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FY2008-23 Memorandum of Agreement Between the City of Larsen Bay and the Kodiak Island Borough That Transfers Any Grant Liability Associated with Legislatively Grant 07-DC-324 Cm1rt?dfY 2DO~-;Z3 MEMORANDUM OF AGREEMENT BETWEEN THE KODIAK ISLAND BOROUGH AND THE CITY OF LARSEN BAY REGARDING CITY OF LARSEN BAY MANAGEMENT AND OPERATION OF THE LARSEN BAY EQUIPMENT PROJECT PURPOSE: This Memorandum of Agreement (Agreement) outlines the terms under which the Kodiak Island Borough (the Borough) agrees to authorize the City of Larsen Bay (hereinafter sometimes also referred to as City) to manage the Larsen Bay Equipment Project (hereinafter sometimes referred to as "Project" and the end product as "the Equipment") funded under Grant 07-DC-324, issued by the Department of Commerce, Community and Economic Development (DCCED) (hereinafter sometimes referred to as "Grant Agreement"), attached hereto as Exhibit B and hereby incorporated by reference and consistent with the following: PROJECT TITLE: Larsen Bay Equipment AGREEMENT EFFECTIVE DATE: ~er 11 AGREEMENT COMPLETION DATE: June 30,2011 J.LJo'g ,?)J67 ~ ~L ,~ GRANT TERM: July 1, 2006 - June 30, 2011 GRANT AMOUNT: $70,000 SERVICES: A. KODIAK ISLAND BOROUGH SHALL: 1. Provide grant administration for Grant 07-DC-324 to ensure compliance with grant provisions, including, but not limited to filing all progress and financial reports required by DCCED. 2. Reimburse the City of Larsen Bay for authorized expenditures incurred by the City for the Larsen Bay Equipment Purchase Project in an amount not to exceed that provided for such purpose in the above referenced grant. These costs shall be reimbursed subject to compliance with the Project Budget, and any co. .hC!-ortl lonf "'=Ill""r'\o.nrh~"\.o.n"C" of" tho. Drl""\io.~+ C: I .rI".o.+ ~nrl ~II n+ho.r nrl""\\/ic-inr'\c- "f ~rl"!.t"'\+ v\AtJ.;;Jv'"1U~IU c;u I l'lii;il 1\.Alllvl I"":' I.V \.11'" I IVJvv\. L.lUU~V'" CUI\,A 0.11 VIoI'vl tJ1VY1..,;:)IVllv VI """'CUIL 07-DC-324, issued by the DCCED. B. THE CITY OF LARSEN BAY SHALL: 1. Operate and manage the Project in compliance with the Scope of Work and all other provisions of Grant 07-DC-324 and any subsequent amendments issued by DCCED. Memorandum of Agreement - City of Larsen Bay Equipment -- Page 1 of 6 2. Procure said Equipment for the Larsen Bay Project in compliance with the more stringent of Larsen Bay local ordinances, Kodiak Island Borough or State of Alaska procurement requirements. 3. As ultimate owner of the Equipment to be acquired pursuant to this Agreement, City expressly agrees to comply with the all grant provisions related to its ownership and management of the Equipment, including but not limited to those provisions listed below. The City also acknowledges that the Borough is not responsible for performance of the obligations of the equipment vendor and that the City shall perform all such obligations, and shall hold the Borough harmless from any liability or causes of action arising from ownership and operation of the Equipment. Further, the City and Borough agree as follows - a. Notwithstanding the terms of Article 2 of Attachment C of the Grant Agreement, the Borough and City understand that the Grant Agreement is for the benefit of the parties to it but that the Equipment purchased out of the referenced grant are for the benefit of the City as the City will own the Equipment to be acquired using the grant funds. Further, the City of Larsen Bay, its successors and assigns, will protect, save and hold harmless the State of Alaska, its DCCED, and the Kodiak Island Borough and their respective officers, officials, employees, agents and volunteers, from all claims, actions, costs, damages or expenses of any nature whatsoever by reason of the acts or omissions of the City, it's subcontractors, assigns, agents, contractors, licensees, invitees, employees or any person whomever arising out of or in connection with any acts or activities authorized by the referenced Grant Agreement and/or any activities arising there from or performed in connection therewith. The City further agrees to defend the State of Alaska, its DCCED and the Borough and their authorized agents and employees in any litigation, including payment of any costs or attorney's fees for any claims or actions commenced arising out of or in connection with acts or activities authorized by the referenced Grant Agreement and/or any activities arising there from or performed in connection therewith. This obligation shall not include such claims, costs, damages or expenses which may be caused by the sole negligence of the State of Alaska, its DCCED or the Borough or their authorized agents or employees, provided, that if the claims or damages are caused by or result from the concurrent negligence of (a) the DCCED and/or the State of Aiaska or the Borough and/or their agents or employees, and (b) the City, it's agents or employees, this indemnity provision shall be valid and enforceable only to the extent of the negligence of the City, or the City's agents, employees, officials, officers and volunteers. Memorandum of Agreement - City of Larsen Bay Equipment -- Page 2 of 6 b. In compliance with Attachment C, Article 24, of the Grant Agreement, the City hereby assumes all liabilities arising from the ownership and operation of the Equipment and agrees to hold the DCCED, the State of Alaska and the Kodiak Island Borough harmless from any and all causes of action arising from the ownership and operation of the Equipment and/or use of the grant funds. c. Project will realize the benefits of the referenced Grant and benefit from application of the grant funds. The City hereby grants the Borough all right of access necessary or desirable to the Borough for administering the Grant Agreement and as maybe further required of the Borough by the Grant Agreement. d. The City agrees and warrants that the Equipment shall be dedicated to public purposes. The City agrees that it will be solely responsible for the operation and maintenance of the Equipment or other items acquired under the referenced Grant between DCCED and the Borough. e. All other provisions of the Grant Agreement are incorporated herein by reference and to the extent the Grant Agreement places burdens on the Borough, which burdens are in the Borough's sole discretion more appropriately burdens of the City, the City hereby assumes such burdens. 4. Request prior approval from the Borough and DCCED for any work contracted to a third party and meet all other requirements for third party agreements including but not limited to those contained in Sections C 9, 10 and 11 of this Agreement, all applicable provisions of Grant 07-DC-324 as amended, and the City of Larsen Bay Code of Ordinances. 5. Provide documentation and reports requested by the Borough to ensure compliance with grant provisions. Further, the City agrees that the Department of Commerce and Community Economic Development of the State of Alaska and other authorized representatives of the State of Alaska shall have full access and the right to examine, excerpt, or transcribe any pertinent documents, papers, records, and books or the City, and of persons or organizations with which the City may contract under this Agreement. C. ADDITIONALLY, THE PARTIES AGREE AS FOLLOWS: 1. Grant Agreement No, 07 -DC-324, Larsen Bav Equipment. effective November 14, 2006 is herein incorporated in its entirety by reference. The parties agree th::lt ::III nrnvi~inn~ nf thA ~r::lnt AnrAAmAnt hAtwAAn thA Rnrnllnh ::Inri thA .. .-. -.. ,..... -. .-.-..- -. ...- -. -.... ':;7' --. ..-... --...--., ...- --. --:;7" -..- ...- Department of Commerce, Community and Economic Development (DCCED) are herein incorporated as if enumerated herein. Notwithstanding that the above referenced Grant Agreement is between the State of Alaska and the Kodiak Island Borough, as between the Kodiak Island Borough and the City of Larsen Bay, the City agrees to assume all burdens, duties and obligations (however termed or characterized) ascribed to the Borough as grantee but which arise from, or relate to 1) City's ownership or 2) operation of the Equipment, release Memorandum of Agreement - City of Larsen Bay Equipment -- Page 3 of 6 the Borough from the same, and indemnify, defend and hold harmless the Kodiak Island Borough from all such duties, obligations and burdens. The parties to this Agreement shall cooperate in implementing the terms of the Grant Agreement. 2. Compensation. a. Total Compensation. Unless expressly agreed to in writing by the Borough and City, the maximum payment by the Borough to City for the portion of this Project funded by Grant 07-DC-324 shall be $70,000 or the entire amount of the grant. No administrative fees for managing this grant will be charged against the grant. 3. Manner of Payment. The Borough shall make payments to City as follows: City shall submit invoices for purchase rendered within sixty (60) days of performance of the service or incurring the expense unless an extension is authorized in writing by the Borough Manager. The invoice shall itemize said expenses such as purchase of equipment (including parts and tools), and shipping costs. The Borough may refuse any claim for services or expenses a) made more than sixty (60) days after performance of the service or incurring the expense (without an extension) or b) for the final invoice, made more than fifteen (15) days after the termination date of Grant Agreement. If the Borough objects to any invoices or portions thereof submitted by the City, the undisputed portion shall be paid. 4. Termination. This Agreement may be terminated by either party for any reason, prior to its expiration date on thirty (30) days written notice to the other party however the Borough shall be entitled to terminate this Agreement for its convenience upon seven days notice to City and limit its obligations to the City to amounts earned, incurred or obligated by the City prior to receipt of the termination for convenience notice from the Borough. If Grant 07 -DC-324 is terminated or suspended by DCCED for any reason prior to the termination date in the Grant Agreement, this Agreement shall be terminated on the same date. 5. If this Agreement is terminated for any reason, the Department of Commerce, Community and Economic Development shall be notified in writing addressed to DCCED Grants Section, PO Box 110809, Juneau, Alaska 99811-0809 within ten days of such termination. 6. Indemnity. City agrees to indemnify, defend [with legal counsel approved by Borough], and hold the Borough and its administrators, officers, agents, employees, volunteers and servants and the Department of Commerce, Community and Economic Development and the State of Alaska and its administrators, officers, agents, employees, volunteers and servants harmless from and against any and all claims, demands, actions, losses, expenses, and liabilities for, or related to, loss of or damage to property or injury to or death of any person relating to or arising or resulting in any way from the performance by City or any of its Subcontractors under the Agreement, or the work or services Memorandum of Agreement - City of Larsen Bay Equipment -- Page 4 of 6 provided or the condition or use thereof, regardless of any negligence of the Borough or DCCED, excepting only such loss, damage, injury or death which results solely from the negligence or willful misconduct of the Borough or DCCED or solely from the joint negligence or willful misconduct of Borough or DCCED and a third party directed by Borough or DCCED. This clause shall be read and construed consistent with any other same or similar clause in this Agreement such that the Borough and State derive maximum benefit of defense, indemnity and hold harmless from the City. 7. Third Party Contracts. Prior approval by the Borough and DCCED is required for any work to be contracted to a third party. Any subcontractor shall be bound to every provision of the Grant Agreement and each subcontract shall include a provision that the Borough, DCCED and the State of Alaska are not liable for damages or claims for damages arising from any subcontractor's performance or activities under the terms of the subcontract. 8. Conflict of Interest. No officer, employee or member of the Borough or City or of any subcontractor; no member of the governing body of the jurisdiction in which the project is undertaken or located; and no other official of such locality or localities who exercises any functions or responsibilities with respect to the project during his or her tenure, shall have any personal or pecuniary gain or interest, direct or indirect, in any contract, subcontract or the proceeds thereof, for work to be performed in connection with the project assisted under the Grant 07 -DC-324. 9. Discrimination. City may not discriminate against any employee or applicant for employment because of race, religion, color, national origin, age, physical handicap, sex, marital status, changes in marital status, pregnancy or parenthood. City shall post in a conspicuous place, available to employees and applicants for employment, a notice setting out the provisions of this paragraph. a. The City shall state, in all solicitations or advertisements for employees to work on this project (a state funded project), that it is an equal opportunity employer (EEO) and that all qualified applicants will receive consideration for employment without regard to race, religion, color, national origin, age, physical handicap, sex, marital status, changes in marital status, pregnancy or parenthood. b. The City shall include the provisions of this Discrimination article in every contract relating to this Agreement and the Borough's Grant Agreement from which this Agreement is derived, and shall require inclusion of these provisions in every agreement entered into by any of its contractors, so that those provisions will be binding upon each contractor or subcontractor. Memorandum of Agreement - City of Larsen Bay Equipment -- Page 5 of 6 10. Compliance with Laws. City agrees to comply with all applicable federal, state and local laws and regulations. 11. Audit. The City agrees that it is bound to, and subject to, all terms of the incorporated "Appendix A Audit Regulations" and "Appendix B Audit Compliance Supplement" to the Grant Agreement. 12. Law and Venue. The law of the State of Alaska shall govern this Agreement. Venue for any legal proceeding relating to this Agreement shall be in the Superior Court in Kodiak, Alaska. 13. Notice. Unless otherwise provided herein, any notices or other communications required or permitted by this Agreement to be delivered to the Borough or City shall be in writing and shall be considered delivered when personally delivered to the party to whom it is addressed, or in lieu of such personal delivery, when deposited in the United States mail, first class certified mail with return receipt requested, postage prepaid, addressed to the Borough or City at the address set forth below: Kodiak Island Borough Attn: Borough Manager 710 Mill Bay Road Kodiak, Alaska 99615 City of Larsen Bay Attn: Mayor PO Box Larsen Bay, Alaska 99624 14. Entire Aqreement. This Agreement constitutes the entire agreement between the Borough and City as to the matters stated herein. It supersedes all prior oral and written understandings and agreements as to such matters. It may be amended, supplemented, modified or canceled only by a duly executed written instrument. It shall bind the Borough and City, its successors, executors, administrators, assigns and legal representatives. DATED the day and year last written below. d . / /10 _.(;;:<?~C 0~~c.' / iI2S,~2r Ric~d, Manager ( Date Kodiak Island Borough ~( ATTEST: Cle'k7 nrf1 ' : VI"'-/~ / ,/Ob)6) Date Memorandum of Agreement - City of Larsen Bay Equipment -- Page 6 of 6 I i Article 22. I Article 23. Article 24. Article 25. Article 26. Article 27. Article 28. A rticJe 29. He,' 9/]()(J.j Disputes Except as otherwise provided in this agreement, any dispute concerning a question of fact arising under this agreement that is not disposed of by mutual agreement shall be decided by the Department, which shall reduce its decision to writing and mail, or otherwise furnish a copy thereof, to the Grantee. The decision of the Depamnent shall be fmal and conclusive. This "Disputes" clause does not preclude the consideration of questions of law in connection with the decision provided for in the preceding paragraph provided that nothing in the Grant Agreement shall be construed as making fmal the decisions of any administrative official, representative, or board on a question of law. Jurisdiction This Grant Agreement shall be governed by the laws and statutes of the State of Alaska. The venue of any suit hereunder may be in the Superior Court for the First Judicial District, Juneau, Alaska. Ownership of Project/Capital Facilities The Department makes no c1.aim to any capital facilities or real property improved or constructed with funds under this Grant Agreement and, by this grant of funds, does not and will not acquire any ownership interest or title to such property of the Grantee. The Grantee shall assume all liabilities arising from the ownership and operation of the project and agrees to hold the Department and the State of Alaska hannless from any and all causes of action arising from the ownership and operation of the project. Site Control If the grant project involves the occupancy and use ofreal property, the Grantee assures that it has the legal right to occupy and use such real property for the purposes of the grant, and further that there is legal access to such property. Insurance The Grantee is responsible for obtaining any necessary liability insurance. In addition, the Grantee shall provide and maintain Workers' Compensation Insurance as required by AS 23.30 for all employee s engaged in work under this Grant Agreement. The Grantee shall require any contractor to provide and maintain Workers' Compensation Insurance for its employees as required by AS 23.30. Subcontracts for Engineering Services In the event that the Grantee subcontracts for engineering services, the Grantee wi II require that the engineering firm cenify that it is authorized to do business in the State of Alaska. In the event that the engineering firm is also the project administrator, the Grantee shall require that the bond or Insurance shall be for not less than the amount of the entire project. Governing law This Grant Agreement is governed by the laws of the State of Alaska. The Grantee shall perform all aspects of this project in compliance with the appropriate laws and regulations. It is the responsibility of the Grantee to ensure that all penn its required for the construction and operation of this project by the Federal. Stale, or Local governments have been obtained. Budget Flexibility Notwithstanding the provisions of Article II, Attachment C, the Grantee may revise the project budget in Attachment A without a formal amendment to this agreement. Such revisions are limited within each line item to a maximum of ten percent (10%) of the line item or $ J 0,000, whichever IS less, over the entire term of this agreement Such budget revisions shall be limited to changes to existing budget line items. Budget revisions may not be used to increase any budget item for project administrative expenses Changes to the budget beyond the limits authorized by this provision may only be made by a fonnal amendment to this agreement. Des/maled Lerrs/alIVe Grant Agreement Allachmenl C Page .J of (~ ~~.. RECEIVEr;~ NOY - 9 2006 Alaska Dept cf COr;iiri2,CE, Div of COrllm Uliitv i, r;\'Uc;iC'. Designated Legislative GraritrProgpami' Grant Agreement G ....\ -i.:> C 'b ry,q Grant Agreement Number 07-Dc-J24 Collocation Code(s) 8]79562 Grantee Amount of State Funds $70,000.00 Project Title '~lliijsenmlrmu{ment ,F Department Contact Person Encumbrance Number/ARJLapse Date 1 ] 0492 1 6/30/20 II Name Name K.odiak Island Borou h Street/PO Box 710 Mill Ba Road City /S tate/Zip K.odiak AK 998] 6 Contact Person Rick Gifford, Borou _ Robin Park Title 907 -486-9343 907-486-9394 465-4731 465-5867 AGREEMENT The Alaska Department of Commerce, Community and Economic Development, Division of Community Advocacy (hereinafter 'Department') and Kodiak Island Boroul!h (hereinafter 'Grantee') agree as set forth herein. Section 1. The Department shall pay the Grantee for the performance of the project work under the terms outlined in this agreement. The amount of the payment is based upon project expenses incurred, which are authorized under this Agreement. In no event shall the payment exceed $70,000.00. Section II. The Grantee shall perfonn all of the work required by this Agreement. Section III. The work to be performed under this agreement begins Julv 1. 2006 and shall be completed no later than June 30, 20]] . Section IV. The agreement consists of this page and the fa " ,S\..t,l:l) b, ATTACHMENTS '+- "'0. ' ,,,'~..y-O Attachment A: Scope of Work i;. ~ *.,!'ep~ql A: J. Project Description ;g . \,~, ~ t~'~~pperig1x,: 2. Project Budget \ t, .. : r/;:;;;1~'.Appendix 2: 3. Pro~ect Narrative . ..4.:~_ll"'I\';L~'AJP~nd!x: 4. Project ManagemenURepo ng ~'v-...._ "AppendIx : 5. Fonns Packet , '-l:-.,,'> Attachment B: Payment Method ~pendi E: Attachment C: Standard Provisions " "",J -"', ":~71X F: "4SttA.'" ~~/ AMENDMENTS: Any fully executed amendments to th~'. Agreement Grants Administrator Street/PO Box PO Box il 0809 City/State/Zip Juneau, AK 9981 ] -0809 Phone Fax Phone APPENDICES Audit Regulations Audit Compliance Supplement Indemnity and Insurance State Laws and Regulations Special Requirements and Assurances for Federally Funded Projects (ifapplicabie) Site Control State Fire Marshai Review Department Date Printed Name and Title Melanie Greer, Grants Administrator III G...-e.-- II/T'1/~ r- I 4. Project ManagementlReporting This proj eet will be managed by the Grantee. If the Grantee is a City, signatory authority for execution of the Grant Agreement and subsequent amendments is granted to the Mayor. The Mayor may delegate signatory authority for executing the Grant Agreement and amendments to others within the City government via the Signatory Authority Form. The Mayor may also designate financial and progress reporting authority via the Signatory Authority Form. Such delegation is limited to others within the City government, unless otherwise approved by the Department. If the Grantee is not a City, signatory authority for execution of the Grant Agreement and subsequent amendments is granted to the Chief Executive Officer (CEO). The CEO may delegate authority for executing the Grant Agreement and amendments to others within the Grantee's organization via the Signatory Authority Form. The CEO may also designate financial and performance progress reporting authority via the Signatory Authority Form. Such delegation is limited to others within the Grantee's organization unless otherwise approved by the Department. The Grantee must establish and maintain separate accounting for the use of this Grant. The use of Grant funds in any manner contrary to the terms and conditions of this Grant Agreement may result in the subsequent revocation of the grant and any balance of funds Wlder the grant. It may also result in the Grantee being required to return such amounts to the State. The Grantee shall submit a Designated Legislative Grant FinanciallProgress Report Form (see attached) each month, or quarterly, with the concurrence of the Department, during the life of the Grant Agreement. Grant Financial/Progress Report Forms are due fifteen (15) days after the end of the month or quarter being reported. The report period is the first of the month through the last day of the month. If quarterly reporting is approved, the report period is the first day of the first month through the last day of the third month of the quarter. The final Financial/Progress Reports must be submitte~ within thirty (30) days following completion of the project. Under no circumstances will the Department release funds to the Grantee unless all required reporting is current. 5. Grant Forms Packet The following page, which includes the Designated Legislative Grant Financial/Progress Report Form, is to be used by the Grantee for monthly/quarterly reporting. Additional copies of this form are available from the Department, electronically or in hard copy. 11m, f;/?nn:, r,..~.__.~._.J I __:..I..~_ r' Attachment B Payment Method l I ; 1. AdvancelReimbursement Payment Upon full execution of this Grant Agreement, a State treasury warrant in an amount not to exceed 20% may be released upon request. Additional State treasury warrants will be released on a reimbursement basis upon receiving and approving a Grantee's financial/progress reports. The Department will reimburse the Grantee for costs incllrred during the reporting period, in accordance with this Grant Agreement. The Department will not reimburse without approved financial/progress reports, prepared and submitted by the Grantee on the form provided in Attachment A. Before approving the financiaVprogress report for payment, the Department may require the Grantee to submit documentation of the costs reported (e.g., vendor billings, signed timesheets, invoices) Should earned payments during the tenns of this Grant Agreement be insufficient to recover the full amount of the advance, the Grantee will repay the unrecovered amount to the Department when requested to do so by the Department, or at tennination of the Grant Agreement. 2. Direct Vendor Payment In some instances the Department may authorize the use of direct payments to specified vendors for large purchases. Direct vendor payments will be authorized only when, in the judgment of the Department, the Grantee is unable to secure the purchases through cost reimbursable means. Before a direct vendor payment can be considered for authorization, the Grantee must submit a "Request for Direct Vendor Payment" fonn that identifies the name of the vendor to be paid directly; the vendor's address; the vendor's federal tax identification number; and the amount of the payment. This form must be accompanied by (]) an executed purchase agreement between the Grantee and the vendor, and (2) an original invoice that identifies specifically the goods or services for which payment is being requested. The agreement must identify all lenns and conditions of the purchase and include a complete materials list and an acceptable shipment date. The Department will authorize prepayment of not more than 50% of the total cost identified in an approved purchase agreement between the Grantee and the vendor for those goods and services provided in advance of delivery to the Grantee. The Department may authorize full payment to vendors whose goods/services have been provided prior to or at the time the request for direct payment is received from the Grantee. When a prepayment of up to 50% has been made, the Department will authorize the balance due against the purchase agreement afterthe following conditions have been met: a. The goods/services have been delivered to the Grantee; b. The Grantee has conducted an inventory and submitted to the Department a certification of acceptability along with a complete "Request for Direct Vendor Payment"' fonn: c. The Grantee has submitted an original invoice from the vendor for the balance dUe. Any direct vendor payment authorized during a report period will be refiected on the Grantee's Financial/Progress Report for that month in the Direct Vendor Payments mVf) Paid This Period column across from the appropriate cost category. The "Request for Direct Vendor Payment" form can be obtained from the Department electronica!ly or in hard copy. 3. Withholding ofTen Percent (IOIYlI) The Department may withhold ten percent (10%) of the amount in Section f until the Department detennines that the Grantee has satiSfactorily completed the terms of this grant agreement. including all requIred reporting and submission of photographs of the project. Re\'. 6/;!(}05 D,'slgllaled Le{[ls/allve Gram Agreemenl ,II/achmenr tJ-.\/IIIl/c/pailli I'age / of! Article 1. Article 2. Article 3. Article 4. Article 5. Article 6. Article 7. Rev 9/200./ Attachment C Standard Provisions l I I I Definition "Department" refers to the Department of Commerce, Community and Economic Development with the State of Alaska. lndemn ifieation It is understood and agreed that this Grant Agreement is solely for the benefit of the panies to the Grani Agreement and gives no right to any other party. No joint venture or partnership is formed as a result of the Grant Agreement. The Grantee, its successors and assigns, will protect, save, and hold harmless the Department and the State of Alaska and their authorized agents and employees, from all claims, actions, costs, damages, or expenses of any nature whatsoever by reason of the acts or omissions of the Grantee, its subcontractors, assigns, agents, contractors, licenses, invitees, employees, or any person whomever arising out of or in connection with any acts or activities authorized by this Grant Agreement. The Grantee further agrees to defend the Department and the State of Alaska and their authorized agents and employees in any litigation, including payment of any costs or attorney's fees for any claims or actions commenced thereon arising out of or in connection with acts or activities authorized by this Grant Agreement. This obligation shall not include such claims, costs, damages, or expenses which may be caused by the sole negligence of the Department of the State of Alaska or their authorized agents or employees, provided, that if the claims or damages are caused by or result from the concurrent negligence of (a) the Depanment and the State of Alaska and their agents or employees, and (b) the Grantee, its agents or employees, this indemnity provision shall be valid and enforceable only to the extent of the negligence of the Grantee., or Grantee's agents or employees. Legal Authority The Grantee certifies that it possesses legal authority to accept grant funds under the State of Alaska and to execute the project described in this Grant Agreement by signing the Grant Agreement document. The Grantee's relation to the Department and the State of Alaska shall be at all times as an independent Grantee. Waivers No conditions or provisions of this Grant Agreement can be waived unless approved by the Department in writing. The Department's failure to insist upon strict perfonnance of any provision of the Grant Agreement, or to exercise any right based upon a breach thereof, or the acceptance of any performance during such a breach, shall not constitute a waiver of any right under this Grant Agreement. Access to Records The Department and duly authorized officials of the State of Alaska shall have full access and the right to examine, excerpt, or transcribe any peninent documents, papers, records, and books of the Grantee. and of persons or organizations with which the Grantee may contract, involving transactions related to the project and 'this Grant Agreement. Reports The Grantee, at such times and in such fonns as the Department may require, shall furnish the Depanment with such periodic reports as it may request penaining to the activities undertaken pursuant to this Grant Agreement, including the final close-out report, the costs and obligations Incurred in connection therewith, and any other matters covered by this Grant Agreement. Retention of Records The Grantee shall retain financial and other records relating to the performance of this Grant Agreement for a period of three years from the date when the final financial status report is submitted to the Depanment, or unti I fmal resolution of any audit findings, claims, or litigation related to the grant. DeslR"O/ed Leg/slalll'e Grant Aweemenl Auaclrmenr (' l'af'P I nf ( Article 8. Assignability Article 9. Article 10. Article 11. Article 12. Article 13. Article 14. fie1 9/2004 The Grantee shall not assign any interest in this Grant Agreement and shall not transfer any interest in the same (whether by assignment or notation). Financial Management and Accounting The Grantee shall establish and maintain a financial management and accounting system that confonns to generally accepted accounting principles. Program Income Program income earned during the award period shall be retained by the Grantee and added to the funds committed to the award and used for the purpose and under the conditions applicable to the use of award funds. Amendments and Modifications The Grantee or the Department may request an amendment or modification of this Grant Agreement However, such amendment or modification shall not take effect until approved, in writing, by the Department and the Grantee. Record keeping The Grantee agrees to keep such records as the Depanment may require. Such records will Include information pertaining to grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays and income. They will also include infonnation pertaining to project perfonnance and efforts to comply with the provisions of the Grant Agreement. Obligations Regarding Third-Party Relationships None of the Work specified in this Grant Agreement shall be contracted by the Grantee without prior approval of the Department. No permission for subcontracting shall create, between the Department or the State of Alaska and the subcontractor, any contract or any relationship. The Grantee shall remain fully obligated under the provisions of this Grant Agreement notwithstanding its designation of any third party or parties of the undenaking of all or any part of the project described herein. Any subcontractor that is not the Grantee shall be required by the Grantee to comply with atl the provisions of this Grant Agreement. The Grantee shall bind all subcontractors to each and every applicable Grant Agrt:emenl provision Each subcontract for work to be performed with funds granted under this Grant Agreement shall specifically include a provision that the Department and the State of Alaska are not liable for damages or claims from damages arising from any subcontractor's perfonnance or activities under the temlS of the subcontracts Conflict of Interest No officer or employee of the Department; no member, officer. or emplo~ee of the Grantee or its deSignees or agents; no member of the governing body of the jurisdiction in which the project is undenaken or located; and no other official of such locality or localities who exercises any fUnCtions or responsibJillies With respect to the project during his or her tenure. shall have any personal or pecuniary gain or interest. direct or indirect. in any contract. subcontract. or the proceeds thereof. for work to be performed in connection with the prOject assisted under this Grant Agreement. The Grantee shall incorporate. or cause to incorporate, in all such contracts or subcontracts, a ProVISion prohibiting. such interest pursuant to the pUrpose of this provision L1esI!!nalcd Le/ilsia/(\,r (iran! .-l!?reemenl AI/achm('nf c' Jjno," J "J I I I I I I i ! I I I I I I I I Article 15. Political Activity Article 16. Article 17. Article 18. Article 19. Article 20. Article 21. Re\' 9/200.; No portion of the funds provided hereinunder shall be used for any partisan political activity or to further the election or defeat of any candidate for public office or influence the approval or defeat of any ballot issue. Notices The Grantee shall comply with all public notices or notices to individuals required by applicable state and federal laws and shall maintain a record of this compliance. Prohibition Against Payment of Bonus or Commission The assistance provided under this Grant Agreement shall not be used in payment of any bonus or commission for the purpose of obtaining approval or concurrence under this contract provided, however, that reasonable fees of bona fide technical consultant, managerial, or other such services, other than actual solicitation, are not hereby prohibited jf otherwise eligible as project costs. Termination by Mutual Agreement This Grant Agreement may be terminated, in whole or in part, prior to the completion of contract project activities when both parties agree that continuation is not feasible or would not produce beneficial results commensurate with the further expenditure of funds. The Department will determine whether an environmental review of the cancellation is required WIder State andlor Federal law. The parties must agree on the termination conditions, including effective date and the portion to be terminated. The Grantee shall not incur new obligations for the terminated portion after the effective date, and shall cancel a<; many outstanding obligations as possible. The Department shall make funds available to the Grantee to pay for allowable expenses incurred before the effective date of tennination. Termination for Cause If the Grantee fails to comply with the terms of this Grant Agreement, or fails to use the grant for only those purposes set forth herein, the Department may take the following actions: A. Suspension - After notice in writing by certified mail to the Grantee. suspend the grant and withhold any further payment or prohibit the Grantee from incurring additional obligations of grant funds. pending corrective action by the Grantee or a decision to tennirate. Response must be received withm fifteen (15) days of receipt of the wrinen notice. B. Termination - Terminate the grant in whole or in part. at any time before the linal grant payment is made. The Department shall promptly notify the Grantee in writing of Its delerminatlonlO terminate. lhe reason for such termination. and the effective date oflhe tenninatlon. Payments made to the Grantee or recoveries by the Department shall be in accordance with the legal TIghts and liabihtles of the panles. Withdrawal of Funds In the event fundang from the state. federal. or other sources is withdrawn. reduced. or Iamlted In an~' way after the effective date of this Grant Agreement and prior to normal completion. the Depanment may tenninate the agreement. reduce funding, or re-negotiate subject to those new funding Iamltallons and conditions. A tennmation under this article shall be implemented under the same conditIOn!; as J termination under Article 19 of this Anachment. Recovery of Funds In the event of a default or violation of the terms of the Grant Agreement by the Grantee. the Department may institute actions to recover all or part of the project funds paid to the Grantee Repayment by the Grantee of grant funds under this recovery provision shall occur Within thany (30) days of demand All remedies conferred on the Department by this agreement or an~ other Instrument or agreement are cumulative. nOl exclusive. and may be exercised concurrently or conseculively at the Department's optIOn. /)esl~led Lel!/siallYe Grant Aj!reemenl AI/achmenl C IJ,~ _. _ ~ f" Article 30. Article 31. Article 32. Article 33. Article 34. Articie 35. Rev 9/200-1 Equal Employment Opportunity (EEO) The Grantee may not discriminate against any employee or applicant for employment because of race, religion, color, national origin, age, physical handicap, sex, marital status, changes in marital status, pregnancy or parenthood. The Grantee shall post in a conspicuous place, available to employees and applicants for employment, a notice setting out the provisions of this paragraph. The Grantee shall state, in all solicitations or advertisements for employees to work on state funded projects, that it is an equal opponunity employer (EEO) and that all qualified applicants will receive consideration for employment without regard to race, religion, color, national origin, age, physical handicap, sex, marital status, changes in .marital status, pregnancy or parenthood. The Grantee shall include the provisions of this EEO article in every contract relating to this Grant Agreement and shall require the inclusion of these provisions in every agreement entered into by any of its contractors, so that those provisions will be binding upon each contractor or subcontractor. Public Purposes The Grantee agrees that the project to which this Grant Agreement relates shall be dedicated to public purposes for its useful life. The benefits of the project shall be made available without regard to race, religion, color, national origin, age, physical handicap, sex, marital status, changes in marital status, pregnancy or parenthood. If the Grantee is a non-municipal entity and if monies appropriated under this grant constitute the sole or principal funding source for the acquisition of equipment or facilities, the Grantee agrees that in the event a municipal corporation is formed which possesses the power and jurisdiction to provide for such equipment or facilities, the Grantee shall offer, without compensation, to transfer ownership of such equipment or facilities to the municipal corporation. If the Grantee is a non-profit corporation that dissolves, the assets and liabilities from the grant project are to be distributed according to statutory law, AS 10.20.290-10.20.452. Operation and Maintenance Throughout the life of the project, the Grantee shall be responsible for the operation and maintenance of any facility, equipment. or other items acquired under this gran!. Assurance The Grantee shall spend monies awarded under this grant only for the purposes specified in this Grant Agreement. Current Prevailing Rates of Wage Certain grant projects are constrained by the provisions of AS 36. PUBLIC CONTRACTS To the extent that such provisions apply to the project which is the subject of this Grant Agreement. the Grantee shall pay the current prevailing rates of wage to employees as required by AS 36.05.0 I 0 The Grantee also shall require any contractor to pay the current prevailing rates of wage as reqUIred by AS 36.05.0 10. Severa bili ty If any provision under this Grant Agreement or its application to any person or circumstance is held invalid by any coun of rightful jurisdiction, this invalidity does not affect other provisions of the contract agreement which can be given effect without the invalid provision. DeSI~led Le~{slQ/lI'l! Gram ,.j l!reemenl Arwrnmpn, (' I' Article 36. Article 37. Article 38. Article 39. Article 40. ReI' 9/2004 Performance The Department's failure to insist upon the strict performance of any provision of the Grant Agreement or to exercise any right based upon breach thereof or the acceptance of any perfonnance during such breach, shall not constitute a waiver of any rights under this Grant Agreement. Sovereign Immunity If the Grantee is an entity which possesses sovereign immunity, it is a requirement of this grant that the Grantee irrevocably waive its sovereign immunity with respect to state enforcement of this Grant Agreement. The waiver of sovereign immunity, effected by resolution of the entity's governing body, is herein incorporated into this Gral1t Agreement. Audit Requirements The Grantee shall comply with the audit requirements established by 02 AAC 45.0 I 0, set forth in Appendix A of this Grant Agreement. Close-Out The Department will advise the Grantee to initiate close-out procedures when the Department detennines, in consultation with the Grantee, that there are no impediments to close-out and that the following criteria have been met or soon will be met: A. All costs to be paid with grant funds have been incurred with the exception of close-out costs and any unsettled third-party claims against the Grantee. Costs are incurred when goods and services are received or contract work is perfonned. B. The last required perfonnance report has been submitted. The Grantee's failure to submit a repon will not preclude the Department from effecting close-out if it is deemed to be in the State's interest. Any excess grant amount that may be in the Grantee's possession shall be returned by the Grantee in the event of the Grantee's failure to finish or update the repon. C. Other responsibilities of the Grantee under this Grant Agreement and any close-out agreement and applicable laws and regulations appear to have been carried OUI satisfactorily or there IS no further State interest in keeping the grant open for the purpose of securing perfonnance. Americans with Disabilities Act The Americans with Disabilities Act (ADA) prohibits discrimination against persons with disabilities. Title I of the ADA prohibits discrimination against persons with disabilities in employment and provides that a reasonable accommodation be provided for applicants and employees. Title 11 of the Act prohibits public agencies from discriminating against individuals with disabilities In the provision of services. programs, or activities. Reasonable accommodation must be made to ensure or allow access to all serVices, programs. or activities. This section of the Act includes physical access to public facilities and requIres that public entities must, if necessary, make modifications to their facilities to remove phYSical baITIers to ensure access by persons with disabilities. All new construction must also be accessible to persons with disabililies. ^ public entity's subgrantees or contractors must also comply with the ADA provisions. Grantees arc responsible for assuring their compliance with the ADA. DeSignated Lef{lslaltve Gran! Af{reement Altarnml'l1f C Pro"" ,: .,f I,. I I I I Appendix A Audit Regulations (Chapter 45. Grant Administration) 2 AA C 45.010. AUDIT REQUIREMENTS (a) As part of the fmancial infonnation required under AS 37.05.030, a state agency that enters into a financial assistance agreement to provide financial assistance to an entity shall, in coordination with any other state agency providing financial assistance to that entity, require that entity to submit to the Department of Administration through the state coordinating agency an audit of the recipient entity if that entity is subject to an audit under this section. The audit must be conducted and submitted as described in this section. In order to ensure compliance with this subsection, a state agency must include the audit requirements of this section in any financial assistance agreement subject to this subsection. (b) An entity that expends financial assistance with a cumulative total of $300,000 or more during the entity's fiscal year shall submit an audit report for the audit period to the state coordinating agency, by (1) the earlier of (a) 30 days after the entity receives its audit report for the audit period; or (b) nine months after the end of the audit period; or (2) a later date than the date calculated under (J) of this subsection, if (a) the state agency that provides the financial assistance agrees to the change of date; and (b) the agreement under (a) of this paragraph is made in (i) writing; and (ii) advance of the date calculated under (I) of this subsection, (c) An audit required by this section must be conducted by an ind'ependent auditor, according to the following audit standards effective at the time of review for the audit period. (1) Government A uditrng Standards, 1994 revision adopted by the comptroller general of the United States; or (2) Generally accepted auditing standards. as accepted by the American Institute of Certified Public Accountants jf effect as of January 1, 1998 for the type of entity being audited; or (3) State of Alaska Audit Guide and Compliance Supplement for State Single Audits. May 1998 revision. prepared by the state coordinating agency, (d) The audit required under this section must repon on the following: ()) The system of internal controls of the entity and the auditor's identification of reportable conditions and material weaknesses of the entity, using the applicable standards set out in (c) of this section; (2) the entity's compliance with applicable state statutes and regulations and applicable financial assistance agreements affecting the expenditure of the financial assistance; the report must identify findings and known questioned costs that exceed $1.000 in the aggregate for all transactions of expenditures tested for the financial assistance being audited; (3) the entity's financial statements; and (4) the schedule of state financial assistance, (e) As part of the audit report required under this section, the entity must provide ( I) written comments on an)' (A) fmdings; (B) known questioned costs: (c) reportable conditions, including material weaknesses; and (D) recommendations con tamed in the audit report; (2) the entity's plan for corrective action. if any findings are identified or any recommendations are made in the audit repon;(]) the status of the emity's implementation of any plans for corrective actions related to (A) the audit reports required under this section for the fiscal year before the audit period: and (8) unresolved findings of audit reports required by this section for audit periods before those specified in (A) of th IS paragraph: and (4) a written explanation of the reasons why corrective action will not be taken if the entity does not Intend to take correcllve action on the fmdings and recommendations in any audit report required by this section, (f) An audit report required under this section need not evaluate the effectiveness of a program funded by state fmancial assistance, However, a program evaluation or financial monitoring may be conducted by the state agency or requested of the entity by the state agency that entered into the financial assistance agreement. (g) An audit required by this section must cover either (I) the entire operations of the entlly: or (:2) the program of the entity for which financial assistance was expended, if (A) the entity receives fmancial assistance from onl:. one state program of a state agency; and (8) the entity does not expend the financial assistance being audited. for Indirect costs, including allocations of indirect costs, Re\, 5/2005 [)pt,r:rnn/prl / nOI"')"""" ,r:......._. .'__ (h) An entity shall provide the state coordinating agency with sufficient copies of eacu audit report to allow submission of a copy to each state agency providing financial assistance to the entity. The state coordinating agency shall detennine if auditing standards have been met and shall forward a copy of the audit to the Department of Administration, upon request, and other appropriate state agencies. The state coordinating agency shall coordinate the assignment of the resolution to one state agency, if the exceptions concern more than one state agency. The applicable state agency providing financial assistance to the entity must meet its responsibilities under other law for ensuring compliance with the audit report. (i) Unless additional audit requirements are imposed by state or federal law, a state agency that provides financial assistance to an entity shall accept the audit required by this section in satisfaction of any other audit requirement. If additional audit work is necessary to meet the needs of a state agency, the audit work must be based on audits required by this section. Nothing in this subsection authorizes a state agency to seek payment from the entity for the additional audit work. U) A third party that receives financial assistance through an entity, in an amount described in this section, is subject to the applicable requirements of this section. An entity that disburses $300,000 or more in state fmancial assistance to a third party shall ensure that the third party complies with the requirements of this section. That entity shall also ensure that appropriate corrective action is taken within six months after a third party's noncompliance with an applicable state statute or regulation, or financial assistance agreement, is disclosed. (k) Repealed 7/1/98. (I) For purposes of this section, if an entity has not identified its fiscal year, that entity's fiscal year is July I through June 30. (m) Financial assistance in the following fonn is not included when calculating whether an entity meets the threshold monetary requirement under (b) of this section: (I) state revenue sharing and municipal assistance money provided under AS 29.60.0 I 0 _ 29.60.3 75; (2) amusement and gaming tax money provided under AS 43.35.050; (3) aviation fuel tax money provided under AS 43.40.010; (4) electric and telephone cooperative gross revenue tax refunds provided under AS 10.25.570; (5) alcoholic beverage license fee refunds provided under AS 04.11.610; (6) fisheries tax refunds provided under AS 43.75.130. (n) Financial assistance in a fonn listed in (m) of this section is not exempt from compliance testing if the entity meets the threshold monetary requirement under (b) of this section. (0) Repealed 7/1/98. History - Effective 8/1/85, Register 95; am 6/29/90, Register 114: am 7/1/98, Register 1.:16. Authority: AS 37.05.020 AS 37.05.030 AS 37.05.190 2 AAC 45.060. EXTERNAL QUALITY REVIEW OF AUDIT ORGANIZA nON The state coordinating agency may only accept an audit under this section. if that orr;anll..alion has submllted to the state coordinating agency a copy of the organization's most recent external quality review repon that meets the standards described in 2 AAC 45.010(c)(l) and en History - Effective 7/1/98. Register 146 Authority: AS 37.05.020 AS 37.05.030 AS 37.05.190 2 AAC 45.070. APPLICABILITY (a) The amended version of this chapter, effective July I, 1998, applies to an audit for an audit period that beginS or continues after June 30, 1998. (b) An entity may agree to be subject to the provisions of the amended version of thiS chapter. effective July I. 1998, for an audit period beginnmg on or after July I, 1997 and ending on or before June 30. Ilflfg. by voluntarily submitting an audit that complies with those provisions. History-Effective7/1/98. Register 146. Authority: AS 37.05.020 AS 37.05.030 AS 37.05.190 Rev 5/2005 lJe.rrmolcd LeJ!Jsiarrve (irant AP'Tppmp'H ~nn.P"".,r,y .1 2 AAC 45.080. EXEMPTIONS FROM FINANCIAL ASSISTANCE (a) For purposes of this chapter, "financial assistance" does not include the following: (1) public assistance provided lUlder AS 47; (2) goods or services purchased for the direct administration or operation of state government; (3) moneys advanced to an entity under one or more state loan programs; (4) power cost equalization payments made to an electric cooperative on behalf of its customers; (5) scholarships, loans, or other tuition aid provided to students, but paid to an education institution on their behalf. (b) In addition to the exemptions set out in (a) of this section, for a third party. "financial assistance" does not include goods purchased from the third party for direct administration or operation of the entity that received financial assistance, History - Effective 7/1/98, Register 146, Authority: AS 37.05.020 AS 37.05.030 AS 37.05.190 2 AAC 45.090. DEFINITIONS For purposes of this chapter, unless the context otherwise requires, (I) "audit period" means the entity's fiscal year in which the entity expended state financial assistance; (2) "entity" does not include the University of Alaska or any other state agency; (3) "financial assistance" means state grants, contracts, provider agreements, cooperative agreements, and all fonns of state financial assistance to an entity; "financial assistance" includes all forms of state financial assistance provided through an entity to a third party; (4) "known questioned costs" means those questioned costs specifically identified by the auditor in the audit conducted under this chapter; (5) "state coordinating agency" means the Office of Management and Budget (OMB), Office of the Governor, or OMB's designee. History - Effective 71l /98, Register 146. Authority: AS 37.05.020 AS 37.05.030 AS 37.05.190 Rei', 5/2005 !)p~'cPnnIPA I PrY,('ln",,~ r...,...., .(............._.._. 04___...J. , I I I I Appendix B Audit Compliance Supplement Designated Legislative Capital Grant Program 1. Program Objectives Authorized under Alaska Statute 37.05.315,37.05.316,37.05.317, these grants are made at the discretion of the Legislature The Grants are designated by the Legislature to provide for a specific project or activity to a specific entity. 2. Program Procedures Following enactment of the authorizing legislation, the Department .then executes a grant agreement according to the appropriate statute with the entity and specifies the project to be undertaken. 3. Compliance Requirements and Suggested Audit Procedures There are no specific grant regulations governing the administration of these grants. All compliance requirements and suggested audit procedures must be based upon specific provisions of the grant agreement. A. TYPES OF SERVICES ALLOWED AND UNALLOWED Compliance Requirement · Grant funds can be expended for a variety of purposes as provided for in the authorizing legislation and as specified in the grant agreement. SUl!l!ested Audit Procedures · Test expenditures and related records. B. Eligibility · The auditor is not expected to make tests for recipient eligibility C. Matching Level of Effort Compliance The Grantee is required to submit monthly or quarterly fmancial and progress reports, as specified in the Gran! Agreement. Compliance Requirement · Any matching, level of effort and/or eannarking requirements will be identified and established In the grant agreement. SUl!l!ested Audit Procedures · As appropriate, review the grant agreement, identify the types and amounts of match required and review the grantees accounting records to verify that the amount of match reported was provided D. Reporting Requirements Compliance Requirement · The grant agreement will specify the reporting requirements to which the grantee must adhere to SUl!1!ested Audit Procedures · Examine copies of reports and detennine completeness, accuracy, and timeliness of submiSSIOn · Trace datil in selected reports to underlying documentation E. Special Tests and Provisions Compliance ReQuirement · The grant agreements often contain specific provisions to which the ~rantee is 10 adhere. SU2!?ested Audit Procedures · Review the grant agreement. identify special provisions or requirements and verify that they wer~ met. Rev. 9/2004 DeSI[maled LegIs/alive Grant Agreemenr AppendLt /J I'al?,e lofl I I I I I Appendix B2 Indemnity and Insurance Article 1. Indemnification The contractor (Grantee) shall indemnify, save harmless and defend the state, its officers, agents and employees from all liability, including costs and expenses, for all actions or claims resulting from injuries or damages sustained by any person or property arising directly or indirectly as a result of any error, omission or negligent act of the contractor, subcontractor or anyone directly or indirectly employed by them in the performance of this contract. All actions or claims including costs and expenses resulting from injuries or damages sustained by any person or property arising directly or indirectly from the contractor's performance of this contract which are caused by the joint negligence of the state and the contractor shall be appottioned on a comparative fault basis. Any such joint negligence on the part of the State must be a direct result of active involvement by the State. Article 2. Insurance Without limiting contractor's indemnification, it is agreed that the contractor shall purchase at its own expense and maintain in force at all times during the performance of services under this agreement the following policies of insurance. Where specific limits are shown, it is understood that they shall be the minimum acceptable limits. If the contractor's policy contains higher limits, the State shall be entitled to coverage to the extent of such higher limits. Cettificates of Insurance must be furnished to the Contracting Officer prior to beginning work and must provide for a thirty (30) day prior notice of cancellation, non- renewal or material change. Failure to furnish satisfactory evidence of insurance or lapse of the policy is a material breach and grounds for termination of the contractor's services. 2.1 Workers' Compensation Insurance: The contractor shall provide and maintain, for all employees of the contractor engaged in work under this contract, Workers' Compensation Insurance as required by AS 23.30.045. The contractor shall be responsible for Workers' Compensation Insurance for any subcontractor who directly or indirectly provides services under this contract. This coverage must include statutory coverage for states in which employees are engaging in work and employer's liability protection is not less than SIOO,OOO.OO per occurrence. Where applicable, coverage for all federal acts (i.e. USL & H and Jones Acts) must also be included. 2.2 Comprehensive (Commercial) General Liability Insurance: With coverage limits not less than $300,000.00 combined single limit per occurrence and annual aggregates where generally applicable and shall include premises-operations, independent contractors. productslcomplcled operations. broad form property damage. blanket contractual and personal injury endorsements. 2.3 Comprehensive Automobile Liability Insurance: Covering all owned. hired. and non-owned vehicles with coverage limits not less than $ 100,000.00 per person/S300.000.00 per occurrence bodily injury and $50.000.00 property damage. 2.4 Professional Liability Insurance: Covering all errors, omissions or negligent acts of the contractor, subcontractor or anyone directly or indirectly employed by them. made in the performance of thIS contract which result in financial loss to the State. Limits required an: per the follOWing schedule: Contract Amount Minimum Required Limits Under $ 1 00.000 SIOO.OOO - 5499.999 S500,000.5999,999 $1,000.000 or over S I 00.000 per occurrence/annual aggregate $250.000 per occurrence: annual aggregate $500.000 per occurrence:annual aggregate Negotiable - Refer to Risk Management Rev 7/200.: [)esl!!'UJled Lel!lslaltve Gram .~I!reemenl Appenalx 8,' Pflft,j I "r! I Appendix C State Laws and Regulations Municipality Public Facility Operations and Maintenance-AS 37.05.315(c) In accepting a grant under AS 37.05.315 for construction of a public facility, a municipality covenants with the State that it will operate and maintain the facility for the practical life of the facility and that the municipality will not look to the State to operate or maintain the facility or pay for its operation or maintenance. This requirement does not apply to a grant for repair or improvement of an existing facility operated or maintained by the State at the time the grant is accepted jf the repair or improvement for which the grant is made will not substantially increase the operating or maintenance costs to the State. Restriction on Use-AS 37.05.321 A grant or earnings from a grant under AS 37.05.315 - 37.05.317 may not be used forthe purpose of influencing legislative action. In this section "influencing legislative action" means promoting, advocating, supporting, modifying, opposing, or delaying or seeking to do the same with respect to any legislative action but does not include the provision or use of information, statistics, studies, or analyses in wrinen or oral form or fonnat. A grant or earnings from a grant made under AS 37.05.3 J 5 - 37.05.317 may not be used for purposes of travel in connection with influencing legislative action unless pursuant to a specific request from a legislator or legislative comminee. Hiring Preference~AS 36.10 This chapter of the Alaska Statutes applies to grants for public works projects and requires compliance with the hiring preferences under AS 36.10.150 - 36.10. J 75 for employment generated by the grant. Historic Preservation Act-AS 41.35 This chapter of the Alaska Statutes applies to public construction of any nature undertaken by the State, or by a governmental agency of the State. or by a private person under contract with or licensed by the State or a governmental agency of the State. The Depanment of Natural Resources must be notified if the construction is planned for an archaeological site. The department may stop the construction to detennine the extent of the historic. prehlstonc. or archaeological values. Fire Protection-AS 18.70 This chapter of the Alaska Statutes requires the Depanment of Public Safety (the Stale Fire Marshal) to adopt regulations (currently in the form of Unifonn Fire Code. as amended) establishing minimum standards for I. Fire detection and suppression equipment: 2. Fire and life safety criteria in commercial, industrial. business, instilUlional. or other publiC buildlfigs used for residential purposes containing four or more dwelling units: 3. Any activity in which combustible or explosive materials are stored or handled in commercial quantities: 4. Conditions or actiVIties carried on outside a building described in en or (31 likelv to cause Inlurv to persons or property . Environmental Conservation-AS 46.03 This chapter of the Alaska Statutes applies to municipalities and could subject them to enforcement actions instituted by the Alaska Depanmem of Environmental Conservation for air, land and water nuisances. and water and air pollution In a municipality of 1,000 or more, and may establish a local air pollution control program. Rev. 6/2005 Desl~nalcd u)!lslaltYc Granr Ap,reemenr AppendiX r POOl' I nf''' Alaska Coastal Management Program-AS 46.40 This chapter of the Alaska Statutes establishes a planning program for the use, management, restoration, and enhancement of the overall quality of the coastal environment. The law provides for the creation of coastal resource districts and the establishment, review, and approval of district management plans, If a district management plan is not implemented, enforced, or complied with, enforcement action may follow. Permits and Environmental Procedures Coordination-AS 46.35 This chapter of the Alaska Statlltes establis.hes the Depanmentof Environmental Conservation as the central State agency for processing environmental permits issued by State agencies. The law requires a master application fonn and specifies the following pennits including others designated by the commissioner to which this law applies: Access Roads Permit-AS 41.21.020, 11 AAC 12.020 Air Emissions Permit-AS 46.14.140, 18 AAC 50.030 Anadromous Fish Protection Permit-AS 16.05.870, 5 AAC 95.010 Authorization for Tidelands Transportation-AS 38.05.035, 11 AAC 51.015 Brine or Other Salt Water Waste Disposal Permit-AS 31.05.030,20 AAC 22.252 Burning Permit during Fire Season-AS 41.15.060,11 AAC 95.410 Coal Development Permit-AS 27.21.030,11 AAC 85.110 Critical Habitat Area Permit-AS 16.20.510,05 AAC 95.420 Dam Construction Permit-AS 46.17.040,11 AAC 93.171 Driveway Permit-AS 19.05.040, 17 AAC10.020 Encroachment Permit-AS 19.25.200,17 AAC 10.012 Limited Personal Use Permit-AS 38.05.820, 11 AAC 62.010 Miscellaneous State Land Use Permit-AS 38.05.035, 11 AAC 96.010 Mineral and Geothermal Prospecting Permits-AS 38.05.181, 11 AAC 82.100 Open Burning Permit-AS 46.03.020, 18 AAC 50.065 Permit for Use of Timber or Material!r-AS 38.05.110, 11 AAC 71.025 Permit to Appropriate Water-AS 46.15.040, 11 AAC 93.120 Pesticides Permit-AS 46.03.320, 18 AAC 90.300 Preferred Use Permit-AS 46.15.150, 11 AAC 93.240 Right-of-Way and Easement Permits-AS 38.05.850, 11 AAC 58.740 Solid Waste Disposal-AS 46.03.100, 18 AAC 60.200 Special Land Use Permit-AS 38.05.035, 11 AAC 58.210 Special Material Use Permit-AS 38.05.115,11 AAC 71.025 State Game Refuge Land Permit-AS 16.20.050.16.20.060 State Park Incompatible Use Permit-AS 41.21.020, 11 AAC 18.010 Surface Oiling Permit-AS 46.03.740, 18 AAC 75.700 Surface Use Permit-AS 38.05.255, 11 AAC 86.600 Tide and Submerged Lands Prospecting Permit-AS 38.05.250, 11 AAC 62.700 Tidelands Permit-AS 38.05.035,11 AAC 62.720 Tidelands Right-of-Way or Easement Permit-AS 38.05.820, 11 AAC 62.720 Utility Permit-AS 19.25.010, 17 AAC 15.011 Waste Water Disposal Permit-AS 46.03.100, 18 AAC 72.010 Water Well Permit-AS 31.05.030, 11 AAC 93.140 Rev. 6/2005 Designated Legis/atIVe Grant Agreement Appendix C Page 2 of 2 I I I I I I I I Appendix D Special Requirements and Assurances for Federally Funded Projects Federal grant requirements are not applicable to the Designated Legislative Capital Grant program. r- i I I I Appendix E Site Control 1. Site Control The Grantee must provide evidence of site control for a project that involves any use of land, including but not limited to, construction, renovation, utility projects, fuel storage, roads and trails. As a minimum requirement, the Grantee should obtain a "sufficient interest" that allows the Grantee the right to use and OCC;1JPy the site for the expected useful life of the building, structure or other improvement. Generally, the interest obtained should be for at least 20 years. A sufficient interest depends upon the nature of the project and the land status of the site. Site control options are identified in Section 2. For a project planned on land that is controlled by a public agency, the Grantee must obtain whatever authorization for use that is required by the public agency. 2. Site Control Options Below are some examples of documents that may be used to satisfy site control requirements for various community facilities/projects. The terms and conditions contained in each document must be examined to determine adequacy for a specific project. Deed Lease Easement Use Permit License Community Hall .,; '" ~ Clinic .,; '" Fire Station '" '" Bulk Fuel Storage '" '" Dump '" '" Shop/Storage Building '" '" Cemetery .,; '" Dock .,; '" Campground '" '" Generator Building '" '" Multi-purpose building '" '" Laundromat '" '" Water welUSeptic '" '" '" Village Relocation '" '" '" '" Agriculture Project '" '" Sewage Lagoon '" '" Communication Site '" '" Road (.25') '" '" Trail (,25") '" '" Boardwalk '" .; '" Powerline wi .; '" Water/Sewer Line '" .; '" Pipeline '" .; '" Rev. 7/2004 DeStgnaled Leglslaltw Grant Agreement AppendIX f Pa!!e I of / ) I I I I I I I I I I I I I l Appendix F State Fire Marshal Review The Plan Review Process Construction, repair, remodel, addition, or change of OCcupancy of any building/structure, or installation or change offuel tanks must be approved by the State Fire Marshal's Office before ANY work is started. Residential housing that is three-plex or smaller is exempt from this requirement. Exception: The following jurisdictions have accepted a deferral for total code enforcement and plans should be submitted directly to the city: Anchorage, Juneau, Fairbanks, Kenai, Seward, Kodiak, Sitka, and Soldotna Plans and specifications regarding the location of the building or structure on the property, area, height, number of stories, occupancy, type of construction, interior finish, exit facilities, electrical systems, mechanical systems, fuel storage tanks and their appurtenances, automatic fire-extinguishing systems, and fire alarm systems must be submitted by the owner or owner's representative to the State Fire Marshal for examination and approval. This review does not address structural considerations or accessibility requirements. Mechanical and electrical review is limited to that which is necessary to confirm compliance with fire and life safety requirements. A copy of the plan review approval certificate must be posted as required in 13 AAC 55.1 OO(b). It is prohibited to occupy a building for which plans have not been examined and approved. If any work for which a plan review and approval is required has been started without first obtaining plan review and approval, an additional special processing plan review fee of $100 is charged for the first violation. The special processing plan review fee for a subsequent violation by the same person is an additional charge equal to the amount of the standard plan review fee for the project. Authority: AS 18.70.080 Alaska Administrative Code: 13 AAC 50.027 Rev 7/2004 Deslgnaled Leglslarrve Grant Agreement AppendIX F ra~clofJ KODIAK ISLAND BOROUGH AGENDA STATEMENT JANUARY 17. 2008 REGULAR MEETING ITEM NO: 13.A.1 TITLE: Contract No. FY2008-23 Authorizing the Borough Manager to Sign a Memorandum of Agreement (MOA) Between the City of Larsen Bay and the Kodiak Island Borough that Transfers Any Grant Liability Associated with Legislative Grant 07-DC-324 Larsen Bay Equipment from the Kodiak Island Borough to the City of Larsen Bay. SUMMARY: The Kodiak Island Borough received a number of legislative grants on behalf of various villages around the Borough. Among the projects funded was Legislative Grant 07 -DC-324: Larsen Bay Heavy Equipment - $70,000 Instead of awarding the grant directly to the City of Larsen Bay, the state legislature chose the Kodiak Island Borough as the grantee. As grantee the Borough is responsible for all aspects of the grant including any and all liabilities. Because the City of Larsen Bay will be purchasing a piece of heavy equipment and negotiating the purchase and because the KIB is really out of the loop and has no control of much of the process, an MOA has been drafted between KIB and Larsen Bay. This MOA places the grant liability identified in the agreement on the City (This is how the assembly handled a similar legislative grant of $570,000 to the City of Ouzinkie). The Borough remains the grantee and is responsible for performing any grant reporting requirements. The Borough will perform this work taking no money from the grant therefore allowing the city of Larsen Bay to utilize the full grant amount. FISCAL NOTES: Account No.: N/A Amount Budgeted: N/A Expenditure Required: N/A APPROVAL FOR AGENDA: ~ J~ RECOMMENDED MOTION: Move to authorize the manager sign and execute Contract No. FY2008-23 Memorandum of Agreement between the City of Larsen Bay and Kodiak Island Borough regarding Legislative Grant 07 -DC-324 Larsen Bay Equipment.