The Kotlik Tribal Council Procurement Policy will be used for the duration of the project.

The following special delegation of procurement authority shall be in effect for the duration of the project: The on-site Construction Superintendent is authorized up to $1,000 in procurement authority without prior approval of the KTC for local or regional purchases.

A totaL CE2 Engineers, Inc. contractual budget of $418,968 shall be tracked for this project.

A total global project budget of $2,822,308 shall be tracked for this project.

GENERAL STATUS AS OF JULY 31, 2007

• All materials have been procured
• Materials arrived onsite July 18th, 2007
• Superintendent [Judd Sterling] has been mobed to the village & construction camp is being pieced together
• The proposed layout of the new boardwalk has been staked
• No physical construction to date

The construction manager has posted a revised schedule for this project as a result of the following mitigating factors:

1) Delays as a result of the Kodiak Island Native Supply improperly sized joist hanger supplied to the project, requiring a retrofit which itself required formal approval from BIA; the project manager is currently estimating the cost of this retrofit. The project superintendent is estimating the additional labor to retrofit the hangers at 2000+ hours.

2) Delays as a result of the lapse in Worker's Compensation Insurance coverage for the project. This resulted in an approximate 1 week delay.

Two key metrics are being tracked to guage the status of completion of Boardwalk Project in Kotlik, Alaska: installation of helical supports, and installation of structural framing. The total boardwalk length is approximately 4,200 feet.

An additional metric, installation of "appurtenances" or ATV Parking Areas, is being tracked as well. 18 such appurtenances are planned.

The target performance metric for local labor in manhours shall be no less than 600 hrs per week, or 2,600 manhours per month during peak construction.

The Kotlik Boardwalk project has been in a dormant state due to the winter shutdown, with the exception of the mandatory payroll tax reporting requirements, which North Country Bookkeeping continues to file and address. There have also been several requests for payroll information from tribal members.

The Tribe, with CE2/Northern Management's assistance, prepared documentation regarding the claim against Kodiak Island Native Supply, seeking repayment of costs incurred as a result of the improperly supplied materials to the job site. The supplier's bonding company was put on notice that a claim was outstanding. During the April - June 2008 quarter, CE2 Engineers, Inc. / Northern Management continued to respond to information requests related to this claim. There has been no resolution to the claim at this time. 

The following issues remain outstanding as of June 30, 2008:

1. BIA Contract Amendment(s) to address the following issues:
   • 1) Time Extension - if the contract has not been extended, it should be extended until 12/31/2008 or later
     
   • 2) Adjustment [Deduction] for Unremoved Boardwalk: The contract should be amended to account for 3,970 LF of boardwalk that was not removed. Based on a unit cost of $9.36/LF, a total of $37,159 should be deducted from the firm fixed price in the contract.
   • 3) Adjustment [Deduction] for 160 LF of boardwalk: The contract should be amended to account for 160 LF of boardwalk that the Tribe has elected not to construct due to the existence of roadbed in the path of the proposed alignment of this segment of the boardwalk. Based on a unit cost of $330.60/LF, a total of $52,896 should be deducted from the firm fixed price contract for the deletion of this scope. KTC has not received any amendments to its contract thus far to reflect this adjustment.
   • The Kotlik Tribal Council seeks to amend the above deductions back into the contract in order to pay for the addition of more and wider ramps for the project.
     

Anthony Caole - Project Administrator

During July, the boardwalk materials were shipped to Kotlik and arrived onsite on July 18th, 2007. The shipping company did not alert the Tribe or CE2 as to the exact arrival time, consequently, no one was present to meet the barge. Due to the lack of roads, dock facility, and extremely limited materials storage sites, the barge company transferred all boardwalk materials to the DOT Airport apron. CE2 informed DOT of this situation. There is no heavy equipment in the village for moving large quantities of materials, so the materials are being relocated to a more appropriate site piecemeal.

CE2 has mobilized a project superintendent to Kotlik, and set-up a construction camp in a makeshift house which is being upgraded to meet the minimum requirements in the BIA contract.

All materials have been inventoried. Upon a detailed inventory of the materials, it was discovered that 8,600 joinst hangers purchased from Kodiak Island Native Supply were improperly fabricated and not according to the bid documents or the prototype hanger built to confirm the order. Construction of the boardwalk could not proceed without resolution of this issue. CE2 has been in contact with the vendor, and the vendors' suppliers and sub-suppliers, to rectify the situation. A retrofit has been proposed and accepted by BIA, however, this will cost an additional estimated $1500 in lumber materials, $7,650 in Simpson plate anchors, not including additional nails or labor to retrofit each of the 8,600 hangers. The Tribe is consulting with its attorney to recoup these costs from the supplier.

The entire length of the boardwalk has been staked.

Currently, an underground buried fuel line has been identified in the ROW which must be located prior to construction. Efforts to locate the buried fuel line are ongoing.

[Above] Actual Joist Hanger Supplied by Vendor [Uneven]

 

Proposed Retrofit [Right Side/Bottom]

Approved by BIA & KTC

1000's of Simpson Joist Hangers onsite in Kotlik, Alaska

Each individual hanger will require a minor retrofit; the Tribe intends on recouping the labor costs from the vendor/supplier

 

David Harvey - Project Manager

• Set Helical anchors
• Set saddle beams and joist hangers
• Located underground fuel line; traced fuel line from fuel farm to #12
• Cleared all materials from Airport property to Corporation Property for storage
• Continued moving materials along project site
• Started Boardwalk at Starting ramp near airport
• Completed Rotation Hire List and submited to Tribal Council
• Cut joist hangers for setting handrails
• Meeting with Tribal Council
• Office [paperwork]

Lynn Moore - Payroll & Project Accountant

• There are currently 15 active Boardwalk Employees

• Per his daily report on 10/01/07, he is 37% complete with decking and 2X4 kick boards installed. (1 day on this task)
• 66% complete installing the joist, including the retro-fit.100% complete installing the helical anchors and welding on the beam seat brackets.
• As of October 1, there is constructed 1000 LF of Boardwalk in use by the community.
• As of September 18, 2007, Sterling had 14 people on each crew with plans to add two additional people to each crew making a total of 32 people working on the project; 36 Counting the two security guards.

Jane Malnoske - Monthly Progress Report, Payroll

(*) Provided Boardwalk Progress Report for August

David Harvey - Project Manager

Per Judd Sterling's Project update: Boardwalk is 100% complete with 20% of boardwalk boards left to be secured with screws. Judd waited for a shipment of screws that was shipped from Anchorage several days late through URESCO, due to canceled flights. The shipment arrived on November 2, 2007 and the remaining 20% of the Boardwalk that is already in place is currently being fastened together.

David Harvey provided quotes for 10 additional ramps to Della Hunt for the Kotlik Boardwalk Contract Extension.

Judd Sterling walked along the Boardwalk with Della Hunt to clarify/confirm the exact locations for the future 10 ramps. 

Liz Calloway - Project Accountant

On 10/17/07 I completed the BIA Quarterly Financial Report for third quarter, mailed to Della Hunt for signatures with return envelope to Jon Barros at BIA. I included payables to be signed with this package.

On 10/18/07 I prepared the CDBG Monthly Report and attached the Progress Report provided by Jane Malnoske and mailed to Della Hunt for signature with return envelope to Pauletta Bourne at DCCED.

Jane Malnoske - Monthly Progress Report, Payroll

Processed payroll on October 15, 2007 and sent to Kotlik on [Grant] October 16, 2007. There were 21 employees paid for week ending October 21, 2007.

Processed payroll on November 1st and sent to Kotlik on [Grant] the same day to arrive in Kotlik on November 2, 2007. There were 19 employees paid for week ending November 4, 2007

Provided September Boardwalk Progress Report for Monthly Reporting on October 18, 2007.

David Harvey - Project Manager

November 10, 2007, 100% Decking complete. 98% of Kickboard screwed down. We are waiting for a shipment of [fasteners] from Anchorage to finish the remaining 2% Kickboards.

Project Superintendent returned home to Anchorage November 11, 2007.

Liz Calloway - Project Accountant

November 1, 2007, ran payables; sent to Della on Grant for signatures. November 15, 2007, reviewed payroll and made EFTPS payment. November 20, 2007 ran payables. November 30, 2007, reviewed payroll; ran payables; made EFTPS payment.

Jane Malnoske - Project Payroll, Progress Report, Records

November 15, 2007 processed payroll; sent to Kotlik on Grant for signatures the same day.

November 30, 2007, processed payroll; sent to Kotlik on Grant for signatures the following day.

Provided Progress Report to Liz for CDBG Reporting.

David Harvey - Project Manager

Liz Calloway - Project Accountant

[December 18, 2007] Entered new Accounts Payable and ran checks; Requested vendor credit balance refunds from Spenard Builders, United Companies. Both should be refunded in the next two weeks. Faxed and emailed Detailed General Ledger, Profit and Loss Statements through current date. One Statement Project Information only; Second one included Interest Earnings Fund (did not include October, November interest due to not having received bank statements) Forward this to Kotlik for December 18th Tribal Meeting.

[December 28, 2007] Payables and mailed to Della

David Harvey - Project Manager

Liz Calloway - Project Accountant

• Fourth Quarter 941 ESC and 940 completed
• Year end payroll reporting W2s completed and mailed to Della overnight on January 15, 2008

The Kotlik Boardwalk project has been in a dormant state due to the winter shutdown, with the exception of the mandatory payroll tax reporting requirements, which North Country Bookkeeping continues to file and address. There have also been several requests for payroll information from tribal members.

The Tribe, with Northern Management's assistance, prepared documentation regarding the claim against Kodiak Island Native Supply, seeking repayment of costs incurred as a result of the improperly supplied materials to the job site. The supplier's bonding company was put on notice that a claim was outstanding.

The Tribe and CE2 should schedule a coordination session in the coming weeks to finalize construction plans for the summer of 2008.

The following issues remain outstanding as of March 31st, 2008:

1. Bobcat Purchase
2. CE2 Construction Management Services for the summer of 2008
3. BIA Contract Amendment(s) to address the following issues:
   • 1) Time Extension - if the contract has not been extended, it should be extended until 12/31/2008
   • 2) Adjustment [Deduction] for Unremoved Boardwalk: The contract should be amended to account for 3,970 LF of boardwalk that was not removed. Based on a unit cost of $9.36/LF, a total of $37,159 should be deducted from the firm fixed price in the contract.
   • 3) Adjustment [Deduction] for 160 LF of boardwalk: The contract should be amended to account for 160 LF of boardwalk that the Tribe has elected not to construct due to the existence of roadbed in the path of the proposed alignment of this segment of the boardwalk. Based on a unit cost of $330.60/LF, a total of $52,896 should be deducted from the firm fixed price contract for the deletion of this scope.
   • The Kotlik Tribal Council seeks to utilize the above scope reduction totalling $37,159 and $52,896 for the following additions in scope to the Kotlik Boardwalk Improvement Project:
   • 4) Installation of 10 additional ramps: The Kotlik Tribal Council wants to see 10 additional ramps installed as part of this project to enable better access in the community. The estimated cost to install these ramps is [need to update figure] [$35,373.80 old figure, not assuming that the ramps will be widened], which includes a 10% construction contingency.
   • 5) The KTC would like to also widen ALL ramps installed to an as-yet unspecified minimum width

Project Administrator: CE2 accounting and grants administrator [Anthony Caole]. Provides overall supervision and evaluation of the accounting and administrative/business systems.

Construction Superintendent [On-site]: The Construction Superintendent [Judd Sterling] is responsible for coordinating with the Construction Manager on all procurement to verify and review the receipt of goods in Kotlik prior to payment. The Construction Superintendent is also responsible for reviewing and approving all timesheets and forwarding timesheets to the Accounting Clerk for processing. He/she will also file daily field reports. Those reports will be provided to both the Tribe and the Construction Manager.

Construction Foreman [On-site]: PROPOSED POSITION AUGUST 10TH, 2007 COUNCIL MEETING: The Construction Foreman is to perform general skill construction duties in assistance to the Site Superintendent. The Construction Forman has at least two years of relevant experience and is knowledgeable in and has the skills/abilities to instruct and assist other workers in areas of Carpentry, Heavy Equipment Operation and/or Mechanic, and Welding.

 Construction Manager [Off-site]: The Constrution Manager [David Harvey] will be responsible for complying with procurement regulations applicable to the grant being administered. This position will handle all aspects of procurement. The Construction Manager will be responsible for coordinating with the Accounting Clerk that all items were received in good working order and forward all approved invoices for processing. The Construction Manager will also sign off on all purchases requests and code each to the proper cost categories as established by the Project Accountant.

Technical Consultant and Project Accounting: [Jane Malnoske] Will Process Project Payroll; Provide Monthly and Quarterly Progress Reports for CDBG and BIA; Provide all source documentation; Provide vendor, employee, payroll tax receips and records; Provide Grant and Bank related documentation; Provide data for online project Force Account Management Plan.

Project Accountant [Liz Calloway] Responsible for daily transaction entries; budget maintenance; financial reporting; grant compliance; bank reconciliations.

Tribal Administrator: The Tribal Administrator [Della Hunt] will sign off on project expenses such as invoices, payroll and grant reports as provided by the Project Accountant.

Vendor Files:

Master VENDOR files will be maintained in the Anchorage CE2 Engineers/NM Offices. Project Accountant will retain check copy and invoice for grant reporting purposes. Once grant report is filed, all file copies will be forwarded to Anchorage office for filing.

Payroll/Personnel and Tax Deposits:

Master payroll files will be maintained by employee name and according to calendar year and be kept in Anchorage office.

Master payroll tax files will be by calendar year and contain each quarters report and records of each payroll tax deposit and will be kept in the Anchorage office.

Grant Folders:

Grant folders will contain: grant award, scope of work, budgets and amendments, draw down records, grant reports filed and all grant-related correspondence.

Master GRANT files will be maintained in the Anchorage CE2 Engineers/NM Offices. Project Accountant will prepare grant reports and file with appropriate agency with all check copies and financial reports. Once grant report is filed, all file copies will be forwarded to Anchorage office for filing in the master grant file.

Bank Account Folder:

Bank folders contain: bank agreement, transaction records, statements and reconciliation summaries.

Project Accountant will retain bank data for reconciliation purposes. Once reconciliation has occurred, all file copies will be forwarded to Anchorage office for filing in master bank file.

Purchasing

Northern Management will operate an accrual accounting system so that we may report to the Construction Manager an accurate portrayal of expenses obligated to date. This necessitates that purchase orders shall be required for all purchases. Purchase Orders shall be generated using Quickbooks.

All purchase requests shall be initiated by the Construction Manager, and must be signed by the Tribal Administrator in the event the purchase price exceeds CE2's procurement authority. 

The Project Accountant will process the purchase orders and forward to the Tribal Administrator for the approving signature, at which time the Construction Manager will proceed with purchasing the item, product, or service.

Invoices

When an invoice has been received by CE2, it will be stamped and then forwarded to the Construction Manager for review and payment approval. Payment approval will be indicated by account code, amount to be paid, class and have an approving signature. The invoice will then be forwarded to the Northern Management Accounting Clerk who will scan and save to network in appropriate project vendor file. The hard copy will be saved to a vendor file pending receipt of check copy from Project Accountant. Once check copy is received the check copy and back up will be filed in Master Vendor File.

Payment Processing

Once a week, the Project Accountant will transfer the vendor invoice file from the Anchorage Invoices will be posted to Quickbooks and set up for payment per availability of funds.

Project Accountant will seek approval for payment of project expenses from the Tribal Administrator. A detailed summary of expense will be generated. The expense summary will detail vendor, description of expense and invoiced amount. This expense summary will be forwarded to Tribal Administrator for review and approval.

This project will occasionally be using CE2 credit accounts. It is necessary that we process the vendor invoices in a timely manner so that CE2’s credit is not negatively affected by LATE payments. Tribal Administrator shall have full authority to review and approve all project costs so that payments for project costs can be made in a timely manner. The Project Accountant has authority to process payment when approved expense summary has been signed and returned.

Project Accountant will retain check copy and invoice for grant reporting purposes. Once grant report is filed, all file copies will be forwarded to Anchorage office for filing.

Banking

Project Accountant will be granted authorization to contact bank regarding project banking.

Bank Reconciliations shall be completed monthly and signed off by Project Accountant.

Payroll

Construction Superintendent will forward all employee and payroll information to Project Accountant. Pay periods end on the 15^th and last day of each month. Paydays generally fall on the 22^nd and 7^th of each month. It is the Project Superintendents responsibility to forward timesheets to Project Accountant for timely processing.

An expense summary will be prepared detailing payroll information, payroll tax deposit and other miscellaneous payments, i.e. child support. This expense summary will be forwarded to Tribal Administrator for review and approval. Project Accountant has authority to process payment when approved expense summary has been signed and returned.

Project Accountant will retain check copy and invoice for grant reporting purposes. Once grant report is filed, all file copies will be forwarded to Anchorage office for filing.

Monthly Financial Reporting

On or about the 7^th of each month, the Project Accountant will generate project financial statements for review by Project Managers, Tribe, and for budget monitoring and grant reporting purposes.

Grants

Project Accountant is responsible for preparing monthly financial and progress grant reports. These reports will be filed with all appropriate expenditure records, i.e. check copies, invoices, timesheets, etc.

Data for the prior month’s project activities will be forwarded to the Project Accountant by the Project Manager no later than the 10^th of each following month for inclusion in the grant report.

Grant reports will be forwarded by Project Accountant to the community office (tribe or city). A signature will be obtained from the authorized project signatory. The community office will forward the original signed copy to the grant agency and forward a copy to the Project Accountant to submit to agency with back up by the report deadline.

Quarterly Payroll Tax Returns

Project Accountant is responsible for preparing and submitting all 941 and State Contribution (ESC) reports. Copies of these filings will be forwarded and maintained in Master Quarterly Payroll Tax file in Anchorage.

The following records will be maintained:

Hard copies of all records will be maintained in the project office and digital versions of these records will be posted online to the Tribe's Knowledge Base:

This system can be accessed by going to the Kotlik Home Page at www.KotlikAlaska.com and clicking on the Knowledge Base link. If you need a username and password, email: Jane@ce2engineers.com.