ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY ...

AIDEA Resolution No. G21-05

ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY

RESOLUTION NO. G21-05

RESOLUTION OF THE ALASKA INDUSTRIAL

DEVELOPMENT AND EXPORT AUTHORITY

APPROVING ASRC ENERGY SERVICES INSPECTION &

EVALUATION BUDGET FOR SKAGWAY ORE TERMINAL

WHEREAS, the Alaska Industrial Development and Export Authority (the “Authority”)

owns the Skagway Ore Terminal (the “SOT”) as a development finance project under

AS 44.88.172;

WHEREAS, the Authority subleases land that is owned by the Municipality of Skagway,

and that lease expires in March 2023;

WHEREAS, prior to expiration of the sublease, the Authority seeks to evaluate and

understand what level of reinvestment would be required to modernize the SOT and scale its

infrastructure and operations to match anticipated future export volumes of ore, and in the

alternative, to evaluate costs associated with decommissioning the SOT and terminating the

sublease;

WHEREAS, the Executive Director and staff of the Authority have obtained a proposal

(the “SOT Proposal”) from ASRC Energy Services (“AES”) wherein AES would inspect the SOT,

research ore loading terminal improvements, and develop rough cost estimates for renovation and

decommissioning options for a cost of $142,030;

WHEREAS, the Executive Director and staff of the Authority seek Board approval to

proceed with the SOT Proposal through execution of a Notice to Proceed (together, the

“Agreement”), and a total budget of $150,000 for the Agreement and any project contingencies;

and

AIDEA Resolution No. G21-05

WHEREAS, approving the Agreement to protect the Authority’s investment in the SOT

is in furtherance of the Authority’s statutory mission and advances the public interest.

NOW, THEREFORE, BE IT RESOLVED BY THE ALASKA INDUSTRIAL

DEVELOPMENT AND EXPORT AUTHORITY AS FOLLOWS:

Section 1. The Executive Director is authorized to execute a Notice to Proceed with

ASRC Energy Services in order to begin the evaluation services described in the SOT Proposal.

Section 2. Subject to execution of the Agreement with ASRC Energy Services, the

Authority may expend up to $150,000 from the Economic Development Account of the Revolving

Fund to pay for the cost of the Agreement and any related contingencies.

Section 3. The Executive Director is further authorized to take all other steps that are

necessary or desirable to perform the Authority’s obligations pursuant to the Agreement, and to

take such other actions, as may be necessary or convenient in implementing this resolution.

DATED at Anchorage, Alaska on this ___ day of March, 2021.

ALASKA INDUSTRIAL DEVELOPMENT

AND EXPORT AUTHORITY

___________________________________

Chair

SEAL

ATTEST:

________________________________

Secretary

MEMORANDUM

TO: Board Members

Alaska Industrial Development Export Authority

FROM: Alan Weitzner

Executive Director

DATE: March 3, 2021

RE: Skagway Ore Terminal Evaluation

Resolution No. G21-05

OBJECTIVE

AIDEA staff is requesting Board Approval to enter into an agreement with ASRC Energy

Services to provide professional engineering services at the Skagway Ore Terminal (SOT).

AIDEA’s sublease of Municipality of Skagway land adjacent to the port basin expires on March

16, 2023. Staff’s objective is to understand, at a budgetary level, what level of reinvestment

would be required to modernize the terminal and right-size the facility for the anticipated future

export volumes of ore. Additionally, should AIDEA choose not to reinvest in the terminal or the

lease is not extended by the Municipality of Skagway and allowed to expire, AIDEA seeks to

understand the potential costs for decommissioning the terminal subject to review of AIDEA’s

project documentation. This proposal specifically excludes any environmental assessment of the

facility and only focuses on the physical AIDEA owned infrastructure.

AIDEA MISSION

The SOT is an AIDEA owned development project authorized through Resolution No. G90-03

and Resolution No. G91-08 under AS 44.88.172. AIDEA's purpose is to promote, develop, and

advance the general prosperity and economic welfare of the people of Alaska. AIDEA’s

ownership of the facility is consistent with its mission to create and maintain jobs and facilitate

economic development in Alaskan communities.

Under current operations, approximately 20,0000 tons were shipped through the terminal in 2020

contributing up to 12 jobs at the terminal (2 full time, 2 part time plus 8 during ship loading 4

times a year for a 24 hour period), plus jobs associated with the trucking of the concentrates from

Northern Canadian mines to Skagway. Mineral concentrate shipping operations normally occur

on a year-round basis, enhancing employment in a community otherwise heavily dependent on

the summer tourist season.

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PROJECT BACKGROUND

The Port of Skagway is the closest ice-free, deep water port to most of the Yukon Territory. Lead

and zinc ore have been exported from Skagway for over 100 years. In 1968, White Pass/Pacific

Arctic Railway and Navigation Company (White Pass) built an ore storage terminal building and

ship loading facility on Municipality of Skagway property and began to operate the facility as the

Skagway Terminal Company (STC).

In July 1990, AIDEA issued $25 million in Series 1990A Revolving Fund Bonds to purchase the

SOT from White Pass to:

bring stability to Skagway’s then major year-round industry;

fund essential environmentally efficient renovations to the terminal including enclosing

the ship loader and installing a negative air pressure system in the facility; and

open the door to additional economic growth by marketing the terminal to other potential

users within Alaska and Canada’s Yukon Territory.

AIDEA’s total investment to-date in the SOT has been approximately $32.9 million. AIDEA

holds a sublease with STC who in-turn holds a lease through the Pacific and Arctic Railway

Navigation Company (PARN) with the Municipality of Skagway for the ground the terminal

occupies. AIDEA does not hold any tidelands lease within the Skagway port basin.

Effective June 3, 2019, Capstone Mining sold its 100% interest in the Minto Mine to Pembridge

Resources PLC for $20 million. AIDEA's User Agreement with Capstone for the main storage

building, comprising 42,000 square feet, has now been assigned to Pembridge under a Joinder

and Amendment Agreement. Capstone remains jointly liable for Pembridge's obligations under

the agreement through the remaining term. The user contracts with Mineral Services Inc. (MSI) to

operate and maintain the terminal.

PROJECT FACILITIES

The maximum operational capacity of the terminal is 1,500,000 tons of ore concentrate annually.

The SOT consists of a 6.7 acre industrial waterfront lot whose primary features include:

a 98,000 square foot 16-inch thick concrete floor,

a 42,000 square foot concentrate storage building (the original concentrate storage building

was demolished in 2003) surrounded by concrete containment walls, office, shop,

laboratory, electrical and wash buildings;

enclosed materials handling load out conveyors and stationary ship loader (built in 1968

and subsequently upgraded with AIDEA’s acquisition in 1990); and

a .37 acre adjacent lot which contains a fueling facility (two 10,000 gallon day tanks) and

tank farm (four 30,000 gallon storage tanks).

PROPOSAL

AIDEA is seeking to understand preliminary investment amounts for all options associated with

the terminal, including costs associated with lease termination, post March 2023.

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ASRC Energy Services is proposing to conduct a site visit and visual inspection of all assets

owned by AIDEA at the terminal and help develop Rough-Order-of-Magnitude (ROM) cost

estimates and indicate levels of effort for:

Demolition and removal of all AIDEA owned facilities.

Identifying salvageable components from the facility that could be incorporated into a

different facility and has remaining useable commercial function.

Modernizing and scaling the entire ore terminal to accommodate future anticipated export

volumes of ore.

Upgrading the ore loader to a mobile unit that can allow for other dock functions while

the loader is not in use.

Included within this proposal will be up to three (3) conceptual site layout plans and ore loader

configurations that will be discussed with AIDEA leadership in a half-day workshop with the

ASRC Energy Services team. The final deliverable will include class 5, order of magnitude

estimates and ore loader upgrade recommendations in a final report.

ASRC Energy Services anticipates starting this work in April 2021 and concluding in July 2021

for a cost of $142,030.00. A detailed proposal is attached to this memo for further clarifications.

To account for project contingency, AIDEA staff is respectfully requesting a total budget of

$150,000 to start the development planning process at the Skagway Ore Terminal.

RECOMMENDATION

The scope of work with ASRC Energy Services was competitively bid and awarded under

AIDEA’s engineering term contract and in compliance with AIDEA’s procurement regulations.

The proposal scope and fee was negotiated with ASRC, along with their subcontractor Moffat &

Nichols. The contractor was selected for their industrial facilities construction and O&M

experience, marine expertise, and historical knowledge of the Skagway Ore Terminal.

AIDEA staff recommends approval of Resolution G21-05 allowing the Executive Director to

sign a Notice to Proceed with ASRC Energy Services and begin work on the attached proposal

for inspection and cost-estimating at the Skagway Ore Terminal.

Attachments:

ASRC Energy Services SOT Proposal dated January 22, 2021

This proposal is provided per AIDEA’s request and is for internal use only. This proposal is confidential and proprietary and is not authorized for distribution beyond AIDEA.

3900 C Street, Suite 700, Anchorage, AK 99503 (907) 339-6200 www.asrcenergy.com

VIA E-MAIL: [email protected]

January 22, 2021

15995.01

Mr. Jesse Peterson

Senior Manager Project Finance & Assett Manager

Alaska Industrial Development and Export Authority

813 West Northern Lights Blvd

Anchorage, AK 99503

Proposal for Inspection and Cost Estimates

Skagway Ore Terminal

Skagway, Alaska

Dear Jesse:

ASRC Energy Services Alaska, Inc., (AES Alaska) is pleased to submit this revised proposal to visually inspect

and prepare cost estimates for AIDEA-owned infrastructure at the Skagway Ore Terminal (SOT) in Skagway,

Alaska. Our proposal is based on our January 6, 2020 MS Teams meeting with you as well as reference documents

provided as email attachments. If any portion of our proposal is inconsistent with your needs, please notify us,

and we will make revisions as appropriate.

Project Understanding

AIDEA owns the ship loader, concentrate storage building, and various other smaller infrastructure at the SOT.

These assets are situated on property owned by the Municipality of Skagway who leases the land to a Tenant

company named Pacific Arctic Navigation Company (PARN), who in turn leases it to an affiliated company

named Skagway Terminal Company (STC), who in turn subleases it to AIDEA (Subtenant). AIDEA’s lease is

set to expire in March 16, 2023.

According to the lease agreement between STC and AIDEA, “the Subtenant (AIDEA) may, within 60 calendar

days, or such longer period as may be agreed to in writing by STC, after termination of this sublease remove

tenant’s fixtures and chattels from the Subleased Lands as are owned by it, or it may, with the prior written consent

of STC, sell such tenant’s fixtures and chattels to a succeeding sublessee.” It further states “The Subtenant shall

reimburse STC for any repairs necessitated by the removal of any tenant’s fixtures or chattels from the Subleased

Lands. Any tenant’s fixtures or chattels not removed from the Subleased Lands and all improvements and fixtures

(other than the tenant’s fixtures) not removed will be the property of STC without compensation to the Subtenant.”

Given these stipulations, AIDEA is seeking a better understanding of options for the facility prior to the lease

expiration. In general terms, AIDEA is looking for:

What level of investment would be required at the existing facility to bring the ore terminal/ship loader

up to modern standards and meet all current environmental standards? (AIDEA is seeking a high-level

ROM/budgetary range of investment cost and time.)

http://www.asrcenergy.com/

Mr. Jesse Peterson

AIDEA

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What would it take to decommission the facility – are any components worth salvaging for reuse?

Relocation? Demolishing structures? Scrap?

To help answer some of these questions, AIDEA has requested support from AES and subcontractor Moffatt &

Nichol (M&N) to visually inspect AIDEA-owned facilities at the SOT and prepare high-level cost estimates for

upgrading or decommissioning the infrastructure.

If the lease is renewed, the Municipality of Skagway may seek to negotiate with AIDEA for upgrades to the ore

loading facility. If the lease is not renewed, AIDEA envisions three options:

1. Remove all AIDEA-owned assets

2. Sell the assets to another entity with approval from STC

3. Walk away and turn the keys over to STC

Scope of Work

AES proposes the following Scope of Work Tasks to assist AIDEA with decision-making for the SOT assets:

Task 1 – Project Management

Task 2 – Review Background Information, Drawings, and Reports

Task 3 – Conduct Site Visit and Facility Inspection

Task 4 – Research Ore Loading Terminal Improvements

Task 5 – Develop Cost Estimates for:

o Upgrading Ore Loading Facilities

o Demolition of the Ore Loader and Decomissioning Associated Facilities for Salvage or Disposal

Task 6 – Prepare draft and final Cost Estimates and Basis

Each of these tasks is described in greater detail in the following sections.

Task 1—Project Management

Project management will include setting up the project within Oracle for budget and cost tracking; issuing a

subcontract and task order to M&N; coordinating work efforts; monitoring scope, schedule, and budget; and

providing monthly progress reports as required by Section 5.2.2 of our Professional Services Agreement. Monthly

progress reports will be provided within approximately one week of closeout of the previous month. Monthly

reports will provide a summary of activities for the prior period, upcoming activities, costs to date, and a forecast

cost at completion.

Task 2—Review Background Information, Drawings, and Reports

To prepare for the Task 2 site visit, AES and M&N engineers will review background information provided by

AIDEA including design drawings, record drawings, and previous reports by other consultants and contractors.

A list of the information resources provided by AIDEA is included in Attachment 1.


Mr. Jesse Peterson

AIDEA

Page 3



Task 3—Conduct Site Visit and Facility Inspection

A team of engineers and cost estimators will visit the SOT to perform a visual inspection and become familiar

with the facilities for the purpose of developing the cost estimates.

The intent of the inspection is to observe the overall condition of the assets, assess the level of effort and

complexity required for demolition and removal of the facilities, and evaluate what might be necessary for

upgrading the SOT to a state of the art bulk ore handling operation. It is not the intent of the inspection to conduct

a detailed structural analysis or formal condition assessment of the facilities. Exhibit 1 provides a listing of AIDEA

facilities that will be inspected and Exhibit 2 shows the location of these facilities.

Exhibit 1. List of AIDEA SOT Assets to be Inspected

AIDEA Asset (including all attachments, contents, and additions and modifications thereto)

Date of Construction / Major Modification

1 Ore Storage Building (a.k.a. Concentrate Storage Building, or Terminal, or Ore Warehouse), including truck unloading system with receiving hopper and take-away hoppers, reclaim conveyor, and other conveying systems

Constructed 2007, expanded 2008

2 Maintenance Shop with extension and furnace room, including decommissioned fuel tanks and truck fueling station (a.k.a equipment fueling stand)

TBD

3 Laboratory Building including scale TBD

4 Electrical Building (a.k.a. Crew Change Room/Office Facility), including Motor Control Center (MCC) Room and MCCs 1 & 2

TBD

5 Wash pad and wash building, including closed-cycle wash facility Constructed 2007

6 Shiploader including the conveyor to and from the Terminal and intermediate tower, but excluding any portion of the dock. The shiploader specifically includes the supporting cement pads and steel pilings.

Constructed 1968, with some rehabilitation in 2007

7 Tank Farm and containment area TBD

8 Utilities, including water systems, electrical systems, septic tank, and sewer systems located on the subleased lands

TBD

9 Site Improvements, including pavement, fencing, gates, and outdoor lighting TBD


Mr. Jesse Peterson

AIDEA

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Exhibit 2. Site Map of AIDEA Lease Boundary and SOT Assets


Mr. Jesse Peterson

AIDEA

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The following three person team is proposed for the site visit:

Charles or Matt Balzarini – M&N marine structures engineer

Kody Worley – AES construction cost estimator

Louis Fernandez – AES construction cost estimator

We are planning the site visit for April 2021 when daylight hours are increasing and average temperatures are

above freezing. The team will travel to Juneau on Alaska Airlines, stay overnight in Juneau, then on to Skagway

the next morning on Alaska Seaplanes. Flight schedules require an overnight stay in Juneau for the outbound trip,

but shouldn’t be necessary for the return trip. The field team is planning on two full days for the inspection

While onsite, the team will inspect the facilities listed in Exhibit 1, taking photographs and recording notes in

order to provide supporting information for the cost estimates. The team will also interview the site operator, Dave

Hunz with Mineral Services Inc. to gather additional details regarding maintenance activities or other concerns.

Task 4—Reseach Ore Loading Terminal Improvements

To provide AIDEA with information on the potential for upgrading the SOT to a “state-of-the-art” bulk ore

handling operation, M&N will research case studies from within Alaska and the Yukon Territory and will develop

rough order of magnitude (ROM) cost for an upgraded ore loading system and the required modifications to the

existing dock and SOT facilities that may be required (refer to Task 5). AIDEA has indicated a target throughput

of 750,000 tonnes annually for purposes of site layout and equipment sizing. A radial conveyor with an

“environmentally friendly” covered telescoping conveyor/loader is the anticipated solution, on an overall-reduced

site footprint. Improvements to the SOT will be developed conceptually (up to three potential site layout plans)

for discussion with AIDEA and ASRC in a half-day virtual workshop. Subsequently, a preferred alternative will

be developed for documentation and presentation in a Draft Report for review and comment by AIDEA. M&N

will lead a virtual review of the Draft Report leading to final revisions and direction to memorialized the work in

a stand-alone report with supporting exhibits.

Task 5—Develop Cost Estimates

AES and M&N will develop ROM cost estimates for the following:

Estimated cost for upgrading ore loading facilities

Estimated cost of demolition of the ore loader as well as decommissioning associated facilities for

salvage or disposal

Upgrading the terminal to a “state-of-the-art” bulk ore handling operation requires an evaluation of approximately

750,000 tonnes/year throughput, the types of minerals, their value and cost of production. In 2013, AIDEA

commissioned a development plan for the ore terminal when mineral prices were high and exploration activity in

the Yukon was booming. At the time, AIDEA had one tenant, Capstone Mining Corporation, using the terminal

and five potential tenants, the largest Selwyn Chihong Mining Limited projected to produce 350,000 tonnes of

concentrate per year. Selwyn subsequently trucked its concentrate to Stewart, British Columbia. The 2013 study

determined that the Skagway terminal could handle up to about 1,500,000 tonnes annually. Loading rates will be

a factor in the handling costs. Port costs are one part of the mining supply chain, which includes production costs

at the mine, the transportation cost to the port and the cost from the port to the smelter. This study will take a

high-level look at these costs.


Mr. Jesse Peterson

AIDEA

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Task 6—Prepare Draft and Final Cost Estimate and Basis

The AES and M&N team will prepare draft and final Cost Estimate Reports. M&N’s stand-alone report for ore

loading upgrades will be appended to AES’ cost estimate report. The draft report will be sumitted to AIDEA for

review, then the final report will be prepared with revisions addressing AIDEA review comments.

Assumptions

In submitting this proposal for AIDEA, AES Alaska makes the following assumptions:

Dave Hunz or another Skagway point of contact designated by AIDEA will meet the survey team to

provide access to the SOT.

No cost estimate(s) will be provided for moving SOT assets to a new location (e.g. Haines).

Cost estimates will be Class 5 – Order of magnitude accuracy.

No underwater inspections will be conducted.

Inspections will be limited to visual techniques at the inspection team’s discretion.

Areas that are inaccessible, or difficult to access safely will not be inspected.

The inspection does not include any dock structures owned by the Municipality of Skagway.

The inspection will not include the operation of mechanical components (e.g. conveyor and loader) or

utilities serving the assets.

The travel and inspection schedule assumes favorable weather. Adverse weather conditions may

necessitate additional travel days or days on site to complete the inspections.

Inspection of buildings and structures will be performed by walking through and around the buildings and

making visual observations. Special access techniques will not be used to inspect the buildings.

We have assumed that State of Alaska and/or Municipality of Skagway mandates regarding the COVID-

19 pandemic will not prevent or delay travel to the site. In the event that changes occur that restrict travel,

we reserve the right to revise this proposal as necessary.

Three each monthly progress reports will be issued as presented in the preliminary schedule below.

Project Deliverables will be provided in hard copy or Portable Document Format (PDF)

In the event that the inspection work is delayed by weather or other factors beyone AES’ and M&N’s

control, standby time will be charged. Standby rates will be based on 8 hours per day at the normal billing

rate for the impacted staff, plus reasonable and customary expenses including meals, lodging, and travel

expenses.

Our scope of work specifically excludes environmental inspection and reporting. No sampling or intrusive

investigation will be conducted, and our scope of work for estimates under “Decommissioning for Salvage

or Disposal” will not include any discussion of environmental cleanup of the site, including the Ore Basin

and soils under and surrounding AIDEA’s structures and facilities.

Our research for ore loading terminal improvements specifically excludes investigating containerized ore

loading. This option is deemed financially unrealistic by AIDEA.


Mr. Jesse Peterson

AIDEA

Page 7



Preliminary Schedule

The preliminary schedule below presents major milestones and deliverable dates for the project.

Date(s) Milestone/Event

April 1, 2021 Notice to Proceed

Apr 2 – Apr 16 Review Background Information, Drawings, and Reports

Apr 2 – Apr 16 Research Ore Loading Terminal Improvements

Apr 19 – 21 Site Visit for Facility Inspection, including RT travel

May 5 – 7 Issue Monthly Progress Report No. 1 (for Apr 1 thru Apr 30)

May 27 Half-day Workshop

May 10 – Jun 11 Prepare ROM Cost Estimates

Jun 3 – 4 Issue Monthly Progress Report No. 2 (for May 1 thru 31)

May 10 – Jun 25 Prepare and Issue Draft Report

Jun 28 – Jul 2 AIDEA Review of Draft Report

Jul 7 – 9 Issue Monthly Progress Report No. 3 (for Jun 1 thru 30)

Jul 5 – Jul 16 Incorporate Revisions and Issue Final Report


Mr. Jesse Peterson

AIDEA

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Fee Proposal

AES proposes to provide these services to AIDEA on a time and materials basis in accordance with the terms and

conditions set forth in Professional Agreement Contract No. 20131 dated September 11, 2020, and the enclosed

Rate Sheet (Attachment 2). Below is our cost estimate summary for completing each of the tasks described above.

A more detailed breakdown of the estimate is presented in Attachment 3.

Task 1 – Project Management $15,984

Task 2 – Review Background Information, Drawings, and Reports $5,822

Task 3 – Conduct Site Visit and Facility Inspection $29,449

Task 4 – Research Ore Loading Terminal Improvements $49,801

Task 5 – Develop Cost Estimates $19,561

Task 6 – Prepare draft and final Cost Estimate Report $20,621

Total $142,030

We appreciate your consideration and look forward to serving you. If you have any questions regarding the

information provided, please contact me at (907) 441-4988 or by e-mail at [email protected].

Sincerely,

ASRC Energy Services Alaska, Inc.

Paul Ramert, P.E.

Vice President / General Manager

Engineering and Regulatory Division

TE/QC

Enclosures: Attachment 1: List of Resources provide by AIDEA

Attachment 2: Rate Sheet

Attachment 3: Detailed Cost Proposal


Mr. Jesse Peterson

AIDEA

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Attachment 1 – List of Resources Provided by AIDEA


Mr. Jesse Peterson

AIDEA

Page 10



List of Resources Provided by AIDEA

Moffatt & Nichol. October 27, 2012. Skagway, AK Ore Dock, Condition Assessment Report, for the

Municipality of Skagway.

R&M Consultants. 2003. SOT 03-007 G-3 Record Drawing – Aerial View Skagway Ore Terminal, and SOT 03-

007 C-1 Record Drawing – Site Plan, Existing Facilities

Ausenco and Arcadis U.S. Inc. July 21, 2014. Skagway Ore Terminal Storage Building Expansion, Shiploader

Recommendations.

Skagway Ore Terminal Reactivation, Conceptual Development of Options for Future Phases. 4 pg document.

Author and Date Unknown.

Photograph. Oreloader. Jpeg. November 12, 2013.

Excerpts from Skagway Ore Terminal Purchase Agreement

Excerpts from Sublease Agreement between STC and AIDEA

Appendix A (drawing of lease area) to Skagway Ore Terminal Purchase Agreement

Mineral Services Inc. December 30, 2019. Condition Report & Proposed Budget – Skagway Ore Terminal, with

Attachments - Condition Report Skagway Ore Terminal, and Operations and Maintenance Budget for

Skagway Ore Terminal, January 1, 2020 – December 31, 2020.

Tabulation of historical ore shipments, 1970 – 2016. Cyprus Anvil, Curragh, Anvil Range and Minto Annual

Tonnages


Mr. Jesse Peterson

AIDEA

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Attachment 2 – Rate Sheet


December 23, 2020 AES Alaska Rate Sheet

AIDEA RFP #21001

Classification

Name Title

Direct Labor

Cost

Indirect Cost

(76% of

Direct)

Total Cost

(Direct +

Indirect) Fee (5%) Hourly Rate

Sr. Principal $ 127.40 $ 96.82 $ 224.22 $ 11.21 $ 235.43

Dial, Amanda Drilling Engineer

Ramert, Paul C Civil Engineer

Principal $ 109.31 $ 83.08 $ 192.39 $ 9.62 $ 202.01

Adams, Andrew Patrick Structural Engineer

Christopher, Joseph R Wetlands Scientist

Fairchild, Paul Structural Engineer

Henry, Amanda Sunshine PM - Regulatory & Permitting

Schimscheimer, Ramona Architect

Seaberg, Stewart Environmental Scientist

Seitz, Robert Electrical Engineer

Watkins, Robert K II PM - Spill Response & Compliance

Watters, Curtis Mechanical Engineer

Worley, Kody Sales Manger & Estimator

Associate $ 76.85 $ 58.41 $ 135.26 $ 6.76 $ 142.02

Buckmaster, Miranda Environmental Scientist

Browning, Bernard Cost Controller

Clamp, Larry Dean GIS Manager

Hoffman, Hans Anthony Geological Engineer

Simpson, Samantha Wetlands Scientist

Senior II $ 63.71 $ 48.42 $ 112.13 $ 5.61 $ 117.74

Kent, Chris Environmental Scientist

Stotts, Inuuteq Community Relations

Tempel, Troy Mechanical Engineer

Senior I $ 58.99 $ 44.83 $ 103.82 $ 5.19 $ 109.01

Waltemyer, David Leroy Environmental Scientist

Project II $ 57.33 $ 43.57 $ 100.91 $ 5.05 $ 105.95

Lane, Benjamin Civil Engineer

Thompson, Daniel Richard III Archaeologist

Wells, Ranna Archaeologist

Project I $ 53.00 $ 40.28 $ 93.28 $ 4.66 $ 97.94

Siftar, Lucas Electrical Engineer

Staff II $ 37.10 $ 28.20 $ 65.30 $ 3.26 $ 68.56

Chisty, Alia Environmental Scientist

Mason, Shannon Environmental Scientist

Tech VII $ 92.75 $ 70.49 $ 163.24 $ 8.16 $ 171.40

Bull, Mike Electrical Designer

Tech VI $ 76.85 $ 58.41 $ 135.26 $ 6.76 $ 142.02

Andersen, Doreen Civil/Structural Designer

Buffington, Frank Piping Designer

Tech IV $ 43.39 $ 32.98 $ 76.37 $ 3.82 $ 80.19

Colvin, Raquel R Community Relations

Tech III $ 35.03 $ 26.63 $ 61.66 $ 3.08 $ 64.74

Kenning, Kiel Environmental Scientist

Starkey, Norman Stanley Environmental Scientist

Tech II $ 33.13 $ 25.18 $ 58.30 $ 2.92 $ 61.22

Johnson, Norma Archaeologist

Schnurr, Peter Archaeologist

Teese, Tyler Archaeologist

AES Alaska Employees

December 23, 2020 AES Alaska Rate Sheet

AIDEA RFP #21001

Employee Name Classification

Direct Salary

Cost/Rate

Indirect Cost

%

Total Cost

(Direct +

Indirect) Fee (5%) Hourly Rate

Beasley, Robert Principal Engineer/Scientist $ 111.67 180.01% $ 312.69 $ 15.63 $ 328.32

McFarlane, Shaun, PE Principal Engineer/Scientist $ 93.00 180.01% $ 260.41 $ 13.02 $ 273.43

Neal, Jerry, PE Supervisory Engineer/Scientist $ 74.75 180.01% $ 209.31 $ 10.47 $ 219.78

Shushtarain, Farhad, PEng 1 Supervisory Engineer/Scientist $ 67.18 180.01% $ 188.11 $ 9.41 $ 197.52

Freas, Craig, PE, SE 2 Supervisory Engineer/Scientist $ 110.00 50.00% $ 165.00 $ 8.25 $ 173.25

Rezvani, Ali Supervisory Engineer/Scientist $ 69.33 180.01% $ 194.13 $ 9.71 $ 203.84

Sadaghiani, Vahid, PEng 1Senior Engineer/Scientist $ 59.38 180.01% $ 166.27 $ 8.31 $ 174.58

Balzarini, Charles, PE Engineer/Scientist III $ 52.00 180.01% $ 145.61 $ 7.28 $ 152.89

Cupples, Robert Designer $ 50.44 180.01% $ 141.24 $ 7.06 $ 148.30

Jessup, Sean, PE Engineer/Scientist III $ 48.75 180.01% $ 136.50 $ 6.83 $ 143.33

Balzarini, Matthew, PE Engineer/Scientist II $ 41.57 180.01% $ 116.40 $ 5.82 $ 122.22

Warnke, Grant, EIT Staff Engineer/Scientist $ 33.53 180.01% $ 93.89 $ 4.69 $ 98.58

Kreh, Shana Word Processor $ 25.25 180.01% $ 70.70 $ 3.54 $ 74.24

Moffatt & Nichol Employees

1 Canadian employee: hourly rate converted at FOREX = 0.7822 CA$/US$ (Source: xe.com 01/17/2021)

2 Hourly/non-benefitted employee

Mr. Jesse Peterson

AIDEA

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Attachment 3 – Detailed Cost Proposal


DATE:

1/22/2021

TASK NAME TASK LABOR EXPENSES SUB-CONTRACTS MARKUP TOTAL

Project Management 1 10,553$ -$ 5,927$ 296$ 16,777$

Review Background Information, Drawings, and Reports 2 2,424$ -$ 3,236$ 162$ 5,822$

Site Visit and Facility Inspection 3 16,565$ 3,366$ 9,065$ 453$ 29,449$

Research Ore Loading Upgrades 4 -$ -$ 47,429$ 2,371$ 49,801$

Develop Cost Estimates 5 9,696$ -$ 9,395$ 470$ 19,561$

Draft and Final Cost Estimate Report 6 12,262$ -$ 7,961$ 398$ 20,621$

ESTIMATED TOTALS LABOR (or FP) EXPENSES SUB-CONTRACTS MARKUP TOTAL

CLIENT COST: 51,500$ 3,366$ 83,013$ 4,151$ 142,030$

COST ESTIMATE SUMMARY

CLIENT:

AIDEA

PROJECT:

Skagway Ore Terminal

CLIENT: AIDEA PROJECT NAME: Skagway Ore Terminal

PROJECT #: 15995.52 TASK NAME: Project Management

TASK #: 1 PAYMENT: T&E FP FPPE CPFF DATE: 1/22/2021

Sr. Principal Principal Associate Senior II Senior I Project II Project I Staff II Staff I Tech VII (RT) Tech VII (OT) Tech VI (RT) Tech VI (OT) Tech V (RT) Tech V (OT) Tech IV (RT) Tech IV (OT) Tech III (RT) Tech III (OT) Tech II (RT) Tech II (OT)

Ramert Adams,

Christopher,

Fairchild, Henry,

Schimscheimer,

Seaberg, Seitz,

Watkins, Watters,

Worley

Browning Browning, Kent,

Stotts, Tempel

Waltemyer Lane,

Thompson,

Wells

Siftar Chisty, Mason Bull Bull Andersen,

Buffington, Maus

Andersen,

Buffington, Maus

Glazier Glazier Colvin Colvin Kenning, Starkey Kenning, Starkey Teese Teese Total Hours

1 1

1 1

20 20

8 8

18 18

0

0

0

0

0

0

0

0

0

0

0

0

0

40 8 48

235$ 202$ 142$ 118$ 109$ 106$ 98$ 69$ 65$ 171$ 171$ 142$ 142$ 100$ 100$ 80$ 80$ 65$ 65$ 61$ 61$

9,417$ 1,136$ 10,553$

SUB-TASK NO. QUANTITY UNIT PRICE TOTAL PRICE ASSUMPTIONS:

-$

-$

-$

-$

-$

-$

-$

-$

-$

-$

-$

TOTAL EXPENSES: -$

QUANTITY UNIT PRICE TOTAL PRICE

1 5,926.89$ 5,926.89$ 10,553$

-$ -$

-$ 5,927$

-$ 296$

TOTAL SUBCONTRACTS 5,927$ 16,777$

EXPENSES:

LABOR

SUBCONTRACTS:

M&N Proj Mgmt

MARKUP ON SUBCONTRACTORS (5%)

TOTAL FOR TASK

EXPENSES

SUBCONTRACTORS

Cost Controls support for Mthly Prog Rpts

SUB-TASK DESCRIPTION

Project Setup

Subcontract & task order for M&N

Mthly Prog Rprts w/ spend & forecast 5 @ 4 hr/rpt

Monitor scope, schedule, budget & coord team

TOTAL LABOR HOURS

LABOR RATES ($/HR) or ($/DAY)

LABOR COSTS ($)

EXPENSES/SUBCONTRACTS


PROJECT #: 15995.52 TASK NAME: Review Background Information, Drawings, and Reports



Ramert Fernandez, Worley Buckmaster,

Clamp, Hoffman,

Simpson

Browning, Kent,

Stotts, Tempel

Waltemyer Lane,

Thompson,

Wells


Buffington, Maus

Andersen,

Buffington, Maus


12 12

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

12 12

235$ 202$ 142$ 118$ 109$ 106$ 98$ 69$ 65$ 171$ 171$ 142$ 142$ 100$ 100$ 80$ 80$ 65$ 65$ 61$ 61$

2,424$ 2,424$


-$

-$

-$

-$

-$

-$

-$

-$

-$

-$

-$

TOTAL EXPENSES: -$


1 3,236.16$ 3,236.16$ 2,424$

-$ -$

-$ 3,236$

-$ 162$



TOTAL FOR TASK

M&N Review existing documentation LABOR

EXPENSES

SUBCONTRACTORS

SUBCONTRACTS:

TOTAL LABOR HOURS


LABOR COSTS ($)


EXPENSES:


Review existing Documentation -Worley, Fernandez -

6 hr each


PROJECT #: 15995.52 TASK NAME: Site Visit and Facility Inspection



Dial, Ramert Worley, Fernandez Buckmaster,

Clamp, Hoffman,

Simpson

Browning, Kent,

Stotts, Tempel

Waltemyer Lane,

Thompson,

Wells


Buffington, Maus

Andersen,

Buffington, Maus


2 2

32 32

48 48

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

82 82

235$ 202$ 142$ 118$ 109$ 106$ 98$ 69$ 65$ 171$ 171$ 142$ 142$ 100$ 100$ 80$ 80$ 65$ 65$ 61$ 61$

16,565$ 16,565$


2 350.00$ 700.00$

2 400.00$ 800.00$

2 78.00$ 156.00$

2 225.00$ 450.00$

4 225.00$ 900.00$

6 60.00$ 360.00$

-$

-$

-$

-$

-$

TOTAL EXPENSES: 3,366$


1 9,064.59$ 9,064.59$ 16,565$

-$ 3,366$

-$ 9,065$

-$ 453$



TOTAL FOR TASK

M&N travel, per diem, labor, and expenses LABOR

EXPENSES

SUBCONTRACTORS

SUBCONTRACTS:

Hotel SGY (2 persons x 2 nights ea)

Meals & Incidentals (2 persons x 3 days)

RT Airfare JNU-SGY

Airport Parking (2 veh, wkly rate)

Hotel JNU (2 persons x 1 night ea)

TOTAL LABOR HOURS


LABOR COSTS ($)


EXPENSES:

RT Airfare ANC-JNU


Logistics

Mob/Demob 2 persons x 8 hr x 2

Skagway Inspection (2 persons x 8 hr/d x 3 days)


PROJECT #: 15995.52 TASK NAME: Research Ore Loading Upgrades



Dial, Ramert Adams,

Christopher,

Fairchild, Henry,

Schimscheimer,

Seaberg, Seitz,

Watkins, Watters,

Worley

Buckmaster,

Clamp, Hoffman,

Simpson

Browning, Kent,

Stotts, Tempel

Waltemyer Lane,

Thompson,

Wells


Buffington, Maus

Andersen,

Buffington, Maus


0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

235$ 202$ 142$ 118$ 109$ 106$ 98$ 69$ 65$ 171$ 171$ 142$ 142$ 100$ 100$ 80$ 80$ 65$ 65$ 61$ 61$

-$


-$

-$

-$

-$

-$

-$

-$

-$

-$

-$

-$

TOTAL EXPENSES: -$


1 47,429.23$ 47,429.23$ -$

-$ -$

-$ 47,429$

-$ 2,371$



TOTAL FOR TASK

M&N research, narrative, & cost estimate LABOR

EXPENSES

SUBCONTRACTORS

SUBCONTRACTS:

TOTAL LABOR HOURS


LABOR COSTS ($)


EXPENSES:



PROJECT #: 15995.52 TASK NAME: Develop Cost Estimates



Dial, Ramert Worley,

Fernandez

Buckmaster,

Clamp, Hoffman,

Simpson

Browning, Kent,

Stotts, Tempel

Waltemyer Lane,

Thompson,

Wells


Buffington, Maus

Andersen,

Buffington, Maus

Glazier Glazier Colvin Colvin Kenning,

Starkey

Kenning,

Starkey

Teese Teese Total Hours

0

24 24

24 24

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

48 48

235$ 202$ 142$ 118$ 109$ 106$ 98$ 69$ 65$ 171$ 171$ 142$ 142$ 100$ 100$ 80$ 80$ 65$ 65$ 61$ 61$

9,696$ 9,696$


-$

-$

-$

-$

-$

-$

-$

-$

-$

-$

-$

TOTAL EXPENSES: -$


1 9,395.23$ 9,395.23$ 9,696$

-$ -$

-$ 9,395$

-$ 470$



TOTAL FOR TASK

M&N Support LABOR

EXPENSES

SUBCONTRACTORS

SUBCONTRACTS:

TOTAL LABOR HOURS


LABOR COSTS ($)


EXPENSES:


Estimate for Demolition of Ore Loader

Estimate for Decommissioning Facilities


PROJECT #: 15995.52 TASK NAME: Draft and Final Cost Estimate Report



Ramert Worley,

Fernandez

Buckmaster,

Clamp, Hoffman,

Simpson

Browning, Kent,

Stotts, Tempel

Waltemyer Lane,

Thompson,

Wells


Buffington, Maus

Andersen,

Buffington, Maus

Glazier Glazier Colvin Colvin Kenning,

Starkey

Kenning,

Starkey

Teese Teese Total Hours

4 40 44

4 4 8

8 8

2 2 4

0

0

0

0

0

0

0

0

0

0

0

0

0

0

4 54 6 64

235$ 202$ 142$ 118$ 109$ 106$ 98$ 69$ 65$ 171$ 171$ 142$ 142$ 100$ 100$ 80$ 80$ 65$ 65$ 61$ 61$

942$ 10,909$ 411$ 12,262$


-$

-$

-$

-$

-$

-$

-$

-$

-$

-$

TOTAL EXPENSES: -$


1 7,961.18$ 7,961.18$ 12,262$

-$ -$

-$ 7,961$

-$ 398$



TOTAL FOR TASK

M&N Support LABOR

EXPENSES

SUBCONTRACTORS

SUBCONTRACTS:

TOTAL LABOR HOURS


LABOR COSTS ($)


EXPENSES:

Document production & QC


Draft Narrative

Document production & QC

Revise and Final Report

Project Number: P200613Project Title: AIDEA Skagway Ore Terminal Containerized Ore Handling Study Date: 01/17/21 Sub Mark-up: 5.00%Project Manager: Shaun McFarlane, PE Rev. 4 ODC Mark-up: 0.00%Project Principal: Richard Rhoads, PE

I. MAN-HOUR BUDGET CLASSIFICATION/RATES

P-9 P-8 P-7 P-7 P-7 P-7 P-6 P-5 T-5 P-5 P-4 P-2 A-2 LABORPhase Task Title $312.69 $260.41 $209.31 $188.11 $165.00 $194.12 $166.27 $145.61 $141.24 $136.50 $116.40 $93.89 $70.70 HOURS TOTAL

1 1 16 6 6 28 5,604$

1 2 Background ResearchSite Plans, Inspection Planning & Safety Plan 2 2 10 4 2 20 3,041$

1 3Travel and Inspection 36 36 5,241.96$ Inspection Support and Coordination 4 2 6 12 1,956.10$

1 4 Ore Terminal Improvement StudyDesktop Research, Case Studies 2 8 56 8 74 14,146.26$ Conceptual Site Development 4 12 4 36 56 8,980.48$ Planning Workshop with AIDEA, ASRC 4 4 4 4 4 20 4,393.96$ Draft Report (with Exhibits) 2 36 10 16 16 80 11,793.06$ Review Meeting with AIDEA, ASRC 1 1 1 1 1 5 1,098.49$ Final Report (with Exhibits) 1 12 4 8 4 29 4,429.61$

1 5Ore Loading Facility Upgrades 2 1 4 4 1 16 2 10 40 5,661.08$ Demolition, Removals & Salvage 1 2 1 10 2 10 26 3,221.62$

1 62 2 12 8 2 26 3,670.74$ 2 2 8 4 16 2,481.30$ 2 2 2 2 8 1,374.84$

TOTAL MAN-HOURS 13 32 2 4 89 75 21 82 60 30 18 28 22 476II. M&N LABOR 4,064.97$ 8,333.12$ 418.62$ 752.44$ 14,685.00$ 14,559.00$ 3,491.67$ 11,940.02$ 8,474.40$ 4,095.00$ 2,095.20$ 2,628.92$ 1,555.40$ 77,093.76$ III. OTHER COSTS IV. PROJECT SUMMARY A. Subconsultants Markup Total 1. -$ -$ 2. -$ -$ -$ Total M&N Labor 77,093.76$ 98.3% 3. -$ -$ -$ Fixed Fee (Negotiated Profit) @ 5.00% 3,854.69$ 3. -$ -$ -$ Facilities Capital Cost of Money (FCCM) @ 0.77% 593.62$ 4. -$ -$ -$ Total Subconsultant Cost -$ 5. -$ -$ -$ Mark-up on Subconsultants @ 5.00% -$ 6. -$ -$ -$ Total Other Direct Costs (ODCs) 1,451.20$ 1.7% 7. -$ -$ -$ Mark-up on ODCs @ 0.00% 0.00$ 8. -$ -$ -$ Total Cost + Fixed Fee (CPFF) 82,993.27$ 9. -$ -$ -$ 10. -$ -$ -$ Breakdown by Task (All-inclusive):

Total Subconsultants: -$ -$ -$ Project Management 5,926.89$ 7.1% B. Other Direct Costs Background Research 3,216.15$ 3.9%

344.70$ 0.00$ 344.70$ Site Visit & Facility Inspection 9,064.59$ 10.9%399.00$ 0.00$ 399.00$ Ore Terminal Improvement Study 47,429.23$ 57.1%450.00$ 0.00$ 450.00$ Cost Estimating 9,395.23$ 11.3%120.00$ 0.00$ 120.00$ Condition Assessment Report (Draft & Final) 7,961.18$ 9.6%78.00$ 0.00$ 78.00$ 82,993.27$ 34.50$ 0.00$ 34.50$ 25.00$ 0.00$ 25.00$ Moffatt & Nichol Inspector Standby Rate (includes Fixed Fee & FCCM; excludes ODCs) 1,232.09$ Daily

-$ -$ -$ Total Other Direct Costs (ODCs): 1,451.20$ 0.00$ 1,451.20$

McFarlane, Shaun Neal, JerryShushtarain,

Farhad Freas, Craig Rezvani, Ali Kreh, ShanaWarnke, GrantSadaghiani, Vahid Balzarini, Charles Cupples, Robert Jessup, SeanBalzarini, Matthew

Project Management

Beasley, Robert

Input to Final Report by ASRC

Condition Assessment Report (Draft & Final)Input to Draft Report by ASRC

Presentation to AIDEA Supporting ASRC

Site Visit & Facility Inspection

Cost Estimating

Moffatt & NicholExhibit B: CPFF Fee Proposal

Inspection Consumables, Equipment Shipping & Baggage

Airport Parking (ANC): 1 employee @ $78.00/weekLocal Mileage to ANC: 60 mi @ $0.575/mi

Airfare (ANC-JNU): 1 round-trip flights @ $344.70Airfare (JNU-SGY): 1 round-trip flights @ $399.00Lodging: 1 rooms @ 2 nights @ $225.00/nightMeals & Incidentals: 1 employee @ 2 days @ $60.00/day

Fee Proposal Worksheet l Rev. 1 l 23 Feb 2018 l Page 1 of 1

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