98-19 Monashka Bay Water FacilitiesMay 12, 1999
Kodiak Island Borough
Engineering and Facilities Department
710 Mill Bay Road
Kodiak, Alaska 99615
Phone (907) 486-9343 Fax (907) 486-9376
Department of Environmental Conservation' 3
Division of Facility Construction & Operation NN
No
555 Cordova Street, 4'"Floor ____.__ ___
Anchorage, AK 99501
Attn: Mike Lewis
Re: Alaska Drinking Water Fund
Intended Use Plan
Dear Mike:
We are in receipt of the proposed priority list for projects eligible for construction loans for this
next year. The Kodiak Island Borough would like to express our support for the Monashka Bay
Water Facilities Design and it's placement on the mentioned list.
The city of Kodiak has received grant funds for two consecutive years to help get this project off
the ground. This loan would ensure all phases of this project could be accomplished. This
project would benefit the community as a whole. The study conducted in 1991 by HDR Alaska,
Inc. supports the need for this project. There are significant quality and quantity problems with
wells in the area as well as problems with individual septic systems.
Once again the Kodiak Island Borough supports this project. If you have any questions or need
further comment please call.
Sincerely,
KO/DIAK ISLAND BOROUGH
Chris Lynch
`7
Director
cc: Bill Jones, Manager, City of Kodiak
Assembly, Mayor and KIB Manager
317 7
JJJ1lli
DEPT. OF ENVIRONMENTAL CONSERVATION
ALASKA CLEAN WATER FUND AGREEMENT
KIB CONTRACT NO. 98_19
TONY KNOWLES, GOVERNOR
ADEC LOAN NUMBER 505031
KODIAK ISLAND BOROUGH - Vertical Expansion, Leachate
Control, Wastewater Collection and Partial Closure
THIS AGREEMENT is entered into as of April 24, 1998 by the Alaska Department of
Environmental Conservation (the Department) and the Kodiak Island Borough (the Borough),
acting pursuant to Resolution 97-51 approved by the Kodiak Island Borough.
SECTION I - DEFINITIONS
Section 1.1. Except where the context clearly indicates otherwise, tetras used in this Agreement
will have the meaning ascribed to them in this section.
(a) "Approved Application" means the application submitted to the Department on
January 5, 1998, together with all attachments and supporting documentation, as approved by the
Department and the Borough.
(b) "Contract interest rate" means 3.80 percent per annum.
(c) "Contract period" means the time period commencing on the date this agreement
is signed by the Borough and terminating on the date the Borough repays the loan in full.
(d) "Default" means the Borough has failed to make a loan repayment within 90 days
of the due date, as determined by the repayment schedule prepared by the Department
immediately following initiation of operation of the facility.
(e) "Eligible Project Costs" include the following costs disbursed from the Alaska
Clean Water Fund, estimated to not exceed $2,000,000; demolition, construction, and
engineering for the Project Facility; machinery, furnishings, and equipment; surveys, plans,
estimates, and specifications; environmental investigations; laboratory testing, resident
engineering and inspection fees; force account; and any other necessary miscellaneous
expenditures, minus the amount of any grant applicable to foregoing costs.
(f) "Participation Payment" means the amount per year necessary to amortize the
loan.
(g) "Project Facility" means the facility to be constructed pursuant to this Agreement
as described generally in the Approved Application dated December 31, 1997 and described in
detail in the project's facility plan. The project will design and construct an expansion to the
existing landfill for leachate control and treatment, baler building wastewater collection and
storage, and the initial phase of the final closure.
SECTION II - RIGHTS OF ACCESS
Section 2.1. The Department has the right at all reasonable times to enter the project site, for the
purpose of inspecting the facility.
SECTION III - ACQUISITION OF PROJECT SITE, CONSTRUCTION OF
PROJECT FACILITY, LOAN DISBURSEMENT, AND PAYMENT OF
COSTS
Section 3.1. With the exception of land easements, all real estate and personal property
constituting the Project Facility and the project must belong to the Borough -
Sec ion
orough.Section 3.2. In connection with the construction of the project, the Borough agrees that:
(a) The Borough will not begin construction of the Project Facility until the
Department has reviewed and approved the plans and specifications for the project.
(b) The construction contract will require the contractor to comply with the
Davis -Bacon Act and will require appropriate provisions to be inserted in all subcontracts.
(c) All construction contracts and contractors' estimate forms will be prepared
so that materials and equipment may be readily itemized as to eligible and noneligible costs.
(d) Any change in a construction contract that will alter the contract
specifications, time, price or will substantially modify the proposed treatment process must be
submitted to the Department for approval if the Borough wishes to have the modifications
considered loan eligible.
(e) The construction of the Project Facility will conform to applicable federal,
state, and local laws, ordinances, and regulations.
(f) The Borough will proceed expeditiously and complete the Project Facility
in accordance with the Approved Application, project schedule, surveys, plans, profiles, cross-
sections, specifications, amendments, and any mitigative measures required by the Department.
Section 3.3. The Borough agrees to administer this loan in a non-discriminatory manner. No
person shall be discriminated against based on race, religion, color. national origin, gender or
disability.
agg fign 3.4. When applicable, the Borough will comply with Title I -Employment of the
Americans with Disabilities Act of 1990 (P.L. 101-336) and in accordance with Title I of that
Act, shall not discriminate against a qualified individual with a disability because of the disability
of such individual in regard to job application procedures, the hiring, advancement, or discharge
of employees, employee compensation, job training, and other terms, conditions, and privileges
of employment.
tion . When applicable, the Borough will comply with Title II -Public Services of the
Se
Americans with Disabilities Act of 1990 (P.L. 101-336) and in accordance with Title II of the
Act, no qualified individual with a disability shall, by reason of such disability, be excluded from
participation in or be denied the benefits of the services, programs, or activities of a public entity,
or be subjected to discrimination by any such entity.
SggfiQn. Lfi When applicable, the Borough will comply with Title II, Part 35, Section 35.151 of
the Act "New Construction and Alterations," (a) Design and construction: Each facility or part of
a facility constructed by, on behalf of, or for the use of a public entity shall be designed and
constructed in such manner that the facility or part ois readily accessible to and
f the facility
usable by individuals with disabilities, if the construction was commenced after January 26,
1992. (b) Alteration: Each facility or part of a facility altered by, on behalf, of or for the use of a
public entity in a manner that affects or could affect the usability of the facility or part of the
facility shall, to the maximum extent feasible, be altered in such manner that the altered portion
of the facility is readily accessible to and usable by individuals with disabilities, if the alteration
was commenced after January 26, 1992. (c) Accessibility standards: Design, construction or
alteration of facilities in conformance with the Uniform Federal Accessibility Standards (UFAS)
(Appendix A to 41 CFR part 01-19.6) or with the Americans
with i sabilitCFRies Act 36) Accessibility
Guidelines for Buildings and Facilities (ADAAG) (Appendix
shall be
deemed to comply with the requirements of this section with respect to those facilshall
that the elevator exemption contained at section 4.1.3(5) and section 4.1.5(1)6) ADAAG
not apply.
Section .7 When applicable, the Borough will comply with Title III, Part 36, Section 46.401 of
the Act "New Construction." Except as provided in paragraph (b) and (c) of the Act,
discrimination for purposes of this part includes a failure to design and construct facilities for
first occupancy after January 26, 1993, that are readily accessible to and usable by individuals
with disabilities.
3
Section 3.8 When applicable, the Borough will comply with Title III, Part 36, Section 36.402 of
the Act Alterations" (a) General: Any alteration to a place of public accommodation or a
commercial facility, after January 26, 1992, shall be made so as to ensure that, to the maximum
extent feasible, the altered portions of the facility are readily accessible to and usable by
individuals with disabilities, including individuals who use wheelchairs. (b) Alteration: An
alteration is a change to a place of public accommodation or a commercial facility that affects or
could affect the usability of the building or facility or any part thereof.
Section 3.9. The Borough will comply with the minority and women owned business
requirements of the Alaska Clean Water State Revolving Loan Fund program, and will require its
contractors to also meet these requirements.
Section 3.10, The Borough will require each construction contractor to furnish a performance
and payment bond in an amount at least equal to 100 percent of the contract price.
Section 3.11. The Borough will require its contractors and subcontractors to maintain workers
compensation, public liability, property damage, and vehicle liability insurance. Until the Project
Facility is completed by the Borough, the Borough (or at the option of the Borough, the
contractor) will maintain insurance for the loss of the facility for the benefit of the Department,
the Borough, the prime contractor, and all subcontractors, as their interests in the Project Facility
may appear.
Section 3,12-- Subject to the terms and conditions of this Agreement, the eligible project costs
less other funding sources will be disbursed by the Department upon submittal and departmental
approval of invoices.
Section 3.13. If this project finishes under the estimated cost of construction, it will be funded
only as necessary to complete the project.
Section 3.14. Upon completion of the Project Facility, the Borough shall provide a statement to
the Department of the project final costs by category of expenditure, including but not limited to
costs for: administration, design, construction engineering, construction and equipment.
SECTION IV - PARTICIPATION PAYMENTS BY THE BOROUGH
Section 4.1. This loan is made to the Borough from the Alaska Clean Water Fund for the
maximum amount of $2,000,000.
Section 4.2. The Borough agrees to repay the principal amount and interest on all cash draws
made to the Borough according to the repayment schedule, which will be prepared by the
Department and confirmed by the Borough following initiation of operation of the facility. The
repayment schedule for the actual amount of loan payments made to the Borough will provide
that:
(a) the Borough will pay interest at the contract interest rate on each disbursement.
Accrual of interest will begin one year after the date of the first disbursement to the Borough.
(b) the loan amount will be paid back within 20 years following initiation of operation of
the facility. Repayment of the loan will be made with either equal annual principle payments
plus interest or equal annual total payments including interest. Other repayment methods may be
negotiated with the Department.
(c) the first loan repayment will be due one year following substantial completion and
initiation of operation of the facility.
Section 4.3. The Borough assures the Department that the Borough has not pledged revenues for
the repayment of its loan that have been previously pledged or encumbered, unless specifically
set forth in the Borough's approved application. The pledged revenues for repayment of the loan
and each separate source of revenue are specifically identified and described in the Borough's
submitted application.
Section 4.4. In the event that any of the revenues pledged by the Borough for the repayment of
its loan are encumbered by a lien of any prior outstanding debt, the Borough will furnish the
Department with legal assurance that the excess of such prior encumbered revenues are legally
available for pledging to the Alaska Clean Water Fund.
Section 4.5. The Borough agrees that if pledged revenues are insufficient to meet any loan
payment to the Department when due, the Borough will pay the deficiency in its loan payment
from any legally available funds accruing to or in the possession of the Borough. Repayment of
the loan which is the subject of this loan agreement shall not be a direct and general obligation of
the Borough.
Section 4.6. If a payment is received by the Department more than 30 days after it is due, the
Borough agrees to pay a late charge of five percent of the payment. Interest on the unpaid
balance will continue to accrue at the contract interest rate and must be paid in addition to the
late charge. Payments in arrears over 90 days, will be referred to the Attorney Generals Office
for collection.
Section 4.7. The Borough agrees that it will separately account for all monies received from the
Alaska Clean Water Fund and will maintain project accounts in accordance with generally
accepted governmental accounting principles.
Section 4.8. If, prior to completion of the contract period, the Project Facility is damaged or
destroyed, the Borough is liable to the Department for all amounts due under this Agreement.
Section 4.9. The provisions of AS 37.15.575 relating to state aid interception apply to the loan
made under this agreement.
SECTION V - MAINTENANCE, OPERATION, INSURANCE and AUDIT
Section 5.1. The Borough agrees to prepare a manual for operation and maintenance of the
facility which is approved by the Department prior to initiation of operation of the facility.
Section 5.2. The Borough must ensure that a Department approved user charge system is
adopted prior to initiation of operation of the facility.
Section 5.3. The Borough shall initiate operation of the Project Facility immediately upon
completion of construction and may not discontinue operation of the Project Facility without
Departmental approval. One year after the initiation of operation, the Borough must certify to the
Department that the facility is performing up to design standards. The Borough must ensure that
sufficient qualified operating personnel certified by the State of Alaska will be retained to operate
the Project Facility. Nothing contained in this Agreement shall be construed as an obligation or
pledge of the Borough to appropriate or expend general funds and general revenues of the
Borough to operate or maintain the Project Facility.
Section 5.4, The Borough agrees to insure the Project Facility against loss or damage in an
amount at least equal to the eligible project cost specified in Section 1.1(e).
Section 5.5. An insurance policy issued pursuant to Section 5.4 must be written or endorsed to
make losses payable to the Department and the Borough as their interests may appear. The
interests of the Department are limited to the unpaid principal balance of the loan and any
interest accrued as of the date such loan may be paid in full as a result of any insurance payoff,
following destruction or damage to the facility.
Section 5,6. In the event the Borough fails to maintain the full insurance coverage required by
this Agreement, the Department may take out the required policies of insurance and pay the
premiums. All amounts so advanced by the Department will become an additional obligation of
the Borough to the Department.
Section 5.7, The Borough agrees to submit a financial report for the Project Facility for
Departmental approval within one year after initiation of operation of the facility. A project
audit, performed by the Department, will cover the entire multi-year project.
Section 5.8. Financial assistance received tinder this loan agreement is considered federal
assistance and is to be included when determining the threshold amount for a Federal Single
Audit. However, financial assistance received under this loan agreement is not subject to State
Single Audit.
SECTION VI - MISCELLANEOUS PROVISIONS
Ce ti,� on 6.L Any disbursement or repayment made under this Agreement by either party to the
other, shall be delivered by registered or certified mail, postage prepaid, return receipt requested.
or delivered personally, and,
(a) if addressed to the Department, will be sent or delivered personally to:
Alaska Department of Environmental Conservation
Division of Facility Construction and Operation
Alaska Clean Water Fund
410 Willoughby Avenue, Suite 102
Juneau, Alaska 99801
(b) if addressed to the Borough, will be sent to or delivered personally to:
Kodiak Island Borough
710 Mill Bay Road
Kodiak, AK 99615
Section 6.2. Departmental approvals, required by this Agreement will not be unreasonably
withheld.
Section 6.3. This Agreement is made subject to and conditional upon the availability of funds.
e tion 6.4. This Agreement is effective as of the date set forth above and continues in full force
and effect until the final day of the Contract Period.
Section 6.. This Agreement is binding upon the parties specified below, and to any person,
office, or board succeeding either of the parties. This Agreement may not be assigned by the
Borough without written consent of the Department.
Section 6.6. The Department may cancel all or any part of this agreement if:
(a) Any representation or other statement made by the Borough to the Department in
connection with its application for a loan from the Alaska Clean Water Fund is incorrect or
incomplete in any material respect;
(b) The Borough has violated commitments made by it in its Approved Application and
supporting documents, has not adhered to the regulations of the Alaska Clean Water Fund (18
AAC 76), has violated any of the terms of this Loan Agreement; or
(c) The financial position of the Borough has, in the opinion of the Department, suffered
a materially adverse change.
ction 6.7. No portion of this loan amount may be used for lobbying or propaganda purposes
as prohibited by 18 U.S.C. Section 1913 or Section 607(a) of Public Law 96-74.
ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION
By:
Keith Kelton, Director
Division of Facility Construction & Operation
ACKNOWLEDGEMENT
STATE OF ALASKA
First Judicial District
The foregoing instrument was acknowledged before me this cZIX_day of
Notary Public, State of Alaska
My commission expires:
Kodiak Island Borough
M. Selby, Borough
Attest:��^^,•,.cat i43'YI.I-JCT1, G ruc./irAE
Borough Clerk
ACKNOWLEDGEMENT
STATE OF ALASKA
Third Judicial District
�gf„t.i:D a��
The foregoing instrument was acknowledged before me this ____=day of
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r10TARY Z Flotary Public, State of Alaska
PUBLIC y My commission expires: L�