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4.15. SR 07-06-2015 Request for Action To Item Number Mayor and City Council 4.15 Agenda Section Meeting Date Prepared by ConsentJuly 6, 2015Tim Simon, Finance Director Item Description Reviewed by Authorization to Execute Grant Agreement with Justin Femrite, City Engineer Minnesota Public Facility Authority Reviewed by Action Requested Authorize by motion, Mayor and city clerk to sign grant agreement with the Minnesota Public Facilities Authority. Background/Discussion In 2014, the city was awarded a Point Source Implementation Grant from the Minnesota Pollution Control Agency (MPCA) related to our Wastewater Treatment Plant expansion that is currently under way. The Minnesota Public Facilities Authority (MPFA), which administers the grant, has just put together the grant agreement to be signed by the Mayor and city clerk. This grant was anticipated in the financing plan for the expansion. We have several costs that are ready to be reimbursed by the grant upon execution of the agreement. Financial Impact The grant award is $2,609,610 which is reimbursable based on identified project costs. The MPFA charges an administrative fee equal to one-half of one percent of the grant amount which is paid to the Authority by the city upon execution of this agreement. Attachments  Grant agreement Template Updated 4/14 MINNESOTA PUBLIC FACILITIES AUTHORITY PROJECT GRANT AGREEMENT POINT SOURCE IMPLEMENTATION GRANT MPFA-15-0040-R-FY15 THIS PROJECT GRANT AGREEMENT (the "Agreement"), is between the Minnesota Public Facilities Authority (the "Authority") and the City of Elk River (the "Grantee") and is dated June 30, 2015. ARTICLE I - GRANT TERMS AND CONDITIONS Section 1.1. Terms. (a) Pursuant to MN Statutes Section 446A.073 (the “Law”), the Authority hereby commits, subject to the availability of funds and the conditions hereinafter set forth, to grant the sum of TWO MILLION SIX HUNDRED NINE THOUSAND SIX HUNDRED TEN DOLLARS ($2,609,610) from the Point Source Implementation Grant program (the "Grant") to the Grantee for the purpose of funding eligible project costs as identified by the Minnesota Pollution Control Agency (the “MPCA”) project certification dated March 19, 2015 and in the Grant Application which is incorporated herein (the “Project”). The Project is further described as follows: expanding and upgrading the existing wastewater treatment facility. The term of this agreement is from June 30, 2015 to June 30, 2018. (b) Pursuant to Minnesota Statutes Section 446A.04, subdivision 5, an administrative fee equal to one- half of one percent of the grant amount must be paid to the Authority by the Grantee upon execution of this agreement. Section 1.2.Authority Source of Funds. The Project financing provided by the Authority includes funds from the Clean Water Legacy Fund. Section 1.3. Disbursements. (a) All Grantee disbursement requests will be subject to Authority approval and will be disbursed on a cost reimbursement basis, consistent with the budget presented in the Grantee’s application. The Authority may withhold or disallow all or part of the amount requested if the Authority determines the request is not in compliance with this Agreement, applicable federal and state laws, regulations or rules as then in effect. (b) The Authority will disburse funds pursuant to approved disbursement requests complying with the provisions of this Agreement and MN Statute Section 446A.073. Each disbursement request must be for eligible costs for completed work on the Project and must be submitted at such deadlines established by the Authority and on a form prescribed by the Authority. Each disbursement request must include supporting invoices and billing statements and be signed by an employee or elected official of the Grantee. (c) The Authority will reimburse the Grantee for eligible Project costs incurred prior to the execution of this Agreement only to the extent approved in connection with the Authority’s approval of the Grantee’s application. (d) Disbursements will be made by the Authority to the Grantee within 30 days of receipt of the Grantee’s request, unless the Authority determines to withhold disbursement in accordance with the provisions of this Agreement. The Authority will endeavor to pay disbursement requests submitted by thth the Grantee not later than the 15 day of the month by the 25 day of the same month. Page 1 of 5 Point Source Implementation-con PSIG_Elk River_01 (5/15)June 30, 2015 (e) If, as a result of action by the Grantee or the Authority, the entire amount of the Grant specified in Section 1.1 is not disbursed for Project cost reimbursement, or if the entire Grant amount is not fully disbursed within the term of this Agreement, the amount of the Grant shall be reduced. ARTICLE II - THE PROJECT Section 2.1. Grantee Responsibilities. With respect to the Project, the Grantee agrees to the following: (a)The Grantee acknowledges its responsibility to complete the Project regardless of the availability of additional loans or grants from the Authority. (b)The Grantee shall not enter into a sale, lease or transfer of any part of the Project, or change the use of the Project, without the prior written approval of the Authority if such sale, lease, transfer, or change in use would violate any terms or conditions of the Agreement. (c)The Grantee shall maintain adequate property insurance coverage for the Project in such amounts with such limits as it determines in good faith to be reasonable or in such amounts and with such limits as may be required by the Authority from time to time. (d)The Grantee agrees that it shall complete the Project for which financial assistance has been awarded under this Agreement in accordance with all applicable MPCA statutes, rules, regulations, reporting requirements, approvals, and certifications governing the design and construction of the Project, and shall operate its wastewater treatment system in compliance with MPCA permit requirements. (e)The Grantee agrees to exert all reasonable efforts to investigate claims which the Grantee may have against third parties with respect to the construction of the Project and, in appropriate circumstances, take whatever action, including legal action, the Grantee reasonably determines to be appropriate. (f)The Borrower shall display a sign with the Clean Water Legacy logo at the project site or other public location identifying the project was built with assistance from the Clean Water, Land & Legacy Amendment. Section 2.2. Construction Compliance. (a) The Grantee will comply with the provisions of State wage requirements given in Minnesota Statutes, Sections 177.41 to 177.44, as amended or supplemented from time to time; and (b) The Grantee will comply with Minnesota Statutes, Section 290.9705, as amended or supplemented from time to time by withholding eight percent (8%) of payments made to all out-of-state contractors once cumulative payments made to the contractor for work done in Minnesota exceed $50,000 in a calendar year, unless an exemption is granted by the Department of Revenue. Withheld amounts are required to be deposited with the Minnesota Department of Revenue. Page 2 of 5 Point Source Implementation-con PSIG_Elk River_01 (5/15)June 30, 2015 ARTICLE III – FINANCIAL RECORDS, AUDITS AND REPORTS Section 3.1. Financial Recordkeeping. For all expenditures of funds made pursuant to this Agreement, the Grantee shall keep financial accounts and records in accordance with generally accepted government accounting principles including invoices, contracts, receipts, vouchers and other documents sufficient to evidence in proper detail the nature and propriety of the expenditures. Such accounts and records shall be accessible and available for a minimum of six years for examination by authorized representatives of: the Authority, the Department of Employment and Economic Development, the Legislative Auditor, and the State Auditor's Office. Section 3.2. Annual Financial Reports. The Grantee shall provide the Authority with an acceptable annual financial report conducted in accordance with Minnesota Statutes, Section 471.697 or 471.698, as appropriate, for the years in which the Grantee receives Grant funds from the Authority. All financial reports must be submitted within 30 days after completion of the financial report but no later than one year after the end of the financial report period. ARTICLE IV – GOVERNMENT DATA PRACTICES Section 4.1. General. The Grantee agrees with respect to any data that it possesses regarding the Grant or the Project, to comply with all of the provisions and restrictions contained in the Minnesota Government Data Practices Act contained in Chapter 13 of the Minnesota Statutes that exists as of the date of this Agreement and as such may subsequently be amended, modified or replaced from time to time. ARTICLE V - COMPLIANCE Section 5.1. General. Upon notification from the MPCA to the Authority that there has been a violation by the Grantee of MPCA statutes, rules, regulations, reporting requirement, approvals, certifications, or permit requirements, as amended or supplemented from time to time; or if the Authority determines that the Grantee is in default with any section of the Agreement, the Authority may exercise any remedies available at law or in equity. ARTICLE VI – DEFAULT AND REMEDIES Section 6.1. Defaults. The Grantee’s failure to fully comply with all of the provisions contained in this Agreement shall be an event of default hereunder. Section 6.2. Remedies. Upon an event of default, the Authority may exercise any one or more of the following remedies: (a) Refrain from disbursing the Grant; (b) Demand that all or any portion of the Grant already disbursed be repaid to it, and upon such demand the Grantee shall repay such amount to the Authority. (c) Enforce any additional remedies the Authority may have at law or in equity. Page 3 of 5 Point Source Implementation-con PSIG_Elk River_01 (5/15)June 30, 2015 ARTICLE VII – ADMINISTRATION Section 7.1. Amendments. Any amendments to this Agreement must be in writing and be executed by the Grantee by the same officials who signed the Agreement, or their successors. Section 7.2. Notices. In addition to any notice required under applicable law to be given in another manner, any notices required hereunder must be in writing, and shall be sufficient if personally served or sent by prepaid, registered, or certified mail (return receipt requested), to the address of the party to whom it is directed. Such address shall be that address specified below or such different address as may hereafter be specified, by either party by written notice to the other: In the case of the Authority: In the case of the Grantee: Minnesota Public Facilities Authority City of Elk River Attention: Executive Director Attention: Mayor 332 Minnesota Street, Suite W820 13065 Orono Parkway NW St. Paul, MN 55101-1378 Elk River, MN 55330-5600 Page 4 of 5 Point Source Implementation-con PSIG_Elk River_01 (5/15)June 30, 2015 MPFA-15-0040-R-FY15 Grant Number: City of Elk River Grantee Name: The Authority and the Grantee acknowledge their assent to this agreement and agree to be bound by its terms through their signatures entered below. Statutory Cities must execute this Agreement as provided in Minnesota Statute 412.201, as amended or supplemented. Home Rule Charter Cities must execute this Agreement as provided in Minnesota Statute, Chapter 410, as amended or supplemented. GRANTEE: STATE OF MINNESOTA: We have read and we agree toby and through all of the above provisions of this agreement. the Public Facilities Authority. By____________________________________ By____________________________________ John Dietz Katie Clark Sieben, or delegate Title Mayor Title Chair Date__________________________________ Date By____________________________________ ENCUMBERED: Tina Allard Minnesota Public Facilities Authority Title City Clerk By____________________________________ Date___________________________________ Date Encumbered B2401 3-1319 6/60/2015 (Individual signing certified that funds have been encumbered as required by Minnesota Statute 16A) Page 5 of 5 Point Source Implementation-con PSIG_Elk River_01 (5/15)June 30, 2015