tenakee, Records of the Sitka Recording Distact,First Judicial District,State of Alaska. AND Alaska Fidclands Survey 524,Records of the Sitka Recording District,First Judicial District,State of Alaska. AND Tract 3,U.S.Survey 1418,Records of tne Sitka Recording District,First Judicial District,State of Alaska, EXCEPTING THEREFROM those portions conveyed to Onen Barber ard Barbara Barber in Quit Clann deed recorded June 7,1984 in Bank 65,Page 219 The company cerifies that record title is vested in: CITY OF TENAKEE SPRINGS,as to Lots &and 7,Blork 11 and that certain portion of Tract 3,US. Survey 1418 and a portion of ATS 524 and LACANO INVESTMENTS,LLC.as to Lots 1,2 and 3,Block 12 and a portion of ATS 524 flee from all liens,encumbrances and objections EXCEPT AS FOLLOWS: SURJECT TO: 1.Reservations and exceptions as contained in the U.S.Patent 2.Reservations and exceptions as contained in the State cf Alaska Patent. City of Tenakee Springs Site Control Documents Page 3 of 5 10. V1. 12. FIRST AMERICAN TITLE of Alaska 2227 Norh Jordan Avenue,Juneau,AX 99901 Phone:(997)789-5252 Fax (907)789-7395 Subject property does not he within a organized taxing district. Any adverse claim to any portion of said land which lies below the mean high water line 'of Tenakee Inlet. Any prohibition or limitation on the use,occupancy or improvements of the land resulting fromtherightofthepublicorriparianownerstouseanywaterswhichmaycoverthelandortouse. any portion of the land which is now or may formerly have been covered by water. Any adverse claim based upon the assertion that some portion of said land is tide or submerged lands,or has becn created by artificial means or has accreted to such portion so created. Any preference nights which may exist under the Alaska Land Act,terms,provisions and reservations under the Submerged Lands Act (43 USCA 1301,67 Stat.29)and the enablingact(Public Law 85-508,72 Stat.339) Any prohibition or limitation on the use,occupancy or improvements of the land resulting fromtherightofthepublicorriparianownerstouseanywaterswhichmaycoverthelandortouse any portion of the land which is now or may formerly have been covered by water. Rights of the public and/or any governmental agencies in and to any portion of the above described real property lying within any roads,streets or highways. Easemant tor right of way and appurtenances thercto granted to STATE OF ALASKA, DEPARTMENT OF TRANSPORTATION,tecorded July 16,19284,Book 65 Page 953. Deed of Trust,incliding the terms and provisions thereof,to secure an indebtedness: Amount :$1,030,000.00 Trustor :LACANO INVESIMENTS Lic Trustee :SOUTHEASTERNTITLE AGENCY Beneficiary ;ALASKA PACIFIC BANK Dated :February 27,2004 Recorded .March 1,2004 Serial Number :2004-000368-0 (AFFECTS THIS AND OTHER PROPERTY) Easement for telephone utilities and appurtenances thereto granted te Telephone Utilities of the Northland,tnc./dba/PTI]Communications,recorded September 27,1991,Book 350 Page 115 (AS TO TRACT 3) Page 2 City of Tenakee Springs Site Control Documents Page 4 of 5 FIRST AMERICAN TITLE of Alaska "2227 North Jordan Avenue,Juneau,AK $9801 Phone:(907)789-5252 Fax (997)789-7395 This report is restricted to the use of the addressee,and is not to be used for closing any transaction affecting title to said property.Liability of the Agency is limited to the amount of fee paid herein. FIRST AMERICAN TITLE of ALASKA Colleen Gordon,Title Officer AD/MB 'yped:July 22,2004 Page 3 City of Tenakee Springs Site Control Documents Page 5 of5 State of Alaska Alaska Energy Authority Grant Agreement a = qm sSOENERGY AUTHORITY Grant Agreement Number Amount of Funds 2195237 BF $835,000 RP $635,000 BE 340030.Encumbrance Number/AR Project Title RP 350268 PBO00188 Tenakee Springs Bulk Fuel &Powerhouse Upgrades Grantee Authority Contact Person Name Name City of Tenakee Springs David Lockard Street/PO Box Title P.O.Box 52 Project Manager City/State/Zip Stree/PO Box Tenakee Springs,Alaska 99841-0052 813 W.Northern Lights Blvd Contact Person City/State/Zip Art Bloom,Mayor Anchorage,AK 99503 Phone Fax Phone Fax 907-736-2207 907-736-2207 907-269-4541 907-269-3044 AGREEMENT The Alaska Energy Authority (hereinafter 'Authority')and City of Tenakee Springs (hereinafter 'Grantee') agree as set forth herein. Section |.Upon receiving notification from the funding source(s)identified in Appendix 2 of the availability of funds,the Authority shall grant to the Grantee funds for the construction of the Project and performance of the Project work under the terms outlined in the attached scope of work.The Authority shall grant funds to pay for expenses incurred by the Grantee that are authorized under this Agreement,in an amount not to exceed $1,470,000,unless the grant amount is amended as provided herein. Section Il.The Grantee shall apply the grant funds to the construction of the Project and perform all of the work and other obligations required by this Agreement. Section Ill.Performance under this agreement begins upon signature by the Authority's Executive Director and shall be completed no later than December 31,2006. Section IV.The agreement consists of this page and the following: ATTACHMENTS APPENDICES Article A:Definitions Appendix 1:Notice of Project Compietion Article B:Special Provisions Appendix 2:Funding Sources Article C:General Provisions Appendix 3:In-Kind Contributions Appendix 4:Employer Identification Number App. AMENDMENTS:Any fully executed amendments Appendix 5:EIN Power of Attorney to this Agreement Appendix 6:Tax Information Authorization J fh Grantee Authgrity il, |e,Gaheb ApitedName and TitleRenaldW.Miller,Executive DirectoreresameangTitle4.jae LLL BAA ADT ACZMENee4-2-0585 Date a [|C - Tenakee Springs Bulk Fuel &Powerhouse Upgrades Grant Agreement Number 2195237 Page 2 of 19 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 City of Tenakee Springs. e)"Grantor”means the Alaska Energy Authority. f)"Project”means the Tenakee Springs Bulk Fuel &Powerhouse Upgrade. 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.11/04 C:\DOCUME-1\TJOHNSON\LOCALS 1\TEMP\TJOHNSON_MD001328.D0C Tenakee Springs Bulk Fuel &Powerhouse Upgrades Grant Agreement Number 2195237 Page 3 of 19 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 powerhouse in Tenakee Springs, Alaska,as described more fully in the Conceptual Design dated August 23,2004,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 re-designate 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. AEA:Rev.11/04 CADOCUME=$1\TJOHNSON\LOCALS 1\TEMP\TJOHNSON_MD001328.DOC Tenakee Springs Bulk Fuei &Powerhouse Upgrades Grant Agreement Number 2195237 Page 4 of 19 If the Authority retains the services of the Trustee,the Authority will be the liaison between the Grantee and the Trustee.The Authority will follow the procurement regulations specified by the funding sources. c)The Authority,as agent for the Grantee,will account for and disburse selected Grant funds for any Project costs not covered under (b)of this section in accordance with the funding sources referenced in Appendix 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 expensesassociatedwiththedesignandconstructionoftheProjectareeligibleforpaymentor reimbursement from grant funds: 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,the Grantee and used in the construction of the Project. iii.The Grantee's costs of reproducing plans,specifications,maps,reports,and other documents. iv.The cost of long distance communication and other utilities needed for construction. v.Purchase or rental of small equipment or tools needed in the construction of the Project. AEA:Rev.11/04 C:\DOCUME 1\TJOHNSON\LOCALS 1\TEMP\TJOHNSON_MD001328.D0C Tenakee Springs Bulk Fuel &Powerhouse Upgrades Grant Agreement Number 2195237 Page 5 of 19 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. b)Costs not 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 Project Manager will be the contact for the Grantee during all phases of the Project.The Project Engineer will be the on-site contact during the construction phase of the Project. 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' AEA:Rev.11/04 C:A\DOCUME 1\TJOHNSON\LOCALS 1\TEMP\TJOHNSON_MD001328.D0C Tenakee Springs Bulk Fuel &Powerhouse Upgrades Grant Agreement Number 2195237 Page 6 of 19 d) Wetlands Permit,State Fire Marshal approval,rights-of-way for the pipelines,and site control,including any necessary Coastal Zone Management coordination through the Office of Project Management and Permitting (DNR).The Authority will assist the Grantee in obtaining these permits and approvals. The Grantee will assist the Authority in obtaining qualified local labor for the Project and will provide necessary local administration assistance,including recommending qualified local personnel;assisting in obtaining necessary personnel information; assisting in obtaining housing for nonresident workers;facilitating communications between the Authority,the community and local employees;and serving as a liaison between the Authority and the community. The Grantee will provide,as an in-kind contribution,local equipment (excluding operator,fuel and maintenance)and tools as available to support the Project,and the contribution specified in Appendix 3.The Grantee will not be paid for its contributions of the use of equipment,tools,supplies,materials,or its contributions of services except as agreed to in writing by the Authority.The Authority requires in- kind contributions to demonstrate that the grantee and the community are committed to and invested in the proposed project.Typical in-kind contributions include,but are not limited to:land for the tank farm,the use of heavy equipment as available, lodging,etc.The Authority encourages the grantee and the community to support this project with in-kind contributions to the greatest extent possible. The Grantee is responsible for 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 30 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. AEA:Rev.11/04 CADOCUME 1\TJOHNSON\LOCALS 1\TEMP\TJOHNSON_MD001328.D0C Tenakee Springs Bulk Fuel &Powerhouse Upgrades Grant Agreement Number 2195237 Page 7 of 19 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 will perform those activities and functions necessary for the operation and maintenance of the Project for the public benefit,except for those that are expressly the responsibility of another party under this Grant Agreement or any appendices hereto.These responsibilities may not be altered or transferred without the prior written approval of the Denali Commission. ARTICLE C.GENERAL PROVISIONS Section 1.Inspection and Retention of Records. The Grantee shall allow the Authority or its designees to examine all Project related records at any reasonable time for the purpose of copying,audit or inspection.The Grantee shall ensure that the Authority,its contractors and consultants,and any Secondary Operators have reasonable access to Project facilities during construction of the Project,and reasonable access for performance analysis and testing over the life of Project facilities for no cost.The Grantee shall retain all Project related records for four years following the completion date of the Project or until final resolution of any audit, negotiation,claim or other action related to the Project which is started prior to the end of the four year period,whichever is later. Section 2.State and Authority held harmless. As a condition of this Grant,the Grantee agrees to defend,indemnify,and hold harmless the Authority and the State of Alaska,and their agents,servants,contractors, and employees,from and against any and all claims,demands,causes of action, actions,and liabilities arising out of,or in any way connected with this grant or the project for which the grant is made,howsoever caused,except to the extent that such claims,demands,causes of action,actions or liabilities are the proximate result of the sole negligence or willful misconduct of the Authority or the State of Alaska. Section 3.Disputes. a)The parties agree that any dispute arising out of this agreement which cannot be resolved by mutual agreement shall be addressed as set forth in this Section.It is further agreed and understood that compliance with this Section shall be a condition precedent to bringing or filing an action or court proceeding for determination of any AEA:Rev.11/04 C:\DOCUME 1\TJOHNSOMLOCALS 1\TEMPATJOHNSON_MD001328.DOC Tenakee Springs Bulk Fuel &Powerhouse Upgrades Grant Agreement Number 2195237 Page 8 of 19 f) 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. 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. The time for issuing the Procurement Manager's decision may be extended for good cause by the Executive Director.The Procurement Manager shall notify the Grantee in writing that the time for the issuance of a decision has been extended and of the date by which a decision shall be issued.The Procurement Manager shall furnish a copy of the decision to the Grantee by certified mail or other method that provides 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. AEA:Rev.11/04 C:\DOCUME 1\TJOHNSOMLOCALS 1\TEMP\TJOHNSON_MD001328.D0C Tenakee Springs Bulk Fuel &Powerhouse Upgrades Grant Agreement Number 2195237 Page 9 of 19 k) 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. lf the Executive Director is not acting as the hearing officer,the hearing officer shall recommend a decision to the Executive Director based on the evidence presented. The recommendation must include findings of fact and conclusions of law.The Executive Director may affirm,modify,or reject the hearing officer's recommendations in whole or in part,may remand the matter to the hearing officer with instructions,or take other appropriate action. The Executive Director's decision shall be sent within 20 days after the hearing to all parties by personal service or certified mail.The decision of the Executive Director is final and conclusive unless appealed to superior court,Third Judicial District at Anchorage within 30 days of receipt of the decision.The laws of the state of Alaska govern this agreement. Section 4.Termination. a) b) d) The Grantee shall have no rights to compensation or damages for termination except as provided in this Section. In addition to all other rights available under law,the Authority may terminate this Agreement or stop work on the Project for the convenience of the Authority or for cause upon ten (10)days written notice. "Cause"for termination shall exist when the Grantee has failed to perform under this Agreement,has provided incorrect or misleading information or has failed to provide information which would have influenced the Authority's actions.In order for termination to be for cause,the Grantee's failure to perform or the Grantee's provision of incorrect,misleading,or omitted information must be material. If this Agreement is terminated for cause,the Grantee shall be entitled to no compensation.The Grantee shall reimburse the Authority for all grant funds expended under this Agreement by the Grantee or on the Grantee's behalf including interest accrued from the date of disbursement.The Grantee shall also reimburse the Authority for any costs incurred to collect funds subject to reimbursement,and for any damages incurred by the Authority as a result of the Grantee's failure to perform or provision of incorrect or misleading information.The Authority may require the Grantee to return to the Authority some or all of the project assets if this Agreement is terminated for cause. AEA:Rev.11/04 C:A\DOCUME 1\TJOHNSON\LOCALS 1\TEMP\TJOHNSON_MD001328.D0C Tenakee Springs Bulk Fuel &Powerhouse Upgrades Grant Agreement Number 2195237 Page 10 of 19 e)If this Agreement is terminated at the sole request of the Authority for the sole reason of its convenience,the Grantee is not required to reimburse the Authority for funds expended prior to the date of termination.If the Grantee has incurred costs under this agreement,the Grantee shall only be reimbursed by the Authority for eligible costs the Grantee incurred prior to the date of termination of the Agreement. However,prior to making any claim or demand for such reimbursement,the Grantee shall use its best effort to reduce the amount of such reimbursement through any means legally available to it.The Authority's reimbursement to the Grantee shall be limited to the encumbered,unexpended amount of funds available under this Agreement. Section 5.Sovereign Immunity. By execution of this grant agreement,the Grantee irrevocably waives any sovereign immunity which it may possess,and consents to suit against itself or its officials,under the laws of the State of Alaska,in the courts of the State of Alaska as to all causes of action by the Authority arising out of or in connection with this agreement.If the Grantee is an entity which possesses sovereign immunity,it shall provide the Authority with a resolution of the Grantee's governing body waiving sovereign immunity,and such resolution shall be incorporated into this agreement as an Appendix. 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 AEA:Rev.11/04 C:A\DOCUME 1\TJOHNSON\LOCALS 1\TEMPATJOHNSON_MD001328.DOC Tenakee Springs Bulk Fuel &Powerhouse Upgrades Grant Agreement Number 2195237 Page 11 of 19 (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. Section 11.Audit Requirements. The Grantee agrees that it will be bound by any audit requirements that may apply to this agreement including 2 AAC 45.010 commonly referred to as the "Single Audit Regulation”and any applicable federal audit requirements.The Grantee acknowledges that it is responsible for compliance with federal and state single audit requirements and all other applicable audit requirements,and agrees to obtain all required audits. Section 12.Severability. If any section,paragraph,clause or provision of this Agreement or any agreement referred to in this Agreement shall be finally adjudicated by a court of competent jurisdiction to be invalid or unenforceable,the remainder of this Agreement shall be unaffected by such adjudication and all the remaining provisions of this Agreement shall remain in full force and effect as if such section,paragraph,clause or provision or any part thereof so adjudicated to be invalid had not been included herein. Section 13.Declaration of Public Benefit. The parties acknowledge and agree that the Project shall be constructed,owned and operated for the benefit of the general public and will not deny any person use and/or benefit of Project facilities due to race,religion,color,sex,marital status,age or national origin. AEA:Rev.11/04 . C:\DOCUME= 1\TJOHNSON\LOCALS 1\TEMPATJOHNSON_MD001328.D0C Tenakee Springs Bulk Fue!&Powerhouse Upgrades Grant Agreement Number 2195237 Page 12 of 19 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 Business Manager of the Grantee or written designee of record. Section 16.Integration. This instrument and all appendices,amendments,and attachments hereto embody the entire Agreement of the parties concerning the grant funds granted hereunder.There are no promises,terms,conditions,or obligations regarding said funds other than those contained in the documents described above;and such documents shall supersede all previous communications,representations or agreements,either oral or written, between the parties hereto. Section 17.Applicable Law. This Agreement is to be construed according to the laws of the State of Alaska.Any civil action arising from this Agreement shall be brought in the Superior Court for the Third Judicial District of the State of Alaska at Anchorage. 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: Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage,Alaska 99503 Phone 907-269-3000 Fax 907-269-3044 AEA:Rev.11/04 C:'\DOCUME 1\TJOHNSONILOCALS 1\TEMP\TJOHNSON_MD001328.D0C Tenakee Springs Bulk Fuel &Powerhouse Upgrades Grant Agreement Number 2195237 Page 13 of 19 and in the case of the Grantee shall be: Art Bloom,Mayor City of Tenakee Springs P.O.Box 52 Tenakee Springs,Alaska 99841-0052 Phone 907-736-2207 Fax 907-736-2207 AEA:Rev.11/04 C:\DOCUME 1\TJOHNSON\ILOCALS 1\TEMP\TJOHNSON_MD001328,.D0C Tenakee Springs Bulk Fuel &Powerhouse Upgrades Grant Agreement Number 2195237 Page 14 of 19 Appendix 1 NOTICE OF PROJECT COMPLETION ALASKA ENERGY AUTHORITY Date: Project Name Tenakee Springs Bulk Fuel &Powerhouse Upgrades Contracting Party City of Tenakee Springs Authority Contract No.2195237 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.2195237. Project Manager Date Alaska Energy Authority The City of Tenakee Springs certifies that the Project named above is complete in accordance with the terms and conditions of Authority Agreement No.2195237. Authorized Signature Title Printed Name Date AEA:Rev.11/04 C:\DOCUME-1\TJOHNSONILOCALS 1\TEMP\TJOHNSON_MD001328.D0C Tenakee Springs Bulk Fuel &Powerhouse Upgrades Grant Agreement Number 2195237 Page 15 of 19 Appendix 2 FUNDING SOURCES AND TOTAL GRANT BUDGET AEA Granted Funds: Bulk Fuel Tank Farm Denali Commission $835,000.00 CDFA 90.100 Powerhouse Denali Commission $635,000.00 CDFA 90.100 Total AEA Granted Funds $1,470,000.00 Direct Project Costs Bulk Fuel Tank Farm $338,832.62 Powerhouse $524,215.68 Total Project Budget $2,333,048.30 AEA:Rev.11/04 CADOCUME 1\TJOHNSONILOCALS 1\TEMP\TJOHNSON_MD001328.DOC Tenakee Springs Bulk Fuel &Powerhouse Upgrades Grant Agreement Number 2195237 Page 16 of 19 Appendix 3 GRANTEE IN KIND CONTRIBUTIONS TO THE PROJECT The Grantee will provide,at no cost to the project the following: Use of Kubota B20 Tractor Lodging for non-local laborers AEA:Rev.11/04 C:ADOCUME- 1\TJOHNSOMLOCALS-1\TEMP\TJOHNSON_MD001328.D0C Tenakee Springs Bulk Fuel &Powerhouse Upgrades Grant Agreement Number 2195237 Page 17 of 19 Appendix 5 EMPLOYER IDENTIFICATION NUMBER APPLICATION AEA:Rev.11/04 C:ADOCUME 1\TJOHNSOMLOCALS 1\TEMP\TJOHNSON_MD001328.D0C corm 9924 Application for Employer Identification Number (For use by employers,corporations,partnerships,trusts,estates,churches,EIN(Rev.December 2001)government agencies,Indian tribal entities,certain individuals,and others.) Department of the Treasury OMB No.1545-0003 Internal Revenue Service >»See separate instructions for each line.>Keep a copy for your records. 1 Legat name of entity (or individual)for whom the EIN is being requested 2 Trade name of business (if different from name on line 1)3 Executor,trustee,"care of”name C/O Richards,Johnson and Granberry PC 4a Mailing address (room,apt.,Suite no.and street,or P.O.box)|5a Street address (if different)(Do not enter a P.O.box.) 1100 W.Barnette,Suite 102 4b City,state,and ZIP code 5b City,state,and ZIP code Fairbanks,AK 99701 Typeorprintclearly.6 County and state where principal business is located 7a Name of principal officer,general partner,grantor,owner,or trustor 7b SSN,ITIN,or EIN :Estate (SSN of decedent) Plan administrator (SSN) Trust (SSN of grantor) Type of entity (check only one box) [1 sole proprietor (SSN}H : O Partnership ''OO00o00OC Corporation (enter form number to be filed)>National Guard C1 State/iocal governmentCFPersonalservicecorp.Farmers'cooperative [_]Federal government/military (CJ Church or church-controlled organization REMIC )indian tribal governments/enterprisesDothernonprofitorganization(specify)Group Exemption Number (GEN)> L)other (specify)> 8b If a corporation,name the state or foreign country|State Foreign country (if applicable)where incorporated 9 Reason for applying (check only one box)0 Banking purpose (specify purpose)» [1]started new business (specify type)»___O Changed type of organization (specify new type) (J Purchased going business 0 Hirea employees (Check the box and see line 12.)CJ Created a trust (specify type)> /]Compliance with IRS withholding regulations ()Created a pension plan (specify type)> C1 other (specify)> 10 Date business started or acquired (month,day,year)11 Closing month of accounting year 06 12 'First date wages or annuities were paid or will be paid (month,day,year).Note:/f applicant is a withholding agent,enter date income will first be paid to nonresident alien.(month,day,year).6 6 6 ee ee ee 13 Highest number of employees expected in the next 12 months.Note:if the applicant does not |Agricultural |Household Other expect to have any employees during the period,enter "-0-."cee rl 6 14 -Check one box that best describes the principal activity of your business.[]Health care &social assistance (1 wWholesale- agent/broker[)Construction [)Rental &ieasing ()Transportation &warehousing [[]Accommodation &food service []Wholesale-other (1 Retail OO Realestate [Manufacturing [7 Finance &insurance (1 other (specify) 15 Indicate principal line of merchandise sold;specific construction work done;products produced;or services provided. 16a Has the applicant ever applied for an employer identification number for this or any other business?....L]ves V¥]No Note:/f "Yes,”please complete lines 16b and 76c. 16b !f you checked "Yes"on line 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 Complete this section only if you want to authorize the named individual to receive the entity's EIN and answer questions about the completion of this form. Third Designee's name Designee's telephone number {include area code} Party () Designee Address and ZIP code Designee's fax number (include area code) ()Under penalties of perjury,|ecclare that |have examined this application,and to the best of my knowledge and betief,it is true,correct,and complete.WH PX(@™FH0((@00N;Wweoa Applicant's telephone number (include area code)Name and title (type or print clearly)»44,pa ag £LaZAMALOE ALA yf EP (FIZ )7 SZ AHROFApplicant's fax number (include area code)Signature BEE peal S$Spor ht Date --2."OF”(SH CDE For Privacy Act and Paperwork Reduction Act Notice,see separate instructions.Cat.No.16055N Form SS-4 (Rev.12-2001) Form SS-4 (Rev.12-2001)Page 2 Do |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 lines 1-5b,7a-b (if applicable),8a, 9,and 16a-c. Changed type of organization 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. Is administering an estate Needs an EIN to report estate income on Form 1041 Complete lines 1,3,4a-b,8a,9,and 16a-c. Is a withholding agent for taxes On non-wage income paid to an alien (i.e., individual,corporation,or partnership,etc.) Is an agent,broker,fiduciary,manager,tenant, or spouse who is required to file Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons Complete fines 1,2,3 (if applicable),4a-5b, 7a-b (if applicable),8a,9,and 16a-c. Is a State or local agency Serves as a tax reporting agent for public assistance recipients under Rev.Proc.80-4,1980-1 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 aSmallBusinessCorparation®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,aicohol,tobacco,or firearms returns,must have an EIN.A partnership,corporation,REMIC (real estate mortgage investment conduit),nonprofit organization (church,club, etc.),or farmers'cooperative must use an EIN for any tax-related purpose even if the entity does not have employees. ?However,do not apply for a new EIN if the 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 least 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){iii).) 3 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. 5 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 (QI)need a QI-EIN even if they already have an EIN.See Rev.Proc.2000-12. 'See also Household employer on page 4.(Note:State or local agencies may need an EIN for other reasons,e.g.,hired employees.) *Most LLCs do not need to file Form 8832.See Limited liability company (LLC)on page 4 for details on completing Form SS-4 for an LLC. *An existing corporation that is electing or revoking S corporation status should use its previously-assigned EIN. i) Tenakee Springs Bulk Fuel &Powerhouse Upgrades Grant Agreement Number 2195237 Page 18 of 19 Appendix 6 EIN POWER OF ATTORNEY AEA:Rev.11/04 C:\DOCUME 1\TJOHNSON\LOCALS 1\TEMP\TJOHNSON_MD001328.D0C rom 2848 Power of Attorney OMB No,155.0150 (Rev.January 2002)and Declaration of Representative For IRS Use Only Department of the Treasury Received by: Imernat Revenue Service >See the separate instructions.Name E2ual Power of Attorney (Type or print.)Telephone Function 1 Taxpayer information.Taxpayer(s)must sign and date this form on page 2,line 9.Date // Taxpayer name(s)and address Social security number(s)|Employer identification ':number %Richards Johnson &Granberry PC 1100 W Barnette St,Ste 102 Fairbanks,AK 99701 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......2..224-8005-72238R Arlene Koenig Telephone No......../(907)452-41561100WestBarnette,Suite 102 Fax No............-(907)452-3156 Fairbanks,AK 99701 Check if new:Address []Telephone No.0 Name and address CAF No.........-2--8006-01437. Debra J.Gross Telephone No........!(907)452-4156 1100 West Barnette,Suite 102 Fax No.......2.-0-(907)452-3156 Fairbanks,AK 99701 Check if new:Address [J Telephone No.[] Name and address CAF No.2.20222...3206-14328R oo. Stefani Dalrymple Telephone No........:(907)452-4156 1100 West Barnette,Suite 102 Fax No.2.2.0.2...(907)452-3156 Fairbanks,AK 99701 Check if new:Address (1)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.) or Civil Penalty (See the instructions for line 3.) Tax Form Number (1040,941,720,etc.) Year(s}or Period(s) Application for Employer identification Number SS-4 2004,2005,2006 Employer's Quarterly Federal Tax Return 941 2004,2005,2006 Employer's Annual Federal Unemployment Tax 940 2004,2005,2006 4 Specific use not recorded on Centralized Authorization File (CAF).If the power of attorney is for a specific use not recorded on CAF,check this box.See the instructions for Line 4.Specific uses not recorded on CAF.........oP §Acts authorized.The representatives are authorized to receive and inspect confidential tax information and to perform anyandallactsthat|(we)can perform with respect to the tax matters described on line 3,for example,the authority to sign anyagreements,consents,or other documents.The authority does 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 return,or a consent todisclosetaxinformationunlessspecificallyaddedbelow,or the power to sign certain returns.See the instructions for Line 5.Acts authorized. List any specific additions or deletions to the acts otherwise authorized in this power of attorney:_......-..--.-.-2------e-eeeee Note:/n general,an unenrolied 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 separate instructions for more information. 6 Receipt of refund checks.If you want to authorize a representative named on line 2 to receive,BUT NOT TO ENDORSE OR CASH,refund checks,initial here Name of representative to receive refund check(s)> and list the name of that representative below. For Paperwork Reduction and Privacy Act Notice,see the separate instructions.Cat.No.11980J 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 listed on line 2 unless you check one or more of the boxes below. a_If you want the first representative listed on line 2 to receive the original and yourself a copy,of such notices orcommunications,check this box ...ee PMbIfyoualsowantthesecondrepresentativelistedtoreceivea4copyofsuch'notices and communications,check this box.»1 c_If you do not want any notices or communications sent to your representative(s),check this box.......»O 8 Retention/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 bythisdocument.if you do not want to revoke a prior power of attorney,check here,...we POYOUMUSTATTACHACOPYOFANYPOWEROFATTORNEYYOUWANTTOREMAININEFFECT. 9 Signature of taxpayer(s).If a tax matter concerns a joint return,both husband and wife must sign if joint representation ts requested,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. seseeeesKen.ELM dl,cecceeeee Bn Be OS Ue OGSignatureDateTitle(if Signature Date Title (if applicable) Print Name [ua]Declaration of Representative Caution:Students with a special order to represent taxpayers in Qualified Low Income Taxpayer Clinics or the Student Tax Clinic Program,see the separate instructions for Part Il. Under penalties of perjury,|declare that: @ |am not currently under suspension or disbarment from practice before the Internal Revenue Service: @ |am aware of regulations contained in Treasury Department Circular No.230 (31 CFR,Part 10),as amended,concerning the practice of attorneys,certified public accountants,enrolled agents,enrolled actuaries,and others; ©|am authorized to represent the taxpayer(s)identified in Part |for the tax matter(s)specified there;and ©|am one of the following: a Attorney-a member in 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. Enrolied 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 (i.e.,spouse,parent,child,brother,or sister). Enrolled 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 Service is limited by section 10.3(d)(1)of Treasury Department Circular No.230). h Unenrolled Return Preparer-an unenrolled return preparer under section 10.7(c)(1)(viiil)of Treasury Department Circular No.230. >IF THIS DECLARATION OF REPRESENTATIVE IS NOT SIGNED AND DATED,THE POWER OF ATTORNEY WILL BE RETURNED.aarananansrDesignation-Insert |Jurisdiction (state)or Siqnature Date above letter (a-h)Enrollment Card No.9 b Alaska b Alaska h Alaska Form 2848 (Rev.1-2002) Tenakee Springs Bulk Fuel &Powerhouse Upgrades Grant Agreement Number 2195237 Page 19 of 19 Appendix 7 TAX INFORMATION AUTHORIZATION AEA:Rev.11/04 C:\DOCUME 1\TJOHNSON\LOCALS 1\TEMP\TJOHNSON_MD001328.DOC OMB No 1545-1165Form8821TaxInformationAuthorizationueonyReceivedby" Rev.April 2004 ..Oeeinent 'ee eat >Do not use this form to request a copy or transcript of your tax return.NameInternalRevenueService¥Instead,use Form 4506 or Form 4506-T.Telepnone ) Function Date // 1.Taxpayer information.Taxpayer(s)must sign and date this form on line 7. Taxpayer name(s)and address (type or print}Social security number(s)Employer identification number [Replace this with Project Name] 1100 W.Barnette St.Ste 102 Fairbanks,Alaska 99712 ;: Daytime telephone number Plan number (if applicable) () 2 Appointee.If you wish to name more than one appointee,attach a list to this form. Name and address CAF No.3206714328R Stefani Dalrympie Telephone No.(907)452-4156 1100 W.Barnette,Ste 102 Fax No.(907)452-3156 Fairbanks,AK 99701 Check if new:Address []Telephone No.[]Fax No.[J 3 Tax matters.The appointee is authorized to inspect and/or receive confidential tax information in any office of the IRS for the tax matters listed on this line.Do not use Form 8821 to request copies of tax returns. @)7TypeofTax(b)(c) .(d} :Tax Form Number Year(s)or Period(s)€:.Foo Ee pena oo (1040,941,720,etc.)(see the instructions for line 3)|SPecifie Tax Matters (see instr, Payroll 940,941,W-2,W-3,ESC,SS-4 2004,2005,2006 4 Specific use not recorded on Centralized Authorization File (CAF).If the tax information authorization is for a specificusenotrecordedonCAF,check this box.See the instructions on page 3.If you check this box,skip lines 5 and 6 .>O 5 Disclosure of tax information (you must check a box on line 5a or 5b unless the box on line 4 is checked): a If you want copies of tax information,notices,and other written communications sent to the appointee on an ongoingbasis,check this box.2....kk eeeeeeeeRY b If you do not want any copies of notices or communications sent to your appointee,check this box...>»O6Retention/revocation of tax information authorizations.This tax information authorization automatically revokes all prior authorizations for the same tax matters you listed on line 3 above unless you checked the box on line 4.If you donotwanttorevokeapriortaxinformationauthorization,you must attach a copy of any authorizations you want to remainineffectandcheckthisbox....Looe >0Torevokethistaxinformationauthorization,see the instructions onn page 3. 7 Signature of taxpayer(s).If a tax matter applies to a joint return,either husband or wife must sign.If signed by acorporateofficer,partner,guardian,executor,receiver,administrator,trustee,or party other than the taxpayer,|certifythat|have the authority to execute this form with respect to the tax matters/periods on line 3 above. p>IF NOT SIGNED AND DATED,THIS TAX INFORMATION AUTHORIZATION WILL BE RETURNED. |Mesa SK Mud \-2-85SignatureDateSignatureDate Au ELE Frzcaltaen za Print Name Title {if applicable)Print Name Title (if applicable) Oooo [)PIN number for electronic signature O 1 ©0 Os ein number for electronic signature For Privacy Act and Paperwork Reduction Act Notice,see page 4.Cat.No.11596P Form 8821 (Rev.4-2004) 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 fs 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. A,Bank shall disburse credit to the account to the order of depositor when it receives a resolution from depositor in the form of Attachment A hereto.Any two officers of depositor,acting together,may execute a resolution in the form of Attachment A to withdraw or transfer all or any part of the above account balance at any time.Bank may require not less than 7 days after receiving such a resolution before a withdrawal.Depositor authorizes any officer of depositor to endorse any item payable to depositor or depositor's order for deposit to the above account or any other transaction with bank.Bank may require the governing body of the legal entity opening this account to give bank a separate authorization telling bank who is authorized to act on its behalf.Bank will not honor the authorization until bank actually receives at its Escrow Department written notice of a change from the governing body of depositor. City of Tenakee Springs 1 R&R Fund Account -Sample Documents 5.Bank's current fee schedule for its services hereunder is attachment B hereto.Bank's set-up fee and first year's annual fee have been paid to bank as of the date of acceptance of this account by bank specified below. Future annual fees shall be due and payable by depositor to bank on the same day each consecutive year of the term hereof.An annual fee is due and earned when an account year begins.The first account year begins on the effective date hereof.Any fee due and payable to bank hereunder may be charged against the above account when due.Bank may amend Exhibit B hereto from time to time on thirty days prior written notice to depositor. 6.On the last calendar day of each month of the term hereof,bank shall furnish to depositor and Denali Commission a written statement of the above account specifying the account balance,and any payment(s) received and interest earned credited to the account,as well as all disbursements of credit to the account to the order of depositor and fees charged to the account by bank,since the last statement date.Until further instructed in writing statements shall be furnished to depositor and Denali Commission by mailing the same in a first class postage prepaid envelope addressed as follows: To Depositor:To Denali Commission Depositor must examine its statement of account with "reasonable promptness.”If depositor discovers (or reasonably should have discovered)any unauthorized signatures or alterations,depositor must promptly notify bank of the relevant facts.As between depositor and bank,if depositor fails to do either of these duties,depositor will either share the loss with bank,or bear the loss entirely itself (depending on whether bank used ordinary care and,if not, whether bank substantially contributed to the loss).The loss could be not only with respect to items on the statement but other items with unauthorized signatures or alterations by the same wrongdoer.Depositor agrees that the time it has to examine its statement and report to bank will depend on the circumstances,but will not,in any circumstance exceed a total of 30 days from when the statement is first sent or made available to depositor.Depositor further agrees that if depositor fails to report any unauthorized signatures,alterations,forgeries or any other errors in its account within 30 days of when bank first sends or makes the statement available,depositor cannot assert a claim against bank on any items in that statement,and as between depositor and bank the loss will be entirely depositor's. 7.Bank's duties are determined from these instructions alone and without reference to other agreements,including,without limitation,any agreement between depositor and Denali Commission,and no covenant or obligation shall be implied against bank in connection with this agreement. 8.The effective date hereof is the date of acceptance of the account as specified by bank below. Money received by bank prior to acceptance is deemed to be received on the date of acceptance. 9.Bank may assign its duties hereunder (and thereby be released from its duties)to any corporation regularly engaged in the business of providing,in Alaska,the service bank is required to provide hereunder. 10.Bank may terminate the above account upon 30 days written notice to depositor and Denali Commission.After such termination bank will pay any account balance to the order of depositor. 11.Bank is deemed to have notice only when notice is actually received at its Escrow Department office, which does not include any branch office of bank. 12.A claim against bank is unenforceable unless an action is commenced within 90 days after termination of this agreement. City of Tenakee Springs 2 R&R Fund Account -Sample Documents 13.Bank shall not be liable for any costs,expenses,damages,liabilities or claims including attorneys' and Accountants'fees (collectively,"Losses”)incurred by or asserted against depositor except those Losses arising out of the negligence or willful misconduct of bank.In no event shall bank be liable to depositor or any third party for special indirect or consequential damages,or lost profits or loss of business,arising in connection with this agreement. 14.Bank has no duty to look to the propriety or application of any payment or distribution made to depositor,or to the order of depositor,and depositor agrees to indemnify bank and hold bank harmless from and against any and all Losses sustained or incurred by or asserted against bank by reason of or as a result of any action or inaction,or arising out of bank's performance hereunder,including reasonable fees and expenses of counsel incurred by bank in a successful defense of claims by depositor;provided,that depositor shall not indemnify bank for those Losses arising out of bank's negligence or willful misconduct.This indemnity shall be a continuing obligation of depositor,its successors and assigns,notwithstanding the termination of this agreement. 15.Bank shall have no duty or responsibility to inquire into,make recommendations,supervise,or determine the suitability of any transactions affecting the above account. 16.Bank shall be entitled to rely upon any resolution in the form of Attachment A actually received by bank and reasonably believed by bank to be duly authorized and delivered. 17.Bank is authorized to supply to any third party any information regarding the above account which is required by any law,regulation,rule or court order (including without limitation any subpoena)now or hereafter in effect. 18.Bank shall not be responsible for preparing or filing any tax report or return nor for the payment of any tax assessed against,or with respect to,any of the assets of the above account or any transaction for the account of depositor. 19.Each and every right granted to either party hereunder or under any other document delivered hereunder or in connection herewith,or allowed it by law or equity,shall be cumulative and may be exercised from time to time.No failure on the part of either party to exercise,and no delay in exercising,any right will operate as a waiver thereof,nor will any single or partial exercise of any other right. 20.In case any provision in or obligation under this agreement shall be invalid,illegal or unenforceable in any jurisdiction,the validity,legality and enforceability of the remaining provisions shall not be amended or modified in any manner except by a written agreement executed by both parties.This agreement shall extend to and shall be binding upon the parties hereto,and their respective successors and assigns. 21.This agreement shall be construed in accordance with the substantive laws of the State of Alaska, without regard to conflicts of laws principles thereof.Depositor and bank hereby consent to the jurisdiction of a state or federal court situated in the Third Judicial District,State of Alaska,in connection with any dispute arising hereunder.Depositor hereby irrevocable waives,to the fullest extent permitted by applicable law,any objection which it may now or hereafter have to the laying of venue of any such proceeding brought in such a court and any claim that such proceeding brought in such a court has been brought in an inconvenient forum.Depositor and bank each hereby irrevocably waives any and all rights to trial by jury in any legal proceeding arising out of or relating to this agreement.To the extent that in any jurisdiction depositor may hereafter be entitled to claim,for itself or its assets, immunity from suit,execution,attachment (before or after judgment)or other legal process,depositor irrevocably agrees not to claim,and it hereby waives,such immunity. City of Tenakee Springs 3 R&R Fund Account -Sample Documents 22.This agreement and the attachments hereto constitute the entire agreement of the parties.Bank has not made representations or assurances to depositor not stated herein. Date: Depositor By: By: First National Bank Alaska accepted this account on By: City of Tenakee Springs 4 R&R Fund Account -Sample Documents Wells Fargo Renewal and Replacement Account Escrow Managed "Regular Savings”Account Agreement ,2005 Account No. 1.The parties to this agreement are (Owner),and Wells Fargo.Owner hereby appoints Wells Fargo,acting through its Trust Department,as the Invested Escrow Agent for the investment and disbursement of the funds in accordance with this agreement. Wells Fargo agrees to serve as Invested Escrow Agent,pursuant to the terms set forth in this agreement. 2.Monies deposited by the Owner with Wells Fargo shall be for the purpose of establishing an R&R Account,which shall be used for replacement and repair of capital expenditure items with regard to the Owner's Energy Facility,which is partially or fully funded with monies from the Denali Commission. 3.On or before ,2005,Owner shall deposit the sum of $ and a like sum,not later than the last day of each and every month thereafter,until the expiration of this agreement,equal to 1/12 of the annual deposit required in the respective year,as set forth in Attachment D entitled "40 Year Renewal and Replacement Cashflow” and any revisions thereof to be administered in accordance with the terms of this Agreement. 4.The funds shall be deposited into an interest bearing "Regular Savings”account. Disbursements from this account will be restricted and can only be approved by Wells Fargo's Escrow Department pursuant to this agreement. 5.Upon written instruction from Owner,in the form of a Resolution identical to Attachment A, signed by two parties,Wells Fargo's Escrow Department shall disburse funds to the Owner. 6.The interest earned on the account shall accrue for the benefit of the Owner. 7.Wells Fargo will assess the fees and charges set forth in the fee schedule which is attached as Attachment B. 8.Wells Fargo will compile a "Monthly Report”,at the end of each calendar month,on all Renewal and Replacement Accounts that are established under similar agreement.This report will show all account activity by each Owner including;deposit amounts,date of deposits,disbursements,and date of disbursements.Monthly reports shall be sent to: Denali Commission Attn:Chief of Staff 510 L Street Suite 410 Anchorage,AK 99501 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. City of Tenakee Springs 5 R&R Fund Account -Sample Documents Wells Fargo By:Date Its: (Owner) Date By: Its: Taxpayer ID # Address: City of Tenakee Springs R&R Fund Account -Sample Documents PLEASE COMPLETE THIS AREA TO INSURE CORRECT ROUTING ORIGINATED BY ESCROW AGREEMENT ACCEPTED COPY Acct.#RETURN TO TO:WELLS FARGO BANK ALASKA (WF), its successors and assigns Date: |hand you herewith the following described item(s): Beginning Balance $Payments of $Maturity Date o Monthly Qa Quarterly a Semi-Annually Qa Annually First payment due:Interest start date at Payments made in excess of the regular scheduled amount oO will O will not satisfy future payments due. Excess funds a will Oo will not be applied to prior .Interest ion based on a 360 days a 365 days. Attached:O Exhibit A Special Payment Provisions O Exhibit 8 Multiple Disbursements O Exhibit C Partial Releases O Exhibit D Reserves Additional instructions: You are authorized to charge my WF Account #Os for the scheduled escrow payments,C1 _sballoon payments. Payer Signature Remit payments to payee: Address Or Credit Payments to:Oo Cashier's Check Oo E.F.T.(Enclose voided check) ial Checking Q Savings:WF Acct.No.(Di:fees paid by payee per payment transaction) Upon execution of this agreement the parties herein agree to pay fees in accordance with the current fee schedule,fees are collected per paymentitransaction.Set up fee:Ospaid OD scollect from first payment.Fees Paid by:O Payee O Payer O sDivide Equally (Fees Subject to Change Without Notice)O We request late payment monitoring (additional fee) Unless otherwise instructed,all service charges and fees will be charged to Payee. WF is hereby authorized to Geliver,by regi:mail or p ,the it and/or di t(s)herein i to any one of the undersigned Payees for and on behalf of all Payees at any address given below or such other address as any one of the Payees shall i in writing upon Payee's request or at WF's option under the foliowing conditions: At Payee's request when: (a)Any payment is delinquent 30 days or more;or (b)Payee furnishes WF evidence that Payer has received at least 20 days'written notice of Payee's intent to terminate,delivered by registered or certified mail. At WF's option when: (a)One payment has been delinquent for three months and WF has provided 10 days'prior notice to Payee and Payer. (b)Upon 30 days'prior written notice by WF to Payee and Payer. We the undersigned have read this Agreement,including the Terms and Conditions set forth on the reverse side,and understand the contents thereof and acknowledge that the terms of the Agreement are satisfactory to each of us.Upon receipt by the Bank of the final payment,the Bank will deem the contract satisfied and the and/or will be to the Payer.Under penalty of perjury,|certify that the Social Secunty or Employer I.D.Number provided beiow is true,correct and complete,and |am not subject to backup withholding. Date Date PLEASE PRINT NAME SOCIAL SECURITY NO.OR EMPLOYEE ID.NO.PLEASE PRINT NAME SOCIAL SECURITY NO.OR EMPLOYEE |.D.NO. PAYEE (SELLER)SIGNATURE PAYER (BUYER)SIGNATURE ADDRESS ADDRESS PLEASE PRINT NAME SOCIAL SECURITY NO.OR EMPLOYEE |.D.NO.PLEASE PRINT NAME SOCIAL SECURITY NO.OR EMPLOYEE |.D.NO. PAYEE (SELLER)SIGNATURE PAYER (BUYER)SIGNATURE ADDRESS ADDRESS Received above item(s)subject to conditions herein mentioned. Wells Fargo Bank Alaska. By PLEASE COMPLETE THIS AREA TO INSURE CORRECT ROUTING City of Tenakee Springs 7 R&R Fund Account -Sample Documents WELLS FARGO BANK ALASKA ESCROW AGREEMENT Terms and Conditions Payments.Payer shall pay all sums due Payee from time to time in the manner set forth herein to WF Escrow Service Department,at P.O.Box 100600,Anchorage,Alaska99510-0600 or such other address as may be directed by WF in the future.WF shall accept all payments tendered on this transaction,regardless of whether they are partial,full,or additional payments or whether they are tendered before or after the payment due date.WF shall have no duty or obligation to refuse any payment nor shall it beresponsiblefordeterminingthesufficiencyofanysuchpaymentunlessotherwiseagreedinwritingbyWF.WF will credit the account for payments as received and will disburse funds the following business day,but shall not be required to disburse to Payee prior to the time WF determines the payment is from collected funds.If any checkreceivedbyWFisdishonoreduponpresentmentforanyreason,WF may notify Payee of such dishonor and the amount of funds which WF has disbursed to Payee or othernamedPayeesinrelianceuponPayer's dishonored payment.Upon receipt of such notice,Payee shall promptly remit to WF the amount of such funds so disbursed by WFtogetherwithWF's then customary charge for the handting of returned checks,which charge shall be stated in the notice sent to Payee.WF is hereby given authority to reversethecredittoanaccounttowhichithasdisbursedfundsand/or to deduct from Payee's account the amount of the charge plus the amount of funds it has disbursed in relianceuponsaiddishonoredpayment.If two (2)checks are dishonored during any calendar year for any reason,WF may without notice terminate this account,cancel this AgreementandreturnthedocumentstoPayee. Interest Computation.Interest will be computed on a 365-day factor,except for leap year.Payments will be applied first to WF's fees,then to interest,the remainder,if any,toprincipal.The parties shall have 30 days in which to dispute the application of payments as computed by WF.WF shail be notified of any such dispute in writing within 30 days.If WF does not receive such notice within 30 days,all computations made by WF shall be conclusively deemed correct.Nothing in this paragraph shall modify or change any oftheagreementsbetween,or rights and remedies of Payer and Payee,as between the two.Any modification to this method of computation must be agreed to in writing by WF. Service Charge,WF may deduct its fees and service charges from payments received or credited to Payee's account.If fees or service charges are not received within 30 days of their due date,WF is authorized to terminate this Agreement without notice and deliver the documents to Payee.The expenses of closing of this collection may be deducted from the proceeds of the final payment.Service charges and fees are set forth in WF's published rates,which are subject to change from time to time without notice. Disputes.In the event of any dispute or misunderstanding,WF shall have the option to close the escrow and deliver instruments or documents to any one of the Payees or on behalf of the Payees upon 30 days prior written notice by WF to Payee and Payer or to hold undisbursed funds,or to require settlement by a neutral party,such as an arbitrator for determination,or to pursue any legal remedies which may be availabie 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 all further obligations or liabitity hereunder.Payee and Payer jointly and severally agree topaytoWFallcostsandexpensesincurredbyWF,including actual attorney's fees,in any interpleader action. Limitation of WF's Responsibility.WF shall be responsible only for the exercise of ordinary care in performing the duties set forth in this Agreement.WF shall be relieved from any further or additional liability beyond the performance of the duties expressly set forth herein.The parties hereto jointly and severally agree to defend,indemnify,and hold WF,its officers,employees,shareholders,attorneys,directors,agents and representatives harmless from and against,and to pay on demand 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)Tonotify any party of nonpayment or declaration of default,condemnation or the condition of any property;(b)|Toconstrue,enforce or determine the performance or nonperformance of any terms of the documents underlying the transaction;{c)|To determine if any agreement or document is in compliance with locai,state,or federal laws and regulations;(d)To determine the authenticity,validity,enforceability or sufficiency of any document deposited,or for the accuracy of description of any such document,the description having been furnished by the parties: {e)To give notice of any change of ownership or to enforce any due-on-sale or similar provisions; (f)To determine if any payment schedule will amortize any obligation;(g)|To determine the sufficiency or verification of the account balances on any other previously or subsequently-recorded encumbrance or security interest against theproperty,including security interests which this collection agreement may,in whole or in part,satisfy;further,WF does not assume any responsibility for determining if any payments being made by this escrow to satisfy,in whole or in part,any other obligation will,in fact,amortize the obligation receiving the payments hereunder at or before the satisfaction of this escrow; (nh)To pay or notify any party regarding recording of documents,perfection of security interests,or nonpayment of insurance premiums,taxes or other assessments or encumbrances; (i)To assess,bill,collect or pay any late charges due under the terms of the documents deposited herewith unless otherwise agreed in writing by WF;Gj)For the determination of balances to third parties or overpayments to them where instructed to credit payments to persons other than the Payee; (k)To verify or determine whether the assignment of the payments under this escrow for security purposes or otherwise does not create a default in the terms of the documents underlying this transaction; (I)To account or give credit for any payment made or received outside this collection; (m)To vote or exercise any of the rights of ownership of corporate stock or similar items deposited herewith;or (n)To perform any act not expressly set forth in this Agreement even though contained in any documents deposited herewith. The liability of WF for negligent performance,or negligent non-performance,shall be limited to the amount of charges or fees charged to the parties hereto,under this Agreement,for the month in which any damages are incurred.Under no circumstances will WF be liable for any special,consequential,or punitive damages.Notwithstanding any other provision of this Agreement,WF will not be liable for any damage,loss,liability,or delay caused,directly or indirectly,in whole or in part,by those items set forth above. Lien-Offset.WF shall have a first and paramount lien on all documents,monies and things deposited in connection with this Agreement and the right of offset against any WF account of any party hereto to secure payment of all costs,expenses,obligations and fees due WF. Agreement Controls.In the event of conflict or omission between the documents deposited in connection with this Agreement,this Agreement shall control as to WF.WF shall not be responsible for determining the existence of any such conflict or omission. Authority to Release Information.If any party to this Agreement sells or contracts to sell the property described in the documents deposited herewith,or applies for financing secured by the property,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'prior written notice to Payer and Payee.Upon such transfer,WF shall be relieved of all further duties and liabilities under or related to this Agreement. Notice.Any notice to WF required or permitted hereunder shail be sent certified or registered mail to Wells Fargo Bank Alaska Escrow Service Department,P.O.Box 100600, Anchorage,Alaska 99510-0600,or such other address as may be designated by WF.Notice shall be effective only when received in the Escrow Service Department. General.This Agreement may be modified or amended only by written instructions accepted by WF and payment of the applicable fee.This Agreement is intended for the sole benefit of the parties hereto,and shall not be construed to create any rights in third parties.This Agreement shall be governed and interpreted in accordance with the laws of the State of Alaska,and any litigation arising out of or relating to this Agreement to which WF is a party shall be commenced and maintained only in the appropriate court of the Alaska State Court System,Third Judicial District,at Anchorage. City of Tenakee Springs 8 R&R Fund Account -Sample Documents ATTACHMENT A Resolution for Disbursement of Renewal and Replacement Funds for Energy Facility An Identical Resolution to This Must be Passed and Signed by the Community To Withdraw Funds from The R&R Account Community of Resolution No. WHEREAS,the Community of has established an escrow managed interest bearing renewal and replacement account with the financial institution of for the purpose of renewal and replacement expenditures related to the facility,which was partially or fully funded by the Denali Commission, and WHEREAS,pursuant to the communities approved business plan for facility the community has agreed that funds deposited into this renewal and replacement account will only be used for the renewal and replacement of facility,and WHEREAS,eligible withdrawal of funds from this account must be for the labor,transportation,equipment rental, professional services,materials,equipment and other costs for the replacement and repair of assets essential to the on-going sustainability of the facility.For energy facilities this is including but not limited to:Access Roads,Buildings,Poles,Transformers,Generators,Radiators,Electrical Systems,Wires,Meter Systems,Pumps,Fencing,Fuel Storage Tanks,Fuel Distribution Systems,Walkways,Access Roads Dispensers, Fill Stations,Tank Liners,Fencing,Pad,Valves,Pipelines,Piling,Decks,Manwalks,Headers,Ground Maintenance and Containment Systems THEREFORE,the Community of hereby attests that the funds being requested from the escrow managed interest bearing renewal and replacement account with the financial institution of is for renewal and replacement expenses related to the facility as outlined above and is not being used for any other purpose,and THEREFORE,the Community of requests the total sum of $for the following detailed expenses Signed by two people representing the community, City of Tenakee Springs 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. ©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) City of Tenakee Springs R&R Fund Account -Sample Documents 10 Check Writing None None Reports Monthly Report to Denali Commission on Deposit and Withdrawal activity (.50 Charge) Monthly Report to Denali Commission on Deposit and Withdrawal activity (No Charge) Requirement for Withdrawal of Funds Approved Resolution Identical to Attached Template must be submitted to Escrow Department Approved Resolution Identical to Attached Template must be submitted to Escrow Department Interest First Investment Account Tiered depending on balance of account (based on current Treasury Bill).Below are 1/02/02 rates: $0-$2,499 557% $2,500-$4,999 778% $5,000-$24,999 825% $25,000-$49,999 846% $50,000-$99,999 887% $100,000+917% Based on the Regular Savings account: 5/20/02 rate =1% To establish an account: 1.Contact one of the representatives above 2.Tell them you need to establish a "Denali Commission Renewal and Replacement Account” 3.Sign the Account Agreement for the institution. 4.Pay set-up fee and fill out other general information to establish account Sample documents attached include: ©Business plan language that requires R&R accounts o Account agreements (between institution and community)templates o Example of the resolution that is required to withdraw funds from a R&R account City of Tenakee Springs R&R Fund Account -Sample Documents 11 ATTACHMENT C EXAMPLE OF LANGUAGE IN ALL DENAI COMMISSION FUNDED ENERGY FACILTIES Financial Responsibilities There are two cost categories that will be incurred in the ongoing operation and upkeep of the Facility -O&M and R&R. 1)O&M:The Primary Operator will incur a number of expenses relating to the O&M of the Facility.O&M items are defined as expenses that are incurred on a regular basis (administration,audits,etc)and maintenance expenses that are incurred on an annual basis,as well as replacement costs of items under $5,000.Electric Utility related O&M expenses are detailed in Table C:Annual O@M Schedule and in the narrative detail provided in Section IX:Financial Information.Bulk Fuel Storage O&M expenses are detailed in Table K:Annual O@M Costs and in the narrative detail provided in Section IX: Financial Information 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 Re>R Schedule details the anticipated items,the frequency of their replacement and their present day value.For the Bulk Fuel Storage,Tab M:40 Year Re»R Schedule details the anticipated items,the frequency of their replacement and their present day value. The Primary Operator will maintain separate O&M and R&R accounts and will maintain a sufficient account balance to meet the O&M and R&R financial goals in this Plan.The O&M account may be an active non-interest bearing account. The Managers 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 ofQuakfication 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 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 May 31,the Primary Operator will develop a budget for the upcoming fiscal year, July 1**through June 30%,for both O&M and R&R.This will include an update of actual expenses and projections and assumptions used in this Plan,as described in Section IX:Financial Information,Subsequent Operating Year Revisions. Additionally,Tables A-O should be updated. Operations and Maintenance Guidelines The Primary Operator will establish an account to fund the Facility O&M so that the O&M schedule can be completed and the Facility operations can be sustained into the future (this is anticipated to be an active non-interest bearing account).For the Electric Utility,Section IX:Financial Information provides Tab C:Annual OC™M Schedule as a guide to plan for annual maintenance activities and Tab/e D: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 Tabk K:Annual O&M Costs as a guide to plan for annual maintenance activities and Tabk L:40 Year O¢M 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 account acceptable to the Denali Commission,which will ensure capitalization of an amount sufficient to maintain the R&R Schedule (see Re>R Fund Account -Sample Documents for "How to Establish a R¢>R Account'\.Section LX.Financial Information provides Tables GM:40 Year R&R Schedule as a guide to plan for annual R&R activities and Tables He»N:40 Year R&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 Re>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. City of Tenakee Springs 12 R&R Fund Account -Sample Documents ATTACHMENT D 40 YEAR RENEWAL AND REPLACEMENT CASHFLOW City Inflation Rate :Initial Cost per gallon ($/gallon): Reinvestment Rate :20 Year R&R:Annual increase : Escrow Fees:20 Year Loan Proceeds:[-'$'-City Initial Throughput (gallons):144,000 |NA NA Initial Throughput (gallons):Initial Cost per gallon (§/gallon): Loan Rate:NA Initial Throughput (gallons):Annual increase : Loan Term:f-.-NA Initial Cost per gallon ($/gallon): Annual increase : R &R Fund Balance Assumed Throughput (Gallons)Per Gallon Payment Beg.of Annual Deposit Lo.Interest End ofYearYear .Principal Debt Service Renewals/Earnings (Net Year City NA NA City NA NA Balance City NA NA Total Received Replacements of Fees)Balance Jl $$7,920/$se |$$7920 eS 7920F |144,000]-|ed YS 0.055 |$-$- 2/18 7920]$s8i98/$ -[$--/$aig]Cid]dG -[$-158]$16,277]|'144,720 -[ -||§0.057 |$_-|$, 3 |[8 16277]8 84s7/$s-[$-[8 BT 8S 589 F |14544a fT --l1s _ooss[s ss -sd'S - 4]25089|$3795/$-/$§-[$3795]|YB ST 84376 F |a6 --|/s ooofg -[gs --5s]|[s 3437/8 900)/s -f$s =|$094]$2,123 |$645[$41,992 146,902)-|-|]s _ooo2]s ds "6 )(s 4992/3 943[$-fs 83 840[§52,245 147,636 --]YY 8 ona |g a"7 |1%52,245/$9,744/$|S -1$9744]TS gs 63,034}|4a37a]fd 0066|$ -|$-- a 1{s 63,034/$10087)-|$-i(si Sts]TCS -[$1,201]$74381}|149 |]SS 0.068 |§-{sg"9 |Js 74381/8 10,441/s (8 te -{$1,488]$86,310]|149,862 -|=}/$0.070}§--{[s.tol [$ 86310/$10s08[s=-|S -s-C tO]Cd CdS 8S 8 584251 |S011]:-|]s 007218 -|gai}]s 58425)$ 11is8fs [8-8 af $-si-(8 1,169|$70,782]|151,364]--11$-_oo7als -[$s121/18 70,7892/$ 11581/$=-($8 SBE s_-|$1416{$83,779]|saat =]ore Sd43|1§-83,779[$11,988/$|S$|898 |'js -[8 ore [$97,443 |sags2t ef ora an ee 14]4S -97,443[8 12,410]§-1$_+|$12,410 $s J $1,949]$111,802 153,646][TS 0.081 |$-|[s..is}is ittgo2|$1284/5 -|$ --|$1284]=|sd)«3867718 1 ac2t$87,433]|154,414 -[yds 0.083 |$-_|$ 16;1$ 87,.433/$ 13,298/8 |-|s --/s 1320)|fs -{$_1,749]$102,480]|155,186 --P1s ooe]s ss'a7{]$ 102480|/$13,765[$=-[$813,765 $-|$2,050|$118,294)|155,962,--}4y8 _ooss[s geig][$s 118,204]$14249/$-fS _$-|8 2,366]$134,909]|156,742,--[is _oonfs =fs49||$134,909]$14,750 |$-|$;Ss -[S 2608]$152,357]J 157,526 ne E:0.094 |$-|[s20}ts 152357[§1520818 [8 $70,090]$ 116816]$2113]$123,011]|158,313 -_-1 48 0.096 |$_-|$"21 4p 1$123,011]$15,805|es ee a 8 9,299]5 -[$-2,2747$131,792]|159,105 ---}7$0000]$_-|s 221 1§ 131,792|$ 16300/$-1$sd 9,299 |$-|§2,450[$141,303]|-__-159,900 --|{$on02]s_-Is23$141,303 $ 16935/$_-(|$Is 9,2991§-|$2,640/$151,580]|160,700]si |-[]s.o1osfs dS 24}1s 151,580/$17,531/$ -[$=-{s 9,299 |§-1$2846/$162,658]|161,503]--|{s _oto9fs es2511$ 162,658]$18147,/$ -[$ -sd 9,299 |$2,859 |$3,010/$171,657}]162,311]d(C --[{8 ona]s -[826)48 171,657]/$18,785/§--[$--|$18,sd 9,299 |§-18 3,247|$184,390|163,123)ft -Is27]|)$184390]$194451 -[$ --[$19,445]8209]-1$3,502($198039/|163,938]|tt;YS 28)|$ 198,039,$20129/$ -|$=-;$20129]9,299 |§-|$3,775|$212,643 164,758 -|=0.122}$ -[$s 29|[$ 212643[§ 20836/$=-/$--|$ =--2s3of (sd 299 §-|§4,067 |$228,248 165,582 --|1$0.126 |§-ig, 30/]$228,248]$2150918 =-|$-|$21,509]sf $ -9,209 §98,647 |§2,406[$144,277 166,410 -|=P 8 onsofs- 31)]$_144.277/$ 22327/8 [8 $22,327 $-|$2,886 |$169,489|167,242 -[-|]$0133]$_-is. 321 ]9 169,489]8 23,111 /$=-|$-|$23,111 $-[$3,390]$195,991|168,078 --||$0.138 |$-|s 331)[$1959918 2392418 --!§ -|$23924)=f s'S -|$3,920|$223,834]|168,918 |--l/s$0.1421 §--|s 34]18 223,834/$ 24765/$-|$-|s 24765,Td -|$4,477 1 $253,076 169,763{se -|[$0.146 |$-{$ 35][$ 253,076]$25,635|$-|$-1$25,635 §3318/§$4,995]$280,388|170612]-]” * é'"-;t S*dWC*dCSCS;*C* «CSOT -{3 36 ||$280,388)$26,536|§-|$-|$26,536 $-1$5,608]$312,532 171,465 |-[--|1$0185]$-_|[$37)]$ 312,532]§27,469[8 -|$_-[S$27oof $-|$6,251]$346,252;|172,322,--||$0.159 |$-|$ 38][$ 346,252/$28435/$ -[$--|$28,435 $s --{$6 925|$381,611 173,184 -|_-11$0.164]$5 -[$s3911§381,611]$29,434|$-/§-1$29,434 dS -[$_7,632]$4186781 |_-si74oso{Cf t -"<-s*i -*dC C'S 0.169 |$-[$s,"40 |[$418.78 |$30.4691§"lg TS 304e9[8 $412,035 1 §-[$37,111 174,920 -Ls 0.174 [$-|s City of Tenakee Springs R&R Fund Account -Sample Documents 13 ATTACHMENT E 40 YEAR RENEWAL AND REPLACEMENT CASHFLOW R &R Fund Balance Assumed R&R Year Hew of Annual Renewals/Paine (Net el Collectable Surcharge Balance Deposits Replacements of Fees)Balance KwH/Year $/Kwll 1 $-|$8,448 |$-|$-|$8,448 |367,308 ||$0.023 2||Is saaals s400ls -|$253/$17,1921]3691451 1$0.023 3.|{$ 17s921s 853318 -|$ 516/$26,2401]370990][3 0.023 Inflation Rate:"4Its 2624013 857518 -|$7871$ 35,603||372,845]|$0.023 Reinvestment Rate:5|{$3560318 8618/$2530115 3091 $19,230 374,709]|$0.023"6 Is 19230]$124271 °°°&£4-|8 385/8 32041]|376583)|$0.033 7 |ds 3204118 12489/5 --|$6411$45172/|378466)1$0.033 Invested Escrow Fees: _8 [Js 45172]$12,552]$=[$903 |$58,627]|380,358]|$0.0339$§586271$12,615]§$-|$117318 72,414 382,260 ||$0.033 "40 J4s 72414/$i20781$49449|/8 459|/$36102]|384171]|$0.033 i 3 _36,102,Ss 16,602 $oe -7$722 $53,426 386,092 $__0.043 Initial KwH!Collectable: 12 $ 53,426]$16685}5 --1$ 1,069/$71,179]|388,023]|$0.043 InitialCostperKwHl:43°«|1S)74,179 18 :16,7681 $-1$1,424/$89,371 389,963 |1$0.043 5 year step cost increase:_14 ||889,371]$$16,852/$7 $1,787]$108,011]|_--391,913 ||s_-_0.043_15 |[$108,011]$16,937]$-29,363]$1,573 [$97,158]|393,872 |$_0.043_16|{$97,158]$_ 20980)$=|$1,943]$120,080]|395,841}|S0.053. 17 $120,080]$21,084]$-|$2,402 ]$143,567}|397,821,|$0.053_-18Jf YS 143,567/$27190;S $2 B7T TS 167,628}|399,810]|$0.053 19 $_167,628)$-21,296)$==-|$3,353 |$_192,276}|401,809]|$0.053._20|[$192,276]$21,402]$134,906]$1,147]$79,920]|403,818]|$0.05321||S 79,920]$25,568 |$-|$1,598]S$107,086]|405,837]|$0.06322||$_107,086]$25,696]$=-1 $2,842]$134,924]|407,866]|$0.063_23||S 134,924)$25.824)$ --|S 2,698($163,446]|409,906]|$--_-0.06324|18 163,446/$25953;--|8 3,269]$192,668.411,955 ||$0.06325|1$192,668]$26,083]$34,076]$3,172 |$_187,846]|414,015]|$0.06326«||S 187,846]$-30,374|8 $3,757]$221,978]|416,085)|$0.07327|[$221,978]$30,526]s -|$_4440]$256,943]|418,105]|$0.07328||S 256,943}$30,679 |$-|$5,139]$292,761)|420,256)[$0.07329|{$_292,761]$30,832]=|$5,855 $329,448]|422,357]|$§0.073_30|]$_329,448]$-30,986[$65,586]$5,277 |$300,125]|424.409]|$$0.07331§300,125/$ 35,407/$|$6,003 |$341,535]|426,592]|$0.083_32 ||S 341,535]8 35,584 |$_-|$6,831]$383,950]|428,724}|$0.083_33||$_383,950|$-35,762]$|87,679]$427,391 ||430,868]|$0.08334|1s 427,301]$35,941 |$-1$8,548]$471,880]|-_433,022||$-_-0.08335|{$471,880|$36,1211 40,640]$8,625]§475,984]|435,188]|§0.08336|1S 475,984]$40,675]$--1$9,520]$526,179||437,364]|$0.09337.||$526,179]$40,878|$--|{$-10,524]$577,581 439,550]|$0.09338dYS577,581/$41,083/$ --|$ 14,552]$630,215]|441748]|$0.09339 «L YS)630,215]$41,288 |$-1$ 12,604]$684,107 443,957 ||$0.093 40 ||$68410718 41,494/$ 686,312]$-|$39,290 446,177|1$0.093 City of Tenakee Springs R&R Fund Account -Sample Documents