Grant Administration Agreement (31K)
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GRANT ADMINISTRATION AGREEMENT
THIS AGREEMENT (the "Agreement") is made and entered into this 30th day
of August, 1994, by and between the ALASKA INDUSTRIAL DEVELOPMENT & EXPORT
AUTHORITY ("AIDEA") GOLDEN VALLEY ELECTRIC ASSOCIATION, INC. ("GVEA"), FAIRBANKS
MUNICIPAL UTILITIES SYSTEM ("FMUS"), ANCHORAGE MUNICIPAL LIGHT AND POWER
("ML&P"), CHUGACH ELECTRIC ASSOCIATION, INC. ("CEA"), ALASKA ELECTRIC GENERATION
AND TRANSMISSION COOPERATIVE, INC. ("AEG&T") on behalf of its members (Matanuska
Electric Association, Inc. and Homer Electric Association, Inc.), and the CITY
OF SEWARD ("Seward") (ML&P, CEA, AEG&T and Seward hereinafter collectively
referred to as the "Southern Participating Utilities"; GVEA and FMUS hereinafter
collectively referred to as the "Northern Participating Utilities"; the Southern
Participating Utilities and the Northern Participating Utilities hereinafter
collectively referred to as the "Participating Utilities").
RECITALS
WHEREAS, pursuant to Section 1 ch. 19, SLA 1993, the Legislature
appropriated $43,200,000 to the Department of Administration ("DOA") for payment
as a grant under AS 37.05.316 to GVEA for the purpose of constructing a power
transmission intertie between Healy and Fairbanks ("Healy-Fairbanks Intertie")
to benefit all utilities participating in the intertie; and
WHEREAS, pursuant to Section 2 of ch. 3.9, SLA 1993 (Sections 1 and 2
of ch.19, SLA 1993 hereinafter referred to as the "Intertie Appropriation"), the
Legislature appropriated $46,800,000 to DOA for payment as a grant under AS
37.05.316 to CEA for the purpose of constructing a power transmission intertie
between Anchorage and the Kenai Peninsula ("Anchorage-Kenai Intertie") to
benefit all utilities participating in the intertie (the two intertie
appropriations are hereinafter collectively referred to as the "Intertie
Grants"); and
WHEREAS, pursuant to Section 1(b) and (C) and Section 2(b) and (c) of
the Intertie Appropriation, DOA, AIDEA, and the Participating Utilities were to
enter into a written agreement satisfying certain statutory conditions precedent
to DOA's transfer of the Intertie Grants; and
WHEREAS, in order to satisfy such requirement, DOA, AIDEA, and the
Participating Utilities have entered into an Intertie Grant Agreement (the
"Intertie Grant Agreement"), which among other things, provides that the
Intertie Grants are to be transferred to AIDEA for the benefit of the
Participating Utilities, and that certain conditions are to be met prior to
AIDEA releasing any of the grant funds to the Participating Utilities; and
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WHEREAS, also as part of the Intertie Grant Agreement, the
Participating Utilities have agreed to form an Intertie Participants Group
("IPG") to, among other things, oversee the construction of the interties and
address grant expenditure matters; and
WHEREAS, pursuant to the Intertie Grant Agreement, DOA and AIDEA have
entered into a Grant Transfer and Delegation Agreement ("Grant Transfer
Agreement") whereby the Intertie Grants were transferred to AIDEA to act as
custodian and administrator of the Intertie Grants; and
WHEREAS, Section 7 of the Intertie Grant Agreement requires that AIDEA
and the Participating Utilities enter into a Grant Administration Agreement
which shall set forth the terms and conditions to be satisfied by the
Participating Utilities in order for there to be a disbursement of the Intertie
Grants, and which shall also provide for AIDEA's obligations with respect to the
Intertie Grants.
AGREEMENT
NOW, THEREFORE, in consideration of the recitals above (which are
hereby incorporated into and shall be deemed part of this Agreement), and of the
covenants and agreements hereinafter set forth, it is agreed by and between the
parties hereto as follows:
Section 1. Custodian and Administrator. The parties acknowledge that
pursuant to the Grant Transfer Agreement, DOA has delegated all its powers arid
duties with respect to the administration of the Intertie Grants to AIDEA and
that the Intertie Grants have been transferred from DOA to AIDEA for the benefit
of the Participating Utilities. The Participating Utilities have requested that
AIDEA serve as custodian and administrator of the Intertie Grants. AIDEA hereby
accepts such appointment and agrees to act as custodian and administrator of the
Intertie Grants for the benefit of the Participating Utilities, subject to the
terms and conditions of, and authority and powers granted by, this Agreement and
applicable law, including but not limited to those statutes and regulations
applicable to the administration of grants to named recipients under AS
37.05.316 by the DOA..
Section 2. Custody/Investment of Grant Funds.
2.01. Appropriation Accounts. AIDEA shall establish two appropriation
accounts to account for and to disburse the Intertie Grants. One account shall
be designated the "Healy-Fairbanks Intertie Account" which shall be comprised of
the $43,200,000 appropriation made by Section 1 of the Intertie Appropriation
and all interest arid other income to be earned thereon. The other account shall
be designated the "Anchorage-Kenai Intertie Account" which shall be comprised of
the $46,800,000 appropriation made by Section 2 of the Intertie Appropriation
and all interest and other income to be earned thereon (the monies collectively
comprising the Healy-Fairbanks Intertie Account and the Anchorage-Kenai Intertie
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