Title 18 . Environmental Conservation

Chapter 76 . Administrative Enforcement

Section 60. Financial assistance conditions

18 AAC 76.060. 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) submit to the department for review and approval

(A) a tabulation of construction bids received; and

(B) a copy of the 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 appropriate for the type of project, such as for a wastewater or solid waste project, and if required by the department prepare and submit a facility operation and maintenance manual that meets department approval;

(6) provide for a user fee system and an ordinance that meet 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 United States Department of Labor under 40 U.S.C. 276a - 276a-5 (Davis-Bacon Act), or by the state Department of Labor and Workforce Development under AS 36.05.010 , whichever are applicable;

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

(11) submit change orders to the department for approval.

(b) If money 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.

(c) Within one year after the date that construction has been completed, the borrower shall certify that the facility meets the design specifications and, if applicable, effluent limitations specified in its operating or discharge permit. The borrower shall correct any factor that does not meet design requirements or effluent limitations. If the borrower fails to submit the certification required in this subsection the balance of the financial assistance will immediately become payable to the department.

(d) The department will, in its discretion, make site visits to inspect construction progress and to determine compliance with 18 AAC 76.005 - 18 AAC 76.100.

(e) 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.

(f) Based on the information provided in 18 AAC 76.030 and 18 AAC 76.050, the terms and conditions of each financial assistance agreement will be set on a case-by-case basis.

History: Eff. 11/19/88, Register 108; am 8/2/97, Register 143; am 12/29/2000, Register 156

Authority: AS 46.03.020

AS 46.03.032

AS 46.03.090

AS 46.03.720

Editor's note: As of Register 151 (October 1999), the regulations attorney made technical revisions under AS 44.62.125 (b)(6) to reflect the name change of the Department of Labor to the Department of Labor and Workforce Development made by ch. 58, SLA 1999 and the corresponding title change of the commissioner of labor.