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HomeMy WebLinkAboutResolutions - 2006.03.22 - 28201PLA - . & BUILDING COMMITTEE er ..... - March 23, 2006 MISCELLANEOUS RESOLUTION #06058 BY: Planning and Building Committee, Charles E. Palmer, Chairperson IN RE: DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS/WASTE RESOURCE MANAGEMENT - UNITED STATES ENVIRONMENTAL PROTECTION AGENCY - BROWNFIELDS CLEANUP REVOLVING LOAN FUND (BCRLF) SUPPLEMENTAL GRANT AMENDMENT To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS pursuant to Miscellaneous Resolution #99252, "Board of Commissioners - Amendments to the Grants Procedures", the Solid Waste Resource Management Unit of the Department of Economic Development and Community Affairs applied to the United States Environmental Protection Agency (USEPA) for a grant to capitalize a Brownfield Cleanup Revolving Loan Fund (BCRLF) program in the amount of $394,350; and WHEREAS the USEPA awarded Oakland County a Brownfield Cleanup Revolving Loan Fund (BCRLF) grant in the amount of $394,350 by Miscellaneous Resolution #04321 for the period starting in 2004; and WHEREAS the USEPA has authorized the transition of $155,650 to this grant from the original BCRLF grant accepted by Miscellaneous Resolution #02285; and WHEREAS the amendment will increase the $394,350 supplemental fund by $155,650 for a grant total of $550,000; and WHEREAS funds will be used to reimburse the County for all grant programmatic support as well as direct administration for oversight of cleanups and loan capitalization; and WHEREAS grant funds will cover 100% of the program cost and no General Fund/ General Purpose appropriation is required; and WHEREAS acceptance of the grant does not obligate the County to any future commitments; and WHEREAS the grant agreement has been processed through the County Executive Contract Review Process and the Board of Commissioners Grant Acceptance Procedures. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners accepts the Brownfield Cleanup Revolving Loan Fund (BCRLF) grant amendment from the United States Environmental Protection Agency in the amount of $155,650. BE IT FURTHER RESOLVED that the Board Chairperson is authorized to execute the grant agreement and to approve grant changes and extensions, within 15 percent of the original award, which are consistent with the original agreement. BE IT FURTHER RESOLVED that the Fiscal Year 2006 Special Revenue Budget be amended to reflect this new award. Chairperson, on behalf of the Planning & Building Committee, I move the adoption of the foregoing resolution. Planning & Building Committee vote: Motion carried on a unanimous roll call vote FEB 06 2006 REPLY TO THE ATTENTION OF cie.0 Sr.o. hi ilk T) 313 PRCOP UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 5 77 WEST JACKSON BOULEVARD CHICAGO, IL 60604-3590 S-6J Thomas Law, Chair Oakland County Board of Commissioners 1200 N. Telegraph Executive Office Bldg. 34 East Pontiac, MI 48341 RE: Cooperative Agreement (CA) No. BF97570902-1 Dear Mr. Law: Thank you for your application of July 16, 2004, requesting funds under the Comprehensive Environmental Response, Compensation and Liability Act, as amended, for the Brownfield Cleanup Revolving Loan Fund. The enclosed Assistance Amendment confirms my approval of the addition of $155,650 transition funds under the new law. The project and budget periods are from February 2, 2006 through September 30, 2008. Please sign, date and return the original and two copies of the Amendment to the Acquisition-Assistance Branch, Region 5, Mail Code G-10J within 21 days from the date of this letter. I appreciate your interest in the brownfields program and your patience while this award was being processed. Matthew Didier will continue to serve as the technical manager to assist you and to monitor the progress of your project. Matt can be reached at 312/353-2112. Craig Mankowski is the project officer to contact for administrative issues at 312/886-9493. Best wishes for continued success with your program. Sincerely, aLC e e Richard C. Karl, Director Superfund Division Enclosures cc: Matt Didier Recycled/Recyclable • Printed with Vegetable Oil Based Inks on 50% Recycled Paper (20% Postconsumer) Brad Hansen From: Wayne Keller [kellerw@co.oakland.mi.us] Sent: Tuesday, February 28, 2006 3:43 PM To: Hansen, Brad Subject: FW: GRANT REVIEW - Community and Economic Development Original Message From: Greg Givens [mailto:givensg@co.oakland.mi.us] Sent: Tuesday, February 28, 2006 3:40 PM To: Doyle, Larry; Law, Tom; Keller, Wayne; Jones, Hayes Cc: Frederick, Candace; Smith, Laverne; Mitchell, Sheryl; Pardee, Mary; Hanger, Helen; Wenzel, Nancy; Johnston, Brenthy; Worthington, Pam Subject: GRANT REVIEW - Community and Economic Development GRANT REVIEW - Community and Economic Development GRANT NAME: 2006 Brownfield Cleanup Revolving Fund FUNDING AGENCY: US Environmental Protection Agency DEPARTMENT CONTACT PERSON: Thomas Law / 8-2113 STATUS: Amendment - Greater than 15% variance from the original agreement DATE: February 28, 2006 Pursuant to Misc. Resolution #01320, please be advised the captioned grant materials have completed internal grant review. Below are the comments returned by review departments. The amendment constitutes a greater than 15% variance from the original agreement. The captioned grant materials and amendment acceptance package (which should include the Board of Commissioners' Liaison Committee Resolution, the grant agreement/contract, Finance Committee Fiscal Note, and this email containing grant review comments) may be requested to be placed on the appropriate Board of Commissioners' committee(s) for grant acceptance by Board resolution. Department of Management and Budget: Approved.- Laurie Van Pelt (2/22/2006) Department of Human Resources: Approved. - Jennifer Mason (2/22/2206) Risk Management and Safety: Approved By Risk Management - Andrea Plotkowski (2/23/2006) Corporation Counsel: I have reviewed the 2006 Brownfield Cleanup Revolving Loan Fund (BCRLG) Grant Amendment. I approve the same on behalf of Corporation Counsel. Please contact me at the number provided below if you have further questions or concerns regarding this grant review. - Mary M. Mara (2/27/2006) 1 BF - 97570902 - 1 Pa - ASSISTANCE ID NO. soiSD .4)4. U.S. ENVIRONMENTAL PRG I DOC ID 1AMEND# DATE OF AWARD 'AI Vi PROTECTION AGENCY BF - 97570902 - 1 FEB 0 6 200e TYPE OF ACTION MAILING DATE (Zia I Augmentation: Increase FEB 0 6 2005 Cooperative Agreement PAYMENT METHOD: ACH# A efic,ASAP 2675645 RECIPIENT TYPE: Send Payment Request to: County Comptroller Branch, MF-10J 77 West Jackson Blvd. Chicago, IL 60604 RECIPIENT: PAYEE: County of Oakland Michigan County of Oakland Michigan 1200 N. Telegraph Rd. 1200 N. Telegraph Rd. Pontiac, MI 48341 Pontiac, MI 48341 EIN: 38-6004876 PROJECT MANAGER EPA PROJECT OFFICER EPA GRANT SPECIALIST Bradley J. Hansen Craig Mankowski Karen Sykes 1200 N. Telegraph Rd. 77 West Jackson Blvd. Assistance Section, MC-10J Pontiac, MI 48341 Chicago, IL 60604-3507 E-Mail: sykes.karen@epamaiLepa.gov E-Mall: hansenb@co.oakland.mi.us E-Mail: Mankowski.Craig@epamaiLepa.gov Phone: (312) 886-7571 Phone: 248-858-8073 Phone: (312) 886-9493 PROJECT TITLE AND EXPLANATION OF CHANGES RLF transition This amendment completes the funding of the Revolving Loan Transition to the County of Oakland, Michigan. Increase of Funds (Supplemental); Time Extension Amendment transition $155,650 BUDGET PERIOD PROJECT PERIOD TOTAL BUDGET PERIOD COST TOTAL PROJECT PERIOD COST . 10/01/2004 - 09/30/2008 10/01/2004 - 09/30/2008 $550,000.00 $550,000.00 NOTE: The Agreement must be completed in duplicate and the Original returned to the appropriate Grants Management Office listed below, within 3 calendar weeks after receipt or within any extension of time as may be granted by EPA. Receipt of a written refusal or failure to return the properly executed document within the prescribed time, may result in the withdrawal of the offer by the Agency. Any change to the Agreement by the Recipient subsequent to the document being signed by the EPA Award Official, which the Award Official determines to materially alter the Agreement, shall void the Agreement. OFFER AND ACCEPTANCE The United States, acting by and through the U.S. Environmental Protection Agency (EPA), hereby offers Assistance/Amendment to the County of Oakland Michigan for 100.00 % of all approved costs incurred up to and not exceeding 6550.000 for the support of approved budget period effort described in application (Including all application modifications) cited in the Project Title and Description above, signed 07116/2004 included herein by reference. ISSUING OFFICE (GRANTS MANAGEMENT OFFICE) AWARD APPROVAL OFFICE ORGANIZATION / ADDRESS ORGANIZATION / ADDRESS U.S. EPA Region 5 U.S. EPA, Region 5 Mail Code MCG10J Superfund 77 West Jackson Blvd. 77 West Jackson Blvd. Chicago, IL 60604-3507 Chicago, IL 60604-3507 THE UNITED STATES OF AMERICA BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY SIGNATU E FAR9i0FFIrt e TYPED t---e.A PED NAME AND TITLE DATE 7 RICHARD C. KARL, DIRECTOR, SUPERFUND DIVISION 2 - 6 - 0 6. ihis agreement is subject to applicable U.S. Environmental Protection Agency statutory provisions and assistance regulations. In accepting this award or amendment and any payments made pursuant thereto, (1) the undersigned represents that he is duly authorized to act on behalf of the recipient organization, and (2) the recipient agrees (a) that the award is subject to the applicable provisions of 40 CFR Chapter 1, Subchapter B and of the provisions of this agreement (and all attachments), and (b) that acceptance of any payments constitutes an agreement by the payee that the amounts, if any found by EPA to have been overpaid will be refunded or credited in full to EPA. BY AND ON BEHALF OF THE DESIGNATED RECIPIENT ORGANIZATION SIGNATURE TYPED NAME AND TITLE DATE THOMAS LAW, CHAIR, BOARD OF COMMISSIONERS EPA Funding Information BF - 97570902 - 1 Page 2 4 ' P FUNDS FORMER AWARD THIS ACTION AMENDED TOTAL EPA Amount This Action $ 394,350 $ 155,650 $ 550,000 EPA In-Kind Amount $ 0 $ $ 0 Unexpended Prior Year Balance $ 0 $ $ 0 Other Federal Funds $ 0 $ $ 0 Recipient Contribution $ 0 $ $ 0 State Contribution $ 0 $ $ 0 Local Contribution $ 0 $ $ 0 Other Contribution $ 0 $ $ 0 Allowable Project Cost $ 394,350 $ 155,650 $ 550,000 Assistance Program (CFDA) Statutory Authority Regulatory Authority 66.818 - Brownfields Assessment and Cleanup CERCLA: Sec. 101(39) 40 CFR PART 31 Cooperative Agreements Fiscal Site Name DCN FY Approp. Budget PRC Object Site/Project Cost Obligation / Code Organization Class Organization Deobligation OAKLND RLF STX006 06 E4C 0500AG7 402D79E 4114 G53MOLOO - 155,650 155,650 BF - 97570902 - 1 Page 3 Budaet Summary Paae Table A - Object Class Category Total Approved Allowable (Non-construction) Budget Period Cost 1. Personnel $50,000 2. Fringe Benefits $0 3. Travel $5,000 4. Equipment $2,000 5. Supplies $3,000 6. Contractual $50,000 7. Construction $0 8. Other $440,000 9. Total Direct Charges $550,000 10. Indirect Costs: % Base $0 11. Total (Share: Recipient % Federal 100.00 %.) $550,000 12. Total Approved Assistance Amount $550,000 13. Program Income $0 BF - 97570902 - 1 Page 4 Administrative Conditions All Administrative Conditions Remain the Same with the exeception of Term and Condition number 3 which is modified as follows: 3. MBE/WBE In accordance with EPA's Program for Utilization of Small, Minority and Women's Business Enterprises in procurement under assistance programs, the recipient agrees to: a) Accept the applicable FY 2006 "fair share" goals negotiated with EPA by the State as follows: Combined Rate MBE: 3% WBE: 5% If the recipient does not want to rely on applicable State's MBE/WBE goals, the recipient agrees to submit proposed MBENVBE goals based on availability of qualified minority and women-owned businesses to do work in relevant market for construction, services, supplies and equipment. "Fair share" objectives must be submitted to the MBE/VVBE Coordinator, within 30 days of award and approved by EPA no later than 30 days thereafter. b) Ensure to the fullest extent possible that at least the FY 2006 "fair share" objective [see a) above] of Federal funds for prime contractors or subcontracts for supplies, construction, equipment or services are made available to organizations owned or controlled by socially and economically disadvantaged individuals, women and historically black colleges and universities. c) Include in bid documents "fair share" objectives of 2006 fair share percentage [see a) above] and require all of its contractors to include in their bid documents for subcontracts the negotiated fair share percentages. d) Follow the six affirmative steps stated in 40 CFR 30.44(b) 40 CFR 31.36(e), 35.3145(d), or 35.6580, as appropriate. e) For assistance awards for continuing environmental programs and assistance awards with institutions of higher education, hospitals and other non-profit organizations, submit an EPA Form 5700-52A, "MBENVBE Utilization Under Federal Grants, Cooperative Agreements and Interagency Agreements" to the EPA Award Official by October 30 of each year. f) In the event race and/or gender neutral efforts prove to be inadequate to achieve a fair share objective for MBENVBEs, 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 objective. Until the recipient has completed its fair share negotiations with EPA, it agrees to maintain state Agency's fair share objectives. Once the recipient has completed its fair share negotiations with EPA, it will apply those objectives. The recipient also agrees to include in its bid documents the applicable FY 2006 "fair share" objectives and require all of its prime contractors to include in their bid documents for subcontracts the applicable FY 2006 "fair share" percentages and to comply with paragraphs (c) through (e) above. Programmatic Conditions All Programmatic Conditions Remain the Same with the exception of Term and Condition VII . Environmental Results that is added to this assitance agreement. Revolving Loan Fund IRLF) Terms and Conditions Please note that these Terms and Conditions (T&Cs) apply to brownfields RLF capitalization grants awarded under CERCLA 104(k) and those that chose to transition to 104(k). They do not apply to pre-FY 2003 grants subject to 104(d). g) I. GENERAL FEDERAL REQUIREMENTS A. Federal Policy and Guidance 1. a. Cooperative Agreement Recipients: In implementing this agreement, the cooperative agreement recipient (CAR) shall comply with and require that work done by borrowers and subgrant recipients with cooperative agreement funds comply with the requirements of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) 104(k). The CAR will ensure that cleanup activities supported with cooperative agreement funding comply with all applicable Federal and State laws and regulations. The CAR will ensure cleanups are protective of human health and the environment. b. The CAR must consider whether it is required to have borrowers or subgrant recipients conduct cleanups under a State or Tribal response program. If the CAR chooses not to require borrowers and subgrant recipients to participate in a State or Tribal response program, then the CAR is required to consult with the Environmental Protection Agency (EPA) on each loan or subgrant to ensure the proposed cleanup is protective of human health and environment. c. If the State or Tribe does not have a promulgated Response Program, then the CAR is required to consult with the Environmental Protection Agency (EPA) to ensure protectiveness of human health and environment. 2. a. Borrowers and Subgrant recipients: A term and condition or other legally binding provision shall be included in all loans and subgrants entered into with the funds under this agreement, or when funds awarded under this agreement are used in combination with non-Federal sources of funds, to ensure that borrowers and subgrant recipients comply with all applicable Federal and State laws and requirements. In addition to CERCLA 104(k) Federal applicable laws and requirements include: b. 40 CFR 31 and OMB Circular A-87 for governmental recipients of subgrants or 40 CFR 30 and OMB Circular A-122 for non-profit recipients of subgrants and 40 CFR 30 and OMB Circular A-21 for educational institutions recipients of subgrants. c. CERCLA 104(g) requires that borrowers and subgrantees comply with the prevailing wage rate requirements under the Davis-Bacon Act of 1931 for construction, repair or alteration contracts "funded in whole or in part" with funds provided under this agreement. The CAR must ensure that the borrower or subgrantee obtains recent and applicable wage rates from the U.S. Department of Labor and incorporate them into the construction, alteration or repair contract. d. The 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. e. Federal cross-cutting requirements including, but not limited to, MBE/WBE requirements found at 40 CFR 31.36(e) or 40 CFR 30.44(b); OSHA Worker Health & Safety Standard 29 CFR 1910.120; the Uniform Relocation Act; National Historic Preservation Act; Endangered Species Act; and Permits required by Section 404 of the Clean Water Act; Executive Order 11246, Equal Employment Opportunity, and implementing regulations at 41 CFR 60-4; Contract Work Hours and Safety Standards Act, as amended (40 USC 327-333) the Anti Kickback Act (40 USC 276c) and Section 504 of the Rehabilitation Act of 1973 as implemented by Executive Orders 11914 and 11250. B. Eligible Brownfields Site Determinations 1. a. The CAR must provide information to EPA about site-specific work prior to incurring any costs this cooperative agreement for sites that have not already been pre-approved in the CAR's workplan by the EPA. The information that must be provided includes whether or not the site meets the definition of a brownfield site as defined in §101(39) of CERCLA, the identity of the owner, and the date of acquisition. b. If the site is excluded from the general definition of a brownfield site, but is eligible for a property-specific funding determination, then the CAR must provide information sufficient for EPA to make a property-specific funding determination. The CAR must provide sufficient information on how financial assistance will protect human health and the environment, and either promote economic development or enable the creation of, preservation of, or addition to parks, greenways, undeveloped property, other recreational property, or other property used for nonprofit purposes. The CAR must not incur costs for cleaning up sites requiring a property-specific funding determination by EPA until the EPA Project Officer has advised the CAR that the Agency has determined that the property is eligible. 2. a. For any petroleum-contaminated brownfields site that is not included in the CAR's EPA approved work plan, the CAR shall provide sufficient documentation to the EPA prior to incurring costs under this cooperative agreement which includes (see the latest version of EPA's Proposal Guidelines for Brownfields Assessment, Revolving Loan Fund and Cleanup Grants for discussion of this element): (1) that a State has determined that the petroleum site is of relatively low risk, as compared to other petroleum sites in the State; (2) that the State determines there is "no viable responsible party" for the site; (3) that the State determines that the person assessing, investigating, or cleaning up the site is a person who is not potentially liable for cleaning up the site; and (4) that the site is not subject to any order issued under section 9003(h) of the Solid Waste Disposal Act. This documentation must be prepared by the CAR or the State following contact and discussion with the appropriate petroleum program official. b. Documentation must include the identity of the State program official contacted, the State official's telephone number, the date of the contact, and a summary of the discussion to reach each determination that the site is of relatively low risk, that there is no viable responsible party and that the person assessing, investigating, or cleaning up the site is a person who is not potentially liable for cleaning up the site. Other documentation provided by a State to the recipient relevant to any of the determinations by the State must also be provided to the EPA Project Officer. c. If the State chooses not to make the determinations described in 2.a. above, the CAR must contact the EPA Project Officer and provide the information necessary for EPA to make the requisite determinations. d. EPA must also make all deteiminations on the eligibility of petroleum- contaminated brownfields sites located on Indian tribal lands. Prior to incurring costs for these sites, the CAR must contact EPA Project Officer and provide the information necessary for EPA to make the determinations described in 2.a. II. GENERAL COOPERATIVE AGREEMENT ADMINISTRATIVE REQUIREMENTS A. Term of the Agreement 1. The term of an RLF agreement is five years, unless otherwise extended by EPA at the CAR's request. 2. If after 3/4 years [choose one], EPA determines that the recipient has not made sufficient progress in implementing its RLF, the EPA may terminate the agreement. Sufficient progress is indicated by the grantee having made at least one loan or sub grant. B. Substantial Involvement 1. The U.S. EPA may be substantially involved in overseeing and monitoring this cooperative agreement. a. Substantial involvement by the U.S. EPA generally includes administrative activities such as: monitoring; review and approval of procedures for loan and subgrant recipient selection; review of project phases; and approval of substantive terms included in professional services contracts. b. Substantial EPA involvement also includes brownfields property-specific funding determinations described in I. B.1. under EPA and/or State Approvals of Brownfields Sites above. The CAR may also request technical assistance from EPA on which sites qualify as a brownfields site and when determining whether the statutory prohibition found in section 104(k)(4)(B)(i)(IV) of CERCLA applies. Generally, this prohibition prohibits a grant or loan recipient from using grant funds to cleanup a site if the recipient is potentially liable under §107 of CERCLA for that site. c. Substantial EPA involvement may include reviewing financial and environmental status reports; and monitoring all reporting, record-keeping, and other program requirements. d. Substantial EPA involvement may include the review of the substantive terms of RLF loans and cleanup subgrants. e. EPA may waive any of the provisions in term and condition II. B.1, with the exception of property-specific funding determinations. EPA will provide waivers in writing. 2. Effect of EPA's substantial involvement includes: a. EPA's review of any project phase, document, or cost incurred under this cooperative agreement will not have any effect upon CERCLA §128 Eligible Response Site determinations or for rights, authorities, and actions under CERCLA or any Federal statute. b. The CAR remains responsible for ensuring that all cleanups are protective of human health and the environment and comply with all applicable Federal and State laws. c. The CAR remains responsible for ensuring costs are allowable under applicable OMB Circulars. C. Cooperative Agreement Recipient Roles and Responsibilities 1. The CAR must acquire the services of a qualified environmental professional(s) to coordinate, direct, and oversee the brownfields assessment and cleanup activities at a particular site, if they do not have such a professional on staff. 2. The CAR shall act as or appoint a qualified "fund manager" to carry out responsibilities that relate to financial management of the loan and/or subgrant program. However, the CAR remains accountable to EPA for the proper expenditure of cooperative agreement funds. Any funding arrangements between the CAR and the fund manager for services performed must be consistent with 40 CFR Part 31. 3. The CAR is responsible for ensuring that borrowers and subgrant recipients comply with the terms of their agreements with the CAR, and that agreements between the CAR and borrowers and subgrant recipients are consistent with the terms and conditions of this agreement. D. Quarterly Progress Reports 1. The CAR must submit progress reports on a quarterly basis (30 days after the end of each Federal fiscal quarter) to the EPA Project Officer. The progress reports must document incremental progress at achieving the project goals and milestones. Quarterly progress reports must include: a. Documentation of: progress at meeting performance outcomes/outputs; project narrative; project time line, and an explanation for any slippage in meeting established outputs/outcomes. b. An update on project milestones. c. A budget recap summary page with the following headings: Current Approved Budget; Costs Incurred this Quarter; Costs Incurred to Date; and Total Remaining Funds. d. If applicable, quarterly reports must specify costs incurred at petroleum-only brownfields sites. e. Recipient quarterly reports must clearly identify which activities performed during the reporting period were undertaken with EPA funds, and will relate EPA-funded activities to the objectives and milestones agreed upon in the work plan including a list of sites where cleanup (either through loans or subgrants) activities were completed. To the extent consistent with the scope of work for this agreement, activities undertaken with EPA funds to be included in quarterly performance and financial reporting include: 1. Acres per property(ies) 2. No cleanup required 3. Cleanup completed 4. Types of contaminants removed/addressed 5. Acres of greenspace created/preserved 6. Number of properties with one(1) or more engineering/institutional controls 7. Redevelopment underway 8. Number/value of loans made 9. Number/value of sub grants made 10. Funds leveraged 11. Jobs leveraged 12. Health monitoring studies, insurance, and/or institutional controls funded 2. The CAR must maintain records that will enable it to report to EPA on the amount of funds expended by the CAR, borrowers or subgrant recipients at petroleum sites. 3. The CAR must complete and submit relevant portions of the Property Profile Form (available at http://www.epa.gov/brownfields/pubs/rptforms.htm or from the EPA Project Officer) reporting the signing of a loan or subgrant, the initiation of cleanup activities, and the completion of cleanup activities. The CAR must submit the updated Property Profile Form reflecting such events within 30 days after the end of the Federal fiscal quarter in which the event occurred. 4. In accordance with 40 C.F.R. § 31.40 (d), the recipient agrees to inform EPA as soon as problems, delays or adverse conditions become known which will materially impair the ability to meet the outputs/outcomes specified in the assistance agreement work plan. III. FINANCIAL ADMINISTRATION REQUIREMENTS B. Eligible Uses of the Funds for the Cooperative Agreement Recipient, Borrower, and/or Subgrant Recipients 1. To the extent allowable under the EPA approved scope of work, cooperative agreement funds may be used for eligible programmatic expenses to capitalize the RLF and conduct cleanups. 2. The CAR must maintain records that will enable it to report to EPA on the amount of costs incurred by the CAR, borrowers or subgrant recipients at petroleum-only brownfields sites. 3. At least 60% of the funds must be used by the CAR to provide loans for the cleanup of eligible brownfields sites and for eligible programmatic costs for managing the RLF. Up to 40% can be used for subgrants to clean up eligible brownfield sites under the RLF and for eligible programmatic costs for managing subgrant(s) (note: cleanup subgrants are limited to $200,000 per site). 4. To determine whether a cleanup subgrant is appropriate, the CAR must consider: a. The extent the subgrant will facilitate the creation of, preservation of, or addition to a park, greenway, undeveloped property, recreational property, or other property used for nonprofit purposes; b. The extent the subgrant will meet the needs of a community that has the inability to draw on other sources of funding for environmental remediation and subsequent redevelopment of the area in which a brownfield site is located because of the small population or low income of the community; c. The extent the subgrant will facilitate the use or reuse of existing infrastructure; and d. The benefit of promoting the long-term availability of funds from a revolving loan fund for brownfield remediation. The CAR must maintain sufficient records to support and document these determinations. 5. The CAR may use cooperative agreement funds to capitalize a revolving loan fund to be used for loans or subgrants for cleanup and for eligible programmatic expenses. Eligible programmatic expenses may include direct costs for: a. Determining whether RLF cleanup activities at a particular site are authorized by CERCLA 104(k); b. Ensuring that a RLF cleanup complies with applicable requirements under Federal and State laws, as required by CERCLA 104(k); c. Ensuring that public participation requirements are met. This includes developing or funding a community relations plan which will include reasonable notice, opportunity for involvement, and response to comments; d. Establishing an administrative record for each site; e. Ensuring the adequacy of each RLF cleanup as it is implemented, including overseeing the borrowers and/or subgrantees activities to ensure compliance with applicable Federal and State environmental requirements; f. The development of Quality Assurance Project Plans (QAPPs) as required by Part 31 and Part 30 regulations; Ensuring that the site is secure if a borrower or subgrant recipient is unable or unwilling to complete a brownfields cleanup; h. Preparing an analysis of brownfields cleanup alternatives which will include information about the site and contamination issues (i.e., exposure pathways, identification of contaminant sources, etc.); cleanup standards; applicable laws; alternatives considered; and the proposed cleanup. The evaluation of alternatives must include effectiveness, implementability, and the cost of the response proposed. The evaluation will include an analysis of reasonable alternatives including no action; i. For petroleum sites, an analysis of cleanup alternatives would include considering a range of proven cleanup methods including identification of contaminant sources, exposure pathways, and an evaluation of corrective measures; g. Using a portion of the grant, loan or subgrant to purchase environmental insurance for the characterization, assessment or remediation of the site. The grant loan or subgrant may not be used to purchase insurance intended to provide coverage for any of the Ineligible Uses under Section D. k. Any other eligible programmatic costs including costs incurred by the recipient in making and managing a loan; obtaining financial management services; quarterly reporting to EPA; awarding and managing subgrants to the extent allowable in III. D. 2.; and carrying out outreach pertaining to the loan and subgrant program to potential borrowers and subgrant recipients; and 1. Subgrantee progress reporting to the CAR is an eligible programmatic cost. C. 1. No more than 10% of the funds awarded by this agreement may be used by the CAR itself as a programmatic cost for brownfield program development and implementation (including monitoring of health and institutional controls) as described in Task of the EPA approved scope of work. The CAR must maintain records on funds that will be used to carry out Task ___ of its EPA approved scope of work to ensure that no more than 10% of its funds are used for brownfield program development and implementation (including monitoring of health and institutional controls). 2. If the CAR makes a subgrant to a local government that includes an amount (not to exceed 10% of the subgrant) for brownfields program development and implementation, the terms and conditions of that agreement must include a provision that ensures that the local government subgrantee maintains records adequate to ensure compliance with the limits on the amount of subgrant funds that may be expended for this purpose. D. Ineligible Uses of the Funds for the Cooperative Agreement Recipient, Borrower, and/or Subgrant Recipients 1. Cooperative agreement funds shall not be used by the CAR, borrower and/or subgrant recipient for any of the following activities: a. Pre-cleanup environmental assessment activities, such as site assessment, identification, and characterization with the exception of site monitoring activities that are reasonable and necessary during the cleanup process, including determination of the effectiveness of a cleanup. b. Monitoring and data collection necessary to apply for, or comply with, environmental permits under other federal and state laws, unless such a permit is required as a component of the cleanup action. c. Construction, demolition, and development activities that are not cleanup actions (e.g., marketing of property or construction of a new non-cleanup facility), and J. addressing public or private drinking water supplies that have deteriorated through ordinary use; d. Job training unrelated to performing a specific cleanup at a site covered by a loan or subgrant. e. To pay for a penalty or fine. f. To pay a federal cost share requirement (for example, a cost-share required by another Federal grant) unless there is specific statutory authority. To pay for a response cost at a brownfields site for which the recipient of the grant or loan is potentially liable under CERCLA §107. h. To pay a cost of compliance with any federal law, excluding the cost of compliance with laws applicable to the cleanup. i. Unallowable costs (e.g., lobbying and fund raising) under applicable OMB Circulars. 2. Under CERCLA 104(k)(4)(B), administrative costs are prohibited costs under this agreement. Prohibited administrative costs include all indirect costs under applicable OMB Circulars incurred by the CAR and subgrantees. a. Ineligible administrative costs include costs incurred in the form of salaries, benefits, contractual costs, supplies, and data processing charges, incurred to comply with most provisions of the Uniform Administrative Requirements for Grants contained in 40 CFR Part 30 or 40 CFR part 31. Direct costs for grant and subgrant administration, with the exception of costs specifically identified as eligible programmatic costs, are ineligible even if the grantee or subgrant recipient is required to carry out the activity under the grant agreement. Costs incurred to report quarterly performance to EPA under the grant are eligible. b. Ineligible grant or subgrant administration costs include direct costs for: (1) Preparation of applications for Brownfields grants and subgrants; (2) Record retention required under 40 CFR 30.53 and 40 CFR 31.42; (3) Record-keeping associated with supplies and equipment purchases required under 40 CFR 30.33, 30.34, and 30.35 and 40 CFR 31.32 and 31.33; (4) Preparing revisions and changes in the budgets, scopes of work, program plans and other activities required under 40 CFR 30.25 and 40 CFR 31.30; g. (5) Maintaining and operating financial management systems required under 40 CFR 30 and 40 CFR 31; (6) Preparing payment requests and handling payments under 40 CFR 30.22 and 40 CFR 31.21; (7) Non-federal audits required under 40 CFR 30.26, 40 CFR 31.26, and OMB Circular A-133; and (8) Close out under 40 CFR 30.71 and 40 CFR 31.50. 3. Borrowers are subject to the CERCLA 104(k)(4)(B) administrative cost prohibition requirements. The CAR must ensure that loan agreements prohibit borrowers and subgrantees from using loans financed with cooperative agreement funds for administrative costs. a. Prohibited administrative costs for the borrower (including those in the form of salaries, benefits, contractual costs, supplies, and data processing charges) are those incurred for loan administration and overhead costs. b. Direct costs for loan administration are ineligible even if the borrower is required to carry out the activity under the loan agreement. Ineligible loan administration costs include expenses for: (1) Preparation of applications for loans and loan agreements; (2) Preparing revisions and changes in the budget, work plans, and other documents required under the loan agreement; (3) Maintaining and operating financial management and personnel systems; (4) Preparing payment requests and handling payments; and (5) Audits. c. Overhead costs by the borrower that do not directly clean up brownfields site contamination or comply with laws applicable to the cleanup are ineligible administrative costs. Examples of overhead costs that would be ineligible in loans include expenses for: (1) Salaries, benefits and other compensation for person who are not directly engaged in the cleanup of the site (e.g., marketing and human resource personnel); (2) Facility costs such as depreciation, utilities, and rent on the borrower's administrative offices; and (3) Supplies and equipment not used directly for cleanup at the site. d. Costs incurred by the borrower for procurement are eligible only if the procurement contract is for services or products that are direct costs for performing the cleanup, for insurance costs, or for maintenance of institutional controls. e. Direct costs by the borrower for progress reporting to the lender are eligible programmatic costs. 4. Cooperative agreement funds may not be used for any of the following properties: a. Facilities listed, or proposed for listing, on the National Priorities List (NPL); b. Facilities subject to unilateral administrative orders, court orders, administrative orders on consent or judicial consent decree issued to or entered by parties under CERCLA; c. Facilities that are subject to the jurisdiction, custody or control of the United States government except land held in trust by the United States government for an Indian tribe; or d. A site excluded from the definition of a brownfields site for which EPA has not made a property-specific funding determination. E. Subgrant Recipient and Borrower Eligibility 1. The CAR may only provide cleanup subgrants to an eligible entity or nonprofit organization to clean up sites owned by the eligible entity or nonprofit organization at the time the subgrant is awarded. Eligible subgrant recipients include eligible entities as defined under CERCLA 104(k)(1) and non profit organizations as defined at Section 4(6) of the Federal Financial Assistance Management Improvement Act of 1999. Nonprofit organizations described in Section 501(c)(4) of the Internal Revenue Code that engage in lobbying activities as defined in Section 3 of the Lobbying Disclosure Act of 1995 are not eligible for subgrants. 2. The subgrant recipient must retain ownership of the site throughout the period of performance of the subgrant. For the purposes of this agreement, the term "owns" means fee simple title unless EPA approves a different arrangement. However, the CAR may not provide a subgrant to itself or another component of its own unit of government or organization. 3. The CAR shall not loan or subgrant funds that will be used to pay for cleanup activities at a site for which a loan or grant recipient is potentially liable under CERCLA §107. The CAR may rely on its own investigation which can include an opinion from the subgrant recipient's or borrower's counsel. However, the CAR must advise the borrower or subgrant recipient that the investigation and/or opinion of the subgrant recipient's or borrower's counsel is not binding on the Federal Government. 4. For approved eligible petroleum-contaminated brownfields sites, the person assessing, investigating, or cleaning up the site must be a person who is not potentially liable for cleaning up the site. For brownfields grant purposes, an entity generally will not be considered potentially liable for petroleum contamination if it has not dispensed or disposed of petroleum or petroleum- product at the site, has not exacerbated the contamination at the site, and took reasonable steps with regard to the contamination at the site. 5. The CAR shall maintain sufficient documentation supporting and demonstrating the eligibility of the sites, borrowers, and subgrant recipients. 6. A borrower or subgrant recipient must submit information regarding its overall environmental compliance history including any penalties resulting from environmental non- compliance at the site subject to the loan or subgrant. The CAR, in consultation with the EPA, must consider this history in its analysis of the borrower or subgrant recipient as a cleanup and business risk. 7. An entity that is currently suspended, debarred, or otherwise declared ineligible cannot be a borrower or subgrant recipient. F. Obligations for Grant Recipients, Borrowers, or Subgrantees Asserting a Limitation on Liability from CERCLA §107 1. Grant recipients, borrowers, or subgrantees who are eligible, or seek to become eligible, to receive a grant, loan, or subgrant based on a liability protection from CERCLA as a: (1) bona fide prospective purchaser (BFPP), (2) contiguous property owner (CPO), or (3) innocent landowner (ILO) (known as the "landowner liability protections"), must meet certain threshold criteria and satisfy certain continuing obligations to maintain their status as an eligible grant recipient, borrower, or subgrantee. These include, but are not limited to the following: a. All grant recipients, borrowers, or subgrantees asserting a BFPP, CPO or ILO limitation on liability must perform (or have already performed) "all appropriate inquiry," as found in section 101(35)(B) of CERCLA, on or before the date of acquisition of the property. b. Grant recipients, borrowers, or subgrantees seeking to qualify as bona fide prospective purchasers or contiguous property owners must not be: (1.) potentially liable, or affiliated with any other person that is potentially liable, for response costs at the facility through (a) any direct or indirect familial relationship; or (b) any contractual, corporate, or financial relationships; or (2.) a reorganized business entity that was potentially liable or (3.) otherwise liable under CERCLA §107(a) as a prior owner or operator, or generator or transporter of hazardous substances to the facility. c. Landowners must meet certain continuing obligations in order to achieve and maintain status as a landowner protected from CERCLA liability. These continuing obligations include: (1) complying with any land use restrictions established or relied on in connection with the response action at the vessel or facility and not impeding the effectiveness or integrity of institutional controls; (2) taking reasonable steps with respect to hazardous substance releases; (3) providing full cooperation, assistance, and access to persons that are authorized to conduct response actions or natural resource restoration; (4) complying with information requests and administrative subpoenas (applies to bona fide prospective purchasers and contiguous property owners); and (5) complying with legally required notices (again, applies to bona fide prospective purchasers and contiguous property owners) [see CERCLA § 101(40)(B)-(H), 107(q)(1)(A), 101(35)(A)-(B).]. d. CERCLA requires additional obligations to maintain liability protection. These obligations are found at §§ 101( 35), 101(40), 107(b), 107(q) and 107(r). G. Use of Program Income 1. In accordance with 40 CFR 31.25(g)(2), the CAR is authorized to add program income to the funds awarded by the EPA and use the program income under the same terms and conditions of this agreement. Program income for the RLF shall be defined as the gross income received by the recipient, directly generated by the cooperative agreement award or earned during the period of the award. Program income shall include principal repayments, interest earned on outstanding loan principal, interest earned on accounts holding RLF program income not needed for immediate lending, all loan fees and loan-related charges received from borrowers and other income generated from RLF operations including proceeds from the sale, collection, or liquidations of assets acquired through defaults of loans. 2. In accordance with Section 104(d)(3)(D), when a CAR transitions to a 104(k) cooperative agreement, any program income (e.g. fees, interest or principal repayments) generated prior to transition will be added to the 104(k) agreement and must be used in a manner consistent with Section 104(k)(3) and with the terms and conditions, contained herein. 3. The CAR may use program income from fees, interest payments from loans, and other forms of eligible program income to meet its cost-share. The CAR shall not use repayments of principal of loans to meet the CAR's cost-share requirement. Repayments of principal must be returned to the CAR's Brownfields cleanup revolving fund. 4. The CAR that elects to use program income to cover all or part of a RLF's programmatic costs shall maintain adequate accounting records and source documentation to substantiate the amount and percent of program income expended for eligible RLF programmatic costs, and comply with applicable OMB cost principles when charging costs against program income. For any cost determined by the EPA to have been an ineligible use of program income, the recipient shall reimburse the RLF or the EPA. EPA will notify the recipient of the time period allowed for reimbursement. 5. Loans or subgrants made with a combination of program income and direct funding from EPA are subject to the same terms and conditions as those applicable to this agreement. Loans and subgrants made with direct funding from EPA in combination with non Federal sources of funds are also subject to the same terms and conditions of this agreement. 6. CAR must obtain EPA approval of the substantive terms of loans and subgrants made entirely with program income. H. Post Cooperative Agreement Program Income 1. After the end of the award period, the CAR shall use program income in a manner consistent with the terms and conditions of a "close out" agreement negotiated with EPA. In accordance with 40 CFR 31.42(c)(3), the CAR shall maintain appropriate records to document compliance with the requirements of the close out agreement (i.e., records relating to the use of post-award program income). EPA may request access to these records or may negotiate post- close-out reporting requirements to verify that post-award program income has been used in accordance with the terms and conditions of the close out agreement. I. Interest -Bearing Accounts 1. The CAR must deposit advances of grant funds and program income (e.g., fees, interest payments, repayment of principal) in an interest bearing account. a. Interest earned on advances, CARs and subgrant recipients are subject to the provisions of 40 CFR §31.21(i) and §30.22(1) relating to remitting interest on advances to EPA on a quarterly basis. b. Interest earned on program income is considered additional program income. IV. RLF ENVIRONMENTAL REQUIREMENTS A. Authorized RLF Cleanup Activities 1. The CAR shall prepare an analysis of brownfields cleanup alternatives which will include information about the site and contamination issues (i.e., exposure pathways, identification of contaminant sources, etc.); cleanup standards; applicable laws; alternatives considered; and the proposed cleanup. The evaluation of alternatives must include effectiveness, implementability, and the cost of the response proposed. The evaluation will include an analysis of reasonable alternatives including no action. The clean up method chosen must be based on this analysis. 2. For cleanup of petroleum sites, an analysis of cleanup alternatives must include considering a range of proven cleanup methods including identification of contaminant sources, exposure pathways, and an evaluation of corrective measures. The clean up method chosen must be based on this analysis. 3. Prior to conducting or engaging in any on-site activity with the potential to impact historic properties (such as invasive sampling or cleanup), the grantee shall consult with EPA regarding potential applicability of the National Historic Preservation Act and, if applicable, shall assist EPA in complying with any requirements of the Act and implementing regulations. B. Quality Assurance (QA) Requirements 1. If environmental samples are to be collected as part of the brownfields cleanup (e.g., cleanup verification sampling, post-cleanup confirmation sampling), the CAR shall comply with 40 CFR Part 31.45 (or 40 CFR Part 30.54 requirements for nonprofit organizations) requirements to develop and implement quality assurance practices sufficient to produce data adequate to meet project objectives and to minimize data loss. State law may impose additional QA requirements. C. Community Relations and Public Involvement in RLF Cleanup Activities 1. All RLF loan and subgrant cleanup activities require a site-specific community relations plan that includes providing reasonable notice, opportunity for involvement, response to comments, and administrative records that are available to the public. D. Administrative Record 1. The CAR shall establish an administrative record that contains the documents that form the basis for the selection of a cleanup plan. Documents in the administrative record shall include an analysis of reasonable alternatives including no action; site investigation reports; the cleanup plan; cleanup standards used; responses to public comments; and verification that shows that cleanups are complete. The CAR shall keep the administrative record available at a location convenient to the public and make it available for inspection. E. Implementation of RLF Cleanup Activities 1. The CAR shall ensure the adequacy of each RLF cleanup in protecting human health and the environment as it is implemented. Each loan and subgrant agreement shall contain terms and conditions that allow the CAR to change cleanup activities as necessary based on comments from the public or any new information acquired. 2. If the borrower or subgrant recipient is unable or unwilling to complete the RLF cleanup, the CAR shall ensure that the site is secure. The CAR shall notify the appropriate state agency and the U.S. EPA to ensure an orderly transition should additional activities become necessary. F. Completion of RLF Cleanup Activities 1. The CAR shall ensure that the successful completion of a RLF cleanup is properly documented. This must be done through a final report or letter from a qualified environmental professional, or other documentation provided by a State or Tribe that shows cleanups are complete. This documentation needs to be included as part of the administrative record. V. REVOLVING LOAN FUND REQUIREMENTS A. Prudent Lending and Subgranting Practices 1. The CAR is expected to establish economically sound structures and day-to-day management and processing procedures to maintain the RLF and meet long-term brownfield cleanup lending/subgranting objectives. These include establishing: underwriting principles that can include the establishment of interest rates, repayment terms, fee structure, and collateral requirements; and, lending/subgranting practices that can include loan/subgrant processing, documentation, approval, servicing, administrative procedures, collection, and recovery actions. 2. The CAR shall not incur costs under this cooperative agreement for loans, subgrants or other eligible costs until an RLF grant workplan has been submitted to and approved by U.S. EPA. Though the workplan must identify tasks and milestones for establishing and operating the RLF, more detailed information may be submitted in supplemental documents, e.g., an "implementation plan." The CAR shall ensure that the objectives of the workplan are met through its or the fund manager's selection and structuring of individual loans/subgrants and lending/subgranting practices. These activities shall include, but not be limited to the following: a. Considering awarding subgrants on a competitive basis. If the CAR decides not to award any subgrants competitively, it must document the basis for that decision and inform EPA. b. Establishing appropriate project selection criteria consistent with Federal and state requirements, the intent of the RLF program, and the cooperative agreement entered into with EPA. c. Establishing threshold eligibility requirements whereby only eligible borrowers or subgrant recipients receive RLF financing. d. Developing a formal protocol for potential borrowers or subgrant recipients to demonstrate eligibility, based on the procedures described in the initial RLF application proposal and cooperative agreement application. Such a protocol shall include descriptions of projects that will be funded, how loan monies will be used, and qualifications of the borrower or subgrant recipient to make legitimate use of the funds. Additionally, CARs shall ask borrowers or subgrant recipients for an explanation of how a project, if selected, would be consistent with RLF program objectives, statutory requirements and limitations, and protect human health and the environment. e. Requiring that borrowers or subgrant recipients submit information describing the borrower's or subgrant recipient's environmental compliance history. The CAR shall consider this history in an analysis of the borrower or subgrant recipient as a • cleanup and business risk. f. Establishing procedures for handling the day-to-day management and processing of loans and repayments. Establishing standardized procedures for the disbursement of funds to the borrower or subgrant recipient. B. Inclusion of Special Terms and Conditions in RLF Loan and Subgrant Documents 1. The CAR shall ensure that the borrower or subgrant recipient meets the cleanup and other program requirements of the RLF grants by including the following special terms and conditions in RLF loan agreements and subgrant awards: a. Borrowers or subgrant recipients shall use funds only for eligible activities and in compliance with the requirements of CERCLA 104(k) and applicable Federal and State laws and regulations. See Section I.A.2. b. Borrowers or subgrant recipients shall ensure that the cleanup protects human health and the environment. c. Borrowers or subgrant recipients shall document how funds are used. If a loan or subgrant includes cleanup of a petroleum-contaminated brownfields site(s), the CAR shall include a term and condition requiring that the borrower or subgrant recipient maintain separate records for costs incurred at that site(s). d. Borrowers or subgrant recipients shall maintain records for a minimum of three years following completion of the cleanup financed all or in part with RLF funds. Borrowers or subgrant recipients shall obtain written approval from the CAR prior to disposing of records. Cooperative agreement recipients shall also require that the borrower or subgrant recipient provide access to records relating to loans and subgrants supported with RLF funds to authorized representatives of the Federal government. e. Borrowers or subgrant recipients shall certify that they are not currently, nor have they been, subject to any penalties resulting from environmental non-compliance at the site subject to the loan. g. f. Borrowers or subgrant recipients shall certify that they are not potentially liable under §107 of CERCLA for the site or that, if they are, they qualify for a limitation or defense to liability under CERCLA. If asserting a limitation or defense to liability, the borrower or subgrant recipient must state the basis for that assertion. When using grant funds for petroleum-contaminated brownfields sites, borrowers or subgrant recipients shall certify that they are not a viable responsible party or potentially liable for the petroleum contamination at the site. Refer to the most recent issue of EPA's Proposal Guidelines for Brownfields Assessment, Revolving Loan Fund and Cleanup Grants for a discussion of these terms. The CAR may consult with EPA for assistance with this matter. Borrowers or subgrant recipients shall conduct cleanup activities as required by the CAR. h. Subgrant recipients shall comply with applicable EPA assistance regulations (40 CFR Part 31 for governmental entities or 40 CFR Part 30 for nonprofit organizations). All procurements conducted with subgrant funds must comply with 40 CFR Part 31.36 or 40 CFR Part 30.40-30.48, as applicable. C. Default 1. In the event of a loan default, the CAR shall make reasonable efforts to enforce the terms of the loan agreement including proceeding against the assets pledged as collateral to cover losses to the loan. If the cleanup is not complete at the time of default, the CAR is responsible for: (1) documenting the nexus between the amount paid to the borrower (bank or other financial institution) and the cleanup that took place prior to the default; and (2) securing the site (e.g., ensuring public safety) and informing the EPA Project Officer and the State. D. Conflict of Interest 1. The CAR shall establish and enforce conflict of interest provisions that prevent the award of subgrants that create real or apparent personal conflicts of interest, or the CAR's appearance of lack of impartiality. Such situations include, but are not limited to, situations in which an employee, official, consultant, contractor, or other individual associated with the CAR (affected party) approves or administers a grant or subgrant to a subgrant recipient in which the affected party has a financial or other interest. Such a conflict of interest or appearance of lack of impartiality may arise when: (i) The affected party, (ii) Any member of his immediate family, (iii) His or her partner, or (iv) An organization which employs, or is about to employ, any of the above, g. has a financial or other interest in the subgrant recipient. Affected employees will neither solicit nor accept gratuities, favors, or anything of monetary value from subgrant recipients. Recipients may set minimum rules where the financial interest is not substantial or the gift is an unsolicited item of nominal intrinsic value. To the extent permitted by State or local law or regulations, such standards of conduct will provide for penalties, sanctions, or other disciplinary actions for violations of such standards by affected parties. VI. DISBURSEMENT, PAYMENT AND CLOSEOUT For the purposes of these terms and conditions, the following definitions apply: "payment" is the U.S. EPA's transfer of funds to the CAR; the CAR incurs an "obligation" when it enters into a loan agreement with the borrower or subgrant recipient; "disbursement" is the transfer of funds from the CAR to the borrower or subgrant recipient. "Close out" refers to the process that the U.S. EPA follows to ensure that all administrative actions and work required under the cooperative agreement have been completed. A. Payment Schedule 1. The CAR may request payment from EPA pursuant to 40 CFR.§31.21(c) after it incurs an obligation or has an eligible programmatic expense. EPA will make payments to the CAR on a schedule which minimizes the time elapsing between transfer of funds from EPA and disbursement by the recipient to the borrower or subgrant recipient to pay costs incurred or to meet a "progress payment" schedule. The recipient may request payments when it receives a disbursement request from a borrower or subgrant recipient based on the borrower or subgrant recipient's incurred costs under the "actual expense" method or the schedule for disbursement under the "schedule" disbursement method. The CAR shall disburse accrued program income to meet all or part of this obligation or eligible programmatic expenses prior to requesting payment from EPA. B. Methods of Disbursement 1. The CAR may choose to disburse funds to the borrower by means of 'actual expense' or 'schedule.' If the schedule method is used, the recipient must ensure that the schedule is designed to reasonably approximate the borrower's incurred costs. a. An 'actual expense' disbursement approach requires the borrower to submit documentation of the borrower's expenditures (e.g., invoices) to the CAR prior to requesting payment from EPA. b. A 'schedule' disbursement is one in which all, or an agreed upon portion, of the obligated funds are disbursed to the borrower on the basis of an agreed upon schedule (e.g., progress payments) or, in unusual circumstances, upon execution of the loan. The CAR shall submit documentation of disbursement schedules to EPA. c. If the disbursement schedule of the loan agreement calls for disbursement of the entire amount of the loan upon execution, the CAR shall demonstrate to the U.S. EPA Project Officer that this method of disbursement is necessary for purposes of cleaning up the site covered by the loan. Further, the CAR shall include an appropriate provision in the loan agreement which ensures that the borrower uses loan funds promptly for costs incurred in connection with the cleanup and that interest accumulated on schedule disbursements is applied to the cleanup. 2. Subgrant funds must be disbursed to the subgrant recipient in accordance with 40 CFR 31.21 or 40 CFR 30.22, as applicable. a. The CAR may negotiate a predetermined schedule(s) for disbursement to subgrant recipients provided the schedule minimizes the time elapsing between disbursement by the CAR and the subgrant recipient's payment of costs incurred in carrying out the subgrant. b. If the disbursement schedule of the subgrant calls for disbursement of the entire amount of the subgrant upon execution, the CAR shall demonstrate to the U.S. EPA Project Officer that this method of disbursement is necessary for purposes of cleaning up the site covered by the subgrant. Further, the CAR shall include an appropriate provision in the subgrant agreement which ensures that the subgrant recipient uses funds promptly for costs incurred in connection with the cleanup and that interest accumulated on schedule disbursements is applied to the cleanup. C. Schedule for Closeout 1. There are two fundamental criteria for closeout: (a) Final payment of funds from EPA to the CAR following expiration of the terms of the agreement or expenditure of the funds awarded; and (b) Completion of all cleanup activities funded by the amount of the award. To close out the cooperative agreement all payments to the CAR must be complete. The first criterion of cooperative agreement closeout is met when the CAR receives all payments from EPA. The second closeout criterion is met when all cleanups funded by the initial amount of the award are complete. D. Compliance with Closeout Schedule 1. If a CAR fails to comply with the closeout schedule, any cooperative agreement funds not obligated under loan agreement to a borrower or subgrant recipient may be subject to federal recovery, and the cooperative agreement award amended to reflect the reduced amount of the cooperative agreement. E. Recovery of RLF Assets 1. In case of termination for cause or convenience, the CAR shall return to EPA its fair share of the value of the RLF assets consisting of cash, receivables, personal and real property, and notes or other financial instruments developed through use of the funds. EPA's fair share is the amount computed by applying the percentage of EPA participation in the total capitalization of the RLF to the current fair market value of the assets thereof. EPA also has remedies under 40 CFR 31.43 and CERCLA 104(k) when the Agency determines that the value of such assets has been reduced by improper/illegal use of cooperative agreement funding. In such instances, the CAR may be required to compensate EPA over and above . the Agency's share of the current fair market value of the assets. Nothing in this agreement limits EPA's authorities under CERCLA to recover response costs from a potentially responsible party. F. Loan Guarantees 1. If the CAR chooses to use the RLF funds to support a loan guarantee approach, the following terms & conditions apply: a. The CAR shall: (1) document the relationship between the expenditure of CERCLA §104(k) funds and cleanup activities; (2) maintain an escrow account expressly for the purpose of guaranteeing loans, by following the payment requirement described under the Escrow Requirements term and condition below; and ensure that cleanup activities guaranteed by RLF funds are carried out in accordance with CERCLA 104(k) and applicable Federal and State laws and will protect human health and the environment. 2. a. Payment of funds to a CAR shall not be made until a guaranteed loan has been issued by a participating financial institution. Loans guaranteed with RLF funds shall be made available as needed for specified cleanup activities on an "actual expense" or "schedule" basis to the borrower or sub grant recipient (See Section on Methods of Disbursement). The CAR's escrow arrangement shall be structured to ensure that the CERCLA §104(k) funds are properly "disbursed" by the recipient for the purposes of the assistance agreement as required by 40 CFR §31.20(b)(7) and §31.21(c). If the funds are not properly disbursed, the CERCLA §104(k) funds that the recipient places in an escrow account will be subject to the interest recovery provisions of 40 CFR §31.21(i). b. To ensure that funds transferred to the CAR are disbursements of assisted funds, the escrow account shall be structured to ensure that: (1) the recipient cannot retain the funds; (3) (2) the recipient must not have access to the escrow funds on demand; the funds remain in escrow unless there is a default of a guaranteed loan; (4) the organization holding the escrow (i.e., the escrow agency), shall be a bank or similar financial institution that is independent of the recipient; and there must be an agreement with financial institutions participating in the guaranteed loan program which documents that the financial institution has made a guaranteed loan to clean up a brownfields site in exchange for access to funds held in escrow in the event of a default by the borrower or sub grant recipient. 3. Federal Obligation to the Loan Guarantee Program a. Any obligations that the CAR incurs for loan guarantees in excess of the amount awarded under the cooperative agreement are the CAR's responsibility. This limitation on the extent of the Federal Government's financial commitment to the CAR 's loan guarantee program shall be communicated to all participating banks and borrower or sub grant recipient. 4. Repayment of Guaranteed Loans a. Upon repayment of a guaranteed loan and release of the escrow amount by the participating financial institution, the CAR shall return the cooperative agreement funds placed in escrow the U.S. EPA. Alternatively, the CAR may, with EPA approval, b. Guarantee additional loans under the terms and conditions of the agreement or, c. amend the terms and conditions of the agreement to provide for another disposition of funds that will redirect the funds for other brownfields related activities. VII. ENVIRONMENTAL RESULTS - RECIPIENT PERFORMANCE REPORTING Performance Reports: In accordance with 40 C.F.R. §31.40, the recipient agrees to submit performance reports that include brief information on each of the following areas: 1) a comparison of actual accomplishments to the outputs/outcomes established in the assistance agreement workplan for the period; 2) the reasons for slippage if established outputs/outcomes were not met; and 3) additional pertinent information, including,when appropriate, analysis and information of cost overruns or high unit costs. (3) (5) U.S. EPA BROWNFIELD CLEANUP REVOLVING LOAN FUND WORK PLAN APPLICATION FOR FEDERAL ASSISTANCE County of Oakland 1200 North Telegraph Road Pontiac, Michigan 48341 February 13, 2006 1.0 INTRODUCTION Oakland County is located in southeastern Michigan and is geographically located directly northwest of the City of Detroit. Oakland County is part of the Detroit Standard Metropolitan Statistical Area (SMSA). Oakland County is a large area. The county is approximately 30 miles square, with a total area of 907.9 square miles. When formally organized in 1820 it was divided into 25 townships, each six miles square. Portions of these townships have been absorbed in varying degrees into incorporated villages and cities, and currently Oakland County comprises 61 minor civil divisions. Oakland County has successfully developed the institutional and legal structure to encourage brownfield redevelopment. Oakland County utilizes the State of Michigan's brownfield redevelopment incentives provided by Michigan Public Act 381 of 1996, as amended. Public Act 381 is known as the Brownfield Redevelopment Financing Act. In 2002, Oakland County established its Brownfield Redevelopment Authority (BRA). BRA's are tools that local governments can utilize to mange brownfield sites. Through BRA's brownfield cleanup costs are reimbursed to the developer by utilizing Tax Increment Financing (TIF), a process of using the new taxes generated from the redevelopment to fund the project costs. This Act also authorizes the issuance of bonds and other evidence of indebtedness by an authority to assist in environmental cleanup on individual sites. The Act provides all the necessary powers to aggressively facilitate brownfield site cleanup. Oakland County has drafted this amended work plan for it's Supplemental grant of $550,000 in which $394,350 came from USEPA Supplemental funding and $155,650 came from a transition of funds from our original BCRLF grant. On March 21, 2004 Oakland County submitted an application to the USEPA for $500,000 in supplemental BCRLF money, and in April of 2004 we received confirmation that we secured $394,350 in supplemental funding. This new Work Plan will be in use for the entirety of the grant cycle, which runs from September 2004 through October 2009. This amended work plan will also reflect the changes to the Brownfield program as described in the Small Business Liability Relief and Brownfields Revitalization Act, Section 104(k) of CERCLA, 42 U.S.C. 9604(k), and subject to the terms and conditions of the Cooperative Agreement. 2.0 BCRLF ACTIVITIES 2.1 TASK 1— PROGRAM OUTREACH AND MARKETING To prepare the BCRLF program, Oakland County will complete the following: • Presentations, Workshops, Seminars • Prepare a Public Awareness Program (Outreach and Marketing) Oakland County, Michigan Page I • Prepare and Hold Information Meetings with Developers, Municipalities, and Others 2.1.1 BCRLF Staff and Roles As the proposed Cooperative Agreement Recipient, Oakland County will serve as the Lead Agency for this project. Specific Lead Agency responsibilities and functions will be performed by a Team, which will include members of the Community and Economic Development Department staff, a Site Manager, outside consultants, and resources within our Department of Corporation Counsel. The administering entity within Oakland County for the revolving loan fund will be the Waste Resource Management Division. Oakland County has selected Bradley Hansen to act as Brownfield Site Manager. The Brownfield Site Manager will work with the support of Corporation Counsel and environmental consultants to ensure adequate oversight of field activities is conducted. Oakland County will also serve as the Fund Manager for this project. Specific Fund Management responsibilities and functions will be performed by a Team which will include members of the Community and Economic Development Department staff, a Site Manager, outside consultants, and resources within our Departments of Corporation Counsel and Management and Budget, and the Treasurer. Future details of the roles and responsibilities for Specific Fund Management will be provided to U.S. EPA within 6 months of the signed cooperative agreement. 2.1.2 Public Awareness Program Oakland County will have an ongoing Public Awareness Program to solicit nominations for the BCRLF program. Deliverables to U.S. EPA may include pamphlets, notices, or meeting minutes. 2.1.3 Prepair New Sample Loan Application Oakland County will prepare a new sample loan application to reflect new BCRLF laws listed in the Small Business Liability Relief and Brownfields Revitalization Act, Section 104(k) of CERCLA, 42 U.S.C. 9604(k), and subject to the terms and conditions of the Cooperative Agreement. This loan application will consist of two parts: the Project Summary and the Loan Application. The Project Summary will consist of information necessary to complete Task 2 — Initial Project Review. The Loan Application will request information necessary to complete Task 3 — Formal Project Review. This application will be completed within six months of the signed cooperative agreement. Drafts will be submitted to U.S. EPA for review. 2.1.4 Task 1 — Budget Oakland County estimates approximately $20,500.00 to complete Task 1 from the Site Specific and Programmatic Activities fund. 2.2 TASK 2— INITIAL PROJECT REVIEW To conduct Task 2 — Initial Project Review, Oakland County will conduct the following: • Request of Project Summary • Assess the Cleanup Eligibility of the proposed project consultant • Assess the Fiscal viability of the proposed project • Hold a meeting between the Lead Agency, the Local Municipality, and the Loan Recipient to review the Project Summary. 2.2.1 Project Summary Oakland County. M ichigan ['acre 2 Oakland County will require the loan applicant to submit the Project Summary. The Project Summary will provide Oakland County the following information: • Preliminary Site Development Plan Summary including renderings and pro forma statements, if available • Synopsis of Environmental Investigations Activity and Preliminary Cleanup Plan • Site Map, Legal Description and Evidence of Site Ownership/Rights to Acquire Property The review team for the Project Summary will consist of the Division and/or Project Manager in consultation, as needed, with the following: U.S. EPA, Lead Agency Staff, Brownfield Site Manager, Fund Manager, and Legal Counsel. This review will evaluate the proposed project's Cleanup Eligibility and fiscal viability. The results of this evaluation will be discussed with the local municipality and the loan applicant. 2.2.2 Cleanup Eligibility The loan application review team consultant, in consultation with EPA, will conduct a preliminary evaluation to ensure that the proposed cleanup plan will comply with the Small Business Liability Relief and Brownfields Revitalization Act, Section 104(k) of CERCLA, 42 U.S.C. 9604(k), and subject to the terms and conditions of the Cooperative Agreement. 2.2.3 Municipal Meeting The cleanup plan and fiscal evaluation will be discussed at a Municipal Meeting with the Division and/or Project Manager in consultation, as needed, with the following: U.S. EPA, Lead Agency Staff, Brownfield Site Manager, Fund Manager, and Legal Counsel, a representative from the local municipality and the loan applicant. 2.2.4 Preliminary Decision After preliminary review of the Project Summary for eligibility and viability, Oakland County will either preliminarily approve or deny the Project. If the Project is preliminarily approved, Oakland County will invite the loan applicant to complete a loan application. 2.23 Task 2 — Budget Oakland County estimates approximately $5,000.00 to complete Task 2 from the Site Specific and Programmatic Fund. 2.3 TASK 3— FORMAL PROJECT REVIEW To conduct Task 3 — Formal Project Review, Oakland County will conduct the following: • Request complete application • Formal review of proposed cleanup activities • Formal fiscal review of the proposed project • Municipal review of proposed brownfield redevelopment project • Consider Project Approval 2.3.1 Application Oakland County. .M ichigan Page 3 To complete the Formal Project Review, Oakland County will require the loan applicant to complete a loan application. The loan application will include the following information: • Historical Financial Statements (last three Fiscal years) • Current Financial Statement (within 90 days) • Schedule of Debt Obligations • Construction Plans, Specifications, and Budget • Aging Reports (three most recent consecutive periods) • Inventory Breakdowns (if applicable) • Financial Statement Projections (for two years after project completion) • Credit Ratings Information • Resume of Owners and Key Managers • Phase I & Phase II Site Assessments (complying with ASTM standards) • Baseline Environmental Assessment • Brownfield Plan • EE/CA or equivalent 2.3.2 Formal Review of Cleanup Plan Loan applicants eligible for BCRLF loan funds must prepare a report equivalent to an Engineering Evaluation/Cost Analysis (EE/CA) report. Oakland County will review the proposed cleanup plan to verify compliance with the Small Business Liability Relief and Brownfields Revitalization Act, Section 104(k) of CERCLA, 42 U.S.C. 9604(k), and subject to the terms and conditions of the Cooperative Agreement in consultation with the U.S. EPA. 2.3.3 Fiscal Eligibility The loan application review team will carefully review the financial feasibility of the project. The loan application review team will evaluate the method and source for generating sufficient revenues to repay the loan in consultation with U.S. EPA. 2.3.4 Project Approval After formal review of the Fiscal Plan and the Cleanup Plan, Oakland County will either approve or deny the loan application. If the loan application is approved, Oakland County will issue an Action Memorandum to EPA and all affected parties. 2.3.5 Task 3 — Budget Oakland County estimates approximately $2,000.00 to complete Task 3 from the Site Specific and Programmatic Activities Fund. 2.4 TASK 4— LOAN DOCUMENT To conduct Task 4 — Loan Document, Oakland County will conduct the following: • Negotiate terms of loan • Prepare Loan Agreement • Sign Loan Agreement Oakland County. Michigan Page 4 Ai • 2.4.1 Negotiate Loan Terms Terms of the loan will be negotiated by the review team, lead by the Division and/or Project Manager and Corporation Counsel, in consultation, as needed, with the following: U.S. EPA, Lead Agency Staff, Brownfield Site Manager, and Fund Manager, using the established protocols of Oakland County. 2.4.2 Prepare Loan Agreement Preparation of the loan agreement will be coordinated through Oakland County's Department of Corporation Counsel and the Fund Manager, using the established protocols of Oakland County. 2.4.3 Signing Loan Agreement Upon EPA review and upon agreement of all the parties a process for approval and signature of the Loan Documents will be implemented pursuant to statute and policy. Sample schedules for both TIF and Non-TIF secured projects are provided below: Sample Schedule for Finalization of Loan Documents When Supported by Non-TIF September 9- October 8- October 15- October 17- October 24- Action memo from Lead Agency Submit information packet regarding project to committee. Planning & Building Committee Recommendation Finance Committee Recommendation Board of Commissioners Approval Sample Schedule for Finalization of Loan Document When Supported by TIF September 9- Receive brownfield plans regarding project. September 11- Send out information packet regarding project to BRA board members. September 13- Submit Public Notice to County Clerk, regarding the BRA meeting. September 18- BRA meeting to consider/approve Brownfield Plan funding. ****** Local municipal board meeting. Approve Brownfield plan concurrent resolution. This meeting must take place between the dates of September 19 and September 30. No later than September 30 September 23- Mail information to the Planning & Building Committee members October 1- Planning & Building Committee recommends funding Wixom project. October 1- Submit Public Notice to publishers, regarding the Board of Commissioners meeting. Public Notice will include the following: - Time and Place of the hearing. - Description of the property in relation to existing or proposed highways, streets, streams or otherwise. - A statement that maps, plats, and a description of the brownfield plan are available for public inspection at a place designated in the notice. Oakland County. Michigan Page 5 October 3- October 3- October 4- October 4- October 24- 2.4.4 Task 4 - Budget - A statement that all aspects of the brownfield plan are open for discussion at the public hearing. - Any other information the governing body considers appropriates. Finance committee referral of Brownfield Plan. Publish first notice of public hearing (required not less than 20 not more than 40 days before public hearing date.) Publish second notice of public hearing. Provide notice of hearing to the taxing jurisdictions (required not less than 20 days before the hearing.) Notice of hearing shall contain the following: - Inform taxing jurisdictions about the fiscal and economic implications of the proposed brownfield plan. Conduct public hearing regarding property redevelopment funding by the Board of Commissioners, The Board of Commissioners will also vote to approve the Brownfield plan for the project Oakland County estimates approximately $12,000.00 to complete Task 4 from the Site Specific and Programmatic Activities Fund. 2.5 TASK 5— LOAN ADMINISTRATION AND SERVICING To conduct Task 5 — Loan Administration and Servicing, Oakland County will conduct the following: • Tracking loan payments and interest • Reviewing and Disbursing loan payments 2.5.1 Tracking Loan Payments and Interest Oakland County's Fiscal Services Division will complete the bookkeeping functions within what is anticipated to be a "subsidy" fund financial scenario model. Oakland County's Fiscal Services Division administers a multi layer financial system, capable of providing information at fund, organization, grant, project, and program levels. This proves extremely beneficial when accounting for projects or grants over multiple fiscal years. The County also uses a PC based software product to track subsidiary accounts receivable. 2.5.2 Reviewing and Dispersing Loan Payments Custodial control of the funds will be the responsibility of the Oakland County Treasurer's Office. The Treasurer is responsible for collecting all real and personal property taxes, and is responsible to track all monies taken in by the County, as well as all monies expended by the County, and to invest all unemployed funds. Authorization of specific loan expenditures downs and the review and approval of supporting documentation will be the responsibility of the Lead Agency Staff and Brownfield Site Manager under the direction of the Division Manager, and subject to the review protocols established by the County, and the Brownfield Redevelopment Board, when applicable. 2.5.3 Other Responsibilities The Fund Manager will be responsible for ensuring that the BCRLF is managed in conformance with the Cooperative Agreement, applicable laws and regulations, and prudent lending practices. The Fund Manager will be responsible for structuring the loan repayment and interest calculations. Oakland County. Michigan Pdg,.; 6 2.5.4 Budget for Task 5 Oakland County estimates approximately $5,000.00 to complete Task 5 from the Site Specific and Programmatic Activities Fund. 2.6 TASK 6— CLEANUP OVERSIGHT To conduct Task 6 — Cleanup Oversight, Oakland County will conduct the following: • Monitor Daily Cleanup Operations • Coordinate Cleanup Activities with MDEQ • Prepare a Final Closure Report (if necessary with an Operations and Maintenance Plan) 2.6.1 Daily Cleanup Operations The Brownfield Site Manager, with the support of Corporation Counsel and the environmental consultant, will ensure that adequate oversight of field activities is conducted. A schedule of field activities with major scope milestones will be identified. This will allow the Brownfield Site Manager to schedule field visits during key activities. Field visits will take place as needed. During field visits, the Site Manager will evaluate daily logs and note the progress and compliance of the project. Reports at the completion of each identified milestone will be required. Project status and financial reports will be submitted to the Site Manager. 2.6.2 Coordination with MDEQ Oakland County will coordinate cleanup activities with the Michigan Department of Environmental Quality (MDEQ). All cleanup activities will be comply with Michigan's Cleanup Program, Michigan's Public Act (PA) 451 Natural Resources Environmental Protection Act (NREPA) Part 201. Oakland County anticipates that the loan applicant will demonstrate an EE/CA equivalent with either: (1) a Remedial Action Plan (RAP) or (2) a Baseline Environmental Assessment (BEA) and a Due Care Plan. Oakland County will provide details to U.S. EPA on the site-specific requirements. 2.6.3 Final Closure Report After completing cleanup activities, Oakland County will require the loan recipient to complete a Closure Report. This Closure Report will be submitted to MDEQ for review and approval. 2.6.4 Budget for Task 6 Oakland County estimates approximately $494,500.00 to complete Task 6, with $440,000 for Loan Capitalization. The remaining $54,500 of the budget will be used to conduct all remaining oversight tasks for the project. The $54,500 will be coming from the portion directed at Site Specific and Programmatic Activities. 2.7 TASK 7— PROGRAMMATIC ACTIVITIES Pilot administration will be the responsibility of the Lead Agency Staff and Brownfield Site Manager. To conduct Task 7 — Programmatic Activities, Oakland County will conduct the following: • Prepare Quarterly Reports • Prepare Annual Financial Reports • Track Measures of Success Oakland County. Michigan 2.7.1 Quarterly Reports Oakland County will prepare quarterly reports for U.S. EPA. Oakland County may retain a contractor to prepare these quarterly reports. Details on preparing quarterly reports will be submitted to U.S. EPA within two months of signing the cooperative agreement. 2.7.2 Annual Financial Reports Oakland County will complete annual financial reports for the BCRLF program. The County has always received unqualified audit opinions and in fact has received the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting for its Comprehensive Annual Financial Reports for the last eight consecutive years. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. 2.7.3 Measures of Success Through this pilot, Oakland County will demonstrate successful partnering with local units of government and the private sector to identify existing and potential environmental concerns and to further aid them by finding methods to alleviate existing problems within the community. The County will utilize the Brownfield Authority Board to track the management of the program and the milestones achieved including the number of sites, loans and grants awarded, and successful tax increment financing (TIF) capture and repayment of the loans, as well as repayment of loans from other viable sources of revenue. Additional measures of success include all those listed in USEPA Form 9310 as described in the terms and conditions of the Cooperative Agreement. Locally, the following measures will be used as another approach to assessing the success of the BCRLF program in the County. These measures are intended to be concrete goals that when attained, will indicate that the program has been successful: • Funding is distributed to projects quickly and expediently (project applications received and funds distributed within eighteen (18) months of initiation) • Sites are cleaned up, redeveloped, and tax base restored • Site cleanup is integrated with other incentive programs • Development is established that meets the recognized needs of the community • New loans are distributed from the interest gained Documentation of progress will immediately commence with quarterly progress reports on the status of cleanup within the area funded by the BCRLF. Documentation shall then proceed to highlight infrastructures, progress, and the number of projected new developments on a quarterly basis. 2.7.4 Bud2et for Task 7 Oakland County estimates approximately $11,000.00 to complete Task 7 from the Site Specific and Programmatic Activities Fund. Oakland County. Michigan n • 11.- • 3.0 BUDGET The financing plan for the BCRLF involved initial funding of $500,000. The funds are designated as follows: $400,000 for Loan Capitalization directed at site clean up, $100,000 for Site Specific activities, and Programmatic activities. Task specific budgets are provided below as well as in the task descriptions above. BUDGET: Project Tasks Category Task 1 Task 2 Task 3 Task 4 Task 5 Task 6 Task 7 TOTAL Program Initial Formal Loan Loan Cleanup Program. Outreach & Project Project Document Adminis- Oversight Activities Marketing Review tration and Servicing Loan 440,000. 440,000 Capitalization . Programmatic 10,000. 5,000. 2,000. 2,000. 5,000. 16,000. 10,000. 50,000. Activities Travel 3,000. 2,000. 5,000. , Equipment 500. 1,500. 2,000. Supplies 2,000. 1,000. 3,000. Contractual 5,000. 10,000. 35,000. _ 50,000. TOTAL 20,500. 5,000. 2,000. 12,000. 5,000. 494,500. 11,000. $550,000. Loan capitalization assistance will be utilized for remedial activities, as defined in the Small Business Liability Relief and Brownfields Revitalization Act, Section 104(k) of CERCLA, 42 U.S.C. 9604(k), and subject to the terms and conditions of the Cooperative Agreement, and will meet the NCP requirements for non-time critical removal actions. The development of an engineering evaluation and cost analysis (EE/CA) or equivalent will be prepared for each site at which the loan will be utilized. Site specific and loan administrative assistance may include, but not be limited to, loans or grants that will assist developers to write Brownfield Plans and Brownfield Work Plans that will be submitted to the MDEQ. In addition, financial assistance will also include funding activities necessary to complete site specific lead agency responsibilities necessary to satisfy CERCLA and NCP Requirements, such as Engineering Evaluation Cost Analysis, Public Participation and the development of a Community Relations Plan and establishing an Administrative Record of each site. The County will leverage additional private clean-up funds whenever possible. In addition to leveraging funds from private lenders, the county is working aggressively to secure funds for brownfield redevelopment from the following sources. • US Department of Housing and Urban Development, Section 108 Loan • US Department of Housing and Urban Development. Brownfields Economic Development Initiative Grant • County Brownfield Redevelopment Authority Tax Increment Financing Plans • Michigan Department of Environmental Quality Brownfield Redevelopment Grants • Michigan Department of Environmental Quality Revitalization Loans akland County. 114 iebigan Page FISCAL NOTE #06058 March 23, 2006 BY: FINANCE COMMITTEE, CHUCK MOSS, CHAIRPERSON IN RE: DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS/WASTE RESOURCE MANAGEMENT - UNITED STATES ENVIRONMENTAL PROTECTION AGENCY - BROWNFIELDS CLEANUP REVOLVING LOAN FUND (BCRLF) SUPPLEMENTAL GRANT AMENDMENT TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above referenced resolution and finds: 1. Miscellaneous Resolution #04321 authorized acceptance of a Brownfield Cleanup Revolving Loan Fund (BCRLF) grant from the U.S. Environmental Protection Agency (USEPA) in the amount of $394,350. 2. The USEPA has also authorized the transition of $155,650 to this grant from BCRLF grant funding awarded to Oakland County by M.R. #02285, for a supplemental grant total of $550,000 (#GR0000000260). 3. The resolution accepts the BCRLF grant amendment from the USEPA in the amount of $155,650. 4. Grant funding will be used to reimburse the County for all grant programmatic support as well as direct administration for oversight of cleanups and loan capitalization. 5. In-Kind Match of 20%, or $78,870, is required for the BCRLF grant, accepted by M.R. #04321, and will be funded from Brownfields tax capture and private developer match. No additional County match is required. 6. Grant funding will cover 100% of the program cost and no General Fund/General Purpose appropriation is required. 7. The project period is from February 2, 2006 through September 30, 2008. 8. The FY 2006 Special Revenue Budget is amended as follows: Brownfield Cleanup Revolving Loan Fund #29410 Revenue 29410-1090105-174220-610313 Grants Federal $550,000 Expenditure 29410-1090105-174220-702010 29410-1090105-174220-722740 29410-1090105-174220-731458 29410-1090105-174220-732018 29410-1090105-174220-750399 29410-1090105-174220-731598 FINANCE COMMITTEE '4/7 it( 'ILLI Salaries Regular $ 33,225 Fringe Benefits 16,775 Prof.Services 50,000 Travel & Conf. 7,000 Office Supplies 3,000 Re-grant Program 440,000 $550,000 $ -0- FINANCE COMMITTEE Motion carried unanimously on a roll call vote. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 23rd day of March, 2006. ) 3/2 /t2-4. Resolution #06058 March 23, 2006 Moved by Scott supported by Gregory the resolutions (with fiscal notes attached) on the Consent Agenda be adopted (with accompanying reports being accepted). AYES: Coleman, Coulter, Crawford, Douglas, Gregory, Hatchett, Jamian, KowaII, Long, Melton, Middleton, Molnar, Moss, Nash, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Wilson, Woodward, Zack, Bullard. (24) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent Agenda (with accompanying reports being accepted) were adopted. ,•••• I HEREBY APPROVE THE FOREGOING RESS.UTION STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Ruth Johnson, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on March 23, 2006, with the original record thereof now remaining in my office. Ruth Johnson, County Clerk