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HomeMy WebLinkAboutReports - 2023.08.17 - 40473 AGENDA ITEM: American Rescue Plan Act Grant Agreement for the Northwest Oakland Sanitary Drain DEPARTMENT: Water Resources Commissioner MEETING: Board of Commissioners DATE: Thursday, August 17, 2023 7:39 PM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2023-3177 Motion to authorize the American Rescue Plan Act Grant Agreement for the Northwest Oakland Sanitary Drain; further on approval of the Board the Chair is authorized to execute the agreement and a budget amendment is not required. ITEM CATEGORY SPONSORED BY Contract Yolanda Smith Charles INTRODUCTION AND BACKGROUND A requirement of the American Rescue Plan Act of 2021 (ARPA) is the execution of a subrecipient agreement by the Drainage District and execution of the Grant Agreement by the Board of Commissioners as Grantor for the Northwest Oakland Sanitary Drain. The Oakland County Board of Commissioners, on May 25, 2023, adopted Miscellaneous Resolution #2023-2914 authorizing the appropriation of $250,000 from the General Fund to facilitate matching funds from the Congressionally Funded Community Projects award and $9,750,000 in American Rescue Plan Act of 2021 (ARPA) funds for the Northwest Oakland Sanitary Sewer Project. The Northwest Sanitary Drain Drainage District was created and comprised of the following municipalities: the Village of Ortonville and the Townships of Groveland, Holly and Brandon pursuant to a Final Order of Determination as required by the Michigan Drain Code. The District and the County of Genesee have negotiated an agreement for the construction of Phase One of the Project that limits the cost to the District to the amount of $10 million previously authorized by Miscellaneous Resolution 2022-212. The District, and not Oakland County, will pay any other costs associated with Phase One, and the cost of Phase Two and Phase Three, which will be apportioned by the District to the municipalities as may be petitioned under the Drain Code. A requirement of the ARPA is the execution of a subrecipient agreement, i.e., the Grant Agreement, acknowledging the receipt of the funds, acceptance of terms, defining the use of the funds, and providing a method to facilitate tracking of the award. On July 18, 2023, the subrecipient ARPA Grant Agreement has been adopted by the District as required by the Act. The Oakland County Corporation Counsel has reviewed the ARPA Grant Agreement. The ARPA Grant Agreement also requires its adoption by the Oakland County Board of Commissioners. POLICY ANALYSIS This is a request to authorize the American Rescue Plan Act (APRA) Grant Agreement that satisfies the legislative (ARPA of 2021) requirement of a subrecipient agreement acknowledging the receipt of the funds, acceptance of the terms, defining the use of the funds, and provides a method to facilitate the tracking of the funds. The Agreement is between Oakland County and the Northwest Oakland Sanitary Drain Drainage District (Grantee). On May 25, 2023, the BOC adopted Miscellaneous Resolution #2023-2914 authorizing the appropriation of $250,000 from the General Fund to facilitate matching funds from the Congressionally Funded Community Projects award and $9,750,000 in American Rescue Plan Act of 2021 (ARPA) funds for the Northwest Oakland Sanitary Sewer Project. The District and the County of Genesee have negotiated and executed (July 18, 2023) an agreement (as required per MR #2023-2914) for the construction of Phase One of the Project that limits the cost to the District to the amount of $10 million previously authorized by Miscellaneous Resolution 2022-212. The District, not Oakland County, will pay any other costs associated with Phase One, and the cost of Phase Two and Phase Three, which will be apportioned by the District to the municipalities as may be petitioned under the Drain Code. (Northwest Sanitary Drain Drainage District was created and comprised of the following municipalities: the Village of Ortonville and the Townships of Groveland, Holly and Brandon pursuant to a Final Order of Determination as required by the Michigan Drain Code). The Grantee is required to make repayment if they fail to comply with the requirements of the Agreement (Section 3: Repayment/Remedies). The Grantee are responsible for any taxes, including withholding payments, social security, or other funds which are required to be withheld (Section 6: Tax Liability). All records are to be maintained by Grantee pertinent to the Agreement and any amendments, including backup copies of five (5) years (Section 8: Access to Records and Audit). A final report from the Grantee is due to the County on the completion of the project and agrees to submit a detailed and timely grant report covering expenses related to each outlined purpose (Section 8: Access to Records and Audit). The Grantee will comply with all federal, state, and local laws, statutes, ordinances, regulations, and all requirements applicable to its activities under this Grant (Section 9: Compliance with Laws) Agreement. Corporation Counsel has reviewed and approved the Agreement. The funds are to be spent before the end of 2026 as required in the ARPA Legislation. On approval of the BOC, the Chair is authorized to sign the Agreement. A budget amendment is not required. *Agreement between the District and Genesee County is an attachment in Civic Clerk. BUDGET AMENDMENT REQUIRED: No Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at 248.425.5572 or andrewsmb@oakgov.com, or the department contact persons listed for additional information. CONTACT Brian Coburn ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 8/17/2023 AGENDA DEADLINE: 08/27/2023 7:39 PM ATTACHMENTS 1. 2023-08-09 Memo to Accompany Agreement 2. Attachment A - Genesee County KCI Purchase Agreement 3. ARPA Grant Agreement_NW Oakland Sewer signed by Nash COMMITTEE TRACKING 2023-08-09 Economic Development & Infrastructure - Recommend to Board 2023-08-17 Full Board - Authorize Motioned by: Commissioner Robert Hoffman Seconded by: Commissioner Brendan Johnson Yes: David Woodward, Michael Spisz, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman (16) No: None (0) Abstain: None (0) Absent: Gary McGillivray, Michael Gingell (2) Passed Form DC–001 OAKLAND COUNTY WATER RESOURCES COMMISSIONER Page 1 of 1 Rev.: 02/12/2018 OAKLAND COUNTY WATER RESOURCES COMMISSIONER MEMORANDUM TO: Yolanda Smith Charles, Chairperson of the Economic Development and Infrastructure Committee FROM: Jim Nash, Water Resources Commissioner SUBJECT: Subrecipient Agreement Approval for ARPA Funds DATE: August 9, 2023 On May 25, 2023, the Oakland County Board of Commissioners, by Miscellaneous Resolution #2023- 2914, approved an appropriation of $9,750,000 in American Rescue Plan Act (ARPA) Fiscal Recovery Funds for the Northwest Oakland Sanitary Drain project. An important requirement of the legislation is the execution of a subrecipient agreement by the Drainage District acknowledging the receipt of the funds, acceptance of terms, defining the use of the funds, and providing a method to facilitate tracking of the award. The attached agreement was approved by the Drainage District on July 18, 2023. An equally important requirement is that the Oakland County Board of Commissioners, as Grantor, adopt the agreement as well. Requested Committee Action: Recommend adoption of the accompanying resolution and execute, as Grantor, the attached ARPA Grant Agreement. ATTACHMENT A Page 1 of 5 OAKLAND COUNTY EXECUTIVE, DAVID COULTER OAKLAND COUNTY AMERICAN RESCUE PLAN ACT (ARPA) GRANT AGREEMENT THIS GRANT AGREEMENT (this “Agreement”), effective as of the date it has been signed by both Parties as indicated on the first page of this Agreement (“Effective Date”), is between Oakland County (the “Grantor”), whose address is 2100 Pontiac Lake Road, Bldg. 41W, Waterford, Michigan 48328, and the Grantee Name identified below (the “Grantee”). As used in this Agreement, the Grantor and the Grantee are, individually, a “Party” and, collectively, the “Parties”. Grantee Name: Northwest Oakland Sanitary Drain Drainage District (“Drainage District”) Grantee Address: Water Resources Commissioner One Public Works Drive Waterford, MI 48328 Grant Amount: $9,750,000 The undersigned agree to the Agreement terms specified in Sections 1 through 14 herein and affirm that they have the authority to sign on behalf of their respective Parties. GRANTOR: COUNTY OF OAKLAND By: _________________________________ David T. Woodward Chairman, Board of Commissioners GRANTEE: NORTHWEST OAKLAND SANITARY DRAIN DRAINAGE DISTRICT By: _________________________________ Oakland County Internal Processing Information: Fund: Dept: Payment approved by: Program: Account: Budget reference: By: __________________________ PCBU: Project ID: Activity ID: (A fully executed PDF copy of this Agreement will be emailed to you via EchoSign for your records.) Page 2 of 6 OAKLAND COUNTY EXECUTIVE, DAVID COULTER RECITALS A. On March 11, 2021, the President of the United States signed the American Rescue Plan Act of 2021 (“ARPA”) into law. Section 9901 of ARPA amended Title VI of the Social Security Act to add section 603, which establishes the Coronavirus Local Fiscal Recovery Fund. Oakland County has been allocated $244,270,949 in Local Fiscal Recovery Fund (“LFRF”) dollars under ARPA. B. The United States Department of Treasury has issued a final rule, and other guidance for qualified uses of LFRF. Those qualified uses include responding to the COVID-19 public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality. C. On May 25, 2023, the Oakland County Board of Commissioners appropriated up to $9,750,000 in LFRF funds for the Northwest Oakland Sanitary Drain project. Oakland County has determined that this grant project is a qualified use of LFRF funds pursuant to the final rule and other applicable Department of Treasury guidance. The Parties agree: 1. Grant. Subject to the terms and conditions of this Agreement, and in reliance upon the Grantee affirmations set forth below, the Grantor agrees to make, and the Grantee agrees to accept, the grant funds. a. Grantor will distribute $9,750,000 in grant funds to Grantee. b. GRANTEE UNIQUE ENTITY IDENTIFIER: not required c. FEDERAL AWARD IDENTIFICATION NUMBER (FAIN): SLFRP2640 d. CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBER: 21.027 e. FEDERAL AWARD DATE: May 28, 2021 f. SUBAWARD PERIOD OF PERFORMANCE START AND END DATE: May 25, 2023 through December 31, 2026. g. AWARD IS NOT FOR RESEARCH & DEVELOPMENT (R&D): Funds cannot be used for research and development related expenditures. h. INDIRECT COST RATE FOR FEDERAL AWARD: Indirect Costs are not eligible for this Agreement. i. CONTACT PERSON FOR GRANTOR/PASS THROUGH ENTITY: Jim Nash, Water Resources Commissioner. j. DEFINED USE OF FUNDS: All grant funds must be expended in accordance with the guidelines for ARPA funds. Grantee has outlined the following intended uses of grant funds: Page 3 of 6 OAKLAND COUNTY EXECUTIVE, DAVID COULTER i. The funds will be used to participate in a regional sanitary sewer extension and acquire sanitary sewer capacity in the Genesee County Sanitary Sewer System (the “Project”) for the benefit of the Northwest Sanitary Drain Drainage District, serving Brandon Township, Groveland Township, Holly Township, and the Village of Ortonville, as outlined in the agreement between the Drainage District and Genesee County dated June 13, 2023, which is incorporated into this Agreement as Attachment A. 2. Grantee Affirmations: a. Grantee affirms that any and all representations made to Grantor in connection with this grant were accurate, truthful and complete and remain so. Grantee acknowledges that all representations and information provided have been relied on by the Grantor to provide funding under this Agreement. Grantee shall promptly notify Grantor, in writing, of the occurrence of any event or any material change in circumstances which would make any Grantee representation or information untrue or incorrect or otherwise impair Grantee’s ability to fulfill its obligations under this Agreement. b. Grantee may not use grant funds for expenses for which the Grantee has received any other federal funds or emergency COVID-19 supplemental funding, whether it be state, federal, or private in nature, for the same expense. No portion of grant funds may be used for the purpose of obtaining additional Federal funds under any other law of the United States, except if authorized by law. Grantee shall promptly notify Grantor if it receives insurance proceeds or other disaster assistance (public or private) that duplicates the funding received under this Agreement. Grant funds may not be used to cover expenses that were reimbursed by insurance. c. Grantee shall not carry out any activities under this Agreement that results in a prohibited duplication of benefits as defined by Section 312 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5155) and in accordance with Section 1210 of the Disaster Recovery Reform Act of 2018 (division D of Public Law 115–254; 132 Stat. 3442), which amended Section 312 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5155). If the Grantee receives duplicate benefits from another source for projects related to this disaster, the Grantee must refund the benefits provided by the Grantor to the Grantor. Duplication of benefits occurs when Federal financial assistance is provided to a person or entity through a program to address losses resulting from a Federally-declared emergency or disaster, and the person or entity has received (or would receive, by acting reasonably to obtain available assistance) financial assistance for the same costs from any other source (including insurance), and the total amount received exceeds the total need for those costs. d. Grantee shall use all grant funds it receives under this Agreement by December 31, 2026. Any grant funds not used by that date must be returned to Grantor. e. Grantee will provide Grantor with information on progress toward completion of the Project. Grantee will also comply with any other reporting requirements regarding the grant funds and/or this Agreement, as determined by the County. 3. Repayment/Remedies. Grantee is subject to repayment to the Grantor of an amount equal to the grant funds received by Grantee in the event Grantee has made material misrepresentations to the Grantor, voluntary bankruptcy or insolvency proceedings are commenced against the Page 4 of 6 OAKLAND COUNTY EXECUTIVE, DAVID COULTER Grantee and not set aside within sixty (60) days, or the Grantee fails to otherwise comply with the requirements of this Agreement. In the event Grantor later determines the information Grantee provided in conjunction with this grant, or that Grantee was ineligible for this grant, or that Grantee’s use of the grant funds following receipt was contrary to this Agreement, Grantee agrees to repay the grant funds to Grantor in full. Grantor further retains all rights and remedies allowed in law or equity, including seeking payment of its reasonable costs and expenses incurred enforcing its rights and remedies. 4. Grantee Indemnification. Grantee shall indemnify, defend and hold Grantor and its elected and appointed officials harmless from all claims incurred or asserted against Grantor and its elected and appointed officials, by any person or entity, which are alleged to have been caused directly or indirectly form the acts or omissions of Grantee or Grantee’s employees. Grantee further agrees to indemnify and hold Grantor harmless for the payment of any tax or withholding payments, including any penalty assessed it may owe under this Agreement as described in Section 6. 5. No Indemnification from Grantor. Grantee shall have no rights against Grantor for indemnification, contribution, subrogation, or any other right against Grantee unless expressly provided herein. 6. Tax Liability. Grantor and Grantee agree that to the extent that any part of the aforementioned funds are deemed to be taxable, that Grantee agrees to be fully responsible for the payment of any taxes, including withholding payments, social security, or other funds which are required to be withheld. Grantee agrees to provide Grantor with all information and cooperation necessary to execute a completed 1099-G form which Grantor will file with the United States Internal Revenue Service. Grantee acknowledges that Grantee will consult with a tax professional regarding the tax implications, if any, of the grant funds, and/or hereby waives the option to do so. 7. Conflict of Interest. Pursuant to Public Act 317 and 318 of 1968, as amended (MCL 15.301, et seq. and MCL 15.321, et seq.), to avoid any real or perceived conflict of interest, Grantee shall disclose to Grantor the identity of all Grantee employees and all relatives of Grantee employees who: a) are employed by the Grantor or are elected or appointed officials of the Grantor, on the date the Grant is executed; and b) becomes employed or appointed by the Grantor or becomes an elected official of Grantor during the term of the Grant. 8. Access to Records and Audit. Grantee shall maintain all records pertinent to the Agreement and any amendments, including backup copies, for a period of five (5) years. The records shall be kept in accordance with generally accepted accounting practices, and the Grantee shall utilize adequate internal controls and maintain necessary documentation for all costs incurred, including documentation and an inventory of all equipment purchased with grant funds. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In addition to Grantor, the U.S. Department of Treasury, or their authorized representatives, shall be provided the right to audit all records pertaining to the expenditure and use of grant funds. All records with respect to any matters covered by this Agreement shall be made available to Grantor, the Federal awarding agency, and the Comptroller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by Grantee within 30 days after receipt Page 5 of 6 OAKLAND COUNTY EXECUTIVE, DAVID COULTER by the Grantee. Failure of Grantee to comply with the audit requirements will constitute a violation of this Agreement. Grantee must establish and maintain effective internal control over the Federal award that provides reasonable assurance that they are managing the award in compliance with Federal statutes, regulations, and the terms and conditions of the award. Grantee shall provide a final report that is due to Grantor upon the completion of the Project. Grantee agrees to submit a detailed and timely grant report covering expenses related to each outlined purpose. 9. Compliance with Laws. Grantee shall comply with all federal, state, and local laws, statutes, ordinances, regulations, and all requirements applicable to its activities under this Grant. This includes the following: a. Grantee must take reasonable measures to safeguard protected personally identifiable information, as defined in 2 C.F.R. 200.82, and other information Grantor designates as sensitive or the Grantee considers sensitive consistent with applicable Federal, state, and local laws regarding privacy and obligations of confidentiality. b. Grantee must comply with 31 U.S.C. Chapter 38, Administrative Remedies for False Claims and Statements. Grantee will not pass-through grant funds to an entity listed in the SAM Exclusions. SAM Exclusions is the list maintained by the General Services Administration that contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. SAM exclusions can be accessed at www.sam.gov c. Grantee must register at sam.gov. d. Grantee must comply with Title VI of the Civil Rights Act of 1964, and any implementing regulations, which prohibits entities receiving Federal financial assistance from excluding from a program or activity, denying benefits or services, or otherwise discriminating against a person on the basis of race, color, national origin (including limited English proficiency), disability, age, or sex (including sexual orientation and gender identity). All applicable U.S. Department of Treasury Title VI regulations are incorporated into this Agreement and made a part of this Agreement. e. Public Body must comply with 2 C.F.R. Part D, Post Federal Award Requirements, being 200.300 et seq., where applicable. 10. Assignment. Grantee may not assign any of its rights or obligations under this Agreement to any person or entity. 11. Severability. If a court of competent jurisdiction finds a term of this Grant to be illegal or invalid, then the term shall be deemed severed from this Grant. All other terms shall remain in full force and effect. Notwithstanding the above, if Grantee’s promise to indemnify or hold the Grantor harmless is found illegal or invalid, Grantee shall contribute the maximum it is permitted by law toward the payment and satisfaction of any claims against the Grantor. 12. Governing Law/Consent to Jurisdiction and Venue. This Grant shall be governed, interpreted and enforced by the laws of the State of Michigan. Except as otherwise required by law or court rule, jurisdiction and venue shall be in the Sixth Judicial Circuit Court of the State of Michigan or the 50th District of the State of Michigan. Page 6 of 6 OAKLAND COUNTY EXECUTIVE, DAVID COULTER 13. Entire Agreement. This constitutes the entire understanding between the Parties concerning the use of the grant funds. 14. Electronic signatures. This Agreement may be signed in counterparts with the use of facsimile and electronic signatures, which shall be considered valid and binding on the Parties.