Title 3 . Commerce, Community, and Economic Development

Chapter 154 . Small Municipality Energy Assistance Program

Section 120. Valuation and verification of local share

3 AAC 154.120. Valuation and verification of local share

(a) Repealed 12/31/93.

(b) The department will determine the value of labor contributed as local share under AS 37.06.030 (a)(3)(B) based on prevailing wage standards established by the Department of Labor and Workforce Development.

(c) The department will determine the value of materials contributed as local share under AS 37.06.030 (a)(3)(B) based on factors considered relevant by the department, including

(1) the prevailing market costs for new or used materials, as appropriate;

(2) the municipality's internal rates for the purchase of similar materials, based on the municipality's contracts, leases, and invoices during the preceding two fiscal years; and

(3) in the department's discretion, a negotiated agreement between the department and the municipality.

(d) The department will determine the value of new or used equipment contributed as local share under AS 37.06.030 (a)(3)(B) based on factors considered relevant by the department, including

(1) the prevailing values and rental rates for equipment contained in the following industry standard manuals in publication at the time the department determines the value or rate:

(A) Rental Rate Blue Books and value-based Green Guides published by Dataquest, Incorporated (Dun and Bradstreet Corporation); and

(B) other industry-standard publications and methodologies relevant to the equipment being valued or for which a rental rate is being set; the department will make available to the municipality upon request the methodology used to determine values or rates under this subparagraph;

(2) the rates the municipality pays for the purchase, lease, or rental of similar equipment, based on the municipality's contracts, leases, and invoices during the preceding two fiscal years; and

(3) in the department's discretion, a negotiated agreement between the department and the municipality.

(e) The department will determine the value of land contributed as local share under AS 37.06.030 (a)(3)(B) as follows:

(1) if the municipality's required local share percentage for the capital project is less than or equal to 10 percent of the total cost of the project, the amount equivalent to the total local share required for the project as defined in 2 AAC 47.170(7); or,

(2) if the municipality's required local share percentage for the capital project is greater than 10 percent of the total cost of the project, any of the following values, as chosen by the municipality:

(A) the assessed value of the land as determined by the municipality's assessor, as reviewed and confirmed by the state assessor and as equalized for full value under AS 29.45.110 by the state assessor;

(B) the value established through an independent appraisal paid for by the municipality from sources other than grants awarded under this chapter; or

(C) if an amount is not available under (A) or practicable under (B) of this paragraph, $5,000 per unit of land needed for the capital project, with the size and number of units needed being determined by the department.

(f) If a municipality proposes under (e)(2)(A) of this section that the municipality's assessed value for land is to be used to determine the value of that land for local share purposes under AS 37.06.030 (a)(3)(B), the municipality must submit to the department the following information:

(1) the assessed value of the land as recorded by the municipality;

(2) a breakdown of the unit valuation method of the subject property and surrounding properties;

(3) other documentation that the municipality considers necessary to verify the value of the land.

History: Eff. 8/19/93, Register 127; am 12/31/93, Register 128; am 6/15/97, Register 142

Authority: AS 37.06.030

AS 37.06.080