TRANSFER OF RESPONSIBILITIES AGREEMENT BETWEEN

THE STATE OF ALASKA DEPARTMENT OF

TRANSPORTATION AND PUBLIC FACILITIES AND

THE KENAI PENINSULA BOROUGH

This Agreement is effective upon execution by the State of Alaska, Department of Transportation and Public Facilities (hereinafter called the State) and the Kenai Peninsula Borough (hereinafter called the Borough). The Borough agrees to use these funds to accomplish the scope of work contained in Appendix A to this Agreement in support of the Arctic Winter Games. The parties mutually agree as follows.

1. The State agrees to transfer non-federally participating funds in the amount of $40,000.00 to the Borough for the accomplishment of the project as described in Appendix A (hereinafter referred to as "the project"). Allowable project expenses incurred after September 8, 2005, are considered eligible expenses and are reimbursable with these funds. The State's project coordinator is Todd VanHove.

2. Upon enactment of Borough appropriating ordinance 2005-19-25 and execution of this agreement the Borough agrees to allocate funds in the amount of $40,000.00 to be used only for the accomplishment of the project described in Appendix A.

3. The Borough project coordinator will be the Planning Director, or his/her designee.

4. The Borough will retain ownership of the project upon its completion and will be responsible for its maintenance and operation.

5. This Agreement shall be governed by the laws of the State of Alaska.

6. The Borough will indemnify, defend and hold harmless the State from any and all claims or causes of actions arising from this project.

7. As required by AS 35.15.080, Assembly Resolution 2005-___ was adopted accepting transfer of responsibility for the project described in Appendix A.

8. This Agreement may be modified or amended only by written Agreement signed by both parties.

APPROVALS:

________________________________________________________ _________

Authorized Signature for Borough Dale Bagley Date

Borough Mayor

________________________________________________________ _________

Authorized Signature for State Steven R. Horn, P.E. Date

Construction and Operations

Director, Central Region

1.

APPENDIX A

A. Scope of Work:

This project will construct a 500 foot easement / access road and gravel pad to an electrical power source for the lighting of the Tsalteshi Trails required for the 2006 Arctic Winter Games. The access point will be located directly west of the trails system and used by Homer Electric Association for maintenance and service of the power source. Any remaining funds can be used to extend the existing utility access road off the Sterling Highway to get to another power source for the Tsalteshi Trail.

In the event that funds remain after the construction of the two easement/access roads to the electrical power source for the lighting of the Tsalteshi Trails, the funds can be used for the construction of two waxing facilities and one timing/course director building at Skyview High School. These facilities are needed for the Arctic Winter Games, and will be owned by the Kenai Peninsula Borough.

B. Project Schedule:

The work shall be accomplished prior to the 2006 Arctic Winter Games.

C. Project Completion Verification

The Borough shall provide photographs taken before and after construction of the project, along with a detailed list of paid expenditures to the State after completion.

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