HomeMy WebLinkAboutRes2018-089 Sponsored by: Bridges
CITY OF SEWARD, ALASKA
RESOLUTION 2018-089
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ACCEPT ALASKA
ENERGY AUTHORITY GRANT #7091242 IN THE AMOUNT OF $725,000
FOR THE DESIGN AND CONSTRUCTION OF A GROUND SOURCE HEAT
PUMP WHICH WILL DRAW HEAT FROM THE RESURRECTION BAY TO
HEAT A HEATING DISTRICT CONTAINING FOUR CITY BUILDINGS,
WITH POTENTIAL FOR FUTURE EXPANSION AND AUTHORIZING A
CITY MATCH OF $157,497 FOR A TOTAL PROJECT COST OF $882,497
AND APPROPRIATING FUNDS
WHEREAS,the City of Seward funded a testing well to determine if the Resurrection Bay
would be a viable natural sustainable resource utilizing geothermal technology; and
WHEREAS, the results from the testing well showed that a geothermal heat loop system
project would be successful; and
WHEREAS, Resolution 2018-006 adopted the Port and Commerce Advisory Board
priorities which lays out the need to explore energy alternatives which includes geothermal
technology; and
WHEREAS, the Alaska SeaLife Center has experienced tremendous success in saving
money utilizing geothermal heating systems; and
WHEREAS,the City has successfully lobbied for a state pass-through grant in the amount of
$725,000 for a district heat project; and
WHEREAS,the heat loop system will supplement the existing boiler heating system in four
municipal buildings up to 80%,representing an estimated annual fuel cost savings of$25,000; and
WHEREAS, the grant requires a community match of$157,497 which includes in-kind
contributions, cash contributions and already spent funds on the original testing well.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Manager is hereby authorized to accept grant#7091242 from the Alaska
Energy Authority in the amount of$725,000 for the purpose of design and construction of a ground
111 source heat pump and district heat system for four municipal buildings. The project period for this
grant is September 1, 2018 to December 31, 2019.
CITY OF SEWARD,ALASKA
RESOLUTION 2018-089
Section 2. Funding in the amount not to exceed $157,497 is appropriated from the Capital
Acquisition fund as the City's match for the grant. Funds totaling $882,497 are appropriated as
follows: $157,497 from account no. 8001-0-3710-80040 and $725,000 from the State grant funds
account no. 80041-0-4252 for a total amount of$882,497 to heat loop project accounts 80040-0-
7009 ($157,497) and 80041-0-7009 ($725,000).
Section 3. This resolution shall take effect immediately upon approval.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 26th
day of November, 2018.
THE CITY OF SEWARD,ALASKA
David Squires, Mayor
AYES: Squires, McClure, Towsley, Horn, Seese, Osenga, Lane
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Brenda J. Ballou, MMC
City Clerk /46 +;n ,g c- ,- * y (- ler k
(City Seal)
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Agenda Statement
Meeting Date: November 26, 2018
To: City Council
From: Jeff Bridges, Interim City Manager
Agenda Item: Authorizing the City Manager to accept Alaska Energy
Authority grant 97091242 in the amount of$725,000 for
the design and construction of a ground source heat pump which will draw heat from
the Resurrection Bay to heat a heating district containing four City buildings, with
potential for future expansion and authorizing a City match of$157,497 for a total
project cost of$882,497 and appropriating funds.
BACKGROUND & JUSTIFICATION:
In 2015, the City spent $24,999 to drill a test well on the waterfront to determine if the City could
take advantage of geothermal technology by utilizing heat from the Resurrection Bay.The test results
were favorable and State of Alaska has awarded a grant in the amount of$725,000 for a district heat
project. This grant,along with a$157,497 City match will be used for the design and construction of
a heating district that will supplement the boiler heating systems in the Library/Museum, City Hall
Annex, City Hall and Fire Hall. Estimated fuel savings cost for this project is $25,000 per year.
The Alaska Sea-Life Center has experienced tremendous success with their heat loop system and the
City wishes to utilize newer,advanced technologies that will significantly reduce the cost of heating
our City facilities.
The City match includes cash,in-kind and previously spent funds. The City will make every effort to
aid in the completion of this project with utilizing the maximum amount of in-kind contributions as
possible. This will help reduce the overall impact to the Capital Acquisition fund.
INTENT:
Authorizing the City Manager to accept the terms and conditions of the grant agreement and secure
grant funding in the amount of $725,000 from the Alaska Energy Authority. Accepting the
responsibility to operate and maintain the heat district loop system and appropriate funds for the
City's match.
CONSISTENCY CHECKLIST:
1. Comprehensive Plan 3.1.1.7: Continue to explore economic renewable energy projects
2. Comprehensive Plan 3.7.1.7: Encourage the development of cost efficient options for
renewable energy production in Seward.
FISCAL NOTE:
Approved by Finance Department:
ATTORNEY REVIEW: Yes No X
RECOMMENDATION: City Council Approve Resolution 2018-089 authorizing the City Manager
to accept the terms and conditions of the grant agreement, accept responsibility to operate and
maintain the proposed district heat system, enter into a grant agreement with the Alaska Energy
Authority and accept the total award amount of$725,000 as well as authorizing$157,497 in match
funding and appropriate funds.
Alaska Energy Authority
Grant Agreement RCi
ENERGY
* W4& L.UTHpRITY
Grant Agreement Number CFDA Number Amount of Funds: AEA use only
7091242 1 N/A $ 725,000 Managed Pass-thru
Project Code(s) Proposal Number: Period of Performance:
407109 RE91242 From: September 01, 2018 To: December 31, 2019
Project Title:
Heat Pump System for City of Seward
Grantee Grantor
Name Alaska Energy Authority
City of Seward
Street/PO Box Street/PO Box
PO Box 167 813 W. Northern Lights Blvd
City/State/Zip City/State/Zip
Seward, AK 99664 Anchorage, AK 99503
Contact Person Contact Person
Brennan Hickok Dan Smith, Project Manager
Phone: Fax: E-mail: Phone: Fax: E-mail:
907-224-4020 907-224-4038 bhickok@cityofseward.net 907-771-3983 907-771-3044 dsmith@akenergyauthority.org
AGREEMENT
The Alaska Energy Authority (hereinafter `Authority') and City of Seward (hereinafter `Grantee'), agree as set
forth herein.
Section I. The Authority shall grant funds to .rya for expenses incurred by the Grantee under the terms and
conditions of this Agreement, in an amount not to exceed $ 725,000, unless the grant amount is amended as
provided herein.
Section II. The Grantee shall apply the grant funds to the Project and perform all of the work and other
obligations required by this Agreement.
Section III. Performance under this agreement begins September 01, 2018 and shall be completed no later
than December 31, 2019.
Section IV. The agreement consists of this page and the following:
Appendices Attachments/Forms
Appendix A: General Provisions Attachment 1: Financial Report/Request for
Appendix B: Standard Provisions Reimbursement Form
Appendix C: Grantee Proposal/Scope of Attachment 2: Progress Report Form
Work Attachment 3: Notice of Project Closeout
Appendix D: Project Management & Attachment 4: Notice of Substantial Completion
Reporting Requirements Attachment 5: Grantee Certification
Appendix E: Project Budget & Attachment 6: Advance Request Form
Reimbursement Provisions Attachment 7: Grant Documents Authorized Signers
Form
AMENDMENTS: Any amendments to this
Agreement must be signed by authorized
representatives of Grantee and the Authority
and should be listed here.
Grantee Authority Executive Director or
Project Manager Designee
Signature Date Signature Date Signature Date
Brennan Hickok, Dan Smith, Janet Reiser,
Assistant City Manager Project Manager Executive Director
Heat Pump System for City of Seward
Grant Agreement#7091242
Table of Contents
Grant No. 7091242
AGREENIENT......................................................................................................................................................I
APPENDIX A GENERAL PROVISIONS.............................................................................................................4
1. DEFINITIONS.................................................................................................................................................4
2. INDEMNIFICATION........................................................................................................................................4
3. INFORMATION TECHNOLOGY RISKS AND WARRANTIES...............................................................................4
4. WORKERS'COMPENSATION INSURANCE......................................................................................................5
5. INSURANCE...................................................................................................................................................5
6. EQUAL EMPLOYMENT OPPORTUNITY(EEO)................................................................................................5
7. PUBLIC PURPOSES........................................................................................................................................5
8. OFFICIALS NOT TO BENEFIT.........................................................................................................................6
9. GOVERNING LAW.........................................................................................................................................6
10. COMPLIANCE WITH APPLICABLE LAW AND FUNDING SOURCE REQUIREMENTS...........................................6
11. SEVERABILITY..............................................................................................................................................6
12. NON-WAIVER................................................................................................................................................6
13. INTEGRATION...............................................................................................................................................6
14. GRANTEE NOT AGENT OF AUTHORITY.........................................................................................................6
15. DISPUTES......................................................................................................................................................6
16. TERMINATION...............................................................................................................................................6
17. TERMINATION DUE TO LACK OF FUNDING...................................................................................................7
18. NO ASSIGNMENT OR DELEGATION...............................................................................................................8
19. NO THIRD PARTY BENEFICIARIES.................................................................................................................8
20. NO ADDITIONAL WORK OR MATERIAL........................................................................................................8
21. CHANGES......................................................................................................................................................8
22. RIGHT TO WITHHOLD FUNDS........................................................................................................................8
23. REMISSION OF UNEXPENDED FUNDS............................................................................................................8
24. TAX COMPLIANCE RESPONSIBILITIES OF GRANTEE......................................................................................8
25. LOBBYING ACTIVITIES.................................................................................................................................8
26. FINANCIAL MANAGEMENT AND ACCOUNTING.............................................................................................9
27. PROCUREMENT STANDARDS.........................................................................................................................9
28. REPORTING REQUIREMENTS.........................................................................................................................9
29. OWNERSHIP OF DOCUMENTS AND PRODUCTS...............................................................................................9
30. INSPECTIONS AND RETENTION OF RECORDS.................................................................................................9
31. AUDITS.........................................................................................................................................................9
32. LEGAL AUTHORITY....................................................................................................................................10
33. GRANT CLOSEOUT......................................................................................................................................10
APPENDIX B STANDARD PROVISIONS.........................................................................................................11
1. GRANT FUNDING SOURCES.........................................................................................................................11
2. GOVERNING LAWS.....................................................................................................................................11
3. DOCUMENTATION AND RECORD KEEPING..................................................................................................11
4. ELIGIBLE COSTS.........................................................................................................................................11
5. INSURANCE REQUIREMENTS.......................................................................................................................11
6. PROCUREMENT AND SUSPENSION AND DEBARMENT..................................................................................12
7. DECLARATION OF PUBLIC BENEFIT............................................................................................................13
8. GRANTEE PROJECT MANAGER....................................................................................................................13
9. APPROVAL TO PROCEED WITH NEXT PHASE...............................................................................................13
10. CONTRACTS FOR ENGINEERING SERVICES..................................................................................................13
11. SITE CONTROL............................................................................................................................................13
12. PERMITS.....................................................................................................................................................14
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13. EXCLUSION OF ExIsT NG ENVIRONMENTAL HAzARDs...............................................................................14
14. ENVIRONMENTAL STANDARDS...................................................................................................................14
15. CURRENT PREVAILING RATES OF WAGE AND EMPLOYMENT PREFERENCE................................................14
16. CONSTRUCTION PLANS AND SPECIFICATIONS REVIEW...............................................................................15
17. CONSTRUCTION INSURANCE AND BONDING...............................................................................................15
18. OWNERSHIP OF FACILITIES.........................................................................................................................15
19. OPERATION AND MAINTENANCE OF FACILITIES.........................................................................................15
20. PERFORMANCE/OPERATION AND MAINTENANCE(O&M)REPORTING.......................................................16
21. TARIFFS&RATES FOR USE OF GRANT-FUNDED ASSETS............................................................................16
22. GRANT-FUNDED ASSETS NOT INCLUDED WITH PCE..................................................................................16
23. SUBSTANTIAL COMPLETION OF PROJECT....................................................................................................16
24. FORCE ACCOUNT PAYROLL AND PROJECT COORDINATION........................................................................17
APPENDIX C GRANTEE PROPOSAL/SCOPE OF WORK............................................................................17
APPENDIX D PROJECT MANAGEMENT&REPORTING REQUIREMENTS........................................20
1. PROJECT MANAGEMENT.............................................................................................................................20
2. CONTACT PERSONS....................................................................................................................................20
3. MONTHLY PROGRESS AND FINANCIAL REPORTS........................................................................................20
APPENDIX E PROJECT BUDGET&REIMBURSEMENT PROVISIONS...................................................21
1. ALLOWABLE COSTS....................................................................................................................................21
a. Direct Labor&Benefits...........................................................................................................................21
b. Travel, Meals, or Per Diem......................................................................................................................21
C. Equipment.................................................................................................................................................21
d. Supplies....................................................................................................................................................21
e. Contractual services.................................................................................................................................21
f. Construction Services...............................................................................................................................22
g. Other Direct Costs....................................................................................................................................22
2. SPECIFIC EXPENDITURES NOT ALLOWED....................................................................................................22
3. MATCH.......................................................................................................................................................22
4. COST SHARE MATCH REQUIREMENTS........................................................................................................23
5. VALUING IN-KIND SUPPORT AS MATCH.....................................................................................................23
6. GRANT DISBURSEMENTS............................................................................................................................24
7. WITHHOLDING OF GRANT FUNDS...............................................................................................................24
8. ADVANCE DISBURSEMENTS........................................................................................................................24
9. UNEXPENDED GRANT FUNDS AND INTEREST EARNED...............................................................................25
10. BUDGET ADJUSTMENTS AND CHANGES......................................................................................................25
ATTACHMENT 1 FINANCIAL REPORT/REQUEST FOR REIMBURSEMENT FORM..........................26
ATTACHMENT 2 PROGRESS REPORT FORM.............................................................................................27
ATTACHMENT 3 NOTICE OF PROJECT AND GRANT CLOSEOUT........................................................28
ATTACHMENT 4 NOTICE OF SUBSTANTIAL COMPLETION.................................................................29
ATTACHMENT 5 GRANTEE CERTIFICATION............................................................................................30
ATTACHMENT 6 ADVANCE REQUEST FORM............................................................................................33
ATTACHMENT 9 GRANT DOCUMENTS AUTHORIZED SIGNERS FORM............................................34
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APPENDIX A GENERAL PROVISIONS
1. Definitions
In this Grant Agreement, attachments and amendments:
a) "Authority" means the Alaska Energy Authority, a public corporation of the State of
Alaska.
b) "Authority Project Manager" means the employee of the Authority responsible for
assisting the Grantee with technical aspects of the Project and is one of the Grantor's
contacts for the Grantee during all phases of the Project.
c) "Authorized Representatives" means those individuals or entities authorized by an entity
to act on its behalf, with delegated authority sufficient to accomplish the purposes for
which action is needed.
d) "Economic Life" means 20 years from the date of the final disbursement.
e) "Executive Director' means the Executive Director of the Authority or the Executive
Director's authorized representative.
f) "Grantee Project Manager" means the person designated to fulfill the obligations arising
under Appendix B1, item #2.
g) "Matching Contributions" means the cash, loan proceeds, in-kind labor, equipment, land,
other goods, materials, or services a Grantee provides to satisfy any match
requirements of a grant or to complete the Project.
h) "Project" means Heat Pump System for City of Seward as defined in Appendix C (Scope
of Grant) for which funds have been made available.
i) "State" means the State of Alaska.
2. Indemnification
As a condition of this Grant, the Grantee shall indemnify, hold harmless, and defend the
Authority and the State of Alaska from and against any claim of, or liability for, error, omission or
negligent act of the Grantee arising out of, or in any way connected with, this Grant Agreement
or the project for which the Grant is made. The Grantee shall not be required to indemnify the
Authority or State of Alaska for a claim of, or liability for, the independent negligence of the
Authority or State of Alaska agency. If there is a claim of, or liability for, the joint negligent error
or omission of the Grantee and the independent negligence of the Authority or State of Alaska,
the indemnification and hold harmless obligation shall be apportioned on a comparative fault
basis. "Grantee" and "Authority" and "State of Alaska," as used within this section, include the
employees, agents and other contractors who are directly responsible, respectively, to each.
The term "independent negligence" is negligence other than in the Authority's or State of
Alaska's selection, administration, monitoring, or controlling of the Grantee and in approving or
accepting the Grantee's work.
3. Information Technology Risks and Warranties
Neither the Authority nor the State of Alaska makes any warranty, express or implied or
assumes any legal liability or responsibility for the Grantee's use of the software, equipment or
other related services provided by this grant or included in the project for which the grant is
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made. The Grantee understands that although the Authority may procure software services or
equipment on behalf of the grantee, the use of this software, equipment or other related
services is at the Grantee's own risk. The Grantee bears the entire risk of using these services,
such as any damages or liabilities resulting from a cyber-attack or computer virus on its own
computers, communication systems and networks.
The Grantee acknowledges that computer, communications systems and networks are not fault-
free and occasional periods of downtime occur. The Authority and the State of Alaska do not
guarantee these services will be uninterrupted, timely, secure or error-free.
4. Workers' Compensation Insurance
The Grantee shall provide and maintain Workers' Compensation Insurance as required by AS
23.30 for all employees 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.
5. Insurance
The Grantee is responsible for obtaining and maintaining any necessary insurance and
endorsements as defined in Appendix B Standard Provisions
6. 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 Authority
funded projects, that it is an Equal Opportunity Employer (EEO) and that all qualified
applications 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 and
subcontractor.
7. Public Purposes
The Grantee agrees that the Project to which this Grant Agreement relates shall be dedicated to
public purposes and any project constructed or equipment or facilities acquired, shall be owned
and operated for the benefit of the general public. The Grantee shall spend monies
appropriated under this grant only for the purposes specified in the Grant Agreement. 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.
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8. Officials Not to Benefit
No member of or delegate to Congress or the Legislature, or officials or employees of the
Authority or Federal government may share any part of this agreement or any benefit to arise
from it.
9. Governing Law
This Grant Agreement is governed by the laws of the State of Alaska. Any civil action arising
from this Agreement shall be brought in the Superior Court for the Third Judicial District of the
State of Alaska at Anchorage.
10. Compliance with Applicable Law and Funding Source Requirements
The Grantee shall comply with all applicable local, state and federal statutes, regulations,
ordinances and codes, whether or not specifically mentioned herein. Refer to Appendix B
Standard for more specific requirements.
11. Severability
If any section, paragraph, clause or provision of this Agreement is held invalid or unenforceable,
the remainder of this Agreement shall be unaffected and enforced to the fullest extent possible,
and the invalid or unenforceable provision shall be deemed replaced with a valid and
enforceable provision that is as similar as possible to such invalid or unenforceable provision.
12. Non-waiver
The failure of either party at any time to enforce a provision of this Agreement shall in no way
constitute a waiver of the provision, nor in any way affect the validity of this Agreement, or any
part hereof, or the right of such party thereafter to enforce each and every provision hereof.
13. Integration
This instrument and all appendices, amendments, attachments, Request for Applications dated
July 8, 2015 and the Application dated September 15, 2015 hereto embody the entire
Agreement of the parties concerning the grant funds granted hereunder. There are no
promises, terms, conditions, or obligations regarding said funds other than those contained in
the documents described above; and such documents shall supersede all previous
communications, representations or agreements, either oral or written, between the parties
hereto. To the extent there is any conflict between the provisions of Appendix A and B and the
Grantee's application or proposal, the provisions of Appendix A and B prevail.
14. Grantee Not Agent of Authority
The Grantee and any agents and employees of the Grantee act in an independent capacity and
are not officers or employees or agents of the Authority in the performance of this Grant
Agreement.
15. Disputes
Any dispute arising under this Grant Agreement which is not disposed of by mutual agreement
must be dealt with in accordance with 3 AAC 108.915.
16. Termination
a) The Grantee shall have no rights to compensation or damages for termination except as
provided in this Section.
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b) In addition to all other rights available under law, the Authority may terminate this
Agreement or stop work on the Project for the convenience of the Authority or for cause
upon ten (10) days written notice.
c) "Cause" for termination shall exist when the Grantee has failed to perform under this
Agreement, has been stagnant on progression of the project for 2 years, has provided
incorrect or misleading information or has failed to provide information which would have
influenced the Authority's actions. In order for termination to be for cause, the Grantee's
failure to perform or the Grantee's provision of incorrect, misleading, or omitted
information must be material.
d) If this Agreement is terminated for cause, the Grantee shall be entitled to no
compensation. The Grantee shall reimburse the Authority for all grant funds expended
under this Agreement by the Grantee or on the Grantee's behalf including interest
accrued from the date of disbursement. The Grantee shall also reimburse the Authority
for any costs incurred to collect funds subject to reimbursement, and for any damages
incurred by the Authority as a result of the Grantee's failure to perform or provision of
incorrect or misleading information. The Authority may require the Grantee to return to
the Authority some or all of the Project assets and the fair market value of the returned
Project assets will be applied to reduce the amount of reimbursement the Grantee owes
the Authority under this subsection d.
e) If this Agreement is terminated at the sole request of the Authority for the sole reason of
its convenience, the Grantee is not required to reimburse the Authority for funds
expended prior to the date of termination. If the Grantee has incurred costs under this
agreement, the Grantee shall only be reimbursed by the Authority for eligible costs the
Grantee incurred prior to the date of termination of the Agreement. However, prior to
making any claim or demand for such reimbursement, the Grantee shall use its best
effort to reduce the amount of such reimbursement through any means legally available
to it. The Authority's reimbursement to the Grantee shall be limited to the encumbered,
unexpended amount of funds available under this Agreement.
f) If the basis for the termination of the Agreement or stop work under Section 15(b) is
capable of being cured, the Authority shall provide the Grantee thirty (30) days from the
date the termination or stop work becomes effective for the Grantee to cure the basis for
the termination or stop work. If the Grantee cannot reasonably cure the basis for the
termination or stop work within this thirty (30) day period, but the Grantee promptly
undertakes and diligently pursues such cure, the cure period shall be extended to sixty
(60) days. The Authority may further extend the cure period if the Grantee demonstrates
that it is prohibited from curing the basis for termination or stop work by any process,
stay or injunction issued by any governmental authority or pursuant to any bankruptcy or
insolvency proceedings. If the Grantee cures the basis for the stop work, the stop work
will be lifted. Until the Agreement is reinstated or stop work lifted, the Authority may not
disburse any amount under this Agreement to the Grantee except as otherwise
specifically provided in this section.
17. Termination Due to Lack of Funding
In the event funding from the Authority, federal or other sources is withdrawn, reduced, or
limited in any way after the effective date of this agreement and prior to normal completion, the
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Authority may terminate the agreement, reduce funding, or re-negotiate subject to those new
funding conditions.
18. No Assignment or Delegation
The Grantee may not assign or delegate this Grant Agreement, or any part of it, or any right to
any of the money to be paid under it, except with the written consent of the Executive Director or
Designee.
19. No Third Party Beneficiaries
Except as otherwise specified in this agreement, no person is a third party beneficiary of this
Agreement and this Agreement creates no third party rights. Specifically, any person who is not
a party to this Agreement shall be precluded from bringing any action asserting the liability of a
party or asserting any right against a party to this Agreement, through the terms of this
Agreement. No person, other than a party to this Agreement, may bring any action based upon
this Agreement for personal injuries, property damages, or otherwise.
20. No Additional Work or Material
No claims will be allowed for additional work, materials, or equipment, not specifically authorized
in this Grant Agreement, which are performed or furnished by the Grantee.
21. Changes
Any changes which have been agreed to by both parties will be attached and made a part of
this Grant Agreement by use of a written Amendment. Any such Amendment must be dated
and signed by Authorized Representatives of the Authority and the Grantee.
22. Right to Withhold Funds
The Authority may withhold payments under this Grant Agreement for non-compliance with any
of the provisions of this Grant Agreement.
23. Remission of Unexpended Funds
The Grantee shall return all unexpended grant monies to the Authority within 90 days of the
Project completion.
24. Tax Compliance Responsibilities of Grantee
The Grantee is responsible for determining applicable federal, state, and local tax requirements,
for complying with all applicable tax requirements, and for paying all applicable taxes. The
Authority may issue an IRS Form 1099 for Grant payments made. The Grantee shall pay all
federal, state and local taxes incurred by the Grantee and shall require the payment of all
applicable taxes by any contractor or any other persons in the performance of this Grant
Agreement.
25. Lobbying Activities
In accepting these funds, the Grantee agrees and assures that none of the funds will be used
for the purpose of lobbying activities before the United States Congress or Alaska Legislature.
No portion of these funds may be used for lobbying or propaganda purposes as prohibited in AS
37.05.321, 18 U.S.C. 1913, 31 U.S.C. 1352, or other laws as applicable.
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26. Financial Management and Accounting
The Grantee shall establish and maintain a financial management and accounting system that
conforms to generally accepted accounting principles. In addition, the accounting system must
keep separate all grant funds awarded under this grant agreement.
27. Procurement Standards
Grantees will follow competitive purchasing procedures that: 1) provide reasonable competitive
vendor selection for small dollar procurements; 2) provide for competitive bids or requests for
proposals for contracts and procurements greater than $100,000; 3) provide a justification
process for non-competitive procurements or contracts; 4) document the source selection
methods used for all contracts, equipment, or material transactions greater than $10,000.
Grantees who have questions about their procurement procedures or a specific procurement
should contact the Authority's Grant Manager.
28. Reporting Requirements
The Grantee shall submit progress reports to the Authority according to the schedule
established in Appendix D of this Grant Agreement.
29. Ownership of Documents and Products
Except as otherwise specifically agreed, all designs, drawings, specifications, notes, artwork,
computer programs, reports and other work developed with grant funds in the performance of
this agreement are public domain and may be used by the Authority and/or public without notice
or compensation to the Grantee. The Grantee agrees not to assert any rights and not to
establish any claim under the design patent or copyright laws. Except as otherwise specifically
agreed, and without limiting any Intellectual Property requirements of a federal funding agency,
the Authority shall have unlimited rights to use and to disseminate any data produced or
delivered in the performance of the contract. For purposes of clarity, nothing in this section
precludes Grantee from using any document or product with respect to the Project or other
Grantee uses.
30. Inspections and Retention of Records
The Grantee shall keep a file for financial, progress and other records relating to the
performance of the grant agreement. The file must be retained for a period of four years from
the fully executed close out of the grant agreement or until final resolution of any audit findings
claim or litigation related to the grant. The Authority may inspect, in the manner and at
reasonable times it considers appropriate, records and activities under this Grant Agreement.
31. Audits
This Grant Agreement is subject to 2 AAC 45.010 single audit regulations for State Grants. The
Grantee must comply with all provisions of 2 AAC 45.010 and any additional audit requirements
outlined in Appendix D.
Commercial (for-profit) entities shall obtain an audit by an independent auditing firm similar to a
program audit prepared under 2 CFR 200. The auditee and auditor shall have basically the
same responsibilities for the federal or state program as they would have for an audit of a major
program in a single audit. The expenditure threshold is $750,000 in the commercial entity's
fiscal year.
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32. Legal Authority
The Grantee certifies that it possesses legal authority to accept grant funds from 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 Authority and the State of Alaska shall be
at all times as an independent Grantee.
33. Grant Closeout
Upon completion of all work and expenditure of all grant funds related to the Project the
Authority will provide written notice to the Grantee that the Grant will be closed. The Grantee
shall sign the Notice of Project Closeout within 30 days after it is delivered by the Authority. The
Grant will be considered closed upon receipt of the signed Notice of Project Closeout.
The Grant will be administratively closed if the Grantee fails to return the Notice of Project
Closeout within 30 days after it is delivered by the Authority. If the Grantee has a valid reason
for the Grant to remain open, they must contact the Authority in writing within 30 days.
No additional reimbursements will be made to the Grantee after the grant is closed out.
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Appendix B Standard Provisions
1. Grant Funding Sources
This Grant is subject to appropriation and availability of funds as listed below:
State of Alaska $ 725,000 SLA 2018, Ch. 19, Sec. 1, Pg. 2-3, Ln. 3-15, 23-31
Community Match $ 157,497 City of Seward
Total Funding 882, 997
Grantee acknowledges that if additional grant funds are made available they are subject to the
terms and conditions of this Agreement and any amendment.
2. Governing Laws
The Grantee shall perform all aspects of this Project in compliance with all applicable state,
federal and local laws.
3. Documentation and Record Keeping
The Grantee shall maintain the following in their files:
• Grant application;
• Grant agreement and any amendments;
• All written correspondence or copies of emails relating to the Grant;
• Reports, including any consultant work products;
• A separate accounting of grant income and expenditures;
• Supporting documentation for the expenditures charged to the grant (including
supporting documentation for all required matching contributions).
The Authority and any authorized federal representative may inspect, in the manner and at any
reasonable time either considers appropriate, the Grantee's facilities, records, and activities
funded by this Grant Agreement.
4. Eligible Costs
The Authority, as Grantor, shall have sole discretion to determine which project costs are
eligible to be paid from Grant monies under this agreement. Only direct costs of the Project are
eligible for payment or reimbursement from grant funds. Indirect costs are not allowed under this
grant unless approved by the Authority in Appendix E.
The eligible costs will be determined in accordance with 3 AAC 107.600 — 695 and the Request
for Applications dated July 8, 2015; which is incorporated by reference into this grant
agreement.
5. Insurance Requirements
The following insurance requirements are in effect for this Project. Grant funds may be used to
procure Project related insurance and the Authority will work with the Grantee to ensure that
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these requirements are met. Insurance will be obtained with an insurance carrier or carriers
covering injury to persons and property suffered by the State of Alaska, Alaska Energy Authority
or by a third party as a result of operations under this grant. The insurance shall provide
protection against injuries to all employees of the Project engaged in work under this grant. All
insurance policies shall be issued by insurers that (i) are authorized to transact the business of
insurance in the State of Alaska under AS 21 and (ii) have a Bests Rating of at least A-VII and
be required to notify the Authority, in writing, at least 30 days before cancellation of any
coverage or reduction in any limits of liability.
Where specific limits and coverage are shown, it is understood that they shall be the minimum
acceptable and shall not limit the Grantee's indemnity responsibility. However, costs for any
coverage in excess of specific limits of this agreement are the responsibility of the Grantee and
may not be charged to this grant agreement.
The following policies of insurance shall be maintained with the specified minimum coverage
and limits in force at all times during the performance work under this Project:
a. Workers' Compensation: as required by AS 23.30.045, for all employees engaged in
work under this Project. The coverage shall include:
Waiver of subrogation against the State and the Alaska Energy Authority and
Employer's Liability Protection at $500,000 each accident/each employee and
$500,000 policy limit;
b. Commercial General Liability: on an occurrence policy form covering all operations
under this Project with combined single limits not less than:
a. $1,000,000 Each Occurrence;
$1,000,000 Personal Injury;
$1,000,000 General Aggregate; and
$1,000,000 Products-completed Operations Aggregate.
The State of Alaska and Alaska Energy Authority shall be named as an Additional
insured.
c. Automobile Liability: covering all vehicles used in Project work, with combined single
limits no less than $1,000,000 each occurrence.
All of the above insurance coverage shall be considered to be primary and non-contributory to
any other insurance carried by the State of Alaska and Alaska Energy Authority, whether self-
insurance or otherwise.
The Authority's acceptance of deficient evidence of insurance does not constitute a waiver of
Grant requirements.
6. Procurement and Suspension and Debarment
When the Grantee enters into a transaction with an entity for the purchase of goods or services
that are expected to equal or exceed $25,000, or meet other special criteria as specified in 2
CFR section 180.220, the grantee is required to verify that the entity and its principals as
defined in 2 CFR section 180.995, are not suspended or debarred or otherwise excluded from
participating in the transaction. The Grantee must verify the eligibility of the entity and its
principals by one of the following: (1) checking the Excluded Parties List System (EPLS)
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maintained by the General Services Administration (GSA) (Note: EPLS is no longer a separate
system; however, the OMB guidance and agency implementing regulations still refer to it as
EPLS) and available at https://www.sam.gov/portal/public/SAM/), (2) collecting a certification
from the entity, or (3) adding a clause or condition to the covered transaction with that entity
stating it is not suspended or debarred from participating in the transaction (2 CFR section
180.300).
7. Declaration of Public Benefit
The parties acknowledge and agree that the Project shall be constructed, owned and operated
for the benefit of the general public and will not deny any person use and/or benefit of Project
facilities due to race, religion, color, national origin, age, physical handicap, sex, marital status,
changes in marital status, pregnancy or parenthood.
8. Grantee Project Manager
For construction projects, the Grantee will contract or hire competent persons to manage all
phases of the Project. Work at a minimum will include; management of Grantee's labor for the
project, engineering firms and consultants, procurement, management of construction
contractors, selection of equipment, review of plans and specifications, on-site inspections and
review and approval of work, and other duties to ensure that the completed work conforms with
the requirements of the grant and the construction documents.
If the Grantee fails to provide adequate project management the Authority may terminate the
Grant or assume project management responsibilities with the concurrence of the Grantee.
Costs for a Grantee Project Manager must be reasonable to be considered an eligible grant
expense.
9. Approval to Proceed with Next Phase
A grant award may be for one or more phases of a project. The Grantee must achieve
substantial completion of work or of designated grant milestones and receive approval from the
Authority prior to proceeding to the next phase of work.
10. Contracts for Engineering Services
In the event the Grantee contracts for engineering services, the Grantee will require that the
engineering firm certify that it is authorized to do business in the State of Alaska and provide
proof of licensing and required professional liability insurance.
Unless otherwise agreed by the Authority, the insurance required by this section shall, at a
minimum, included professional liability insurance covering all errors, omissions or negligent
acts in the performance of professional services under this agreement, with limits required per
the following schedule:
Contract Amount Minimum Required Limits
Under $ 100,000 $ 300,000 per Occurrence/Annual Aggregate
$ 100,000-$ 499,999 $ 500,000 per Occurrence/Annual Aggregate
$ 500,000-$ 999,999 $ 1,000,000 per Occurrence/Annual Aggregate
$ 1,000,000 or over Refer to Risk Management
11. Site Control
If the grant Project involves the occupancy and use of real property, the Grantee assures that it
has the legal right to occupy and use such real property for the purposes of the grant, and
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further that there is legal access to such property. The Grantee is responsible for securing the
real property interests necessary for the construction and operation of the Project, through
ownership, leasehold, easement, or otherwise, and for providing evidence satisfactory to the
Authority that it has secured these real property interests.
12. Permits
It is the responsibility of the Grantee to identify and ensure that all permits required for the
construction and operation of this Project by the Federal, State, or Local governments have
been obtained unless otherwise stated in Appendix C. These permits may include, but are not
limited to, Corps of Engineers, Environmental Protection Agency, Alaska Department of
Environmental Conservation, State Historic Preservation Office, State Fire Marshal, Alaska
Department of Natural Resources, Alaska Department of Fish and Game and Boroughs.
13. Exclusion of Existing Environmental Hazards
Grant funds for investigation, removal, decommissioning, or remediation of existing
environmental contamination or hazards, are not allowed unless specifically specified and
approved in Appendix C.
14. Environmental Standards
The Grantee will comply with applicable environmental standards, including without limitation
applicable laws for the prevention of pollution, management of hazardous waste, and evaluation
of environmental impacts.
15. Current Prevailing Rates of Wage and Employment Preference
To the extent required by federal and State law construction projects may require certain
Grantees to include the requirements for Davis Bacon and Little Davis Bacon when contracting
for construction services. This requires contractors to pay minimum rates of pay for specific
classes of workers and provide certified payrolls to the State Department of Labor. The current
wage rates can be found at the following web sites:
The Federal wage rates at http://www.wdol.clov/
The State wage rates at http://www.labor.state.ak.us/Iss/pamP600.htm
If federal funding sources require federal Davis Bacon compliance, the Grantee must use both
the Federal and State wage scale and the contractor is required to pay the higher of the State or
Federal wage scale. When only State Funds are used that requires "Little Davis Bacon," the
Grantee is only required to follow the State Rate schedule.
For projects that are only State funded, contractors are also required to use local residents
where they are available and qualified in accordance with AS 36.10.150-180, and 8 AAC 30.064
- 088.
The Grantee is responsible for identifying any other sources of project funds and for ensuring
compliance with applicable wage scales for all sources of project funding. If a Grantee believes
they or their contractors may be exempt from these requirements, they should contact the State
of Alaska Department of Labor and Workforce Development, Wage and Hour Administration, for
a determination and forward a copy of that determination to the Authority's Grant Administrator.
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16. Construction Plans and Specifications Review
Prior to public notice of bidding a construction project the Grantee will provide the plans and
specifications to the Authority for review. Concurrence that the plans and specifications are
consistent with the grant award must be received before grant funds will be released for
construction related costs.
17. Construction Insurance and Bonding
When the value of the construction is anticipated to be greater than $100,000, prior to beginning
construction on a project funded by this grant, the Grantee or Grantee's contractor(s) must
provide the Authority; either a payment and performance bond, as may be required by AS
36.25.010, a surety in form and substance acceptable to the Authority, or some other guarantee
or assurance acceptable to the Authority that the Grantee or the Grantee's contractor has the
capacity, qualifications, and financial resources necessary to complete construction of the
project as proposed in the grant or construction contract(s) funded by this grant. Post
Construction Certification.
Upon completion of construction, the Grantee will submit a final report that includes:
• Certification that all work is completed in accordance with the grant and all costs claimed
are eligible costs and represent work completed on the Project;
• Summary of total project cost including detailed funding sources and any outstanding
debt;
• Certification that there is a release of any contractor or subcontractor liens on the
project;
• Identification of any outstanding construction issues;
• Demonstration that appropriate insurance is in place and,
• As-built drawings.
18. Ownership of Facilities
The Grantee shall assume all liabilities arising from the ownership and operation of the Project.
Grantee will not sell, transfer, encumber, or dispose of any of its interest in the facilities
constructed with this grant funding during the economic life of the project without prior written
approval of the Authority.
19. Operation and Maintenance of Facilities
The Grantee is required to maintain and operate the facilities defined in Appendix C of this
agreement for the economic life of the facility or the specific period of time designated herein.
In the event that the Grantee is no longer operating the facilities for the intended purposes the
Authority may require the Grantee to reimburse the Authority an amount based on the total
contribution of the Authority, the value of the assets, and the terms and conditions of this
agreement. The Authority may require that the assets acquired under this agreement be sold
and the proceeds returned to the Authority.
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20. Performance/Operation and Maintenance (O&M) Reporting
If the grant is for Project construction, the Grantee must provide the Authority with a
Performance/O&M Report annually for ten years after Project completion. The Performance/
O&M Report must include: (1) a detailed description of Project operations and maintenance
activities and issues; and (2) a detailed description of Project performance, including energy
output, estimated fuel savings resulting from the operation of the Project, and any other relevant
measures of Project performance reasonably requested by the Authority, a description of
repairs and modifications to the Project, and recommendations for improvements for similar
future projects.
The Authority may take into account the Grantee's failure to provide the required annual
Performance/O&M Report in evaluating future applications from the Grantee for grant funds.
The Authority encourages Grantees to provide annual Performance/O&M reports for the life of
the Project, and may consider the Grantee's voluntary submittal of annual Performance/O&M
reports beyond the first ten years in evaluating future applications from the Grantee for grant
funds.
21. Tariffs & Rates for Use of Grant-Funded Assets
Rates for power provided as a result of generation or transmission facilities built with grant funds
may be subject to review and approval by the Regulatory Commission of Alaska (RCA), or if the
rates are not subject to RCA review and approval, they may be subject to review and approval
by the Authority to ensure reasonable and appropriate public benefit from the ownership and
operation of the Project.
As a condition of the grant, Independent Power Producers will agree to sell energy resources for
electricity and heat at a cost-based rate for the economic life of the project. The Authority will
hire an independent economist to provide guidance in developing a cost-based rate for electric
sales with an appropriate rate of return on equity.
The allowable cost-based rate represents the highest rate that the Independent Power Producer
will be allowed to charge. Because the cost-based rates are a grant condition, avoided costs
rates or Public Utility Regulations Policies Act (PURPA) rates will not apply for projects which
obtain grant funding.
Application for a Certification of Public Convenience and Necessity (CPCN) is also a grant
condition. RCA action related to the issuance of the CPCN must be completed prior to the
issuance of any construction grant funding.
22. Grant-funded Assets Not Included with PCE
The Grantee agrees that it will not include the value of facilities, equipment, services, or other
benefits received under this grant as expenses under the Power Cost Equalization Program or
as expenses on which wholesale or retail rates or any other energy tariffs are based.
23. Substantial Completion of Project.
Upon substantial completion of the project, the Authority PM shall schedule a site inspection
with the general contractor, the designer of record, the grantee and the Authority. At this
inspection, a punchlist will be generated of outstanding items which must be completed prior to
grant completion. Upon completion of this inspection, the Authority will issue a Notice of
Substantial Completion (NOSC) and identify in this notice, the punchlist items which must be
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completed. When the Notice is issued, the Grantee assumes all responsibility associated with
operating and maintaining the Project, except as specifically provided otherwise herein or by
separate agreement executed by the Authority and the Grantee.
The Grantee may disagree with the substantial completion determination by providing written
notice to the Project Manager within 30 days after receipt of the Notice of Substantial
Completion. The Grantee's written objections disagreeing with the Notice of Substantial
Completion must detail the reasons the Grantee believes the Notice of Substantial Completion
should not be issued. Further the Grantee must explain what the Grantee expects should be
done so the Notice of Substantial Completion can be issued, and when the additional issues
identified can be completed or resolved. The Authority will follow-up within 60 days, letting the
Grantee know if the objections have been accepted, if the Notice of Substantial Completion
stands, or, if the Notice of Substantial Completion is modified.
Within 30 days of final disposition of the Notice of Substantial Completion, the Authority Project
Manager will issue a Certificate of Substantial Completion which will include an updated
punchlist (if one still exists) which will be signed by the general contractor and the Authority.
The date of this certificate shall be the completion date of the Project.
24. Force Account Payroll and Project Coordination
The Grantee will assist the Authority in obtaining qualified local labor for the Project and will
provide necessary local administration assistance, including recommending qualified local
personnel; assisting in obtaining necessary personnel information; assisting in obtaining
housing for nonresident workers; facilitating communications between the Authority, the
community and local employees; and serving as a liaison between the Authority and the
community.
Appendix C Grantee Proposal/Scope of work
This grant to the City of Seward (City) is for the design and construction of a Ground
Source Heat Pump (GSHP) which will draw heat from nearby Resurrection Bay to heat
a heating district containing four existing City buildings, with potential for future
expansion:
• Library - 24,323 ft2
• City Annex - 8,192 ft2
• City Hall - 20,532 ft2
• Fire Hall - 7,262 ft2
• (future) Adams Street Shower House - 800 ft2
A field of vertical boreholes will be drilled on City land adjacent to the water front; piping
will be used in these boreholes and charged with a heat transfer fluid in a closed system
to provide heat to the heating district.
High efficiency water to water heat pumps, one buffer tank, and loop pumps will be
installed in the existing mechanical rooms of the Library and City Hall. One buffer tank
will be installed in the Annex, and the Fire Hall. One existing heating oil boiler will
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remain in each building to serve as a backup boiler, these back-up boilers will be
integrated into the heating system of their respective buildings along with buffer/storage
tanks.
This system is estimated to provide at least 96% of the current heating loads of the
buildings, and to displace roughly 20,020 gallons of heating oil annually.
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Budget:
Reimbursable Grant Match Total Start End
Milestones Tasks Budget Budget Budget Date Date Deliverables
Reconnaissance $0 $10,000 $10,000
Jan Dec
Construct test well 2015 2015 Test well
Collect and Localized water
evaluate water Jan Dec table thermal
column data 2015 2015 profile
Design Phase $68,440 $68,440 $136,880
Select Design Oct Oct
Team 2018 2018 Solicitation, NTP
Design Team Oct Oct Scoping Meeting
Scope Mtg. 2018 2018 Minutes
Complete Design Oct Nov Memo w/cost
Memo 2018 2018 opinion
Complete 65% Dec Jan Plans, Specs, cost
Design 2018 2018 1 opinion
Complete 100% Feb Feb Plans, Specs, cost
Design 2019 2019 opinion
Update Economic Mar Mar
Analysis 2019 2019 Economic Analysis
Construction Phase $584,060 $79,057 $663,117
Prepare Bid Apr Apr
Package 2019 2019
May May
Advertise For Bids 2019 2019 Bid Advertisement
Jun Jun
Review Bids 2019 2019
Notice of Award
Jul Jul Procure long lead
Award Bid 2019 2019 items
Pre-Construction Aug Aug Conference
Conference 2019 2019 Minutes
Aug Sep
Submittal Reviews 2019 2019 Progress Report
Contractor Sep Sep
Mobilizes 2019 2019 Progress Report
Stake Out/Line Sep Sep
Locates 2019 2019 Progress Report
Drill/Install Vertical Sep Nov
Loos 2019 1 2019 Progress Report
Construct Sep Nov
Mains/Laterals 2019 2019 Progress Report
Mech./Elect Inside Sep Nov
Bldgs. 2019 2019 Progress Report
Construct Loop Nov Nov
Manifold 2019 2019 Progress Report
Pressure Test Nov Nov
System 2019 2019 Progress Report
System Start Nov Nov
Up/Testing Up/Testing 2019 2019 Pro ress Report
Punch List Nov Nov
Items/Testing 2019 2019 Progress Report
Close Out
Certificate
Final as-
Nov Dec built/redline
Close Out Final Punch List $72,500 0 $72,500 2019 2019 drawings
TOTAL
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Appendix D Project Management & Reporting Requirements
1. Project Management
The Grantee will notify the Authority immediately of any significant organizational changes
during the term of the grant, including changes in key personnel or tax status, any unforeseen
problem or project delay that may cause a change to the work plan or budget or that may
otherwise affect the Grantee's ability to perform its commitments under this Grant Agreement.
Any unreported or unapproved changes to the work plan or budget evident in reports may result
in an amendment being required, costs disallowed, suspension or termination of the grant as
described in Appendix A.
2. Contact Persons
For the Grantee For The Authority
Grant Manager Grant Manager
Brennan Hickok Shawn Calfa, Grants Administrator
PO Box 167 813 W. Northern Lights Blvd.
Seward, Alaska 99664 Anchorage, Alaska 99503
bhickok(a)-cityofseward.net scalfaCa)aidea.org
907-224-4020 907-771-3031
Project Manager Project Manager
Doug Schoessler Dan Smith
PO Box 167 813 W. Northern Lights Blvd.
Seward. Ak 99664 Anchorage, Alaska 99503
dougCa)_cityofseward.net dsmithCa)_akenergyauthority.org
907-224-4093 907-771-3983
3. Monthly Progress and Financial Reports
The Grantee will provide monthly progress and financial reports by email (or other method
allowed by the Authority, if email is not available) to the Authority Project Manager. These
reports are due starting the first full month after the execution of this Agreement. This report
must update the Authority on the project's progress, regulatory and compliance issues, possible
delays, and grant expenditures during the month. These Monthly Progress Reports, which are
due within 30 days of the end of the previous month, must summarize, in one or two pages, the
progress made on grant tasks during the month and identify any difficulties in completing tasks
or meeting goals or deadlines. The Grantee must also include with the report copies of any
work products due to the Authority during this period.
Reports are considered late five 5 days after the due date. No further payments will be made
without submission and approval of required reports. Work completed after the twenty-day
period when required reports have not been submitted is at the Grantee's risk, and costs
incurred may be disallowed. Repeated failure to submit reports in a timely manner could result
in suspension or termination of the grant.
All reports and deliverables required in this agreement must have been submitted and approved
by the Authority prior to the final payment being released.
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Appendix E Project Budget & Reimbursement Provisions
1. Allowable Costs
Allowable costs under this grant include all reasonable and ordinary costs for direct labor &
benefits, travel, equipment, supplies, contractual services, construction services, and other
direct costs identified and approved in the Project budget that are necessary for and incurred as
a direct result of the Project and consistent with the requirements noted in Appendix B 4 Eligible
Costs.
A cost is reasonable and ordinary if, in its nature and amount, it does not exceed that which
would be incurred by a prudent person under the circumstances prevailing at the time the
decision was made to incur the costs.
Allowable costs are only those costs that are directly related to activities authorized by the Grant
Agreement and necessary for the Project. The categories of costs and additional limits or
restrictions are listed below:
a. Direct Labor & Benefits
Include salaries, wages, and employee benefits of the Grantee's employees for that portion
of those costs attributable to the time actually devoted by each employee to, and necessary
for the Project. Direct labor costs do not include bonuses, stock options, other payments
above base compensation and employee benefits, severance payments or other termination
allowances paid to the Grantee's employees.
b. Travel, Meals, or Per Diem
Include reasonable travel expenses necessary for the Project. These include necessary
transportation and meal expenses or per diem of Grantee employees for which expenses
the employees are reimbursed under the Grantee's standard written operating practice for
travel and per diem or the current State of Alaska Administrative Manual for employee
travel.
c. Equipment
Include costs of acquiring, transporting, leasing, installing, operating, and maintaining
equipment necessary for the Project, including sales and use taxes.
Subject to prior approval by the Authority Project Manager, costs or expenses necessary to
repair or replace equipment damage or losses incurred in performance of work under the
grant may be allowed. However, damage or losses that result from the Grantee's
employees, officer's, or contractor's gross negligence, willful misconduct, or criminal conduct
will not be allowed.
d. Supplies
Include costs of material, office expenses, communications, computers, and supplies
purchased or leased by the Grantee necessary for the Project.
e. Contractual services
Include the Grantee's cost of contract services necessary for the Project. Services may
include costs of contract feasibility studies, project management services, engineering and
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design, environmental studies, field studies, and surveys for the project as well as costs
incurred to comply with ecological, environmental, and health and safety laws.
f. Construction Services
For construction projects this includes the Grantee's cost for construction contracts, labor,
equipment, materials, insurance, bonding, and transportation necessary for the Project.
Work performed by the Grantee's employees during construction may be budgeted under
direct labor and benefits. Contracted project management or engineering may be budgeted
under contractual services and major equipment purchases made by the Grantee may be
budgeted under equipment.
g. Other Direct Costs
In addition to the above the following expenses necessary for the Project may be allowed.
• Net insurance premiums paid for insurance required for the grant Project;
• Costs of permits and licenses for the grant Project;
• Non-litigation legal costs for the Project directly relating to the activities; in this
paragraph, "non-litigation legal costs" includes expenses for the Grantee's legal staff and
outside legal counsel performing non-litigation legal services;
• Office lease/rental payments;
• Other direct costs for the Project directly relating to the activities and identified in the
grant documents; and/or
• Land or other real property or reasonable and ordinary costs related to interests in land
including easements, right-of-ways, or other defined interests.
2. Specific Expenditures not allowed
Ineligible expenditures include costs for overhead, lobbying, entertainment, alcohol, litigation,
payments for civil or criminal restitution, judgments, interest on judgments, penalties, fines,
costs not necessary for and directly related to the grant Project, or any costs incurred before the
beginning date of the grant as indicated on the signature page.
Overhead costs described in this section include:
• Salaries, wages, applicable employee benefits, and business-related expenses of the
Grantee's employees performing functions not directly related to the grant Project;
• Office and other expenses not directly related to the grant Project; and
• Costs and expenses of administration, accounting, human resources, training, property and
income taxes, entertainment, self-insurance, and warehousing.
3. Match
The Grantee is required to provide $ 157,497 in match for this Project. Cash match will be
applied based on a percentage basis unless otherwise specified in the budget in Appendix C.
In-kind match will be applied based on the budget in Appendix C.
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4. Cost Share Match Requirements
Cost sharing or matching is that portion of the Project costs not borne by the Authority. The
Authority will accept all contributions, including cash and in-kind, as part of the Grantees' cost
sharing or matching when such contributions meet the following criteria:
• Are provided for in the Project budget;
• Are verifiable from the Grantee's records;
• Are not included as contributions for another state or federally assisted project or
program; (The same funds cannot be counted as match for more than one program.)
• Are necessary and reasonable for proper and efficient accomplishment of the Project or
program objectives;
• Are allowable costs;
• Are not paid by the State or federal government under another award, except for those
authorized by the State or federal statute to be used for cost sharing or matching;
• Must be incurred within the grant eligible time period. The Authority may allow cost
sharing or matching contributions that occurred prior to the grant eligible time period for
projects that involve construction.
5. Valuing In-Kind Support as Match
If the Grantee chooses to use in-kind support as part of or its entire match, the values of those
contributions must be approved by the Authority at the time the budget is approved. The values
will be determined as follows:
• The value of real property will be the current fair market value as determined by an
independent third party or a valuation that is mutually agreed to by the Authority and the
Grantee and approved in the grant budget.
• The value assessed to Grantee equipment or supplies will not exceed the fair market
value of the equipment or supplies at the time the grant is approved or amended.
• Equipment usage will be valued based on approved usage rates that are determined in
accordance with the usual accounting policies of the recipient or the rates for equipment
that would be charged if procured through a competitive process. Rates paid will not
exceed the fair market value of the equipment if purchased.
• Rates for donated personal services will be based on rates paid for similar work and skill
level in the recipient's organization. If the required skills are not found in the recipient
organization, rates will be based on rates paid for similar work in the labor market.
Fringe benefits that are reasonable, allowable, and allocable may be included in the
valuation.
• Transportation and lodging provided by the Grantee for non-local labor will not exceed
the commercial rates that may be available within the community or region.
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6. Grant Disbursements
The Grantee must request disbursement of grant funds in the form and format required by the
Authority with appropriate back-up documentation and certifications. (See Attachment 1).
Reimbursements are made for actual costs incurred and must be for approved milestones. The
back-up documentation must demonstrate the total costs incurred are allowable, and reflect the
amount being billed. Documentation must include:
• A ledger summarizing cost being billed;
• A summary of direct labor costs supported by timesheets or other valid time record to
document proof of payment;
• Travel and per-diem reimbursement documentation;
• Contractor or vendor pay requests;
• Itemized invoices and receipts; and
• Detailed ledger of costs being charged to this grant.
Additionally, the Grantee may be required to provide proof of payment of the incurred costs at
the request of the Authority.
Payment of grant funds will be subject to the Grantee complying with its matching contribution
requirements of the Grant.
Payment of grant funds will be made by the Authority to the Grantee within 30 days from receipt
of a properly completed, supported, and certified Reimbursement Request (See Attachment 1).
7. Withholding of Grant Funds
If, upon review of the monthly billings, the Authority discovers errors or omissions in the billings
it will notify the Grantee within thirty (30) days of receipt of the billing. Payment for the portion of
billings for which there is an error or omission may be withheld pending clarification by Grantee.
Grant funds may be withheld for the following reasons:
• The Grantee fails to provide adequate back-up documentation.
• The Authority determines that a specific expense is not allowed under the grant.
• The Grantee's matching contribution requirements are not met.
Up to 10% of the Authority's contribution of grant funds may be retained by the Authority until
the Project is completed and all required final documentation and reports are received and
accepted by the Authority.
8. Advance Disbursements
In most instances, payments to a Grantee will be made on a cost reimbursable basis. If the
Authority determines that cost reimbursement will significantly inhibit the Grantee's ability to
perform the Project and determines that an advance is in the public interest, the Authority may
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Heat Pump System for City of Seward
Grant Agreement#7091242
recommend an advance to the Grantee of an amount not to exceed a projected thirty (30) day
cash need, or twenty percent (20%) of the grant amount, whichever amount is less.
Before the Authority will issue an advance, the Grantee must provide in writing, and the
Authority must approve a "Request for Advance Payment" form which includes:
• justification of the need for the advance;
• documentation of anticipated line item costs associated with the advance.
All advances will be recovered with the Grantee's next Financial/Progress Report form. Should
earned payments during the terms of this Grant Agreement be insufficient to recover the full
amount of the advance, the Grantee will repay the unrecovered amount to the Authority when
requested to do so by the Authority, or at termination of the Grant Agreement.
9. Unexpended Grant Funds and Interest Earned
Any grant funds not expended under this agreement and any interest accruing on the grant
funds belong to the Authority and shall be returned to the Authority.
10. Budget Adjustments and Changes
When a Grantee faces increased unbudgeted costs, the Grantee should contact the Authority
Project Manager. Budget adjustments cannot increase the grant award amount. Cost overruns
that may require reduced scope of work will require Authority approval and an amendment to
the grant. If a budget adjustment or other changes indicate to the Authority Project Manager
that the project cannot be completed as currently planned and budgeted for, the Authority
Project Manager will not approve the release of additional grant funds until the Grantee provides
sufficient information on how the Grantee intends to complete the revised project.
Budget Adjustments
The Grantee shall identify budget changes on its Financial Reports submitted to the Authority.
At least quarterly, the Authority will compare actual costs to budgeted distributions based on the
Financial Report/Request for Reimbursement form. Costs charged to grant funds must reflect
adjustments made as a result of the activity actually performed. The budget estimates or other
distribution percentages must be revised at least quarterly, if necessary, to reflect changed
circumstances.
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Heat Pump System for City of Seward
Grant Agreement#7091242
Attachment 1 Financial Report/Request for Reimbursement Form
THIS REQUEST IS FOR FINAL PAYMENT ❑
Grantee: City of Seward Project: Heat Pump System for City of Seward
Period: to Grant Number: 7091242
C D=B+C E=A-D
BUDGET RANT BUDGET HATCHING OTAL BUDGET PRIOR EXPENDITURES TOTAL RANT BALANCE
SUMMARY UDGET EXPENDITURES THIS PERIOD EXPENDITURES
BY TASK OR MILESTONE
Reconnaissance $0 $10,000 $10,000
Design Phase $68,440 $68,440 $136,880
Construction Phase $584,060 $79,057 $663,117
Close Out $72,500 L02 $72,500
TOTAL W&W I $$$
BY BUDGET CATEGORIES
Direct Labor and $68,440 $68,440 $136,880
Benefits
Travel $0 $0 $0
Equipment $0 $0 $0
Contractual Services $0 $0 $0
Construction $584,060 $79,057 $663,117
Se rvi ces
Other $72,500 $10,000 $82,500
TOTAL
BY FUND SOURCES
Grant Funds-SOA $725,000 $0 $725,000
Grantee Match-Cash $0 $147,497 $147,497
Grantee Match-In- 50 $10,000 $10,000
Kind
TOTAL $Z24 $$$
Please submit this form and the supporting documentation to aeapayables(2aidea.org
CERTIFICATION
Form requires two original signatures. The person certifying must be different from the person preparing the report. One signature should be the authorized
representative of the Grantee organization or highest ranking officer;the other should be the person who prepared the report.
I certify to the best of my knowledge and belief that the information reported on both the Financial Report above and the attached Progress
Report are correct.In addition,funds were spent and work performed in accordance with the grant agreement terms and conditions.
Certified By: Prepared By:
Printed Name: Printed Name:
Title: Date: Title: Date:
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Heat Pump System for City of Seward
Grant Agreement#7091242
Attachment 2 Progress Report Form
Grantee: City of Seward
Project Name: Heat Pump System for City of Seward
Grant # 7091242
Period of Report: to
Project Activities Completed:
Existing or Potential Problems:
Activities Targeted for Next Reporting Period:
Prepared By: Date:
Printed Name:
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Heat Pump System for City of Seward
Grant Agreement#7091242
Attachment 3 Notice of Project and Grant Closeout
NOTICE OF PROJECT AND GRANT CLOSEOUT
ALASKA ENERGY AUTHORITY
Project Name: Heat Pump System for City of Seward
Grantee: City of Seward
Grant Number: 7091242
The Alaska Energy Authority certifies and acknowledges that the Project referenced above has
been completed, and that all tasks have been satisfactorily carried out in accordance with the
terms and conditions of Agreement Number: 7091242.
Project Manager Date
Alaska Energy Authority
City of Seward certifies that the Project named above is complete in accordance with the terms
and conditions of Alaska Energy Authority Agreement Number: 7091242.
City of Seward also certifies that, we have been reimbursed for all eligible expenses pertaining
to 7091242, and that as of the date of signature, no further reimbursements will be requested for
any activity related to the Project identified above.
Pursuant to Appendix B #20 `Performance/Operation and Maintenance (O&M) Reporting', the
Grantee is required to provide detailed reports annually, for ten years.
Total project cost $
The total project cost should include all expenses related to this grant funded project (grants,
loans, match, etc.). It should include design and construction costs, but should not include
feasibility and reconnaissance work.
Notes/comments: Please attach on a separate page
Authorized Signature Title
Printed Name Date
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Heat Pump System for City of Seward
Grant Agreement#7091242
Attachment 4 Notice of Substantial Completion
NOTICE OF SUBSTANTIAL COMPLETION
ALASKA ENERGY AUTHORITY
Project Name: Heat Pump System for City of Seward
Grantee: City of Seward
Grant Number: 7091242
The Alaska Energy Authority (the Authority) issues this notice that the Authority has determined
that all tasks associated with the Project referenced above have been substantially completed
in accordance with the terms and conditions of Agreement Number: 7091242 (Agreement), with
the exception of outstanding work items identified in the Exhibit A.
Under Appendix B, No. 23 of the Agreement, the Authority issuing this Notice means the
Grantee assumes all responsibility associated with operating and maintaining the Project,
except as specifically provided otherwise in the Agreement or by separate agreement executed
by the Authority and the Grantee.
The Grantee may disagree with the substantial completion determination by providing written
notice to the Project Manager within 30 days after receipt of the Notice of Substantial
Completion. The Grantee's written objections disagreeing with the Notice of Substantial
Completion must detail the reasons the Grantee believes the Notice of Substantial Completion
should not be issued. Further the Grantee must explain what the Grantee expects should be
done so the Notice of Substantial Completion can be issued, and when the additional issues
identified can be completed or resolved. The Authority will follow-up within 60 days, letting the
Grantee know if the objections have been accepted, if the Notice of Substantial Completion
stands, or, if the Notice of Substantial Completion is modified.
Within 30 days of final disposition of the Notice of Substantial Completion, the Authority Project
Manager will issue a Certificate of Substantial Completion which will include an updated
punchlist (if one still exists) which will be signed by the general contractor and the Authority.
The date of this certificate shall be the completion date of the Project.
Authority Project Manager Date
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Heat Pump System for City of Seward
Grant Agreement#7091242
Attachment 5 Grantee Certification
CERTIFICATION OF GRANTEE AND LOWER-TIER PARTICIPANTS
REGARDING DEBARMENT, SUSPENSION, AND OTHER INELIGIBILITY AND
VOLUNTARY EXCLUSION
Grantee
City of Seward
PO Box 167
Seward, AK 99664
I, hereby certify on behalf
(Name and title of official)
of City of Seward that:
(1) The prospective Grantee and lower tier participant certifies, by submission of
this letter, that neither it nor its "principals" [as defined at 49 C.F.R. §
29.105(p)] is presently debarred, suspended, proposed for debarment, declared
ineligible, or voluntarily excluded from participation in this transaction by any
Federal department or agency. In the event, your company or any principals
become ineligible from participating in federally funded transactions, you are
required to notify us immediately.
(2) When the prospective Grantee and lower tier participant is unable to
certify to the statements in this certification, such prospective participant
shall attach an explanation to this proposal.
Executed this day of , 20
By:
(Signature of authorized official)
(Title of authorized official)
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Heat Pump System for City of Seward
Grant Agreement#7091242
DEBARMENT,SUSPENSION,INELIGIBILITY&VOLUNTARY EXCLUSION-49 CFR Part 29; Executive Order 12549
[Applicable to all Federal-aid contracts which exceed$25,000]
Instructions for Certification:
1. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was
entered into. If it is later determined that the prospective Grantee and lower tier participants knowingly rendered an erroneous
certification,in addition to other remedies available to the Federal Government,THE AUTHORITY may pursue available remedies,
including suspension and/or debarment.
2. The prospective Grantee and lower tier participants shall provide immediate written notice to THE AUTHORITY if at anytime
the prospective Grantee and lower tier participants learns that its certification was erroneous when submitted or has become erroneous
by reason of changed circumstances.
3. The terms"covered transaction,""debarred," "suspended," "ineligible," "lower tier covered transaction," "participant," "persons,"
"lower tier covered transaction,""principal,""proposal,"and voluntarily excluded,"as used in this clause,have the meanings set out in
the Definitions and Coverage sections of rules implementing Executive Order 12549 [49 CFR Part 29]. You may contact THE
AUTHORITY for assistance in obtaining a copy of those regulations.
4. The prospective Grantee and lower tier participants agrees by submitting this proposal that, should the proposed covered
transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred,
suspended,declared ineligible,or voluntarily excluded from participation in this covered transaction,unless authorized in writing by
THE AUTHORITY.
5. The prospective Grantee and lower tier participants further agrees by submitting this proposal that it will include the clause titled
"Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier Covered Transaction", without
modification,in all lower tier covered transactions and in all solicitations for lower tier covered transactions.
6. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction
that it is not debarred,suspended,ineligible,or voluntarily excluded from the covered transaction,unless it knows that the certification
is erroneous. A participant may decide the method and frequency by which it determines the eligibility of its principals. Each
participant may,but is not required to,check the Non-procurement List issued by U.S.General Service Administration.
7. Nothing contained in the foregoing shall be construed to require establishment of system of records in order to render in good
faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is
normally possessed by a prudent person in the ordinary course of business dealings.
8. Except for transactions authorized under Paragraph 5 of these instructions, if a participant in a covered transaction knowingly
enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from
participation in this transaction, in addition to all remedies available to the Federal Government, THE AUTHORITY may pursue
available remedies including suspension and/or debarment.
Certification Regarding Debarment,Suspension,Ineligibility and Voluntary Exclusion Lower Tier Covered Transaction
(1) The prospective Grantee and lower tier participants certifies, by submission of this bid or proposal, that neither it nor its
"principals" [as defined at 49 CFR §29.105(p)] is presently debarred, suspended, proposed for debarment, declared ineligible, or
voluntarily excluded from participation in this transaction by any Federal department or agency.
(2) When the prospective Grantee and lower tier participants is unable to certify to the statements in this certification, such
prospective participant shall attach an explanation to this proposal.
The Grantee,City of Seward certifies or affirms the truthfulness and accuracy of each statement of its certification and disclosure,if
any. In addition, the Grantee understands and agrees that the provisions of, 49 CFR§29 apply to this certification and disclosure, if
any.
Signature of Grantee's Authorized Official:
Name and Title of Grantee's Authorized Official:
Date:
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Heat Pump System for City of Seward
Grant Agreement#7091242
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Heat Pump System for City of Seward
Grant Agreement#7091242
Attachment 6 Advance Request Form
,4 LAS KA
ENERGY
AUTHORITY
GRANTS SECTION
REQUEST FOR ADVANCE PAYMENT
Instructions:
(1) Fill in the Grantee, Grant Number, Project Title, Amount Requested, and Date.
(2) Read the language in Appendix E of the Grant Agreement(Advance Disbursements provision).
(3) Check the boxes to confirm that the advance is justified and that you have read and understood
the conditions under which the advance will be approved and recovered by the Authority.
(4) Provide a brief narrative explaining the proposed use of the advanced funds.
(5) Attach documentation of costs associated with the requested advance (i.e., price quotes or cost
estimates, invoices, a spreadsheet outlining projected payroll, etc.)
Grantee: Grant Number:
City of Seward 7091242
Project Title: Date:
Heat Pump System for City of Seward
Amount Requested:
❑ The Grantee confirms that the advance is necessary due to a lack of cash on hand to
administer the grant on a cost-reimbursable basis.
❑ The Grantee understands the conditions under which the Authority will recover the advance.
Explain how the advance will be used. Attach additional pages if necessary.
Grantee Certification: I certify that the above information is true and correct, and that expenditures will be
made for the purpose of, and in accordance with, applicable grant agreement terms and conditions.
Signature Date
Name and Title
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Heat Pump System for City of Seward
Grant Agreement#7091242
Attachment 7 Grant Documents Authorized Signers Form
Community/Grantee Name:
Regular Election is held: Date:
Printed Name Title Term Signature
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Mailing Address:
Phone Number:
Fax Number:
E-mail Address:
Federal Tax ID #:
Please submit an updated form whenever there is a change to the above information.
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