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HomeMy WebLinkAbout118-06 RESOLUTIONRESOLUTION NO. 118-06 A RESOLUTION AUTHORIZING THE MAYOR TO APPLY FOR AND ACCEPT A STATE AND TRIBAL ASSISTANCE GRANT (STAG) FROM THE U. S. ENVIRONMENTAL PROTECTION AGENCY FOR SANITARY SEWER SYSTEM IMPROVEMENTS; DESIGNATING THE MAYOR AS THE CITY'S AUTHORIZED REPRESENTATIVE IN ALL MATTERS RELATING TO THE PROCUREMENT AND ADMINISTRATION OF SAID GRANT; AND APPROVING A BUDGET ADJUSTMENT RECOGNIZING $477,900.00 IN GRANT REVENUE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby authorizes the Mayor to apply for and accept a State and Tribal Assistance Grant (STAG) from the U. S. Environmental Protection Agency for sanitary sewer system improvements. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby designates the Mayor as the City's Authorized Representative in all matters relating to the procurement and administration of said grant. Section 3. That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment recognizing $477,900.00 in grant revenue. PASSED and APPROVED this 6th day of July, 2006. APPROVED: By: D N COODY, Mayor ATTEST: By SONDRA SMITH, City Clerk XP - 96635301 - 0 Page 1 J 2e sr4t. v. elkXP �7 ti $�# a 4.&/matCooperative U.S. ENVIRONMENTAL PROTECTION AGENCY Agreement ASSISTANCE ID NO. DATE OF AWARD SEP 0 8 2006 PRG 1 DOC ID AMEND# - 96635301 - 0 .TYPE OF ACTION New MAILING SFP 1 DATE 5 2108 PAYMENT METHOD: • ACH# 66890 RECIPIENT TYPE: Send Payment Request to: Municipal Las Vegas Finance Center RECIPIENT: PAYEE: City of Fayetteville City of Fayetteville 113 West Mountain Street 113 West Mountain Street Fayetteville, AR 72701 • Fayetteville, AR 72701 EIN: 71-6018462 PROJECT MANAGER EPA PROJECT OFFICER EPA GRANT SPECIALIST David Jurgens Rajen Patel Linda Lyons 113 West Mountain Street Water Quality Protection Division, 6WQ-AP Procurement and Grants Section, 6MD-RX Fayetteville, AR 72701 E -Mail: Lyons.Linda@epamail.epa.gov E -Mail: djurgens@ci.fayetteville.ar.us E -Mail: Patel.Rajen@epamail.epa.gov Phone: 214-665-7419 Phone: (479) 575-8318 Phone: 214-665-2788 PROJECT TITLE AND DESCRIPTION AR City of Fayetteville - Sanitary Sewer Rehabilitation Sanitary Sewer Rehabilitation in Basin 1-15: The p oject consists of rehabilitation of sanitary sewer manholes and sewer lines throughout this basin. Rehabilitation of manholes and sewer lines will utilize point repairs, open cut replacement, cured -in-place piping and pipe bursting methods. The project is anticipated to significantly reduce the inflow/infiltration in the entire project area thereby reducing the maintenance cost and sewer backups. BUDGET PERIOD PROJECT PERIOD TOTAL BUDGET PERIOD COST TOTAL PROJECT PERIOD COST 10/01/2006 - 12/31/2009 . 10/01/2006 - 12/31/2009 $868,910.00 $868,910.00 NOTICE OF AWARD Based on your application dated 07/14/2006, including all modifications and amendments, the United States acting by and through the US Environmental Protection Agency (EPA), hereby awards $477,900. EPA agrees to cost -share 55.00% of all approved budget period costs incurred up to and not exceeding total federal funding of $477,900. Such award may be terminated by EPA without further cause if the recipient fails to provide timely affirmation of the award by signing under the Affirmation of Award section and returning all pages of this agreement to the Grants Management Office listed below within 21 days after receipt, or any extension of time, as may be granted by EPA. This agreement is subject to applicable EPA statutory provisions. The applicable regulatory provisions are 40 CFR Chapter 1, Subchapter B, and all terms and conditions of this agreement and any attachments. ISSUING OFFICE (GRANTS MANAGEMENT OFFICE) AWARD APPROVAL OFFICE ORGANIZATION /ADDRESS ORGANIZATION / ADDRESS Management Division, 6MD-RX U.S. EPA, Region 6 1445 Ross Avenue, Suite 1200 Water Quality Protection Division (6WQ) Dallas, TX 75202-2733 1445 Ross Avenue, Suite 1200 Dallas, TX 75202-2733 _ THE UNITED STATES OF AMERICA BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY SIGNA RE • OFFI AL TYPED NAME AND TITLE E Miguel 1. Flores, Director Water Quality Protection Division (6WQ) 0 8 2006 AFFIRMATION OF AWARD BY AND ON BEHALF OF THE DESIGNATED RECIPIENT ORGANIZATION -r� ���� TYPED NAME AND TITLE DATE / SIGN• Dan Coody, Mayor /0 /r0.6 . • EPA Funding Information XP 96635301-0 Paget FUNDS FORMER AWARD THIS ACTION Statutory Authority AMENDED TOTAL EPA Amount This Action $ $ 477,900 $ 477,900 EPA In -Kind Amount • $ $ $ 0 Unexpended Prior Year Balance 06 $ $ $ 0 Other Federal Funds $ $ - $ 0 Recipient Contribution $ $ 391,010 $ 391,010 State Contribution $ - $ $ 0 Local Contribution $ $ $ 0 Other Contribution $ $ $ 0 Allowable Project Cost $ 0 $ 868,910 $ 868,910 Assistance Program (CFDA) - Statutory Authority Regulatory Authority 66.202 - Congressionally Mandated Projects Object Class Consolidated Appropriations Act of 2006 • 40 CFR PART 31 • Fiscal Site Name ' DCN FY Approp. Code Budget Organization PRC Object Class Site/Project Cost Organization Obligation Deobligation l - • . WA0015 i 06 E4 0600OOM 202851E 4183 - - 477,900 477,900 • XP - 96635301 - 0 Page 3 Approved Budget Program Element Classification (Construction) Approved Allowable Budget Period Cost 1. Administration Expense $0 2. Preliminary Expense $0 3. Land Structure, Right Of Way $0 4. Architectural Engineering Basic Fees $0 5. Other Architectural Engineering Fees $0 6. Project Inspection Fees $0 7. Land Development $O 8. Relocation Expenses $0 9. Relocation Payments to Individuals & Bus. $0 10. Demolition and Removal $0 11. Construction and Protect Improvement $868,910 12. Equipment $0 13. Miscellaneous $0 14. Total (Lines 1 thru 13) $568,910 15. Estimate Income $0 16: Net Project Amount (Line 14 minus 15) $868,910 17. Less: Ineligible Exclusions $0 18. Add: Contingencies $0 19. Total (Share: Recap 45_00% Fed 55,00%) $868,910 20. TOTAL APPROVED ASSISTANCE AMOUNT . $477,900 • mElm XP - 96635301 - 0 Page 4 Administrative Conditions This Assistance Agreement is awarded in accordance with the Federal Grants and Cooperative Agreement Act of 1977. Areas of substantial EPA involvement, beyond the normal exercise of performance evaluation and program review, have been detailed in specific output objectives which resulted from negotiation between EPA and the recipient. These areas are included in the application for this award and have become a part of this Agreement. • 1. The recipient covenants and agrees that it will expeditiously initiate and timely complete the project work for which assistance has been awarded under this Agreement, in accordance with all applicable provisions of 40 CFR Chapter 1, Subchapter B. The recipient warrants, represents, and agrees that it and all its contractors, employees and representatives, will comply with all APPLICABLE provisions of 40 CFR Chapter 1, Subchapter B, INCLUDING BUT NOT LIMITED TO the provisions of 40 CFR Parts 31, 32, 34, and 35. This award may be reduced or terminated at such time the recipient fails to comply with the program objectives, grant award conditions, or Federal reporting requirements. 2. Recipient standards of administration, property management, procurement and financial management, as well as records and facilities of recipients, their contractors and subcontractors are subject to audit and inspection by the Comptroller General of the United States and the U.S. Environmental Protection Agency in accordance with Office of Management and Budget (OMB) Circulars A-87, A-102, or A-110, as appropriate, A-133 and 40 CFR Part 31. The recipient's standards governing procurement will be in accordance with 40 CFR, Part 31.36 and OMB Circular A-102. The recipient shall maintain a financial management system which meets the requirements of 40 CFR Part 31.20. 3. Any State agency or agency of a political subdivision of a State which is using appropriated Federal funds shall comply with the requirements set forth in Section 6002 of the Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 6962). Regulations issued under RCRA Section 6002 apply to any acquisition of an item where the purchase price exceeds $10,000 or where the quantity of such items acquired in the course of the preceding fiscal year was $10,000 or more. RCRA Section 6002 requires that preference be given in procurement programs to the purchase of specific products containing recycled materials identified in guidelines developed by EPA. These guidelines are listed in 40 CFR 247. 4. In accordance with EPA Order 1000.25 and Executive Order 13101, Greening the Government Through Waste Prevention, Recycling, and Federal Acquisition, the recipient agrees to use recycled paper for all reports which are prepared as a part of this agreement and delivered to EPA. This requirement does not apply to reports prepared on forms supplied by EPA, or to Standard Forms, which are printed on recycled paper and are available through the General Services Administration. Please note that Section 901 of Executive Order 13101, dated September 14, 1998, revoked Executive Order 12873, Federal Acquisition, Recycling, and Waste Prevention in its entirety. 5 In accordance with 40 CFR Part 31.41, the recipient shall submit an annual Financial • • • • Status Report (FSR), Standard Form 269 or 269A, to: Grants Team (6MD-RX) U. S. Environmental Protection Agency, Region 6 1445 Ross Avenue Dallas, Texas 75202-2733 • The final Financial Status Report (FSR) is due on or before 90 days after the end of the budget period In accordance with Agency policy, all project expenditures reported by the recipient shall be deemed to include both the Federal and recipient share of the expenditures. For construction grants when required in accordance with 40 CFR Part 31.41(e)(2)(iii), the Federal agency may substitute the Financial Status Report specified in Part 31.41(b) for the Outlay. Report and Request for Reimbursement, Standard Form 271. The final Financial Status Report (FSR) shall be submitted to: U.S. Environmental Protection Agency Las Vegas Finance Center P.O. Box 98515 Las Vegas, Nevada 89193-8515 6. The recipient agrees to ensure that all conference, meeting, convention, or training space funded in whole or in part with federal funds, complies with the Hotel and Motel Fire Safety Act of 1990. 7 In accordance with OMB Circular A-133, the recipient shall obtain a single audit if it expends $500,000 or more a year in federal awards. The recipient shall also submit a copy of the audit report to: Grants Team (6MD-RX) U.S. Environmental Protection Agency, Region 6 1445 Ross Avenue Dallas, Texas 75202-2733 8. The Federal share of allowable expenditures chargeable to this assistance project will be financed by the EPA AUTOMATED CLEARING HOUSE (EPA-ACH) PAYMENT SYSTEM. The recipient will strictly adhere to the accounting and reporting procedures described in the EPA-ACH Recipient's Manual for the duration of the project. Four conditions should receive special attention: a. Cash drawdowns will be made only as actually needed for disbursements. b. The recipient will provide timely reporting of cash disbursements and balances through semi-annual submission (within fifteen (15) days after June 30 and December 31 of each • • • • calendar year) of the Federal Cash Transactions Report (SF -272) to: U.S. Environmental Protection Agency Las Vegas Finance Center P.O. Box 98515 Las Vegas, Nevada 89193-8515 c. The recipient will impose the same standards of timing and reporting on secondary recipients, if any • d. When.a drawdown under the EPA-ACH Payment System occurs, the recipient must show the Assistance Agreement Number(s) under "Financial Data" on the EPA-ACH Payment Request Form. Requests for payment should be faxed to: (702) 798-2423 Las Vegas Finance Center Attention: Anedia Feaster • 9. The recipient agrees to comply with the requirements of EPA's Program for Utilization of Small, Minority and Women's Business Enterprises in procurement under assistance , agreements: a. The recipient accepts the applicable FY 2003 Minority Business Enterprise (MBE)/Women's Business Enterprise (WBE) "fair share" goals/objectives negotiated with EPA by the Arkansas Department of Environmental Quality as follows: MBE: CONSTRUCTION - 0%; SUPPLIES - 1.0%; SERVICES - .7%; EQUIPMENT - 1.91% WBE: CONSTRUCTION - 0%; SUPPLIES - 4.3%; SERVICES - 5.4%; EQUIPMENT - 3.34% If the recipient wishes to negotiate their own FY 2005 MBE/WBE goals, the recipient must submit- proposed MBE/WBE goals based on an availability analysis, or, at their option, a disparity study, of qualified MBEs and WBEs to do the work in the relevant market for construction, services, supplies and equipment. The recipient agrees to submit proposed "fair share" objectives, together with the supporting availability analysis or disparity study, to the Regional MBE/WBE Coordinator within 30 days of award. EPA will conclude "fair share" negotiations within 30 days of receiving the submission. Once EPA approves the objectives, the recipient agrees to apply them in accordance with paragraphs 1.(b) -(f). • b. (1) The recipient agrees to ensure, to the fullest extent possible, that at least the applicable "fair share" objectives of Federal funds for prime contracts or subcontracts for supplies, construction, equipment or services are made available to organization owned or controlled by socially and economically disadvantaged individuals, women and Historically Black Colleges and Universities. (2) For assistance'agreements related to research under the Clean Air Act Amendments of • • • • 1990, the recipient agrees to ensure, to the fullest extent possible, that at least the applicable "fair share" objectives of Federal funds for prime contracts or subcontracts for supplies, construction, equipment or services are made available to organizations owned or controlled by socially and economically disadvantaged individuals, women, disabled Americans, Historically Black Colleges and Universities, Colleges and Universities having a student body in which 40% or more of the students are Hispanic, minority institutions having a minority student body of 50% or more, and private and voluntary organizations controlled by individuals who are socially and economically disadvantaged. c. The recipient agrees to include in its bid documents the applicable "fair share" objectives and require all of its prime contractors to include in their bid documents for subcontracts the negotiated "fair share" percentages. d. The recipient agrees to follow the six affirmative steps or positive efforts stated in 40 CFR Section 30.44(b), 31.36(e), or 35.6580, as appropriate, and retain records documenting compliance. e. The recipient agrees to submit an EPA form 5700-52A "MBE/WBE Utilization Under Federal Grants, Cooperative Agreements and Interagency Agreements" beginning with the Federal fiscal year quarter the recipient receives the award and continuing until the project is completed. These reports must be submitted to the Regional MBE/WBE Coordinator within 30 days of the end of the Federal Fiscal quarter (January 30, April 30, July 30, and October 30). For assistance awards for continuing environmental programs and assistance awards with institutions of higher education, hospitals and other non-profit organizations, the recipient agrees to submit an EPA form 5700-52A to the Regional MBE/WBE Coordinator by October 30 of each year. (Reporting form available at www.epa.gov/osdbu.) f. If race and/or gender neutral efforts prove inadequate to achieve a "fair share" objective, the recipient agrees to notify EPA in advance of any race and/or gender conscious action it plans to take to more closely achieve the "fair share" objectives. 10. The recipient also agrees and is required to utilize the six affirmative steps if a contract is awarded under this agreement relative to small businesses in rural areas (SBRAs) in compliance with Section 129 of Public Law 100-50, 40 CFR 30.44(b) and 40 CFR 31.36(e). 11. EPA may take corrective action under 40 CFR Parts 30, 31, and 35, as appropriate, if the recipient fails to comply with the MBE/WBE terms and conditions. 12. The assistance recipient agrees to comply with Executive Order 13202 (Feb. 22, 2001, 66 Fed. Reg. 11225 ) of February 17, 2001, entitled "Preservation of Open Competition and Government Neutrality Towards Government Contractors' Labor Relations on Federal and Federally Funded Construction Projects," as amended by Executive Order 13208 (April 11, 2001, 66 Fed. Reg. 18717). of April 6, 2001, entitled "Amendment to Executive Order 13202, Preservation of Open Competition and Government Neutrality Towards Government Contractors' Labor Relations on Federal and Federally Funded Construction Projects. 13. In accordance with 40 CFR 30.27(b) or 31.36(j)(1), EPA's participation in the salary rate (excluding overhead) paid to individual consultants is limited to the maximum hourly rate for a level 4 of the Executive Schedule, which is currently. approximately $68.51 per hour or $548.08 per day (2006). 14. Pursuant to EPA's annual Appropriations Act, the chief executive officer of this recipient agency shall require that no grant funds have been used to engage in lobbying of the Federal Government or in litigation against the United States unless authorized under existing law. As mandated by this Act, the recipient agrees to provide certification to the award official via EPA Form 5700-53, Lobbying and Litigation Certificate , within 90 days after the end of project period. The form can be accessed at http://www.epa.gov/ogd/forms/adobe/5700-53.pdf. 15. Recipient shall abide by its respective OMB Circular (A-21, A-87, or A-122), which prohibits the use of federal grant funds for litigation against the United States. Any Part 30 recipient shall abide by its respective OMB Circular (A-21 or A-122), which prohibits the use of Federal grant funds to participate in .various forms of lobbying or other political activities. 16. The recipient agrees to comply with Title 40 CFR Part 34, New Restrictions on Lobbying . The recipient shall include the language of this provision in award documents for all subawards exceeding $100,000, and require that subrecipients submit certification and disclosure forms accordingly. 17. In accordance with the Byrd Anti -Lobbying Amendment, any recipient who makes a prohibited expenditure under Title 40 CFR Part 34 or fails to file the required certification or lobbying forms shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such expenditure. 18. Recipient shall fully comply with Subpart C of 40 CFR Part 32, entitled "Responsibilities of Participants Regarding Transactions." Recipient is responsible for ensuring that any lower tier covered transaction, as described in Subpart B of 40 CFR Part 32, entitled "Covered Transactions," includes a term or condition requiring compliance with Subpart C. Recipient is responsible for further requiring the inclusion of a similar term or condition in any subsequent lower tier covered transactions. Recipient acknowledges that failing to disclose the information required under 40 CFR 32.335 may result in the delay or negation of this assistance agreement, or pursuance of legal remedies, including suspension and debarment. 19. Recipient may access the Excluded Parties List System at wwwepls gov This term and condition supersedes EPA Form 5700-49, "Certification Regarding Debarment, Suspension, and Other Responsibility Matters." Programmatic Conditions In accordance with the National Environmental Policy Act (NEPA), 42 U.S.C. § 4321 et seq. EPA is required to conduct an environmental review on the project funded by this grant. Accordingly: The recipient agrees to provide EPA, in a timely fashion, an environmental information document (EID) containing all the necessary information an the project including a written analysis of the altematives and • the environmental impacts of the project. The EID must be of sufficient scope and detail to enable EPA to perform an environmental review under NEPA and other Federal environmental statutes. The recipient agrees not to take any action on the project beyond conceptual design (Conceptual design is essentially the same as facility planning as defined in EPA's Construction Grants program), including but not limited to, beginning the preparation of plans and specifications, purchasing land, advertising or awarding design and/or construction contracts, initiating construction or requesting reimbursement from EPA for costs associated with such actions until such time as EPA has completed its environmental review in accordance with NEPA and 40 CFR Part 6 and 1500 et seq. Completion of this review will be evidenced by the issuance of a Categorical Exclusion (CE), the conclusion of the Finding of No Significant Impact (FNSI) process, or the issuance of a Record of Decision (ROD). The recipient agrees that, upon completion of the NEPA review, design and construction shall be undertaken in accordance with the results of that review, including but not limited to; the implementation of measures EPA identifies as reasonable to mitigate the environmental impacts of the project. EPA reserves the right to unilaterally terminate this grant in the event the recipient fails to comply with this condition, in accordance with 40 CFR Section 31.43. 2. This award is subject to all applicable Federal crosscutting laws and authorities as well as EPA, Office of Wastewater Management, policy guidance dated March 29, 2006 (on the CD provided to you). 3. The recipient will work with the EPA Las Vegas Finance Center (LVFC) to setup the U.S. Department of Treasury's "Automated Standard Application For Payment" (ASAP) system. ASAP is an electronic payment system that the recipient will access via the Internet. Once enrolled in ASAP, the recipient should contact their EPA Project Officer for instructions on submitting the payment requests. The recipient will submit the reimbursement request Standard Form (SF)271(Provided to you on a CD) and appropriate invoices to their Project Officer for approval. When the Project Officer approves the payment, they will notify the recipient to withdraw the approved amount from the ASAP system. If the recipient has not completed the enrollment process for ASAP and is requesting payment, the recipient should contact their Project Officer to obtain instructions for setting up the "Dual Signatory Process" in the EPA "Automated Clearing House" (ACH) payment system. Once the recipient has been setup in ACH, the recipient will submit their payment requests to the Project Officer. The recipient will submit the reimbursement request SF -271, appropriate invoices, and the Payment Request Form (Provided to you on a CD) to their EPA Project Officer for approval. Recipients using ACH will be required to complete their enrollment in the ASAP system. Once enrolled in the ASAP system, the recipient will follow the procedures outlined in the paragraph above. 4. The recipient agrees to provide locational information/data (e.g., latitude and longitude) of the proposed project in accordance wth instructions to be provided by EPA and submit the information to EPA Project Officer for its inclusion in an EPA national database. Federal laws and regulations shall apply except in those cases where State requirements are more stringent than Federal requirements. Where questions arise as to applicability, the EPA Project Officer should be contacted. 6. As a part of the environmental review, the recipient will ensure that all environmental review documentation developed will be consistent with the EPA Region 6 document, NEPA Handbook for SpecialAppropnation Projects (Provided to you on a CD). 7. Project management and execution will be very closely monitored by EPA representatives throughout the assistance agreement's project and budget periods. Effective implementation of the scope of work involves a jointly supported strong ongoing collaboration between the recipient and EPA. Technical assistance and coordination will be routine. EPA and the recipient will maintain a continuous dialogue for the rapid identification, solution, and escalation of problems to top level managers. In addition, EPA representatives will be specifically responsible for assuring that the Arkansas Natural Resources Commission (ANRC) Project Officer performs oversight of the following post -award activities: _ Review of periodic payment requests; Interim inspections; • • • Review of change orders and claims; Review and approval of final payment requests; 'Analysis of environmental review documents for NEPA compliance, if appropriate; and Determination that the project is capable of meeting its objectives. Also, EPA representatives will assure that the recipient understands and meets requirements related to the National Environmental Policy Act and numerous cross -cutting Federal authorities. 8. • EPA Region 6 "Supplemental Conditions for Federally Assisted Water and Wastewater Treatment Facilities" attached hereto as Attachment, must be included in all construction contract bidding documents, and shall control where a conflict arises with other contract provisions. Certain provisions also pertain to professional services contracts, and these provisions must be applied as appropriate. • 9. Executed site certificate(s) shall be submitted to the ANRC Project Officer, as evidence that sites, easements and rights-of-way have been acquired 10. The recipient will ensure that any design and construction performed under this assistance agreement shall be consistent with the EPA document, Guidance on Quality Assurance for Environmental Technology, Design, Construction and Operation (EPA OA/G-11), (Provided to you on CD). 11. All of the following must be submitted to and approved by ANRC Project Officer before recipient may advertise for bids for construction. • • a. Plans and specifications and addenda to the plans and specifications. b. Architect/Engineer (A/E) agreement for construction services. c. A project schedule. All change orders executed after the award of contract must be submitted and approved by EPA. • i , 12. The recipient agrees to submit proposed and existing procurement actions, including subcontracts, that will use EPA assistance for review as soon as available. All procurement actions must comply with the provisions of 40 CFR Part 31, specifically 40 CFR 31.36. • 13. The recipient also agrees to provide forty-five (45%) percent of project costs with nonfederal matching • funds. 14. The recipient agrees to meet the project schedule provided with the grant application or the most recent amended schedule approved by the EPA Project Officer unless justifiable delays occur due to unexpected circumstances. 15. • The recipient understands that the use of recipient's work force to perform grant -funded construction is subject to provisions of OMB Circular No. A-87. Recipient agrees that the rates paid for direct labor and the types of fringe benefits for recipient's work force performing grant -funded construction will be in accordance with normal rates and benefits applicable to similar work performed by recipient's work force. Recipient agrees to maintain adequate file information to support both the basis for pay rates and benefits, and the total costs charged to the grant. 16. The recipient agrees that only wastewater and water infrastructure facilities that are or will be owned by the grant or sub -grant recipient are eligible for grant funding. For example, this means that house laterals (the sewer line from the collection system to the house) and drinking water service lines (the line from the drinking water distribution system to the house) must be owned by the grantee or sub -grantee in order for these facilities to be eligible for grant funding. The ownership requirement applies to new construction, as well as the rehabilitation of existing facilities, and to infiltration/inflow correction associated with existing sewer lines, including house laterals. The grantee or sub -grantee can have ownership by either fee simple title, or by the issuance of an enforceable easement with right of access Since the grantee or sub -grantee has ownership of these facilities, the grantee or sub -grantee would be responsible for the operations and maintenance of those facilities for the life of those facilities. Additionally, the grantee or sub -grantee could not transfer ownership of the facilities to any entity without written approval from EPA. City of Fayetteville, Arkansas Budget Adjustment Form Budget Year 2006 Department: Water & Wastewater Division: Water & Sewer Maintenance Program: Sewer Mains Construction Date Requested 6/1/2006 Adjustment Number Project or Item Added/Increased: $477,900 is requested in the Sewer Improvements account of the Sanitary Sewer Rehabilitation- EPA Rehabilitaiton Grant Project. Project or Item Deleted/Reduced: None. This action is required to recognize receipt of $477,900 in the Federal Grants account. Justification of this Increase: Funding will be used for sanitary sewer rehabiltiation to include repairs to sanitary sewer mains and manholes. Justification of this Decrease: A grant was received from the Environmental Protection Agency for the purpose of sanitary sewer rehabilitation. Account Name Increase Expense Budget (Decrease Revenue Budget) Account Number Amount Sewer improvements Project Number 5400 5700 5815 00 477,900 02017 Decrease Expense Budget (Increase Revenue Budget) Account Name Account Number Amount Project Number Federal grants -Capital 5400 0940 4309 00 477,900 02017 Approval Signatures ,. 1111id 1 Request .� i B e 41,Li IP Dep. Dep. i $ t Dire or Date 6-6 Date Date Finance & Intematl$ervices Director Date l? `i! (04 Mayor / Date Budget Office Use Only Type: A B C ( D Date of Approval Posted to General Ledger Posted to Project Accounting Entered in Category Log Initial Date Initial Date Initial Date Initial Date • David Jurgens Submitted By - City of Fayetteville Staff Review Form City Council Agenda Items or Contracts 7/6/2006 City Council Meeting Date Water/Wastewater Division Action Required: 7/6 /a6 irg Water/Wastewater Department Resolution authorizing Mayor to apply for and accept a State and Tribal Assistance Grant (STAG) Program Application from the US Environmental Protection Agency for sanitary sewer system improvements; designating the Mayor as the City's Authorized Representative in all matters relating to the procurement and administration of said grant, and approving a budget adjustment recogriizing $477,900 in grant revenue. $0.00 Cost of this request 5400.5700.5815.00 Account Number 02017 Project Number Budgeted Item XX 7,071,007.00 Category / Project Budget Sanitary Sewer Rehabilitation Program Category / Project Name 3,017,299.00 Sewer Mains Construction Funds Used to Date Program / Project Category Name 4, 053, 708.00 Remaining Balance ' Budget Adjustment Attached XX Water/Sewer Fund Name Departm Direr or Date City Attomey Date �L� / C GvtlA FinnA ce and Internal Service Director Date Mayor Comments: i Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: N/A N/A Received in Mayor's Office ENTERED 'CT /1 !� City Council Meeting of July 6, 2005 CITY COUNCIL AGENDA MEMO To: Fayetteville City Council Thru: Mayor Dan Coody From: David Jurgens, Water/Wastewater Director Date: June 2, 2006 Subject: Resolution authorizing Mayor to apply for and accept a State and Tribal Assistance Grant (STAG) Program Application from the US Environmental Protection Agency for sanitary sewer system improvements; designating the Mayor as the City's Authorized Representative in all matters relating to the procurement and administration of said grant, and approving a budget adjustment recognizing $477,900 in grant revenue. RECOMMENDATION Fayetteville City Administration recommends approval of a resolution authorizing the Mayor to apply for and accept a STAG grant, execute all required documents, furnish required information and act as the City's Authorized Representative in all matters relating to the procurement and administration of said grant. BACKGROUND Fayetteville has been notified that it will be the recipient of $477,900 in USEPA Grant Assistance from the State and Tribal Assistance Grant Program for 2006. This is the fourth consecutive year that the City has received similar grants. This EPA grant funding was requested for sanitary sewer rehabilitation and is proposed to be merged into the City's ongoing sewer rehabilitation funding to accelerate the program. The EPA grant provides a maximum of 55% of the costs, with the remaining 45% being the required local match. DISCUSSION Consultant work on sanitary sewer rehabilitation has been proceeding. It is anticipated that these funds will be combined with the 2005 grant funds, and used for rehabilitation in the Hamestring sewer basin and other areas. Field investigations have been underway in this area since June, 2005. The 2003 and 2004 grant funds are committed to the Basin 1-5 sanitary sewer rehabilitation construction that is currently underway. BUDGET IMPACT Sanitary sewer rehabilitation is a budgeted project. The 2006 EPA Grant proceeds will be combined with the City's budgeted funds and the $481,200 in 2005 STAG grant funds to execute rehabilitation projects throughout the sanitary sewer system. A budget adjustment recognizing $477,900 in grant revenue is attached. STAG Grant 06 CC Memo Jun06.DOC RESOLUTION NO. A RESOLUTION AUTHORIZING THE MAYOR TO APPLY FOR AND ACCEPT A STATE AND TRIBAL ASSISTANCE GRANT (STAG) FROM THE U. S. ENVIRONMENTAL PROTECTION AGENCY FOR SANITARY SEWER SYSTEM IMPROVEMENTS; DESIGNATING THE MAYOR AS THE CITY'S AUTHORIZED REPRESENTATIVE IN ALL MATTERS RELATING TO THE PROCUREMENT AND ADMINISTRATION OF SAID GRANT; AND APPROVING A BUDGET ADJUSTMENT RECOGNIZING $477,900.00 IN GRANT REVENUE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS• Section 1. That the City Council of the City of Fayetteville, Arkansas hereby authorizes the Mayor to apply for and accept a State and Tribal Assistance Grant (STAG) from the U. S. Environmental Protection Agency for sanitary sewer system improvements. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby designates the Mayor as the City's Authorized Representative in all matters relating to the procurement and administration of said grant. Section 3. That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment recognizing $4774906( ingra4t re enue. PASSED and APPROVED this 6th d.9,of July, 2006 ATTE B SONDRA' ITH ty Clerk COODY, Mayor J. Randy Young, PE Executive Director June 6, 2006 Arkansas Natural Resources Commission 101 East Capitol, Suite 350 Little Rock, Arkansas 72201 http://www anrc arkansas.gov/ Mr. David Jurgens Water & Wastewater Director City of Fayetteville 113 West Mountain Fayetteville, AR 72701 Dear Mr. Jurgens: Phone: (501) 682-1611 Fax: (501) 682-3991 E-mail: anrc®arkansas.gov RECEiVED JUN 0 8 2006 CITYLE MAYOR'S OF ICE Mike Huckabee Governor Please find enclosed a copy of the March 29, 2006 official Memorandum for the Award of Special Appropriation Act Project Grants Authorized by the Agency's FY 2006 Appropriations Act. This memorandum lists all the appropriations for 2006. It lists the requirements you will need to abide by in order to receive your grant. Please keep the memorandum in your grant file for future reference. If you have any questions, please feel free to contact your Arkansas Natural Resources Project Administrator, Jayne Dooley, by phone, 501-682-0550, or by email, Jayne.dooley@arkansas.gov. Sincerely, Jayne Dooley Grants Coordinator An Equal Opportunity Employer r t' o' J�ctEDstArb•:i : •1• i !1. c; ,1. 7 It 4 tv, UNITED STATES ENVIRONMENTAL PROTECTIONAGENCY WASHINGTON,i DSC X20460; £' .' • ' x OFflTEO.F • • I. t1Yl[� 11S1it4otiYl 7 ffaq. 9.1j ✓� -'� �. p ` it k ... Y tyy q ti _ s i'S)%.$T SrUB7ELT •Award Of $pecial;Appropitat 911% pct P olect,Giarits iAuthorizedlby_theagency'sk¢� 006:Appropriahon Act zl :. , s. 9.44 FROM £',• IariSes3A. Hanion, tractor. • Officetdf. Wastewater Manaaementx . sT ▪ .s 4 .(Ret,. 4 Nater Management 0133tsi onpireetors egiorisii 'Xis ''': '` : ;;;.• a 4 1.1'. •.- ,, 4 y• 'TMi3i1° sr, P A i .. R i fp , wPaa DV`*k' •+}p. , 1 9 yq,, x [Ps tn to =}r Ctrs emorandum �provtdes jnformahon and gutde1ines;on how the Environmental tPioi'ection Agency (EPA) will award and'adinimstee;Special Appropriations° Acr:Project;(SAAP)`. grants and programs identified tn3he State and Tnbal Asistance-Grants (STAG) accountrof the,': Agency s fiscal yeari,(FY) 2006.'Appropnattons Act ' . '° ", ^ 5 _ " sagg J,I-. s 4) “d: 'e r ,'.r 1 , f 1i.k. kyr . 1 k - E A i -v La .,.off • - . ,S',':.. `�` :�E A: h as t The EPA section -of Pt L -109 5 ,'aMakang appropnations for rhe Department of the hir&rior.environment, and related agencies or the f sca7 yearenamg September 30 2006 and ji J4t for other purposes • alsotmfetred to as the Agency's FY, 20064Appropnatibns Act tnclndes . t o ' . $,200 00;.000;in the STAaccoun G t for,257water kwastewater'and grotmdwaierrvfrasiructure. �` • protects .Also.mcluded'as separate lme hems to ,the STAG account were•$50000 000 foi.the- te'- • Unid States:Mettico•tBor3er Program and'$35 000 000for the Alas}atRuial and Natiive•Villa e1 : ,.. 3v' S Progtam g }ie -FY 2006; Appropriations tict alsosconiains aaescisston of'$80 mtlhon •from pnoi ' it3y#ar Rinds in?appropriapons-accounts:aivaiiable totEPA, including ippropriations'for'speciargdrrt . si projects tit FY 2000tori_earlietfthat have not been obligated on an. anoroved.grant by September'1 : i 2 rs _• 0�6 �f: a}?i'. ' ff air's %£t`.°° ilj'!'2:.x'. yYsl E1•: <.I.,,s=. %, ..;;�- % ..:1: . Pf'' Pa 71,2>ln`t • St - e' . „ x"r.•.. - >.x .. 7; 1 .+ e :- i rr. -..r >Y. e >t 5r The§pecttic:tequrem ients governing'the w aaid of the special projects and. programsrare'-' contained in the fallowing documents theTy 2006:Appropnations ct the Conference Report i • .(H)Rept., NO: 109 188); the House "Report (Ii Rept:;No "109=80); and•the SenateReport •(S,g P,`• g a Rept. No 109=80) :,The specific; requirements contained io :these documents have been . ` mcorporate8 tntortlhs,memorandum. 11 Reeycledlpucyaable } r • Fl1.1 Address (.141) •1tittp✓/WMv epa.goi0 Vnnied,wnh Vegetabie',oP Based 1nKs'on Reryded r'.aper iklinunttm 36%Aosi m rF> 314 .T r 2 Additionally, two technical corrections to prior appropriations acts were included in P L 109-97, Making appropriations for Agriculture, Rural Development, Food and Drug Administration, and Related Agencies for the fiscal year ending September 30, 2006, and for other purposes. Specifically, the Act includes an additional grant for $300,000 for Haleyville, AL These funds are to come from unallocated FY 2005 appropriations. The Act also includes an amendment to the FY 2002 VA -HUD Conference Report (H. Rpt. No. 107-272). Specifically, the conference report provided $2,000,000 for the city of Florence, MT for wastewater treatment improvements. This grant is amended to provide $29,945 to Florence, MT, $500,000 to the City of Sheridan for water system improvements, $500,000 to Meagher County/Martinsdale Water and Sewer District for Martinsdale Water System Improvements, and $970,055 to the City of Bozeman for Hyalite Waterline and Intake. THREE PERCENT SET-ASIDE The Agency's FY 2001 Appropriations Act (P. L. 106-377) included a provision stating that the Administrator may use up to three percent of the amount appropriated for each earmark to fund State, Corps of Engineer or contractor support for the management and oversight of the special projects. This means that the set-aside monies cannot be used to pay for EPA staff or travel expenses. EPA issued a formal policy memorandum on September 27, 2001, that provides information and guidelines on how the Agency will implement the three percent set-aside provision 1 EPA also issued a formal policy memorandum, SAAP 06-02, on January 20, 2006, that amends the aforementioned memorandum (attached). The three percent set-aside provision is a permanent statutory authority which means it applies to all post -FY 2001 SAAPs including those listed in the STAG account of this year's Appropriations Act. However, the three percent set-aside provision does not apply to funds appropriated for specific programs, such as the Long Island Sound Restoration Program, the United States -Mexico Border Program and the Alaska Rural and Native Villages Program. PROJECTS The Conference Report that accompanied the Agency's FY 2006 Appropriations Act identified two projects funded from monies appropriated for the United States -Mexico Border Program. These two projects will be awarded and administered within the guidelines and provisions contained in this memorandum. Attachment 1 identifies the 257 earmarks listed in the STAG account and the two projects funded from monies appropriated for the United States -Mexico Border Program. Attachment 1 also shows the original amount appropriated for each project, as well as the actual amount available for grant award after the reduction due to the .476 percent rescission, the 1 percent rescission, and three percent set-aside provision.2 'This document is available on the intemet at www.epa.gov/owm/mab/owm0318.pdf. 2 States that choose to perform the necessary construction oversight activities for the planning, design and building phases of a project • 3 The SAAPs identified in Attachment 1 will be awarded and administered by the Regional Offices. The delegation of authority (1200 TN 516), issued on September 28, 2000 (Attachment 2), is listed in Chapter 1, Delegation Number 1-102, of EPA's Delegation Manual. This delegation of authority transferred the authority to award grants and cooperative agreements for funds included in the STAG account to the Assistant Administrator for Water and the Regional Administrators. Accordingly, the Regions and Headquarters have the necessary authority, effective the date of this memorandum, to award grants and cooperative agreements for the special projects and programs identified in the STAG account of the Agency's FY 2006 Appropriations Act. COST -SHARE REQUIREMENT The FY 2006 Conference Report language that precedes the listing of the 257 STAG earmarks (H. Rep. No. 109-188, at p. 32) states that: $200,000,000 shall be for making special project grants for the construction of drinking water, wastewater, and storm water infrastructure and for water quality protection in accordance with the terms and conditions specified for such grants in the joint explanatory statement of the managers accompanying this Act, and, for purposes of these grants, each grantee shall contribute not less than 45 percent of the cost of the project unless the grantee is approved for a waiver by the Agency; The report language does not specify that the Agency may only approve waivers to the 45 percent matching requirement that are based on financial capability issues. Though the language from previous years requiring that waivers be based on financial capability issues was not included, the Agency will continue to operate as if the language remained. Accordingly, our policy for the projects listed in Attachment 1 is that grant applicants will be expected to pay for 45 percent of the project costs unless there is specific language in the Conference Report or Appropriations Act that specifies a different matching requirement or a waiver to the matching requirement is approved based on financial capability issues. Furthermore, in those situations where the description in the Conference Report explicitly, defines the scope of work of the project, the Federal share of the grant will be limited to 55 percent of the estimated cost for completing the scope of work described, regardless of the amount appropriated for the project, unless a waiver to the matching requirement is approved based on financial capability issues. This means, in some instances, that the grant amount will be less than the amount appropriated for the project and that some funds will not be obligated. The disposition of any such unobligated grant funds will be determined by Congress. at their own expense may request to have the three percent set-aside funds assigned to the respective grant recipients within their States. Headquarters will transfer the necessary funds to the Regions for this purpose after the formal review and approval of the State's request. • 4 WAIVERS TO THE MATCHING REQUIREMENT • In March 1997, EPA published Combined Sewer Overflows -- Guidance for Financial CapabilityAssessment and Schedule Development.3 This financial guidance document includes a process for measuring the financial impact of current and proposed wastewater treatment facilities and drinking water facilities on the users of those facilities, and establishes a procedure for assessing financial capability. The process for assessing financial capability contained in that document was initially developed in the 1970's and has been extensively revised based on EPA's experience in the construction grants, State Revolving Fund (SRF), enforcement and water quality standards programs. The assessment process requires the calculation of a financial capability indicator. The Agency approves waivers in those cases where the financial capability indicator shows that the project would result in a high financial burden on the users of the facility. Exceptions to the 45 percent match requirement must be approved by EPA Headquarters. All requests for an exception should be prepared by the EPA Regional Offices using information provided by the grant applicant. The request must include the information contained in Chapters III and IV of the Financial Capability Assessment guidance document.4 The requests, including the necessary supporting documentation and appropriate background material, should be submitted to the Director, Office of Wastewater Management, (Mail Code 4201M), USEPA, 1200 Pennsylvania Avenue NW, Washington, D.C. 20460. FEDERAL FUNDS AS A SOURCE OF MATCHING FUNDS Federal funds from other programs may be used as all or part of the match for the SAAPs only if the statute authorizing those programs specifically allows the funds to be used as a match for other Federal grants. Additionally, the other Federal programs must allow their appropriated funds to be used for the planning, design and/or construction of water, wastewater or groundwater infrastructure projects. Listed below are the major Federal programs whose grant or loan funds can be used to provide all or part of the match for the SAAPs: • Department of Agriculture, Rural Development program; • Department of Housing and Urban Development, Community Development Block Grant program; and • Appalachian Regional Commission grants. 'This document is available on the Internet at www.epa.gov/owm/pdfs/csofc.pdf. ' All of the financial data used to calculate the financial capability indicator must be indexed to the same year. The Bureau of Labor Statistics' web site (www.bls.gov/cpi/) contains an 'Inflation Calculator' that will automatically perform this function. •