18 AAC 76.245. Financial assistance conditions

(a) The borrower shall

(1) establish and pledge one or more dedicated sources of revenue for repayment of the financial assistance;

(2) award any construction contract estimated to equal or exceed $50,000 through a competitive bidding process unless the department approves another procedure; a construction contract estimated to be less than $50,000 may be negotiated if the department approves the solicitation and negotiation procedures;

(3) for a construction project, submit for department review and approval

(A) a tabulation of bids received; and

(B) a copy of the executed construction contract, which must be awarded to the lowest responsive, responsible bidder unless this requirement is waived by the department;

(4) construct a project capable of operating in accordance with the approved plans and specifications;

(5) if required by the department, prepare and submit for department approval a facility operation and maintenance manual;

(6) provide for a user fee system and an ordinance that meets department approval, unless this requirement is waived by the department;

(7) use accounting, audit, and fiscal procedures that conform to generally accepted accounting principles;

(8) maintain project accounts and records until the project field audit is performed and all audit issues are resolved;

(9) ensure that contracted wages paid for the construction of the facility conform to the prevailing wage rates established for the locality by the Alaska Department of Labor and Workforce Development under AS 36.05.010 ;

(10) require the construction contractor to furnish performance and payment bonds in accordance with AS 36.25.010 ; and

(11) submit change orders for department approval.

(b) The department will, in its discretion, make site visits to inspect construction progress and to determine compliance with 18 AAC 76.200 - 18 AAC 76.265.

(c) If funding is available, and if the department approves a change order submitted under (a)(11) of this section, the department will, in its discretion, amend the financial assistance agreement to reflect any change in project cost.

(d) The department will, in its discretion, revoke a financial assistance agreement if the borrower has not begun construction within one year after signing the agreement.

(e) Based on the information provided in 18 AAC 76.225, 18 AAC 76.230 and 18 AAC 76.240, the terms and conditions of each financial assistance agreement will be set on a case-by-case basis.

History: Eff. 8/2/97, Register 143; am 12/29/2000, Register 156

Authority: AS 46.03.020

AS 46.03.036

AS 46.03.720

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