Loading...
HomeMy WebLinkAbout75-11 RESOLUTIONRESOLUTION NO. 75-11 A RESOLUTION AUTHORIZING ACCEPTANCE OF A STATE AND TRIBAL ASSISTANCE GRANT IN THE AMOUNT OF $485,000.00 FROM THE U. S. ENVIRONMENTAL PROTECTION AGENCY FOR SANITARY SEWER SYSTEM IMPROVEMENTS IN THE AREA OF AND INCLUDING THE ELKINS OUTFALL SEWER LINE AND APPROVING A BUDGET ADJUSTMENT 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 acceptance of a State and Tribal Assistance Grant in the amount of $485,000.00 from the U. S. Environmental Protection Agency for sanitary sewer system improvements in the area of and including the Elkins outfall sewer line. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached as Exhibit "A", recognizing the revenue. PASSED and APPROVED this 3rd day of May, 2011. APPROVED: By: ATTEST: BY:1114 SONDRA E. SMI II, City Clerk/Treasurer 6$ IBJ itisAIT l� =6ir :FAYETTEVILLE: z . %glib* °�4,, GTON gG.t� Budget Year 2011 City of Fayetteville, Arkansas Budget Adjustment Form Division: Water & Sewer Maintenance Department: Utilities Director BUDGET ADJUSTMENT DESCRIPTION 1 JUSTIFICATION $485,000 is requested in the Sewer improvements account. This action is to recognize receipt of $485,000 State and Tribal Assistance Grant (STAG) for sanitary sewer improvements, specifically replacing and upgrading the Elkins outfall sewer line, and other lines in the area. Request Date 4/20/2011 V11.0222 Adjustment Number Division Head Date Date zo pt2 11 Date ARR,L Atr`2.olf Date 4 -2z -if Date ate Prepared By: Cheryl Partain Reference: Type: djurgens Budget & Research Use Only A B C General Ledger Date Posted to General Ledger Checked / Verified TOTAL BUDGET ADJUSTMENT E P Initial Date Initial Date 485,000 485,000 Increase / (Decrease) ProjectSub Account Name Account Number Expense Revenue Number Sewer improvements Federal Grants -Capital 5400.5700.5815.00 485,000 10010. '1 5400.0940.4309.00 485,000 10010 1 I1c ity1dfs\Divs\WSIP1Capital ProjectslEIkins Outfall Line and 2010 STAGIStag10 BA.xls OthckoL. David Jurgens Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 5/3/2011 City Council Meeting Date Agenda Items Only Water/Wastewater Division Action Required: Utilities Department Resolution to accept a State and Tribal Assistance Grant (STAG) Program grant for $485,000 from the US Environmental Protection Agency for sanitary sewer system improvements, specifically replacing and upgrading the Elkins outfall sewer line, and other lines in the area, and approving a budget amendment acknowledging receipt of the grant funds. Cost of this request (485,000) 5400-0940-4309.00 Account Number 10010 Project Number 1,680,000 Category / Project Budget Funds Used to Date 1,680,000 Remaining Balance Budgeted Item XX Budget Adjustment Attached IEEE Swr Replace- Elkins Outfall Line Program Category / Project Name Sewer Impact Fee Improvements Program / Project Category Name Water/Sewer Fund Name Depa -AU Finance and Internal Services Director Date Date -1-01 Date Date `.12/7/ D e Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: 74-10 4/20/2010 N/A Received in City 04-20-11P03:16 RCVD Clerk's Office Comments: Revised January 15, 2009 ttv!lle CITY COUNCIL AGENDA MEMO MEETING DATE OF MAY 3, 2011 THE CITY OF FAYETTEVILLE, ARKANSAS ARKANSAS www.accessfayetteville.org To: Fayetteville City Council Thru: Mayor Lioneld Jordan Don Marr, Chief of Staff From: David Jurgens, Utilities Director Fayetteville Water and Sewer Co i t Date: 20 April 2011 Subject: Resolution Authorizing the Mayor to Accept an EPA STAG Grant for $485,000 for Sanitary Sewer System Improvements, Replacing And Upgrading The Elkins Outfall Sewer and Area Lines RECOMMENDATION Fayetteville City Administration recommends approval of a resolution to accept a State and Tribal Assistance Grant (STAG) Program grant for $485,000 from the US Environmental Protection Agency for sanitary sewer system improvements, specifically replacing and upgrading the Elkins outfall sewer line, and other lines in the area, and approving a budget amendment acknowledging receipt of the grant funds. BACKGROUND Fayetteville has been notified by Arkansas Natural Resources Commission that it is the recipient of $485,000 in USEPA Grant Assistance from the STAG Program for 2010. This EPA grant funding was requested in February 2009; the City was informally notified in April, 2010, that the grant had been approved. By Resolution 74-10 on 20 April 10, the City Council approved application for this grant and designated the Mayor as the City's Authorized Representative in all matters relating thereto. DISCUSSION The EPA grant provides a maximum of 55% of the costs, with the remaining 45% ($396,818) being the required minimum local match. The local match will include funds from both Fayetteville and Elkins. The project replaces and upsizes the Fayetteville owned sewer transmission line, shown on the attached map, which carries flow from the end of the Elkins line, as well as Fayetteville owned lines in this area. A preliminary design report (PDR) was completed in 2000 and updated in 2010. The PDR confirmed the necessity of a larger diameter pipe due to increased capacity needs. I t is anticipated that these grant funds will be used primarily for construction. BUDGET IMPACT Replacement and upsizing of this sewer main is a budgeted project; the Fayetteville portion will be paid from impact fee funds as the project is a capacity increase. The grant proceeds will be combined with the City's budgeted funds and a cost share of up to $150,000 from Elkins. The budget amendment recognizes the grant revenue. An additional budget amendment, recognizing the Elkins' cost share, will required when the construction contract is awarded. STAG Accept ElkinsOutfall CCMemo Aprl 1.doc RESOLUTION NO. A RESOLUTION AUTHORIZING ACCEPTANCE OF A STATE AND TRIBAL ASSISTANCE GRANT (STAG) IN THE AMOUNT OF $485,000.00 FROM THE U. S. ENVIRONMENTAL PROTECTION AGENCY FOR SANITARY SEWER SYSTEM IMPROVEMENTS IN THE AREA OF AND INCLUDING THE ELKINS OUTFALL SEWER LINE, AND APPROVING A BUDGET ADJUSTMENT 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 acceptance of a State and Tribal Assistance Grant (STAG) in the amount of $485,000.00 from the U. S. Environmental Protection Agency for sanitary sewer system improvements in the area of and including the Elkins outfall sewer line. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached as Exhibit "A", recognizing the revenue. PASSED and APPROVED this 3rd day of May, 2011. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer t U.S. ENVIRONMENTAL PROTECTION AGENCY Cooperative Agreement ASSISTANCE ID NO. DATE OF AWARD 04/08/2011 PRG I DOC ID IAMEND# XP - 00F27401 - 0 TYPE OF ACTION New MAILING DATE 04/15/2011 PAYMENT METHOD: ACH ACH# 66890 . RECIPIENT TYPE: Municipal Send Payment Request to: Las Vegas Finance Center • - RECIPIENT: PAYEE: City. of Fayetteville 113 West Mountain Street Fayetteville, AR 72701 EIN: 71-6018462 City of Fayetteville 113 West Mountain Street Fayetteville, AR 72701 PROJECT MANAGER EPA PROJECT OFFICER EPA GRANT SPECIALIST Mr. David Jurgens 113 West Mountain Street Fayetteville, AR 72701 E -Mail: djurgens@ci.fayetteville.ar.us Phone: 479-575-8318 Gene Wossum 1445 Ross Avenue, Suite 1200, (6WQ AP) Dallas, TX 75202-2733 E -Mail: Wossum.Gene@epamaii.epa.gov Phone: 214-665-7173 Sharon Beets Grant Programs Section, (6MD-CG) E -Mail: Beets.Sharon@eparnailepa.gov Phone: 214-665-2207 PROJECT TITLE AND DESCRIPTION City of Fayetville-Elkins Outfall tine Rep. Replacement of 4,500 feet of 10 inch sanitary sewer with 18 inch line plus the rehabilitation of approximately 90 manholes and 20,000 linear feet of sewer line. BUDGET PERIOD 04/01/2011 - 12/31/2013 PROJECT PERIOD 04/01/2011 - 12/31/2013 TOTAL BUDGET PERIOD COST $881,818.00 TOTAL PROJECT PERIOD COST $881,818.00 • NOTICE Based on your application dated 06/04/2010, including all modifications and amendments, Protection Agency (EPA), hereby awards $485,000. EPA agrees to cost -share total federal funding of $485,000. Such award may be terminated by EPA without by signing under the Affirmation of Award section and returning all pages of this receipt, or any extension of time, as may be granted by EPA. This agreement provisions are 40 CFR Chapter 1, Subchapter B, and all terms and conditions . OF AWARD the United 55.00% of all approved States acting, by and through the US Environmental budget period costs incurred, up to and not exceeding fails to provide timely affirmation of the award Management Office listed below within 21 days after EPA statutory provisions: The applicable regulatory attachments. further cause if the recipient agreement to the Grants is subject to applicable of this agreement and any ISSUING OFFICE (GRANTS MANAGEMENT OFFICE) AWARD APPROVAL OFFICE ORGANIZATION /ADDRESS ORGANIZATION 1 ADDRESS Grant Programs Section, 6MD-CG 1445 Ross Avenue, Suite 1200 Dallas, TX 75202-2733 - U.S. EPA, Region 6 Water Quality Protection Division (6WQ) 1445 Ross Avenue, Suite 1200 Dallas, TX 75202-2733. THE UNITED STATES OF AMERICA BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY SIGNATURE OF AWARD OFFICIAL Digital signature applied by EPA Award Official TYPED NAME AND TITLE Donna Miller, Chief Grant Programs Section DATE - 04/08/2011 AFFIRMATION OF AWARD - • BY AND ON BEHALF OF THE DESIGNATED RECIPIENT ORGANIZATION - SIGNATURE ✓ w.�.— . TYPED NAME AND TITLE - Lioneld Jordan, Mayor . DATE It /l `p / EPA Funding information XP - 00F27401 - 0 Page 2 FUNDS FORMER AWARD THIS ACTION AMENDED TOTAL EPA Amount This Action $ • $ 485,000 $ 485,000 EPA In -Kind Amount $ $ $ 0 Unexpended Prior Year Balance $ $ $ 0 Other Federal Funds • $ $ $ 0 Recipient Contribution $ $ $ 0 State Contribution $ $ 396,818 $ 396,818 Local Contribution $ $ $ 0 Other Contribution $ $ $ 0 - Allowable Project Cost $ 0 $ 881,818. $ 881,818 Assistance Program (CFDA) Statutory Authority Regulatory Authority _66.202 - Congressionally Mandated Projects Public Law 111-88 Department of Interior Environment and Related Agencies Appropriations Act 2010 40 CFR PART 31 Fiscal Site Name Req No FY Approp. Code Budget Organization PRC Object Class ' Site/Project Cost Organization Obligation / Deobligation 1106WA0013 19 E4C 0600G6B • 202651E 4192 - - 485,000 485,000 XP - 00F27401 - 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 $0 8. Relocation Expenses $0 9. Relocation Payments to Individuals & Bus. $0 10. Demolition and Removal $0 11. Construction and Project Improvement $881,818 12. Equipment $0 13. Miscellaneous $0 14. Total (Lines 1 thru 13) $881,818 15. Estimate Income $0 16. Net Project Amount (Line 14 minus 15) $881,818 17. Less: Ineligible Exclusions $0 18. Add: Contingencies $0 19. Total (Share: Recap 45.00% Fed 55.00%) $881,818 20. TOTAL APPROVED ASSISTANCE AMOUNT $485,000 Administrative Conditions GENERAL CONDITIONS PART 31 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, 33, 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. XP - 00F27401 - 0 Page 4 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 3L36, Part 33 and OMB Circular A-102. The recipient shall maintain a financial management system which meets the requirements of 40 CFR Part 31.20. 3. The Federal share of allowable expenditures chargeable to this assistance project will be financed by the EPA AUTOMATED CLEARING HOUSE (EPA-ACH) PAYMENT SYSTEM or U.S. TREASURY AUTOMATED STANDARD APPLICATION FOR PAYMENTS (ASAP) 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. Three conditions should receive special attention: a. Cash drawdowns will be made only as actually needed for disbursements. b. SPECIAL NOTE: 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: Region 6 Financial Specialist c. The recipient will impose the same standards of timing and reporting on secondary recipients, if any. 4. UTILIZATION OF SMALL, MINORITY AND WOMEN'S BUSINESS ENTERPRISES GENERAL COMPLIANCE, 40 CFR, Part 33 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, contained in 40 CFR, Part 33. FAIR SHARE OBJECTIVES, 40 CFR, Part 33, Subpart D A recipient must negotiate with the appropriate EPA award official, or his/her designee, air share objectives for MBE and WBE (MBE/WBE) participation in procurement under the financial assistance agreements. Accepting the Fair Share Objectives/Goals of Another Recipient The dollar amount of this assistance agreement is'$250,000, or more; or the total dollar amount of all of the recipient's non -TAG assistance agreements from EPA in the current fiscal year is $250,000, or more. The recipient accepts the applicable MBE/WBE fair share objectives/goals negotiated with EPA by the Arkansas Department of Environmental Quality MBE: CONSTRUCTION - 2.97%; SUPPLIES _ 1.63%; SERVICES - 1.74%; EQUIPMENT - 3.15% WBE: CONSTRUCTION - 259%; SUPPLIES - 3.88%; SERVICES - 6.21%; EQUIPMENT - 5.57% By signing this financial assistance agreement, the recipient is accepting the fair share objectives/goals stated above and attests to the fact that it is purchasing the same or similar construction, supplies, services and. equipment, in the same or similar relevant geographic buying market as Arkansas Department of Environmental Quality Negotiating Fair Share Objectives/Goals, 40 CFR, Section 33.404 The recipient has the option to negotiate its own MBE/WBE fair share objectives/goals. If the recipient wishes to negotiate its own MBE/WBE fair share objectives/goals, the recipient agrees to submit proposed MBE/WBE objectives/goals based on an availability analysis; or disparity study, of qualified MBEs and WBEs in their relevant geographic buying market for construction, services, supplies and equipment. The submission of proposed fair share goals with the supporting analysis or disparity study means that the recipient is not accepting the fair share objectives/goals of another recipient. The recipient agrees to submit proposed fair share objectives/goals, together with the supporting .. availability analysis or disparity study, to. the Regional MBE/WBE Coordinator within 120 days of its acceptance of the financial assistance award, EPA will respond to the proposed fair share. objective/goals within 30 days of receiving the submission. If proposed fair share objective/goals are not received within the 120 day time frame, the recipient may not expend its EPA funds for procurements until the proposed fair share objective/goals are submitted. SIX GOOD FAITH EFFORTS, 40 CFR, Part 33, Subpart C Pursuant to 40 CFR, Section 33.301, the recipient agrees to make the following good faith efforts whenever procuring construction, equipment, services and supplies under an EPA financial assistance agreement, and to require that sub -recipients, loan recipients, and prime contractors also comply. Records documenting compliance withthe six good faith efforts shall be retained: (a) Require DBEs are made aware of contracting opportunities to the fullest extent practicable through outreach and recruitment activities. For Indian Tribal, State and Local and Government recipients, this will include placing DBEs on solicitation lists and soliciting them whenever they are potential sources. (b) Make information on forthcoming opportunities available to DBEs and arrange timeframes for contracts and establish delivery schedules, where the requirements permit, in a way that encourages and facilitates participation by DBEs in the competitive process. This includes, whenever possible, posting solicitations for bids or proposals for a minimum of 30 calendar days before the bid or proposal closing date. (c) Consider in the contracting process whether firms competing for large contracts could subcontract with DBEs. For Indian Tribal, State and local Government recipients, this will include dividing total requirements when economically feasible into smaller tasks or quantities to permit maximum participation by DBEs in the competitive process. (d) Encourage contracting with a consortium of DBEs when a contract is too large for one of these firms to handle individually. (e) Use the services and assistance of the SBA and the Minority Business Development Agency of Department of Commerce. (f) If the prime contractor awards subcontracts, requirethe prime contractor to take the steps in paragraphs (a) through (e) of this section. MBE/WBE REPORTING, 40 CFR, Part 33, Sections 33.502 and 33.503 The recipient agrees to complete and submit EPA Form 5700-52A, "MBE/WBE Utilization Under Federal Grants, Cooperative Agreements and Interagency Agreements" beginning with the Federal fiscal year reporting period the recipient receives the award; and continuing until the project is completed. Only procurements with certified MBE/WBEs are counted toward a recipient's MBE/WBE accomplishments. The reports must be submitted semiannually for the periods ending March 3rand September 30th for: Recipients of financial assistance agreements that capitalize revolving loan programs (CWSRF, DWSRF, Brownfields); and All other recipients not identified as annual reporters (40 CFR Part 30 and 40 CFR Part 35, Subpart A and Subpart B recipients are annual reporters). The reports are due within 30 daysof the end of the semiannual reporting periods (April 30 m and October 30). Reports should be sent to Region 6 DBE Coordnator Debora Bradford. Final MBE/WBE reports must be submitted within 90 days after the project period of the grant ends. Your grant cannot be officially closed without all MBE/WBE reports. - EPA Form 5700-52A may be obtained from the EPA Office of Small Business Program's Home Page on the Internet at www.ena.gov/osbp CONTRACT ADI IINISTRATION PROVISIONS, 40 CFR, Section 33.302 The recipient agrees to comply with the contract administration provisions of 40 CFR, Section 33.302. BIDDERS LIST, 40 CFR, Section 33.501(b) and (c) Recipients of a Continuing Environmental Program Grant or other annual reporting grant, agree to create and maintain a bidders list. Recipients of an EPA financial assistance agreement to capitalize a revolving loan fund also agree to require entities'receiving identified loans to create and maintain a bidders list if the recipient of the loan is subject to, or chooses to follow, competitive bidding requirements. Please see 40 CFR, Section 33.501 (b) and (c) for specific requirements and exemptions. 5. PAYMENT TO CONSULTANT EPA participation in the salary rate (excluding overhead) paid to individual consultants retained by recipients or by a recipient's contractors or subcontractors shall be limited to the maximum daily rate for a Level IV of the Executive Schedule (formerly GS -18), to be adjusted annually. This limit applies to consultation services of designated individuals with specialized skills who are paid at a daily or hourly rate. As of January 1, 2011 , the limit is $596.00 per day and $74.50 per hour. This rate does not include transportation and subsistence costs for travel performed (the recipient will pay these in accordancewith their normal travel reimbursement practices). Subagreements with firms for services which are awarded using the procurement requirements in 40 CFR 30 or 31, as applicable, are not affected by this limitation unless the terms of the contract provide the recipient with responsibility for the selection, direction, and control of the individuals who will be providing services under the contract at an hourly or daily rate of compensation. See 40 CFR 31.36(j) or 30.27(b). 6. HOTEL -MOTEL FIRE SAFETY Pursuant to 40 CFR 30.18, if applicable, and 15 USC 2225a, the recipient agrees to ensure that all space for conferences, meetings, conventions, or training seminars funded in whole or in part with federal funds complies with the protection and control guidelines of the Hotel and Motel Fire Safety Act (PL 101-391, as amended). Recipients may search the Hotel -Motel National Master List at http://www.usfa.iihs.gov/applications/hotell to see if a property is in compliance (FEMA ID is currently not required), or to find other information about the Act. 7. LOBBYING AND LITIGATION The chief executive officer of this recipient agency shall ensure that no grant funds awarded under this assistance agreement are used to engage in lobbying of the Federal Government or in litigation against the United States unless authorized under existing law. The 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 or for lobbying or other political activities. 8. LOBBYING -. ALL RECIPIENTS 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. In accordancewith 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. 9. DUNS AND CCR REQUIREMENTS I. Central Contractor Registration and Universal Identifier Requirements. A. Requirement for Central Contractor Registration (CCR). Unless you are exempted from this requirement under 2 CFR 25.110, you as the recipient must maintain the currency of your information in the CCR until you submit the final financial report required under this award or receive the final payment, whichever is later. This requires that you review and update the information at least annually after the initial registration, and more frequently if required by changes in your information or another award term. B. Requirement for Data Universal Numbering System (DUNS) numbers. If you are authorized to make subawards under this award, you: 1.Must notify potential subrecipients that no entity (see definition in paragraph C of this award term) may receive a subaward from you unless the entity has provided its DUNS number to you. 2. May not make a subaward to an entity unless the entity has provided its DUNS number to you. C. Definitions. For purposes of this award term: 1.Central Contractor Registration (CCR) means the Federal repository into which an entity must provide information required for the conduct of business as a recipient. - Additional information about registration procedures may be found at the CCR Internet site (currently at http://www.ccr.gov). 2.Data Universal Numbering System (DUNS) number means the nine -digit number established and assigned by Dun and Bradstreet, Inc. (D&B) to uniquely identify business entities. A DUNS number may be obtained from D&B by telephone (currently 866-705-5711) or the Internet (currently at htto://fedgov.dnb.com/webform). 3.Entity, as it is used in this award term, means all of the following, as defined at 2 CFR part 25, subpart C: a. A Governmental organization, which is a State, local government, or b.A foreign public entity; c. A domestic or foreign nonprofit organization; d.A domestic or foreign for-profit organization; and e. A Federal agency, but only as a subrecipient under an award or subaward to a non -Federal entity. Indian tribe; 4.Subaward: a. This term means a legal instrument to provide support for the performance of any portion of the substantive project or program for which you received this award and that you as the recipient award to an eligible subrecipient. b.The term does not include your procurement of property and services needed to carry out the project or program (for further explanation, see Sec. --.210 of the attachment to OMB Circular A-133, "Audits of States, Local Governments, and Non -Profit Organizations"). c. A subaward may be provided through any legal agreement, including an agreement that you consider a contract. subaward. 5. Subrecipient means an entity that: a. Receives a subaward from you under this award; and b.Is accountable to you for the use of the Federal funds provided by the 10. RESPONSIBILITIES OF PARTICIPANTS REGARDING DOING BUSINESS WITH OTHER PERSONS Recipients shall fully comply with Subpart C of 2 CFR Part 180 entitled, "Responsibilities of Participants Regarding Transactions Doing Business With Other Persons," as implemented and supplemented by 2 CFR Part 1532. Recipient is responsible for ensuring that any lower tier covered transaction, as described in Subpart B of 2 CFR Part 180, 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 2 CFR 120.335 may result in the delay or negation of this assistance agreement, or pursuance of legal remedies, including suspension and debarment. Recipients may access the Excluded Parties List System at http://www.epls.gov. This term and condition supersedes EPA Form 5700-49, "Certification Regarding Debarment,'Suspension, and Other Responsibility Matters." 11. DRUG-FREE WORKPLACE The recipient organization of this EPA assistance agreement must make an ongoing, good faith effort to maintain a drug-free workplace pursuant to the specific requirements set forth in Title 40 CFR 36.200 - 36.230. Additionally, in accordance with these regulations, the recipient organization must identify all known workplaces under its federal awards, and keep this information on file during the performance of the award. Those recipients who are individuals must comply with the drug-free provisions set forth in Title 40 CFR 36.300. The consequences for violating this condition aredetailed under Title 40 CFR 36.510. Recipients can access the Code of Federal Regulations (CFR) Title 40 Part 36 at http://www.access.gpo.gov/nara/cfr/waisidx 06/40cfr36 06.html 12. ACORN Congress has prohibited EPA from using its FY2011 appropriations to provide funds to the Association of Community Organizations for Reform Now (ACORN). or any of its subsidiaries. None of the funds provided under this agreement may be used for subawards/subgrants or contracts to ACORN or its subsidiaries. Recipients should direct any questions about this prohibition to their EPA Grants Management Office. 13. MANAGEMENT FEES Management fees or similar charges in excess of the direct costs and approved indirect rates are not allowable. The term "management fees or similar charges" refers to expenses added to the direct costs in order to accumulate and reserve. funds for ongoing business expenses, unforeseen liabilities, or for other similar costs which are not allowable under this assistance agreement. Management fees or similar charges may not be used to improve or expand the project funded under this agreement, except to the extent authorized as a direct cost of carrying out the scope of work. 14. OMB -133 Single Audit CIRCULAR A-133 In accordance with OMB Circular A-133, which implements the Single Audit Act, the recipient hereby agrees to obtain a single audit from an independent auditor, if it expends $500,000 or more in total Federal funds in any fiscal year. Within nine months after the end of a recipient's fiscal year or 30 days after receiving the report from the auditor, the recipient shall submit the SF -SAC and a Single Audit Report Package. The recipient MUST submit the SF -SAC and a Single Audit Report Package; using the Federal Audit Clearinghouse's Internet Data Entry System. For complete information on how to accomplish the single audit submissions, you will need to visit the Federal Audit Clearinghouse Web site: http:/lharvester.census.gov/fac/ 15. EPA'S FINANCIAL OBLIGATIONS EPA's financial obligations to the recipient are limited by the amount of federal funding awarded to date as shown on line 15 in its EPA approved budget. If the recipient incurs costs in anticipation of receiving additional funds from EPA, it does so at its own risk. 16. FEDERAL FINANCIAL REPORT Pursuant to 40 CFR 31.41(b) and 31.50(b), EPA recipients shall submit an annual Federal Financial Report (SF -425) to EPA no later than 90 calendar days following the end of the reporting quarter The following reporting period end dates shall be used for interim reports: 3/31, 6/30, 9/30, or 12/31. At the end of the project, the recipient must submit a final Federal Financial Report to EPA no later than 90 calendar days after the end of the project period. The form is available on the internet at http://www.epa.gov/ocfo/finservices/forms.htm . All FFRs must be submitted to the Las Vegas Finance Center: US EPA, LVFC, PO Box 98515, Las Vegas, NV 89193, or by Fax to: 702-798-2423. The LVFC will make adjustrnents, as necessary, to obligated funds after reviewing and accepting a final Federal Financial Report. Recipients will be notified and instructed by EPA if they must complete any additional forms for the closeout of the assistance agreement. EPA, may take enforcement actions in accordance with 40 CFR 31.43 if the recipient does not comply with this term and condition. 17. EPA ORDER 1000.25 AND EXECUTIVE ORDER 13423 RECYCLED PAPER In accordance with the polices set forth in EPA Order 1000.25 and Executive Order 13423, Strengthening Federal Environmental, Energy and Transportation Management (January 24, 2007), the recipient agrees to use recycled paper and double sided printing for all reports which are prepared as a part of this agreement and delivered to EPA. This requirement does not apply to reportsprepared on forms supplied by EPA, or to Standard Forms, which are printed on recycled paper and are available through the General Services Administration. 18. TRAFFICKING VICTIMS PROTECTION ACT OF 2000 I. Trafficking in persons. a. Provisions applicable to a recipient that is a private entity . 1. You as the recipient, your employees, subrecipients under this award, and subrecipients' employees may not— i. oti. Engage in severe forms of trafficking in persons during the period of time that the award is in effect; ii. Procure a commercial sex act during the period of time that the award is in effect; or iii. Use forced labor in the performance of the award or subawards under the award. 2. We as the Federal awarding agency may unilaterally terminate this award, without penalty, if you or a subrecipient that is a private entity — i. Is determined to have violated a prohibition in paragraph a.1 of this award term; or ii. Has an employee who is determined by the agency official authorized to terminate the award to have violated a prohibition in paragraph a.1 of this award term through conduct that is either— A. Associated with performance under this award; or 13. Imputed to you or the subrecipient using the standards and due process for imputing the conduct of an individual to an organization that are provided in 2 CFR part 180, "OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement)," as implemented by our Agency at 2 CFR. 1532. b. Provision applicable to a recipient other than a private entity . We as the Federal.awarding agency may unilaterally terminate this award, without penalty, if a subrecipient that is a private entity- 1. ntity1. Is determined to have violated an applicable prohibition in paragraph a.1 of this award term; or 2. Has an employee who is determined by the agency official authorized to terminate the award to have violated an applicable prohibition in paragraph a.1 of this award term through conduct that is either— i. Associated with performance under this award; or ii. Imputed to the subrecipient using the standards and due process for imputing the conduct of an individual to an organization that are provided in 2 CFR part 180, "OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement)," as implemented by our agency at 2 CFR. 1532 c. Provisions applicable to any recipient 1. You must inform us immediately of any information you receive from any source alleging a violation of a prohibition in paragraph a.1 of this award term. 2. Our right to terminate unilaterally that is described in paragraph a.2 or b of this section: is Implements .section 106(g) of the Trafficking Victims Protection Act of 2000 (TWA), as amended (22 U.S.C. 71.04(g)), and ii. Is in addition to all other remedies for noncompliance that are available to us under this award. 3. You must include the requirements of paragraph a.1 of this award term in any subaward you make to a private entity. d. Definitions . For purposes of this award term: 1. "Employee" means either: i. An individual employed by you or a subrecipient who. is engaged in the performance of the project or program under • this award; or ii. Another person engaged in the performance of the project or program under this award and not compensated by you including, but not limited to, a volunteer or individual whose services are contributed by a third party as an in-kind contribution toward cost sharing or matching requirements. 2. "Forced labor" means labor obtained by any of the following methods: the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery. 3. "Private entity": i. Means any entity, other than a State,.local government, Indian tribe, or foreign public entity, as those terms are defined in 2 CFR 175.25. ii. Includes: A. A nonprofit organization, including any nonprofit institution of higher education, hospital, or tribal organization other than one included in the definition of Indian tribe at 2 CFR 175.25(b). B. A for-profit organization. 4. "Severe forms of trafficking in persons," "commercial sex act," and "coercion" have the meanings given at section 103 of the TVPA, as amended (22 U.S.C. 7102). 19. SUBAWARDS AND EXECUTIVE COMPENSATION I. Reporting Subawards and Executive Compensation. a. Reporting of first-tier subawards. 1. Applicability. Unless you are exempt as provided in paragraph d. of this award term, you must report each action that obligates $25,000 or more in Federal funds that does not include Recovery funds (as defined in section 1512(a)(2) of the American Recovery and Reinvestment Act of 2009, Pub. L. 111-5) for a subaward to an entity (see definitions in paragraph e of this award term). 2; Where and when to report. i. You must report each obligating action described in paragraph a.1. of this award term to www.fsrs.gov. ii. For subaward information, report no later than the end of the month following the month in which the obligation was made. (For example, if the obligation was made on November 7, 2010, the obligation must be reported by no later than December 31,. 2010.) 3. What to report. You must report the information about each obligating action that the submission instructions posted at www.fsrs.gov specify. b. Reporting Total Compensation of Recipient Executives. 1. Applicability and what to report. You must report total compensation for each of your five most highly compensated executives for the preceding completed fiscal year, if -- $25,000 or more; i. the total Federal funding authorized to date under this award is ii. in the preceding fiscal year, you received— (A) 80 percent or more of your annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170320 (and subawards); and - (B) $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and iii. The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at http://www_sec.gov/answers/execomp.htm.) 2. Where and when to report. You must report executive total compensation described in paragraph b. 1. of this award term: i. As part of your registration profile at www.ccr.gov. ii. By the end of the month following the month in which this award is made, and annually thereafter. c. Reporting of Total Compensation of Subrecipient Executives. 1. Applicability and what to report. Unless you are exempt as provided in paragraph d. of this award term, for each first-tier subrecipient under this award, you shall report the names and total compensation of each of the subrecipient's five most highly compensated executives for the subrecipient's preceding completed fiscal year, if i. in the subrecipient's preceding fiscal year, the subrecipient received— (A) 80 percent or more of its annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and (B) $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts), and Federal financial assistance subject to the Transparency Act (and subawards); and ii. The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at http:l/www.sec.gov/answers/execomp.htm.) 2. Where and when to report. You must report subrecipient executive total compensation described in paragraph c. 1. of this award term: i. To the recipient. ii. By the end of the month following the month during which you make the subaward.. For example, if a subaward is obligated on any date during the month of October of a given year (i.e., between October 1 and 31), you must report any required compensation information of the subrecipient by November 30 of that year. d. Exemptions If, in the previous tax year, you had gross income, from all sources, under $300,000, you are exempt from the requirements to report: i. subawards, and ii. the total compensation of the five most highly compensated executives of any subrecipient. e. Definitions. For purposes of this award term: l.Entity means all of the following, as defined in 2 CFR part 25: Indian tribe; i. A Governmental organization, which is a State, local government, or ii. A foreign public entity; iii. A domestic or foreign nonprofit organization; iv. A domestic or foreign for-profit organization; v. A Federal agency, but only as a subrecipient under an award or subaward to a non -Federal entity. 2. Executive means officers, managing partners, or any other employees in management positions. 3. Subaward: i. This term means a legal instrument to provide support for the performance of any portion of the substantive project or program for which you received this award and that you as the recipient award to an eligible subrecipient. ii. The term does not include your procurement of property and services needed to carry out the project or program (for further explanation, see Sec. --.210 of the attachment to OMB Circular A-133, "Audits of States, Local Governments, and Non -Profit Organizations"). iii. A subaward may be provided through any legal agreement, including an agreement that you or a subrecipient considers a contract. 4. Subrecipient means an entity that: i. Receives a subaward from you (the recipient) under this award; and ii. Is accountable to you for the use of the Federal funds provided by the subaward. 5. Total compensation means the cash and noncash dollar value earned by the executive during the recipient's or subrecipient's preceding fiscal year and includes the following (for more information see 17 CFR 229.402(c)(2)): i. Salary and bonus . ii. Awards of stock stock options, and stock appreciation rights . Use the dollar amount recognized for financial statement reporting purposes with respect to the fiscal year in accordance with the Statement of Financial Accounting Standards No. 123 (Revised 2004) (FAS 123R), Shared Based Payments. iii. Earnings for services under non -equity incentive plans . This does not include group life, health, hospitalization or medical reimbursement plans that do not discriminate in favor of executives, and are available generally to all salaried employees. iv. Change in pension value-. This is the change in present value of defined benefit and actuarial pension plans. v. Above -market earnings on deferred compensation which is not tax -qualified . vi. Other compensation, if the aggregate value of all such other compensation (e.g. severance, termination payments, value of life insurance paid on behalf of the employee,.perquisites or property) for the executive exceeds $10,000. 20, FULLY FUNDED EARMARKS EPA is fully funding this assistance agreement based on the terms of a congressional earmark. If future earmarks are not provided for this project and recipient, supplemental funding for this project is not guaranteed. Programmatic Conditions 1. This award is subject to all applicable Federal crosscutting laws and authorities as well as EPA, Office of Wastewater Management, policy guidance dated July 27, 2009, and attached hereto as Attachment A. Final FY 2010 SAAP Guidance.pd€ 2. The recipient will submit the reimbursement request, Standard Form 271 (SF 271), Outlay Report and Request for Reimbursement for Construction Programs and appropriate invoices if required, to the Arkansas Natural Resources Commission for approval. When the EPA Project Officer (P0) approve the payment, the EPA PO/ANRC will notify the recipient to withdraw the approved amount from the ASAP system. Please note that the recipient can only withdraw the amount of federal share of allowable project cost after the cost is incurred. The recipient will be assessedthe interest penalty if the recipient withdraws the Federal share of allowable project cost before it incurs the cost. The interest rate of the penalty will be set by the U. S. Department of Treasury and will be significantly above the market rate. In accordance with 40 CFR31.40 and 31.41, the recipient must submit Quarterly and Final Performance Reports and Quarterly and Final Financial Status Reports to the EPA PO/ANRC for monitoring the project progress and financial management. The SF 271 , Outlay Report and Request for Reimbursement for Construction Programs may be used for the Quarterly and Final Performance Reports and Quarterly Financial Status Reports. The SF 425, Federal Financial Report , shoed be used for the _Final Financial Status Report. 3. 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 ANRC should be contacted. 4. 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, ANRC and the recipient will maintain a continuous dialogue for the rapid identification, solution, and escalation of problems to top-level managers. The EPA PO/ANRC will conduct post award monitoring to ensure that administrative and programmatic conditions are being met. This will involve periodic reviews of five core areas: (1) compliance with all programmatic terms and conditions; (2) correlation of the work plan and progress under the award; (3) availability of funds to complete the project; (4) proper management of and accounting for applicable equipment/land purchased under the award; and (5) compliance with all statutory and regulatory requirements of the program. To accomplish this, the EPA PO/ANRC will periodically review post -award activities, including but not limited to those listed below, to ensure that Federal laws, regulations, and grant conditions are being followed. - Procurement activities, including solicitation advertisement, service and contract documents, cost and price analysis, (appraisal report for acquiring land, rights of way, easements, site assessment reports), Disadvantage Business Enterprise (DBE), etc. - Monitoring of construction management activities to assure adherence with approved Plans & Specifications. - Approving payment requests, including the final payment. -Change orders and contractors' claims. -Analyze environmental review documents for NEPA - compliance, if appropriate. - Determine that the project is capable of meeting its objectives and is operable. Also, the EPA PO/ANRC will assure that the recipient understands and meets requirements related to the National Environmental Policy Act and applicable Federal crosscutting laws and authorities. 5. EPA Region 6 "Supplemental Conditions for Federally Assisted Water and Wastewater Treatment Facilities" (commonly known as "pink sheets") attached hereto as Attachment B, must be included in all construction contract bidding documents, and shall control where a conflict ariseswith other contract provisions. Certain provisions also pertain to professional services contracts, and these provisions must be applied as. appropriate. 6. Executed site certificate(s) shall be submitted to the EPA PO/ANRC, as evidence that sites, easements and rights-of-way have been. acquired. 7. 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 QA/G-1 I), Attachment C. 8. All of the following must be submitted to and approved by EPA PO/ANRC before recipient. may advertise for bids for construction. a. Plans and specifications and addenda to the plans and specifications. b. An updated project schedule. All change orders executed after the award of the contract must be submitted and approved by EPA. 9. By accepting this grant, the Recipient agrees that it must expeditiously initiate and complete the project in accordance with the following schedule: Number of Months From Grant Award Date Tasks 4 Submittal of Plans and Specifications 6 Advertise for construction bids 8 Submittal of Bid Document 10 Start Construction 32 Completion of construction 33 Final Performance Report and Final Financial Status Report and Project Closeout In accordance with 40 C.F.R. §31.40(d), the recipient agrees to inform EPA PO/ANRC as soon as problems, delays or adverse conditions become known which will materially impair the ability to meet the above schedule and the outputs/outcomes specified in the work plan. Performance Reports must adequately address progress in achieving agreed-upon project/program outputs and environmental outcomes. 10. The recipient agrees to submit proposed and existing procurement actions, including purchase of project equipment and subcontracts, etc. to . EPA PO/ANRC, 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 31.32 and 31.36. 11. The recipient also agrees to provide at leastforty-five 45% percent of project costs with non-federal matching funds. 12. EPA may terminate the assistance agreement for failure of the recipient to make sufficient progress so as to reasonably ensure completion of the project within the project period, including any extensions. EPA will measure sufficient progress by examining the performance required under the work plan in conjunction with the milestone schedule, the time remaining for performance within the project period, and/or the availability of Funds necessary to complete the project. UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D.C. 20460 PAR Z9 2010 OFFICE. OF WATER MEMORA.NDUM SUBJECT: Award of Special Appropriations Act Pr thorized by the Agency's FY 2010 Appropriations Act FROM: James A. Hanlon, Director Office of Wastewater Managern t. (42 M) TO: Water Management Division D - Regions 1- X PURPOSE This memorandum provides information and guidelines on how the Environmental Protection Agency (EPA) will award and administer Special Appropriations Act Project (SAAP) grants identified in the State and Tribal Assistance Grants (STAG) account of the fiscal year (FY) 2010 Appropriations Act. BACKGROUND The EPA section of P. L. 111-88, the "Department of the. interior„ Environment, and Related Agencies Appropriations Act, 2010," also referred to as the Agency's FY2010 Appropriations Act, includes $156777,000 in the STAG account for. 317 drinleing water, wastewater and stormwater infrastructure and water quality protection projects.. Also included in the STAG account, as aseparate line item, is $17,000,000 for the *United States -Mexico Border Program. The Joint Explanatory Statement accompanying the FY 2010 Appropriations Act identifies tWo projects to be funded directly from the line itern for theUnitedStates-Mexico Border Program: "From within the arnmmt provided [for the Mexico Border program], $2,500,000 is directed to the El Paso and Brownsville, TX projects as in prior years."' The FY 2010 Appropriations Act also contains a rescission of $40,000,000 from the STAG and. Superfund appropriations accounts. For the STAG component of the rescission, the conferees directed the Agency to use unohligated balances from prior year categorical and other grant programs. Unlike in previous I "Section 444 of the Omani Ptoviiions of the Agency's FY 2010 ApPiropriatifiNs Ant *corporates by referesc-e a list oeCongressionally requested projects. ThfindingfQrINsq and BrownviIk ts toctuded in that. Itstof projects Internet Address (URL) • hitpdfwwW.epalov REIcYclOcUR4Rteglab.fe.sPdnred with vegetable Olt SaSied4rrks ReiCycfeetPatioriallinirnum 50% Postconsumer content) 2 years, the Agency may not include unobligated balances from prior year special project infrastructure grants as part of the rescission.2 The requirements governing the award of the special projects and programs are contained in the FY 2010 Appropriations Act and the Joint Explanatory Statement of the FY 2010 Appropriations Act — Department of the Interior, Environment, and Related Agencies Appropriations Act, 2010, the House Report (H.R. 2996). The specific requirements contained in these documents have been incorporated into this memorandum. THREE PERCENT SET-ASIDE The Agency's FY 2001 Appropriations Act (Pl. 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.3 EPA issued an additional formal policy memorandum, SAAP 06-02, on January 20, 2006, that amends the aforementioned memorandum (Attachment 5). The three percent set-aside provision is a permanent statutory authority, which means it applies to all FY 2001 and later 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 the United States -Mexico Border Program grants or any other funds in the STAG account. PROJECTS The Joint Explanatory Statement accompanying the FY 2010 Appropriations Act identifies 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, unless otherwise noted herein. Attachment 1 identifies the 317 earmarks listed in the STAG account and the two projects funded from monies appropriated for the United States -Mexico Border Program. Attachment 1 shows the original amount appropriated. for each project, as well as the actual 2The conference report accompanying P.L.111-88 reads "For the STAG component of the rescission, the conferees direct the Agency to use unobligated balances from prior year categorical and other grant programs. Unlike in previous years, the Agency is not to include as part of the rescission unobligated balances from prior year special project infrastructure grants. The conferees are concerned about the method by which the Agency has selected infrastructure grants as eligible for rescission and therefore will not allow the use of these types of funds for this specific rescission." ''Phis document is available on the Internet at www.epa.gov/owrrlmab/owm0318.pdf 3 amount available for grant award after the reduction due to the three percent set-aside provision.4 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 2010 Appropriations Act. COST -SHARE REQUIREMENT The FY 2010 Appropriations Act contains the following language: $156,777,000 shall be for making special project grants and technical corrections to prior -year 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 Though language from previous year appropriations requiring that waivers be based on financial capability issues was not included in the FY 2010 Appropriations Act or the Joint Explanatory Statement, the Agency will continue to implement the waiver provision in the same manner as previous years. 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 Explanatory Statement 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 Joint Explanatory Statement 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 grantamount will ` States that choose to perform the necessary construction oversight activities for the planning, design and building phases of a project 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 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. WAIVERS TO THE MATCHING REQUIREMENT In March 1997, EPA published Combined Sewer Overflows -- Guidance for Financial Capability Assessment and Schedule Development.5 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. Waivers 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.6 The requests, including the necessary supporting documentation and appropriate background material, should be submitted to the Chief, State Revolving Fund Branch, (Mail Code 4204M), 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 • s'rhis document is available on the Internet at www.eoa.gov/owrn/pdfs/csofc.pdf. 6 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. 5 • Appalachian Regional Commission grants As previously stated, Federal funds may be used as all or part of the match for other Federal grant programs only if the authorizing legislation includes such authority. Since the FY 2010 Appropriations Act does not include such language, the SAAP grant funds cannot be used as a source of matching funds for other Federal programs. LOANS FROM A STATE REVOLVING FUND AS A SOURCE OF MATCHING FUNDS The Agency provides funding for two separate State Revolving Fund (SRF) loan programs, the Clean Water State Revolving Fund (CWSRF) program and the Drinking Water State Revolving Fund (DWSRF) program. The Agency has taken actions that allow particular sources of funds from the two SRF programs to be used as a source of the local match. Specifically, the Agency issued the following two documents: A class deviation from the regulatory provisions of 40 CFR 35.3125(b)(1). The class deviation,? issued August 16, 2001, pertains to the CWSRF program. • A policy memorandum designated as DWSRF 02-01. The policy memorandum,$ issued October 10, 2001, pertains to the DWSRF program. The class,deviation and policy document listedabove allow State SRF programs to use the non -Federal and non -State match share of SRF funds to provide loans that can be used as the match for the special projects. The non -Federal funds include repayments, interest earnings and bond proceeds. The non -State match share (i.e., the overmatch) is any State contribution to the SRF above the statutorily required 20 percent match. The use of a loan from an SRF to provide part of or the entire match for a SAAP is a State SRF program agency decision. However, the action must be consistent with established State policy, guidelines and procedures governing the use of SRF loans. Projects that receive SRF assistance must also adhere to Federal CWSRF or DWSRF program requirements relating to eligibility and prioritization. PRE -AWARD COSTS The Office of Grants and Debarment (OGD) issued a policy memorandum (GPI 00-02) on March 30, 2000, that applies to all grants, including SAAPs awarded on or after April 1, 'This document is available on the internet at www.eoa.gov/owm/mab/owntO324pdf. 'This document is available on the internet at www.epa.gov/owm/mab/owm0325.pdf. 6 2000. Additionally, a clarification to the policy memorandum (GPI 00-02(a)) was issued by OGD on May 3, 2000. The two memoranda revised the Agency's interpretation of a provision contained in the general grant regulations at 40 CFR 31.23(a) concerning the approval of pre- award costs. In essence, the OGD memoranda state that: • Recipients may incur pre -award costs [up to] 90 calendar days prior to the award date provided they include such costs in their application, the costs meet the definition of pre -award costs and are approved by the EPA Project Officer and EPA Award Official. The award official can approve pre -award costs incurred more than 90 calendar days prior to the grant award date, in appropriate circumstances, if the pre -award costs are in conformance with the requirements set forth in 2, CFR 225 (supersedes OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments) and with applicable Agency regulations, policies and guidelines. The OGD memoranda state that the award official can approve pre -award costs incurred prior to grant award in appropriate situations if the approval of the pre -award costs is consistent with the intent of the requirements for pre -award costs set forth in 2 CFR 225 and are in conformance with Agency regulations, policies and guidelines. If otherwise consistent with the coverage of pre -award costs set forth in 2 CFR 225, Appendix B, the following two situations may meet these requirements: • Any allowable costs incurred after the start of the fiscal year for which the funds were appropriated but before grant award (for FY 2010 projects, this date is October 1, 2009). • • Allowable facilities planning and design costs associated with the construction portions of the project included in the grant that were incurred before the start of the fiscal year for which the funds were appropriated (for FY 2010 projects, this date is October 1, 2009), but only to the extent the costs conform with the requirements in 2 CFR 225. Appendix B for 2 CFR 225 states that "Pre -award costs are those incurred prior to the. effective date of the award directly pursuant to the negotiation and in anticipation of the award where such costs are necessary to comply withthe proposed delivery schedule or period of performance. Such costs are allowable only to the extent that they would have been allowable if incurred after the date of the award and only with the written approval of the awarding agency." Accordingly, effective April 1, 2000, the Regions have the authority to approve pre -award costs for the two situations described above, but only to the extent that the costs conform with the 7 requirements in 2 CFR 225. Any approval, of course, is contingent on the Regional Office determination that the pre -award costs in question are in conformance with the applicable Federal laws, regulations and Executive Orders that govern EPA grant awards and are allowable, reasonable and allocable to the project. The Regions may not approve any pre -award costs for SAAPs, other than those that involve the two situations discussed above, without written approval from Headquarters. The request, with sufficient supporting documentation, should be submitted to the Chief, State Revolving Fund Branch, (Mail Code 4204M), USEPA, 1200 Pennsylvania Avenue NW, Washington, D.C. 20460. The State Revolving Fund Branch will consult, in appropriate circumstances, with the National Policy,. Training and Compliance Division (NPTCD) within OGD and the Office of General Counsel. LAWS, REGULATIONS AND REQUIREMENTS A listing of the Federal Laws and Executive Orders that apply to all EPA grants, including the projects authorized by the Agency's FY 2010 Appropriations Act, tis contained in Attachment 3. Some of the authorities only apply to grants that include construction, e.g., Executive Order 13202. A more detailed description of the Federal laws, Executive Orders, OMB Circulars and implementing regulations pertaining to EPA grants is available through the OGD Grants Intranet website at http://intranet.epa.gov/ogd/, or through the OGD Grants Internet website at http://www.epa.gov/ogd/. The regulations at 40 CFR Part 31 apply to grants and cooperative agreements awarded to State and local (including tribal) governments. The regulations at 40 CFR Part 30 apply to grants with non-profit organizations and with non-governmental for-profit entities. In appropriate circumstances, such as grants for demonstration projects, the research and demonstration grant regulations at 40 CFR Part 40 can be used to supplement either 40 CFR Part 30 orPart 31. The Agency issued a memorandums on January 3, 1995 concerning the application of 40 CFR Part 29 (Intergovernmental Review) to the special projects authorized by the Agency's FY 1995 Appropriations Act. That memorandum also applies to the special projects authorized by the Agency's FY 2010 Appropriations Act. The Davis -Bacon Act does not apply to SAAP grants awarded under the authority of the Agency's FY 2010 Appropriations Act because the Appropriations Act does not include language that positively asserts such authority. The Agency issued a memorandum on November 30, 2009 concerning the application of Davis -Bacon Act wage requirements to FY 'This document is available on the internet at www.epa.gov/owrn/mab/owTn0326.pd£ 8 2010 SRF assistance agreements. i° If Clean Water or Drinking Water SRF funds are. used to provide the 45 % match for a FY 2010 SAAP grant, and if the SRF loan agreement was executed on or after October 30, 2009 -and prior to October 1, 2010, the entire project is subject to Davis - Bacon Act requirements. SPECIFIC ENVIRONMENTAL REQUIREMENTS The National Environmental Policy Act (NEPA) and other relevant applicable statutes and Executive Orders, such as the Endangered Species Act (ESA), apply to the SAAPs and programs in the STAG account authorized by the Agency's FY 2010 Appropriations Act. The applicable NEPA regulations are the Council of Environmental Quality's implementing regulations at 40 CFR Parts 1500-1508 and EPA's NEPA regulations at 40 CFR Part 6. EPA revised the regulations that implement NEPA on October 19, 2007. These regulations replace all previous guidance and memoranda. In accordance with EPA's revised NEPA regulations, EPA must complete the NEPA process before a grant award for construction. It should be noted that NEPA and other cross -cutting Federal requirements that apply to the major Federal action (i.e., the approval and/or funding of work beyond the conceptual design point) cannot be delegated. Although EPA may fund the grantee or state/tribal development of an Environmental Information Document (EID) or other analysis for cross cutting authorities or executive orders in order to provide supporting information, EPA has the legal obligation to make the NEPA related decision to issue the NEPA documents, to sign NEPA determinations, and to fulfill other cross -cutting Federal requirements before approving or paying for design and/or construction. Therefore, EPA grant funds cannot be used to prepare a federal document, such as an Environmental Assessment (EA) or Environmental Impact Statement (EIS). In April 2008, EPA issued a handbook entitled Environmental Review Guide for Special Appropriation Grants to help grantees develop an EID. This handbook, as well as an online training course, can be found on EPA's webpage at http://www.epa. gov/compliance/nepa/epacompliance/saaptraining/index.html. When both EPA and another Federal agency are funding the same project, the agencies may negotiate an agreement for one to be the lead agency for performing grant oversight and management activities, including those related to NEPA and other cross -cutting Federal requirements. The lead agency can be the one which is providing the most funds for the project, or the agency that provided the initial funds for the project. If an EIS is required, EPA should be a co -lead or cooperating agency so that it can adopt the EIS without re -circulating the document. If the project requires an EA, EPA may adopt the other agency's EA and use it as a basis for its Finding of No Significant Impact (FONSI), provided EPA has independently reviewed the EA and agrees with the analysis and circulates the FONSI and attached EA for the requisite 30 day comment period. Note that EPA may not use a Categorical Exclusion (CE) of another Federal agency unless EPA's regulations at 40 CFR Part 6 also provide for the CE. °This document is available on the intemet at www.epa.govfow lcwfinancekwsrf7davis bacompdf