HomeMy WebLinkAboutRes2014-023 Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2014-023
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,AUTHORIZING THE CITY MANAGER TO ACCEPT A GRANT
FROM THE STATE OF ALASKA DEPARTMENT OF COMMERCE,
COMMUNITY&ECONOMIC DEVELOPMENT FOR$175,966.50 FOR THE
DAIRY HILL DRAINAGE MITIGATION PROJECT, AND
APPROPRIATING FUNDS
WHEREAS,the Kenai Peninsula Borough Assembly approved and appropriated the State of
Alaska Department of Commerce,Community&Economic Development(DCCD)grant 14-DC-070
in the amount of $1,000,000 for the purpose of completing mitigation projects within the
Seward/Bear Creek Flood Service Area(SBCFSA); and
WHEREAS, in 2012, the City applied for and accepted a grant for $349,982 from the
Division of Homeland Security and Emergency Management Hazard Mitigation Program for the
Dairy Hill Drainage Mitigation project; and
WHEREAS, in July 2013, an Intent to Award was issued to Metco, the lowest, qualified,
responsive bidder for $334,599.50 to complete the Dairy Hill Drainage Mitigation Project; and
L.
WHEREAS,with a total project cost of$525,948.50 we have a shortfall of$175,996.50;and
WHEREAS, on September 13, 2013, City staff found an opportunity to leverage
Seward/Bear Creek Flood Service Area (SBCFSA) funds and requested $175,966.50 from the
DCCD grant to complete the Dairy Hill Drainage Mitigation project; and
WHEREAS,the total grant does not require the city to provide monetary contributions to the
project, but the grant does require city staff to participate in managing the project; and
WHEREAS, $98,660.50 of the grant funds may be used to supplement the construction
budget for the Dairy Hill Drainage Mitigation project and$77,300 is to purchase land adjacent to the
Dairy Hill project, KPB parcel #14720013, 1216 Chamberlain Road; and
WHEREAS,accepting the total award of$175,996.50 from the State of Alaska Department
of Commerce, Community& Economic Development is in the best interest of the city by allowing
the city to utilize the funds to take critical mitigation measures to reduce risks associated with
flooding.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
CITY OF SEWARD, ALASKA
RESOLUTION 2014-023
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Section 1. The City Manager is hereby authorized to enter into Subcontractor Agreement
with the Kenai Peninsula Borough serving as the pass-through agency for the State of Alaska
Department of Commerce,Community&Economic Development grant program,as attached hereto
in substantial form, and accept the total award amount of$175,996.50.
Section 2. Funding in the amount of$77,300.00 was appropriated in a separate resolution for
the purpose of purchasing a parcel of land related to this Dairy Hill Drainage Mitigation Project,and
the remaining balance of$98,666.50 is hereby appropriated from State grant account no. 866-8669-
4680-0200 to contracted services account no. 866-8669-5390.
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th day of
February, 2014.
THE CITY OF SEWARD,ALASKA
ikr2-4del,2-4441.
can Bardarson,Mayor
AYES: Keil, Casagranda, Terry, Squires, Butts, Bardarson
NOES: None
ABSENT: None
ABSTAIN: None
VACANT: One
ATTEST:
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J hanna Kinq"ir, CMC
C ty Clerk
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(City Seal) "
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Agenda Statement
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Meeting Date: February 24, 2014 ;! 4Sa
To: City Council q 'p,
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Through: City Manager Jim Hunt
From: William Casey
Agenda Item: State of Alaska Department of Commerce, Community & Economic
Development(DCCED)grant in the amount of$175,966.50,passed through
the Kenai Peninsula Borough for the Dairy Hill Drainage Mitigation Project
BACKGROUND & JUSTIFICATION:
The Kenai Peninsula Borough (KPB) Assembly approved and appropriated the State of Alaska
Department of Commerce,Community&Economic Development(DCCD)grant 14-DC-070 in the
amount of $1,000,000 for the purpose of completing mitigation projects within the Seward/Bear
Creek Flood Service Area (SBCFSA).
In 2009,an area known locally as Dairy Hill was identified as a high risk flood area.In March 2010,
City staff completed and submitted the Hazard Mitigation Grant Program Project Application and in
January 2012, the City was notified by the Division of Homeland Security (DHS) and Emergency
Management Hazard Mitigation Program that the application was successful. In July 2012, the
Seward City Council passed Resolution 2012-049 accepting the grant for $349,982.
In July 2013, an Intent to Award was issued to Metco, the lowest, qualified, responsive bidder for
$334,599.50 to complete the Dairy Hill Drainage Mitigation Project. With engineering costs totaling
$83,935, property acquisition costs of$77,300 and a contingency of$30,114, we anticipate a total
project cost of$525,948.50. With the 2012 DHS grant award of$349,982, we have a shortfall of
$175,996.50.
On September 13, 2013, City staff found an opportunity to leverage Seward/Bear Creek Flood
Service Area (SBCFSA) funds and requested $175,966.50 from the DCCD grant to complete the
Dairy Hill Drainage Mitigation project. $77,300 of this funding was to purchase KPB parcel
#14720013 (required to realign the major drainage terminus of the project)and$98,660.50 was to be
used to augment the shortfall of the project construction costs.
The Kenai Peninsula Borough has awarded $175,966.50 for the Dairy Hill Drainage Mitigation
project. Accepting the total award of$175,966.50 from DCCD will allow the City to utilize grant
funds to take critical mitigation measures to reduce risks associated with flooding.
INTENT:
Accept State grant funds passed through the KPB for the purpose of Dairy Hill Drainage mitigation,
and purchasing parcel of land associated with the mitigation project.
K ENAI P ENINSULA B OROUGH
S UBCONTRACTOR A GREEMENT
AuthorizationKPB Account NumberContractAmount
O2013-19-06 and R2013-079271.21212.14MIT.43011$175,966.50
Project TitleFunding Source
Dairy Hill Drainage Improvement and Land AcquisitionState of Alaska Department of Commerce, Community & Economic
ProjectDevelopment (DCCED 14-DC-070)
SubcontractorBorough Contact Person
NameDUNS# 037996634Name
TAX# 92-6000086
City of SewardBrenda Ahlberg, Community & Fiscal Projects Manager
Mailing AddressMailing Address
PO Box 167144 N. Binkley Street
City/State/ZipCity/State/Zip
Seward, AK 99664Soldotna, AK 99669
Contact PersonEmail
James Hunt, City Managerbahlberg@borough.kenai.ak.us
PhoneFaxPhoneFax
224-4047224-4038714-2153714-2377
The Kenai Peninsula Borough (hereinafter “Borough”) and City of Seward (hereinafter“subcontractor”) agree as set forth herein.
Section I: The Borough shall pay subcontractorfor 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
$175,966.50.
exceed
Section II: The subcontractorshall perform all of the work required by this agreement.
Section III: The work to be performed under this agreement begins 12/03/2013and shall be completed no later than 06/30/2015.
Section IV:the agreement consists of this page and the following attachments:
A.Scope of Work and Use of Funds
Payment Method and Reporting Requirements
Standard Provisions
B.Financial/Progress Report
C.Signature Authorization Form
D.State of Alaska Articles imposed upon subcontractor
Section V: The Community & Fiscal Projects Managershall control the original, including any attachments filed.
SubcontractorBorough
Signature:Signature:
Authorized Signatory Name and TitleAuthorized Signatory Name and Title
James Hunt, City ManagerMike Navarre, Mayor
Date:Date:
Attest: Joanna Kinney, City ClerkAttest:Johni Blankenship, Borough Clerk
Approved as to form and legal sufficiency:
Holly Montague, Deputy Borough Attorney
FY14KPB Subcontractor Agreement
City of Seward-Dairy HillDrainageImprovement and Land Acquisition
Scope of Work and Use of Funds
Project Description: The purpose of this agreementis to provide funding in the amount of
$175,966.50to the City of Seward,hereinafter referred to as “subcontractor,”for the purpose of
supplementing the Dairy Hill drainage improvement project in the amount of $98,660.50andto
purchaseland adjacent to the Dairy Hillprojectin the amount of $77,300.00. The legal
description of the land acquisition is T 1S R 1W SEC 3 SEWARD MERIDIAN SW 0900004
SEWARD, TOWNSITE CLIFF ADDN BLK 13 REPLAT & VACATION BLK 13A, KPB
parcel #14720013, 1216 Chamberlain Rd., Seward AK 99664.
Project Management
1.The project will be managed by the subcontractor.
2.The City Manager, or such other person(s) as indicated on Attachment C, shall bedesignated
as the representativeto receive or to make all communications regarding the performance or
administration of this agreement. The Borough Community & Fiscal Projects Manager, or
such other person(s) as designated by the Borough Mayor, is hereby designated as the
representative of the Borough to receive or make all communications, payment requests, and
reports regarding the performance or administration of this agreement, and who approves
payment under this agreement. The parties may change their representative upon written
notification to the other party.
Key Contact Information
Dan Mahalak, Water Resource ManagerBrenda Ahlberg, Community & Fiscal Projects
224-9515·dmahalak@borough.kenai.ak.us714-2153 · bahlberg@borough.kenai.ak.us
Seward Bear Creek Flood Service AreaKenai Peninsula Borough
Seaview Plaza144 N. Binkley St.
302 Railway Ave., Ste. 123Soldotna, AK 99669
Seward, AK 99664
Project Approval
The Assembly approved and appropriated the State of Alaska Department of Commerce,
Community & Economic Development grant 14-DC-070in the amount of $1,000,000.00for the
purpose of completing mitigation projects within the Seward Bear Creek Flood Service Area
\[SBCFSA\] (KPB Ordinance 2013-19-06).Projects to be completed with these funds were ranked
by the SBCFSA Board of Directors, referencing the SBCFSA Local Hazard Mitigation Plan. The
ranked projects were submitted to the Borough Mayor and presented to the Borough Assembly
for final approval (KPB Resolution 2013-079). The DairyHill drainage improvement project
and land acquisition projectin the amount of $175,966.50areamong the approved mitigation
projects, which shall be completed as a subrecipient agreement between the Borough andthe
subcontractor.
Thesubcontractor shall cite KPB account number 271.21212.14MIT.43011in all
correspondence and reporting forms. The funds, or any earnings there from, may be spent only
for the purposes of thisproject as described above. Any monies used for purposes not authorized
by this agreement shall be refunded to the Borough immediately after such expenditures, with or
KPB/City of Seward -Dairy Hill DrainageImprovement& Land AcquisitionProject 1
without demand by the Borough. Request to amend the budget shall be submitted to the
Community & Fiscal Projects Manager no less than ninety (90) days prior to performance period
end date.
Project Performance Period
Period: The performance period shall be effective for the period commencing on December 03,
2013and ending on June 30, 2015.The subcontractormust liquidate all obligations not later than
June 30, 2015; the final financial andnarrative report is due July 10, 2015.The Borough shall
have no obligation for payment of services rendered by the subcontractorwhich are not
performed within this specified period.
Request to Extend: Any determination to extend the project performance period is solely at the
discretion of the Borough. A request to amend the performance period should be submitted not
later than ninety (90) days prior to theestablished end date.
Funding
1.Source of Funds:
a.This project is being funded in full through the State of Alaska Department of
Commerce, Community & Economic Development, FY14 Capital Grant 14-DC-070
pursuant to the provisions of AS 37.05.315 Grants to Municipalities(SIA 2013,
Senate Bi/118, Chapter 16, Section 1, Page 17, and Line 2.5).
b.The State of Alaska Department of Commerce, Community & Economic
Developmentapproved the Borough’s request to enter into an agreement with the
City of Sewardon November 12, 2013.
c.All unexpended funds as of the end of the performance period must be returned to the
Borough. Funds will be considered obligated if they have actually been expended or
encumberedprior to the end date of the performance period.
2.Condition for Receipt of Funds: The subcontractorshall comply with Attachment D “State of
Alaska Department of Commerce, Community & Economic Development Grants to
Municipalities -Standard Provisions”as excerpted,federal legislation and court rulings that
permit the use of these funds for the purpose of flood mitigation.
3.Funds, or earnings therefrom, shall not be expended for the purposes of lobbying activities
before a local, state or federal governmental entity, i.e. the Borough Assembly, the Alaska
State Legislature or U.S. Congress.
Payment Terms and Reporting Requirements
A.Budget: The program budget shall constitute the maximum amount available to the
subcontractorfor work performed under this agreement.
B.Payment: For the purpose of expediting payment for deliverables, the financial/narrative
reports must be submitted quarterly(Attachment B).
1.Upon receiving and approving the subcontractor’s financial/narrative reports, the
Borough will reimburse the subcontractorfor costs incurred during the reporting
period, in accordance with this agreement. The Borough will not reimburse without
approved financial/narrative reports, prepared and submitted by the subcontractoron
the forms requested by the Borough.
KPB/City of Seward -Dairy Hill DrainageImprovement& Land AcquisitionProject 2
2.In no case shall the total amount of payments exceed the total amount of this
agreement.
3.Advance Payment: An advance payment request must be submitted thirty (30) days
prior to approval and must include justification and timeline to expend the funds.
C.Reports: Reports shall be submitted quarterly as listed below. Submit an expenditure
statement by project fund which indicates the revenue and approved expenditures year-to-
date(Attachment B). The reimbursement requests must be for expenditures madewithin the
quarter that work is completed.Fiscal/narrativereports are due the 10th day after the end of
each fiscal quarter as follows:07/01 -09/30 = October 10th; 10/01 -12/31 = January 10th;
01/01 -3/31 = April 10th; and04/01 -06/30 =July 10th.
Email the financial/narrativereports to:
Dan Mahalak, Water Resource ManagerBrenda Ahlberg, Community & Fiscal Projects
224-9515·dmahalak@borough.kenai.ak.us714-2153 · bahlberg@borough.kenai.ak.us
Seward Bear Creek Flood Service AreaKenai Peninsula Borough
Seaview Plaza144 N. Binkley St.
302 Railway Ave., Ste. 123Soldotna, AK 99669
Seward, AK 99664
Standards for Financial Management
Financial Management System:
1.The subcontractorwill maintain an accounting system and a set of accounting records that,
at a minimum, allows for the identification of individual projects by source of revenue and
expenditures related to this project.
2.All costs will be supported by source documentation.Subcontractorshall retain all
contracts, invoices, materials, payrolls, personnel records, conditions of employment, and
other data relating to matters covered by this agreement for a period of sixyearsafter the
completion date of the agreement, or until final resolution of any audit findings, claimsor
litigation related to thesefunds(reference Attachment D, Article 7).
3.The subcontractor’s accounting records will be the basis for generating financial reports
which must reflect accurate and complete data. In addition, financial records must be
properly closed out at the end of the project period and all reports submitted in a timely
manner.
Procurement Standards
Thesubcontractor agrees to use a competitive process when making procurements for goods and
services. These standards include but are not limited to the following:
1.Subcontractormay use its own procurement policies provided that they adhere to the
applicable standardsas outlined in the Alaska Administrative Code 2 AAC 45;and
2.Subcontractorshall maintain a code of conduct which shall govern the performance of its
officers, employees or agents in contracting with or expending funds; and
3.All procurement transactions shall be conducted in a manner so as to provide for
maximum open and free competition.
KPB/City of Seward -Dairy Hill DrainageImprovement& Land AcquisitionProject 3
Monitoring
Monitoring:
1.The subcontractormay receive an on-site review from the Borough, or its authorized
representatives, in addition to reviews from State of Alaskapersonnel representing the
AK Department of Commerce, Community & Economic Development.Monitoring staff
may review project and financial activity relating to the terms of this agreement. Upon
request, the Borough shall be given full and complete access to all information related to
the performance period of this agreement to ensure compliance with the project activities
and consistently applied costs (reference Attachment D, Article 5).
2.The subcontractoreshall provide the Borough and its authorized representatives all
technical staff, assistance and information needed to enable the Borough or the State
personnel to perform its monitoring function. Theassistance from the subcontractor
includes, but is not limited to, information about the subcontractor’s project operation,
accounting and data-base systems.
Program and Financial Deficiencies:
1.Through audits, reviews, monitoring or other means, the Borough may find the
subcontractorto have program or financial deficiencies in the performance of the
agreement. Such deficiencies may include, but are not limited to, the areas of accounting,
financial controls, budgeting, and/or project compliance issues. If deficiencies are found,
the Borough may require the subcontractor to take corrective action and to submit a
written corrective action plan to address identified deficiencies. All corrective action
plans must be accepted by the Borough or its authorized representatives. Any corrective
action must be satisfactorily completed within thirty (30) days from the date of written
notification.
2.The Borough, in its sole discretion, may require the subcontractor to submit periodic
written verification that measures have been taken to implement the corrective action. If
the subcontractorfails to demonstrate its compliance with the approved corrective action
plan within the time constraints set by the Borough, the Boroughmay, at its option,
exercise its rights to terminate the agreement. The Borough may exercise any of the other
rights and remedies available to it at law or in equity.
KPB/City of Seward -Dairy Hill DrainageImprovement& Land AcquisitionProject 4
Standard Provisions
1.Site Control, Operations and Maintenance:By signing this agreement, the subcontractor
certifies that it will not ask the Borough tooperate or maintain its project, except as may be
otherwise agreed to in writing signed by both parties. Subcontractorunderstands,
acknowledges and agrees that the Borough shall not be responsible for any services,
programs, maintenance, operations, or further funding to subcontractor, or actions related
thereto, and has not, and will not assume any such responsibility, all of such to be the sole
and exclusive responsibility ofsubcontractor.Furthermore, if the project involves the
occupancy and use of real property, the Borough and the subcontractor assures that it has the
legal right to occupy and use such real property for the purposes of the project, and further
that there is legal access to such property (reference Attachment D, Article 25).
2.Defense and Indemnification:The subcontractorshall indemnify, defend, save and hold
the Borough, its elected and appointed officers, agents and employees, harmless from any
and all claims, demands, suits, or liability of any nature, kind or character including costs,
expenses, and attorneys fees resulting from subcontractoror subcontractor’s officers, agents,
employees, partners, attorneys andsuppliers’performance or failure to perform this
agreement in any way whatsoever. This defense and indemnification responsibility includes
claims alleging acts or omissions by the Borough or its agents, which are said to have
contributed to the losses, failure, violations, or damage. However, subcontractorshall not be
responsible for any damages or claim arising from the sole negligence or willful misconduct
of the Borough, its agents, or employees. Subcontractorshall also not be required to defend
or indemnify the Borough for damage or loss that has been found to be attributed to an
independent party directly responsible to the Borough under separate written contract. If any
portion of this clause is voided by law or court of competent jurisdiction, the remainder of
the clause shall remain infull force and effect (reference Attachment D, Article 2).
3.Insurance:subcontractorshall purchase at its own expense and maintain in force at all
times during the term of this agreement Commercial General Liability and Automobile
Insurance. Such policies are to include bodily injury, personal injury, and property damage
with respect to the property and the activities conducted by subcontractorin which coverage
shall not be less than $1,000,000 per occurrence or such higher coverage as specified by the
Borough. The policy shall name the Borough and the State of Alaskaas an additional
insured. Borough approval shall be required for the amount of any deductible or self-insured
retention.
Additionally, subcontractorshall purchase and maintain at its own expense worker’s
compensation and employers liability insurance for all employees per Alaska State Statutes
who are performing work under this agreement.
Proof of Insurance:subcontractorshall deliver to the Borough certificates of
insurance along with subcontractor’s signature on this agreement. The certificates
shall indicate the Borough and the State of Alaska as an additional insured. This
insurance shall be primary and exclusive of any other insurance by the Borough.
Failure to provide the certificate of insurance required by this section, or a lapse in
coverage, is a material breach of the terms of this agreement entitling the Borough to
terminate this agreement.
KPB/City of Seward -Dairy Hill DrainageImprovement& Land AcquisitionProject 5
4.Relationship of Parties:Nothing herein contained shall be deemed or construed bythe
parties hereto, nor by any third party, as creating the relationship of principal and agent, or of
partnership, or of joint venture between the parties hereto, it being understood and agreed
that neither method of computation of payment nor any other provision contained herein, nor
any acts of the parties hereto, shall be deemed to create any relationship between the parties
hereto other than the relationship of Borough and independent subcontractor of funds
(reference Attachment D, Article 13).
5.No Exclusive Service; No Property Interest:The subcontractorunderstands,
acknowledges and agrees that all supplies, materials, equipment, landpurchased with these
funds shall be and shall remain the property of the subcontractor,subject to all applicable
State statutesand Federal regulations.
6.Termination.The Borough may terminate this agreement, by written notice, when it is in
thebest interest of the Borough. In the event that subcontractordoes not perform the tasks as
required in this agreement, or does not submit any required reports for verification of
performance, the Borough may exercise its option to terminate this agreement.
7.Permits, Taxes and Adherence to Local, State, and Federal Laws:Signing of this
agreement does not, in any manner, excusesubcontractorfrom complying with any other
law, Alaska state statute or regulation, or Borough ordinance or regulation.Subcontractor
must in all cases adhere to all local, state and federal laws and regulations that pertain to
public funds, to the services performed pursuant to this agreement, and related to wages,
taxes, social security, workers compensation, nondiscrimination, licenses, permits, and
registration requirements. Subcontractorshall pay all taxes pertaining to its performance
under this agreement, and shall acquire and maintain in good standing all permits, licenses
and other entitlements necessary to the performance under this agreement.
8.Jurisdiction; Choice of Law:Any civil action arising from this agreement shall be brought
in thesuperior court for the Third Judicial District of the State of Alaska at Kenai.The law of
the State of Alaska shall govern the rights and obligations of the parties.
9.Non-Waiver:The failure of the Borough at any time to enforce a provision of this
agreement shall in no way constitute a waiver of the provisions, nor in any way affect the
validity of this agreement or any part thereof, or the right of the Borough thereafter to
enforce each and every protection hereof.No conditions or provisions of thisagreement can
be waived unless approved by the Borough in writing. Waiver by the Borough of any non-
compliance by subcontractor, or excusing or extending performance, shall not be considered
a waiver of any other rights of the Borough or a waiver of the right to terminate in the event
of future breaches.
10.No Third-Party Beneficiary:This agreement is intended solely for thebenefit of each party
hereto. Nothing contained herein shall be construed or deemed to confer any benefit or right
upon any third party(reference Attachment D, Article 13).
11.Environmental Requirements:The subcontractormust comply with all environmental
standards, to include those prescribed under State of Alaska and Federal statutes and
Executive Orders.
KPB/City of Seward -Dairy Hill DrainageImprovement& Land AcquisitionProject 6
12.Entire Agreement:This agreement represents the entire and integrated agreement between
the Borough and subcontractor, and supersedes all prior, inconsistent negotiations,
representations or agreements, whether written or oral. This agreement may be amended only
by written instrument signed by both the Borough and subcontractor.
KPB/City of Seward -Dairy Hill DrainageImprovement& Land AcquisitionProject 7
FY14KPB SubcontractorAgreement
City of Seward-Dairy Hill Drainage Improvementand Land Acquisition Project
Attachment D
As a condition for receipt of funds, the subcontractorshall agree to comply withtheState of
Alaska Department of Commerce, Community & Economic Development “Grants to
Municipalities -Standard Provisions”as excerpted below:
Article 2 –Indemnification: Itis understood and agreed that this agreementis solely for the
benefit of the parties to the agreementand gives no right to any other party. No joint venture or
partnership is formed as aresult of this agreement.The Borough and the subcontractor, 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 anynature whatsoever by reason of the acts or omissions of the Borough or the
subcontractor, itsassigns, agents,contractors, licenses, invitees, employees, or any person
whomever arising out of or in connection with anyacts or activities authorized by this
agreement. The Borough and the subcontractorfurther agrees to defend the Departmentand the
State of Alaska and their authorized agents and employees in any litigation,including payment
of anycosts or attorney's fees for any claims or actions commenced thereon arising out of or in
connection with actsor activities authorized by this 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 Alaskaor their authorized agents or employees, provided, that if the
claims or damages are caused by or result fromthe concurrentnegligence of (a) the Department
and the State of Alaska and their agents or employees, and(b) the Borough or the subcontractor,
its agents or employees, this indemnity provision shall be valid and enforceable only to the
extent of the negligence of theBorough and thesubcontractor, orthe Borough’s orsubcontractor
's agents or employees.
Article 5 -Access to Records:The Department and duly authorized officials of the State of
Alaska shall have full access and theright to examine, excerpt, or transcribe any pertinent
documents, papers, records, and books of theBorough and subcontractor, and of persons or
organizations with which the Boroughmay contract, involvingtransactions relatedto the project
and this agreement.
Article 7 -Retention of Records: The Borough and subcontractorshall retain financial and
other records relating to the performance of this agreement for a period of six years. The
subcontractorshall retain all records for a period of six yearsfrom the date when the final
financial status report is submittedto the Borough, or until final resolution of any audit findings,
claims, or litigation related to these funds.
Article 13 -Obligations Regarding Third-Party Relationships: \[…\] No permission for
subcontracting shall create, between theDepartment or the State of Alaska and the subcontractor,
any contract or any relationship.The Borough shall remain fully obligated under the provisions
of Grant Agreement14-DC-070notwithstanding its subrecipient designation of the
subcontractor,any third party or parties of the undertaking of all or any part of the project
described herein. The subcontractorshall be required by the Boroughto comply with all the
provisions of the State Grant Agreement14-DC-070.The Boroughshall bind the subcontractor
to each and every applicable provisionas listed in Grant Agreement 14-DC-070. Each
Attachment D: KPB/City of Seward -Dairy Hill Drainage Improvement & Land Acquisition Project 1
subcontract for work to be performed with funds awardedunder this agreement shall specifically
include a provision that the Department and the State of Alaskaare not liable for damages or
claims from damages arising from any subcontractor's performance or activities under the terms
of the subcontracts.
Article 14 -Conflict of Interest:No officer or employee of the Department; no member,
officer, or employee of the Borough or of the subcontractoror itsdesignees or agents; no
member of the governing body of the jurisdiction in which the project isundertaken or located;
and no other official of such locality or localities who exercises anyfunctions or responsibilities
with respect to the project during his or her tenure, shall have anypersonal or pecuniary gain or
interest, direct or indirect, in any contract, subcontract, or theproceeds thereof, for work to be
performed in connection with the project assisted under this agreement.The Borough and the
subcontractorshall incorporate, or cause to incorporate, in all such contracts, aprovision
prohibiting such interest pursuant to the purpose of this provision.
Article 25 -Site Control:If the project involves the occupancy and use of real property, the
Borough and the subcontractor assures that it has the legal right to occupy and use such real
property for the purposes of the project, and further that there is legal access to such property.
Article 26 -Insurance:The Borough and the subcontractorareresponsible for obtaining any
necessary liability insurance. In addition, the Borough and the subcontractorshall provide and
maintain Workers' Compensation Insurance as required by AS 23.30 for all employees engaged
in work under this agreement. The Borough and the subcontractorshall require any contractor to
provide and maintain Workers' Compensation Insurance for its employees as required by AS
23.30. The Borough and the subcontractorshall require any contractor hired to work on the
project be licensed, bonded and insured for at least the amount of the project and if appropriate
provide and maintain Professional Liability Insurance.(Reference “Insurance,” Page 5 Section
3).
Article 27 -Subcontracts for Engineering Services:In the event that the subcontractor
contracts for engineering services, the subcontractorwill require that theengineering firm certify
that it is authorized to do business in the State of Alaska. In the event thatthe engineering firm is
also the project administrator, the subcontractorshall require that the bond orinsurance shall be
for not less than the amount ofthe entire project.
Article 30 -Equal Employment Opportunity (EEO):The subcontractormay not discriminate
against any employee or applicant for employment because ofrace, religion, color, national
origin, age, physical handicap,sex, marital status, changes in maritalstatus, pregnancy or
parenthood. The subcontractorshall post in a conspicuous place, available toemployees and
applicants for employment, a notice setting out the provisions of this paragraph.The
subcontractorshall state, in all solicitations or advertisements for employees to work on state
fundedprojectsthat it is an equal opportunity employer(EEO) and that all qualified applicants
willreceive 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 subcontractorshall include the provisions of this EEO article in everycontract relating to
this agreement and shall require the inclusion of these provisions in every agreement entered into
byany of its contractors, so that those provisions will be binding upon eachcontractor or
subcontractor.
Attachment D: KPB/City of Seward -Dairy Hill Drainage Improvement & Land Acquisition Project 2
Article 34 -Current Prevailing Rates of Wage:Certain 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 agreement, thesubcontractorshall pay the current prevailing
rates of wage to employees as required by AS 36.05.010. The subcontractoralso shall require
any contractor to pay the current prevailing rates of wage as required by AS 36.05.010.
Article 38-Audit Requirements: The Borough and the subcontractormust comply with the
audit requirements of the Alaska Administrative Code set forth in 02 AAC 45.010. As specific to
third party: 2 AAC 45.010(j)A third party that receives $500,000 or more in state financial
assistanceshall complywith the requirements of thissection. That entity shall also ensure that
appropriate corrective action is taken within six months after a thirdparty's noncompliance with
an applicable state statute or regulation, or financial assistance agreement, isdisclosed.
A copy of the most current 02 AAC 45.010 adopted regulations is available at the State Single
Audit website:http://doa.alaska.gov/dof/ssa/index.html.
Article 40 -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 II 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 toensure 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 barriersto ensure access by persons with disabilities. All new construction
must also be accessible to persons with disabilities. The subcontractormust also comply with the
ADA provisions.
Alaska Product Preferences--AS 36.15: This chapter of the Alaska Statutes applies to projects
financed by state money in which the use of timber, lumber, and manufactured lumber products
is required, only timber, lumber and manufactured lumber projects originating in this state from
local forests shall be used wherever practicable. The law requires the insertion of this clause in
calls for bids and in all contracts awarded.
Attachment D: KPB/City of Seward -Dairy Hill Drainage Improvement & Land Acquisition Project 3