MEMORANDUM

July 6, 2006

Refer to: HIPA-10

Mr. George J. Cannelos
Federal Co-chair
Denali Commission
510 L Street, Suite 410
Anchorage, AK 99501

Dear Mr. Cannelos:

As you are aware, provisions in the Safe Accountable Flexible Efficient Transportation Equity Act: A Legacy for Users required the establishment of the Denali Access System Program. As part of the transportation reauthorization legislation, the Secretary of Transportation is to establish a program to pay the costs of planning, designing, engineering, and constructing road and other surface transportation infrastructure identified for the Denali Access System Program. The enclosed Memorandum of Understanding implements these requirements.

The Federal Highway Administration (FHWA) has worked closely with the Denali Commission over the past several months to fulfill these requirements. We are submitting two original copies of the MOU for your signature. Please sign both copies, keep one for your files and return the other one to Mr. Vincent P. Barone, Federal-aid Program Team Leader, via Federal Express at the following address: Federal Highway Administration, HIPA-10, 400 Seventh Street, SW., Room 3134, Washington, D.C. 20590, 202-366-4652.

I look forward to our continued cooperation with the Denali Commission. If you have any questions, please contact either Dave Miller or Karen Schmidt of the FHWA Alaska Division office at 907-586-7418.

Sincerely,

/s/

J. Richard Capka Administrator

Enclosure

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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE DENALI COMMISSION
AND
THE FEDERAL HIGHWAY ADMINISTRATION
RELATING TO
THE DENALI ACCESS SYSTEM PROGRAM
AUTHORIZED IN SAFETEA-LU (PL 109-59)

I. Purpose

The purpose of this Memorandum of Understanding (MOU) is to implement the requirements of Section 309 of the Denali Commission Act of 1998 ("Act") (Pub. L. No. 105-277, Division C, Title III, 112 Stat. 2681-637, as amended [codified at 42 U.S.C. 3121 note]) by Section 1960 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users ("SAFETEA-LU") (Pub.L. No. 109-59, 119 Stat. 1144).

II. Authority

This agreement is entered into by the Federal Highway Administration (FHWA) and the Denali Commission (Commission) pursuant to SAFETEA-LU which redesignated and replaced Section 309 of the Act.

III. The Commission agrees to:

1. Provide SAFETEA-LU funds to capable agencies for the planning, design and construction of road and other surface transportation infrastructure in Alaska Native villages and rural communities.
2. Distribute SAFETEA-LU funds in accordance with Commission methodologies and procedures; consider recommendations by the Denali Access System Program Advisory Committee (a.k.a. Transportation Advisory Committee).
3. Comply with Title 23, U.S.C., Federal-aid program requirements, except as noted below. These requirements include, but are not limited to, metropolitan and statewide planning; procurement of engineering and design related service contracts; Title VI of the Civil Rights Act; prevailing wage rates; acquisition of right-of-way; right-of-way approvals; utility approvals; environmental approvals; design approvals; Plans, Specifications & Estimates (PS&E) approvals; concurrence in awards; and construction-related activities.

   Exceptions to Title 23, U.S.C.:

   • a) Preference to Alaska Materials and Products — To construct a project under Section 309 of the Act, the Commission shall encourage, to the maximum extent practicable, the use of employees and businesses that are residents of Alaska.
   • b) Design Standards — Each project carried out under Section 309 of the Act shall use technology and design standards determined by the Commission to be appropriate given the location and functionality of the project.
   • c) For purposes of projects carried out under Section 309 of the Act, the Commission shall be designated as the lead agency for purposes of accepting Federal funds and for purposes of carrying out this project.
   • d) The Commission may utilize their own Federal contracting requirements for the letting of contracts.
4. The FHWA agrees to:
   
   Allocate funding, authorized and made available, to the Commission under Section 309 of the Act to pay the costs of planning, designing, engineering, and constructing road and other surface transportation infrastructure identified for the Denali Access System Program.
5. Funding and Reporting
   1. The Commission may use funds made available for the Denali Access System Program to meet the non-Federal share of the cost of projects being developed under Title 23 U.S.C.;
   2. The Federal share of the cost of any project that is solely being administered by the Denali Commission shall be determined in accordance with Section 120 (b) of Title 23 U.S.C. The non-Federal share match for these funds must come from non-Federal sources, unless the source of Federal funds has specific legislative authority that allows the match to be other Federal funds; and
   3. Submit periodic reports to FHWA that summarize project development and construction activities. On a monthly basis, submit a year-to-date trial balance for all funds allocated by program and Treasury Symbol, no later than 5 working days from the end of the month, and an SF 133 by program no later than 15 calendar days from the end of the month. On a quarterly basis, submit a request for liquidating cash via SF 1151 (Nonexpenditure Transfer Authorization). Upon year-end closing (by the 8th working day following fiscal year-end), submit a breakout of obligations by program and object class, and a full-time equivalent (FTE) report. The fourth quarter report will include an annual program summary that includes number and types of projects, a final expenditure report and status of project completion.
      
      
6. Point of Contact for the Commission and the FHWA:
   
   For the Denali Commission:
   Director of Finance and Administration
   Denali Commission
   510 L Street, Suite 410
   Anchorage, AK 99501
   907 271-1414 phone 907 271-1415 fax
   888 480-4321 toll free
   
   For the Federal Highway Administration:
   Deputy Division Administrator
   FHWA Alaska Division
   P.O. Box 21648
   Juneau, AK 99802
   
   907 586-7418 phone
   907 586-7420 fax
   
   
7. SUMMARY
   
   This agreement shall become effective on the date of the approving signatures. Termination of this agreement or renegotiation of any part shall be by the mutual concurrence of both parties.

APPROVED

By the Denali Commission

By the Federal Highway Administration: