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97-16 Karluk Sanitation Project(/�� 'n, ► 2 �j l�� ' (n�1C/�I7 SK _ /6L W TONY KNOWLES, GOVERNOR DEPT. OF ENVIRONMENTAL CONSERVATIONTelephone: FACILITY CONSTRUCTION AND OPERATION (907) 465-5146 410 WILLOUGHBY AVENUE, JUNEAU, ALASKA 99801 Fax: CERTIFIED MAIL P 532 751 656 (907) 465-5177 July 21, 1997 Mr. Ronald E. Riemer Environmental Engineer Kodiak Island Borough Engineering and Facilities Department 710 Mill Bay Road Kodiak, AK 99615 Dear Mr. Riemer: Enclosed for signature is the loan agreement for the Karluk sanitation project. After all signatures have been obtained, please return the document to the Alaska Clean Water Fund, Division of Facility Construction and Operation, Alaska Department of Environmental Conservation, 410 Willoughby Avenue, Suite 102, Juneau, AK 99801. If you have any questions, please call Mr. Mike Lewis at 269-7616. Sincerely, Mike Burns, Chief Municipal Grants and Loans "Enclosure: ACWF Loan Agreement cc: Mike Lewis, Project Engineer ' Printed on (er ri v : D SEE O ) u t LSK W TONY KNOWLES, GOVERNOR DEPT. OF ENVIRONMENTAL CONSERVATION LA:Department of ALASKA CLEAN WATER FUND AGREEMENTI#�Conservatlon A ADEC LOAN NUMBER 5oWuj KARLUK SANITATION PROJECT THIS AGREEMENT is entered into as of July 21, 1997 by the Alaska Department of Environmental Conservation (the Department) and the Kodiak Island Borough (the Borough), acting pursuant to Resolution 96-24 approved by the Kodiak Island Borough. SECTION I - DEFINITIONS Section 1.1. Except where the context clearly indicates otherwise, terms 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 December 31, 1996, together with all attachments and supporting documentation, as approved by the Department and the Borough. (b) "Contract interest rate" means 3.92 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 $350,000; demolition, construction, and engineering for the Project Facility; machinery, furnishings, and equipment; surveys, plans, estimates, and specifications; necessary insurance; financial and environmental investigations; laboratory testing, resident engineering and inspection fees; force account; legal expenses; and any other necessary miscellaneous expenditures, minus the amount of any grant applicable to foregoing costs. ,�,', printed on �eCYcled pdp2� /'� iJ (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 17, 1996 and described in detail in the project's facility plan. The project will construct a new landfill and access road and clean up the dump, will upgrade sewage collection system and repair beach access road. 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. The Borough must have a lease or permit authorizing construction of the project facility. The Native village of Karluk will obtain a lease or conveyance of all real estate and personal property constituting the Project Facility and the project for the term of this Agreement and prior to the beginning of construction or disbursement by ADEC of any loan proceeds to the Borough. 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. -2- (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. Section 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. Section 3.5 When applicable, the Borough will comply with Title II -Public Services of the 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. Section. 3.6 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 of the facility is readily accessible to and 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 CRF part 101-19.6) or with the Americans with Disabilities Act Accessibility Guidelines for Buildings and Facilities (ADAAG) (Appendix A to 28 CFR Part 36) shall be deemed to comply with the requirements of this section with respect to those facilities, except that the elevator exemption contained at section 4.1.3(5) and section 4.1.5(1)(j) of ADAAG shall not apply. -3- Section 3.7 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. 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 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. -4- 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 $350,000. 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, accruing from the disbursement date. (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. .5- Section 4.7. The Borough agrees that it will separately account for all monies received from the Alaska Clean Water 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 sewer use ordinance and a user charge system are 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. -6- 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 under this loan agreement is not subject to State Single Audit. SECTION VI - MISCELLANEOUS PROVISIONS Section 6.1. 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 99615-6398 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. Section 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 6.5. 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; -7- (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. Section 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. Section 6.8. The Borough may contract with the Native Village of Karluk, a federal corporation chartered under the Indian Reorganization Act, for performance of any of the Borough's obligations under this Agreement including site control, construction, loan repayment, maintenance, operation and audit of the project facility. This provision does not excuse the Borough from responsibility to perform these conditions. Section 6.9. This contract is not intended to provide any benefits or obligations to any individuals or organizations which are not a party to this Agreement. Ka ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION By: =3��1�z Keith Kelton, Director Division of Facility Construction & Operation ACKNOWLEDGEMENT STATE OF ALASKA First Judicial District The foregoing instrument was acknowledged before me this 2 --2 _ day of c 19�� ' ;X11 �lrrG �L4L � � L Notary Public, State of Ala a My commission expires:. -616 KODIAK ISLAND BOROUGH By. r V ACKNOWLEDGEMENT STATE OF ALASKA Third Judicial District n The foregoing instrument was acknowledged before me this�day of ✓�/arnJ��c% 19 p7 itary PublictAOTARY ommission expires: PUBLIC ,Q Introduced by: Requested by: Drafted: Introduced: Adopted: KODIAK ISLAND BOROUGH RESOLUTION NO. 96-24 Mayor Selby Mayor Selby Mayor Selby 08/15/96 08/15/96 A RESOLUTION AUTHORIZING THE MAYOR TO APPLY FOR A LOAN FROM THE ALASKA CLEAN WATER FUND FOR THE KARLUK LANDFILL AND SEWAGE TREATMENT IMPROVEMENTS WHEREAS, the Kodiak Island Borough seeks to obtain the necessary financial assistance to construct a landfill and improve a sewage collection system for the Village of Karluk; and WHEREAS, the State of Alaska Department of Environmental Conservation (the Department) is able to offer funding through the Alaska Clean Water Fund; and WHEREAS, the Kodiak Island Borough wishes to apply for a loan from the Alaska Clean Water Fund; NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT the Kodiak Island Borough is authorized to apply to the Department for a loan from the Alaska Clean Water Fund for the construction of landfill and wastewater treatment improvements. NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT if the loan is approved by the Department, the mayor is authorized to execute any and all documents that may be required by the Department to reflect the indebtedness, the terms of its repayment, and any security therefore, including but not limited to an agreement for the loan and a promissory note. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS FIFTEENTH DAY OF AUGUST, 1996. KODIAK ISLAND BOROUGH M. ATTEST: Gary L. StevVnS, Presiding Officer I'Dn WA bonne F. Smith, CMC/AAE, Borough Clerk Kodiak Island Borough, Alaska Resolution No. 96.24 Page 1 of 1